Good leadership makes a difference to your bottom line

Lets take a look at the impact good leadership in your business can have on your business.

It is true that employees join companies but leave managers. A Gallup poll of more 1million employed workers concluded that theNo. 1 reason people quit their jobs is a bad boss. One piece of research found that 75%of workers who voluntarily left their jobs did so because of their bosses and not the position itself.

So, despite how good a job may be, people will resign if the line management relationship is not healthy – so turnover can be seen as a management issue. In 2017 the average turnover of staff was reported as 33%. Each time a salaried employee is replaced within a business, the cost of recruiting can be equal to 9 months’ salary.

So, if a core reason that staff leave businesses is because of their managers and if replacing those staff that leave costs that much – it stands to reason a key focus for business must be in improving the quality of their managers.

Across industries, studies show managerial effectiveness has a huge impact on team performance, engagement, creativity, productivity, reduction in absenteeism and overall retention.

Absence from work due to ill-health cost the UK economy £18 billion in lost productivity in 2017 and was predicted to rise to £26bn by 2030 (1) Given that 30million working days lost in Great Britain are due to work-related ill-health reducing this and the significant impact that this has on businesses bottom line makes good business sense – regardless of size or sector.

Research has clearly linked the behaviour of leaders and managers in organisations to absenteeism in the workplace. The Health and Safety Executive (HSE) note that supportive leadership styles reduce absenteeism in the workplace and the Chartered Institute of Personnel Development (CIPD) research found that poor management style is one of the main causes of work relate stress.

Now more than ever as we move out of the pandemic phase of Covid 19, effective, compassionate, and supportive leadership is critical.

The risk of mental health problems has increased, and people are reporting both an exacerbation of pre-existing mental health conditions and many who hadn’t experienced any mental Health concerns are now being seen by health services. General health and wellbeing has been affected including uncomfortable work conditions at home, reduced access to health services, changed lifestyles, people having to cope with high levels of uncertainty and change both during each wave of the Pandemic and still now post pandemic as we get used to new ways of working.

What is clear is that effective leadership has become more crucial than before – and it was pretty important even back then!

Supporting managers and leaders in the workplace to be the best they can be, to in turn support their teams to perform at their best makes good sense on a human and decency level but it also make good business sense too!

Janine has almost 25 years senior management experience and offers workplace mediation alongside leadership and management development sessions and individual and team coaching.

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