We’ve all heard the saying: “People don’t leave bad companies; they leave bad managers.” Unfortunately, there seems to be no shortage of mismanagement. The impact of bad managers extends far beyond unhappy employees: it’s bad for business. The cost of poor management is staggering, with estimates putting the financial cost at more than $960 billion annually in the United States and $8.1 trillion globally. according to Quartz Business News.

The impact of bad managers

Bad managers are a major obstacle to employee engagement. Gallup’s research reveals that 70% of a team’s engagement is directly linked to its manager. When engagement declines, the ripple effects can be costly: lower productivity, higher turnover, and a toxic work environment that is difficult to recover from.

Given these statistics, you would think that organizations would do everything in their power to eliminate poor management. Yet incompetent managers remain prevalent. Actually, Gallup finds that companies fail to choose the right candidate in 82% of cases.

Why bad managers persist

1. A rigid career ladder

In many organizations, the path to career advancement is narrow. Ambitious employees who excel in their role but have no desire to manage others often find themselves with limited advancement options. The only way to progress is to move from individual contributor to manager, even if they don’t have the desire or skills to lead. This scenario leads employees to take on leadership roles not out of a passion for leadership, but for the pay raise, title, and status that comes with it.

Leadership expert and president of IMS, Charles Good said: “Instead of pushing talented individual contributors into leadership positions, organizations should find ways to leverage their strengths by offering career development paths that are different from the usual ones. In their internationally bestselling book, Help them grow or watch them goBeverly Kaye and Julie Winkle Guilioni make an important point: Some of the best conversations you can have with your employees revolve around what career success means to them. Knowing their definition of career success is the first step. From there, pursuing that vision can take many forms and go in all kinds of directions! »

2. Wrong Hiring Decisions

Promotion decisions are often based on past performance rather than future potential. Organizations tend to reward high performers with leadership roles, assuming that success in one area automatically translates into leadership abilities. This retrospective approach neglects critical factors like emotional intelligence, leadership qualitiesand the desire to lead. As a result, promotions become rewards rather than recognition of true leadership potential.

3. Politics over potential

In some companies, internal politics play a bigger role in promotions than merit. Those who excel at networking or have strong political ties within the organization may find themselves in leadership roles, regardless of their ability to inspire and engage a team. This approach undermines the principle of meritocracy and often places unqualified individuals in positions of power.

4. Focus on retention rather than adjustment

Another common mistake is promoting someone to a leadership position in order to keep them there, even when leadership isn’t what they want or isn’t a good fit. This short-sighted approach often backfires, leading to unhappy managers and disengaged teams. To retain top talent, organizations must understand what truly motivates their employees and find ways to provide growth opportunities that don’t necessarily involve managing other people.

5. Inertia

Once a bad manager is in place, it’s difficult to remove them. Those who made the promotion decision may be reluctant to admit they were wrong, and sometimes the extent of a manager’s incompetence is only known to his or her immediate team. In cases where managers are bullies and the company culture doesn’t reward honest communication, employees may be too intimidated to speak up, allowing toxic behavior to fester.

6. Leadership development is lagging behind

Many managers are given leadership roles without the proper training and support. They benefit from leadership development after promotion, which sets them up for failure. Despite billions of dollars spent each year on leadership development, training often doesn’t match the real-world challenges managers face. This disconnect leaves new managers ill-prepared to lead effectively. Good added: “Companies should prioritize leadership development as a continuous journey, recognizing that it begins long before an individual is promoted and continues throughout their career. By investing in this continued growth, companies can build a strong pipeline of skilled leaders ready to contribute to the success of their organization.

7. Leadership development is not personalized

Leadership development must be personalized to maximize impact. Melissa Janisa leading expert on developing new managers warns: “Even when managers receive training, they often struggle to maximize its value because the program is not tailored to their specific needs. Covering a wide range of topics such as communication, delegation, and business acumen, one-size-fits-all programs overwhelm managers with information they can’t immediately use, and they must figure out how to apply these concepts themselves. . Without development that meets them where they are and without the support they need to apply new concepts, training becomes just another box to check, failing to generate real results and leaving managers and businesses frustrated. .

It’s time to solve the problem of bad managers

Organizations willing to change the way they hire, promote, evaluate and develop their leaders will have a significant advantage over their competitors.

1. Change hiring criteria

Leadership potential should be assessed and prioritized against past performance. Companies can use 360-degree feedback from colleagues and direct reports to assess candidates’ leadership qualities before promoting them. This approach ensures that promotions are based on leadership potential, not just technical expertise.

2. Potential to reward with development

Rather than waiting until someone is promoted to provide leadership training, organizations should offer management training as soon as they recognize the potential. This proactive approach helps employees develop the skills they need to succeed in leadership roles, reducing the risk of failure once promoted.

^{3. Expand career ladder options}

Organizations need to create alternative career paths that do not involve managing others. By understanding employee motivations, companies can provide growth opportunities that match their interests and strengths, whether that’s accepting an international assignment, leading a specialized project, or deepening their expertise in a specific domain.

4. Do the hard things

Poorly performing managers need support to change their behavior and master new skills. But if they don’t improve, they should be demoted or fired. Taking this strong stance sends a clear message that mismanagement will not be tolerated and reinforces the importance of integrity and effective leadership.

Not everyone is suited to lead and not everyone aspires to a leadership role. By rethinking how promotions and employee growth are managed, organizations can significantly reduce the prevalence of bad managers. The result? A more engaged workforce, better business results and a company culture where true leadership is recognized and rewarded.

A pioneer in personal branding and virtual presentation skills, William Arruda helps professionals stand out in the digital world. Download his free guide 9 Fun and Easy Ways to Improve Your Online Meetings and Presentations and transform your online events into powerful, engaging brand experiences.