Caroline Bellanger Wood

Written by: Caroline Bellanger Wood

Caroline Bellanger Wood

Learning and Development Consultant

Are your managers damaging your bottom line?

  • October 2017
  • 3 minutes

Think about the last person you made a manager. Perhaps you promoted them because they did well on a project. Or they showed high potential in their specialist area.

But what about their ability to lead? Did you take the time to teach them key skills, such as how to motivate, inspire and dissolve team tensions?

The reality is that few people are taught how to become good managers. Many are put in positions of seniority and expected to lead their new team without ever being shown how to do this effectively. 

Yet good managers are key lever for business success. On the flipside, a study by Investors in People estimates that bad managers cause an £84bn loss to the economy each year.

Firms that take time to turn their accidental managers into pro-active, confident and competent leaders can see significant benefits to their bottom lines. 

But what skills should you nurture? 

It’s about people, not just the job in hand. 

Managers should not just be tasked with applying a business’ strategy, HR best practice and employment law fundamentals. They must also make sure their team performs, in good times and bad. 

Clear communication is critical. Managers must be expert motivators. They need to inspire. And they must be able to build rapport. 

Those that don’t engage their team face high staff turnover, poor results, regular or extended periods of absences, grievances and even tribunal claims. 

Managers must be people people. Are yours? 

Managing team tensions. 

The Xpert HR Workplace Conflict survey 2015 shows that nearly 90 per cent of employers have witnessed conflict between an employee and their line manager. Bad management was one of the top five causes of disputes. 

Resolving conflict is not just a drain on time. It also erodes team work and individual well-being. And it stops managers focusing on strategic or firm-wide concerns. 

When conflicts escalate and lead to tribunals, businesses face major costs. The average award for unfair dismissal was £13,851 in 2015/2016, up by £1,500 from the previous year (Morton Fraser, 2016). 

Do your managers prevent and mitigate conflicts?

Reducing downtime and staff exits.

Good managers boost team morale; employees are engaged and become loyal to your company and its ambitions. But when teams aren’t managed properly, absence rates spiral and staff jump ship. 

Regular workforce absence and churn will chip away at your bottom line. Research by Oxford Economics showed recruitment campaigns typically cost around £5,400, while waiting for your new employee to become fully productive adds another £25,000 to the process.

Are your managers the first line defence against staff downtime and departures?

RSM offers training and development solutions for managers, including a five-module training course that follows the employee lifecycle and draws on HR best-practice and key aspects of employment law. If you would like to find out more, please contact Caroline Bellanger Wood.

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