Jan Bruce
THE US is facing a looming manager collapse that is predicted to kick off a vicious cycle for organisations. As managers struggle, Gen Z sees the toll of the job and backs away - leaving fewer employees to rise into management roles. This puts more pressure on remaining managers.
At the same time, several years of manager redundancies and retrenchments have left fewer people taking on these responsibilities. In 2023 alone, middle managers made up over a third of all retrenchments. The remaining managers are under more pressure, with growing stress leading to higher rates of burnout.
Indispensable role
New research from meQuilibrium shows just how deep the manager shortage could become. In addition to higher expectations on their performance, managers experience 59% more emotional demands than their team members.
“Organisations can’t attain their goals for growth without resilient managers who have the skills to support their teams,” says meQuilibrium’s Alanna Fincke, SVP content and head of learning. “Employees who don’t feel supported by their managers are more than four times as likely to quit their jobs and twice as likely to report poor overall well-being. When this house of cards falls, it will impact the entire organisation.”
On the flip side, employees who feel strongly supported by their managers are more protected from psychosocial risks at work such as mistrust, conflict and excessive work pace. These employees are twice as likely to perceive that conflicts are resolved fairly and 2.6 times more likely to receive help when needed.
The manager role is indispensable for high workforce performance. But if today’s managers crash, who will be there to pick up the pieces?
‘No thanks’
The next generation of employees is showing little interest in the challenges of management. Despite their greater openness to change, a recent Robert Walters survey revealed that 72% of Gen Z respondents would choose an individual route to progression over managing others. About 69% say middle management is too “high stress” and “low reward”.
Even if Gen Z workers were looking for management jobs, research shows many don’t yet have the skills to handle the emotional turbulence of change that is part and parcel of managing teams. Compared to their older colleagues, Gen Z employees experience 34% higher change anxiety and 25% lower emotional stability in the face of change. This anxiety may be spurring them to self-select out of manager roles they could excel in.
To stop and reverse the draining of present and future manager talent, and prevent organisational growth from stagnating, leaders have to do two things. First, they have to change how their organisations support their managers. Second, they need to equip younger employees with the skills to handle change.
Psychosocial risks
The first key action would be to assess and address psychosocial risks, which are defined as characteristics of work design and management that negatively influence performance. They include high workload, poor work-life balance, workplace conflict, lack of control, lack of meaning at work and inadequate support. These risks are often measured as environmental impacts that affect teams, business units and entire workforces.
Managers are nearly 40% more likely to cite excessive workloads compared to non-managers. Almost as many report having insufficient time for tasks, and 34% are more likely to report needing to work at a very fast pace. These risks have both financial and human costs in increased absenteeism and potential worker’s compensation claims. Poorly managed psychosocial risk also leads to elevated mental health risks and a range of negative physical health outcomes, including cardiovascular disease, musculoskeletal disorders and diabetes.
A comprehensive psychosocial risk assessment - including mitigation strategies and support - is the clearest path to improving managers’ performance and experience, and changing how the rest of the workforce views the role.
Resilience support
Explicit policy decisions can help managers protect and promote their own mental and physical health and well-being. Examples include mandatory “disconnect” periods, sabbaticals or improving access to acute mental healthcare resources. Making sure managers have consistent, supportive check-ins with their own supervisors can help reduce isolation.
Leaders can also model and reinforce workplace norms that prioritise health. With these actions, companies set a positive example for the entire organisation while investing in the sustainability of their manager talent pipeline.
Comprehensive, evidence-based resilience programmes equip managers with practical tools to improve team interactions, communication and collaboration. Digital cognitive behavioural therapy tools can also help managers recognise and replace unproductive thought patterns with more effective alternatives.
As managers develop these skills and model them for their teams, they become better equipped to maintain clear communication channels, inspire collaborative problem-solving and guide teams through periods of change or uncertainty. Ultimately, investing in leader resilience translates to improved team performance, increased productivity and a more positive work environment that drives organisational success.
Organisations that take a systematic approach to supporting managers and Gen Z workers can end the vicious cycle. The key lies not in grand transformations, but in consistent and practical steps to embed the fundamental capabilities of resilience and support across the organisation.
* Edited from article first published in Fast Company US