Years ago, Gallup found that one of the most important decisions an organization can make is simply whom they name as a manager. Yet Gallup’s ongoing analysis suggests that organizations usually get it wrong. In fact,
Gallup finds that organizations fail to choose the candidate with the right talent for the job 82% of the time.
Delving deeper into their research reveals that managers account for at least 70% of variance in employee engagement scores across business units.
Today this variation is in turn responsible for severely low worldwide employee engagement. Beginning with two of Gallup Inc's large-scale studies in 2012 stating:
Only 30% of U.S. employees are engaged, while a staggeringly low 13% are engaged worldwide. Worse, over the past 12 years Gallup Inc's research demonstrate how these low numbers have barely budged.
Clearly the right managers matter, no matter the industry, size, or geography. Today's managers struggle to unlock the mystery of why performance metrics rise and fall widely and unnecessarily. But when managers do understand what drives performance, their organizations see about 48% higher profit than companies with lesser qualified managers, according to research studies such as Gallup.
The right manager can release the best from team members , according to sources such as the book "The Game of Work". Finding one manager, of course, is challenging, finding multiple managers across an organizations is even harder. How are your methods for finding managers working?
If great managers seem scarce, it’s because the traits involved are rare. Many studies have found that great managers can be sourced by uncovering the following five characteristics:
They motivate every single employee to take action and engage them with a compelling mission and vision.
They have the assertiveness to drive outcomes and the ability to overcome adversity and resistance.
They create a culture of clear accountability.
They build relationships that create trust, open dialogue, and full transparency.
They make decisions that are based on productivity, not politics.
Gallup’s research reveals that about 1 in 10 people have all these five (5) necessary traits to manage people.
Unfortunately, the selection methods used in today's management practices add to inefficiency for finding these rare managers. While many of today’s managers in existing roles simply do not have any of the talent traits highlighted. Even worse, the inefficiency in identifying talent costs organizations hundreds of billions of dollars yearly.
The good news
is management talent exists in every company now – the person is often hiding in plain sight.
Finding great managers doesn’t depend on market conditions or the current labor force. Each team has someone who can manage, when you know what to look for. Chances are it is not the manager in place, given many research findings. More likely, it is an employee with high leadership potential waiting for discovery.
For too long, organizations have wasted time, energy and money hiring the wrong managers and then trying to train them to be who they’re not. Gallup’s research indicates few people have all five of the traits for good management. Yet when organizations increase their number of talented managers and double the rate of engaged employees, they achieve, on average, 147% higher earnings per share than their competition.
Perhaps it is time for change. For the first time, there is evidence for company executives to sign off, for finding the right talent. If so bEffective can help you identify these traits, these managers (those already on your team) and help you develop your future success with them.