Replacing Managers with Coaches: A Paradigm Shift for Increased Productivity and Happier Employees

As an executive coach and former director of engineering, I've always believed in the power of coaching to unlock the full potential of individuals and teams.

I recently came across a fascinating article on Fortune.com that highlighted a company's transformative decision to replace all its managers with coaches. The results were astounding: employees became 20% more productive and, perhaps more importantly, much happier.

Employee engagement has become a pressing concern in today's rapidly changing workplace landscape. Gallup's annual survey revealed that employee engagement reached a seven-year low in 2022, with only a third of workers feeling engaged. This decline can be attributed to several factors, including a lack of clarity, limited growth opportunities, disconnection from the company's purpose, and a lack of care and support.

The "great resignation" phenomenon further emphasized the need for organizations to address these engagement issues. Employees who feel undervalued by their organization or manager or lack a sense of belonging are likelier to seek opportunities elsewhere. Even for those who stay, disengagement hampers productivity, leading to a phenomenon known as the "quiet quitters."

While some companies have turned to surveillance software to manage remote and hybrid workforces, the article sheds light on a refreshingly different approach taken by Time Etc, a virtual assistant platform. Instead of doubling down on micromanagement, they asked their employees what they truly needed from a manager. Surprisingly, the responses aligned more with the qualities of a coach: goal-setting, feedback, personal and professional development opportunities, and autonomy.

Listening to their employees' needs, Time Etc courageously replaced managers with coaches, maintaining a ratio of one coach per six employees. These coaches have a clear mission: to empower and support employees to achieve maximum productivity and success. They provide close mentoring, feedback, and guidance while encouraging individuals to identify their strengths and work preferences. Additionally, coaches ensure that employees receive adequate training and support for professional development.

To foster a culture of continuous improvement, Time Etc provides monthly allowances for Udemy courses or books, and their well-stocked library of self-growth books serves as a valuable resource. The company also organizes regular workshops, inviting external experts to conduct tailored classes on various topics, such as mindfulness and confidence building. As a result, employees feel strongly connected to the company's mission of helping customers achieve more by placing productivity at the core of their operations. Furthermore, Time Etc offers their staff the assistance of virtual assistants, freeing them from mundane tasks and enabling them to focus on essential responsibilities unique to their roles.

The impact of introducing coaches at Time Etc has been remarkable, as reflected in their consistently high rankings in Gallup's Q12 Survey, which measures employee engagement. Trust and support emerged as the primary factors influencing engagement levels, according to a survey of 50,000 employees by Inpulse. Moreover, the company experienced a decrease in sick days taken and a significant drop in employee turnover, successfully weathering the storm of the great resignation that followed the pandemic. Most notably, performance on critical goals improved by an impressive 20%.

Of course, this transition was challenging. Coaching requires a distinct skill set compared to traditional management, and equipping coaches with the necessary tools and knowledge was a crucial step. Establishing and maintaining boundaries in a non-manager-led environment also required some adjustment. Nevertheless, the overwhelming gains experienced by Time Etc have solidified their belief in the power of coaching.

Turning the tide of dwindling employee engagement requires bold action. The story of Time Etc replacing managers with coaches is a powerful example of the transformative potential of coaching in the workplace. While this approach may only be applicable or feasible for some organizations, it highlights the importance of combining coaching principles with leadership training to create a positive and productive work environment.

Consider integrating coaching into your leadership approach if you're an executive, manager, or business leader. Explore opportunities to develop your coaching skills through training programs, workshops, or working with experienced coaches.

By adopting a coaching mindset and empowering your team members, you can unlock their full potential, enhance their engagement, and foster a culture of growth and achievement.

Together, let's reshape the future of work by embracing coaching as a powerful tool for productivity, happiness, and organizational success.