A first-of-its-kind study of more than 1000 Australian managers has revealed the vast majority believe there is a growing rift between them and their business leader counterparts – and it could blindside companies if it isn’t resolved.
An increase in workloads, a profit-first mentality and feelings of inadequacy when it comes to supporting their teams have been cited as the reasons for the rift, according to the study by global benefits and rewards platform Perkbox Australia.
Conducted by strategic insight agency Opinium on behalf of Perkbox in April 2024, the research looked at the middle-management structure within companies and included responses from more than 1000 Australian workplace managers, many of which report to the C-suite.
Perkbox Australia acting country manager Andrew Wilkins told SmartCompany the study is giving a voice to managers across Australia, who are facing significant challenges as the cost of living escalates and employee needs evolve.
“Managers are teetering on the brink of exhaustion and having to do more with less,” he says.
“However, despite the strain, many are actively equipping themselves with the necessary skills to navigate the complexities of the workplace.
Wilkins says Perkbox research shows the managers are mostly struggling from “a glaring absence of support in the workplace”.
“Many are training themselves to deal with the situations they are finding in the workplace. That’s all largely due to a lack of support from their organisations,” he explains.
The Perkbox data reveals 63% of Australian managers believe there is a growing disconnect between them and their business leaders, with 69% saying business leaders are too detached from the day-to-day business operations, and 73% voicing that business leaders are more concerned with profit over people.
Being asked to do more with fewer resources has become an issue for 77% of the managers, with 68% saying that increased role pressure has affected their mental wellbeing and 52% confirming that over the past 12 months, their ability to care for their team has diminished.
Approximately 42% of respondents say they would quit and consider a new role if the conditions in their current position don’t improve.
Wilkins says the role of the manager has expanded and it’s taking a toll.
“Australian managers want more support from business leaders amidst the current cost of living crisis, to the point where this needs to be raised as an issue within HR teams across the country,” he says.
“When we conducted the survey, we knew anecdotally that something was amiss. We were still surprised, however, by the strength of feeling that came across.”
Managers are a “stalwart bunch,” says Wilkins, and other workplace studies have not necessarily reflected their concerns.
“It was a risk when we ran this report that it would say nothing notable,” he admits.
“But it genuinely shows just how much both the cost of living crisis and pressure from senior leaders is affecting the average manager, and why companies need to act.”
The report also found 84% of managers are now training themselves to upskill and manage their teams when it comes to navigating difficult workplace situations.
Cost of living pressures are front of mind for managers, with 71% saying their team needs more guidance on non-workplace issues, including the cost of living, and 80% expressing concerns about the current economic climate.
Every HR response to an issue, like this one, should start with a conversation, says Wilkins.
“Business leaders need to pull their direct managers aside and ask them how they are faring,” he says.
“They need to get to the heart of the matter, asking questions like: has your workload increased? Do you feel supported by the organisation? Could we be doing more to support you?
“Even just asking these questions will show that a company cares for its team.”
Companies risk being blindsided if they don’t act on this strain being placed on middle managers, warns Wilkins.
“A study by Gallup shows managers are solely responsible for 70% of the variance in employee engagement, he says.
Losing managers can have a “compounding effect” on a business.
“It could trigger more resignations, and jeopardise the quality or timely completion of projects,” adds Wilkins.
“The cost of living crisis has made companies particularly fragile at the moment. A workload and wellbeing crisis for managers is an additional risk that many cannot afford.
“This study will hopefully serve as a wake-up call for them.”
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