How Effective Managers Drive your Bottom Line
Managers play a pivotal role in determining the overall success of a business. While it’s often said that employees leave managers, not companies, this adage only scratches the surface of a manager’s influence. Beyond fostering a positive workplace culture, effective managers have a significant impact on employee retention, engagement, and, ultimately, the bottom line. Understanding and supporting your managers is essential to creating a high-performing, sustainable business.
The Impact of Good Management on Retention
Recent research underscores the importance of having supportive managers. Employees with strong, engaged managers are more than twice as likely to stay with their company compared to those who report to disengaged or ineffective managers. In contrast, teams led by managers who lack the time or skills to be fully supportive experience a steep decline in retention rates. With turnover costs climbing higher each year, improving managerial effectiveness can result in substantial financial savings.
Recent research underscores the importance of having supportive managers. Employees with strong, engaged managers are more than twice as likely to stay with their company compared to those who report to disengaged or ineffective managers. In contrast, teams led by managers who lack the time or skills to be fully supportive experience a steep decline in retention rates. With turnover costs climbing higher each year, improving managerial effectiveness can result in substantial financial savings.
In today’s competitive job market, where over half of employees consider leaving their roles, businesses that prioritise effective management can significantly reduce turnover. Retaining top talent not only saves on recruitment costs but also boosts morale and preserves institutional knowledge.
Managers as Catalysts for Engagement
The correlation between management and employee engagement cannot be overstated. Studies show that 70% of the variance in team engagement is directly attributed to the manager. Engaged employees are more productive, more creative, and more committed to their roles, driving better business outcomes. Conversely, disengaged employees contribute to a significant portion of lost productivity, costing companies trillions annually.
The correlation between management and employee engagement cannot be overstated. Studies show that 70% of the variance in team engagement is directly attributed to the manager. Engaged employees are more productive, more creative, and more committed to their roles, driving better business outcomes. Conversely, disengaged employees contribute to a significant portion of lost productivity, costing companies trillions annually.
For organisations striving to enhance engagement, focusing on manager training and support is essential. By equipping managers with the right tools and skills, businesses can create an environment where employees thrive, leading to increased productivity and profitability.
Overcoming Obstacles to Effective Management
Despite their critical role, many managers are overwhelmed by their responsibilities. The shift to remote and hybrid work, combined with the pressures of managing employee well-being, has left over half of managers feeling burned out. Without adequate training and support, these managers struggle to provide the necessary guidance and motivation to their teams.
Despite their critical role, many managers are overwhelmed by their responsibilities. The shift to remote and hybrid work, combined with the pressures of managing employee well-being, has left over half of managers feeling burned out. Without adequate training and support, these managers struggle to provide the necessary guidance and motivation to their teams.
Investing in manager enablement—through training programs, technological support, and time management strategies—is key to overcoming these challenges. When managers are empowered, they, in turn, empower their teams, leading to a virtuous cycle of engagement, performance, and profitability.
Managers are the linchpin of a successful business, driving employee retention, engagement, and overall performance. By investing in their development and providing them with the necessary resources, businesses can unlock their full potential, leading to a stronger bottom line and a more resilient organisation.
