Middle managers cost frontline sectors AUD $15.5 billion yearly

New research indicates that Australian businesses in frontline sectors are losing an estimated AUD $15.5 billion each year due to middle managers spending significant time on low-value tasks.

The Feedback from the Field report, produced by SafetyCulture, is based on a survey of 1,000 middle managers across industries including manufacturing, retail, hospitality, transport, construction, and energy and resources. The findings highlight the degree to which administrative and manual duties are impacting workplace efficiency and productivity.

Low-value tasks widespread

On average, the survey found that middle managers spend approximately 6.5 weeks yearly on duties described as low-value or unnecessary. These duties most commonly include managing email overload, organising staff rosters, and duplicating data across digital systems. Respondents reported that such tasks prevented them from focusing on higher-impact responsibilities.

SafetyCulture calculated the economic impact of this lost time, using local wage data and the size of the relevant workforce segments, to reach an estimated annual sum of AUD $15.5 billion. The research suggests that this figure represents a significant opportunity for businesses seeking to counter rising operational costs by improving internal efficiency.

Sector differences

The study breaks down the cost of lost manager time by sector. Construction was identified as the sector most affected, with an annual loss of approximately AUD $4.5 billion. Manufacturing followed at AUD $3.8 billion, with hospitality (AUD $2.6 billion), retail (AUD $2.5 billion), transport and logistics (AUD $1.5 billion), and energy and resources (AUD $772 million) also found to be significantly impacted.

Impact on workplace culture

Phil Goldie, SafetyCulture's Global Head of Sales, said: "Middle managers are often the glue holding workplaces together by keeping people, processes, and performance aligned. But too many are stuck firefighting or buried in admin instead of driving improvement. When we free them up to focus on what really matters, businesses see the results immediately in the form of smoother operations, stronger teams, and better customer outcomes."

The study finds that nearly all middle managers surveyed (98%) believe they have ideas that could benefit their organisations. However, only 62% report that any of their suggestions have been implemented by senior leadership. Among the remaining group, 35% cited a lack of receptiveness from senior leadership as a top reason why their ideas were not put into practice.

When their ideas are rejected, 45% of managers said wasteful or inefficient processes remain in place, 33% feel disempowered, and 31% report declining trust in senior leadership.

Phil Goldie added: "The insight we're missing from middle managers is huge, because they see the problems firsthand and often know the fix. The challenge for leaders is to create a culture that listens, acts, and closes the loop on feedback. When that happens, inefficiency turns into improvement, and improvement turns into profit."

Research method

The YouGov research was conducted with a sample of 1,000 middle managers in late August and early September 2025. Participants represented several key frontline sectors, with sole traders excluded from the study. Middle managers surveyed typically oversee daily operations at plants, facilities, sites, stores, or venues and have direct reports.

The total annual cost of low-value tasks was calculated based on the reported hours lost, average wages, and estimated total number of managers in the target industries. The time spent on low-value tasks was determined using a standard 8-hour working day over a 5-day week.