the cost of poor leadership

The Cost of Poor Leadership

The cost of poor leadership can be measured in many ways. Poor leadership skills can have a huge impact on your company. They can lead to high staff turnover, increased absenteeism and decreased productivity. The cost of poor leadership skills are not just financial, but can affect the company’s culture and morale as well.

Improving management and leadership skills are an essential factor in improving productivity and are a critical factor, not only in individual businesses, but the UK economy as a whole. Many experts agree that the quality of management and leadership are the biggest factors determining business performance and national productivity.

It is estimated that almost three quarters of employers, do not properly prepare and train employees, who are trust into managerial positions due to promotions or staff turnover. This has resulted in over 2 million employees being promoted into management or leadership positions without being fully prepared or supported.

The Chartered Management Institute refers to these 2+ million employees as “accidental managers” and identifies this as a core reason behind the cost of poor leadership being so high. The cost of poor leadership.

Why does this matter?

The economic benefit of transforming “accidental managers” into conscious leaders cannot be underestimated. Investors in People estimates that poor management and leadership currently costs UK businesses around £85 billion per year in lost productivity. That’s billion with a B – every year! That represents almost 3% of the UK’s annual GDP.

The three most widely recognised costs of poor leadership are financial, customer retention and employee turnover. The cost of poor leadership

The Financial Cost of Poor Leadership

Poor leadership can lead to a lack of motivation and productivity. The cost of poor leadership is not just in the form of lost revenue, but also in the form of lost talent.

Leadership is an important factor in any organisation. It’s not just about getting results and making money, it’s also about managing people properly. A good leader should be able to inspire their team to work harder, smarter and with more enthusiasm.

The Customer Retention Cost of Poor Leadership

Companies that have poor leadership practices tend to have a high customer turnover rate. The cost of acquiring new customers includes marketing, advertising and sales commissions.

Depending on the market sector you operate in and its competitiveness, these costs are typically much higher than the cost of keeping an existing customer, happy, loyal and generating you a reliable income stream. 

The Employee Turnover Cost of Poor Leadership

Employee turnover is costly. It costs an average of £12,000 to replace a lost employee.

The cost of unmotivated employees is even higher. An unmotivated employee can cost a company as much as £40,000 in lost productivity and lost revenue.

To keep these costs from adding up, companies need to find ways to motivate their employees and keep them motivated over the long term.

Leadership Skills

Leadership is a skill that is often taken for granted. It’s something that we all know about, but not many people think about. Leadership skills are used to help people work together and get things done. But what are the skills of a good leader? What are bad leader skills? And how can leaders be developed?

What makes a good leader?

A good leader is someone who has the ability to inspire others, make decisions and accomplish goals. They have strong relationships with their team members and understand the importance of communication in order to be successful.

What makes a bad leader?

A bad leader lacks empathy, has poor communication skills, is not able to make decisions or accomplish goals, doesn’t have a sense of humour, is condescending to others, has poor judgement, and lacks self-awareness.

What is a Conscious Leader?

The Conscious Leadership Institute defines Conscious Leadership as the art and science of bringing our whole selves to work and using our whole selves at work. It is about being in charge of our own minds, managing our emotions, understanding how we are wired and using that knowledge to achieve optimal performance.

Conscious leadership consists of four basic tenets: mindfulness (being aware), presence (being mindful), self-regulation (self-awareness) and compassion (compassion). These tenets are all interconnected with one another, meaning that they cannot be separated from one another. The cost of poor leadership.

How Can Leaders Be Developed?

The cost of poor leadership can be reduced though the development and training of management and leaders. Developing leaders often starts with developing themselves. Having the right mindset and emotional intelligence is crucial in this process.

There are many ways that leaders can develop. One of the most popular is through leadership coaching. Leaders who want to grow should seek out a coach and have them help them with their goals and objectives.

Working with a coach can be beneficial for people because they will have someone to give advice and feedback throughout the process. Coaches can provide valuable insight into your leadership style that you may not notice on your own. They will also be able to point out aspects of your personality that may need improvement, which can make you a stronger leader in the long run.

Sarah Jones Leadership Coaching and Conscious Leadership

I have personally overcome many challenges people face as they progress their careers on the path to becoming leaders. With over 25 years working in leadership positions within global organisations, I am ideally placed to help you find your true authentic self.

If you are an aspiring leader of the future, an experienced leader or an organisation looking to expand the skillset of your leadership team, then please contact me to achieve your goals.

How can I help you?

I have a range of conscious leadership coaching programmes that are tailored to the needs of the individual, these will allow us to address together very specific challenges, which could include:

  • Emergencies
  • Making the right ethical decisions for stakeholders.
  • Developing active listening skills.
  • Aware of your own strengths, patterns, limitations.
  • Allowing imperfections and not seeing them as a threat.
  • Being transparent and sharing information.
  • Doing the right thing ethically in a crisis.
  • Being open to challenge.
  • Showing genuine concern.
  • Admitting you don’t have all the answers.
  • Accepting and using failure to learn.
  • Developing candour, compassion and empathy.
  • Being transparent and sharing information.

My training programmes start at only £279.00, but in order to recommend a coaching programme and provide you with a quote, we would first need to talk thorough the challenges you are facing, identify where I can help you and how long this is likely to take.

The first step in this process is by booking a free, no obligation call with me.

Book Your Call

Your first call is obligation free, confidential and completely free of charge

The next step in your development journey is getting a professional assessment on the what practical steps you can take to develop and improve your skill set, mindset and your prospects. 

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The cost of poor leadership.