People managers are the cornerstone of any successful organization, serving as the link that actively and agilely balances the changing needs of the people and the business. Here are four reasons why investing in their development is one of the most significant strategic moves a business leader can make.
1. A Key Influence on Employee Mental Health and Well-Being
Employees today expect businesses to prioritize their well-being. In fact, seven in 10 workers say people managers have a significant impact on their mental health — on par with their partner or spouse, and more significant than the influence of their doctor (51%) or therapist (41%). This statistic underscores the profound role managers play in shaping the day-to-day experiences and well-being of their teams.
However, there is a noticeable gap between managers’ intentions and employees’ perceptions. One-third of employees reported that their manager does not fully recognize the impact they have on team mental well-being, and a substantial number expressed a desire for their organization and managers to become more supportive. While managers often feel confident in their abilities, there is a disparity in employee confidence that suggests a need for targeted training and support to equip managers with tools to positively impact their teams’ well-being.
2. Drivers of Learning, Career Development, Upskilling and Reskilling
Blue Beyond’s latest research shows that learning and career development, along with upskilling and reskilling, have recently become top priorities. More than nine in 10 survey respondents believe skills development and training is important for their company to thrive and 91% say learning and career development are important to them personally. That’s up from 75% and 77%, respectively, from our 2021 study.
People managers are critical to modeling a growth mindset — the belief that a person’s abilities can be improved through effort, learning and persistence — and making development opportunities accessible. Several research studies indicate that employees are more likely to stay with companies where managers provide clear career paths and encourage ongoing training, upskilling and reskilling. Managers who support employees’ goals for development foster loyalty and build a “Deep Trust and High Expectations®“ culture characterized by psychological safety where challenges are viewed as opportunities to learn, make mistakes and grow.
3. The Foundation of Inclusive, Positive Workplace Cultures
The importance of people managers in creating a supportive and productive workplace culture cannot be underestimated. A recent Gartner survey found that 77% of employees say manager support is more critical than ever to build connections, foster purpose and improve motivation within their teams — making employees feel seen, valued and engaged.
This is reflected in Blue Beyond’s latest research as well, with 93% of all respondents saying effective people managers are an important factor for building and sustaining a high-performing workplace culture. However, just 24% of knowledge workers strongly agree that their company actually has effective people managers.
Additionally, remote and hybrid employees report higher levels of management effectiveness than in-office workers, with 85% of fully remote and 83% of hybrid employees rating their managers as effective compared to 75% of in-office employees. This suggests that flexible work arrangements may foster an environment where managers focus more on effective management across the organization.
4. Catalysts for Organizational Success
An overwhelming majority of employees and leaders agree that people managers are essential for organizational success. Recent research from McKinsey shows that having more top-performing middle managers leads to much better financial outcomes. Our research data echoes that sentiment, with 89% of all respondents believing people manager capabilities are crucial for their company to thrive now and in the future.
Yet, there’s still so much room for improvement. While more than eight in 10 business and HR leaders express confidence in their company’s people managers, only 63% of knowledge workers share this confidence. This disparity emphasizes that investment in people manager development could greatly enhance employee confidence and engagement, driving organizational performance in the process.
It’s clear that a paradigm shift is necessary in how we perceive and invest in people management. It must become less a role and more of a practice with a repertoire of capabilities and skills that are seen as a distinct and valued vocation. In today’s competitive landscape, building people-leaders’ capability to shape culture and spur innovation is not only wise — it’s essential to building a future-ready organization where both the business and the people can thrive.
Cheryl Fields Tyler is founder and CEO of Blue Beyond Consulting, a boutique management consulting firm focused on the people side of business, taking an integrated approach to culture, talent, communications, leading and managing people, change management, and organizational effectiveness. A sought-after advisor, Tyler is also lead author of Blue Beyond’s latest study, “Winning on the People Side of Business: Research, Insights, and Recommendations.”
