British businesses are losing millions of pounds every year because staff do not fully understand their jobs.
Surveying 400 organisations operating in a range of sectors, research provider Cognisco found that thousands of employees were vague on their company’s policies, business processes and even their own job function.
According to Cognisco, the average British employee loses their firm £315 a year through professional misunderstandings.
Despite the financial impact of fuzzy-thinking staff, only one in three employers actively address the problem.
Nearly a fifth (17%) of annual revenue lost by businesses was attributed to poor procurement practices.
Other costs cited include regulatory and tax penalties as a result of ineffective staff.
All the companies asked believe that employee misunderstanding has put their organisation at risk from loss of sales and reduced customer service satisfaction.
Mary Clarke, CEO of Cognisco, encouraged firms to keep an eye on individual staff competence and provide ongoing training.
“An organisation’s greatest asset is its employees,” she said.
“Obviously, if an employee misunderstands or misinterprets actions there will be repercussions from loss of business to impaired brand image. But what is often not measured is the employee’s confidence to take the appropriate actions, which can also have a significant impact.”