Companies are constantly looking to reduce costs, and a recent trend has been to cut middle management. These workers, who serve as liaisons between CEOs and teams, were deemed unnecessary, and many companies, including Meta and Google, laid them off. However, they soon realized the value of middle management and reinstated them at a later date.

The problem didn’t disappear. Organizations still view middle management as a potentially unnecessary position, but they also recognize its value. So what’s the best solution?

Many of today’s CEOs are reimagining middle management positions, making them more useful in their business environments.

The Benefits of Middle Management

There is no doubt that middle management plays a significant role in a company’s success. They plan, implement, and organize strategies that benefit the company. These managers disseminate information across the hierarchical ladder and make impactful decisions.

Middle managers are at the center of information and social exchanges that occur from the top down. They must possess a high degree of resilience and adaptability to evolving landscapes. With the proper autonomy, they may make real-time decisions that work in the best interest of the organization.

A study by the Italian Social Security Agency revealed that middle management contributes to 10% of productivity improvements in companies. Another study showed that middle managers are responsible for 30% of productivity gains in the U.S. automobile industry.

Why Middle Management is At Risk

However, middle managers are often put under the microscope, making higher executives scrutinize their worth in business environments. For one, they wonder whether a go-between is necessary or if they can communicate directly with the staff.

Additionally, middle managers may make decisions that deviate from orders from higher-ups, feeling they are in the company’s best interests. However, leaders don’t always approve of these decisions.

Like many positions, middle managers also face the threat of being replaced by AI. A recent Gartner prediction revealed that AI would replace 50% of middle management positions by 2026.

Reimagining Middle Management

Middle management has a place in many companies, but those that are on the fence about its value in their firm may consider reimaging the role. Here are some ideas.

• Advanced Training: Middle managers can advance through training that enhances their effectiveness within their organizations. For example, they may be trained in the latest technology. They may update their interpersonal skills or become more effective leaders. These developments will lead them to act as more than a liaison between executives and teams.
• Setting Guidelines: CEOs should empower middle managers to make decisions when necessary. They may establish clear guidelines on when a consultation is required to ensure their directives are correctly implemented. Executives should also make themselves accessible to middle managers so they can assist when last-minute decision-making becomes an issue.
• An Assessment of Strengths and Weaknesses: CEOs should assess the strengths and weaknesses of their middle managers to determine the roles for which they are best suited. These insights will help them maximize their manager’s position in the workplace and determine where they should provide oversight.
• Seeing Uses Beyond AI: AI may handle some middle management responsibilities, but replacing humans with machines is often not the best idea. Rather than make hasty replacements, CEOs must determine how manager-level human insight can benefit the organization. For example, managers can still play a crucial role in maintaining complex relationships, ensuring that AI is used ethically, and developing strategies based on technological insights.

Working on Your Approach

CEOs must actively focus on their relationships with middle managers to maximize their productivity in the workplace. The following tips will help you achieve the best outcomes.

• Strategic Goal Alignment: Middle managers should have a clear understanding of how their responsibilities contribute to the organization’s strategic goals. This insight will improve focus and decision-making.
• Effective Delegation: CEOs should assign tasks based on the strengths of their managers. They should empower managers and encourage collaboration without micromanaging.
• Foster a Supportive Environment: Managers should feel supported by CEOs. Executives should provide them with the necessary resources and establish an open-door policy for feedback.
• Clear Communication: CEOs should identify the most effective communication tools and supplement them with regular in-person check-ins. They must ensure clarity so that managers understand their roles in the company.

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