The numbers don’t lie: Frontline managers have a major impact on business success.
The impact that frontline managers have on an organization’s overall performance and results is significant, especially when you consider that, nationwide, they are directly responsible for 8 out of 10 employees in the workforce. Yet, in many organizations managers on the frontline feel undervalued, underdeveloped, and overworked; and their levels of engagement show it. Gallup research has found that only 35% of managers are engaged, meaning they are enthusiastic about and committed to their work, their people, and the organization.
This is concerning because manager engagement has a direct impact on both the engagement levels of the employees they manage and the success of the overall business. The studies by Gallup revealed that managers account for 70% of the variance in employee engagement across business units and that employees who are supervised by highly engaged managers are 59% more likely to be engaged. Only one in five employees say they are managed in a way that motivates them to do outstanding work.
Managers account for 70% of the variance in employee engagement across business units.
The linkage between the way employees are managed, the engagement level of those employees, and the business outcomes that result has been studied and reported extensively.
The most recent Gallup report showed major differences in business outcomes between the top- and bottom-quartile organizations ranked by employee engagement. Those businesses in the top engagement quartile enjoyed:
- 10% higher customer loyalty
- 23% higher profitability
- 18% higher productivity
- 18% lower turnover (in high turnover organizations)
- 64% fewer safety incidents
- 81% lower absenteeism
- 28% less shrinkage
- 41% higher quality
These results speak for themselves.
Organizations in the top quartile of employee engagement have made engaging their workforce a strategic priority for managers at every level of the organization, and are proof of what’s possible when you put your people first. These impressive numbers give further validation that employee engagement (with a special focus on your management) pays a huge return on investment.
If you’d like to talk about how to better engage your frontline managers and employees, please reach out! We’d be happy to help you the same way we’ve helped brands like Wendy’s, Chick-fil-A, Panera, Hilton, and many others.