Request a demo
BetterUp
Request a demo

Managers have a strong effect on team performance, for better or worse

November 17, 2021 - 5 min read

Stressed out manager riding on train

Jump to section

What the data say

Why it matters

Managers are the fulcrum of any organization. They operate in that high pressure, middle area between employees and executives — managing directives from above while offering support and leadership to those below. And more keeps getting added to their plate.

The competition for top talent has placed a whole new set of expectations on them. From creating and maintaining a positive culture, to ensuring employees have proper work-life balance, managers have been left carrying the bag when it comes to crafting the employee experience.

And over the last two years, managers have had to bear the brunt of COVID-19’s impact on the workplace. In addition to maintaining operational efficiency and updating processes amidst lockdowns and social distancing mandates, they’ve also stepped up to support their employees’ emotional needs. 

Today’s managers not only have to understand and manage what their employees do, they also have to understand and manage how they feel. Anxiety, depression, loneliness, burnout, and stress have affected everyone during the pandemic, but managers are often the ones employees turn to help them cope.

So what happens when managers are the ones that are struggling? How are teams impacted by leadership that lacks key qualities like resilience, cognitive agility, or strategic thinking? And most importantly, what can organizations do to equip their managers to better handle the challenges that come with the job?

What the data say

Across 1600 teams, we looked at how direct reports view their managers and how that shows up in team outcomes. What we learned is that managers are amplifiers, and any struggles they experience seem to have a ripple effect that can quickly reverberate across their teams.

ripple effects from leaders causes workers not to thrive

When teams perceived their leader had low resilience, overall team performance fell by -23%.

Leaders with low cognitive agility — the ability to shift perspective and see the world not through black and white — had on average teams with 29% lower agility themselves.

A lack of strategic thinking, a hallmark for top managers, impacted team innovation by as much as -23%.

And unsurprisingly, leaders with low emotional regulation, the ability to exert control over one's own emotional state, lost the trust and respect of their teams. Manager net promoter score tanked by -20%. 

Why it matters

Organizations must recognize that managers are the lynchpin of an engaged, productive, and effective workforce. They exert strong influence — either positive or negative — over key dimensions of the employee experience. When a manager isn’t doing a great job leading, the entire team suffers. And if you multiply that by the number of teams across your org, the impact grows exponentially.

What it all boils down to, is that managers need support. 

Personalized leadership coaching has been proven to help managers improve or develop key leadership skills. And it’s an investment that pays dividends. 

For example, managers who receive coaching to build resilience saw a 31% increase in team performance, a 9% increase in team innovation, and a 52% decrease in burnout. When organizations see increased resilience in their managers and teams, it boosts their bottom line. On average, they experience 3.2 times greater year-over-year revenue growth and a 60% increase in five-year revenue growth.

The number of challenges facing managers increases every year and shows no signs of slowing down. If anything, our world continues to move faster. Left to cope on their own, struggling managers not only underperform themselves, but bring their entire teams down.

Strong companies are built by strong leaders. To overcome obstacles now and in the future, managers must be given the support they need to develop key leadership qualities. Only then will they be able to lead their teams, and by extension their organizations, to success.

Published November 17, 2021

Erin Eatough, PhD

Dr. Erin Eatough is an occupational health psychologist who has published research on employee well-being in over 30 outlets such as the Journal of Applied Psychology and has been featured in media outlets such as Harvard Business Review. Erin currently serves BetterUp in translating data to insight and helps to bring the science of BetterUp to life through content marketing. Erin received her Ph.D. in Industrial-Organizational Psychology from the University of South Florida.

Before BetterUp, Erin was a professor of Industrial and Organizational Psychology. She lives in Alexandria, VA with her husband and two young children. When not working, you can find her and her family on adventures in their tiny home on wheels, a converted Sprinter van.

Read Next

Research & Insights
4 min read | December 9, 2021

What to get coaching on? Here’s what managers are saying

Wondering what to get coaching on? Coaching has been proven to improve a range of skills and abilities. Here are the areas managers say employees should focus on most. Read More
Research & Insights
5 min read | October 13, 2021

Data shows since pandemic team performance hinges on this leader skill

Good leaders who lead successful teams have many skills, from influence to humility. Our data shows what is most important to employees and bottom line. Read More
Diversity & Inclusion
4 min read | February 25, 2021

How inclusive leadership impacts your entire business

The importance of diversity, equity, belonging, and inclusion has never been more salient. Discover its impact on your team and your entire business. Read More
Research & Insights
8 min read | January 27, 2022

Managers and individual contributors take different approaches to coaching

We used natural language processing to see how and why coaching topics differ between managers and individual contributors Read More
Research & Insights
5 min read | October 4, 2022

Supportive managers boost LGBTQIA+ professional confidence by 39%

LGBTQIA+ employees face striking disparities in the workplace, but manager support can play a part in helping them achieve professional success Read More
Research & Insights
6 min read | July 19, 2022

Managers are falling for this cognitive bias when giving performance reviews

Data reveals that the proximity bias can influence managers to view their in-person employees more favorably than remote and hybrid workers. Read More
Research & Insights
6 min read | October 28, 2021

Leaders are prioritizing well-being over leadership skills in the post-Covid workplace

BetterUp member data reveals that leaders are continuing to focus inward at a time when their employees need them the most Read More
Culture
4 min read | July 27, 2021

Hybrid work puts inclusive leadership to the test

In a new era of work, inclusivity is more important. Yet, what it means to be inclusive has shifted. How do we prevent “in-group” and “out-group” dynamics? Read More
Employee Experience
7 min read | December 1, 2021

Managers say men and women differ in these five areas: Is it true?

Men and women bring different things to the table. But are these differences really due to gender? The science may surprise you. Read More
Well-being 

How to improve work performance by focusing on well-being

Leadership & Management 

5 tactics for managing managers effectively — and why it matters

Well-being 

5 key differentiators of resilient organizations, according to research

Productivity 

Organizational performance: 4 ways to unlock employee potential

Culture 

Awakening human potential: Developing people and driving performance in the new world of work

Culture 

A strong coaching culture makes dollars — and sense

Leadership & Management 

Why every successful manager needs leadership coaching

Coaching 

How to have more impact? Peer coaching can accelerate team performance

Leadership & Management 

6 surefire ways to reach optimal peak performance

Stay connected with BetterUp

Get our newsletter, event invites, plus product insights and research.