Test 24 · Senior leaders
Cost of a Bad Boss
Bad management is the most expensive line that never appears on the budget.
The short answer
Cost of a Bad Boss is a free calculator that prices voluntary exits in your own currency. Enter the average salary of people who left, how many left, and the share that could have been prevented. It uses Gallup’s estimate that replacing someone costs half to twice their salary, and shows the preventable part.
Drafted with AI for Jay Sampat, Chief Mirror Holder · coach review pending
- Who it’s for
- Directors and VPs deciding whether to invest in a struggling manager, or making the case for better manager training.
- What you get
- Your exit bill as a range, the preventable part, and what keeping one more person would save.
The calculator
What manager-driven exits cost, in your currency
Your exit bill
- Preventable exits
- $104,000 to $416,000
- 2.6 people a manager or the company could have kept
- All 5 exits
- $200,000 to $800,000
- to replace everyone who left
- Keeping one more person
- $40,000 to $160,000
- saved, at this salary
The range is wide because replacing a junior role costs far less than replacing a specialist or a leader. For a budget conversation, quote the low end: it’s the hardest to argue with.
The exit interview that said what nobody said in the one-to-ones.
Try a question now
I tell people where they stand without them having to ask.
A question from The 42 Test that touches this topic.
Cost of a Bad Boss
Why put a number on a bad manager?
Because a number gets a meeting that a feeling doesn’t. Most senior leaders know which of their managers are struggling. Fewer can say what it is costing, so the problem waits until someone resigns.
Managers matter more than almost anything else here: Gallup found that managers account for at least 70% of the variance in employee engagement across teams.
How does the calculator work it out?
- Replacement cost per person is 0.5 to 2 times their yearly salary, Gallup’s range. Typical costs include hiring, onboarding and the months before a new person is fully productive.
- All exits is the number of people who chose to leave × the average salary × that range.
- Preventable exits applies the share that could have been prevented. The default, 52%, is Gallup’s figure for leavers who say their manager or organisation could have kept them.
- Keeping one more person is the replacement cost of a single exit at the salary you entered.
The salary that appears first is an example, not a benchmark. For a budget conversation, quote the low end of the range: it’s the hardest to argue with. For a worked example, read what a bad manager costs a company.
Does a high bill mean you should replace the manager?
Usually not as a first step. Many struggling managers were promoted for being good at the work and never shown how to lead. Coaching and clearer expectations often close the gap faster than a new hire.
To see a manager’s habits from the inside, they can take The 42 Test, which is free. To understand why good people leave in the first place, take Talent Magnet, a free self-test on growth, recognition, fairness and your reputation as a manager to work for.
Drafted with AI · coach review pending
Sources
Questions people ask
- How much does it cost to replace an employee?
- Gallup estimates that replacing an employee costs between half and twice their yearly salary, depending on the role. Junior roles sit near the low end; specialists and leaders near the high end.
- Where does the 52% default come from?
- Gallup found that 52% of employees who left voluntarily said their manager or organisation could have done something to keep them. If your exit interviews give a different figure, use yours.
- Is the cost of a bad manager mostly turnover?
- Turnover is the easiest part to count. The quieter costs, such as lower effort from people who stay and extra absence, are harder to measure and aren’t in this calculator, so the result understates the full cost.
- Is anything I type saved or sent?
- No. The calculator runs in your browser. Nothing is stored or sent anywhere.
More tests for senior leaders
- 19RippleLive
- 20Presence CheckLive
- 21Cross-Team TrustLive
- 22Change LoadLive
- 23Talent MagnetLive
From the Question Library
Question 16 of 42
In one-on-ones, the other person does most of the talking.
Drafted with AI · coach review pending