Bad Managers Are Expensive

According to a Robert Half International survey that was just released, employee retention is still a top priority for companies, even in tough times.  The other thing that the survey shows is that "bad manager" is the #1 reason people quit a job. In fact, 35% of those polled cited this reason (up from 23% a few years ago).  This was followed by limited opportunities for advancement.  Salary was near the bottom.

We've mentioned this before, and it's the reason we exist.  Poor managers (business leaders) cost your company thousands, sometimes millions of dollars.  Here's an example that is on our home page:

- A first line manager with a salary of $80,000

- This manager has 8 direct reports making $50,000 each

- A top performing manager can deliver ~$150,000 more than a poor performer to the company each year.  A top performing manager will get about ~10% more out of the team than averge manager, with a poor performer getting ~10% less than average.

- A poor performing manager will have ~25 more turnover than a top performing manager, but our calculation assumes just 10%.  Per this article, this number is low.  Turnover is expensive.  It places a burden on the remaining team members, reducing their overall output and the cost of recruiting and training new hires is expensive.

Bottom line: An "amazing leader", a top performing manager can make a huge difference in more than just morale.  There are real dollars at stake.

Link to Biz Journal story