How does manager tenure affect team performance?

Manager tenure generally correlates with high team performance, though it requires a nuanced approach at each organization, according to a new report from Visier.

For instance, in 30% of companies, longer manager tenure is continuously linked to a higher likelihood of high performance. However, in 45% of companies, the effects reverse over time after reaching a tipping point.

In addition, 14% of companies see a delayed increase in performance, and 11% of companies experience a decreased likelihood of high performance with longer manager tenure.

“This nuanced understanding enables tailored management training and development programs based on tenure profiles,” the report found. “For example, based on these insights, an organization could create programs for newer managers that concentrate on quickly building experience, while programs for longer-tenured managers could focus on preventing stagnation and maintaining relevance.”

In an analysis of 3.4 million employee records across 85 enterprise-sized companies, about a third of employees received high performance ratings, while 60% were mid-level or average performers, and about 7% were low performers. Some organizations had a greater concentration of top talent, which was linked to manager tenure, effectiveness and team performance.

To learn what works for them, leaders should conduct internal analyses to understand how various managerial attributes influence their business outcomes and team dynamics, the report found. In turn, leaders can identify the specific factors that contribute to manager effectiveness at their company, optimize the timing of leadership development activities and drive higher adoption of effective management practices.

In a recent Perceptyx survey, managers said they face intense pressure to do their jobs well, and their workload is becoming tougher. In fact, current well-being levels among managers are “dangerously low,” according to another Perceptyx report. Managers said they feel squeezed and stressed while sandwiched between the needs of direct reports and the demands from senior leaders.

On the other hand, coaching can have “cascading benefits” that lead to lower stress levels and better engagement, Perceptyx found.

In general, managers need better training, according to an Info-Tech Research Group report, especially since many are promoted based on technical skill, thus lacking people management skills. Effective manager training should prioritize trainee-centric instruction and practical application of newly acquired skills, the report found.