New Research Reveals 19-Point Drop in Manager Effectiveness Over Four Years

RedThread Research, renowned human capital analysts, have released a new report titled “Manager Effectiveness: It’s Time to Fix This Problem,” revealing a significant 19-point decline in manager effectiveness over the past four years. This research builds on their earlier trends report, “Managers in 2024: Help Needed,” highlighting the urgent need for enhanced managerial support amidst evolving workplace dynamics.

1. Decline in Manager Effectiveness:

• Significant Drop: Manager effectiveness has decreased by 19 points since 2020.
• Current State: In 2023, only a third of employees reported their managers as highly effective.

2. Impact on Employee Metrics:

• Employee NPS: Employees with highly effective managers are 3.16x more likely to give a positive NPS score.
• Productivity: These employees are 1.8x more likely to report high productivity.
• Engagement: 1.7x more likely to be highly engaged.

3. Challenges Facing Managers:

• AI Adoption: Driving both hope and anxiety.
• Labor Practices: Increased scrutiny.
• Hiring Struggles: Mounting challenges and dwindling resources.

4. Opportunity for Improvement:

• Stacia Garr’s Insights: Co-founder and principal analyst emphasizes the opportunity to better enable younger workers.
• Organizational Role: Need for proactive support, always-on guidance, barrier removal, and trust-building.

5. Six Key Practices for Managerial Effectiveness:

• Always-On Direction: Providing constant guidance.
• Removing Barriers: Addressing obstacles employees cannot overcome.
• Building Trust: Establishing a foundation of trust between managers and employees.

6. Previous Research Insights:

• April Report: “Managers in 2024: Help Needed” highlighted struggles in fostering growth, communication, and innovation.
• Identified Issues: Reduced ability to remove barriers, help employees learn, and prioritize goals, impacting relationships and morale.

RedThread Research’s latest findings underscore the critical need for organizations to enhance managerial support to address the significant decline in effectiveness. By adopting the identified practices, companies can improve employee engagement, productivity, and overall workplace morale.

Additional Resources:

• Infographic: Fixing Manager Effectiveness in 2024
• Join the RedThread Community: Become a Member for exclusive insights and discussions on pressing industry challenges.