Does your firm have more managers than makers?

The tech industry has always stood at the forefront of innovation and employee satisfaction. Yet, as 2023 closes, the sector’s once high-flying image is grappling with a growing sense of disenchantment among its workforce. The malaise is palpable, with many tech workers expressing their struggles with job insecurity, diminished job satisfaction and a culture that seems increasingly alien to them.

Over the years, a pronounced shift has occurred within tech companies, often referred to as ‘managementisation’. This refers to a significant increase in the number of managerial positions relative to front-line workers. The debate rages on as to whether this influx of managers has created an environment that hinders rather than helps the creative processes and agile operations that tech companies are known for.

The Paradox of Employee Satisfaction

Glassdoor’s data illustrates a surprising trend: those in non-technical roles report greater job satisfaction compared to their counterparts in product development and innovation. This disparity raises questions about the internal dynamics of tech companies and whether the structure and culture are optimised for the well-being of all employees.

A changing economic environment makes the tech sector’s problems even worse. Rising interest rates have led to a reassessment of investments and a tightening of budgets, which in turn has resulted in wage freezes, layoffs and increased performance demands on existing employees. These factors coalesce to create an environment that’s a far cry from the industry’s more prosperous and expansive times.

The over-management debate intensifies

The increasing managerial ranks in tech have led to a debate about the optimal ratio of managers to makers. While management plays a crucial role in any company’s structure, there is a fine line between effective leadership and bureaucratic overburden. The tech industry, known for its lean and flat hierarchies, seems to be tipping towards the latter, impacting its ability to innovate and maintain high employee morale.

A Cultural Shift: From Innovation to Administration

This ‘managementisation‘ may reflect the natural evolution of companies as they grow. However, in the tech industry, it appears to have led to a cultural shift from a focus on innovation to one that is more administrative in nature. This shift could be at the heart of the growing dissatisfaction among tech employees who feel removed from the decision-making processes that affect their work directly.

For the tech industry to navigate its way out of this slump, a concerted effort to engage with front-line workers is imperative. There needs to be a renewed focus on ensuring that the voices of those who are at the coalface of product development are heard and valued. Reinstating this connection could prove vital in rejuvenating the innovative spirit that has long been the hallmark of the tech sector.

Seeking a Balanced Structure

The tech industry is in need of introspection and perhaps a recalibration of its internal structures. Companies need to ensure that the growth of managerial positions does not come at the cost of stifling the innovative impulses that drive the sector. By striking a balance between effective management and the creative freedom of front-line workers, tech companies can aspire to reestablish themselves as the progressive and fulfilling workplaces they once were.