Employees feel their bosses have become more demanding, and the crunch is taking its toll on both groups, according to new data from Perceptyx, the global leader in employee listening and actioning for a better workplace.  

Researchers at Perceptyx’s Center for Workforce Transformation surveyed more than 1,500 managers and 4,300 employees in the U.S. and Europe to quantify the trend towards tougher leadership tactics and their impact.  

Nearly two-thirds (64%) of managers report feeling pressured from above to take a harder stance on performance this year—and these managers are even more likely to want out. They are twice as likely to say their job is more challenging than it was last year, 1.8 times as likely to say workplace stress makes it hard to be productive, and 1.6 times as likely to be seeking a new role. And about seven in 10 say they’d give up managing people altogether if they could.  

Employees feel the pressure, too, as 40% agree that their managers have adopted a more demanding leadership style int he past year, compared to 26% who disagree. More specifically, 56% of workers agree that their manager expects them to step up to new challenges without any extra support, and 40% have been told underachievers will be replaced.  

One demanding behavior in particular doesn’t go over well with employees: submitting progress reports. Nearly three in four employees whose managers expect weekly summaries say work stress has made it difficult to be productive at least one day last week, about 1.4 times the rate of those with more trusting managers.  

But tough managers are not necessarily perceived as bad managers. Even the best managers, according to employee ratings, are asking more from their teams. However, the research indicates how they ask matters. “Strongman” tactics can drive employees to look for other opportunities, while managers who challenge with care, clarity, and a commitment to their people engender respect and loyalty.  

Even when managers aggressively drive performance, employees with excellent bosses: 

• are nearly four times as likely to believe their manager isn’t tough just for the sake of appearances, but rather because they authentically care about employee success; 
• are 2.4 times more likely to strongly disagree that their boss “rules with an iron fist” and 2.5 times as likely to strongly disagree that their organization views softer approaches as weak; and 
• are still 2.7 times as likely to feel valued. 

By contrast, managers who display “strongman” tactics send employees to the door—especially high performers. 

• Three in four employees who say they’re being “ruled with an iron fist” are actively job seeking. 
• When fair or poorly rated managers become more demanding, it gives their employees an additional push out the door.  

The organization and the economy pay the price when a hardline stance impacts employee output and engagement. Perceptyx analysis estimates that poor people management costs the U.S. more than $500 billion annually through outcomes like high turnover and reduced productivity. 

“Managers are really on the edge, and it’s not getting better. Organizations putting extra pressure on their managers to harden their leadership style may think they are getting better results, but the data says otherwise,” says Emily Killham, senior director and head of the Center for Workforce Transformation at Perceptyx. “Ruling with an iron fist doesn’t translate to better performance from team members, and it also drives managers right out the door. Focusing on results and holding employees accountable doesn’t make you a bad manager, but that approach is best achieved through care and commitment.”