The Real Cost of Poor Leadership in Workplaces

The Real Cost of Poor Leadership in Workplaces


Why People Really Leave

Over the years, I’ve asked plenty of people why they left their jobs. Very few said money. Most said something like, “I just couldn’t deal with my boss anymore.”

When someone leaves, it costs more than just a hiring fee. You lose trust. You lose relationships with clients. You lose that sense of stability that holds a team together. And when one person goes, others often start wondering if they should too.

The Ideas That Never Surface

Here’s something you’ll never see on a balance sheet: the ideas that never get spoken. I once heard someone say, “I knew how to fix it, but why bother? The boss won’t listen.” That’s not laziness. That’s self-protection.

Multiply that across a whole team, and innovation doesn’t disappear with a bang. It disappears with silence.

Managers’ Mental Health Matters Too

It’s easy to point the finger at “bad bosses.” But often, managers are struggling themselves. They’re overloaded, under pressure, and short on support. And when a manager is running on empty, the team feels it.

Managers’ mental health doesn’t get talked about nearly enough — but it’s central to how a workplace runs. A burnt-out leader can’t create a thriving team. They pass their stress down the line, usually without even knowing it.

Supporting managers isn’t just the kind thing to do. It’s the practical way to stop the cycle.

The Real Cost and the Alternative

The hidden price of bad leadership isn’t just financial. It’s the flat look on people’s faces at 3 p.m. It’s the good staff you lose. It’s the bright spark that could have driven innovation, but never got a chance.

The good news? When leaders are trained, supported, and healthy themselves, everything changes. Teams don’t just hit targets — they want to be there. They bring energy. They contribute ideas. They grow.

That’s why at the Workplace Mental Health Institute, we focus on both sides: building leaders’ skills and looking after their wellbeing. Mental health programs like Mental Health Essentials for Managers, Leadership Resilience, and Managing Psychosocial Safety give Australian leaders the tools to step up without burning out.

Because at the end of the day, leadership isn’t just about titles or KPIs. It’s about how people feel on the other side of your decisions.



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