The Real Cost of Avoiding Tough Conversations

Feedback isn't easy, especially the kind that feels uncomfortable. You know the kind. The conversations you'd rather push down the calendar until "next week" (which, if you're honest, often turns into "never").

I've seen it happen in so many teams: managers avoiding feedback because they don't want to rock the boat. Or stumbling through a difficult conversation in a way that leaves someone feeling blindsided, embarrassed, or worse, totally disengaged.

Here's the thing: the cost of unskilled managers when it comes to feedback is bigger than just one awkward chat.

It shows up everywhere in the business.

Missed Conversations = Missed Growth

When managers shy away from giving clear, timely feedback, performance roadblocks stay in the way. Employees don't know where they stand, mistakes get repeated, and true potential remains unrealised. And yes, that costs real money.

Take performance management best practices: McKinsey found that companies investing in people-focused performance systems are 4.2 times more likely to outperform their peers, achieving approximately 30% higher revenue growth and significantly lower attrition rates.

And it's not just about growth—it's about preventing decline. Forbes reports that low-performing teams may operate at just 60–75% of a high-performing team's capacity—so ineffective feedback can leave teams performing well below their potential.

Mishandled Conversations = Lost Trust

Flip the coin: poorly delivered feedback erodes trust—a critical foundation. When trust cracks, people pull back. They stop sharing, stop risking, and withhold their best ideas.

Harvard Business Review shares that high-trust organisations see employees reporting 50% higher productivity, 106% more energy, 76% more engagement, and 74% less stress.

Let that sink in. One missed conversation, delivered badly, and you're quietly stopping the next big idea from surfacing.

Silence Breeds Disengagement

We've all felt it after pouring ourselves into something and hearing crickets.

That silence sends a message: what I do doesn't matter here. Multiply that across your team—and your organisation—the result is disengagement, low morale, and sky-high turnover.

And the cost is staggering. Gallup estimates that disengaged employees drain the global economy of $438 billion in lost productivity every year.

On top of that, turnover adds another blow. The Work Institute calculates that replacing a single employee costs about one-third of their annual salary.

Gallup's research suggests it can be even worse—anywhere from 50% to 200% of an employee's salary to find and onboard a true replacement.

The Ripple Effect on Culture

When feedback is absent or clumsy, it doesn't just affect individuals. It shapes culture.

Teams learn to avoid hard conversations. Problems get swept under the rug. Frustrations simmer. And before you know it, collaboration suffers, results stall, and your best people start looking for the exit.

So, what does this mean in plain English? You might think skipping a feedback conversation or handling it poorly is no big deal. But the ripple effect is enormous:

• Teams that don't get clear feedback underperform.

• Mishandled feedback breaks trust and innovation.

• Unacknowledged work kills morale and invites turnover.

• All of this reshapes your culture—and not for the better.

The Bottom Line

Feedback is one of the most powerful levers a manager has. Get it right, and you build trust and improve performance.

Get it wrong—or, even worse, avoid it altogether—and the costs pile up fast: missed opportunities, disengaged employees, damaged culture, and high turnover.

The good news? Feedback is a skill. And like any skill, managers can get better at it—with practice, support, and the right tools.

Because in the end, the cost of poor feedback skills isn't just financial. It's the lost potential of your people. And that's something no business can afford.

Whenever you're ready, here's how we can help:

Check out our Feedback Factor Program for Managers.

It's a proven system designed to help managers (just like you) get better at giving clear, constructive feedback that makes a real difference—without the stress or second-guessing.

You'll learn practical tools to:

• Change behaviours

• Strengthen teamwork

• Build trust and results through better conversations

Learn more here or drop me a line at [email protected] if you'd like to chat.