The Cost of Poor Management

Approximately 2 in 5 Canadian professionals have quit a job because of a bad manager, according to research conducted on behalf of staffing firm Robert Half. The survey found that 39 per cent of respondents resigned from their jobs due to poor management.

Poor management can occur in several forms, such as:

• Being unreachable
• Failing to communicate
• Micromanaging tasks
• Using inappropriate disciplinary actions
• Not providing feedback or recognition

These shortcomings can create an environment of disengagement and dissatisfaction among employees.

Employee Turnover

Replacing employees costs an organization both time and money. Research has found that replacing a mid-level employee can cost a company 20 per cent of that worker’s annual salary, and replacing a high-level employee can cost up to 213 per cent of their salary.

Disengaged Workers

Even if an employee doesn’t leave an organization, bad management can lead to workers feeling disengaged and uninterested in their job, which can lead to various problems for employers. Gallup found that disengaged employees have 37 per cent higher absenteeism, 18 per cent lower productivity and 15 per cent lower profitability. In financial terms, disengaged employees typically cost a company 34 per cent of that worker’s annual salary.

Tips for Effective Leadership

Strong and effective leaders are important organizational assets for many reasons. They can boost morale, implement company visions and values, and provide employees with the appropriate resources needed to succeed.

The following are tips for effective leadership:

• Lead by example—Good leaders are willing to get their hands dirty and work alongside their team. Leading by example will earn respect and loyalty from employees, and will help set expectations for them to follow.
• Be goal-oriented—Effective leaders direct attention toward solutions rather than problems. Instead of complaining about the issues, focus on creating a plan and strategy to achieve objectives.
• Take responsibility—Trust and respect can be earned by leaders who hold themselves accountable rather than point fingers.
• Celebrate the team’s success—Leaders should be team-oriented and give appropriate credit for the team’s joint efforts.
• Communicate—Communication skills are essential for effective leadership. Providing feedback, as well as listening to feedback, can give everyone an opportunity to grow.

By creating and retaining effective leaders, organizations can see improved workforce productivity and increased growth potential, and foster a team that is able to thrive with change and under pressure.

For more information on management, or to find out how to reduce your insurance costs call CMB at 780.424.2727 or click here to get a quote.