How to Handle a Disgruntled Employee as a Business Owner

Kelly

How to Handle a Disgruntled Employee as a Business Owner

Workplace dissatisfaction can harm team morale and productivity. Replacing an employee can be costly—up to 150 percent of their annual salary for mid-level employees—so addressing discontent directly is often more practical. Here’s how to approach this issue while fostering harmony.

Identify the Cause Behind Discontent

Start by understanding the factors driving dissatisfaction. Poor management plays a major role, with 82 percent of U.S. workers stating they’d leave due to ineffective leadership. Healthcare professionals, at 88 percent, are particularly sensitive to this issue, while software workers show slightly more tolerance at 73 percent. Additionally, around 21 percent of employees cite mistrust due to broken promises, and 40 percent feel their concerns are ignored. These frustrations often worsen if left unresolved.  

Burnout is another major issue. Sixty-one percent of employees report feeling completely burned out, while 67 percent have recently experienced symptoms such as isolation or exhaustion. Younger employees, particularly Millennials and Gen Z workers, leave jobs over workload intensity at rates of 43 and 44 percent, respectively. Ignoring burnout risks unnecessary turnover.  

Adjusting Workplace Systems for Better Engagement

Disgruntled employees tend to point to ineffective policies and procedures as a source of frustration. For instance, overly complex scheduling or unreliable tools like attendance software can lead to confusion. Implementing straightforward and dependable systems, such as user-friendly time clock solutions, can help set clear expectations and minimize misunderstandings. Pairing these tools with open communication channels ensures employees feel supported rather than micromanaged.  

Review other operational policies as well—such as rigid break times or unclear workflows—that might contribute to dissatisfaction. Simplifying these processes sends a clear message that the company is committed to improvement and willing to address concerns constructively.  

Communicate With Clarity and Honesty

A lack of clear communication is often a root cause of poor morale. For example, only 39 percent of workers feel that their managers are transparent about career progression. Similarly, salary discussions remain inadequate, with less than half of employees—44 percent—reporting honest conversations about pay. Another common issue is the frequency of meetings, with 63 percent of employees stating there are either too many or too few with managers.  

When addressing disgruntled employees, begin by listening attentively to their concerns. Avoid defensive behavior and focus on understanding their frustrations. If they feel unrecognized—which is the case for 29 percent of employees who haven’t received acknowledgment for their contributions in a year—this problem must be remedied. Recognized employees are more likely to stay engaged and committed.

Recognize and Address Stress Factors

Workplace stress is prevalent, impacting 43 percent of U.S. workers. Mismatched expectations can worsen the situation: only 22 percent of managers fully trust employees to perform remotely, while remote workers often fear being overlooked. Combined with excessive workloads, these tensions leave employees feeling undervalued. Nearly 34 percent of workers who feel underappreciated leave their jobs within a year.

By proactively identifying stressors, businesses reinforce that employee concerns are taken seriously. Addressing these issues early improves morale and helps prevent avoidable turnover.

Effectively managing disgruntled employees requires an honest evaluation of workplace systems and relationships. Strong communication, proper recognition, and tackling burnout are foundational to cultivating a supportive environment and retaining a committed workforce.

Offer Clear Career Pathways

The lack of career advancement opportunities is another frequent source of dissatisfaction. Forty-one percent of employees consider advancement important to engagement and retention, yet only 29 percent are satisfied with the opportunities offered. Younger employees, especially those under 35, often feel discouraged by unclear or limited career paths.  

Employers should ensure they provide clarity in this area. Conduct regular discussions about growth and establish clear promotion criteria to rebuild trust. Transparent conversations about advancement reduce worries about favoritism and help create a more motivated workforce.

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