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Behind every stay: How helpful is the influence of managers on employee retention

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Let’s state the obvious. The world of work has undergone a massive transformation globally in recent years. Traditional office-based work models are no longer the standard norm As businesses transition to hybrid work models, the influence of managers on employee retention is even more critical.

Before delving into more detail on the importance of direct managers, let’s first define what we mean by this term. A direct manager is responsible for supervising and managing a group of employees. They are often the main point of contact for employees when issues arise and play a crucial role in ensuring each employee they are managing is working to their full potential.

What are the factors behind the influence of managers on employee retention?

Bridging the gap: One of the key reasons these managers are so crucial is their ability to bridge the gap between employees and the organisation. This role becomes even more essential in a hybrid work environment where maintaining effective communication is vital. They ensure that employees understand the organisation’s goals and objectives, and role and purpose within the company. Regular feedback and support from these managers help employees feel engaged and connected to their work.

Well-being: Direct managers also play a vital role in supporting employee well-being. New ways of working do not remove the legal responsibilities of employers to pay attention to workplace health and safety. Managers are well-positioned to identify when employees are struggling with their workload or experiencing increased stress. They can offer support and guidance, such as providing access to mental health resources or adjusting an employee’s workload.

Team morale: Maintaining team morale is also critical to retention. Direct managers can provide opportunities for team building and socialising. Regular team meetings, social events, and other initiatives help create a sense of community and belonging, boosting morale and productivity.

Development and growth: Encouraging employee development and growth is also essential. Only some people can work from home. Also, some recent studies tell us that those working away from the office can become less visible and may be overlooked for new projects or promotions. Direct managers can overcome the perils of “out of sight, out of mind” and provide:

  • tailored training and development opportunities,
  • guidance in identifying strengths and weaknesses,
  • and direction on advancing careers within the organisation.

This manager role ensures fairness and recognition of course growth for all team members regardless of WFH or not.

The need for organisations to back their managers

However, it’s crucial to recognise that not all direct managers are great managers. Some have been promoted based on tenure and previous success in different roles. Some are simply the last man standing in a team. Research shows that mediocre management is the number one reason people leave companies. Managing people is a complex task, and the complexity is further amplified in a hybrid work environment. Therefore, businesses must provide support and resources to direct managers.

Just as dentists require specialist tools to treat patients, managers need the right tools to lead and support their employees effectively. You may be curious about our range of practical, customised tools to help your managers succeed. As a first step, why not try the assessment yourself here to see what it looks and feels like?

Employee retention – how critical is the role of the direct manager?

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As we traverse this new world of work, one key area that needs attention is the role of the Direct Manager.

There’s been a seismic shift in how people work in the last few years. Indeed, the pandemic has driven millions worldwide to recognise that the traditional office-based work model is no longer the standard norm.

Direct managers have always been necessary for the workplace. Still, their influence is even more critical now as many businesses have moved to a hybrid work model.

In this blog, we’ll explore why a direct manager is essential in this new world of work. And we’ll look at their impact on employee satisfaction, productivity and retention.

What does direct manager mean?

Before we explore the importance of direct managers, let’s define what we mean by this term.

A direct manager is responsible for supervising and managing a group of employees.

Direct managers are often the main point of contact for employees when issues arise and play a crucial role in ensuring employees are working to their full potential.

 

The Critical Importance of the Direct Manager in Employee Retention

Clear communication is vital for effective direct management

One main reason direct managers are so crucial is that they act as a bridge between employees and the organisation. Effective communication is vital in any workplace, even more so when working remotely.

Direct managers ensure employees understand both:

  • the organisation’s goals and objectives and their role and
  • purpose within the company.

They also provide regular feedback and support. Therefore, assisting employees in feeling engaged and connected to their work.

Supporting employee well-being is a crucial aspect of direct management

Direct management is also crucial in ensuring employees’ well-being, even when working from home. With a blur between work and personal life, employers must pay attention to their workplace health and safety responsibilities. Employees should feel valued and supported by their employer. A remote work environment highlights this. Employees may experience feelings of isolation and disconnection from their team and organisation.

Further, being well-positioned, direct line managers more quickly identify when employees struggle with their workload or face increased stress. They offer support and guidance, such as providing access to mental health resources or adjusting an employee’s workload.

Maintaining team morale is the responsibility of the direct manager

Working from home can sometimes be isolating. Ensuring that team morale remains high is paramount. Direct line managers play a vital role in this area. Examples are providing opportunities for team building and socialising, even if done virtually. Regular team meetings, social events, and other initiatives promote a sense of community and belonging among employees. All this boosts morale and productivity.

Encouraging development and growth is another important responsibility of the direct manager

Finally, direct managers are essential in helping employees to develop and grow within their roles. This responsibility needs more emphasis in a hybrid working world where employees may interact less with colleagues and managers.

Direct managers provide:

  • training and development opportunities
  • guidance to employees in identifying their strengths and weaknesses and
  • direction on advancing their careers within the organisation.

The significant impact of Mediocre Managers

Research from SEEK tells us that mediocre management is the number one reason people leave companies. Let’s face it, managing people is complex. Add to it the complexity of hybrid working – and the degree of difficulty goes up a few levels.

How to support Direct Managers?

In summary, direct line managers need all the help they can get.

Dentists need specialist tools to treat patients.

So too, managers need the right tools to lead and support their people in each of their roles.

 

At, Great People Inside we offer a fantastic, cost-effective range of customised online tools for each individual. Our tools include development suggestions and guidance.

Reach out for help to be in the presence of more Magnificent Managers in your organisation.

 

Isn’t it more important to prioritise job fit over white vs blue collar?

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Historically, blue collar vs white collar jobs referred to manual labour jobs that involved physical work. In the 1940s, this classification was not only based on the job itself but also on social class. Examples of such occupations include those in the construction, trades, and manufacturing sectors.

 

Fast forward to today, and collar colours

Today, blue collar jobs form an integral part of the workforce for many organisations, regardless of the industry sector. These individuals serve as the backbone of a company, frequently working in physically demanding environments and can face heightened risk.

Although businesses must prioritise customer satisfaction, ensuring all employees are content and well-suited for their respective roles and company are equally important.

 

What are the advantages of fit for white v blue collar and all employees?

There are numerous advantages, even in collar colour roles such as blue collar vs white collar jobs. Let’s look at some benefits here.

Any improvement in productivity translates to increased profits regardless of collar colour

A contented team of workers can greatly enhance their own productivity levels. A cheerful workforce creates a favourable work atmosphere that inspires employees to put in extra effort, resulting in improved organisational productivity. As most business people know, any productivity boost translates directly to increased profits.

Keep your top people

Happy employees, regardless of blue collar vs white collar or another collar colour, can also help reduce employee turnover. A high employee turnover rate can cost businesses severely.

 

According to AHRI, employee turnover costs 1.5 times the employee’s salary. 

 

Better mental health across all collar colours for jobs

Today, mental health has become a top priority in all workplaces. Employees well-suited to their job roles tend to experience higher satisfaction levels and are more likely to maintain good mental health. These aspects ultimately result in a more secure work setting.

 

When employees are happy in their jobs, they tend to be more alert and have greater attention to detail. And so, the likelihood of workplace accidents or injuries is reduced. Providing a safe work environment is always a must for organisations.

 

How to hire the right candidate for blue collar jobs?

Modern psychometric assessments can predict role success with high levels of accuracy. But they are rarely used for wage-based or less-skilled roles due to perceived cost constraints in many instances.

 

Great People Inside has a solution to this issue for successful business outcomes. Our highly precise psychometric evaluations are unbiased and efficient in assessing candidates for all job levels. From entry-level to executive positions, from the machine room to the boardroom.

 

The GR8PI platform can design cost-effective assessments to precisely measure fit and what’s essential to each specific role. The result for people in companies is improved productivity, reduced employee turnover, and better mental health.

Are you aware of other collar colours?

In addition to the well-known blue collar and white collar jobs, several other types of jobs are distinguished by collar colour. Each is explained in an article written by Kelly Campbell.

  • Gold collar – Signifies white collar workers with higher skills and are in higher demand. These include doctors, engineers, lawyers, and pilots.
  • Red collar – Refers to workers that work in the government whose salaries come from the red ink budget. This category may also include farmers.
  • Pink collar – An outdated term used to describe sectors historically dominated by women, including nursing and secretarial work.
  • Grey collar – These jobs are often associated with the gig economy or freelance work. Examples of grey collar jobs include graphic design, web development, and writing.
  • Green collar – This is one of the newest additions which refers to jobs in the environment.

We’ve seen the effects. We encourage you to try GPI for blue collar and other roles to make a real difference to your company.

What’s the actual cost of replacing top performers at work?

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As a CFO or finance professional, to help determine what’s the actual cost of replacing top performers at work, what if I asked you to rank your team members from top to lower performers?

Your estimate will likely come up with numbers (give or take) that are approximately:

  • 25% of your team are high performers,
  • 50% are average performers, and
  • 25% are below par.

What distinguishes top performers at work?

According to a McKinsey study, high performers are 400% more productive than average performers. And the productivity difference might reach 800% in sophisticated professions such as management or software development. These outstanding performers have distinct cognitive, behavioural, and personality traits.

Identifying these traits and hiring outstanding individuals is likely to result in considerable financial rewards for your company.

These employees not only boost productivity and income production, but they can also improve:

  • staff turnover,
  • management workload, and
  • investor and consumer confidence.

A terrible hire could result in hidden costs, such as

  • lost corporate credibility,
  • greater stress, and
  • worse employee morale.

What’s the bottom line or actual cost of replacing your top performers at work?

The bottom line is that hiring the wrong person can have long-term implications for your organisation. So, getting it right the first time is essential. And it’s scary these costs are not captured in the P&L and that actual costs can show as staggeringly high.

Making another smart investment for your organisation

As a senior finance professional, you recognise the critical nature of making wise investments that yield a good return. However, in my experience, one area in which many firms frequently struggle is how they hire their people. That is, having a consistent replicable process across the organisation that results in the right outcome- a top performer.

Hiring the incorrect individual might cost you far more than you think, with estimates ranging from 30% to 250% of the employee’s compensation.

To solve these recruitment problems and significantly increase the hiring of top performers at work, our award-winning GR8PI assessments can help. The platform provides an easy approach to measuring and qualifying the attributes of high performers. Advanced analytics are employed for a thorough insight into a person’s cognitive ability, behavioural patterns, and professional interests and motivations.

As a result, making it simple to discover outstanding performers and avoid undesirable recruits and costs.

Investing in a recruitment strategy that easily and reliably identifies high performers is critical to the success of any firm. Senior executives we work with improved their ability to identify top performers by 300%.

Renatus Capital Partners, a private equity firm, says it best:

“We use GPI assessments for our own company and all our portfolio companies. Not only do they have tools they can customise for practically every HR situation but the diagnosis around same, advice on which tools to use and the outcomes are priceless.”

Mark Flood , Director – https://renatus.ie/

So, why not contact us today to learn more about how we can assist your company in identifying and hiring top performers?