Is manager training worth it?
A financial services company was growing rapidly and the executive team had ambitious plans. The company was quickly hiring managers who were smart and eager with whip-sharp quantitative skills.
Problem was, these managers had no idea how to translate their quantitative skills into managerial skills. As a result, the managers resorted to micro-managing their team or leaving them in the dark — or some chaotic combination of the two that left everyone confused.
The CEO realized he needed to do something. He recognized that if he didn’t proactively address this glaring gap in leadership skills, there was no way the company could maintain its fast trajectory.
A pair of manager trainers entered the picture. Rolling up their sleeves, they led all of the managers through a training program that equipped them with hands-on tools and critical knowledge. The managers learned how to set team goals, provide feedback, delegate tasks, run meetings, resolve conflict, among other essential leadership skills.
The impact was dramatic. In spite of the high-stress environment, the managers gained the confidence to lead their teams with savvy and style. The company gained efficiencies, cross-departmental collaborations, and groundbreaking innovations.
18 months later the company sold for a handsome profit.
Sound too good to be true? If you think so, then you’re thinking the same thing that 56% of corporate leadership thinks: that manager training isn’t worth the time or the money.
That’s right. 56% of managers receive no training whatsoever.
The reality is that many high-performing employees are promoted to manager positions due to technical skills. But then they’re at sea in terms of knowing how to motivate employees and guide teams. Without training, managers are left to figure it out on their own — usually in a reactive and unfocused way.
Here are the top three reasons that leaving manager training to chance is not a good idea.
Risks of not training managers include…
HIGHER TURNOVER
Studies show that employees don’t leave bad jobs — they leave bad managers. According to Gallup, 70% of an employee’s work experience is shaped by their relationship with their manager. Untrained managers are simply unequipped to retain top talent and can often create a workforce “bleed” that can be incredibly disruptive.
TOXIC CULTURE
Managers who set vague expectations, provide muddled feedback, and avoid hard conversations unwittingly create toxic cultures. By definition, toxic cultures are ones where negativity, fear, and dysfunction rule the day.
Toxic cultures lead to missed deadlines and lower-quality work. Then a vicious cycle kicks in. The manager feels compelled to provide more oversight — which further erodes the relationship with their employees and then compounds the problem.
WASTED MONEY
Untrained managers are more likely to be out of compliance, leading to costly lawsuits and disputes. Without the skills to head off problems at the pass— such as brewing workplace conflicts — untrained managers can engender a host of expensive problems. A study conducted by the Myers-Briggs Company determined that $359B a year is squandered due to unresolved conflict in the workplace.
The truth is that manager training is not a nice-to-have. It’s a need-to-have.
The bottom line is that effective managers are usually not born that way. They are trained that way.
For the 44% of companies who DO invest in manager training, here are the benefits they gain.
Benefits of training managers include…
MORE ENGAGEMENT
A 2025 study from Gallup revealed a stark difference in engagement rates of managers who are trained versus managers who are not. Companies that train their managers enjoy a 79% manager engagement rate. (Obvious result: engaged managers are more likely to engage teams, which leads to many positive outcomes.) But companies that DON’T invest in manager training experience a meager 22% manager engagement level. Meaning that 78% of their managers are not doing their jobs.
BETTER TEAMWORK
Today’s volatile marketplace demands tighter team dynamics. Mergers, acquisitions, new technologies, unexpected tariffs, upsizing, downsizing — the list of potential disruptors goes on.
Trained managers know how to create a great team environment — enabling their teams to “weather the storms.” Trained managers set team goals that support overall company goals. They nurture team morale. They grease the wheels of healthy communications. They create consistent processes and systems.
HIGHER PROFITS
Trained managers are more likely to lay the groundwork for high-performing teams. Their teams are better problem-solvers. They’re more efficient. And they tend to actually enjoy working with each other.
In fact, a survey of 752 leadership experts conducted by New Level Work showed an average ROI of $7 back for every $1 invested in leadership development.
So if you’re a leader of a company with bullish plans for growth, make the investment that will turbo charge your strategic plan. Pay the money. Take the time. And TRAIN your managers.