Why manager training is the key to business success and employee retention

Key Takeaways

• 82% of managers surveyed by the Chartered Management Institute (CMI) report they have not received formal training for their role. They are often promoted based on technical skill or longevity, not leadership ability, creating a massive manager skill gap.
• The old adage that "people leave managers, not companies" is validated by data, with high 'My Manager' scores directly correlating to lower voluntary turnover. Untrained managers are a primary driver of employee attrition.
• While maintaining a supportive personal connection, data shows managers are struggling to coach for personal growth and foster team cohesion.
• Managers are failing to effectively communicate company strategy and leadership vision, reflected in a significant drop in the 'Leadership' factor score, leading to only 27% of employees perceiving their manager as highly effective.
• Elevate provides the targeted, skill-based training in coaching, team dynamics, and strategic communication to close these critical gaps, turning your current managers into effective, retention-driving leaders.

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Have you ever been thrust into a position of authority without the faintest idea of what you’re supposed to do?

Perhaps you’ve been asked to plan and present on a new project for the first time, and your PowerPoint skills are limited to a Year 3 class on using WordArt.

Or maybe it’s the moment you first held your screaming, beetroot-red child and realised that you are now completely responsible for this tiny human. No one has told you what to do next. You may have a vague idea from seeing other people with their kids, or maybe you’ve read a couple of books with conflicting advice, but it’s at this moment that you realise you don’t truly know what you are doing, that no one has prepared you for this responsibility.

According to a recent report by the Chartered Management Institute (CMI), that’s exactly how 82% of managers feel.

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The manager skill gap

Let’s think about that for a second: four out of five managers in the workplace have not received any formal training on how to do their role.

Imagine if other positions were equally disadvantaged by this lack of coaching. Imagine if only one in five doctors or engineers had received the education needed to do their jobs.

But why is there such a large gap in managers who receive training and those that don’t?

The greatest contributor to this phenomenon is promotion based purely on their technical proficiency or their longevity at the business. This is otherwise known as the ‘Accidental Manager’. These employees, while experts in their field, lack the training in essential skills such as coaching, constructive feedback, conflict resolution, and strategic communication, leaving them ill-equipped to handle the complex, people-focused demands of a management role.

The knock-on effect?... Plummeting employee retention rates.

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A cost and retention crisis

The cost of replacing an employee is approximately £25,000 per person, rising to between £40,000 - £100,000 for more specialist or senior positions.

Furthermore, according to Best Companies data, the average number of 'Voluntary Leavers' has increased by over 3% in the past year. This isn't just a cost crisis; it's a retention crisis, fundamentally rooted in the everyday employee experience.

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Manager training and employee retention

The old adage that "people leave managers, not companies" is continually validated by data. Managerial effectiveness is key to retention.

Analysis of voluntary turnover rates by sector against 'My Manager' scores reveals a direct, actionable link:

• Generally, the better you score in 'My Manager' sentiment, the better your retention. Sectors with the highest manager scores typically see the lowest voluntary turnover.
• While there are exceptions (e.g. Recruitment has both the second-highest 'My Manager' score and 'Voluntary Leavers') the overall pattern is undeniable. For instance, Leisure & Hospitality, Food & Drink, and Retail make up three of the four lowest 'My Manager' scores and are also in the bottom five for Voluntary Leavers.
• On the other hand, the Technology sector has the highest average 'My Manager' score and the second lowest percentage of 'Voluntary Leavers'.

What is it about managers that is causing employees to look elsewhere?

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Where managers are struggling

Data from employees across all organisations accredited by Best Companies, gathered through the employee engagement survey, reveals a critical paradox. Employees generally maintain a strong personal connection with their immediate managers, but managers are failing to communicate their broader strategic and leadership responsibilities.

• 'My Manager' factor score = 0.03% increase: The 'My Manager' factor score has remained stable. This indicates managers are succeeding in the role of a supportive colleague or 'friend.'‍
• 'My Team' factor score = -0.1% decrease (-2.2%^*): Managers are struggling to unify their teams, leading to a decline in team cohesion. This suggests a lack of skill in facilitating collaboration and managing team dynamics.‍
• 'Personal Growth' factor score = -0.53% decrease (-2.99%^*): Managers are not effectively acting as coaches or mentors, resulting in a declining perception of personal growth opportunities. This is a significant drop-off in a key area for career-minded employees.‍
• 'Leadership' factor score = -0.8% decrease (-3.99%^*): Managers are failing to bridge the communication gap between executive leadership and front-line teams.

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A lack of managerial effectiveness

Our data aligns with external research confirming a widespread, systemic problem with managerial effectiveness.

• Only 27% of employees felt their manager was highly effective.
• Furthermore, just over a quarter (27%) of organisations reported that most (more than three-quarters) of their managers had received training in managing people.

Investing in skill-based manager training

The solution to the managerial and retention crisis is targeted, formal training that transforms the "Accidental Manager" into an intentional leader.

Training must directly address the identified internal and external gaps:

• Coaching and growth mindset: Training managers to become coaches who actively identify and support personal growth opportunities, shifting the focus from performance reviews to continuous development.
• Team dynamics and cohesion: Skills in facilitating collaboration, managing diverse personalities, and proactively building a cohesive, unified team culture.
• Strategic communication: Training on effectively interpreting and delivering leadership messages and communicating team feedback, which is crucial for bridging the communication gap.
• Performance management: Moving from annual reviews to ongoing, constructive feedback loops that encourage development rather than simply critique past performance.

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Manager training is a strategic business investment

The evidence is clear: untrained managers cause measurable gaps in team cohesion and personal growth, are widely perceived as ineffective by employees, and are a primary driver of voluntary turnover.

Manager training is the most direct and effective strategic investment a company can make to transform its middle layer into a powerful engine for both sustained business success and long-term employee retention.

The cost of a disengaged, high-turnover workforce is far greater than the investment in your managers. It's time to stop promoting by accident and start training with intention. Elevate is the proven manager coaching tool designed to transform your "Accidental Managers" into intentional, retention-driving leaders. Equip your middle layer with the skills they need to lead, coach, and communicate effectively. Explore how Elevate can solve your retention crisis and drive sustained business success today.

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_{*The average decrease in factor scores seen only by organisations who also saw a decrease in their BCI score.}