Insperity Study Reveals How Effective Managers Can Drive Business Success and Workplace Culture
Only 1 in 5 frontline employees say managers exceed expectations, despite nearly half of executives believing otherwise
Insperity, Inc. (NYSE:NSP), a leading provider of human resources and business performance solutions, released a new study that uncovers a gap in how leaders and frontline employees view managers. Insperity's new report, Cracking the Code on Manager Impact: Closing the Gap Between Perception and Performance, is based on a survey of 1,000 U.S. executives, managers and frontline employees*, and shows how misaligned views of manager performance can hurt culture, retention and business results.
The Gap
Nearly half of executives surveyed say managers are doing an excellent job, but only 1 in 5 frontline employees agree. According to the research, executives are more optimistic about manager performance than the managers themselves, as only 34% of managers surveyed believe their performance exceeds expectations.
The research reveals three key barriers keeping managers from reaching their full potential:
- Overwhelming workloads: Nearly one-third of managers say competing demands prevent them from focusing on high-impact leadership.
- Excessive administrative responsibilities: When administrative tasks exceed 20% of a manager's time, the risk of burnout rises significantly.
- Insufficient leadership preparation: Many managers, especially first-time leaders, are promoted without the adequate training and support needed to lead effectively.
"Middle managers are among the most underutilized drivers of business performance," said Kathy Johnson, Insperity executive vice president of strategic development. "These leaders translate vision into action, making them key to shaping the future of business. Companies that focus on developing middle managers unlock retention, growth and long-term resilience."
Closing the Gap
When managers perform well, companies thrive. The research reveals:
- Companies with high-performing managers are over 2x more likely to report business success.
- Employees with managers who surpass their expectations are 4x more likely to understand and align with the company's vision and goals.
- Employees with effective managers are 5x more likely to report a healthy workplace culture - reinforcing the manager's role in shaping the foundation of every organization.
The study identifies five key practices linked to stronger manager performance and overall business success:
- Communication: Facilitate clear, two-way dialogue between leadership and employees to improve alignment and execution.
- Development: Build team capabilities through coaching, feedback and training opportunities.
- Empowerment: Provide clarity, resources and trust to enable employees to own their work and drive results.
- Recognition: Acknowledge achievements in meaningful ways to boost morale and retention.
- Culture-building: Foster an inclusive, values-driven environment where people feel connected and motivated.
To learn more about the research and download the complete "Cracking the Code on Manager Impact: Closing the Gap Between Perception and Performance" report, click here.
* The online survey of 1,000 U.S. -based employees at companies with 25 or more employees across major industries was conducted by Provoke Insights. The survey, fielded Jan. 14–27, 2025, used quota sampling to ensure balanced representation across four key employee groups: frontline employees (300), managers with direct reports (300), executives (200), and human resources professionals (200).
About Insperity
Since 1986, Insperity's mission has been to help businesses succeed so communities prosper. Offering a suite of the most comprehensive, scalable HR solutions available in the marketplace, Insperity is defined by an unrivaled breadth and depth of services and level of care. Through an optimal blend of premium HR service and technology, Insperity delivers the administrative relief, reduced liabilities and better benefit solutions that businesses need to drive performance and growth. With 2024 revenues of $6.6 billion and more than 90 sales offices throughout the U.S., Insperity is currently making a difference in thousands of businesses and communities nationwide. For more information, visit http://www.insperity.com.
About Insperity North Star Network
The Insperity North Star Network (NSN) is a thought leadership initiative empowering business leaders to build better workplaces and navigate the future with confidence. Backed by proprietary research and expert insights, NSN delivers practical solutions focused on people and culture, helping leaders meet today's challenges and tomorrow's opportunities.
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