Why Management Quality is the Key to Employee Engagement: Insights from Gallup

I recently came across a post by the The Center for Creative Leadership Partner Network that referred to a survey by Gallup (https://www.dhirubhai.net/company/center-for-creative-leadership/posts/?feedView=all)

According to the survey by Gallup , 70% of the variance in employee engagement is directly linked to the quality of management. This powerful statistic emphasizes the role of managers as the gatekeepers of engagement and highlights the fact that employees’ engagement with their work is largely shaped by how they are managed.

But what does this really mean for HR professionals and organizations in general?

Employee engagement has long been recognized as a critical driver of business success. it is is no longer just a nice-to-have; it's a key driver of productivity, retention, and overall business success. Yet, despite significant investments in engagement initiatives, many organizations struggle to create a truly engaged workforce.

1. Management Quality: The Key Driver of Engagement

The Gallup data reveals a direct correlation between how managers lead their teams and the overall engagement levels of employees. Managers set the tone for the work environment—whether it’s collaborative, toxic, or inspiring. A manager’s ability to connect, motivate, and support employees often determines how invested employees feel in their roles.

In my experience, I have first hand seen how managers who :

Managers who:

• Encourage open communication,
• Provide regular feedback,
• Recognize achievements, and
• Align employees’ work with their strengths,

are more likely to have engaged teams with a positive team environment. On the other hand, poor management creates a disengaged workforce, leading to turnover, decreased productivity, and negative morale.

2. The Impact of Engagement on Organizational Success

Engaged employees are more productive, creative, and loyal. In fact, Gallup’s report emphasizes that engaged teams lead to a 21% increase in profitability, a 20% boost in productivity, and 41% lower absenteeism(

2. The Business Impact of Engagement

Engaged employees are more productive, creative, and loyal. In fact, Gallup’s report emphasizes that engaged teams lead to a 21% increase in profitability, a 20% boost in productivity, and 41% lower absenteeism(Lindauer).

In most organizations , these metrics translate to fewer instances of absenteeism and significantly improved client satisfaction ratings —a testament to how manager-driven engagement impacts the bottom line directly.

3. How Organizations Can Elevate Management Quality

To capitalize on this insight, businesses need to:

• Invest in leadership training: Managers must be equipped with the skills to inspire, coach, and communicate effectively.
• Promote emotional intelligence: Soft skills, such as empathy and adaptability, are essential for managers to connect with their teams on a deeper level more so when processes and tasks can become routine leading to stressed or disengaged team members
• Establish a feedback loop: Regular feedback sessions where managers can learn from their employees and adapt their management styles will foster better engagement.
• Focus on strengths-based management: Aligning employees’ tasks with their natural strengths helps them feel more competent and satisfied in their roles.

4. HR’s Role in Developing Engaged Leaders

As HR professionals, we play a pivotal role in shaping management quality by:

• Implementing leadership development programs,
• Offering coaching and mentorship opportunities,
• Facilitating 360-degree feedback systems, and
• Providing resources for continuous improvement,

For instance, a simple 30/60/90 day feedback survey, when done effectively can give us early insights into how new managers are engaging with their teams during the onboarding phase, thus allowing us to address any gaps quickly.

5. Conclusion: Invest in Managers, Unlock Engagement

The 70% variance in employee engagement linked to management quality is a wake-up call for all organizations. Regardless of how strong the culture or compensation packages may be, poor management will undermine employee engagement. By investing in leadership development and fostering a culture of feedback and trust, we can unlock the full potential of our workforce.