US employee engagement has been stuck at 31% for two years, despite record spending on perks and non-cash rewards. Dr. Tim Clark and Junior explain why, and what leaders should fix instead.
Manager engagement has dropped nine points in a year. We argue that's because organizations keep trying to move a lag indicator instead of fixing the upstream cause: psychological safety.
Engagement is "a thermometer for culture," and most organizations move the thermometer instead of changing the weather, pouring $22.9 billion into non-cash rewards last year with no measurable effect. Manager engagement has fallen from 31% to 22% while individual-contributor engagement holds steady, and the average US manager now carries 12.1 direct reports, up from 10.9. Middle managers, squeezed between rising expectations and shrinking support, score the lowest psychological safety in the organization.
The conversation lands on a hard reframe: culture formation can't be delegated to HR. Modeling and rewarding vulnerability is the senior leader's job, and until that happens at the top, no amount of manager training will move the number that matters.
What is The Leader Factor?
[Previously Culture by Design] The leader is the #1 factor in determining organizational success. If you want to become an effective leader, you have three objectives: First, learn to lead yourself. Then, learn how to unlock the full potential of your team. Finally, build a business where culture is your competitive advantage and innovation is the status quo.