Business leaders reported that the average toxic client cost their company $4,994 per year,— about 32% of which were managers. That same survey found 60% of employees said they have quit a job because of toxic clients retained by their company.
The survey found toxic clients decreased morale, company engagement and employee motivation. And employees put the blame on their employers, with 60% saying it was their company’s fault for keeping problematic clients. That might be because 56% of business leaders would rather charge a toxic client extra fees than sever ties.
Setting reasonable boundaries: Toxic clients often add new items to existing projects, or ask for irrelevant things to be added beyond the bounds of a specific project. They claim it won’t take too much time but also never clarify whether or not they will compensate you for the demands. Business owners should set up boundaries immediately and ask for a project brief or create a brief yourself, paying attention to the details so the client is less able to make irrelevant demands in the future.
“With clients who come at you with personal attacks —throwing insults and trying to dominate with lies and twists — the best step is to fire the client,” Crane said. “Because even though you may hold on to them for the sake of business, it will cause long-term damage to your business productivity and sanity. These clients may not pay you in time or refuse to follow their contracts.”
The risk of losing employees because of the behavior of customers highlights how companies are still starving for workers, and — if any — impact on the overall job market.
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