People Don’t Quit Their Companies, They Quit Their Manager
We all know them… the managers that make our lives difficult. Have you ever left a company because you were poorly managed? Would you be surprised to learn that over 50% of people leave their jobs because of a bad manager?
What skills are missing in today’s managers? My company, Verb, asked 400 US Human Resource leaders in an online survey to rank the managerial qualities they find most often lacking.
The top three skills HR leaders see missing are:
- effective communication (20%)
- active listening (17%)
- motivating others (13%)
These needed qualities seem so simple yet can be so difficult to teach. Unlike compliance training or technical skills development, building personal leadership skills takes time and practice. Yet according to the latest survey from the Association for Talent Development, only 12% of 2015 training focused on building managerial or supervisory skills.
How much do bad managers cost companies? Companies experience 16% annual turnover on average. In a company with 1,000 employees that means 160 people are leaving each year. And roughly 80 are leaving due to a poor manager. The average cost to replace an employee earning $70,000 per year is $15,000. Mid sized companies must spend approximately $1.2 million hiring and training employees each year to replace those that left due to bad management. And that doesn’t account for lost productivity created by bad managers — those are just the hard costs to hire and train new employees.
Imagine the lift you would see financially and culturally if your company focused on transforming managers into strong leaders.
Interested in our Survey? Click here to download the detailed results.