The Accidental Manager
Why Untrained Leaders Cost You Millions
It’s an uncomfortable truth: many managers in growing businesses have never been taught how to manage. They were promoted for being good at their previous job, not because they had the skills to lead. The Chartered Management Institute (CMI) calls them “accidental managers.” In its 2023 report, only 27 % of UK workers described their manager as “highly effective”. Half of employees who rate their manager poorly plan to leave their company within a year. And 82 % of managers have no formal management or leadership training - they have become accidental managers!
The costs are staggering. Poor management is estimated to cost UK employers £84 billion annually through lost productivity, absenteeism and turnover. One in three workers has already left a job because of a negative culture. The CMI study found that only a quarter of workers feel motivated to do a good job when they don’t rate their manager.
Accidental managers aren’t just an HR issue; they are a drag on growth, innovation and morale.
How Accidental Managers Damage Your Business
High turnover and recruitment costs. Employees leave managers, not companies. Half of those who consider their boss ineffective intend to quit. Replacing them costs tens of thousands of pounds and disrupts customer relationships.
Low productivity and engagement. Research from the CMI shows that when managers lack formal training they struggle to provide feedback, manage change or use technology. Teams led by untrained managers often suffer from low morale, micromanagement or complete neglect. Employees with ineffective managers are unproductive for up to 52 % of their day.
Cultural toxicity and risk. Toxic behaviours pervade when leaders lack the skills or confidence to call them out. The CMI found that good management acts as an “insurance policy” against toxic cultures. Without training, managers may inadvertently discriminate or mishandle grievances, exposing the company to tribunal claims and reputational damage.
Missed commercial opportunities. Managers who receive structured training drive innovation and performance. Organisations that invest in management and leadership development see a 23 % increase in organisational performance and 32 % increase in employee engagement. Accidental managers, by contrast, fail to translate strategy into action and waste the potential of their teams.
Why So Many Managers Are Unprepared
The accidental manager phenomenon is partly cultural. In many SMEs, promotions are based on technical expertise or loyalty rather than leadership capability. The LRD summary of the CMI report notes that 52 % of managers surveyed had no management or leadership qualifications and 82 % had received no formal training. Promotions based on internal relationships rather than ability lead to managers who quickly find themselves out of depth. With HR departments in smaller firms often lean or nonexistent, these managers are expected to handle recruitment, performance management, wellbeing and compliance on top of their day jobs.
Practical Steps to Fix the Accidental Manager Problem
Enure you have good governance and leadership. Appointing accidental managers starts with a lack of clarity around purpose, strategy, roles and accountabilities. With good governance comes great leadership - ensure your organisation is set up for success rather than wide-open to failure.
Define what good management looks like. Outline the behaviours and competencies you expect from anyone with direct reports: coaching, feedback, planning, decision‑making, inclusion. Include these criteria in promotion discussions. If someone lacks the skills, offer development or consider alternatives to promotion.
Provide targeted training. Formal qualifications aren’t a luxury; they’re a risk mitigation tool. Start with short, practical workshops on coaching, delegation, handling conflict and employment law basics. Encourage managers to apply the learning immediately and share results.
Create support structures. Buddy new managers with experienced leaders. Provide access to HR expertise—internal or fractional—to answer questions about performance, compliance and wellbeing. Encourage peer learning groups where managers can share challenges and advice.
Hold managers accountable for people outcomes. Include turnover, engagement and development metrics in performance reviews. Reward managers who develop talent and build healthy teams. When managers fail to meet people expectations, provide coaching or reassign them.
Model the behaviour. Founders and senior leaders set the tone. Demonstrate inclusive decision‑making, feedback, and transparency. Celebrate managers who exemplify the culture you want to see.
Want to know more?
You wouldn’t leave your financial reporting to someone with no accounting training. Don’t leave your people’s performance to untrained leaders.
The HR Agency’s fractional HR partners provide independent review of leadership and governance practices; help founders design management frameworks; run pragmatic training and support new leaders as they grow.
Investing in your managers today will save you tens of thousands of pounds tomorrow.
