“Today, driven by shifts in both work ethos and the transparency of the job market, employee retention and engagement are now the #1 problems companies face.”1
But where should companies begin in order to address these problems? They should narrow their focus from ALL employees to a smaller, more manageable subset: Managers.
According to Gallup, 70% of American workers are “not engaged” or “actively disengaged.”2 And who has the greatest effect on those workers? “Gallup estimates that the manager accounts for at least 70% of the variance in employee engagement scores across business units.”3
By focusing on managers, we can have the greatest impact on our employees. Unfortunately, companies aren’t doing a good job of selecting the right people to promote into the management ranks. “Organizations often promote people who are successful as individual contributors because they are driven and goal-oriented.”4
“Individuals need to assess their personality and job requirements to determine if they fit into the corporate culture (organizational fit) as well as the manager role (job fit). People need to be realistic about the advantages and disadvantages of being a manager and be motivated to enter the manager role for appropriate reasons. The desire for more money and prestige are not enough for managers to remain in the role. The ability to make more money was a primary theme for entering the manager role, but not a satisfier when the participant experienced negative drawbacks.”5
“One of the most important decisions companies make is simply whom they name manager, Gallup has found. Yet our analytics suggest they usually get it wrong: Companies fail to choose the candidate with the right talent for the job 82% of the time.”6 “Manager talent is rare, and organizations have a hard time finding it.”7
“The sought-after talent combination that characterizes great managers only exists in about one in 10 people. Another two in 10 people have some of the five talents and can become successful managers with the right coaching and development.”8
“Great managers possess a rare combination of five talents. They motivate their employees, assert themselves to overcome obstacles, create a culture of accountability, build trusting relationships and make informed, unbiased decisions for the good of their team and company.”9
“An individual who exhibits the five dimensions to a high degree has what Gallup calls “high” manager talent. An individual who has many of the talents necessary to be a successful manager but needs support has “functioning” talent. An individual who lacks talent across the five dimensions has “limited” talent and is much less likely to be a successful manager regardless of the support he or she receives.” 10
So what happens to the 70% of current managers with “limited” talent? If a company is serious about improving employee engagement, they must focus on the transition experience. There must be a plan in place to effectively integrate “limited” talent managers back into the individual contributor ranks. That plan must address the emotional aspects as well as any income effects.
Some might ask why companies should re-integrate mangers back in to the ranks as opposed to just letting them go?
To let these employees go would have a negative impact on the companies’ ability to identify and place new managers. There would be an assumption that the company is setting people up for failure. Employee morale would wane and engagement levels would drop because of the uncertainty of potential managerial tenure at the company. And remember, it was the company that made the decision to promote them into a managerial role without considering the employees management talents. Companies should own up to their errors and work to find an equitable compromise for all involved. Specifically, companies need to focus on retaining experienced employees by revisiting the potential career paths and incorporating more non-managerial promotional opportunities.
On the flip side, the company needs to reassess its current individual contributors to see if anyone falls into the “high” or “functioning” categories since they would be better suited in the management ranks.
This is not an easy process. However, it is an important process if a company is to truly begin improving employee engagement. If we identify managers that process most, if not all, of the five dimensions, our employees will flourish because “managers’ engagement has a direct impact on employees’ engagement. Employees who are supervised by highly engaged managers are 59% more likely to be engaged than those supervised by actively disengaged managers.”11
“Whether hiring from the outside or promoting from within, organizations that scientifically select managers for the unique talents it takes to effectively manage people greatly increase the odds of engaging their employees. Instead of using management jobs as promotional prizes for all career paths, companies should treat these roles as unique with distinct functional demands that require a specific talent set. They should select managers with the right talents for supporting, positioning, empowering, and engaging their staff.”12
What are your thoughts on transitioning 70% of your current managers back into individual contributor roles? What were your takeaways from the articles and reports referenced?
1 Bersin, Josh. “Engagement, Retention, and Culture Now the #1 Issues in Talent and HR.” Bersin by Deloitte. Deloitte Development LLC, 10 Mar. 201. Web. 24 Feb. 2016. <http://www.bersin.com/blog/post/Engagement2c-Retention2c-and-Culture-now-the-1-Issue-in-Talent-and-HR.aspx>.
2 O’Boyle, Ed, and Jim Harter. State of the American Workplace: Employee Engagement Insights for U.S. Business Leaders. Rep. Washington, DC: Gallup, 2013. Print.
3 Harter, Jim, and Brandon Rigoni. State of the American Manager: Analytics and Advice for Leaders. Rep. Washington, DC: Gallup, 2015. Print.
4 Berry, Diane. “Transition Planning: From Manager to Individual Contributor.” Florida HR Review. MediaEdge Communications, LLC, 11 Mar. 2015. Web. 24 Feb. 2016. <http://www.hrfloridareview.org/magazine/item/386-transition-planning-from-manager-to-individual-contributor>.
5 Ibid.
6 Adkins, Amy. “Only One in 10 People Possess the Talent to Manage.” Gallup. Gallup, Inc, 13 Apr. 2015. Web. 24 Feb. 2016. <http://www.gallup.com/businessjournal/182378/one-people-possess-talent-manage.aspx>.
7 Harter, Jim, and Brandon Rigoni. State of the American Manager: Analytics and Advice for Leaders. Rep. Washington, DC: Gallup, 2015. Print.
8 Ibid.
9 Ibid.
10 Adkins, Amy. “Only One in 10 People Possess the Talent to Manage.” Gallup. Gallup, Inc, 13 Apr. 2015. Web. 24 Feb. 2016. <http://www.gallup.com/businessjournal/182378/one-people-possess-talent-manage.aspx>.
11 Harter, Jim, and Brandon Rigoni. State of the American Manager: Analytics and Advice for Leaders. Rep. Washington, DC: Gallup, 2015. Print.
12 O’Boyle, Ed, and Jim Harter. State of the American Workplace: Employee Engagement Insights for U.S. Business Leaders. Rep. Washington, DC: Gallup, 2013. Print.
Let’s Engage!
I’m Agent in Engagement Simpson…Gregory F Simpson.
Employee engagement is a critical mission. I hope I can count on your help! Subscribe to the RSS Feed to receive the latest intelligence/insights and/or register to make entries in the comments log.
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P.S. First contact? Welcome to the Agent In Engagement community. Explore and join fellow employee engagement operatives in targeting a known thief – alias: Disengagement. Together we can bring this thief to justice and make the world a better place for all companies and their employees.
Other recent Agent in Engagement data/reports by Agent Gregory F Simpson:
- Employee Engagement Intelligence Briefing: 2016.02.15 – 2016.02.19
- Veteran Employee Engagement Operative Insights: 02.15 – 2016.02.19
- Stop Talking About Discretionary Effort!
- Lent in a Business Context: Give Up Giving Up
- Office Politics: A Good Thing?
- Demonstrating Engagement Through an Infographic
- Top Employee Engagement Infographics of 2015