Key to Organizational Success: The Right Manager

Are you a great manager? If so, you’re amongst a small minority of individuals who work for companies in Employee-Engagement - April 9th the United States.  If you are not a great manager (yet), keep reading.  There is a recipe of talents that great managers possess and it is not as complicated or illusive as you might imagine.

The research on this topic (done by the Gallup Organization) was recently reported in the Harvard Business Review (HBR).  It outlines both the importance of good managers and the scarcity of their existence in business world.

Gallup has found that one of the most important decisions companies make is simply whom they name manager. Yet our analysis suggests that they usually get it wrong. In fact, Gallup finds that companies fail to choose the candidate with the right talent for the job 82% of the time. 

Managers account for at least 70% of variance in employee engagement scores across business units, Gallup estimates. This variation is in turn responsible for severely low worldwide employee engagement.

Gallup reported in two large-scale studies in 2012 that only 30% of U.S. employees are engaged at work, and a staggeringly low 13% worldwide are engaged. Worse, over the past 12 years these low numbers have barely budged, meaning that the vast majority of employees worldwide are failing to develop and contribute at work.

So, high-performing managers cause employees to increase their engagement in their day-to-day work. That begs the question: Why is employee engagement so important?   HBR goes on to explain:

Gallup has discovered links between employee engagement at the business-unit level and vital performance indicators [such as] customer metrics, higher profitability, productivity, quality (fewer defects), and lower turnover…. When a company raises employee engagement levels consistently across every business unit, everything gets better.

A negative chain reaction seems to be at play in most companies.  Employees (agents) who are disengaged cause companies to perform poorly, and employee (agent) disengagement is primarily caused by low-performing managers.

The purpose of this WorkPuzzle is not to beat up on managers.  Even if they wanted to do so, most real estate companies would have a hard time replacing their existing managers with higher-performing alternatives.

In most cases, it would be a better strategy to help the managers who are already on the job make improvements.  More specifically, these developments should be focused on the task of improving employee engagement.

Gallup outlines five critical talents that good managers possess as it relates to increasing employee engagement:

They motivate every single employee (agent) 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.

If you’re a manager, review this list and take inventory of your day-to-day actions.  Are these the behaviors you find yourself doing?  If not, how can you start to focus your attention on these important tasks.  Remember, these are the tasks and traits of managers who manage highly engaged agents.

If you’re managing managers (owner, general manager, regional VP, etc.), set the example by making these traits part of your management culture.  Then coach your managers to take on these traits as they manage their own teams.

As a result, you’ll hopefully have more engaged agents who will produce the business metrics that make your company more successful.  That’s a purpose everyone can get behind.

 


BenHessPic2011Editor's Note: This article was written by Ben Hess. Ben is the Founding Partner and Managing Director of Tidemark, Inc. and a regular contributor to WorkPuzzle.