A recent study found that middle management has a bigger impact on bottom line than some people might expect. Getty Images
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Executives have been flattening their org charts in recent months, but a survey found that middle management is more important to bottom line than some expected. In fact, they are “business imperatives,” according to a recent analysis by McKinsey & Company.
“Organizations with top-performing managers deliver several times the five-year total shareholder return (TSR) of organizations with average or below-average managers,” the report’s authors wrote.
This may come as a surprise to some leaders who have chosen to scale back hiring of middle managers to drive efficiency and cost savings. Meta announced in March that it would lay off another 10,000 employees in 2022, following previous layoffs.
Chief Executive Mark Zuckerberg said the job cuts “remove multiple layers of management and create a flatter organization” while increasing efficiency. But experts say employers should offer middle managers: more Secure resources instead of retreating. Middle managers often act as the nerve center of the company, supporting employees in ways upper management cannot.
“CEOs and other executives surprised by the magnitude of this impact may consider the results of decades of organizational research that show managers are one of the biggest, if not the biggest, factors in employee workplace experience and satisfaction. The authors point out strategies that HR leaders should adopt to reinforce the value of middle management to their organizations.
— identification “The magical number of employees a manager can oversee to achieve optimal effectiveness and efficiency.” This figure may vary from organization to organization.
— create and Reward managers for a specific set of behaviors they want reflected in the organization.
— offer Managers will gain further development opportunities and a sense of purpose within the organization.
— Established Accountability measures that strengthen the image of effective managers within the company.
Amber Burton
amber.burton@fortune.com
@amber burton
reporter’s notes
The most compelling data, quotes and insights from the field.
Introducing Gen Z’s new workplace term “lazy girl’s job.” Young workers are pushing back against the trend of hustle and bustle and burnout, seeking jobs with better work-life balance and less stress. These are typically non-technical tasks that require little interaction with colleagues and are repetitive tasks such as replying to emails or creating documents from templates.
“We look at basic factors such as safety (no physical risks), flexibility, good benefits, a base salary that covers living expenses, and minimal stress,” they wrote. luckof Jane Tear and Rachel Singh.
around the table
A roundup of the most important HR headlines, studies, podcasts and long read articles.
– The pandemic has revolutionized the workplace, but “presenteeism,” the tendency to work long hours and be always available regardless of productivity, remains entrenched in many workplaces. BBC
– A new study finds that while most CEOs and boards have increased support for their companies’ DEI initiatives over the past 12 months, mid-level executives have not fully participated. world 50 group
– Remote workers are making workday breaks more meaningful by replacing scrolling on the phone with housework and exercise. wall street journal
water cooler
everything you need to know luck.
AI stands at the top. Theoretically, AI will someday Carry out all duties of the CEOHowever, there are some significant cultural hurdles to overcome before it becomes widely accepted as an executive replacement. —Jeff Colvin
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Penny for protesters. Los Angeles fines Universal Studios $250 prune a tree That would have saved Hollywood’s strikers from the scorching heat last week. — Chris Morris
dress down. Some employees may be tempted to break with the traditional office dress code and ditch their shorts as temperatures rise. But a recent poll found that 41% of him in the US think it’s never appropriate to wear shorts to the office. —Chloe Berger
