The True Cost of a Bad Manager

Most organisations don’t think twice about investing in systems, technology, or recruitment.

But when it comes to training managers?

That’s often where hesitation creeps in.

Yet the reality is simple: the cost of a poorly trained manager is one of the most expensive risks in your business.

And the solution might cost less than £160.

The Hidden Cost Sitting in Your Organisation

Managers sit at the centre of your business.

They influence performance, productivity, engagement, wellbeing, and retention.

So when managers are under-equipped or unsupported, the impact is felt everywhere — often without being immediately visible.

Let’s break down what a “bad manager” (or more accurately, an untrained manager) can cost your organisation.

1. Employee Turnover: £9,000 – £60,000 Per Employee

One of the most consistent findings in workplace research is this:

People don’t leave companies — they leave managers.

Replacing an employee typically costs between 30% and 200% of their salary when you factor in recruitment, onboarding, lost productivity, and training.

For a £30,000 employee, that’s anywhere from:

👉 £9,000 to £60,000 — for just one resignation

Multiply that across a team with poor management, and the costs escalate quickly.

2. Disengagement: £5,000+ Per Employee, Every Year

According to Gallup, disengaged employees cost businesses approximately 18% of their salary in lost productivity.

That means:

👉 A £30,000 employee could be costing your business over £5,000 per year in reduced output

Disengagement doesn’t always look dramatic. It shows up as:

  • Lower effort
  • Reduced initiative
  • Lack of accountability
  • Minimal discretionary effort

And managers are the single biggest driver of engagement levels.

3. Absenteeism & Stress: £1,000+ Per Employee

Work-related stress remains one of the leading causes of sickness absence in the UK.

Poor management behaviours — unclear expectations, lack of support, poor communication — all contribute to increased stress levels.

The result?

👉 Increased absenteeism, costing £600–£1,000+ per employee per year

And that’s just the direct cost — not including disruption, cover, or reduced team performance.

4. Presenteeism: The Invisible Cost

Presenteeism is when employees are physically at work but not fully functioning.

It’s often driven by:

  • Low morale
  • Burnout
  • Poor leadership
  • Lack of clarity

Research suggests presenteeism costs businesses 2–3 times more than absenteeism.

👉 Often exceeding £4,000 per employee annually

This is one of the biggest hidden drains on productivity — and one of the hardest to spot.

5. Performance Issues, Conflict & Risk

Untrained managers often struggle with:

  • Difficult conversations
  • Giving feedback
  • Managing performance
  • Handling conflict

This can lead to:

  • Ongoing underperformance
  • Team tension
  • Formal HR issues
  • Grievances or even tribunals

A single tribunal case can cost £10,000–£50,000+, not including reputational damage.

So… What’s the Alternative?

Now compare those costs to this:

👉 Manager training at less than £160 per person

For a fraction of the cost of a single absence, resignation, or disengaged employee, you can equip your managers with the skills to:

  • Lead with confidence
  • Have effective conversations
  • Support wellbeing
  • Drive performance
  • Build engaged, high-performing teams
The Reality: Most “Bad Managers” Aren’t Bad

In our experience at We Are Wellbeing, most managers aren’t failing because they don’t care.

They’re failing because:

  • They’ve been promoted without training
  • They’ve inherited people responsibility without support
  • They’ve never been shown how to manage effectively

The result?

Capable individuals placed in roles they’ve never been equipped to succeed in.

The £160 Decision

Every organisation faces a simple choice:

  • Absorb the ongoing cost of poor management
    or
  • Invest a small amount upfront to prevent it

Because the numbers don’t lie:

👉 One disengaged employee: £5,000+ per year
👉 One resignation: up to £60,000
👉 One tribunal: £10,000+

👉 One trained manager: less than £160

A Culture Shift, Not Just a Course

Investing in manager training isn’t just about skills.

It’s about culture.

It sends a clear message that:

  • Leadership matters
  • People matter
  • Performance and wellbeing go hand in hand

Organisations that invest in their managers create:

  • Stronger teams
  • Better retention
  • Higher productivity
  • Healthier workplaces
Ready to Reduce the Cost of Poor Management?

If you’re serious about improving performance, reducing risk, and building a stronger workplace culture, it starts with your managers.

At We Are Wellbeing, our CPD-accredited Manager Training is designed to give your leaders the practical tools, confidence, and capability to lead effectively from day one.

👉 Book your Manager Training today and start turning £160 into one of the highest ROI investments in your business.

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