Effective management is the key to any organization’s success. A manager who can train, mentor, and communicate well is more likely to have productive, happy, and engaged employees. Providing effective and ongoing management training is an investment that can have both tangible and intangible payoffs for a business.

A study conducted by MSW Research and Dale Carnegie Training revealed an employee’s relationship to her/his direct manger is a top predictor of employee engagement. This is because the direct manager is the leader the employee interacts with most and, therefore, has more influence on morale and performance than an executive leader. A key component for a manager in having a good relationship with employees is to be able to provide role clarity (including job definition, communication, and reinforcement of performance expectations), which is a key factor in employee engagement according to SHRM. This helps ensure continued success because employees know what they need to accomplish, and they have the direction and confidence to be more autonomous in their work.

Not only does employee engagement improve with well-defined roles and expectations, but a Harvard Business Review study found that collaboration improves as well. For example, think about a team of doctors and nurses in an emergency room. Although they do not know what patient condition they will need to treat next, there will be no time wasted in task negotiation when it happens. A surgeon knows it is her/his role to make key decisions about the procedure, while a nurse knows it’s her/his role to sterilize and set up the room and assist the surgeon during the procedure.

This same role clarity should carry over in a business setting. When all employees know their roles and performance expectations, they are able to collaborate on projects more effectively. In order to have an organization full of people with a clear understanding of their roles, you must have an organization full of managers who are able to provide that guidance. Management training allows a company to develop more consistent leadership and ensure basic management skills are mastered throughout the business. From goal setting to communication skills, investing in the low- and middle-level managers will trickle up the organization as young leaders advance.

The consequence of not having quality leaders is disengaged employees, leading to higher turnover. Turnover costs are estimated to be between 100-300% of the base salary of the replaced employee, and they can be even more expensive for highly specialized positions. Why is this? Think of all that goes into replacing an employee. First, there are the straightforward costs of advertising the job, conducting background checks and drug tests, relocating an employee, paying a signing bonus, and reimbursing travel expenses during the interviewing process. Then there are opportunity costs of utilizing resources for interviewing and training that could have otherwise gone to regular production. Once the employee is hired, there is still reduced productivity as they get up and running.

The less an organization can turn over employees, the better. Effective management training that leads to more engaged employees and less turnover is not only cost effective, but it will also generate greater productivity, reduced conflict, and better collaboration throughout your organization.