Understanding what factors contribute to tension between business owners and employees is crucial for fostering a harmonious workplace. Communication breakdowns often lead to misunderstandings and frustration, impacting overall morale. Differing expectations regarding workload and performance can also create stress and dissatisfaction. Additionally, lack of recognition and inadequate compensation are significant sources of tension. Addressing these issues proactively can help bridge the gap and improve relationships within the organization. Here is what experts have to say:
Clear Communication and Aligned Expectations
One of the biggest contributing factors to tension between business owners and employees is a lack of clear communication and alignment of expectations. When employees feel they are not being heard or supported, or when their roles and goals are unclear, it can lead to frustration and disengagement. From a business owner’s perspective, this can feel like a lack of motivation or accountability from staff, which creates further friction. Another key factor is failing to invest in employee well-being and professional growth. If staff members feel undervalued or stagnant in their roles, it can create a disconnect between them and the overall vision of the business. In my experience, creating a culture of open dialog, mutual respect, and professional development is essential for bridging these gaps. For example, when I transitioned from Collins Place Physio to founding The Alignment Studio, I noticed that our team was struggling with communication during the shift to a multidisciplinary model. Staff members were unsure how their roles fit into the bigger picture, and this uncertainty was leading to tension. Drawing on my experience as both a clinician and a business leader, I implemented regular team meetings and one-on-one check-ins to establish clear goals and ensure every voice was heard. I also developed cross-training opportunities, allowing staff to understand and appreciate each other’s contributions to patient care. Over time, this approach not only reduced tension but fostered a stronger sense of teamwork and shared purpose. Today, our collaborative culture is a cornerstone of the clinic’s success, demonstrating how clear communication and investment in people can transform workplace dynamics.
Peter Hunt, Director & Physiotherapist, The Alignment Studio
Prioritize Work-Life Balance
I’ve noticed one of the main causes of tension between business owners and employees is a lack of work-life balance. I’ve seen it play out myself and in conversations with peers. When employees feel their personal lives are being sacrificed for work, it leads to frustration, burnout, and disengagement.
As a business owner, I’ve learned that while there’s always pressure to hit targets and stay competitive, pushing employees too hard always backfires. I had a team member come to me and say they were struggling to balance work and family responsibilities. That conversation made me realize we had a “flexible hours” policy on paper but the team culture was subtly encouraging being online late. Unintentional but damaging.
We made some changes—introduced clear guidelines on being offline after hours and an optional 4-day week for those who needed it. The results were instant. Productivity went up but more importantly, employees were happier. They felt respected and trusted which created a healthier relationship between the team and leadership.
The challenge of course is work-life balance looks different for everyone. Some employees thrive on structure, others need flexibility. Balancing these individual preferences with the needs of the business can be tough but it’s worth it. Regular check-ins and anonymous feedback forms have helped me work out what’s working and what’s not.
In my experience when employees feel their well-being is a priority they will be more engaged and loyal. Work-life balance isn’t just about avoiding tension it’s about creating a work environment where people feel truly supported. And that benefits everyone—employees and the bottom line.
Soubhik Chakrabarti, CEO, Canada Hustle
Create a Culture of Trust
One of the biggest contributors to tension between business owners and employees is a lack of clear communication and understanding of expectations. Misalignment in goals, priorities, or even basic job roles can lead to frustration on both sides. In my more than 20 years of running Ponce Tree Services, I’ve seen how vital it is to create a culture where employees feel heard and valued. For example, early on in my business, there was a time when an employee felt overwhelmed with their workload but didn’t feel comfortable voicing their concerns. As a certified arborist and someone who has worked in this industry since I was a teenager, I knew the importance of building trust and transparency. I sat down with the team, opened the floor to feedback, and adjusted workflows to better match each employee’s strengths. This approach not only resolved the issue but also strengthened morale and improved productivity.
What I’ve learned over the years is that employees thrive when they feel a sense of ownership and purpose in their work. By clearly communicating the vision of the company and how their role contributes to its success, employees feel more engaged and motivated. This is why I regularly check in with my team and prioritize ongoing training to help them grow alongside the business. The result has been a loyal team of hardworking professionals who are not just employees but a critical part of the family we’ve built at Ponce Tree Services.
Amaury Ponce, Business Owner, Ponce Tree Services
Maintain Open Lines of Communication
As the Founder and CEO of Zapiy.com, I’ve come to realize that the tension between business owners and employees often stems from a combination of factors. One of the biggest contributing factors is misalignment of expectations. As a business owner, it’s easy to focus on growth, profitability, and long-term strategy, but employees can sometimes feel disconnected from these big-picture goals. When employees aren’t clear on how their individual roles contribute to the company’s vision, they may feel undervalued or overlooked, which can lead to frustration.
Another contributing factor is lack of effective communication. This can range from not keeping employees in the loop about business developments to not addressing their concerns or feedback. When there’s little transparency, it can breed a sense of distrust and uncertainty, which heightens tension. I make it a point to maintain open lines of communication so that everyone feels informed and heard, even when the news isn’t always positive.
Unclear or unfair compensation structures can also contribute to tension. If employees feel their contributions aren’t adequately compensated or recognized, resentment can grow. I’ve seen firsthand how employees who feel their hard work isn’t being rewarded might withdraw their engagement or look for opportunities elsewhere.
Finally, the workload balance plays a significant role. When employees feel overworked or underappreciated, it can create burnout, which often results in decreased morale and higher turnover. As an organization grows, it’s crucial to adjust workloads, provide proper support, and acknowledge the efforts of employees to keep morale high.
By fostering alignment through clear communication, recognition, and a healthy work-life balance, tensions can be reduced, leading to a more harmonious and productive environment.
Recognize Unseen Work
From being on both sides of this fence, it usually comes down to misaligned expectations about value exchange. Business owners obsess over metrics and deliverables while employees want recognition for the unseen work. I watched this play out at my old agency – management tracked billable hours to the minute but completely missed that their best people were burning out doing unbilled client support.
Communication breakdowns are the real killer though. I had a client whose entire dev team quit because management kept promising “we’ll fix the workload issues” but never actually changed anything. Meanwhile, management thought everything was fine because nobody complained in meetings – forgetting that people don’t speak up when they’re already job hunting.
The most toxic scenario is when employers pretend everyone’s “family” but treat salary discussions like personal betrayals. I’ve seen solid businesses implode because owners took it personally when employees asked for market-rate raises. You’re running a business, not a loyalty program – people work for money first, mission second.
Tim Hanson, Chief Marketing Officer, Penfriend
Foster Mutual Understanding
Tension between business owners and employees often stems from a lack of clear communication and a misalignment of expectations. In my experience, one of the biggest contributors is when employees feel undervalued or out of the loop in decision making processes, while business owners may feel frustrated by a lack of engagement or initiative. Bridging this gap comes down to fostering mutual understanding and building trust, which takes effort from both sides. I’ve found that leading by example and prioritizing transparency can make a significant difference in reducing tension. For instance, early in my journey with Ozzie Mowing & Gardening, I noticed that some team members felt disconnected from the larger goals of the business. Rather than assuming they didn’t care, I opened up regular team meetings where we discussed not just tasks but the “why” behind them. I encouraged them to share their ideas, gave credit where it was due, and invested in training to help them grow in their roles. One of my employees, who initially felt they were just “doing the grunt work,” eventually became a lead gardener after seeing how their contributions shaped the success of the business. My years of experience taught me that when employees feel supported and part of something bigger, the results are incredible. The team’s morale improved, productivity increased, and we created a more cohesive working environment that made us all proud to be part of the company.
Andrew Osborne, Owner, Ozzie Mowing & Gardening
Empathetic Communication During Change
One of the biggest contributing factors to tension between business owners and employees is a lack of empathetic communication, especially during times of organizational change. During MentalHappy’s growth phase, we emphasized transparency with our team about new initiatives and any changes in processes. This fostered a culture of trust and reduced anxieties about the future, allowing us to collaboratively address concerns and co-create solutions. Additionally, recognizing employee burnout and well-being got us to another level of harmony. I witnessed this while addressing provider burnout on our platform, which involved reducing unnecessary workload through automation. By streamlining operations for our team and for our service providers, we nurtured a work environment that prioritized mental health, increasing both employee satisfaction and productivity. Reducing burnout-related stressors allowed us to align better with our mission of improving access to mental health care, resonating deeply with our employees’ values.
Tamar Blue, Chief Executive Officer, MentalHappy
Bridge Expectations and Communication Gaps
Tension between business owners and employees often stems from misaligned expectations, poor communication, and a lack of mutual trust. Business owners typically focus on long-term growth, profitability, and sustainability, while employees often prioritize fair treatment, clear direction, and a sense of security. A gap in understanding these priorities can lead to frustration on both sides. For example, a business owner may push for rapid productivity improvements without explaining the rationale, leaving employees feeling overworked and undervalued. Conversely, employees may resist change, assuming it’s purely for the owner’s benefit rather than the company’s overall success. Bridging this divide requires clarity, transparency, and a commitment to creating an environment where both parties feel heard and valued.
One business I coached, a logistics company in Australia, was suffering from high turnover and strained relationships between the owner and their team. The owner was frustrated by missed deadlines, while employees felt overwhelmed by unrealistic expectations. After assessing the situation, I implemented structured weekly meetings where employees could voice concerns and owners could share insights into the company’s goals and challenges. I also helped the owner implement a transparent incentive program that rewarded employees for hitting key milestones. Within six months, employee turnover dropped and productivity increased. My experience in team management, financial planning, and operational efficiency allowed me to guide the owner through this transformation. It’s a testament to how fostering open dialogue and aligning expectations can repair relationships and drive success.
Ronald Osborne, Founder, Ronald Osborne Business Coach
Clarify Roles and Responsibilities
Working with various companies like N26 and Deutsche Bahn, I’ve seen that the biggest tension often stems from misaligned expectations and poor communication. During my time at BMW Startup Garage, I worked with numerous founders who were fantastic at product development but struggled to effectively communicate their vision to their teams. Money isn’t usually the root cause – it’s more about feeling valued and understood. One startup I advised through spectup had brewing tensions because the founder was making significant strategic changes without explaining the reasoning to the team, leaving employees feeling uncertain and disconnected.
We introduced regular town halls and feedback sessions, which helped bridge the communication gap and rebuild trust. Another common issue I’ve noticed is when business owners expect employees to show the same level of dedication and sacrifice they do, forgetting that employees have different motivations and life priorities.
We always advise our startup clients to create clear expectations, establish transparent communication channels, and remember that building a strong company culture is just as important as building a strong product. The most successful companies I’ve worked with are those where owners treat their employees as partners in the journey, not just workers carrying out tasks.
Niclas Schlopsna, Managing Consultant and CEO, spectup
Clarity in Roles and Responsibilities
In my experience, the biggest factor is misaligned expectations. As a business owner, I’ve found that what we expect as leaders, whether it’s productivity, communication, or ownership-often isn’t clearly communicated to the team. This gap can lead to frustration on both sides. Transparency is key. I now make it a point to involve employees in decision-making where possible and ensure they understand how their roles align with business goals. Regular one-on-ones have helped me bridge this gap significantly.
Abhishek Shah, Founder, Testlify
Address Mismatched Expectations
Tension between business owners and employees often arises from misalignment in expectations and communication gaps. Having transitioned from professional basketball to tech entrepreneurship, I understand how unpredictable environments can create stress. Just like an efficient team needs clear roles on the court, businesses need clarity in roles and responsibilities.
At Gig Wage, we’ve managed to reduce this tension by empowering gig workers to have a better experience with payment processes. This stems from listening actively to the needs of both businesses and contractors. An example is when a CFO in Hospitality Staffing shared how cutting down time on payments allowed him to refocus on strategic growth, showing how clarity and efficiency can improve job satisfaction.
Transparent communication and creating systems that support flexibility can mitigate these tensions. Employers need to engage with their workforce, like we do with our partners and contractors, to ensure everyone understands their value and role in the bigger picture.
Craig Lewis, Founder & CEO, Gig Wage
Schedule Regular Feedback Sessions
Success in business relies on strong leadership and a motivated team. However, tension can build when business owners and employees have different priorities.
Owners concentrate on growth and profits, while employees focus on workload, job satisfaction, and maintaining a healthy work-life balance.
I saw this play out at my web development agency during a critical project for a major client. Wanting to impress them, I pushed my team to meet a tight deadline, expecting it to open doors for future work.
What I didn’t realize was the growing stress and burnout within my team. Frustration grew as employees felt their concerns about workload and quality were being ignored in favor of speed.
When communication breaks down, employees may feel undervalued, and business owners may struggle to maintain morale and efficiency.
Nirmal Gyanwali, Founder & CMO, WP Creative
Improve Communication and Set Clear Expectations
Tension between business owners and employees often stems from leadership mistakes such as lack of vision and poor communication. From my experience at Profit Leap, a clear, well-articulated vision can boost growth by 30%, as seen in a Harvard Business Review study. Nokia’s downfall was partly due to failed communication strategies, highlighting the importance of aligning expectations to prevent friction.
Another source of tension is ignoring employee well-being. Companies like Uber have suffered due to this oversight, leading to toxic work environments and damaged reputations. At Profit Leap, I prioritize a positive work culture, recognizing its direct impact on productivity and morale. Implementing employee engagement strategies helps foster trust and mutual respect within teams.
Finally, resistance to change can create stagnation and breed dissatisfaction. Kodak’s reluctance to innovate reminds us that adaptability is key. In my ventures, particularly with the HUXLEY AI business advisor, embracing change and promoting a culture of innovation has been crucial in maintaining a forward-moving, engaged team.
Victor Santoro, Founder & CEO, Profit Leap
Focus on Company Survival and Growth
As a business owner, I think a major source of tension between business owners and employees comes from mismatched expectations. Owners see the business as their responsibility, their risk, and often their identity. Many employees see it only as their job, no matter how hard you try to onboard them with the culture and values. That difference in perspective affects everything – commitment levels, decision-making, and how each side views success and failure. Another major factor is unclear communication. Owners expect employees to “just get it,” while employees often don’t have access to the same information or reasoning behind decisions. When expectations aren’t spelled out, employees feel blindsided by shifting priorities, and owners feel frustrated when things don’t get done the way they envisioned. Clear expectations, regular communication, and an understanding that owners and employees have different stakes in the game help prevent resentment and misalignment.
Adam Goulston, Director, MacroLingo
Align Company Values and Goals
I have noticed tension often stems from misaligned expectations and poor communication. In an IT campaign, sudden changes without proper conversation led to confusion and frustration. Numbers took center stage while genuine input was overlooked, leaving team members feeling sidelined and disconnected.
One instance revealed that high demands set without regular check-ins create a sense of being rushed and undervalued. Open talks about shifting priorities helped clear up misunderstandings and adjust goals along the way. My advice is to schedule regular feedback sessions inviting honest input so owners and employees can align their efforts and reduce unnecessary friction.
Natalia Lavrenenko, UGC manager/Marketing manager, Rathly
Prioritize Regular Feedback
Business owners and their teams can clash for several reasons. Based on what we see at Keller Executive Search, it often starts with poor communication. When employees don’t know what’s happening with big decisions, and owners struggle to share the right information at the right time, trust can break down fast. Both sides also bring different expectations to the table. Business owners might think their teams should just get what needs to be done, while employees may feel stuck waiting for that promised promotion or growth opportunity. It’s a recipe for frustration. In our experience, workload is another big one. When teams are stretched thin and deadlines keep piling up, relationships can get strained. This hits especially hard if employees feel their business owners don’t see how much pressure they’re under. This can also happen if employees feel that business owners lack understanding or add to this pressure by expecting work done faster than possible. Another key contributing factor is micromanaging. From our work at Keller, we understand how difficult it can be for business owners to find the sweet spot between being hands-on and giving space. It’s tricky. If they micromanage too much, teams start feeling suffocated. But if they step back too far, teams can feel like they’ve been thrown in the deep end without adequate guidance. The best workplace relationships we see come down to a few basic things – honest communication, clear expectations, and genuine respect from both sides. Leaders who know how to build these bridges and create workplaces where everyone can thrive usually achieve the most success.
Julia Yurchak, Talent Sourcing, Acquisition & Management Specialist| Senior Recruitment Consultant, Keller Executive Search
Acknowledge Contributions and Offer Advancement
The biggest source of tension between business owners and employees comes down to one thing. They see the company through completely different lenses. Owners focus on survival and growth. Every decision is about cash flow, margins, and making sure the business stays afloat. Employees, on the other hand, focus on stability and fairness. They want good pay, reasonable workloads, and respect for their time. These priorities are not always aligned, which creates conflict. Some of the biggest flashpoints include: Compensation vs. Profitability – Employees want higher wages, while owners worry about payroll eating into profits. Work-Life Balance vs. Business Demands – Employees want flexibility, while owners fear reduced productivity. Transparency vs. Control – Employees want open communication, while owners worry too much transparency could backfire. The solution? Honest conversations and shared incentives. When employees understand the financial realities of the business and owners recognize the value of keeping employees engaged, tension eases. Profit-sharing, clear career paths, and open-book management help bridge the gap between both perspectives. At the end of the day, business owners and employees are on the same team. The challenge is getting both sides to see it that way.
James Shaffer, Managing Director, Insurance Panda
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