Are Your Managers Holding Back Company Productivity and Retention?

Now more than ever, the relationship between an employee and their manager plays a significant role in determining job satisfaction. However, a recent study by Achievers Workforce Institute (AWI) revealed that 75% of employees consider their managers to be ineffective.

According to Dr. Natalie Baumgartner, an engagement and culture thought leader, evangelist and Head of AWI, this gap is crucial to address because employees who would recommend their manager are 64% more likely to be engaged and 75% more likely to feel a sense of belonging than the average.

“The same research has shown a strong positive correlation between manager effectiveness and a sense of belonging among employees,” Dr. Baumgartner shared with HR Daily Advisor. “Those who would recommend their manager are almost twice as likely to report a strong sense of belonging compared to the average and over five times more likely than those who would not recommend their manager.”

Dr. Baumgartner notes that ineffective management can lead to unhappy employees, which has significant implications for an organization and its culture, including reduced morale, productivity, and turnover.

“An ineffective manager can also hinder career growth and skill development,” she adds. “However, there is a clear path to empower manager effectiveness. Achievers has identified four factors to help managers improve their impact:

• Contact: Regular, meaningful 1:1 meetings with their team members to support their success.
• Recognition: Regularly providing recognition to team members to make them feel valued.
• Coaching: Providing coaching to help team members be more effective in their roles.
• Professional development: Supporting team members’ personal and professional development goals.”

In this Q&A, Dr. Baumgartner shares further insights about the study’s findings, manager recognition, manger ineffectiveness, and steps to create a more inclusive and positive work environment.

Here’s what she had to say.

It’s mentioned that 19% of managers reported never receiving manager training. How does this lack of training impact their ability to support their employees effectively? 

DNB: There seems to be a huge disconnect between what HR leaders believe they are providing to their company managers and what those managers’ report they are actually receiving. One shocking reality revealed in this report was that more than 50% of HR leaders say they provide quarterly manager training but only 33% of managers say they receive quarterly training – and 19% of them say they never received training at all!

There is no doubt that managers need thoughtful, ongoing training and support to be able to lead their teams effectively. Without it, they are more likely to struggle with important tools such as communication and conflict resolution, which can lead to poor employee morale and engagement and dysfunctional team dynamics. The organization and the industry as a whole must ensure that everyone gets the support they need to do their jobs effectively, particularly managers. Though it’s critical that people leaders help their teammates grow professionally and personally, managers identify professional development as the biggest gap in their training.  That’s why it’s up to HR and company leaders to provide the support managers need so they can effectively guide their team’s careers.

The study mentions an increase in representation for women and minorities at the middle manager level. Can you provide more details on this development? How do the study’s findings indicate that women face unique challenges in the workplace, particularly in relation to manager recognition?

DNB: The increase in representation for women and minorities at the middle manager level is a positive development, indicating progress in diversity and inclusion efforts. However, the study suggests that women and people who identify as black, indigenous or people of color (BIPOC) still face challenges in gaining recognition from their managers, which may relate to biases or gender-related obstacles.

According to Achievers Workforce Institute (AWI) data, women in the workplace often feel undervalued, unsupported and overlooked. In fact, they are 54% more likely to report that their manager never recognizes their efforts. Even when women are promoted to management roles, they are less likely to progress beyond middle management compared to their male counterparts, who are 39% more likely to be managers of managers. While there has been an increase in representation at the middle management level, progress has been slower for senior leadership positions. Women do not feel the same sense of belonging as men in the workplace, which affects their productivity, engagement, commitment, and even their sense of safety. This situation highlights a serious gender equality issue in leadership positions, which not only harms workplace camaraderie but also affects productivity levels.

This underscores that, although there has been progress in advancing women to managerial roles, there is still more work that needs to be done. For example, while organizations are granting women greater responsibilities, many women have only recently started to explore leadership roles, and they are still less likely than men to assume major management positions. Specifically, the AWI report finds that women are 70% more likely than men to manage a team of just one to two people, and they are 34% more likely than men to have held a manager position for three years or less.

We know that recognition is a crucial driver of engagement and belonging. However, according to AWI data, just 15% of women are recognized weekly, compared to 21% of men, and 17% of women report never receiving recognition. Companies that utilize recognition technology platforms can track who gets recognized and how often, increasing their ability to leverage recognition to drive a sense of belonging and recognition among marginalized groups, including women. This impact is improved using platform nudges. A nudge is an aid or signal that provides information to help leaders effectively utilize consistent tactics and technology on a regular basis. Serving as a real-time coach, nudges can point out managers’ unconscious biases in recognition habits to create a more equitable work culture.

Diversity, equity, inclusion, and belonging are not just trendy buzzwords. Studies show that companies with diverse teams outperform those without. However, the American Psychological Association’s 2023 Work In America Survey revealed Black (39%) and Hispanic (34%) workers were more likely to report feeling a lack of support from their employers due to an aspect of their identity, such as race or ethnicity, gender, sexual orientation, ability status, or age, compared to their White (27%) coworkers.

To create effective and lasting change that matters, employers should prioritize programs that create an environment where women and BIPOC feel welcomed, recognized, included, supported, and connected at work. These five essential pillars of belonging have a positive and significant correlation with a stronger sense of belonging, which should be a clear call to action for business leaders. 

Additionally, BIPOC employees seek opportunities to interact with their colleagues in real time. They are 44% more likely to attend virtual networking events during work hours, 30% more likely to support occasional in-person events at the office, and 29% more likely to use technology to build relationships with their coworkers. As a visible minority, finding ways to connect with coworkers is essential for creating a sense of belonging and fostering inclusion. When employees feel included and connected, they are more likely to stay longer and put in more effort. 

Considering this data, what are some actionable steps that companies can take to improve the overall effectiveness of their managers and create a more inclusive and positive work environment?

DNB: In today’s workforce, creating a desirable work environment is more important than ever. Research shows that happy employees are more productive, creative, and loyal. As such, it is critical for managers to play an active role in cultivating a positive work environment that provides growth, recognition, and encouragement. To empower managers in these areas, HR leaders must provide them with consistent training, clear success metrics, effective feedback loops, and career advancement processes.

To improve manager effectiveness and create a more inclusive work environment, companies can: growth, recognition, and encouragement. To empower managers in these areas, HR leaders must provide them with consistent training, clear success metrics, effective feedback loops, and career advancement processes.

To improve manager effectiveness and create a more inclusive work environment, companies can:

1. Provide comprehensive manager training programs built around the four factors that AWI research identifies as central to an effective manager: coaching, professional development, recognition, and contact – while also encouraging diversity and inclusion initiatives at all levels.
2. Collect feedback and conduct performance evaluations regularly – and most importantly, act on the feedback.
3. Foster a culture of praise and appreciation.
4. Support work-life balance and employee wellbeing.
5. Address bias and promote fairness in promotions and opportunities.

In conclusion, if you had one message that you hope would resonate with the community, what would that message be?

DNB: Manager effectiveness is a cornerstone of a thriving workplace, impacting everything from employee morale to productivity and innovation. Effective managers not only ensure that tasks are completed efficiently but also foster a culture of inclusivity and diversity. Inclusivity is crucial because it brings together people from various backgrounds, experiences, and perspectives, which can lead to more creative problem-solving and better decision-making. When managers prioritize inclusivity, they actively seek out diverse voices, provide equal opportunities, and create an environment where everyone genuinely feels valued and heard.

To enhance manager effectiveness and promote inclusivity, organizations can implement several strategies. First and foremost, they should provide comprehensive training to managers, period. This training should equip them with the skills to also recognize unconscious biases and create fair and equitable processes. Additionally, organizations can establish clear diversity and inclusion goals, hold managers accountable for progress, and encourage open communication where employees can voice their concerns without fear of retribution. Furthermore, fostering an inclusive work environment is a collective effort that involves every employee. Encouraging empathy, active listening, and respect for differing viewpoints among all staff members is essential in creating a workplace where diversity is celebrated and inclusivity shines. At the end of the day, companies cannot deny one key truth – effective managers play a pivotal role in driving these initiatives and setting the tone for a workplace where everyone can thrive.

 

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