Manager capability: The key limiting factor in HR transformation
In today’s complex business environment, HR transformation is essential for large companies striving to remain competitive. However, many organisations overlook a critical element that could unlock their full potential: empowering line managers to be accomplished people leaders.
Many managers are promoted to line management roles based on technical expertise rather than people skills. These “accidental managers” often lack the training necessary to bring out the best in their teams. Yet, as the primary support for the workforce, they are essential in shaping employee experience and optimising performance.
Addressing this skills gap is urgent if organisations are to achieve sustainable success and a positive employee experience, as line managers are the first line of support for the workforce.
Current challenges in the business world
The recent Labour budget announcement has introduced a new set of challenges for business leaders, making strategic and innovative planning more crucial than ever. Key changes include:
- Higher employers’ National Insurance contributions: Businesses must allocate additional resources to cover increased contributions, impacting budgets directly.
- Increased minimum wage: With a higher minimum wage, companies need to adjust payrolls, which will affect budgeting and pricing strategies.
- New sexual harassment duties and day-one rights: These changes may lead to a rise in tribunal claims, adding potential legal and administrative costs.
As the business landscape grows more complex, HR teams are on the front line, adapting to an evolving regulatory environment. This new landscape demands innovative thinking to manage costs, comply with regulations, and, importantly, to support the workforce more effectively.
Limitations of traditional ways of working in HR
Many modern HR departments struggle with overwhelming administrative demands that limit their capacity for impactful, strategic work.
- Overwhelming administrative work:
HR teams are frequently bogged down by routine administrative tasks. While responsible for establishing policies and providing guidance, they often end up handling daily employee relations issues. - Burnout and reduced capacity for strategic work:
This constant workload can lead to burnout among HR professionals and impact the overall employee experience. Focused on case management and responding to inquiries, HR teams lack the time for strategic initiatives and timely decision-making. - Missed opportunities for manager-led support:
Line managers are closer to their teams and can often provide faster, more personalised support. However, without the right tools, training, and authority, they’re unable to fully support employee relations—leaving much of this work to HR by default. - The need for digital empowerment:
To boost managerial capability and unlock their potential in supporting their teams, organisations must invest in digital tools and training. Shifting daily processes to line managers allows HR to focus on high-impact initiatives, improving employee relations and overall satisfaction.
Our analysis at AdviserPlus indicates that new day-one rights alone could increase HR resource needs by up to 13%, making an HR operations transformation essential.
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The role of line managers in HR transformation
Line managers are uniquely positioned to address employee concerns directly and manage relationships effectively. They understand their teams well and can spot issues before they escalate.
By shifting certain responsibilities—like managing performance issues, sickness absence, and grievance cases—from HR to line managers, organisations can enable a more responsive and engaged workforce. This proactive approach enables managers to handle issues in real-time, preventing unnecessary escalation.
For example, companies like Wickes and Sainsbury’s have implemented empower®, an employee relations case management system specifically designed to empower their line managers. empower® provides guided journeys, alerts and document templates that enable managers to self-serve and manage employee matters in the moment.
With easy access to process workflows, policy and learning resources, line managers can handle everyday issues, such as performance concerns or low risk employee grievances, without needing to involve HR in every instance.
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HR transformation success stories from the retail sector
The results? Line managers now have a more efficient and consistent process for managing employee relations issues through self-service guided journeys. This approach simplifies and speeds up the process, allowing HR to focus on higher-risk, complex cases and strategic business priorities. As a result, operational efficiency has improved, helping to reduce HR case durations.
And this has also been instrumental in Sainsbury’s being shortlisted as a finalist in this year’s HR Excellence Awards. Sainsbury’s has empowered 63% of line managers to self-serve cases with no HR intervention using empower®, significantly improving the handling of employee relations cases around the clock.
Barriers to boosting line manager capabilities
Despite the benefits, many organisations face obstacles to empowering line managers. Cultural resistance is a significant barrier, with HR often reluctant to delegate control out of concern that managers may lack the skills for complex employee issues.
Many line managers may also feel unprepared due to a lack of training and digital resources, which can make them hesitant to self-serve in people matters.
Misalignment between managers’ skills and the organisation’s strategic goals also creates challenges, especially without targeted development programmes.
Strategies for building manager capability
To overcome these challenges, organisations must invest in building the capabilities of their line managers. Here are several strategies to consider:
- Training and development programmes: Targeted training that equips line managers with essential skills, like conflict resolution, coaching, and communication, can enhance their ability to manage employee relations.
- Creating a culture of trust and accountability: Encourage a workplace culture where managers are trusted to make decisions. Open communication channels between HR and line managers, along with clear accountability expectations, are essential.
- Utilising HR case management technology: Building a strong business case for investing in HR technology can demonstrate cost savings and ROI. User-friendly HR technology that empower line managers to self-serve employee relations issues, access resources, and collaborate with HR can improve efficiency and boost manager confidence.
Measuring success and HR transformation
Empowering line managers is not just a strategy for enhancing employee relations; it’s a fundamental shift that can drive HR transformation across UK enterprises. Investing in manager capability can relieve HR’s burdens, create a more engaged workforce, and enhance organisational performance.
The critical role line managers play in business success cannot be overstated. HR leaders need to set strategies that empower managers to lead effectively, aligning with the broader organisational goals.
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