By Emma Hardy, Laura Bermingham and Florentine Vennix

Middle managers creating a fearless workforce: The key to organisational reinvention

September 09, 2024

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In an era where global megatrends and simultaneous crises are reshaping the business landscape, the need for organisations to reinvent themselves has never been more urgent. This reinvention is not just a strategic choice but a necessity to future-proof operating models and ensure long-term economic viability.

Middle managers are at the heart of this transformation. They play a crucial role in cultivating a fearless workplace where innovation can flourish and productivity can soar. Through focusing on developing exceptional people skills, middle managers can foster an environment where employees feel safe to ask questions, learn new skills, share ideas, and take calculated risks . This, in turn, enables their organisations to reinvent and remain relevant in a rapidly changing world.

However, despite the critical role of middle managers in creating a fearless workplace, our 2023 Asia Pacific Hopes and Fears Survey reveals that only one in three workers agree that their manager encourages debate and tolerates small-scale failures in the workplace. This statistic raises two pivotal questions: What are the barriers facing middle managers and employees in building a fearless workplace and driving organisational reinvention? What practical steps can middle managers take?

By addressing these questions, we can uncover the path to empowering middle managers to lead with courage and create an environment where their teams can thrive.

Managers to empower employees to ask questions and challenge decisions: Trust is the foundation of a safe workplace. A lack of trust between employees and their managers can hinder open communication and create an unhealthy culture where people withhold information or ideas to protect themselves. A safe culture is where people feel safe to question the plans, behaviours, and ways of working of others.

Practical tip: Empower employees through creating a safe environment where they can ask questions and challenge the decisions and behaviours of others within the organisation. Actively engage with employees, listen to their concerns, and act on feedback.

Managers to encourage inclusive perspectives and practice supportive leadership: In workplaces where diversity and inclusion is not prioritised, certain groups of employees may feel silenced or excluded, preventing them from contributing fully to the team. The behaviour of managers plays a significant role in shaping the work culture. Managers who are dismissive, punitive or unapproachable may take away from a fearless workplace.

Practical tip: Encourage diverse perspectives and voices in decision-making processes. Create employee resource groups or affinity networks to provide support and representation for underrepresented groups. Invest in development programs that emphasise the importance of approachable, inclusive and empathetic leadership styles.

Managers to set clear expectations: If expectations regarding behaviour and communication in the workplace are ambiguous, employees may struggle to understand what is acceptable and what is not. This uncertainty can lead to fear of making mistakes or expressing dissent, or the fear of calling out inappropriate behaviour.

Practical tip: Ensure role modeling positive and constructive behaviours, encourage open discussions and provide employees with a comprehensive handbook or code of conduct to ensure everyone understands what is expected of them in the workplace.

Managers to share mistakes and offer perspective: Employees may hesitate to raise issues or speak up about ethical dilemmas as they fear negative consequences, such as being reprimanded, criticised or having their career progression slowed. This fear of retaliation can prevent open and honest communication, which is essential for psychological safety.

Practical tip: Create a safe environment through demonstrating that feedback and dissent are welcome, role modeling vulnerability, and managers sharing their own mistakes and recognising employees who speak up.

Managers to consistently offer recognition and feedback: Feedback and recognition is a vital tool for professional growth. It helps employees to understand their performance, develop skills, stay motivated, and maintain accountability. When feedback and recognition are infrequent or absent, employees may feel undervalued and unsupported to share their ideas or take risks.

Practical tip: Provide regular, constructive feedback to employees. Establish formal recognition programs that acknowledge and reward employees for their contributions and achievements, and informal practices like value shares and peer to peer feedback.

Managers to hire and retain future proof skills: In today's rapidly changing business environment, it is more important to hire individuals with a growth mindset and a willingness to learn rather than solely focusing on their current skills. This ensures employees can adapt to new challenges and continuously improve, which is crucial for fostering innovation and maintaining a competitive edge. Retaining employees with future-proof skills is equally important. PwC’s 2024 Hopes & Fears survey says that almost half of employees say that having opportunities to learn new skills is a key consideration when it comes to their decision to stay with their employer or leave for another job.

Practical tip: During the hiring process, assess candidates for their ability to learn and adapt. Ask behavioural interview questions that reveal how they have handled new situations or learned new skills in the past. Look for evidence of continuous learning and curiosity in their professional journey. Additionally, provide ongoing training and development opportunities to current employees to keep their skills relevant and to demonstrate your commitment to their growth.

As we build a fearless workplace to reinvent and remain relevant as an organisation, it becomes evident that this is no longer just the responsibility of HR or the 'tone at the top'. Instead, it's a collective responsibility where middle managers play a critical role in creating this culture of trust, respect, and empathy. They are the ones who are in direct contact with employees and have the power to influence their work environment where innovation thrives, and productivity is unleashed.

To support managers’ in creating a fearless workforce where their teams can thrive, PwC has developed a unique Manager Effectiveness Training Series. This program is designed to provide key skills for managers in interactive, scenario-based workshops. If you would like to learn more about how this program can benefit your organisation, please contact us.

Emma Hardy

Partner, Workforce, PwC Australia

+61 406 761 951

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Laura Bermingham

Director, Workforce, Sydney, PwC Australia

+61 415 758 198

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Florentine Vennix

Manager, Workforce, Melbourne, PwC Australia

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