Dr. Gleb Tsipursky – The Office Whisperer
Nirit Cohen – WorkFutures
Angela Howard – Culture Expert
Drew Jones – Design & Innovation
Jonathan Price – CRE & Flex Expert
- Gallup global report highlights the significant impact managers have on employee well-being and organizational performance globally.
- Higher manager engagement correlates with increased employee engagement, with three-quarters of managers and 70% of non-managers engaged in top-performing organizations.
- A strategic focus on manager hiring and development, integrating engagement throughout the employee lifecycle, and emphasizing well-being enhances employee livelihoods and boosts organizational performance.
Managers are much maligned in the workplace, but whether they are liked or not they are undoubtedly the ultimate influencers in the office.Â
A recent Gallup State of the Global Workforce report reveals 70% of employee engagement is linked to manager influence, underscoring the importance of management strategies that prioritize employee well-being and performance for sustainable organizational success.Â
With employee satisfaction now the primary goal of 51% of employers, there is growing recognition of the link between employee well-being, job satisfaction, and organizational success.Â
However, a significant gap remains between the impact of the most and least effective managers on employee engagement.
What does it take to be a good manager?
Effective managers lead with empathy and clarity, aligning individual efforts with organizational objectives and inspiring improved performance. Clear communication fosters productivity, while a collaborative culture encourages teamwork and innovation — essential for creative problem-solving in dynamic business environments.Â
During periods of economic instability or rapid technological advancement, the best managers can guide their teams through transitions, ensuring continued engagement and productivity.
Managers can also enhance job satisfaction and performance by granting employees autonomy rather than micromanaging. This approach works in both remote and onsite settings and fosters ownership, responsibility, and a positive work environment, leading to full engagement.
Effective managers also use data analytics to make informed decisions that enhance employee satisfaction, productivity, and well-being by identifying areas for improvement.Â
Leveraging IoT technologies also enables employers to monitor workplace conditions such as air quality, noise levels, and occupancy, proactively addressing these factors to reduce absenteeism, boost productivity, and improve retention.Â
Creating workplaces that optimize leveraging IoT technologies and employee well-being involves designing spaces with optimal lighting, adequate fresh air supply, and effective noise management.
In a recent Allwork.Space podcast, Erin McDannald, CEO of Lighting Environments Elevated, emphasized the crucial role of managers in advocating for building technologies that support these objectives.
Gallup’s Key Findings: Managerial Influence in the Workplace
Gallup’s State of the Global Workforce report draws on Gallup World Poll data collected annually in over 160 countries. The report encompasses responses from 2,336,570 employed individuals (surveyed from 2009 to 2023).
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The Gallup report indicates that employer-employee relationships impact workplace satisfaction by 70%, which is quite significant despite managers spending only 7% of their time managing people directly. Ineffective management results in disengaged employees, which has widespread economic implications globally.Â
Here are all three of the key findings in the area of managerial influence in the workplace:
1. Managers experience more negative daily emotions than non-managers, and are more inclined to seek new employment:
Managers generally experience more engagement at work and better life satisfaction than non-managers — enjoying higher compensation, status, and influence within their organizations, alongside peer support from colleagues.Â
Despite these benefits, managers also report higher levels of stress, anger, sadness, and loneliness, which significantly impact emotional well-being and increase their likelihood of leaving their jobs.Â
Across the U.S. and Canada, for example, 49% of managers stated a desire to leave their jobs. Considering their pivotal role in offering emotional support and guiding employees to mental health resources, initiatives promoting employee well-being must prioritize supporting managers (who could require substantial assistance themselves).
2. Higher manager engagement correlates with increased employee engagement (globally):
Across all nations, higher manager engagement correlates with increased employee engagement, as highlighted by Gallup’s research. Managers significantly influence non-manager engagement, with countries having highly engaged managers being twice as likely to have engaged non-managers.Â
Managers account for 70% of the variance in team employee engagement, underscoring their pivotal role in creating a positive work environment. Effective managers achieve engagement through goal-setting, regular feedback, and fostering accountability.Â
They also cultivate respectful, positive relationships and help employees find meaning in their work — enhancing productivity and job satisfaction.
3. In top-performing organizations, three-quarters of managers and 70% of non-managers are engaged:
Only 30% of managers and 23% of employees globally are engaged. However, leading organizations achieve significantly higher engagement rates, with 75% of managers and 70% of non-managers engaged — resulting in 14 engaged individuals for every disengaged one, far surpassing the global average.Â
Since 2020, shifts such as the rise of hybrid work and increased demands for autonomy have added complexity to people management. Additionally, the mental well-being of younger workers has emerged as a critical issue, prompting the need for more innovative management strategies.
Success Strategies: Managerial Focus in Leading Organizations
Many organizations studied by Gallup initially faced challenges with employee engagement, but successfully improved their outcomes through dedicated leadership strategies over time. Gallup’s research found that successful organizations focus on three critical areas:
- Prioritizing Manager Hiring and Development: There is a robust emphasis on selecting managers with natural talents for engaging their teams. These managers also excel as coaches, providing meaningful feedback and fostering team cohesion.
- Integrating Engagement Throughout the Employee Lifecycle: Employee engagement is incorporated into the organization’s business strategy. This comprehensive approach ensures engagement influences every stage — from hiring and onboarding to ongoing coaching, development, performance management, goal setting, team meetings, and daily interactions between managers and employees. Integrating employee engagement into the organizational culture fosters more cohesive and motivated workforces.
- Emphasizing Well-being: Organizations visibly and consistently support employee well-being through dedicated well-being teams and resources. These initiatives cover community involvement, mental health support, financial literacy, and physical health — aiming to create more supportive and holistic work environments.
By focusing on these areas, organizations not only enhance the lives of their employees but also significantly improve organizational performance.Â
Increasing employee engagement yields numerous positive outcomes, as highlighted by Gallup’s extensive research on highly engaged business teams. Engaged teams lead to:
Fewer Negative Outcomes:
- 78% reduction in absenteeism
- 21% reduction in turnover for high-turnover organizations
- 51% reduction in turnover for low-turnover organizations
- 63% reduction in safety incidents
More Positive Outcomes:
- 10% increase in customer loyalty and engagement
- 17% increase in productivity (sales)
- 13% increase in productivity (production and evaluations)
Greater Organizational Success:
- 23% increase in profitability
- 68% increase in employee well-being
These findings highlight the profound impact of engagement on organizational success, illustrating how investing in employee engagement initiatives can yield substantial benefits across various aspects of business performance and employee satisfaction.
