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People Management: The Importance of Good Managers on Productivity and Employee Retention

  • Publish Date: Posted about 1 year ago

Managing people is a vital component of any successful business. Whether it's a start-up or a multinational corporation, the quality of the people management can make or break the company's success. Good people management is essential for boosting productivity, retaining employees, and creating a positive employee experience. This article explores the importance of people management, its impact on productivity and employee retention, and top tips for effective people management.

The Importance of a Good Manager

A good manager is the backbone of a productive and engaged team. They provide guidance, support, and leadership to their team, ensuring that everyone is working towards a common goal. Good managers foster a positive work environment that motivates employees to perform at their best. They also act as a bridge between the employees and senior management, ensuring that the company's goals are being met while also taking care of the team's needs.

A study by Gallup found that managers account for 70% of the variance in employee engagement scores. This highlights the critical role that managers play in creating a positive work environment. Engaged employees are more productive, have higher levels of job satisfaction, and are less likely to leave the company. On the other hand, disengaged employees are more likely to miss work, have lower productivity, and are more likely to leave the company.

Impact of Good People Management on Productivity

Good people management has a direct impact on productivity. When employees feel valued and supported, they are more motivated to perform at their best. In contrast, when employees feel undervalued, unsupported, or micromanaged, their motivation and productivity can suffer.

According to a survey by Investors in People, good people management can increase productivity by up to 17%. This is a significant increase that can have a positive impact on a company's bottom line. A good manager can also identify areas where employees may be struggling and provide support and guidance to help them overcome these challenges.

Impact of Good People Management on Employee Retention

Employee retention is a key issue for businesses of all sizes. High turnover rates can be costly, both in terms of recruitment and training costs, as well as lost productivity. Good people management can help to reduce turnover rates by creating a positive work environment and addressing employee concerns.

According to a survey by the Chartered Institute of Personnel and Development, the most common reason for employees leaving their job is a lack of career progression opportunities. This highlights the importance of good people management in providing employees with opportunities for growth and development.

The Employee Experience and the Importance of a Good People Manager

The employee experience encompasses all aspects of an employee's interaction with the company. This includes everything from the recruitment process to onboarding, training, and ongoing support. A good people manager can have a significant impact on the employee experience, ensuring that employees feel valued, supported, and engaged.

According to a survey by Glassdoor, 35% of employees who leave their job do so because of a negative work environment or culture. This highlights the importance of creating a positive work environment, which can be achieved through good people management. A good manager can create a culture of trust, respect, and open communication, which can have a positive impact on the employee experience.

Top Tips for Effective People Management

To be an effective people manager, there are several key tips to keep in mind:

  1. Communication is key: Good communication is essential for building trust and creating a positive work environment. Managers should be transparent and open with their team, keeping them informed of any changes or developments within the company.

  2. Provide regular feedback: Providing regular feedback to employees is important for their growth and development. This includes both positive feedback and constructive criticism to help employees improve.

  3. Support career development: Employees want to feel that they have opportunities for growth and development within the company. Managers should provide opportunities for employees to develop new skills, take on new responsibilities, and advance their careers.

  4. Lead by example: Good managers lead by example, demonstrating the behaviors and attitudes they expect from their team. This includes being punctual, showing respect, and being accountable for their actions.

  5. Foster a positive work environment: A positive work environment is essential for employee engagement and retention. Managers should create a culture of trust, respect, and open communication, where employees feel valued and supported.

JAM Recruitment are currently recruiting enthusiastic and determined managers to join our team in our Cheadle or Warrington offices. If you are interested in what we have to offer, please email for further information.