According to research by Gartner, 85% of new people managers receive no formal management training.

As you and I both know, managing people is a complex task. There is no instruction manual nor a “one-size-fits-all” approach.

Yet, we still expect our managers, often promoted through tenure and technical competence, to learn on the job and develop their skills by practicing, in real-time, on our people – our greatest asset.

It’s great that people get to learn by doing but getting it wrong can have dire consequences for your business, the bottom line and your competitive advantage.

Here’s what you risk:

Employee retention

Bad management doesn’t go unnoticed by employees. According to a 2020 Society for Human Resource Management survey, 84% of American workers noted that “poorly trained people managers create a lot of unnecessary work and stress.” Over time, many employees with bad managers might opt to leave. According to a 2024 LinkedIn Workforce Confidence survey, 7 in 10 U.S. workers would leave a job if they had a bad manager.

There is a HUGE cost involved with this.

Losing talent can have a detrimental impact on your business. First, there is the time and cost of replacing them. If the skills you need are scarce, this could really impact your ability to trade.

Then, there is a period of upskilling and onboarding. Who is mainly responsible for this? Yep, the manager.

You’ll also want to consider the loss of knowledge. Assuming that your workers are knowledge workers, most of what they know is acquired tacitly or lives in their heads.

Lastly, when your talent leaves you, who do they go and work for? That’s right, your competition!

Employee engagement and productivity

A 2021 Gallup report stated that managers account for at least 70% of the variance in employee engagement scores and that great managers engender loyalty in their people.

Gallup also reported that only 33% of American workers are engaged in their jobs. 52% say they’re “just showing up,” and 17% describe themselves as “actively disengaged.” As you can tell, most employers have a lot of work to do to unlock the full potential of their workforce.

Employment-related legal claims

And all of that is before you even consider employment law! A poorly educated manager can land themselves (and your business) in hot water with a poorly handled recruitment process or mistakes in a dismissal – it’s a minefield.

And then it’s not just legal fees you could be budgeting for, but brand damage and a negative impact on your company’s overall reputation.

What’s the solution to this? You guessed it…Management training

Management training can also be a great way of recognizing the excellent management competency your managers already have through formal acknowledgment and accreditation.

By providing a clear program of key management skills, your managers can reflect on their capabilities, benchmark themselves and ensure continuous learning. They will also recognize their weaknesses, limitations and development needs.

Takeaway

Invest in your management training program and your financial results will benefit from well-informed managers, equipped to retain, train and drive your team’s performance.

Talk to us about management training

We have an excellent management training program and we’d love to discuss this with you. Get in touch.