Cost of ineffective management tops £19billion

10 November 2011

Three-quarters of workers waste almost two hours a week due to management errors

Ineffective management could be costing UK businesses over £19billion per year in lost working hours, according to a new survey published today by the Chartered Management Institute (CMI).

The study of 2000 employees across the UK reveals that three quarters (75 per cent) of workers waste almost two hours out of their working week due to inefficient managers. Worst management practices responsible for time lost include unclear communication (33 per cent); lack of support (33 per cent); micro-management (26 per cent); and lack of direction (25 per cent).

Taking the average hours wasted in a week (1.51) across the 48 weeks a year that the majority of workers work, this equates to a loss of £900 per employee per year - and a total loss to UK plc of £19.3billion, calculated at a median value rate.

Responding to the survey's findings, Christopher Kinsella, acting chief executive of CMI, said:

"This survey highlights some disappointing - but not necessarily surprising - numbers. With only one in five UK managers holding a professional management qualification and many organisations not properly investing in management training, it's not surprising that some managers are making mistakes in how they work. Yet we are in one of the hardest economic climates we've faced in some time, and business bosses need to understand the financial impacts of not having properly trained and qualified managers. Improving the skills of the management workforce is absolutely key in terms of individual business success, in terms of delivering effective public services and in terms of helping the UK deliver on a world stage."

Alarmingly, the research also highlights that 13% of those surveyed have witnessed managers exhibiting discriminatory behaviour towards employees based on gender, race, age or sexual orientation and almost one third (27%) have witnessed managers bullying or harassing their employees.

Christopher Kinsella continued: "As a body committed to the professionalization of UK managers, we were particularly concerned by these figures. No worker should ever feel threatened or discriminated against at their workplace. If managers are not signed up to a set of professional standards, such as CMI's Code of Conduct, it is vital that they understand company policy on what is, and is not, acceptable behaviour - and are seen as champions of that policy, rather than the people breaking it."

The survey results coincide with the launch of a CMI integrated marketing campaign to promote good management practices, which includes a free five day trial for managers looking to explore the wealth of information and resources available through CMI membership. For more information, visit www.managers.org.uk

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