5 Deadly Dangers of an Awful Employee for Local Businesses

Your services may be pristine and your products may be one-of-a-kind, but at the end of the day it’s your employees who really work to make or break the success of your business. Amazing staff members can exponentially help your business’ overall quality of service and performance. As a local business owner, I’m sure you’ve witnessed this first hand. However, on the other side of the coin, all it takes is one bad apple - just one - to really send your business in a downward plummet.

The dangers of an awful staff member are vast and numerous. To shed a little more light on these negative effects — let’s discuss the 5 most notorious side-effects an awful staff member can have on your business.

1. Chasing Customers Away a.k.a. Losing You Money

An awful employee essentially acts as a customer pesticide. For especially service-based businesses, your employees demeanor and performance are by far the biggest contributing factors to a customer’s experience. Think about it — how would you react if for example you go in for a haircut and your stylist is miserable and rude, or imagine you get a massage and your masseuse has no idea was she’s doing? Well, you probably would never visit that establishment again because chances are there’s another salon or spa you can try down the block. A awful employee can send your customers running to your competitors, working to lose your business a customers and ultimately money.

2. Having to Give a Refund

Not only can an awful staff member cause you to lose money through making customers never return, but they can cause a loss of money through refunds. If you’re like most local businesses, you might not have a formal refund policy. Staff members that are extremely rude or misguided can cause you to shell out a lot of money to customers right on the spot. If something goes very wrong during their visit, don’t be surprised if a customer demands their money back. It’s unfortunate to refund a customer one time, but if you’ve got a negative staff member on the floor and it turns into a habitual thing — your business can really start to feel the pain.

3. Losing the Chance for a Referral

After experiencing an awful staff member, not only do you run the risk of the customer who dealt with the employee never returning, but you’re also destroying your chances of that customer ever referring anyone. Referrals can be huge for the growth of local businesses. In fact, New York Times reported in a recent survey that business owners found about 65% of their new clients were generated through referral programs. A negative experience with a disgruntled employee destroys your chances of ever accessing your customer’s network of friends and family — a truly major missed opportunity.

4. Causes Your Business Negative Online Reviews

Today’s customers won’t just blindly walk into your shop. No, today, people do their homework. Customers like to read up on the local businesses in their area before paying them a visit and they have plethora of sources to do so. One the biggest outlets your customers use to learn more about the local businesses in their area are online listing directories. Think Google My Business and Yelp.

They go to these popular sites to look at your customer reviews. In fact, 88% of customers say they use online reviews to evaluate local businesses before ever actually stepping foot through the door. So, if you have a negative employee who causes a customer to have a poor experience at your business, you run the risk of that customer taking to your online profile and writing you a negative review. This can easily work to deter onlookers from ever stepping foot into your shop.

Negative reviews are pretty awful can be remedied! For tips to handle any your business might have — check out these tips

5. Gives Your Business an Overall Bad Reputation

Now, Joan Jett might not give a damn ‘bout her bad reputation but when it comes to your business’ — you absolutely should. Your business’ reputation is everything. A bad employee is the perfect way to damage that reputation. That’s why it’s so vital to keep a vigil look at for any bad apples in the bunch. A bad employee can come in many shapes and sizes but overall can give your business the reputation of being unfriendly, unknowledgable, or worse — both.

Think your business’ reputation has been put in jeopardy because of an awful employee? See how Frederick can help you rectify the situation.

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