Why 2024 Needs To Be The Year Of Investment In Frontline Managers

Rising to the challenge

Despite the significant advantages that leadership development provides to organizations, multiple studies report that 60% of frontline managers receive no formal leadership training. This underinvestment in a critical leader cohort is all the more concerning since the job of frontline manager has never been more challenging. The frontline manager job is not more difficult today simply because the business landscape is more dynamic and complex. While it’s true that frontline managers will continue to face rapid market fluctuations and the pressures of a fast-paced business environment, three additional factors increase the difficulty of frontline management roles. And these factors will become more acute in 2024, investing in developing frontline leaders more important in 2024 than ever before.

The first factor is the changing work context: 56% of employed adults work from home at least some of the time; 22% work fully from home; and, 34% maintain a hybrid schedule, suggesting a dominant trend towards hybrid arrangements.ⁱ The rise of remote and hybrid models requires today’s managers to fluidly adapt leadership styles. Managing in an office environment typically involves face-to-face interaction, allowing for more immediate communication and oversight. 

Hybrid management combines elements of remote and in-office work, creating complexities such as maintaining team cohesion and ensuring fair access to resources and opportunities for direct reports, regardless of physical location. Remote management, on the other hand, relies heavily on digital communication tools and requires a greater focus on trust and autonomy. This presents challenges in building team culture and effectively monitoring performance without direct observation. Managers are now leading direct reports across these three different contexts which creates a need for effective “flexing” and optimization across the three. That’s a tall order for frontline managers, especially for those who have received no formal training in managing remote and hybrid employees.

The second factor is the rise of Generation Z which is expected to comprise 27% of the U.S. workforce by 2025. It is the Generation Y frontline managers who will primarily be managing Gen Z workers. Generation Z presents some unique challenges for managers. Research suggests that Gen Z requires more hands-on coaching and more intensive interaction from managers. Having been raised in the era of social media where rewards and likes are promptly granted, Gen Z employees require more feedback from their managers than previous generations. A recent survey indicated that 40% of Gen Z crave daily interactions with their managers.ⁱⁱ If they do not engage with their managers frequently, they often believe they have done something wrong. 

Secondly, the percentage of Gen Z members experiencing anxiety reaches 75%, which is notably higher than the 20% observed in the general population.ⁱⁱⁱ Many studies point to Gen Z's heightened concern about and expectations for career growth, professional development, and meaningful work experiences.^iv Their readiness to leave jobs that fail to meet these expectations puts additional pressure on managers. 

Finally, 77% of Gen Z want to work for managers who care deeply about diversity, equity, and inclusion.^v This requires managers to be equipped to coach frequently, support anxious team members, recognize and address the signs of burnout and excess stress, identify and unlock development opportunities and foster a supportive, inclusive work environment. Organizations need to equip frontline managers by providing the requisite training.

The third factor is the labor market. Heading into 2024 the labor market may be softening but it remains tight. In a tight labor market with high employee turnover risk, managers play the critical role in human capital retention by ensuring strong levels of motivation and engagement. This is especially true for frontline managers who supervise the largest swath of employees. If frontline leaders are not developed and trained to be effective, poor performance on their part has an outsized impact on employee retention. In an HBR survey, 82% of employees surveyed said they would consider quitting their jobs due to a bad manager.[^vii] Effective, well-liked leaders have emotional intelligence, manage interpersonal dynamics adeptly, and motivate. 

The two most critical soft skills to develop in frontline leaders are empathy and persuasion. Studies show that leadership training is effective in the development of these critical soft skills. According to recent research by Forrester, among employees whose managers are provided with resources to develop their leadership skills, 67% say that their company's leaders communicate with empathy. However, this figure drops to 15% among those whose managers don’t have access to leadership development resources.vi Training is especially helpful when there are opportunities for leaders to practice soft skills in low-stakes environments and receive personalized feedback. With cost-effective L&D technologies that are available today, we can help leaders practice these skills in a simulated context.^vii

As organizational structures flatten and frontline managers absorb more execution responsibilities along with increased autonomy, their competency in the role of leader is more important than ever. And yet, investment in leadership development and especially in developing frontline leaders is woefully inadequate. Almost two-thirds of organizations spend less than $500 per year on management and leadership development and most of this spending is allocated to middle managers, executive leaders, and “high potentials.” A McKinsey study found that frontline managers receive the least amount of training, and the little they do receive does not prepare them for leadership responsibilities.^viii

Training and developing frontline managers is not just a matter of enhancing individual capabilities; it’s vital for the overall health and success of the organization. Studies by McKinsey, Bersin and others have correlated various areas of HR investment against business growth. Investment in leadership development consistently scores among the highest impact areas. Companies that focus on developing leaders far outperform their peers. It’s logical to hypothesize that the performance gap between organizations that develop their frontline leaders versus those that don’t would be even larger. The evidence speaks for itself. Use 2024 as the year you make the pivot and direct more resources to the often overlooked but vitally important cohort of frontline leaders.

Notes

Heide Abelli is an Adjunct Professor of Management at Boston College where she has taught Gen Z students for nearly a decade. She is also the co-founder of SageX Inc., an AI-enabled e-Coaching and performance support application for the modern workforce. She is an accomplished executive who before SageX has held senior leadership positions at leading educational technology and training providers such as Skillsoft and Harvard Business Publishing where she developed award-winning, ground-breaking corporate training solutions. She is a seasoned veteran of product development, innovation and product management in the fields of corporate training and ed tech.