The benefits accrued to companies that mindfully screen for“talented” and “engaged” managers are myriad, according to a studyby Gallup — including a huge competitive advantage inprofitability.

Gallup continues to venture far beyond mere pollstering, asexemplified by its analytical tome on managers, “Stateof the American Manager.” Among the extractions from thisreport are observations about the effect managers have on corporateperformance. Consider this:

  • Companies that hire managers based on talent report a 48 percentincrease in profitability;

  • Those companies report a 22 percent increase inproductivity;

  • They report a 30 percent increase in employee engagement;

  • They report a 17 percent increase in customerengagement;

  • And a 19 percent decrease in turnover.

The trick is finding these talented, engaged managers. Therecruiting and interviewing processes need to be completelyretooled to screen in the right people rather than screen out the“wrong” ones. And that’s noteasy, given that Gallup’s research shows that only 35 percent ofmanagers are engaged in their jobs.

“Through their impact, Gallup estimates that managers who arenot engaged or who are actively disengaged cost the U.S. economy$319 billion to $398 billion annually,” Gallup said.

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Dan Cook

Dan Cook is a journalist and communications consultant based in Portland, OR. During his journalism career he has been a reporter and editor for a variety of media companies, including American Lawyer Media, BusinessWeek, Newhouse Newspapers, Knight-Ridder, Time Inc., and Reuters. He specializes in health care and insurance related coverage for BenefitsPRO.