How Bad Managers Affect Your Team and Ways to Address It

Bad managers are more than just a workplace nuisance—they’re a critical issue for organizations worldwide. According to Gallup’s 2024 State of the Global Workplace Report, low employee engagement cost the global economy $8.8 trillion annually, equivalent to 9 percent of global GDP. The effects of poor leadership also extend beyond financial losses, significantly impacting mental health and workplace culture.

This article explores Gallup’s findings and other recent research to highlight how bad managers affect employees and organizations, why they often remain in their roles despite this, and what strategies you can implement to mitigate their impact.

Gallup’s data reveals that “the manager-employee relationship is the locus of employee engagement and a central factor in thriving in life overall.” Here’s how the Gallup report shows that bad managers can contribute to workplace stress and disengagement.

The 2024 Gallup report found that 41 percent of employees globally experience high daily stress at work, a higher rate than ever before. It also mentions that experiencing “a lot of stress” is reported approximately 30 percent more frequently by employees working under bad management than by the unemployed. Bad managers can exacerbate this employee stress through:

• Unclear expectations: Employees frequently cite the lack of clarity in their roles as a significant stressor. Bad managers fail to provide sufficient guidance, leaving employees uncertain about their priorities or goals.
• Micromanagement: Overbearing bosses strip employees of their autonomy, leading to frustration and decreased morale.
• Unreasonable workloads: Unrealistic demands that bad managers set without adequate support can result in employee burnout.

Globally, only 23 percent of employees are actively engaged in their work. Disengagement often stems from poor management, with bad managers failing to recognize employee accomplishments, encourage career development, or create a sense of purpose. The phenomenon of “quiet quitting”—where employees do the bare minimum to meet job requirements—has risen sharply due to these issues.

Bad managers significantly affect employee mental health. Gallup’s research reveals that employees with low engagement are more likely to experience:

• Feelings of loneliness and isolation.
• Increased anxiety and depression symptoms.
• Physical health issues tied to chronic stress, such as insomnia or high blood pressure.

Employees with bad managers don’t just “quiet quit”; they leave. Gallup estimates that 70 percent of the variance in team engagement is attributable to managers. Consequently, organizations with poor leadership also experience higher turnover rates, which adds significant financial cost. Replacing an employee costs an estimated one to two times their annual salary, factoring in recruitment, onboarding, and lost productivity.

Here are two additional real-world examples that illustrate how poor leadership derails organizational goals:

1. In a 2023 survey by McKinsey, tech employees ranked “toxic culture,” often stemming from bad managers, as their top reason for quitting.
2. Research from the American Medical Association highlights how healthcare workers with unsupportive supervisors are more likely to experience burnout, leading to increased patient care errors.

If you are looking to improve your own organization’s management and leadership skills to avoid these pitfalls of bad managers, click below to speak with one of our experts and learn more about our Careerminds leadership coaching and development programs. 

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Despite their harmful effects, bad managers often remain in their roles, perpetuating the cycle of dysfunction. Here are a few key reasons why bad managers don’t get fired:

Organizations frequently promote employees based on technical performance rather than leadership potential. This lack of focus on management training and development results in poor team engagement.

Many organizations rely on annual performance reviews or static feedback tools that fail to identify and address managerial shortcomings. Employees may also fear retaliation, preventing them from reporting problematic manager behaviors.

Organizations often value managers who achieve short-term goals, even at the expense of team wellbeing. This mindset discourages accountability for toxic leadership styles.

Cultural resistance to change is a significant factor. In rigid hierarchical structures, challenging or replacing a poor manager can seem impossible, particularly when those managers are perceived as loyal or experienced.

In addition to the effects bad management causes on individual employees, they also create a ripple effect across entire organizations. These key impacts include:

• Decreased innovation: Teams led by poor managers are less likely to experiment or share ideas due to fear of criticism.
• Brand damage: Disengaged employees are less likely to act as brand ambassadors, potentially damaging the organization’s reputation among customers and future hires.
• Reduced diversity and inclusion: Bad managers often fail to create equitable workplaces, driving away underrepresented employees who face additional barriers.

Gallup’s research states that the most highly engaged organizations created an intentional effort of good leadership over several years. So the sooner you can start addressing these issues of bad managers, the better. Here are actionable strategies your organization can take to mitigate the effects of bad management:

Invest in ongoing leadership training programs focusing on soft skills like emotional intelligence, conflict resolution, and effective communication. Companies such as Google have implemented initiatives like the “Project Oxygen” program to train managers in these areas, resulting in improved employee satisfaction scores.

Replacing outdated feedback mechanisms with continuous tools like pulse surveys and 360 degree feedback allows organizations to quickly identify and address managerial issues. Platforms like Workday and Lattice are increasingly being used for this purpose.

Creating a culture that values mental health can offset the damage caused by bad managers. Offering mental health resources, flexible schedules, diverse benefits, and employee assistance programs (EAPs) helps create a more supportive work environment.

Organizations must reassess how they promote employees into leadership roles. Emphasizing interpersonal skills and team-building capabilities over technical expertise ensures that new managers are equipped to lead effectively.

Now let’s talk about what employees stuck with poor leaders can do to navigate the situation. Here are some helpful tips for how to deal with bad managers as an individual employee:

• Seek clarity: Politely request specific expectations and feedback to reduce confusion.
• Build alliances: Strengthen relationships with colleagues to create a support network.
• Use internal resources: HR departments or mentorship programs can provide guidance.
• Develop a backup plan: If the environment becomes untenable, prioritize finding a healthier workplace.

Gallup’s findings reveal that bad managers are not just an individual problem—they’re an organizational crisis. From economic losses to widespread disengagement, the ripple effects of poor leadership are too significant to ignore. 

The bottom line is clear: investing in better managers isn’t just a moral need—it’s a financial and strategic one. Organizations that prioritize effective leadership will reap the rewards of engaged, productive, and loyal teams.

Here are the key takeaways:

• Gallup’s 2024 report highlights that employees under poor management experience 30 percent more stress than the unemployed, contributing to heightened burnout and disengagement.
• Employees with bad managers are more likely to experience anxiety, depression, and physical health issues like insomnia due to a toxic work environment.
• Poor leadership drives employee turnover, costing companies one to two times an employee’s salary in recruitment and training.
• Bad managers contribute to reduced innovation, brand damage, and lower diversity and inclusion.
• To combat the impact of bad management, organizations should invest in leadership development, feedback systems, and a commitment to employee wellbeing.
• Employees under bad managers can navigate challenges by seeking clarity on expectations, building supportive networks, and utilizing HR resources.

If you’re interested in discovering more about our leadership coaching services at Careerminds, click below to connect with our experts and determine if we’re the right fit for your organization. 

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Cynthia Orduña

Cynthia Orduña is a Career and Business Coach with a background in recruiting, human resources, and diversity, equity, and inclusion. She has helped 50+ companies around the world hire and retain talent in cities like LA, SF, NY, Berlin, Tokyo, Sydney, and London. She has also coached over 300 people, from entry to senior levels, in developing their one-of-a-kind career paths, Her work has been featured in publications such as Business Insider, The Balance Careers, The Zoe Report, and more. To learn more you can connect with Cynthia on LinkedIn.