Talent Over Tenure: Why You Should Focus on Managerial Potential in Hiring Decisions

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Great managers know how to get the best performance out of their teams. They can draw out individual strengths to achieve productivity expectations, as well as encourage workers to take responsibility for their own engagement. Unfortunately, according to a recent Gallup study of 2.5 million manager-led teams in 195 countries, featuring analysis that measures the engagement of 27 million employees, great managers seem to be scarce.

Great managers know how to get the best performance out of their teams. They can draw out individual strengths to achieve productivity expectations, as well as encourage workers to take responsibility for their own engagement. Unfortunately, according to a recent Gallup study of 2.5 million manager-led teams in 195 countries, featuring analysis that measures the engagement of 27 million employees, great managers seem to be scarce.

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Data from Gallup finds that only 30 percent of U.S. employees are engaged at work, and engagement decreases to a mere 13 percent worldwide. More importantly, engagement varies widely within individual organizations, with managers accounting for 70 percent of this variance, in large part due to a lack of consistency in how they manage their people.

Data from Gallup finds that only 30 percent of U.S. employees are engaged at work, and engagement decreases to a mere 13 percent worldwide. More importantly, engagement varies widely within individual organizations, with managers accounting for 70 percent of this variance, in large part due to a lack of consistency in how they manage their people.

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Part of the problem, Gallup explains in State of the American Manager: Analytics and Advice for Leaders , is that companies tend to have ineffective hiring policies when it comes to managers. For instance, many organizations select leaders based on success in previous, non-managerial roles or tenure, which means they miss out on the best managerial talent in some 82 percent of their hiring decisions. This approach uses no science or research, and completely leaves to the wayside whether the managerial candidate has the right skills for the role.

Part of the problem, Gallup explains in State of the American Manager: Analytics and Advice for Leaders, is that companies tend to have ineffective hiring policies when it comes to managers. For instance, many organizations select leaders based on success in previous, non-managerial roles or tenure, which means they miss out on the best managerial talent in some 82 percent of their hiring decisions. This approach uses no science or research, and completely leaves to the wayside whether the managerial candidate has the right skills for the role.

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While experience and performance are important, they don’t predict talent. Gallup analysis contends that nearly any manager can learn how to lead a team to an extent, “but unless people possess the right innate talents for our job, no amount of training or experience will lead to exceptional performance.”

While experience and performance are important, they don’t predict talent. Gallup analysis contends that nearly any manager can learn how to lead a team to an extent, “but unless people possess the right innate talents for our job, no amount of training or experience will lead to exceptional performance.”

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Instead, organizations need managers with raw, natural talent who can:

Instead, organizations need managers with raw, natural talent who can:

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  focus on individuals’ strengths and needs

  focus on individuals’ strengths and needs

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  unflinchingly review team members

  unflinchingly review team members

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  execute efficient processes

  execute efficient processes

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  rally a team around a cause without burning out yourself or your team.

  rally a team around a cause without burning out yourself or your team.

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Gallup found, however, that only about 10 percent of people have these sort of “natural” management skills—people who can easily engage their teams and customers, sustain high productivity, and retain top talent. On top of this figure, another 20 percent of leader candidates have a “fair amount” of managerial talent, which they can increase and improve with coaching and developmental plans.

Gallup found, however, that only about 10 percent of people have these sort of “natural” management skills—people who can easily  engage their teams and customers, sustain high productivity, and retain top talent. On top of this figure, another 20 percent of leader candidates have a “fair amount” of managerial talent, which they can increase and improve with coaching and developmental plans.

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Although the numbers seem bleak, the problem isn’t necessarily a scarcity of great managers, but an issue of selecting the wrong people to be managers. Fortunately, this isn’t dependent on market conditions or the current labor force, so there are opportunities to reverse the trend. In fact, it’s extremely likely that every team already has someone with the talent to lead, considering Gallup’s finding that 1 in 10 people possess inherent managerial skills. It’s also likely that the current manager is not that person.

Although the numbers seem bleak, the problem isn’t necessarily a scarcity of great managers, but an issue of selecting the wrong people to be managers. Fortunately, this isn’t dependent on market conditions or the current labor force, so there are opportunities to reverse the trend. In fact, it’s extremely likely that every team already has someone with the talent to lead, considering Gallup’s finding that 1 in 10 people possess inherent managerial skills. It’s also likely that the current manager is not that person.

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The good news: By using predictive analysis and tools such as talent audits and assessments, companies can establish a systematic and scientific method to discover the naturally talented employees who are best fit to take on manager roles.

The good news: By using predictive analysis and tools such as talent audits and assessments, companies can establish a systematic and scientific method to discover the naturally talented employees who are best fit to take on manager roles.

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To learn more about hiring best practices that will help you to hire employees who are the right fit for your management team, join us for Hiring the Right People, and ATD virtual event.

To learn more about hiring best practices that will help you to hire employees who are the right fit for your management team, join us for Hiring the Right People, and ATD virtual event.