Why 60% of new managers fail within the first two years

Every year, thousands of people in the UK step into management roles for the first time. It is usually presented as a positive moment, a sign of trust and progression. Yet the evidence suggests that many of these promotions actually come with a fair amount of risk. Around 60 per cent of new managers receive no formal management training, and a similar proportion fail within their first two years. That is concerning for any businesses that care about productivity, retention and long-term business performance.

Peter Boolkah has spent years working with business owners and leadership teams, and is repeatedly struck by how predictable the early struggles of new managers are. “High performers are promoted because they are good at their jobs. Once promoted, they are often expected to keep delivering personally while also leading others. Few are given clear guidance on what should change, and even fewer are given the space to learn how to manage well. The first 90 days matter more than most organisations realise. This is the period when new managers set patterns for how they work, how their team responds to them and how senior leaders perceive their impact. It is also the point at which many make choices that feel sensible at the time but create problems later on.”

Peter recently ran a poll on LinkedIn with his 26,000-plus followers to explore what people found hardest when stepping into management. Nearly half said the biggest challenge was learning to coach rather than micromanage. Around a third pointed to the difficulty of building systems that stop them from being pulled back into day-to-day tasks. The comments added useful colour. People understand that the role changes once they are promoted, but most feel underprepared for that shift.

He says that what often happens in those first months is an understandable attempt to prove value. New managers step in quickly to fix issues. They take over conversations that feel uncomfortable. They answer questions rather than encouraging people to work through problems themselves. “In the short term, this creates movement. In the longer term, it creates dependence. I see this most clearly in sales teams. A newly promoted sales manager, often the strongest closer, jumps back into deals to make sure numbers are hit. The deal is won, but the team has learned very little. Multiply that behaviour across a business, and it becomes clear why managers feel stretched, and teams fail to develop.”

Peter states that this is not simply a matter of individual behaviour. The UK has a long-standing management capability issue. The Chartered Management Institute estimates that around 82 per cent of managers have never received formal training. Its research consistently links poor management to lower engagement, higher turnover and weaker organisational performance. When people talk about why they leave roles, management quality regularly sits near the top of the list.

The financial implications are well documented. Estimates suggest replacing an employee costs at least 30 percent of their annual salary, rising significantly for senior or specialist roles. Poor management increases churn, slows decision-making and limits growth, yet it is still treated as something people will learn by experience rather than design.

“The first three months in a management role should not be about demonstrating personal capability. They should be used to establish clarity. That means setting expectations, agreeing on how problems will be solved and building simple structures that allow people to work without constant escalation. It also means learning how to coach effectively, which is a skill in its own right and not an extension of technical expertise.” Peter says that the mistake many organisations make is measuring new managers on immediate output rather than long-term capability. This encourages visible activity rather than thoughtful leadership. Over time, that approach benefits neither the manager nor the business.

“A promotion is not a reward for past performance. It is an investment in future capability. You are not promoted to do more work yourself. You are promoted to improve the quality of work done by others. When businesses take that seriously and support new managers accordingly, the first 90 days become an opportunity rather than a risk.”