It seems absurd that nearly every organization knowingly employs people in critical management roles who are not effective at fulfilling these essential functions. To illustrate just how irrational this is, I often ask hospital employees who complain about poor management, “Do you have bad surgeons?” Their response is always a resounding no. A few years ago, I worked with an airline, and after they acknowledged having poor managers, I asked if they had bad pilots. Naturally, they found the question ridiculous.
We all understand why it’s unacceptable to employ bad surgeons or bad pilots—it would be disastrous for business and could lead to fatal consequences. But isn't it just as harmful for businesses to keep bad managers on board?
The impact of poor management is clear. For decades, we've known that the primary reason employees leave organizations is because of their immediate supervisors. The phrase “People don’t leave organizations, they leave managers” has become a well-known saying. Additionally, we often hear that “People are our most valuable asset,” so why do we allow bad managers to drive away our most important resource?
The cost of losing a talented employee can be enormous, typically costing an organization one and a half times that employee’s annual salary in replacement expenses and lost productivity. If a manager were to waste the company’s financial resources, they would be fired without hesitation. Yet, when managers squander human resources—the backbone of any organization—they’re often allowed to continue with little consequence.
The effects of poor management go beyond lost talent. Harmful workplace practices driven by bad managers are one of the leading causes of stress, which costs U.S. businesses an estimated $190 billion annually in healthcare expenses. Even more alarmingly, workplace stress is responsible for approximately 120,000 deaths each year—more than kidney disease or Alzheimer’s.
At MITM, we specialize in helping businesses identify and address management issues. We work closely with organizations to develop their management teams, ensuring they have the skills and strategies necessary to lead effectively. Let us partner with you to build a strong leadership foundation that retains top talent, reduces workplace stress, and strengthens your business from the inside out.
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