A potential crisis looms for businesses in 2025: the “manager crash.”
This prediction, from digital coaching platform meQuilibrium, highlights the culmination of years of unaddressed burnout, excessive workloads, and inadequate support systems for managers.
While the platform also forecasts other workplace trends, including the prioritization of change readiness, diminishing remote work well-being advantages, and Gen Z’s struggles with change, the “manager crash” poses a particularly significant threat.
The dire consequences of neglecting middle management
“Like a market crash, we’ll see a significant downturn in manager well-being, performance, and the ability to continue taking the lead as the change champions,” Alanna Fincke, leader of content and learning at meQuilibrium, told Fortune.
The report emphasizes the crucial role of happy and supported managers as “force multipliers” for organizational success.
Conversely, neglecting their well-being can have cascading negative effects.
Fincke stresses the importance of supporting managers: “If no one is minding the managers, they will be at higher risk of burnout and turnover than the people they manage.”
The high cost of manager burnout
Dissatisfaction among middle managers is particularly concerning because their well-being directly impacts their teams.
Employees lacking support from their managers are more likely to struggle during periods of change, with a fourfold increase in the likelihood of quitting and double the likelihood of reporting poor overall well-being.
Fincke emphasizes the importance of proactive intervention: “The benefits [of supporting managers] will cascade throughout the organization, improving productivity, innovation, and overall workforce health.”
Conversely, ignoring the rising tide of burnout among managers can have detrimental consequences for the entire organization.
A perfect storm of stress for middle management
The predicted “manager crash” comes as no surprise.
Middle managers, those in non-executive roles overseeing other employees, have historically received less support from their superiors.
This year, middle management sentiment plummeted to its lowest point in February, according to Glassdoor.
Daniel Zhao, Glassdoor’s lead economist, attributes this to the increasing pressure on middle managers to “do more with less” and the unsettling impact of widespread layoffs at their level.
Witnessing these job cuts has left remaining managers increasingly pessimistic about their companies’ prospects, further contributing to their declining morale.
Caught in the crossfire: the middle management dilemma
Middle managers often find themselves caught between the demands of executives and the needs of their teams, leading to chronic stress and burnout.
A 2023 UKG report revealed that nearly half of middle managers surveyed anticipated quitting within the year due to the overwhelming pressures of their roles.
Pat Wadors, UKG’s chief people officer, described this situation as a recipe for overwork and burnout: “We put so much pressure on the manager, and we don’t give them enough scaffolding.”
The power of support: a key to preventing burnout
Providing consistent and adequate support to middle managers is surprisingly effective in mitigating burnout and fostering a positive work environment.
Employees thrive when they feel supported by their managers, and managers, in turn, perform best when they feel advocated for by their leadership.
“You can’t expect them to lead if they don’t feel supported, and there is no one that has their back,” Tapaswee Chandele, global vice president of talent, development & system partnerships at The Coca-Cola Company, emphasized at Fortune’s Impact Initiative conference in 2023.
Layoffs exacerbate the middle management crisis
Even for those middle managers who persevere through burnout, the challenges persist.
Last year, middle-management positions accounted for almost a third of all layoffs, according to a Bloomberg report, a significant increase from one-fifth just five years earlier.
This trend, exemplified by Meta’s “Year of Efficiency” focused on reducing management layers, exacerbates the existing pressures on middle management.
Gen Z takes note: the future of management at risk
The increasing challenges faced by middle managers are impacting the career aspirations of younger generations.
A recent study by recruiting firm Robert Walters found that nearly three-quarters of Gen Z workers prefer to advance as individual contributors rather than pursue management roles.
Over a third of those who anticipate becoming managers expressed apprehension about the prospect, underscoring the perceived difficulties and lack of appeal associated with middle management positions.
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