Why Bad Managers Cost More Than You Think

One disengaged manager can unravel an entire team. Poor leadership doesn’t just frustrate employees — it drains performance, increases turnover, and erodes workplace culture. And the financial cost? It adds up fast.

The Ripple Effect of Bad Management

According to Gallup, managers account for 70% of the variance in employee engagement. A single ineffective manager can lead to low morale, poor collaboration, and missed goals. Over time, this creates a culture where people do the bare minimum to get by.

High Turnover, Higher Costs

Bad management is one of the top reasons employees leave. Replacing a disengaged employee costs up to two times their annual salary, especially when factoring in recruitment, training, and lost productivity. In South Africa’s competitive job market, businesses can’t afford this kind of leakage.

Toxic Culture, Hidden Damage

When employees don’t feel valued or heard, they stop speaking up. Innovation suffers. Customer service drops. People get sick more often. These hidden costs — absenteeism, presenteeism, poor team dynamics — all trace back to leadership that doesn’t listen or lead effectively.

Takeaway

A bad manager isn’t just a bad fit — they’re a business risk. Investing in leadership development isn’t optional; it’s a strategic move. If your managers aren’t thriving, neither are your teams.