This company removed all managers. Employees are now 20% more productive and happier

Time Etc consistently ranks in the top 1% of teams worldwide in Gallup's employee engagement survey. (Representational)

Amid a growing crisis of employee engagement, one company has taken an innovative approach to boost productivity and reignite passion in the workplace. At Time Etc, a virtual assistant platform, they recognised the need for a fundamental shift in their management style. So, instead of traditional managers, they embraced the concept of coaching, with remarkable results.

"We started asking the people we were hiring what they needed from a manager," shares the team at Time Etc. "What stood out was how the list they gave us – goal-setting, feedback, personal and professional development opportunities, autonomy – sounded much more like they needed a coach, rather than a manager."

Listening to their employees' needs, Time Etc made a decision. They replaced their managers with coaches, each responsible for a team of six employees. These coaches have a singular focus: to help their employees maximize productivity and achieve their full potential. By providing close mentorship, regular feedback, and guidance tailored to individual strengths, the coaches empower their team members to excel.

"Our coaches are there to act as a first port of call when challenges arise," explains the team at Time Etc. "But instead of directing from above, the focus is on empowering and supporting the employee to find their own way forward."

But what led Time Etc to take such a radical approach? The answer lies in the troubling statistics revealed by Gallup's annual survey on employee engagement. In 2022, employee engagement reached a seven-year low, with only a third of workers reporting feeling engaged at work. This alarming decline raises concerns about the long-term productivity and satisfaction of employees.

The survey highlighted several key factors contributing to this decline, including a lack of clarity in expectations, limited opportunities for learning and growth, a diminished sense of purpose, inadequate utilization of employees' skills, and a feeling of being undervalued and unappreciated in the workplace.

McKinsey's research reinforces these findings, revealing that employees not feeling valued (54%), lacking a sense of belonging (51%), or feeling unappreciated by their managers (52%) were significant drivers behind the "great resignation" phenomenon. Disengaged employees are more likely to seek new opportunities, while those who stay often exhibit decreased productivity and motivation.

Some employers resorted to surveillance software as a solution, exacerbating the problem further. This micromanagement approach erodes trust, increases stress levels, and ultimately hampers engagement and productivity.

The company has integrated a culture of self-improvement into their work practices. Employees receive a monthly allowance to invest in personal development resources, such as Udemy courses or books. Coaches play a pivotal role in recommending relevant reading materials from a well-stocked library of self-growth books. Furthermore, Time Etc organizes regular workshops facilitated by external experts, covering topics such as mindfulness and confidence building.

Time Etc consistently ranks in the top 1% of teams worldwide in Gallup's employee engagement survey since implementing these changes. The connection between trust, support, and engagement is clear, as a survey by Inpulse reveals, "Feeling trusted and supported at work had the greatest impact on how engaged employees were."

Not only has employee engagement seen a significant boost, but the company has also experienced a decrease in employee turnover and fewer sick days. Performance on key goals has improved by up to 20%.

The transition from managers to coaches required equipping the coaches with the necessary skills and tools. Establishing and maintaining boundaries in a non-manager-led environment also posed initial hurdles. However, the gains achieved far outweighed the minor setbacks.