Why Do So Many Organizations Overlook Management Skills?
We all know how much managers matter. Gallup says they drive 70% of employee engagement. Seventy percent. That’s enormous.
Research by Gallup also shows that, compared to engaged teams, disengaged teams have:
Up to 59% higher turnover
21% lower profitability
17% lower productivity
And more safety incidents, absenteeism, shrinkage, and unhappy customers
When management isn’t working, the ripple effects show up everywhere: disengaged employees, high turnover, broken trust, culture issues, poor communication, and a whole lot of organizational drag.
And yet... time and again, organizations underinvest in management development. Or worse, they double down on approaches that don’t work.
Why?
Here are four reasons we see all the time:
1. The Peter Principle Lives On
We see it constantly. You’re a great accountant, nurse, surveyor — so you get promoted to manage the accountants, nurses, or surveyors.
It’s a common (but false) intuition: that being great at a specific skilled job means you’ll also be great at managing people who do that job.
But management is a different skillset entirely. Feedback. Delegation. Conflict. Accountability. Trust-building. Navigating team dynamics. Setting expectations. Coaching others while still doing your own work.
It’s a job no one really trains you for. And most organizations are slow to recognize that.
2. There’s Never a “Right Time”
We all know the difference between urgent and important vs. important but not urgent. Guess which one always wins?
Management development gets pushed aside again and again:
“Let’s just get through this big project.”
“Our managers are already swamped.”
“We’ll revisit this next quarter.”
Meanwhile, the slow-burn problems are quietly stacking up — until they become urgent. Disengagement. Complaints. Resentment. People leaving.
By then, it’s already costing you.
3. We Prioritize What’s Measurable
It’s easy to track financials, output, and operational performance. It’s harder to quantify things like morale, engagement, or culture. So we default to focusing on the stuff with clean data. It feels safer.
But just because something’s harder to measure doesn’t make it less important. In fact, it’s usually the opposite.
And yes — the ROI of management development can be measured. It just takes time, creativity, and a willingness to see the whole picture.
4. Most Trainings Don’t Stick
You’ve probably experienced this: a leadership program filled with inspiring lessons, big ideas, and “wouldn’t it be nice” conversations.
People leave energized. Then a few months later? No one’s talking about it. Nothing’s changed.
It’s flavor of the year. And it leaves a bad taste in people’s mouths.
Real development means giving managers practical tools — approaches they can break down, practice, and use day-to-day. And it means setting up sustainable systems for long-term reinforcement.
Otherwise, the investment fades fast.
At Nash Consulting, this is the work we care most about: equipping managers with the real-world skills, habits, and support they need to lead well —consistently, sustainably, and with actual impact.
What would you add? Why do you think organizations keep underinvesting in management skills, even when the costs are so high?