The Real Cost of Poor Leadership in Workplaces
I once worked under a manager who made every day feel harder than it needed to be. The job itself wasn’t the problem — it was the way he showed up. Tense. Snappy. Quick to point out the smallest mistake. By Friday, the whole team looked like we’d been slogging through mud all week.
That’s the real cost of poor leadership. You don’t always see it in reports or profit margins. You see it in people heading home completely drained. In smart ideas that never make it to the table. And in good staff who quietly start polishing up their CVs.
What the Numbers Don’t Tell You
Every workplace talks about results. Revenue. Sales targets. Deadlines. Those matter, of course.
But they don’t tell you what it feels like to sit through a meeting where no one dares to speak up. Or to spend your weekend already dreading Monday because of the tone set by your boss.
You can’t measure the way trust disappears. But you can sense it if you’re paying attention.
When Burnout Sneaks Up
Burnout doesn’t usually arrive with flashing lights. It creeps in. Someone skips lunch. Another starts replying to emails at midnight. The office chat gets quieter. Before long, you’ve got a team running on fumes.
The work still gets done — until suddenly it doesn’t. Sick days go up. Mistakes pile up. And more often than not, it’s the reliable people, the ones you thought would hold the place together, who hit breaking point first.
Why People Really Leave
Over the years, I’ve asked plenty of people why they left their jobs. Very few said money. Most said something like, “I just couldn’t deal with my boss anymore.”
When someone leaves, it costs more than just a hiring fee. You lose trust. You lose relationships with clients. You lose that sense of stability that holds a team together. And when one person goes, others often start wondering if they should too.
The Ideas That Never Surface
Here’s something you’ll never see on a balance sheet: the ideas that never get spoken. I once heard someone say, “I knew how to fix it, but why bother? The boss won’t listen.” That’s not laziness. That’s self-protection.
Multiply that across a whole team, and innovation doesn’t disappear with a bang. It disappears with silence.
Managers’ Mental Health Matters Too
It’s easy to point the finger at “bad bosses.” But often, managers are struggling themselves. They’re overloaded, under pressure, and short on support. And when a manager is running on empty, the team feels it.
Managers’ mental health doesn’t get talked about nearly enough — but it’s central to how a workplace runs. A burnt-out leader can’t create a thriving team. They pass their stress down the line, usually without even knowing it.
Supporting managers isn’t just the kind thing to do. It’s the practical way to stop the cycle.
The Real Cost and the Alternative
The hidden price of bad leadership isn’t just financial. It’s the flat look on people’s faces at 3 p.m. It’s the good staff you lose. It’s the bright spark that could have driven innovation, but never got a chance.
The good news? When leaders are trained, supported, and healthy themselves, everything changes. Teams don’t just hit targets — they want to be there. They bring energy. They contribute ideas. They grow.
That’s why at the Workplace Mental Health Institute, we focus on both sides: building leaders’ skills and looking after their wellbeing. Mental health programs like Mental Health Essentials for Managers, Leadership Resilience, and Managing Psychosocial Safety give Australian leaders the tools to step up without burning out.
Because at the end of the day, leadership isn’t just about titles or KPIs. It’s about how people feel on the other side of your decisions.

Peter Diaz is the CEO of Workplace Mental Health Institute. He’s an author and accredited mental health social worker with senior management experience. Having recovered from his own experience of bipolar depression, Peter is passionate about assisting organisations to address workplace mental health issues in a compassionate yet results-focussed way. He’s also a Dad, Husband, Trekkie and Thinker.