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Dilanka Dilanka is a Business Development Manager at IceHrm. You can contact her at dil[at]icehrm.org.

The Importance of Managers: Why They (Really) Matter

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Today, managers are much more than just the bosses of their teams.

Over the tumultuous past few years, they have also taken on the role of a sounding board, a dedicated mentor, a fearless advocate, a trusted advisor, a dedicated coach and a trusted leader. As their teams endured seemingly endless change and uncertainty, managers became trusted sources of sage wisdom and constant reassurance.

As a manager's role has expanded beyond overseeing tasks and schedules, companies' investments in leaders have not necessarily kept pace. Many managers face unreasonable demands, scarce resources, impossible workloads and high levels of stress.

While it's tempting to think of these as disadvantages of being a leader, the reality is that when leaders struggle, the entire organization is affected. Investing in success starts today with investing in leaders.

The Importance of Managers: 3 Reasons Why They (Really) Matter
Managers are the foundation for a company's success. This may sound like a bold claim, but there is research to back it up. In our recent State of the Manager 2023 report, Culture Amp staff identified trends and insights from 257,234 managers at 3,304 companies.

As we analyzed the data, one thing became clear: why companies need managers. Let's look at three of the most notable benefits of managers to show why these positions are worth investing in.

1.Managers increase employee motivation

Why are managers important for companies? Motivation is an important piece of the puzzle.

Employees cannot always make the connection between their tasks and the overall company goals. Managers serve as valuable intermediaries. They are the ones who inspire a sense of purpose and fulfillment in their direct reports.

If they do this well, the benefit is clear. When employees have a great manager who they see as a role model, they achieve 27% higher motivation scores. This proves that it's not the policies and goals that drive ambition and get the best out of employees - it's the managers.

2. Managers strengthen employees' trust in the company

Employees see daily headlines about layoffs, recessions and macroeconomic issues. This can lead to them having less trust in your company.

This is another reason why management is important. Because leaders interact directly with their team members, they are instrumental in fostering belief that the company is taking the right steps.

When employees rate their leaders as "good managers," they are far more likely to agree with the following statements:

• I would recommend [company] as a great place to work: 80% of employees agree
• I have confidence in the leaders at [company]: 74% of employees agree
• [Company] is positioned to be successful in the next three years: 76% of employees agree

Employees don’t need empty promises or grabby vision statements to maintain a sense of trust in their organization. They need honest, engaged, and supportive managers.

3. Managers instill positive employee habits

For most employees, managers aren’t just supervisors – they’re also role models. Employees watch their leaders carefully and often emulate their actions.

This is a good thing, provided the manager is modeling positive behaviors that they want to see trickle down through the organization. When a manager takes an action first, their employee is:

  • 3 times more likely to participate in 1-on-1s
  • 4.7 times more likely to give public recognition
  • 6.4 times more likely to have a development plan
  • 19.7 times more likely to give continuous feedback

Simply put, employees notice when their leaders practice what they preach.

Leaders don't just offer support - they need it


Your leaders play a critical role in shaping the employee experience and your overall success as a company. It's a big task and you can't expect them to do it alone.

It's up to companies to equip leaders with the tools, resources and training they need to do their best work - so they can inspire their employees to behave the same way.

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