For many HR professionals, the assumption is that all employees are eager to grow. In times past, this has often meant working hard in entry-level roles to eventually earn a promotion to middle management and beyond.
While this was a common trajectory for previous generations, recent data shows Gen Z deviating from this trend. In fact, some 52% of young workers have reported that they don’t want to be middle managers.
This sour attitude toward what was traditionally considered the best path to career progression is affecting the business landscape in several ways. In a trend recently dubbed “the Great Flattening,” some of the world’s largest corporations have vowed to eliminate scores of management positions, opting instead for self-directed teams.
As you watch the Great Flattening play out in the marketplace, you may be wondering if you should follow suit. Here’s how this workforce restructuring trend might benefit your business and some pitfalls to consider as you look for ways to streamline your organization and work toward long-term growth.
The Potential Positive Impacts of Flattening Your Workforce
There’s a reason why some of the world’s foremost companies are moving toward a flatter workforce structure. Here are just a few of the positive impacts you could see as you build your team with an increased focus on individual contributors.
Streamlining Work Roles
Flattening your workforce essentially removes layers of middle management roles, which can reduce bottlenecks and result in more agile and effective decision-making.
With fewer intermediaries, senior leadership and frontline employees may enjoy more direct and transparent communication, increasing clarity and leading to higher levels of productivity.
Cutting Costs
Eliminating middle management positions can directly reduce headcount, which in turn helps you save on labor costs.
The faster decision-making that often accompanies a flatter workforce can also improve operational efficiency and reduce time-to-market, which means more money saved, faster profits, and more resources allocated to value-producing activities.
Increasing Engagement
Without micromanaging supervisors, individual employees gain more autonomy over their work. When team members are more involved in the day-to-day decision-making, it can inspire a sense of ownership and give them the space they need to experiment with innovative solutions without feeling weighed down by excessive hierarchy.
What to Watch Out for When Restructuring Your Workforce
While eliminating middle managers can be beneficial in some cases, it isn’t without potential downsides. Here are a few pitfalls you should be aware of and ways to overcome these challenges.
Lack of Employee Support
Middle managers are often employees’ direct link to guidance and mentorship. Without them, your team may initially lack clear direction and feel disconnected from leadership.
Before considering a flat workforce structure, you’ll need to formulate an effective plan for more direct communication and ensure that teams have the problem-solving and decision-making skills required to navigate an environment without supervisors.
Loss of Accountability
Without managers to keep tabs on productivity and performance, employees may start to feel like they have no one to be accountable to. Is your senior leadership team prepared to take on this responsibility?
It’s critical to focus on building a culture where employees can hold themselves and others accountable for maintaining high performance levels. You might consider team-based incentives to promote this outcome.
More Work for Fewer Managers
Eliminating middle management roles doesn’t necessarily eliminate the duties those managers were once responsible for.
Before restructuring, be clear about which of those managerial tasks are most important and who will take them on. It’s also prudent to ensure that you won’t be overloading your remaining managers, as doing so could lead to lower morale and decreased performance.
Reduction in Team Cohesiveness
Can your teams stay aligned and collaborate to meet goals without a clear team leader? If not, the Great Flattening could lead to a lot of confusion and very little productivity. Be aware that additional training may be necessary before and after restructuring to ensure that teams know how to work together effectively.
Provide a Solid Foundation for Your Workforce Transition
Successfully navigating the shift toward workforce flattening requires significant preparation, retraining, and a commitment to maintaining a high-performance culture. If you’re considering restructuring your workforce in this way, AssetHR can help. Our HR consulting services can provide you with an audit of your current practices and help you develop a training and development plan to ensure clarity and cohesion as you move forward. Contact us today to learn more about how we can create unique solutions that push your organization toward long-term success.