Increase Employee Engagement

The employee-manager relationship determines up to 70% of an employee’s engagement, according to Gallup. Engaged employees are the key to company performance. Companies with highly engaged teams outperform peers by 147% in earnings per share. In their 2017 global study, Gallup finds that only 15% of employees are engaged at work. And an ROI analysis from The Engagement Institute shows that disengaged employees cost the US economy up to $550 billion annually.

Lower stress levels and increase retention

3 out of 4 US employees say that the most stressful part of their job is their manager. Stress costs US businesses roughly $300 billion a year as a result of absenteeism, reduced productivity levels, and employee turnover, according to the American Psychological Association.

 

50% of employees said they left their job to get away from a bad manager. Studies by the Hay Group estimate the cost of replacing employees to be between 50% and 150% of annual salary.

Increase Employee Well-Being

People can’t be happy in life if they don’t have a good relationship with their manager. As Clayton M. Christensen wrote:

 

“In my mind’s eye, I saw one of my managers leave for work one morning with a relatively strong level of self-esteem. Then, I picture her driving home to her family 10 hours later, feeling unappreciated, frustrated, underutilized, and demeaned. I imagined how profoundly her lowered self-esteem affected the way she interacted with her children. The vision in my mind then fast-forwarded to another day, when she drove home with a greater self-esteem – feeling that she had learned a lot, been recognized for achieving valuable things, and played a significant role in the success of some important initiative. I then imagined how positively that affected her as a spouse and a parent. My conclusion: Management is the most noble of professions if it’s practiced well. No other occupation offers as many ways to help others learn and grow, take responsibility, be recognized for achievement, and contribute to the success of a team.”