Quantifies how poor managers cost millions in disengagement, turnover, stress and lost productivity, proving that targeted manager training delivers measurable ROI and protects against the Great Resignation.
Managers are the daily touchpoint for most employees, and their competence directly determines engagement and turnover. The article shows that disengaged workers cost about $3,400 per $10,000 salary, and that managers drive 70% of engagement variance. By assuming even a modest improvement in manager skill, organizations can save millions in a 500-person firm.
Turnover costs range from 50% to 250% of a salary, meaning an entry-level $50k employee can cost $40k to replace while senior roles can exceed $500k. If half of those exits stem from bad managers, the financial upside of training is tenfold. Stress-related absenteeism adds another $200k annually for a midsize company, and better manager support can cut that dramatically.
Beyond the dollars, the piece outlines critical manager capabilities-purpose alignment, psychological safety, coaching, change management and emotional intelligence-that directly boost productivity. Studies cited link a 10% lift in manager effectiveness to a 14% rise in output, making the ROI calculation straightforward. The argument is clear: investing in manager training is not a nice-to-have expense but a strategic lever that protects talent and drives the bottom line.
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