Underperforming middle managers are cutting the productivity of British business to the tune of £220bn per year, according to research by management consultancy Hay Group.

The report found that 38% of UK directors believe that their organisation is “paralysed” by ineffective middle management, and 40% claim that their middle management is the single greatest barrier to achieving their company’s objectives.

According to the report, Corporate Soufflé – Is The Middle Giving Way? 54% of senior managers feel that middle managers are not committed to achieving their company’s strategic goals, with 62% bemoaning their lack of management and leadership skills.

Giles Walker, senior consultant at Hay Group and author of the report says: “British business leaders are struggling to compete in a challenging global economy because middle management lacks the skills to make business strategy happen.
“Unless UK Plc takes action to address the skills gap, this productivity erosion will only continue.”

The report found both senior and middle managers diagnose a lack of training and development and ineffective performance management as key causes of middle management underperformance.