When a new or relatively new manager suddenly starts forcing out long established employees with clean disciplinary records and starts bringing in "their own people", then that should be a red flag (i.e. a danger signal) to any business owner that they may potentially have a bad manager on their hands.
However, too often at the outset of this all too familiar process, businesses side with the manager and they fail to wake up to the reality that it is the manager that is the problem, and not the many employees who have left in the meantime. Alas, by the time business owners realise this, an enormous amount of damage has been done to the firm, which could otherwise have been avoided had they been alert to the danger signals.
Long established employees with clean disciplinary records do not suddenly become bad employees overnight. If they are all of sudden being dragged into disciplinaries or placed on a performance improvement plan (PIP) by a new manager and leaving the business, then business owners / HR need be asking some serious questions about what is going on and looking into what that manager is up to.
It is the long established employees with many years of experience who are the lifeblood of any business and who are vital to its continued success. A poor quality new manager who comes in and forces those employees out can end up completely undermining the business, and doing an enormous amount of damage.
Spotting A Bad Manager Early Before Its Too Late
Warnings signs to look out for include:-
- High Employee Turnover Among Established Staff: A sudden spike in resignations or dismissals of long-serving employees, especially those with previously clean records, is a strong indicator of managerial issues. Experienced staff often hold valuable institutional knowledge and play key roles in maintaining smooth operations. If these employees are leaving en masse after a new manager’s arrival, it suggests that the manager may be creating a hostile work environment or failing to integrate effectively. Business owners should investigate underlying causes rather than accepting the manager’s narrative at face value, as unchecked turnover can result in lost productivity, morale, and costly recruitment cycles.
- Pattern of Disciplinary Actions Targeting Reliable Employees: When disciplinary proceedings and performance improvement plans (PIPs) are disproportionately directed at longstanding team members, it signals possible misuse of authority. Consistently high-performing employees rarely regress without significant external factors influencing their behavior. A new manager initiating multiple disciplinary actions against such individuals may be attempting to eliminate perceived threats or dissenters. This pattern warrants immediate scrutiny from business owners or HR to ensure disciplinary processes are fair, justified, and not being weaponised to mask managerial inadequacies or personal vendettas.
- Bringing in “Their Own People” Rapidly: An influx of new hires closely associated with the manager, often friends or former colleagues, can indicate an attempt to consolidate power rather than build a balanced team. While some level of external hiring is normal, replacing a large proportion of the existing workforce with loyalists undermines diversity of thought and disrupts established workflows. This practice can breed resentment among remaining staff and erode company culture. Owners should question whether these new hires are genuinely qualified for their roles or simply chosen for their allegiance to the manager.
- Breakdown in Communication and Morale: A noticeable decline in team communication, collaboration, or morale following the appointment of a new manager is a major red flag. Employees who previously contributed ideas and engaged openly may become withdrawn or reluctant to participate under poor leadership. This shift often stems from fear of retaliation or lack of trust in management. Business leaders should seek anonymous feedback from staff and monitor employee engagement metrics closely; persistent negative trends usually point to deeper issues rooted in managerial style or conduct.
- Resistance to Oversight and Feedback: Managers who react defensively to constructive criticism, evade performance reviews, or discourage input from senior leadership are often hiding deeper problems. Effective managers welcome oversight as an opportunity for growth and alignment with company values. Conversely, those who shield themselves from accountability may be fostering toxic behaviors, mismanaging resources, or manipulating outcomes for personal gain. Proactive owners must maintain regular check-ins with all levels of staff and ensure open channels for reporting concerns about management practices before irreversible harm occurs.
What To Do When There Is A Problem
Should the business determine that there is a problem with a potential failing manager, it should then:-
- Investigate immediately upon noticing warning signs, such as high turnover among established staff or an uptick in disciplinary actions against reliable employees.
- Gather objective evidence by reviewing HR records, exit interviews, and performance histories of both the affected employees and the new manager.
- Conduct confidential interviews with current and departing staff to understand their perspectives on the manager’s behavior and its impact on team dynamics.
- Assess whether new hires brought in by the manager are qualified for their roles and if recruitment processes were properly followed.
- Monitor changes in team morale, communication, and productivity through employee surveys or anonymous feedback mechanisms.
- Evaluate the fairness and consistency of disciplinary procedures initiated by the manager to ensure they are not being misused.
- Provide the manager with clear feedback about observed concerns, offering an opportunity for improvement (including, if necessary, placing them on a performance improvement plan) while setting measurable expectations.
- Increase oversight of the manager’s decisions and interactions with staff; implement regular check-ins from higher-level leadership or HR.
- Offer support resources such as coaching or management training to address possible skills gaps or behavioral issues if appropriate.
- Take decisive disciplinary action if problems persist (which could ultimately lead to dismissal) to prevent further damage to employee morale and business performance.
- Communicate transparently with staff about steps being taken to address the situation, reinforcing a commitment to fair treatment and a healthy work environment.
- Review internal policies and management onboarding processes to prevent similar issues from arising in the future.
Proactive Leadership Protects Your Business
The early detection of a failing manager is not merely a HR concern, it's a critical business imperative. The warning signs are often clear: unusual turnover among trusted employees, sudden disciplinary actions against high performers, and the rapid introduction of a manager’s personal network. Ignoring these signals can lead to irrevocable harm, eroding the company’s culture, draining institutional knowledge, and damaging productivity and morale.
Business owners and HR should be vigilant and responsive. By fostering open communication channels, regularly reviewing management practices, and acting decisively when issues surface, organisations can protect their most valuable asset - their people. It’s essential to investigate concerns promptly and objectively, support managers with development opportunities when possible, but also be prepared to make tough decisions if improvement does not occur.
Ultimately, prioritising fairness, transparency, and employee well-being will help maintain a healthy workplace where both individuals and the business as a whole can thrive. By taking proactive steps, companies ensure that leadership transitions strengthen, not weaken, the foundation for future success.
The Importance of Employee Retention and Institutional Knowledge
One of the most significant consequences of unchecked leadership issues is the loss of long-serving employees who possess deep institutional knowledge. These employees often serve as mentors, culture carriers, and problem-solvers within their teams. When they leave under negative circumstances, the business not only loses their expertise but also risks destabilising team cohesion and morale.
High turnover among experienced staff disrupts established workflows and can lead to costly onboarding processes for new hires who may lack familiarity with internal systems or company history. Furthermore, remaining employees might feel insecure or undervalued, which can trigger a cycle of further resignations and declining engagement. Retaining seasoned professionals is critical for maintaining operational continuity, upholding company values, and ensuring customer satisfaction.
Businesses should recognise that investing in the well-being and professional growth of their experienced workforce pays dividends through higher productivity, enhanced innovation, and a more resilient organisational culture. By valuing these key contributors and addressing leadership issues promptly, companies safeguard their legacy while fostering an environment where both new and established employees can thrive together.
