Of all the workplace relationships, the most significant is between managers and their employees. Managers affect employee retention more than any other factor. Employees with the best managers are 6 times more likely to remain on the job than employees whose managers are the worst at retaining staff. As one example of how this insight works in practice, big data research revealed that a company with 25,000 employees could save $2.3 million just by improving the performance of managers in the bottom quartile.
In this video, Evolv’s Vice President of Workforce Analytics, Michael Housman, Ph.D., shares actionable insights from a recent big data study on managers:
“Your manager is a stronger influence on your performance than you are.”
Since managers have such a profound impact on employee retention and business profitability, researchers asked: What impacts managers? A study of manager pay and tenure found that the more managers are paid the better their employees perform. Yet, contrary to conventional wisdom, manager tenure at a company did not lead to better employee performance. This may imply that managers who are hired from outside a company and well-compensated are more productive than managers who have received raises due to longevity with a company.
For more information on how big data insights are shaping the workforce, read the Q3 Workforce Report.