What is the real cost of not investing in new leaders? And what you can do about it.
The real cost of not investing in new leaders is a decrease in organisational capability, effectiveness and ultimately its own success, in both the short term and long term. It is important for organisations to invest in the development of their new leaders (and continue to invest in its experienced leaders), in the future best interests of the organisation itself.
The process of becoming a leader is often reflected on as one of the most arduous and stressful in a person’s career. It is also a high degree of resolve and commitment to continuous learning, personal development and at times uncomfortable professional growth.
The changing needs in a dynamic business world
Senior and executive leaders are shaped (for the long term) by their experiences as a first-time manager. The twist I’ve discovered over time (as I’m sure you have too) is that the process in which a leader passed through his or her own rite of passage as first-time manager, say in either 1989 or 1998 or 2005 or even 2016 has been different. And so it is today. The resources, and these include experience, time, coaching or mentoring as well as training will change in line with emerging organisational trends, social constructs and as the needs of a business change dynamically.
Many of the new skills as well as the amplification of their own strengths and talents, don’t come naturally to new leaders. Ultimately, it’s the responsibility of the organisation to ensure they invest the necessary resources and expertise to ensure that new leaders making this transition are feeling confident, supported and empowered to do their job effectively. Oftentimes this is not the case.
A new leader who may be feeling temporarily out of their depth in the early stages of their transition can be reluctant to speak to their own line manager or seek counsel from another within the business for fear of being judged as incompetent and losing credibility in their eyes. This impacts their already wavering sense of self-confidence, often with reduced performance and productivity as they adjust, coupled with internal feelings of conflict and cognitive dissonance.
A leader wears multiple hats
When you add to this the multitude of hats that are worn as a leader – which includes role model, confidante, cheer squad, disciplinarian, motivator, time keeper, subject matter expert, negotiator and goal setter, just to name a few; the ideals of the role, and what has in reality been taken on and is indeed expected by those observing the new leader, can be very different from what is envisioned by him or her. An experienced leader has learned these habits and skills over time, a new leader is only just getting started and only just figuring it all out. Like anything – it will take time.
Setting new leaders up for success is still not a priority
In preparation for writing this blog, I did some research (forever the nerd) and the results were eye opening, although not really that surprising. According to an article I read in Forbes Magazine, 87% of managers said they were not prepared for and needed more training as they transitioned into a first-time manager role.
Further research offered up even more data that illustrates clearly just how difficult the process of transition can be. And I’m talking about the mental and emotional toll. The days of sink or swim, should be well and truly behind us, but looking at stats like these, I don’t think they are.
- 59% of new managers don’t feel that they are supported in their new role and are unsure how to or who to ask for help or guidance.
- 63% do not feel effective after 6 months in their role and 50% still feel ineffective after 12 months in the role. They are desperate for feedback and at the same time are scared to know where they may be falling short and not meeting expectations. There is most likely little or no psychological safety.
- Managing other adults who are also experienced and respected in their organisations and fields of expertise comes with unique set of highs and lows; and more often than not, it’s this rollercoaster rather than the technical expectations, where new managers come to a screaming, emotionally exhausted halt.
At the crux of all this is the ability to effectively lead yourself and know with confidence what you are capable of, what you are not capable of and how to build effective relationships to support your growth and enable you to influence the outcomes that you’re working towards.
The hidden costs of not investing in new leaders can be significant and far-reaching. Some of these include:
High turn-over
When new leaders are not given the support and resources they need to succeed, they become discouraged and leave the organisation. This can lead to high turn-over and a constant and costly cycle of replacements. This is expensive not only financially – the cultural cost across the business is also expensive.
Manager performance accounts for 70% of employee engagement scores. Management, regardless of seniority and experience – is the employee experience.When you don’t invest in your new leaders as they transition – you’re not only impacting them directly, you’re affecting everyone else they come into contact with as a result of their performance and internal struggles.
When there is a lack of investment, and this isn’t just about money, it’s highlighting the need for a holistic approach to preparation for management, organisations are essentially saying that their employees are not important. I know it’s blunt, but it’s the truth.
Deceased morale
When new leaders are not given the support and training they need to perform confidently and effectively, it can also lead to decreased morale among all employees. Disengaged employees leads to a toxic work environment and reduces motivation, trust and performance among employees. Most employees are disengaged when their managers are not visible or available to support them. If you have a new leader on your hands that is struggling to show up while they are keeping all the plates spinning, this will be reflected in not only your engagement scores but also your reputation both internally and externally. As Sir Richard Branson is famous for saying – if you want to improve your customer service, look after your employees, they will then be more invested in taking care of your customers.
Actively disengaged employees are costing the Australian economy more than $2 billion a year.
Missed opportunities
When new leaders are not given the opportunity to grow and develop, they miss out on opportunities to advance their careers and make a positive impact on the organisation.
When an organisation invests in their leaders regardless of pay grade and level of experience, they are shouting across their industry how much they value their business, their team and their customers. This does result in improved performance and loyalty within the business, attracting the right talent when it’s needed and importantly increasing profitability.
The impact of a fish on workplace culture
A positive workplace culture starts with the decisions and consistent actions from up above (CEO, Board) and an acknowledgement that for the business to be successful in a competitive global environment they need a consistent, positive and healthy workplace culture. And that starts with investing the necessary resources into building a strong and engaged team of managers. As we used to say in the hospitality industry, ‘the fish always stinks from the head down’.
Leadership is a collection of skills, behaviours, experiences – it’s not a talent or a gift. It’s not a birth right and definitely not something that ‘you were born to do’.Good, even great leadership is an iterative process of growth, support and consolidation – just like an exceptional and profitable business.Invest in your managers, all of them, but especially investing in your new managers and the return will felt in your culture and seen in your balance sheet.
Twice a year, every year, the doors to Rising Leader are opened. They are open now until March 27.Rising Leading is a customised small group training and coaching program designed especially for new first-time managers and aspiring female leaders. It’s holistic personal and professional approach was created to develop each participants’ personalised leadership style and support wellbeing; Rising Leader’s singular mission is to support women to thrive in their everyday lives, curate a career they love; and show up confidently as authentic leaders making a difference.The course has been designed with evidence-based content, expert training and coaching – segmented into two halves of one whole: 12 weeks of group personal development and training followed by 12 weeks of small group leadership coaching; 6 months in total.
For more information or to register your interest – simply click here.
Liz Ellis is a certified Leadership and High-Performance Coach, Master Practitioner of Neurolinguistic Programming, Conscious Hypnosis and Timeline Therapy. She is the founder and Principal Coach at Empowered Leader. When she’s not coaching, she is outdoors either doing something fit or enjoying a glass of wine with good friends.