HR Tip: Only one in ten have talent to become manager

A Gallup Study, The State of the American Manager: Analytics and Advice for Leaders, featuring 40 years of analysis covering 2.5 million manager-led teams in 195 countries, and measures of engagement for 27 million employees, concludes that only one in ten have talent to become managers and another two-in-10 working adults have some of the traits to become effective managers with the right coaching and development.

The report notes that "authentic management talent is rare" and the majority of managers are miscast.

In the report, organizations are advised to develop career paths for employees based on talent rather than title. The strategy of putting people in managerial roles because they were successful in previous roles or because they have been with the company for a long time is a "flawed strategy with serious consequences for an organization's engagement, financial performance and long-term sustainability," Gallup said.

Companies are also advised to reward for performance, instead of title. "Top performers deserve the highest pay, whether they are in manager or front-line roles."