Manager Effectiveness

What is Manager Effectiveness?

Manager effectiveness is the level of a manager’s ability to achieve their individual and team goals while also mentoring, developing, and engaging their direct reports to do their best work. Essentially, it measures an individual’s likelihood of being or becoming an inspiring leader and role model for their organization who drives business outcomes.

To measure this ability, it’s necessary to define the qualities or traits of “top talent” that managers need. While leadership qualities can be company-specific, there are some shared characteristics that inspiring managers typically possess. At Perceptyx, we believe these traits fall into five categories: competence, decisiveness, empathy, openness, and appreciation.

If your company has hired a manager who has all of these traits, then you’ve far exceeded the norm! Recruiting and hiring someone with all of these qualities is rare. In fact, the Harvard Business Review outlines how companies choose the right leaders only 18% of the time. Given this, most organizations need a solution to help managers know how they’re performing and what they need to do differently - for their own growth and their company’s.

Why Is it Important to Define Manager Effectiveness?

Given that many organizations grapple with employee burnout, attrition, hybrid work strategies, as well as a potential recession, it’s become even more critical for companies to define the traits of an inspiring leader. Once your company defines these, you can measure the extent to which your managers already possess them. Then you can acknowledge those top managers who model leadership for your company. This gives other managers a clear understanding of what leadership looks like and also demonstrates appreciation for managers meeting these criteria. Together, this clarity and positive recognition can drive retention.

Defining these qualities also helps managers recognize where they need to improve or change behaviors. This tells them what they need to do next, and helps them be accountable for these actions. This clear definition of their skill gaps gives them a north star to aspire to, and a roadmap of clear steps to reach it. Having this intelligence also helps the HR and learning and development team know which managers need support most, where to focus in terms of education and behavior change, and what resources will advance them forward.

Giving managers a clear definition of what they need to succeed also demonstrates the company’s commitment to employee growth. A 2022 survey by Prudential reported that 80% of job hunters say that growth opportunities are a factor driving their job search. Therefore this commitment to developing manager effectiveness can help attract, hire, and retain top talent.

Knowing exactly which traits are needed to advance improves the overall employee experience—and therefore engagement—for your company. Having this definition focuses the work for:

1. Managers showing the most leadership potential
2. Managers who need further development
3. HR and learning and development teams who support both of these groups

Furthermore, developing inspiring leaders also improves the experience for everyone working with those ideal managers. A Perceptyx study with a Fortune 500 industrial supply company showed a 50% increase in the odds of a team member being disengaged when reporting to a disengaged manager. It also showed an 80% increase when reporting to a manager who didn’t even complete the survey.

How Does We Measure Manager Effectiveness?

Measuring manager effectiveness is crucial for fostering leaders who positively impact business outcomes through enhanced people experiences. Our approach employs a robust 360 Feedback functionality, allowing managers to gauge their effectiveness in alignment with your organization's leadership competency model. Additionally, our Intelligent Nudges feature provides timely, AI-driven advice based on insights from feedback, supporting continuous improvement and leadership development.

Our 360 Feedback solution is designed to help managers identify areas of strength and opportunities for growth. It provides comprehensive feedback from a range of sources, offering a well-rounded evaluation. This process not only aids in recognizing skill gaps but also highlights practices and behaviors that contribute to a manager's success in fostering team collaboration and trust.

To accurately measure manager effectiveness, our team develops surveys that capture the authentic experiences of those working with a manager, alongside identifying unconscious behaviors affecting their influence (i.e., blindspots). Our surveys focus on several critical aspects, including job clarity, performance feedback, evaluation fairness, recognition of accomplishments, and support for employee development.

Respondents rate their experiences with statements like:

“My manager shows respect for employees.”

“My manager’s behavior reflects company values.”

“I feel comfortable approaching my manager for discussion.”

“My manager seeks ideas from employees and responds to them.”

“My manager promotes teamwork.”

These responses, gathered via a Likert scale and supplemented by open-ended questions, guide our development programs towards enhancing managerial success.

Upon survey completion, our analytics engine compiles the feedback into personalized reports, pinpointing performance barriers and reinforcing successful behaviors. These insights are easily accessible, ensuring that managers, administrators, and coaches can act on them promptly.

How Can Companies Enhance Their Manager Effectiveness?

Improving manager effectiveness requires a tailored, scalable solution that supports managers across various work environments, including hybrid and digital settings. Our 360 Feedback functionality provides a foundational step for managers to assess and enhance their effectiveness, offering a clear development pathway. By incorporating feedback from diverse sources, we facilitate leadership growth and organizational development.

Intelligent Nudges further augment this process by delivering targeted, AI-powered suggestions that encourage managers to adopt behaviors that boost team motivation and productivity. This feature draws on cutting-edge resources to provide real-time guidance, complementing traditional coaching methods by fostering continuous behavioral adjustments.

Choosing Your Manager Effectiveness Solution?

The ideal manager effectiveness solution is adaptable, built on deep expertise, and supported by a dedicated success team. It should not only fit your current competency model but also evolve with your organization's needs. Our solution integrates 360 Feedback and Intelligent Nudges to provide a comprehensive view of managerial impact, connecting leadership effectiveness to broader business strategies and outcomes. This holistic approach ensures that managers receive the insights and support necessary to lead effectively, thereby enhancing overall engagement, well-being, and organizational health.