Learn the results of our five-year research study that examined the impact of people problems at hundreds of companies around the world. Find out how they manage their people problems and how your company’s strategies and tactics compare.

1. Welcome to The Real Costs of People Problems Presented by

2. You are viewing this presentation because you have people problems in your company. How many times have you said or heard someone else say: “If it weren’t for the people, I’d love this job.”

9. Bad leadership affects the bottom line The case that we are going to make is that poor leadership skills costs your company money. Leadership skills can be learned. You don’t have to settle for mediocrity in your leaders.

15. These numbers are the turnover rates in various industries. In government, 38% of the people quit, retired, were fired or laid off each year—in private industry, that percentage was 43%.

16. “ These calculations will easily reach 150% of the employees annual compensation figure. The cost will be significantly higher (200% to 250% of annual compensation) for managerial and sales positions.” Aubrey C. Daniels, Ph.D., Bringing Out the Best in People: How To Apply The Astonishing Power of Positive Reinforcement

17. “ ...let's assume the average salary of employees in a given company is $50,000 per year. Taking the cost of turnover at 150% of salary, the cost of turnover is then $75,000 per employee who leaves the company. For the mid-sized company of 1,000 employees who has a 10% annual rate of turnover, the annual cost of turnover is $7.5 million !” Aubrey C. Daniels, Ph.D., Bringing Out the Best in People: How To Apply The Astonishing Power of Positive Reinforcement

18. If you use the 40% figure from the Labor Department, the cost for that same company would be $30 million due to turnover.

19. “ Surveys consistently show that more than 40% of people who quit do so because they feel they weren't appreciated for their contributions” Aubrey C. Daniels, Ph.D., Bringing Out the Best in People: How To Apply The Astonishing Power of Positive Reinforcement

20. Absenteeism Bad bosses make people sick.

21. “ As much as 60% of absenteeism is due to stress. If an organization has autocratic management, it is likely driving absenteeism costs up.” “Approaching Change” Chrysalis: Performance Strategies January 2003, Vol. 3, No. 5

23. A study of 10,000 civil servants working in traditional hierarchies (conducted over a 20-year period) found that those lower in the hierarchy with little control over their work have four times the risk of developing coronary heart disease and depression than those at the top. Dr. Sir Michael Marmot Whitehall Study I and II, 1978, 1991

24. Total cost to business in the U.S. related to job stress is $150 billion per year . Joe Robinson, Work to Live: The Guide to Getting a Life What might this mean to your company’s bottom line?

26. 86% of employees working in traditional hierarchical organizations coped with that culture by reducing the quality of their work. Linda Duxbury Carleton University School of Business

30. There are thousands of training programs. How do you choose the right ones for your company?

35. “ ...87% of the knowledge and skill acquired in a training program is lost within 60 days after training.” Huthwaite, Inc., Building Interactive Skills

41. How do people learn a new skill? How do we change our behavior?

42. The Learning Stages (We refer to these stages in our workshops—the following slides will explain them in more detail.) Unconsciously Unskilled 1. Consciously Unskilled 2. Consciously Skilled 3. Unconsciously Skilled 4.

53. Imagine that your organization’s leaders have the people skills to build more productive relationships.

57. “… a considerable body of research has shown that…the opportunity to participate substantively is associated with reduced stress. Having greater autonomy or control over one’s job, in particular, has been linked to lower incidence of health conditions such as coronary heart disease.” Peter Berg & Arne L. Kalleberg The Effects of High Performance Work Practices on Job Stress: Evidence from a Survey of U.S. Workers

61. A 10-year study published in 1996 demonstrated that “…organizations that consistently practice good people management create an environment that reduces - even eliminates - significant workplace stressors...have higher sales, profit, growth and margins...” Dennis J. Kravetz People Management Practices and Financial Success: A Ten-Year Study

62. Companies that improved PMP (People Management Practices) added [on average] $294 million in profits per company, a gain of 60% over three years. Dennis J. Kravetz People Management Practices and Financial Success: A Ten-Year Study

64. Here is one solution that will reduce the cost of people problems and increase productivity…

65. Gordon Training International’s People Productivity Process Leader Effectiveness Training is at the core of The People Productivity Process, a six-step, four-tool process that focuses on solving people problems. Based on the pioneering work of Dr. Thomas Gordon, this process is a proprietary system that delivers measurable results, increases productivity, reduces friction among employees and leaders, and minimizes the damage to morale and energy that are associated with lingering, unresolved conflicts.

73. Would you like to take the next step?

74. Contact us For more information about our People Productivity Process and our L.E.T. Workshops, call or e-mail us: 1.800.628.1197, ext. 308 [email_address] www.gordontraining.com