Death of the Middle Manager

Marc Denholm • Jan 16, 2015
Remember managers? They were all the rage last century, when professional advancement equated to the pursuit of authoritative job titles and everyone knew their place in the hierarchy. If you had no discernible skills other than irritating or coddling those who did, you could go far. Not so anymore.

A study by job-matching company TheLadders shows middle-management jobs in terminal decline, with technology stepping into the breach. The research analyzed common keywords and phrases used by recruiters in postings, and by job seekers in searches. Out of the top 10% of growing jobs, less than 2% of roles contain the words ‘manager’ or ‘director’ and overall, mid-management positions are decreasing in relative popularity.

Does this signify a fairer, more meritocratic distribution of compensation? Or is it just a semantic sleight of hand designed to bewilder the propagation of the status quo? In the tech industry at least, all signs point to the former. The three fastest-growing jobs (Dev Ops Engineer, iOS Developer and Data Scientist) didn’t even exist ten years ago. Other new additions to the recruitment lexicon include UX Designer, UI Developer and Android Developer – all in the top 10 job titles, each one posted 15 times more frequently than they were five years ago.

The commonality here is ‘developer’, which appears explicitly in three of the top 10 job titles, and is implied by almost all of the rest. Clearly, these roles require completely different skill sets than management, but those with the qualifications to do them can command similar pay packets to ‘managers’ and ‘directors’ due to high demand.

Commensurate with this shift in management structures, the growth of cloud computing is putting an end to much of the administrative legwork involved in coordinating large numbers of staff. Everything from payroll to production schedule can be managed by a shared infrastructure, with businesses only paying for what they need and upgrading as necessary. There’s no software or hardware to take care of. Different departments can talk to each other freely without having to escalate a problem through unwieldy management tiers before it reaches the person who can solve it.

As the market adjusts to reward highly skilled jobs at least as handsomely as nominal ‘leaders’, few are mourning the decline of a management culture that favours watching employees’ every move over real innovation. According to a decade-old survey cited in a Forbes article from 2013, micromanagement was ‘the most significant barrier to productivity’; a 2011 study published in The Journal of Experimental Psychology concurred, with respondents saying ‘helicopter bosses’ and poor performance go hand in hand.

Of course, great managers do exist and remain essential to the success of businesses great and small. The problems arise when involved, effective leadership mutates into dictatorship, suspicion and incessant checking-in. When a detail-oriented, attentive team leader strays into control freakery, it’s bad news for everyone.

The middle manager is fast becoming an anachronism. The once-ubiquitous boss is making way for true leaders who command respect, not fear. And if there’s one thing this new raft of highly qualified developers and analysts have from their colleagues, it’s respect. The money follows the talent. The skills are, finally, paying the bills.

 

Marc is a Director of The Talent Hive and leads our IT recruitment practice. Originally from the UK, Marc has been living in Christchurch, New Zealand for ten years and working in the recruitment sector for just as long. Marc has worked as an in-house recruiter and within multinational recruitment consultancies and independent SME recruitment businesses.

At The Talent Hive we specialise in connecting IT & Engineering professionals with the right career opportunities. We encourage collaboration, socialising your success and sharing industry insight and expertise. Start the journey, connect with The Talent Hive today.

Temp & Contract Recent Trends

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The economic conditions are influencing the contract employment landscape in several ways. Here are some of the trends Talent Hive has seen recently.  Demand Shifts NZ firms facing economic headwinds are hesitant to commit to FTE hires but with projects and deadlines still to deliver on, there is likely to be more reliance on temporary and contract solutions to manage workloads in the coming months. Available Talent Although not widespread, layoffs and restructures in the Tech sector could lead to a larger pool of candidates available for temporary and contract work, and Talent Hive has seen an increase in enquiries from people looking to understand how they might set themselves up for contract engagements. This has the potential to increase competition but could also provide businesses with access to qualified talent on a flexible basis. Tech Sector Specifics We are seeing an increase in demand for contract staff recently, particularly Software Developers, Integration and Solution Architects, and Business Analysts. This upswing in demand is reflected in the recent Seek job listings data. There are 207 Contract IT/Tech roles advertised on Seek today and 23% of those contract roles have been listed in the last 7 days. 52 of the 207 contract roles advertised are for Software Eng/Developers with 30 listed ads for Contract BA’s. Wage Control In Stats NZ’s latest update, New Zealand's salary rates actually increased by 4.1 percent in the year to March. That labour cost growth slightly outstripped inflation, which was sitting at 4 percent. Contract hourly rates in the Technology sector have stabilised in recent months as hiring demand has decreased and we may even see hourly rates come back a little, particularly for role types where there is an oversupply of contract talent. Hybrid Work Trend One trend we are certainly seeing in the contract market are fewer remote work opportunities. Increasingly there is a requirement for contractors to have the ability to work some of the week at a designated office and this is restricting the opportunities contractors are able to go for. Full remote work options aren’t completely gone but they are significantly reduced. Contract candidates must be open to in-office work for at least some portion of their engagement. Overall, the current climate creates a complex landscape for both businesses seeking talent and professionals exploring temporary and contract opportunities. Success for Contractors will depend on adaptability, flexibility around rates, and contract length. Talent Hive's Value Talent Hive's understanding of the current market dynamics, along with our strong network of skilled professionals, positions us uniquely to support both clients and candidates Addressing Uncertainty: For businesses navigating hiring uncertainty, Talent Hive offers flexible staffing solutions. We have access to contract talent that are ready to fill immediate skill gaps and help organisations manage fluctuating workloads. Beyond Just Tech Skills: We understand that finding the right technical expertise is only half the battle. Talent Hive's strong connections within the contractor talent pool allow us to identify professionals who are not only technically capable but also a strong cultural and organisational fit for our clients. This approach ensures smoother onboarding and a positive impact for both the contractor and the employer. We would like to share some of the contractors we’re working with at the moment. Click below to view some of the great IT talent we're working with to find roles at the moment.

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