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Econ Crisis Making Middle Managers Miserable

September 1st, 2009 @ 7:01 am

25 Comments

Categories: Research

Tags: Middle Management, C-level Type, Sean Silverthorne

Some 27% of middle managers say they find their current roles less meaningful and exciting than before the economic crisis, reports a recent McKinsey poll. C-level types are a happier lot, with only 18% reporting similar dissatisfaction.

As reported by Harvard Business Publishing’s Daily Stat, just 36% of middle managers (compared with 52% of all executives) report that they will be with their current employer two years from now.

Why has the recession altered the work views of middle managers more than upper management types? Here’s what I think. Tell me if I’m wrong:

  • Job Insecurity. Middle managers don’t have the job security that C-level execs enjoy, and thus are under more pressure to perform at a high level.
  • Kill the Messenger. When there are layoffs to be done, middle managers more than any other supervisor class are the ones who deliver the message to those being let go. Each of these takes an emotional toll on the message bearer as well as the receiver.
  • Career Interrupted. Middle mananagers have fewer opportunities at work to be promoted. Not only are senior execs sticking around in their jobs longer, but many companies are consolidating what they offer rather than creating new opportunities.
  • Pay Squeeze. At home, middle managers are under mounting financial pressure as their employers scale back on pay raises. Senior managers have fatter wallets to fall back on.

Given all this, it seems improbable that 73 percent of middle managers say their jobs have not changed much because of the crisis.

What do you believe? Is middle management not what it once was? Take our poll.

Is your job less meaningful since the crisis?

View Results

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  •  
    1

    selfishy_me@...

    09/01/09 | Report as spam

    RE: Econ Crisis Making Middle Managers Miserable

    Good. I hope they get nightmares, too.

    "Kill the messenger"

    Ha! Yea right they care.

  •  
    2

    bcmg

    09/01/09 | Report as spam

    RE: Econ Crisis Making Middle Managers Miserable

    Fear is the main problem in corporate america. It saps your energy and keeps you from being creative and taking risks! Without a vision for growth we wither and die! Yes, I'm frustrated at this economy...but sometimes we just have to dig deep inside and try and motivate ourselves when upper management won't!

  •  
    3

    amp9000

    09/01/09 | Report as spam

    RE: Econ Crisis Making Middle Managers Miserable

    My job had been less meaningful for a few years. I am now
    happier than ever, unemployed, but pursuing other interests.
    I don't necessarily think this is recession related - possibly
    industry related.

  •  
    4

    Richard.Jones13

    09/01/09 | Report as spam

    RE: Econ Crisis Making Middle Managers Miserable

    For all of you that have the means and feel you can wait this economy crisis out: think again, the longer you wait it out, the more scarce jobs become, and the value of the dollar becomes nothing in the end. Wake up America, don't let the government solve your life for you. Only you can make what the American Dream is for you and your children. All the radicles and beauracracies in the world can make your dream come true. Life is short, but a dream is forever handed down by you loved ones, not the monster that is waiting for the chance to take your dreams.

  •  
    5

    duderdude

    09/01/09 | Report as spam

    RE: Econ Crisis Making Middle Managers Miserable

    After making some key members of my team redundant earlier
    this year ( Yes it was personally stressful & near sighted of
    upper management to ) I was then made redundant myself.
    Those left are working harder to cover the tasks and morale is
    pretty crap. I'm glad I've gone. My immediate concern is
    getting reemployed in an environment where all us middle
    managers are beating each other off for limited positions.

  •  
    6

    amarkcreddy

    09/01/09 | Report as spam

    RE: Econ Crisis Making Middle Managers Miserable

    Just a negative way of thinking making us ill, a positive way of thinking can lead us another heights, Fear is the main problem.
    don't let your energies let go down, when day's come again then middle manager are most demandable

  •  
    7

    pdfplayer

    09/01/09 | Report as spam

    RE: Econ Crisis Making Middle Managers Miserable

    I think you make some very insightful points...also I feel another factor is the fact that due to the mass layoffs and job cuts, the same work needs to be done by lesser number of people and majority of this workload has fallen on the shoulders of the middle management. They have been in the organization long enough to understand the business dynamics and way of working and are expected to take ownership and accountability for the work entrusted. At the lower levels, the focus on accountability is a lot lesser and so there is much less pressure...

  •  
    8

    jsargent

    09/01/09 | Report as spam

    RE: Econ Crisis Making Middle Managers Miserable

    Note that the recession has brought out the nasty character in everyone. Job insecuriity, Carreer interrupted, Pay squeeze, .. they all mean that management is stabbing each other in the back.

  •  
    9

    d3wrs01

    09/02/09 | Report as spam

    RE: Econ Crisis Making Middle Managers Miserable

    It comes with the territory for middle managers. They are constantly squeezed between employees (worker bees) and upper management. It is truly a thankless job- one I avoid like the plague. It's little wonder they are one of the first groups to get the ax when the Turk comes a calling.

  •  
    10

    jentimus

    09/02/09 | Report as spam

    RE: Econ Crisis Making Middle Managers Miserable

    There is always a possibility that you will have to change jobs, even in good times. While we are more likely to think about it when we hear about layoffs on every morning news show, obsessing about the 'what if's is only going to make a stressful situation worse.

    The foundation of most stress is feeling out of control, so doing what you can to prepare for the day you might be laid off is critical. Once you know what you will do - how many paychecks you have saved, what expenses could be cut, where you'll send your resume (which you should always keep current!), and the like - the stress is a lot less and you can focus on doing your job like you will never leave.

    Hope for the best, plan for the worst and then focus on the good things that are happening right now.

  •  
    11

    DataDude1

    09/02/09 | Report as spam

    RE: Econ Crisis Making Middle Managers Miserable

    Having been laid off and moved from one coast to the other in the last year, I can say I am thankful to have a new gig. However, I also realize that you have to keep options open and have as many eggs in the basket as is possible. Loyalty from company to employee is becoming increasingly rare, so it is no wonder that those of us in the middle are being squeezed.

    When all is said and done we are personably responsible for following our own bliss.

    GT

  •  
    12

    sevenby54

    09/02/09 | Report as spam

    RE: Econ Crisis Making Middle Managers Miserable

    If you don't like being axed, then become the Turk or get out and work at Super Wal*Mart!!!

  •  
    13

    sarahberg

    09/02/09 | Report as spam

    RE: Econ Crisis Making Middle Managers Miserable

    At the company I work for, I find that C-level management tends to get more involved in the tasks and responsibilities that middle-management have been taking care of. It is fear by C-level management (I imagine due to economic crisis) causing them to do this.
    When this happens, often middle-management feels as though the C-levels have little faith in their abilities and get frustrated and demotivated.
    A good worker wants to make a positive difference within the company that which they work at. When middle-management is micro-managed, it creates an atmosphere where great ideas are squashed and mediocrity takes over - not just within middle-management, but their direct reports as well.
    It creates for a difficult situation, but one that can still be overcome.

    And for "selfishy_me" - I've had the experience of being the "messenger" and laying someone off. It was quite possibly the worst experience I've ever had in my career. You are obviously far less understanding than the middle-managers you seem to despise.

  •  
    14

    shellsaeger

    09/02/09 | Report as spam

    RE: Econ Crisis Making Middle Managers Miserable

    I agree with your points. I also believe that part of the issue may be that middle managers aren't brought into change efforts until action is required. Upper management gets to think through changes and has had time to make peace with change before bringing middle management into the change efforts. As a result, mid-managers have less time to cope before they are required to take action. Then mid-managers are asked to put on a happy face and support the change. With less time to cope with changes and possibly not a full understanding of the logic behind the change, being the messenger can suck the energy right out of you.

  •  
    15

    Fiesty1

    09/02/09 | Report as spam

    RE: Econ Crisis Making Middle Managers Miserable

    I agree with shelsaeger. I have been in middle management for 10 years and I am constantly in the middle and get to deliver the bad news. How about giving me a chance to deliver the good news.

    On top of that all of our management team took a pay cut and has had four furlough days since the first of the year and the just added fourteen more fourlough days. I now make less than some of my higher level staff.

    I think the attitude around here is that we should be happy we have jobs.

  •  
    16

    adeangulo

    09/02/09 | Report as spam

    RE: Econ Crisis Making Middle Managers Miserable

    As an executive recruiter, I have found that the Employee-Company model is outdated and inaccurate. Any employee, or manager, needs to look at thier situation from an empowered position of Supplier-Customer. Trust me, you will go to work everyday looking up at the organization, instead of down. Your options will increase.

    Below is an except from a white paper I published a couple years ago.

    The Reality Model

    Unless you are self-employed, you are selling your services to your Company. The Company is your customer. It is buying your services at what is considered to be a fair price, and it will continue to buy your services right up to the point when they are no longer needed. Then, it is going to stop buying from you, and you are going to be laid-off, terminated or replaced by someone with different skills. The bonds that were forged with mangers and coworkers will not be able to withstand the force of competition and the reality of management?s bonus-driven strategies.

    You need to approach your employment relationship the same as any other supplier that sells services to your company. Study your Company, their business, their industry and their purchasing power. Could they easily change their business strategy, requiring different services and suppliers? What is your value proposition within the Company? Is what you do core to the business? Is this a customer with long-term needs for your services, and potentially more services? There is nothing wrong with loosing a customer. If your job is eliminated, it is not your fault. However, being caught by surprise would be your fault.

    From time to time, the Company may refocus and no longer want to pay, or can afford to pay what you are charging for your services. The Company goes through a reorganization, re-banding or re-grading process. It benchmarks and reassesses what it is paying for the employee services. This is similar to what a purchasing analyst might do to bring the cost of goods and services in line with the true market value.

    To strengthen your value, you need to continually improve the services that you have to sell. You need to expand your product line, so to speak. Your skills and knowledge need to be constantly updated and upgraded. You want to be the innovative employee selling the next-generation, higher-value products and services. This is protection not just for keeping your current customer, the Company, but making your services marketable to other potential customers, should anything happen to your present customer?s purchasing power.

    Wal-Mart.

    As part of continued efficiency measures the Company may expect to pay less for the same services. All companies ask suppliers for cost reductions when nothing in the product or service has changed. Just ask anyone who has ever sold to Wal-Mart. All things considered, it?s ironic that many employees expect an annual ?merit? increase for doing the job they were hired to do, when nothing has changed.

    Now, if the Company wants to pay less for the same services, and the supplier drops their price, what are the chances of getting a higher price later? None. Only if inflation drives up the cost of services will a supplier be able to increase their price for the same services. A supplier will always need new or better services to justify a higher price - or, an increase in the ?cost of living? to justify a higher wage.

    But, I?m already under paid.

    Chances are, that is not the case. You are probably getting paid exactly what you are worth. However, you may be under-employed.

    You may be in a job that does not require you to use all of your specialized knowledge and skills. Companies ? customers - only pay for the resources they use. It is unreasonable to expect them to pay for what they do not use.

    Consequently, if the Company cannot use or afford to buy your improved skills or knowledge, then you need to look for a new customer, one that needs and is willing to pay for the services you have to offer.

    The Take-Away.

    Most companies will offer a preference to their good suppliers. However, if the economics of the relationship between the Company and a supplier are no longer in the Company?s best interest, or the Company requires different services, management has the fiduciary responsibility to make a change. Suppliers have the same responsibility to their organization, be it a company or a family. It?s not personal; it?s business ? plain and simple.

  •  
    17

    wkb2texans

    09/02/09 | Report as spam

    RE: Econ Crisis Making Middle Managers Miserable

    adengulo ... you're right on target. I don't sit at my desk and quake with fear over our reorg, or someone down the hall getting the pink slip. I come to work, make myself as invaluable to the company as I am able, making sure that my boss and his boss know just how valuable I am to them. Does that make me bullet proof? Not necessarily, but it does give me peace of mind that I'm doing all I can do to sell my self to my customers. Forget about the headlines, and the woe-is-we media pundits ... keep a strong outlook and keep seeking ways to increase the value of what you have to offer to your employer (customer.)

  •  
    18

    barcodeguy

    09/02/09 | Report as spam

    RE: Econ Crisis Making Middle Managers Miserable

    adeangulo - You did get it. Over the course of my career, the most successful people, have been the ones who have taken a position while always looking for their next one.
    I do, however, have an issue with the "strengthen your value" argument, that you correctly address further down as under-employed. You say -
    "To strengthen your value, you need to continually improve the services that you have to sell. You need to expand your product line, so to speak. Your skills and knowledge need to be constantly updated and upgraded. You want to be the innovative employee selling the next-generation, higher-value products and services. This is protection not just for keeping your current customer, the Company, but making your services marketable to other potential customers, should anything happen to your present customer?s purchasing power." (re-reading it I guess were in exact agreement. If your company does not want to pay for your services, go to someone who values them and will.)

    When I started with my company ten years ago, expertise and knowledge were in demand. Several years ago, as the industry matured, my ex-employer determined that its products were becoming commodities, and could be sold as such, through a computer based, price driven, model. Everyone's pay was cut drastically as the company moved into the new larger volume low margin business arena. Everyone was told that cuts were necessary to support the increased overhead required to support the new volume. Of course, management told everyone that the increased volume would be beneficial to all of us in the long run. Company focus became number of orders, and cost per order. Stress levels are through the roof, and the warm bodies in the chairs are always wondering when management would find someone willing to do their job for less.

    As many people have said, fear is keeping many people from speaking up about company inadequacies, and even unethical, or illegal behavior by management. One co-worker likened it to being like a mole in the "Whack-A-Mole" game. Keep your head down, and try to go unnoticed. As I have now learned, when upper management says, they?re making changes with respect to the ?big picture?, you had better make sure you?re still in it.

    Re-reading your post again. It's right on the mark. I just wish my company had followed the Wall Street analogy of paying to keep talent rather than joining the race to the bottom.

  •  
    19

    KarBar110

    09/02/09 | Report as spam

    RE: Econ Crisis Making Middle Managers Miserable

    Despite having talent in my field, a humble but confident nature, a friendly disposition, a likeable personality, tons of experience, and an education, it took me 11 FREAKING MONTHS to land THE JOB that will take me from a freelancing, poverty-stricken (no seriously...I'm really not kidding here) individual to one that is finally on her way to a great career. This position is in fact middle management with a small company (about 50 people), but after all the months of heartache, disappointment at being passed over (my field is very competitive), depression over not being able to pay student loan debt (it was either that or eat), and nights of sobbing uncontrollably with frustration that my best efforts to land a job weren't working, you can bet your a$$ that I have more motivation than the next person to do a good job, overdeliver, overachieve, and kick butt in general at my job. There's nothing like a few months of eating Ramen Noodles and Cheerios to motivate you into being the best possible employee you can possibly be (YES I'm talking to ALL YOU 81% of voters in the above poll who said they are unmotivated in their positions).

    I totally agree with adeangulo that you have to think of yourself as the provider of a service and your company as your client. You give them just enough guidance and direction pertinant to your area of expertise to make yourself invaluable, but not in such a way that it steps on anyone's toes or makes them feel like they don't know anything. Its a fine balance, I agree, between saying too much and not saying enough, but that shouldn't unmotivate you. Just remember....RAMEN NOODLES.....EV-ER-Y NIGHT....there you go...now get back to work!

  •  
    20

    SalesTrainer

    09/02/09 | Report as spam

    The talent will go elsewhere - the grass is greener...

    This article is amazingly similar to a white paper I recently read that indicated that a majority of sales reps are feeling the same way and a large percentage are planning to leave their current employers when the economic downturn is over. Most employees - especially good middle to upper level managers who are not C-level, are considering switching because they are not appreciated.

    They will find out when they switch that they are in the same boat with another employer. The new employer will treat them like the old...the grass is always greener...

  •  
    21

    Fiesty1

    09/03/09 | Report as spam

    RE: Econ Crisis Making Middle Managers Miserable

    I would love to see upper management placed in the same position they place middle managers.

  •  
    22

    seansilverthorne@...

    09/03/09 | Report as spam

    Middle Management Blues

    Thanks for these comments everyone. I was unaware of just how many people are feeling squeezed and under appreciated in middle management roles these days. I hope the Big Cheeses out there read this and take a middle manager to lunch!

  •  
    23

    barcodeguy

    09/04/09 | Report as spam

    RE: Econ Crisis Making Middle Managers Miserable

    SalesTrainer - Unfortunately you are right. The situation where terrible environments are duplicated from company to company is on the increase. One can only hope that they find one of the few companies who still values people who aren't afraid to color outside the lines.
    Fiesty1 - You got it right as well. I would liken many upper management decisions to the U.S. search for WMD's in Iraq. Upper management makes a decision (right or wrong), on a course of action, and the "troops" are the ones who have to make it happen. We've gone from upper management saying, "The buck stops here", to them saying, "The buck stays here". Big picture, twenty-year planning, has been replaced by twenty-day planning.
    And... seansilverthorne@... The take a middle manager to lunch is a great idea, since their pay has probably been cut, and they can use the food.

  •  
    24

    monteie

    09/05/09 | Report as spam

    RE: Econ Crisis Making Middle Managers Miserable

    Dear Sean,
    I?d apply your thoughts to any employee.
    Since the rightsizing,etc., employee no longer has close links to his/her employer. The perch is always smoldering.

    All the best,
    Edson.

  •  
    25

    barcodeguy

    09/06/09 | Report as spam

    RE: Econ Crisis Making Middle Managers Miserable

    monteie - (Edson) You got it right. It?s everybody. It used to be called a layoff. Then it was a work-force adjustment. Then downsizing. Then rightsizing. Then outsourcing.

    Who knows, when companies can no longer outsource, or import, cheaper labor, (which increasingly includes people like middle managers, programmers, etc.) maybe the U.S. employee will catch a break. Of course, that won?t happen until our standard of living drops, and those in emerging economies rises. As the cost of production overseas goes up due to increasing demands by workers, environmental concerns, and ultimately the added costs of regulation, just maybe the U.S. will once again become the manufacturing supplier to the world. Don?t hold your breath. And if people think other countries are sitting idly by while we tout high tech industries as the solution, they are sadly mistaken. We used to say that we could do it better, faster, and cheaper. Now the only thing that matters is cheaper.

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