Why you can’t afford to ignore economic sanctions
Ethics and Compliance
Managers today must navigate a fast-changing workplace, filled with evolving regulations, new executive orders and increasing employee expectations. At the same time, managers are under pressure to drive team performance and build agile teams to meet organization goals. Now more than ever, managers need clear and effective training to protect employees — and their company — from compliance missteps that could lead to legal risks.
When managers aren’t adequately prepared, they may unintentionally mishandle serious workplace issues, leading to legal disputes, employee turnover and reputational damage. For example:
- Ignoring or minimizing harassment complaints can escalate conflicts, resulting in lawsuits and undermining employee trust
- Unfair or inconsistent actions towards employees can expose a company to discrimination claims.
- Failure to understand employees’ rights to reasonable accommodations can result in costly fines, legal action and upset employees.
Overlooking unethical behavior can damage an organization’s reputation and harm customer relationships.
Why managers struggle
Managers can struggle due to lack of experience, especially millennials who now hold most managerial roles but may not have had sufficient time to build skills in handling employee relations, performance issues and difficult workplace situations. This can leave managers feeling overwhelmed.
Inadequate training often compounds this issue. Many managers are promoted without proper guidance, relying instead on trial and error to manage their teams. Without a solid foundation, they may unintentionally mishandle employee concerns or fail to enforce policies consistently.
The complexity of compliance laws adds another layer of confusion. With evolving regulations and shifting workplace expectations, managers can feel unsure about their responsibilities or hesitant to take action for fear of making mistakes.
Finally, communication challenges frequently arise — particularly when managers must navigate sensitive conversations about performance, conduct or accommodations. Without effective training and practice, these conversations can go poorly. Equipping managers with the right skills can make these interactions more productive for everyone involved.
The cost of manager mistakes
Gallup found that 76% of employees say their managers lack the necessary leadership skills to be effective. Managerial missteps have real consequences.
- Poor management behavior has contributed to $223 billion in turnover costs over five years, according to the Society for Human Resource Management (SHRM).
- SHRM found that 58% of employees have left a job because of poor management. Replacing an employee can cost up to two times their annual salary.
- The Equal Employment Opportunity Commission (EEOC) reported that 68% of harassment cases go unreported because employees fear retaliation or believe nothing will change — an issue often tied to inadequate manager response.
These statistics underscore the significant financial risks associated with insufficient managerial training and the importance of investing in comprehensive training programs.
How training solves the problem
Research shows that organizations that invest in leadership training improve their performance. How?
- Effective training equips managers with the skills to handle tough conversations, employee disputes and performance concerns with confidence.
- It ensures managers understand compliance responsibilities and stay informed on the latest regulations.
- The skills and knowledge gained through training help managers communicate more effectively, build stronger connections with employees and foster a more positive and productive culture.
- Practical, real-world scenarios further help managers apply their learning to actual workplace challenges.
Training shouldn’t be a one-and-done event. Continuous learning ensures managers stay prepared to lead effectively as workplace demands evolve.
Conclusion: Managers need training more than ever
Now is the time to prioritize manager training, as your company’s culture — and legal standing — depends on it. Investing in training strengthens leadership skills, builds trust and reduces costly risks tied to turnover and compliance failures. By equipping managers with the right tools, they can lead with confidence, clarity and competence in today’s fast-changing workplace.
