Effective people management could be the most difficult aspect of sustaining a thriving enterprise.

Companies need to devote more attention to promoting and developing good managers, and then start letting the world know they have these good managers.

1. Understand the characteristics of a great manager.

That 10%, when put in managerial roles, has a strong natural ability to:

  • Put the right people in the right roles
  • Create a culture of clear accountability
  • Engage employees with a compelling vision
  • Motivate every employee individually
  • Coach and develop their people by focusing on their strengths
  • Make decisions based on productivity, not politics
  • Build trust and dialogue with their people about both work and life outside of work

According to the State of the American Manager report:

"18% of those currently in management roles demonstrate a high level of talent for managing others, while another 20% show a basic talent for it. Combined, they contribute about 48% higher profit to their companies than average managers do."

2. Select and promote managers for the right reasons.

The two things that usually earn a promotion to management have nothing to do with great management ability: tenure and mastery of a previous, non-managerial role.

[Top Two Reasons People Become Managers]

Effective people management requires a talent set of its own, and someone who shined in a previous role may not transition seamlessly to a managerial role.

From the State of the American Manager report:

Hiring great managers takes a rigorous, validated process.

Management is a talent just like any other job skill, and it requires a significant amount of soft skills such as relationship-building that often go overlooked.

While development can be effective, the most effective method for getting great managers is rigour and accountability when finding, hiring and promoting people with natural management abilities.

These great managers can come from inside your organization or outside, and they may often be hiding in plain sight in another role.

3. Talk about great managers as your company's No. 1 benefit.

There are many more poor managers than great managers, so this benefit is rare and differentiates your organization from the rest.

Now that you know the breadth of influence managers have on your company -- and how to find and hire talented ones -- it's time to sing their praises.

Publicize your great managers on hiring websites as a major part of your EVP, and make sure prospective employees know the benefit a truly talented manager can bring to their work and life.

Remember -- half of all people searching for a new job left a job because of a bad manager.

All other things being equal, when an individual is considering two companies in their job search, they'll choose the company with better managers.

The effect of a great manager is the gift that keeps on giving.

Happy, healthy employees mean a better culture and a more productive, profitable company. They love their jobs and spread the word -- setting you up to hire and keep more top talent.

Information sources from https://www.gallup.com