The High Cost of Underdeveloped Managers

One of the greatest risks organizations face today isn’t just market shifts or economic pressures, it’s underprepared managers. When leaders aren’t given the training and support they need, the effects are costly: disengaged employees, high turnover, stalled performance, and a culture of burnout.

According to Gallup, 70% of the variance in employee engagement is tied directly to managers. Yet, too often, companies promote great individual contributors into leadership without investing in their development. The result? Teams struggle, leaders feel overwhelmed, and HR is left putting out fires.

What Happens When We Don’t Train Our Managers

• Turnover skyrockets: Employees leave managers, not companies.

• Productivity stalls: Without clear coaching and direction, teams lose focus.

• Burnout spreads: Untrained managers often pass stress down the chain.

• Culture erodes: A lack of confident leadership weakens trust and morale.

  
  

In today’s uncertain environment, these costs multiply quickly. Organizations simply cannot afford to leave leadership development to chance.

The Real Price Tag of Turnover

The financial cost of losing even one employee is significant. Studies estimate turnover costs to be 1.5–2 times an employee’s annual salary when factoring in recruitment, training, lost productivity, and cultural disruption.

For example:

• If a manager loses just 3 employees earning $60,000 each, the cost can exceed $270,000.

• Multiply that across departments, and the impact reaches into the millions.

  
  

Untrained managers don’t just create headaches for HR, they drain resources, slow growth, and threaten the bottom line.

HR’s Role in Building Strong Leaders

HR is uniquely positioned to coach and train manager, helping them move from “task supervisors” to leaders who inspire, engage, and retain talent. That means:

• Providing frameworks for handling tough conversations

• Offering tools for setting goals and giving feedback

• Creating spaces for managers to practice and learn new skills

• Encouraging empathy, adaptability, and resilience as leadership essentials

  
  

When HR invests in its managers, the return is measurable: stronger teams, better performance, and greater stability in times of change.

A Timely Opportunity to Act

If you’ve been asking how to better equip your manager, or if you’ve seen the hidden costs of leaving them unsupported, now is the time to act.

That’s why we’re proud to be a sponsor for the Strategic leadership in challenging times: Navigating difficult conversations and demanding workloads conference this September. This event isn’t just for HR, it’s designed for HR professionals, managers, and team leads to come together, learn practical tools, and walk away ready to lead with resilience and confidence.

 Reserve your spot (and your managers’ spots) today and invest in the kind of leadership that will shape your organization’s future.