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April 30, 2015 08:00 pm

Yes, You Can Blame Your Pointy-Haired Boss On the Peter Principle

Nerval's Lobster writes: You've heard of the Peter Principle, which suggests that all employees manage to rise to the level of their incompetence. (That is to say, everybody is promoted until their skills and strengths no longer align with their current position.) While the Peter Principle is often treated as a truism, a recent Gallup study (registration required)—the result of four decades' worth of research, involving 2.5 million manager-led teams—suggests that it holds a significant degree of real-world truth (registration required). "Gallup has found that only 10 percent of working people possess the talent to be a great manager," the study mentions in its introduction. "Companies use outdated notions of succession to put people in these roles." In Gallup's estimation, there are so many bad managers out there that one out of every two employees have "left their job to get away," according to the study. "Managers who are not engaged or who are actively disengaged cost the U.S. economy $319 billion to $398 billion annually." In other words, there are a lot of pointy-haired managers out there.

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