Weak leadership is costing British businesses £4.1bn every year in staff turnover alone.
Research from Randstad on over 10,000 British workers shows weak leadership to be pushing people out of their organisations, costing businesses a significant amount. It turns out a weak leadership structure is the reason 25% of workers leave their job.
An estimate from the CIPD says the cost of replacing an employee is £4,800. Taking into account that 19% of British employees change job every year – 15% voluntarily and 4% made redundant – this soon mounts up to an excessive and hefty cost on the back of the employer.
Last year UK employment went up to 30.9m – good news, yes – but when you consider how much a 25% turnover of 30.9m actually is, the real cost of weak leadership begins to rear its ugly head.
So why are employees leaving their jobs?
The CEO of Randstad UK, Mark Bull, suggests the fundamental problem lies within the organisations:
- Bosses just aren’t delivering
- Management culture needs to be in line with employee culture
- Company values are clear, demonstrated or promoted by management
- Weak leadership.
Experienced workers want strong leadership, and when this is not received they will look elsewhere. 40% of 45-65 year olds see weak leadership as one of the top important factors to job satisfaction, and considering these employees are more likely to hold professional and managerial roles, the cost to employers is even more, costing approximately £7,000 to replace one employee.
“Younger workers are so determined to make it to the top right now that they believe they need to move on to move up. As a result, leaders invest a lot of time in them. This may well have caused some bosses to neglect the ‘older’ generation in favour of investing time, training and attention in the young and hungry to keep them on board,” adds Bull.