Bad managers aren’t just an annoyance – they have a significant impact on the performance of individuals and businesses worldwide. The State of the Global Workplace report, published by Gallup in 2024, states that low employee engagement costs the global economy $8.8 trillion annually – that’s the equivalent of 9% of global GDP. The impact of bad management is not just financial. Mental health and workplace culture are also negatively affected.
In this article, we’ll look at the report’s findings, plus other research, to identify how bad managers affect both employees and businesses. We also look at why they often remain in their roles, despite their poor performance, and discuss strategies that organisations and individuals can use to mitigate their impact.
The cost to employees of bad management
The Gallup report found that “the majority of the world’s employees continue to struggle at work,” which has “direct consequences for organisational productivity.” Let’s see how the effects of bad management can impact a business:
Increased employee stress
The report found that 41% of employees experience high stress at work on a daily basis. This is more than ever before! It also notes that workers with bad managers report experiencing “a lot of stress” 30% more frequently than the unemployed. Bad managers increase employee stress levels by:
- Not setting clear expectations: Lack of clarity in roles is cited as a key stressor. When bad managers don’t provide clear guidance, employees are uncertain about their goals and priorities.
- Micromanaging: Frustration and low morale is the outcome when employees feel stripped of their autonomy.
- Making unrealistic demands: Unreasonable workloads and a lack of resources, on top of inadequate support, can result in employee burnout.
Greater employee disengagement
The report warns that, globally, only 23% of employees are engaged in their work. Disengagement is often a result of bad management, as bad managers fail to celebrate staff achievements, support their career development, or create a sense of purpose. The trend of quiet quitting – doing nothing beyond the basic requirements of the job – has taken off, fuelled by social media, due to these issues.
Poor employee mental health
Bad management can have a huge detrimental effect on employee mental health. The Gallup research shows how disengaged employees are more likely to experience:
- Loneliness and isolation
- Anxiety and depression
- Physical health issues such as high blood pressure or insomnia
High employee turnover
As if quiet quitting wasn’t bad enough, bad managers often drive employees to leave the business altogether. The report estimates that 70% of variance in team engagement is attributable to management. It follows, therefore, that businesses with poor managers suffer from a higher turnover rate. And with that comes financial cost.
HRM Asia advises that “it costs about 33% of a new recruit’s salary to replace an employee who left their job.” For higher-level jobs, it could be up to 150% of the employee’s annual salary. This includes recruitment, training, and lost productivity. A 2021 report by EngageRocket quoted a study that showed employee engagement levels in Singapore, at 11%, are even lower than the global average of 14%.
The cost to the business of bad management
As well as the effects on individual staff, bad management can have a ripple effect across the business. These include:
- Less innovation: The fear of criticism can prevent individuals and teams from sharing ideas or taking risks.
- Brand damage: Disenfranchised staff have the potential to damage the brand’s reputation, either locally or online, affecting its perception among customers and future hires.
- Less diversity and inclusion: When a bad manager fails to build a diverse, equitable workplace, where everyone’s contributions are valued, they can drive away underrepresented employees.
Supporting studies
It’s not hard to find reports and statistics that show how the effects of bad managers can impact employees. For example:
- A 2024 report by the Singapore Business Review found that 32% of workers cited feeling unappreciated at work as a key consideration in wanting to leave their job.
- Research by Instant Offices, quoted by Office Finder, found that 90% of Singaporean staff are experiencing burnout, with factors causing this including long working hours, pressure to meet deadlines, and heavier workloads.
Why bad managers don’t lose their jobs
It’s clear that bad managers have a significant negative effect on both employees and businesses, but they often remain in their roles and the cycle continues. Why is that? Common reasons for not firing them include:
Businesses focusing on technical skills rather than leadership skills
Organisations often focus more on technical ability than leadership ability. When promotions and training don’t prioritise leadership skills, bad management practices can settle in and lead to low engagement levels.
Businesses lacking effective mechanisms for constructive feedback
Annual performance reviews and tick-box feedback tools often fail to address bad leadership and management. Staff may also be wary of retaliation if they provide negative feedback, which leads to under-reporting of problematic behaviour.
Businesses focusing on short-term results rather than long-term success
If managers are meeting their short-term goals, long-term problems may not be noticed. Even when employee well-being is impacted, the short-term wins can overshadow valid concerns about leadership style.
There are cultural barriers within the business
Resistance to change is natural – it’s how it’s managed that counts. Hierarchical business structures can make it difficult to initiate change or replace a bad manager, particularly if they are considered by superiors to be loyal or experienced.
How businesses can address a culture of bad management
Addressing bad management practices requires long-term effort and intentional change over several years. The time to start acting is now. Try these strategies to mitigate the effect of poor leadership:
Invest in leadership training
Leadership development programmes cover soft skills, including effective communication, conflict resolution, and emotional intelligence. They can be in the form of formal training and workshops, conferences, mentoring, secondments, work shadowing, or on-the-job feedback sessions.
Offer real-time feedback opportunities
Outdated, once-a-year performance reviews should be replaced with continuous tools such as surveys and 360-degree feedback. This enables the business to identify and address bad management before it becomes a habit and affects the entire team.
Prioritise staff wellbeing
An open workplace culture that values positive mental health can help to offset poor management practices. This can be achieved in many ways, including providing mental health resources, offering flexible working, carefully considering innovative benefit packages, and running stress management workshops.
Re-evaluate promotion criteria
Consider how the business sets the criteria for promotion into leadership roles, ensuring there is a good balance between technical skills and leadership, interpersonal, and team-building skills. Promoting staff who are equipped to lead effectively will benefit the business and its employees in the long run.
How staff can deal with bad managers
We’ve discussed some steps the business can take to deal with bad managers, but what steps can employees take? These ideas will help them navigate the situation:
- Ask for clarification: Speak directly to the manager to understand their specific expectations for tasks and projects, and to request regular feedback.
- Build a support network: Strong relationships with colleagues can help to alleviate the effects of poor management.
- Seek help within the business: The HR department should be able to provide advice, guidance, and resources – mentors may be able to help too.
- Create a Plan B: If a toxic workplace becomes unbearable or management is making life a misery, it may be time to find a healthier workplace.
Final thoughts on bad managers
Recent reports and statistics show that poor management performance doesn’t just affect individual employees – it’s an organisational crisis. The ripple effect of bad leadership – from financial losses to employee attrition – simply can’t be ignored. Investing in better management should be a business-critical priority. Organisations that prioritise strong leadership are more successful in terms of employee loyalty and productivity and, importantly, in terms of finance, innovation, and growth.
In this article, we’ve learnt that:
- A significant number of Singaporean employees are burnt out and disengaged as a result of poor leadership practices.
- Bad management can lead to anxiety, depression, and physical health issues among staff, with a resulting increase in sick days and attrition.
- High employee turnover resulting from bad management represents a significant cost to the business.
- Bad managers contribute to brand damage, reduced innovation, and reduced diversity within the team.
- Businesses can mitigate the effects of bad management with leadership training, regular feedback opportunities, and a focus on employee well-being.
- Employees can mitigate the effects of bad management by clarifying expectations, building a support network, and accessing HR resources.
At Careerminds, we protect your employer brand and support the wellbeing of your employees by providing career transition services to those affected by retrenchment. Click below to speak to one of our experts and find out if we can help your business.
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