Why New Manager Training Reduces Staff Turnover and Boosts ROI from Team Performance
Stepping into a management role is one of the biggest transitions in a professional career. Yet many organisations underestimate how critical the first few months of leadership are — not just for the individual manager, but for the team they lead.
Research consistently shows that managers play a defining role in employee engagement and retention. Poorly prepared new managers can quickly become a key driver of staff turnover, low morale, and reduced productivity.
The Hidden Cost of Poor Management
Studies by Gallup and Deloitte highlight that up to 70% of the variance in employee engagement is linked directly to managers. When managers lack confidence in leading people, the impact is felt quickly:
High staff turnover, leading to costly recruitment and training cycles.
Disengaged employees who underperform or “quiet quit.”
Teams struggling with unclear expectations and low morale.
Replacing an employee can cost anywhere between 30% and 200% of their annual salary depending on their role. Investing in new manager training is often far cheaper than losing even one key team member.
How New Manager Training Improves Retention
Training gives first-time leaders the skills and confidence they need to manage people effectively. Specifically, it helps them to:
Communicate clearly so team members understand expectations.
Delegate effectively, freeing themselves from overload while empowering others.
Handle performance conversations constructively, preventing small issues from escalating.
Build trust and motivation, which keeps staff engaged and loyal.
When employees feel supported and developed by their manager, they are far more likely to stay — and perform at their best.
Boosting Team Performance and Culture
Good managers do more than prevent turnover; they actively improve results. Trained managers create:
Stronger teamwork through clear direction and shared accountability.
Higher productivity as tasks are delegated effectively and resources are used wisely.
Positive culture where employees feel recognised, valued, and motivated.
In short, investing in manager capability is a direct investment in business performance.
The ROI of New Manager Training
Let’s put this into perspective:
Cost of replacing a staff member: tens of thousands of dollars.
Cost of disengagement: lost productivity, absenteeism, and turnover risk.
Cost of training: a fraction of the above.
The return on investment is clear. A small upfront investment in structured training prevents much larger financial and cultural losses down the track.
Equip Your New Leaders for Success
Frontline Management Institute’s New Manager Training course is designed to give first-time managers the essential skills to lead with confidence, reduce staff turnover, and build strong, high-performing teams.
We deliver the program:
Face-to-face at your workplace.
Live online through facilitator-led video sessions.
Tailored to your organisation’s needs and culture.
👉 Learn more & book the New Manager Training course →
The Frontline Management Institute offers a range of short training courses, training programs and coaching to help Leaders and Managers improve their performance at work. If you would like to know more, please contact FMI, we will be happy to help.
