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How much of your people management runs on memory?

Memory fades. Impressions tilt. Conversations turn into debates: you remember it one way, they remember it another. How much time and energy goes into working around memory and bias?

People issues usually start small. What does it cost when they are left to grow?

First, a question

As a leader of people, which of these costs you the most time and energy?

Pick one, then see how 500 managers answered.

These are the survey’s top 7 items; all 11 are listed below the results. Your choice isn’t recorded.

Ciphr · 500 UK managers with people management responsibilities · 2026

In the survey, what troubles managers most is mostly about people.

They were asked which parts of managing are most challenging (several answers allowed). Three of the top four are about handling people.

  1. Having ‘difficult’ conversations32%
  2. Increased stress30%
  3. Managing grievances, disciplinary procedures, dismissals or redundancies25%
  4. Managing challenging or problematic behavior within the team24%

People issuesOtherEach item counted separately; managers could choose several

Source: Ciphr (a UK HR and payroll software provider), press release, September 30, 2026. Online survey of 500 UK managers with people management responsibilities, run on Pollfish from August 26 to September 8, 2026.

About the survey

What the survey reported

Ciphr asked these 500 managers which parts of managing are most challenging. All 11 items, in Ciphr’s wording: having ‘difficult’ conversations 32%; increased stress 30%; managing grievances, disciplinary procedures, dismissals or redundancies 25%; managing challenging or problematic behavior within their team 24%; more meetings 21%; extra admin and workload 21%; enforcing policies, rules, ways of working or business decisions that they don’t agree with 20%; managing unrealistic expectations from their boss or leadership 19%; absence management 19%; being a mediator / dealing with interpersonal friction or conflict 18%; giving and receiving critical feedback 18%.

How to read these percentages

Managers could choose several items, so each percentage is calculated on its own. Adding items together does not tell you how many managers.

Source and limits

Ciphr is an HR and payroll software company; the results come from its press release. The sample is UK managers.

Two barriers for managers

Fuzzy memory and first impressions: what can you do about them?

AERTHEIX’s viewThe top items are often stages of the same thing: a conversation that wasn’t clear, then discipline or dismissal when it wasn’t resolved, with the team affected along the way. What sits behind these “people problems”? Try sorting them yourself:

Where do these people problems really belong?Try matching them.

Drag a phrase into a category below (on a phone, press and hold first), or tap a phrase and then a category.

People’s behavior has many causes. Telling them apart takes a more systematic, structured method.

AnswerVITALIS turns the vague, easily disputed moments into a systematic record.

AnswerVITALIS separates three questions, so you can see where the problem really sits.

Phrases managers often use, compiled by AERTHEIX.
01Blind spot

When a hire doesn’t work out, attitude usually gets the blame.

Hiring managers say most unsuccessful new hires fall short on attitude. Yet don’t interviews and reviews spend most of their time on skills?

Your ideal employee is:

Leadership IQ · new hires · three-year study

Of 100 new hires, 46 were judged unsuccessful within 18 months. Of these, about 41 were attributed to attitude, and about 5 to technical skills. Other new hiresAttitude-related 89%Technical skills 11% Illustration at the study’s proportions.
46%
of new hires were judged unsuccessful by their hiring managers within 18 months
89%
of unsuccessful cases were put down by hiring managers to attitude-related factors; only 11% to technical skills

Source: Leadership IQ, Hiring for Attitude. The reasons were given by the hiring managers.

About the study

What the study reported

In a three-year Leadership IQ study, hiring managers judged 46% of new hires to have failed within 18 months. Of these failures, hiring managers attributed 89% to attitude-related factors (including coachability, emotional intelligence, motivation and temperament) and 11% to technical skills.

How it applies

The link between this figure and this page is less direct than the headline suggests. Companies already value factors beyond skills, but those factors rarely get what skills get: record requirements, written standards and regular review. They may matter a great deal; they are simply seldom recorded.

Source

Leadership IQ, Hiring for Attitude: a three-year consultancy study tracking more than 20,000 new hires at 312 companies. It is a consulting firm’s commercial research, and the results were reported by hiring managers.

02Cost

On impression alone“It’s just one underperformer.”

Long before anyone leaves, the team and the company are already paying.

An underperforming employee slows down colleagues who are doing well. Managing them takes extra time, often a lot more. When the work doesn’t get done, someone else, often the manager, finishes it. The direct manager feels it first. Here is what the surveys show.

Borrowed estimates · the cost of no record

17%
Estimated share of a manager’s time spent supervising underperforming employees
≈320hours
From one manager’s working year: an illustrative conversion, about eight working weeksillustrative conversion
About 8 working weeksAbout 47 working weeks a year
50%+
Replacing a wrong hire is estimated to cost 50% or more of the role’s annual salary (the low end of Gallup’s estimated range)

If nothing changes, the cost builds up like this:

  1. Right awayManager’s timeThe same conversation repeats; reviews are rebuilt from memory.
  2. NextTeam’s loadColleagues quietly absorb the work; training gets booked before anyone knows whether it is a skills, workload or environment problem.
  3. At review timeDecision qualityThe probation review arrives, the file is thin, and the decision rests on impressions.
  4. FinallyReplacementIf someone does have to be replaced, that is the last cost to appear, not the first.

Three things cycle again and again: manager’s time, team’s load, decision quality. Only after several rounds does it end in replacement. When the new hire arrives, there is no record to hand over, and it all starts again.

Illustrative animation.

How it’s calculated

1,880 hours×17%≈320 hours÷40 hours a week≈8 working weeks

If the employee eventually leaves, Gallup estimates replacement can cost between half and twice their annual salary. Actual cost varies by role, market and method.

Source: Robert Half (2012): US CFOs surveyed estimated that managers spend an average of 17% of their time supervising poorly performing employees. ≈320 hours and 47 working weeks are AERTHEIX’s illustrative conversion, using 1,880 working hours a year and 40 hours a week. Gallup (2019) describes half to twice annual salary as a conservative replacement-cost range.

03The other side of the cost

The most memorable person isn’t always the biggest contributor.

People who report in often and are easy to be around get remembered; people who quietly get on with the work get overlooked. That is no one’s fault; it is how impressions work. Managing more fairly and more effectively takes a written standard that is the same for everyone, so each person’s strengths are visible.

That way, people who need support get it, and people who are ready get the opportunity.

Colleague A

Reports in often; speaks well in meetings.

Last 8 weeks: 2 records, all routine deliveries.

Colleague B

Quiet; rarely comes to you.

Last 8 weeks: 7 records, 3 of them stepping in when colleagues couldn’t cover.

By impression: A looks stronger than B.

Impressions remember who was most visible. Records show who did what.

Illustrative

For the full picture, ability alone isn’t enough. See how VITALIS looks at three questions separately →

04Compare

Your current approach, side by side.

The three approaches answer different questions. The difference is not who is right; it is where the information comes from, when it is recorded, and how it is used afterward.

A general comparison of memory-based annual reviews, questionnaire tools and VITALIS
ComparedAnnual review from memoryQuestionnaire toolsVITALIS
Where the information comes fromThe manager’s recollectionQuestionnaires filled in by the person or othersSpecific examples the manager sees at work
When it’s recordedJust before the reviewAt one point in timeWhen it happens
What you getOne overall ratingA description of traits or tendenciesThree separate observations, each tied to specific examples
What happens nextDiscussed again next yearInterpreted by HR or a coachThe same manager follows up and looks again in a few weeks

Trait inventories usually assess relatively stable characteristics, mostly by questionnaire at one point in time. VITALIS repeatedly records what is observed at work. This is a general comparison; individual companies and tools vary.