60% of Employees Quit Their Jobs Due to a Toxic Client Says Study

The common slogan in the business world is “The customer is always right.” But what happens when you get a demanding customer? If you or your colleagues feel that your day is ruined every time a particular customer calls, you may be having a toxic client. Toxic clients put unnecessary stress on companies, especially the ones that commit their time and energy to building valuable customer relationships.

So, what is the true cost of having problematic clients? How does it affect businesses and employees’ morale? Inc and Go recently conducted a study to understand this in detail. A key finding was that 60% of employees quit a job because they could not tolerate toxic clients.

The following are the findings in detail.

See more: Employers Receive Failing Grade on Employee Mental Health Support: Report

Initial Impressions Can Be Deceiving

Many customers try to create a great first impression. Most people present themselves with expertise, confidence, and professionalism. This creates a belief that people can work with them with relative ease. However, when the client begins to show problematic behavior, that is when you realize that first impressions can be deceiving.

About 64% of the study respondents encountered at least one toxic client over the past two years. About 73% faced one in the retail industry, while 68% faced a problematic client in the healthcare industry. In total, over 25% of employees had been verbally harassed by toxic customers over Zoom calls.

So, what are some of the characteristics of a toxic client? According to the study, the top common signs of a problematic client were being difficult to please, unreasonable, and dramatic. They were also impolite and made unrealistic demands.

Most common signs of a toxic client

Source: 2022 Inc and Go SurveyOpens a new window

Specifically, the top client pet peeves for employees were hard to please, rude, and impolite. For managers, problematic clients were dramatic, inflexible, and hard to please. Business leaders thought they made unrealistic demands and were rude and unreasonable. Meeting their expectations is something a client can easily use to manipulate the vendor. It can be a red flag if a client continues to push for a better solution even after you have done everything you can to meet their expectations.

So, how can you avoid such client behaviors? One way is to communicate the expectations clearly. You can prevent a client from taking undue advantage by being an effective communicator. According to 37% of respondents, miscommunication was a common complaint by problematic customers. While clear communication cannot address other pet peeves, the client will realize that you are strong and competent.

Employees Quit Due To Toxic Clients

Problematic clients can often push employees and managers toward a breaking point. So, how many employees have quit their jobs because of a toxic client?

According to the study, 60% of employees quit their jobs due to a toxic client. Employees working in a company for over seven years were least likely to quit their jobs (53%, which is still high), while people who stayed for 5-6 years were more likely to do so (67%). There may also have been other factors that could have led to them quitting their jobs. That said, the effect of toxic customers should not be discounted. Generation-wise, Gen Z employees were more likely to do so, with 71% of them quitting.

Problematic clients negatively affect employees’ engagement with their organizations (57%), morale (56%), motivation (52%), and performance (43%). These can, in turn, negatively affect the company’s bottom line.

It also doesn’t help when employees feel unsupported by their employer. About 60% of employees blamed their companies for keeping problematic clients. If all data is considered, it can be seen why business leaders said that toxic customers cost their companies an average of $4,994 per year.

Employees Use Various Tactics To Handle Toxic Clients

Handling a toxic client can be a huge challenge. So, how do employees do it? According to the study, vendors used a wide variety of tactics to handle toxic customers. About 56% of employees, managers, and business leaders remained calm, while 44% learned to say ‘No’ to the client. About 43% of respondents also avoided exhibiting toxic behavior themselves, and 41% of them set boundaries. A few other tactics were engrained in company processes, such as keeping communication records, specifying work hours, and improving the feedback process.

Among all these tactics, the most effective ones were keeping company records, staying calm, and learning to say no. These were followed by avoiding being toxic themselves, having a zero-tolerance policy, and improving the feedback process.

How companies handle toxic client relationships

Source: 2022 Inc and Go SurveyOpens a new window

Many Businesses Have Severed Ties With Toxic Clients

As business leaders realize the costs of having a problematic client, many have severed their ties with problematic customers. The study found that 68% of business leaders had done so in the past two years. Some of the top reasons they severed ties were offensive and rude behavior toward the team, being disrespectful of time, and having unrealistic expectations becoming the norm.

Reasons for severing business relationships with toxic clients

Source: 2022 Inc and Go SurveyOpens a new window

Business leaders also used various tactics to break the news to the clients. For example, 35% ended a business relationship via an email or text message, while 32% did so on a phone or video call. More than 20% of business leaders just ghosted toxic customers.

See more: Low Salaries, Long Hours and Low Growth Opportunities Are Major Causes of Workplace Stress

The Right Step Can Keep Toxic Clients at Bay

There is no doubt that toxic clients can cost a company millions of dollars and valuable talent. Problematic clients can negatively impact employees’ morale and motivation, ultimately affecting their performance. Hence, it is necessary to handle such clients using healthy and positive ways, such as setting clear expectations, communicating clearly, drawing clear boundaries, and staying calm. Otherwise, it is best to end the relationship in a smart way before they cause further damage.

Have you experienced a toxic client? What steps did you take to handle them effectively? Share with us on FacebookOpens a new window , TwitterOpens a new window , and LinkedInOpens a new window .

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