She ran operations for two business units. Her name came up in every quarterly review as the reason the numbers held. Her VP called her indispensable. Then she resigned, and in the exit conversation she said something the VP is still turning over: in six years, no one had invested a dollar or an hour in her growth.
A version of that conversation plays out in more organizations than most leaders would guess. The details change. The pattern does not. The Director layer carries more of the company's execution than any other, and it is the layer most consistently skipped when development budgets and attention get handed out.
That is not a people problem. It is a structural one, and it is costing more than most leaders think.
Too senior for one program, too junior for the other
Look at where development money actually goes in most companies. Early-career and first-time manager programs sit at one end, structured and well funded. Executive coaching sits at the other, reserved for the C-suite and the people being groomed to join it. Directors fall in the gap: too experienced for new-manager training, not senior enough to be handed a coach.
Meanwhile their load keeps growing. Gartner research found the average manager now holds 51 percent more responsibilities than they can effectively manage, with more direct reports and more complexity than before the pandemic. Directors absorb that pressure from both directions. They translate strategy for the people below them and translate reality for the people above.
The people above are stretched too. In theory, a Director's VP is their primary developer. In practice, that VP is running a function, managing up, and putting out fires. Development becomes the thing that happens next quarter. Gallup's latest data shows where that leads: global manager engagement fell from 27 percent to 22 percent in a single year, and managers are now no more engaged than the individual contributors they lead.
Nobody decides to neglect this layer. It simply has no natural owner.
The invoice you haven't opened
Replacement-cost estimates vary, but they all point in the same direction. Figures commonly attributed to SHRM put turnover at six to nine months of salary for a typical role, rising with seniority. Gallup has estimated the cost of replacing an employee at one-half to two times annual salary, with leaders landing toward the top of that range.
Run that against a Director earning $150,000, and the exposure sits somewhere between $75,000 and $300,000. That covers search fees, interview hours, and onboarding. It also covers the harder costs: stalled initiatives, delayed decisions, and the six to twelve months a new Director needs before working independently.
Then comes the ripple. Gallup attributes about 70 percent of the variance in team engagement to the manager. When a strong Director leaves, the team underneath often loosens with them. When a struggling Director stays, the team underneath often leaves instead. Either way, the bill compounds.
Set that against what it costs to develop the same person for six months. The comparison is not close. Most companies are already paying for skipping this layer. They just receive the invoice later, and it arrives labeled as attrition.
Another workshop won't fix it
The reflex is to add Directors to an existing program. It rarely works. Gartner's own survey found only 25 percent of HR leaders confident their manager development investments were paying off. A Director's problems are not skill gaps a seminar can close. They are judgment calls under load: which fire to let burn, how to push back on a VP without spending credibility, how to lead peers who used to be rivals.
What changes outcomes at this layer is sustained, specific attention. That means someone outside the reporting line to think with, so the Director can be candid about what is not working. It means honest input from the people around them, gathered rather than guessed. And it means a VP who is involved at the start, the middle, and the end, even if they cannot be involved every week. The VP does not need to become the coach. They need to stop being absent from the development of their most important leaders.
The companies that get this right are not spending more on development. They are spending it where the load actually sits.
Your Directors are already the reason the strategy works. The only open question is whether you invest in them before the exit conversation, or learn what they needed during it.
References
Gartner. "Gartner HR Survey Finds 77% of Employees Are Placing Increased Importance on Manager Support." June 22, 2023.
Gallup. State of the Global Workplace 2026.
Gallup. State of the American Manager. 2015.
Society for Human Resource Management (SHRM). Employee replacement cost benchmarks.