Preventing the Cost of Poor Management!

Having been challenged recently to justify ‘return on investment’ for management development courses and programmes, I gathered together some ideas… and hope the following helps/interests you…

Since it is not so easy to measure the profits generated by ‘people’ training (aside from e.g. negotiation/influencing/sales), perhaps the best approach is ‘cost prevention’.


We know that poor management can have an impact on the performance, mental health, morale and motivation of staff… but what are the measurable costs? And how much do the following cost your organisation?


Business Costs

Average Cost to UK Businesses

Cost to Your Company Per Year?

Staff turnover


·       30% churn of staff per year (a healthy guide is 10%)

·       Cost of replacing person (earning £25K+) is over £30K per person

·       Tribunals cost an average of £12K


Sickness absence


·       Cost £138 billion per year


Poor performance/decreased productivity


·       Cost £84 billion per year


Conflict within/between teams


·       Cost £28.5 billion per year


Company reputation/Customer churn


·       Cost £11.4 billion each month



According to a 2023 report by CMI

  • 82% of workers entering management positions have not had any formal management and leadership training, adding to the UK’s stock of “accidental managers.”
  • Managers with formal training are significantly more likely to call out bad behaviour or report concerns or wrongdoing compared to those who have not had any training


According to research quoted by CIPD

  • Training & development helps with staff retention, attracting talent, productivity, morale and satisfaction.



The Call to Action!


If you are looking at any form of management/leadership development, please contact me. With over 30 years’ experience in learning, management development and organisational psychology, I may just be able to help…


And if you have colleagues in other companies that want to reduce the costs of poor management, please do recommend me (assuming you are happy to do so!)


For more information about Imaginarium Learning & Development: www.imaginariumdev.com


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