Average Manager To Employee Ratio [2023] - Zippia (2024)

Manager-to-employee ratio research summary. Just as teachers can struggle to handle too many students, having the right manager-to-employee ratio is crucial for any business. When ideal this ratio can foster improved communication and productivity.

So, if you’re an employer or curious job seeker who wants to know more about this ratio, stay tuned. We’ve investigated the average and ideal manager-to-employee ratio, and according to our research:

Key Takeaways:

• The average manager-to-employee ratio in the service industry is 15:1.

• For small businesses, the average manager-to-employee ratio is 6:1.

• Research suggests that the ideal manager-to-employee ratio is between 6 to 10 employees for every manager.

Manager-to-employee ratio by industry

The average manager-to-employee ratio is different depending on the industry. While this section only addresses industries in the professional services sector, disparities can still be seen.

Manager-to-employee ratios in professional services

While none of these are as high as the 15:1 average in the service industry, a ratio of 12.5:1 for the Hardware services industry is still almost 2x that of Advertising, marketing & public relations (7.5:1).

Only the Advertising, marketing & public relations, Management consulting, and Architecture & engineering industries fall square within the 6 to 10 employees per manager ideal.

Benefits of an ideal manager-to-employee ratio

Research by LinkedIn shows that an average manager-to-employee ratio of 7:1 increases staff retention rates by 12%. This is because when each employee feels recognized by and nurtured by their manager, they’re more likely to stay with the company. A smaller ratio means managers have more time for each employee.

Disengaged managers are a huge issue, as only 35% are actively engaged today. Better manager-to-employee ratios improve manager engagement. Why does this matter?

A report by Gallup indicates that teams led by engaged managers are 59% more likely to have engaged employees. From there, the engaged manager and employees will have 17% higher productivity on average. All of these positive effects trickle down from a healthy manager-to-employee ratio.

Overall, having a manager-to-employee ratio between 6 to 10 employees per manager will:

• Reduce turnover

• Increase engagement

• Increase productivity

Manager-to-employee ratio FAQ

1. How many people should a manager handle?

   Ideally, a manager should manage between 4 to 10 people, with 6-7 being the happy medium. When managers handle 6-7 people, employees feel more recognized and managers can still keep themselves busy. This leads to reduced turnover and higher productivity rates.

2. What is the disadvantage of too many managers?

   The biggest disadvantages to too many managers are muddled communication and bad prioritization. If the manager-to-employee ratio is only 2:1, for example, the amount of bureaucracy can lead to communication challenges within the organization.

   Instead of managing one team, managers might try managing employees not meant to be under their control. This will create confusion around responsibilities and accountability, as the imbalance blurs the lines of authority. This can lead to a complex hierarchy, causing delays in decision-making processes and hindering effective communication.

3. What is the disadvantage of too few managers?

   Having too few managers can give current managers too many responsibilities, leading to oversight and poor communication. With too few managers, companies risk overwhelming the current staff with excessive responsibilities. Due to increased workloads, managers can experience burnout.

   Additionally, having too few managers can lead to inadequate supervision, decreased morale, and challenges in coordinating and implementing tasks. The ultimate result can be reduced productivity and increased turnover for employees.

4. How do you manage 10 people?

   There are many ways you can effectively manage 10 people in the workplace. Some of our top tips include:

   • Define goals and expectations. Clearly lay out roles, responsibilities, and team objectives so all employees understand how to meet goals.

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   • Communication. Schedule regular check-ins to discuss progress, address concerns, and keep everyone informed. And, when speaking to employees, ensure they feel comfortable sharing ideas, feedback, and concerns.

   • Recognition. Acknowledge and celebrate achievements to boost morale and motivation.

   • Flexibility. Be adaptable and open to changes. Sometimes things come up, and plans need to be adjusted. Being able to do so gracefully and efficiently is the key to success.

   • Empathy. Your employees are only human, and it’s vital to understand and acknowledge their individual needs and challenges.

   • Conflict Resolution. Address conflicts promptly and seek resolutions that benefit the entire team.

   • Professional Development. Support the growth of team members through training and opportunities for skill development.

   • Team-building Activities. Foster a positive team culture through activities that promote collaboration and team morale.

Conclusion

Having a good manager-to-employee ratio is important for workplace success. The ideal is anywhere between 6 and 10 employees per manager, with the lower end of that range offering the best results.

In this way, large companies can learn a thing or two from small businesses. Having a manager-to-employee ratio of 6:1 reduces turnover, and fosters more recognition and productivity. By increasing the average number of managers, large companies can reap many benefits.

References

1. Gallup – Why Great Managers Are So Rare

2. Statista – Management to employee ratio at professional services organizations in 2018, by industry segment

3. LinkedIn – 2020 Workplace Learning Report

4. Gallup – State of the American Manager