The odds of winning the lottery are roughly one in 300MM, yet someone ultimately wins. Believe it or not, in the case of multimillion-dollar payouts, many winners willingly leave a significant portion of their jackpot on the table. Lottery winners have two options for taking the payout for their winnings: an annuity of annual payments made over time, or a lump sum cash payment of 40% to 50% less. Despite the lower payout of choosing the lump sum cash option, that is the one that is most popular. It seems that waiting for winnings to be doled out is a deal-breaker for most lottery winners, who want the flexibility of using their funds all at once, even if it means giving up some extra millions. Much like many lottery winners are willing to walk away from some of their winnings to avoid the restrictions of annual payments, most nonmanagerial employees would likely forego larger paychecks if earning them requires taking on a management position. The MismatchManagers play a crucial role in helping organizations run as efficiently and effectively as possible. Yet, according to the findings of a recent survey from business support software provider Visier, regardless of industry and location, only 38% of employees have any interest in being promoted to managers. The problem isn’t a new one and may in fact be even worse, as a 2020 global survey from Boston Consulting Group (BCG) found that only 9% of employees in nonmanagement roles have any interest in ever moving into management. Even more concerning for the business world is the fact that millennials and Gen Z are particularly uninterested in management positions, which could become a major problem for many organizations as more baby boomers head for the exits and they are left with a dearth of candidates to plug leadership gaps. One of the biggest deterrents for people to take on managerial roles is the fact that, more often than not, the individuals in such positions are overburdened and tend to burn out. BCG found that 81% of managers in Western countries believe managerial roles have become harder over the past few years, with one of the biggest reasons people cite for not wanting to be in management being the desire for a better work-life balance. Instead of taking on the pressures of management, many employees, particularly those within younger generations, would rather become experts at what they do or work for themselves. A Balancing Act Given that most businesses cannot function without managers, organizations need to rethink the way they approach moving people into such roles. Since pushing people into management positions that they don’t want can ultimately mean pushing them out the door, some organizations have begun to create dual career paths with an alternative that allows people to continue developing their expertise without the need to oversee others. For example, some technology companies have developed compensation plans that provide experienced employees who eschew management the ability to earn the same level of income they could earn by taking on managerial responsibilities. Not only does this approach enable employees to continue developing their expertise, but it also makes it more likely that the individuals who do take on management positions really want them. As community financial institutions reassess the approach they take to identifying managers and helping improve the role for individuals already in such positions, here are a few things to keep in mind:
- Invest in education. Managers want to stay up to date on new technologies and changing approaches to work, yet few receive the career coaching necessary to help them succeed in their positions. A 2019 LinkedIn report showed that 94% of survey respondents would stay longer if their employers invested in their professional development.
- Streamline workloads for better balance. Removing unnecessary administrative tasks and unrealistic workloads from managers makes it more likely such individuals will succeed in their roles and less likely they will leave. Simple things such as providing managers with technology that can automate time-consuming tasks, or instituting one day per week that is free of meetings to allow people the time needed to get things done during the workday, can help provide managers a better balance in their work and personal lives.
- Commit to cross-training. Another way of keeping people from burning out that some organizations have tried is to rotate leaders between different areas, which allows people to expand their areas of expertise and avoid the problem of concentrating too much expertise in one individual.
- Start career mapping early. Helping employees map out their career paths from the get-go is a good way to demonstrate that your organization cares about the long-term success of employees and allows executives to identify where they may have gaps within their organizations. In doing so, it is important to make it clear to employees that they will not be penalized for a lack of interest in managerial roles and that your organization is invested in helping their professional development, regardless of the path they want to take.
- Cultivate managerial skills over time. Identifying potential managers before there is a need to move people into such roles allows for gradual training and increases the likelihood that they will succeed and remain with your organization.
Undue workloads and burdens on managers have made such positions less appealing for people, particularly younger generations who are more interested in maintaining a focus on and working within a specific area of expertise or working for themselves. Maintaining experienced and successful managers requires assessing what can realistically be expected from individuals within management positions and rethinking the approach organizations take to promoting people into such positions and training them for their responsibilities.
