HR

Why Lack Of Investment In Your Managers Is Damaging Your Profits

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Giving constructive criticism is not easy. Most of us don’t like having difficult conversations. It’s awkward and uncomfortable. Much easier to stick to positive feedback which feels good for everyone, or where that isn’t possible, say nothing at all and let the issue get better by itself, right? The problem is, it doesn’t get better.

You’re wasting time by not doing anything

Example: You’re sat at your desk one Friday afternoon and you see an email pop up that’s been sent to a client, from a colleague, copying you in. There’s nothing fundamentally wrong with the content of the email, but the style is much more formal than expected, and what you feel your company stands for. There’s no warmth, empathy or compassion, no ‘Hi Robert, I hope you’re well” or “how was your holiday?” Just bang, bang, bang. Points made, job done, “regards, Paul”.

The colleague concerned can be a very tricky character, you’re tired from a long week and you convince yourself it’ll be fine. The client might like that style of communication anyway? The week after, you see the same thing happen. Again, content okay, but the style and feel well off the mark. When you get home, you mention it to your partner and ask their opinion; “would I be harsh if I addressed it?” “What would you do?” You sleep on it for a further week, Google ‘handling difficult conversations’ and read some guidance.

But business moves on, you get busy and forget to deal with it.    

Have you ever sat back and thought about this lack of management and indecisiveness is actually impacting your business? The impact is multifaceted; the issue hasn’t been dealt with and clients continue to get a service which is not representative of the company values. The colleague still thinks nothing’s wrong, and – as a manager – you’ve wasted time by not acting straight away.

Now work out the cost

Apply a notional cost to the manager’s time for the example above. Based on time wasted by the manager being indecisive and procrastinating, let’s say a figure of £500. Not unreasonable, I would suggest.

You have 5 managers in your business and a small incident like this happens once a month for each manager where there is inaction/indecisiveness through lack of confidence in their management skills. £500 x 12 x 5 = £30,000 worth of lost time over the period of a year.

So train your managers. It’s as simple and obvious as that! You cannot expect individuals to automatically be brilliant managers without upskilling them on the essential skills of management; in this case, how to handle difficult conversations and give feedback.

Lack of investment in your people will impact your profitability; there’s no doubt about it. Just because it’s not immediately obvious, doesn’t mean it’s not there.

For more information or support on how to upskill your managers, contact katie@howarths-uk.com or call 01274 864999.

So, what is the problem and how  do you address it? As I’ve alluded to above, the problem often stems from managers lacking confidence in managing people, including having those difficult conversations. You’ve probably come across  people  promoted into management because they are good ‘on the tools’ and who then are expected to be brilliant managers but don’t live up to expectations. This is often flawed thinking; just because someone is good ‘on the tools’ doesn’t mean they’re a good at managing a team of people.

Training is a financial no-brainer

So train your managers. It’s as simple and obvious as that! You really  cannot expect individuals to automatically be brilliant managers without upskilling them on the essential skills of management; in this case, how to handle difficult conversations and give feedback.

‘Yes but, training is a luxury, we don’t have a budget for it’, I hear you say! I’ll refer you  back to the above example of the hidden cost to your business of your managers not having confidence to manage. Work it out based on the people in your business and then compare that cost with the cost of a HR training course. It’s a no-brainer.

Lack of investment in your people will impact your profitability; there’s no doubt about it. Just because it’s not immediately obvious, doesn’t mean it’s not there.

Gavin Howarth, Managing Director of Howarths.