It’s one of the most quoted truths in the business world: People don’t leave jobs — they leave managers.
And yet, despite most of us knowing this, too many businesses still overlook the impact that poor management can have on team morale, engagement, and retention. Whether you're running a team of ten or a workforce of hundreds, the question isn't just "Do I have the right people on the bus?" It's also: "Do I have the right people driving it?"
Management skills aren’t always natural
One of the biggest myths in the workplace is that great employees naturally make great managers. In reality, leadership requires a completely different skill set and it doesn’t always come naturally and training is rarely provided in advance of taking on a more senior role.
In fact, only 20% of managers feel they are effectively trained to lead others, according to research by the Society for Human Resource Management (SHRM). Many new (and even experienced) managers report feeling underprepared for handling team dynamics, performance issues, and difficult conversations - the exact things they’re expected to do every day.
Unfortunately, many businesses promote based on performance, not leadership potential, then fail to equip these new managers with the tools and training to succeed. The result? A stressed-out manager, a disengaged team, and a culture slowly slipping in the wrong direction.
Middle managers are vital
While senior leaders shape strategy and frontline teams do the doing, it’s middle managers who tie it all together. They translate business goals into team action, and they play a critical role in culture, accountability, and performance.
That’s why it's alarming that so many are under-supported. When middle managers thrive, they lead teams that are more likely to stay and that are more productive, according to research. When managers are not up to the job, high performers within a team notice and they become a flight risk meaning a significant amount of knowhow and experience can walk out of your business and possibly head straight off to your competitors.
Difficult conversations
One of the biggest areas where managers struggle is having tough conversations. Whether it’s addressing toxic behaviour, low productivity, or interpersonal conflict, many managers simply aren’t confident about stepping in early and managing a situation constructively.
This silence can be costly. According to Scale Suite, employee turnover costs Australian SMEs around $47 billion annually. And it’s not just about recruitment costs as turnover leads to a 15–20% dip in remaining team productivity, while lost employees often take up to 18 months of institutional knowledge with them.
Are you setting your managers up for success?
It’s worth taking a moment to reflect on how well your managers are supported. Have they been equipped with the core leadership skills they need such as communication, conflict resolution, and team development? Do they feel confident managing performance and behaviour, or are they left to figure it out on their own?
If your high-performing employees are leaving your business, it’s worth asking whether gaps in leadership capability might be playing a role. Too often, great team members leave not because of the work, but because of inconsistent - or absent - management.
The good news? Many Australian businesses are starting to act. Recent data shows that 78% of organisations have increased their training budgets, and it’s a wise decision given every $1 invested in training returns $4.70 in productivity gains (Deloittes).
Even Gen Z still likes a chat
Here’s a surprising insight: even digital-native Gen Z employees prefer face-to-face communication over email or messaging platforms (UKG research) – I know, shocking given they seem to be permanently attached to their digital devices.
What it highlights though is that managers need to be present, proactive, and confident in how they lead conversations, and not hiding behind a screen or waiting for someone else to step in or poor behaviour to magically stop. The ability to deliver on the spot, constructive feedback or taking the time to listen are very powerful management skills that need to be developed as they often don’t come naturally.
Is being a manager a poisoned chalice?
Here’s another curveball: not everyone wants to manage - especially the next generation of workers.
A report found that 52% of Gen Z professionals don’t want to move into middle management roles. They perceive these roles as high-stress, under-supported, and unrewarding, and without changes in culture and better support, many simply opt out of the leadership pipeline.
In the Australian context, that’s a huge deal. Gen Z now makes up over 50% of the workforce, surpassing Boomers and Gen X since 2019. Yet only 14% of young Australians are interested in management roles, favouring flexibility, wellbeing, and work-life balance over hierarchy or traditional career ladders.
What this means is that there needs to be a focus on making management pathways more attractive so that we entice and encourage future leaders who have the training and support to be effective and to feel rewarded.
Leadership is a skill that can be learned
If you're looking to future-proof your business, start treating leadership like a core skill set — not just a job title. Build training into career pathways. Provide ongoing feedback and coaching. Encourage open conversations about what your managers need to succeed - and then deliver it.
Whether it’s training, coaching, or help navigating tough conversations, we support businesses just like yours to lift leadership across the board. Let’s chat about how HR Staff n’ Stuff can help.