Insperity Study Reveals How Effective Managers Can Drive Business Success and Workplace Culture

Only 1 in 5 frontline employees say managers exceed expectations, despite nearly half of executives believing otherwise

Insperity, Inc. , a leading provider of human resources and business performance solutions, released a new study that uncovers a gap in how leaders and frontline employees view managers. Insperity’s new report, Cracking the Code on Manager Impact: Closing the Gap Between Perception and Performance, is based on a survey of 1,000 U.S. executives, managers and frontline employees*, and shows how misaligned views of manager performance can hurt culture, retention and business results.

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The Gap

Nearly half of executives surveyed say managers are doing an excellent job, but only 1 in 5 frontline employees agree. According to the research, executives are more optimistic about manager performance than the managers themselves, as only 34% of managers surveyed believe their performance exceeds expectations.

The research reveals three key barriers keeping managers from reaching their full potential:

  • Overwhelming workloads: Nearly one-third of managers say competing demands prevent them from focusing on high-impact leadership.
  • Excessive administrative responsibilities: When administrative tasks exceed 20% of a manager’s time, the risk of burnout rises significantly.
  • Insufficient leadership preparation: Many managers, especially first-time leaders, are promoted without the adequate training and support needed to lead effectively.

“Middle managers are among the most underutilized drivers of business performance,” said Kathy Johnson, Insperity executive vice president of strategic development. “These leaders translate vision into action, making them key to shaping the future of business. Companies that focus on developing middle managers unlock retention, growth and long-term resilience.”

Closing the Gap

When managers perform well, companies thrive. The research reveals:

  • Companies with high-performing managers are over 2x more likely to report business success.
  • Employees with managers who surpass their expectations are 4x more likely to understand and align with the company’s vision and goals.
  • Employees with effective managers are 5x more likely to report a healthy workplace culture – reinforcing the manager’s role in shaping the foundation of every organization.

The study identifies five key practices linked to stronger manager performance and overall business success:

  • Communication: Facilitate clear, two-way dialogue between leadership and employees to improve alignment and execution.
  • Development: Build team capabilities through coaching, feedback and training opportunities.
  • Empowerment: Provide clarity, resources and trust to enable employees to own their work and drive results.
  • Recognition: Acknowledge achievements in meaningful ways to boost morale and retention.
  • Culture-building: Foster an inclusive, values-driven environment where people feel connected and motivated.

Read More on Hrtech : Invisible Gaps in Employee Experience: What your HR Tech Metrics aren’t Capturing

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