According to Glassdoor’s Employee Confidence Index, only 45.1% of U.S. employees have a positive outlook on their employer’s future as of January 2025. This downward trend highlights a growing disconnection between employees and their organisations. Notably, mid-level employees – who are often the backbone of an organisation – have experienced the largest drop in confidence. From February 2023 to February 2024, their confidence declined by 6.3 percentage points, from 54.6% to 48.3%.

This group represents the next generation of leaders, yet they frequently face the brunt of cost-cutting measures. In efforts to reduce expenses, many companies scale back investments in employee development, especially for mid-level managers. However, this short-term approach comes with significant long-term costs.

The cost of replacing an employee can be staggering. Research from Gallup and SHRM indicates that turnover costs companies between 50% and 200% of an employee’s annual salary. For mid-level managers, this figure often skews to the higher end due to the additional resources required for recruitment, onboarding, and lost productivity during the transition. Moreover, when experienced and high-potential employees leave, they take institutional knowledge and client relationships with them, further compounding the cost.

It’s also worth noting that disengaged employees, who often feel overlooked or undervalued, cost companies an estimated $450 to $550 billion annually in the U.S. alone, according to Gallup. Without proper support and development opportunities, mid-level employees are more likely to disengage, creating ripple effects throughout the organisation. Teams led by disengaged managers are 23% less productive, which directly impacts the bottom line.

Mid-level managers are critical to an organisation’s success. They serve as the connection point between senior leadership and frontline teams, driving day-to-day operations and motivating staff. Yet, when companies neglect their development, these managers struggle to fulfil their potential, ultimately leading to disengagement, reduced performance, and higher turnover.

Investing in employee development, particularly for mid-level employees, is not just a “nice-to-have”- it’s a business imperative. Organisations that prioritise scalable and cost-effective leadership development programmes benefit from stronger employee loyalty, higher engagement, and a more robust leadership pipeline. Research shows that companies with strong learning cultures enjoy employee engagement rates that are 30-50% higher than those that don’t prioritise development. We’ve seen this firsthand. After completing Elevate – our 12-month virtual programme designed for aspiring female leaders – we gather feedback from participants including how they now feel about their roles and organisations. The results speak volumes, with consistently over 90% of participants reporting a significant increase in their confidence, clarity of career direction, and enthusiasm for their roles and organisations. These outcomes not only transform individual careers but also deliver measurable benefits to their organisations, reinforcing that leadership development is a strategy that pays dividends far beyond the programme itself.

Moreover, high-potential employees – the “cream of the crop” – are often the first to leave when they feel undervalued or see limited opportunities for growth. Losing these individuals is not just costly but also disrupts succession planning and jeopardises future leadership stability.

Final Thoughts

By focusing on the growth and development of mid-level employees, companies can reduce the hidden costs of turnover, improve productivity, and build a confident, capable, and committed workforce. Developing future leaders isn’t just an investment in individuals – it’s an investment in the long-term success and sustainability of the entire organisation.

If this resonates with you, have a look at our upcoming sessions to see how we can help to unlock – and elevate – the potential in your workplaces.

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