Organizations rely on middle managers to bridge the gap between ambitious strategy and daily execution. However, as more companies flatten hierarchies and cut middle manager positions, that bridge is collapsing and the cracks are showing. Employees increasingly depend on direct managers for clarity, while senior leaders are often perceived as distant and unresponsive.
The danger isn’t just overworked managers, but a breakdown in trust and alignment. Closing this void will require senior leaders to take ownership of communication in ways many have not had to before.
When Leaders Don’t Step In
Recent findings make the risks clear. In Firstup’s Manager Impact Survey of 1,000 U.S. employees at organizations that experienced layoffs in the past year, workers identified serious shortcomings in senior leadership. More than a third said their leaders weren’t effective in helping them feel heard or supported, while nearly as many pointed to a lack of belonging. Four in ten employees felt leadership failed to provide mentorship or career guidance, and nearly half described communication as only “somewhat effective” at best.
These are not small gaps. They point to a leadership credibility crisis. Employees are signaling that the very people who should steady the ship during turbulence are failing to deliver connection, clarity, and trust.
The Burden on Direct Managers
With fewer middle managers, direct managers have become the default translators of corporate strategy. Nearly seven in ten employees say their direct manager is their primary source of company updates, and even more depend on them to explain what changes mean for their role. Direct managers are also expected to provide coaching, recognition, and career guidance on top of their operational responsibilities.
This reliance makes sense; employees naturally turn to the person closest to them for answers. But without middle managers to buffer and support, direct managers are carrying more than they can reasonably handle. They face larger teams, mounting demands, and the pressure of filling communication voids that were never meant to be theirs alone.
And while it might seem logical for senior leaders to step in, employees don’t see that happening. Instead, they perceive executives as out of touch, inaccessible, and only partially transparent. The result is a dangerous dynamic: employees leaning harder on managers who are already overwhelmed, while executives remain a step removed from realities on the ground.
Why It’s a Business Risk
The consequences extend well beyond morale. Communication gaps drain performance and profits: 44% of project failures and nearly one in five lost sales trace back to miscommunication. The financial toll is steep — when managers lack capacity to guide their teams, turnover rises, costing 50% to 200% of an employee’s salary and eroding institutional knowledge in the process.
The ripple effects don’t stop there. Missed deadlines damage customer trust, misaligned execution stalls growth, and disengaged employees weaken culture from the inside out. Flattening structures may reduce short-term costs and look efficient on paper, but if leaders don’t account for these ripple effects, the savings are quickly erased by inefficiencies, disengagement, and lost revenue.
5 Ways Senior Leaders Can Step Up Now
Closing this gap isn’t about asking direct managers to “do more.” It calls for a reset in how senior leaders approach communication and connection. Practical steps include:
- Showing up with transparency. Employees don’t expect leaders to have every answer, but they do expect honesty. A simple framework of “Here’s what I know, here’s what I don’t know, and here’s when I’ll update you” builds credibility and prevents rumors from filling the silence.
- Making listening a discipline. Leadership communication cannot only flow downward. Leaders must create feedback loops that surface what’s clear, what’s confusing, and what’s missing. These conversations fix misunderstandings early and show employees that their perspective matters.
- Supporting managers with context. Direct managers shouldn’t have to translate every complex message on their own. Talking points, FAQs, and plain-language explanations help ensure consistency and save managers valuable time. Providing these resources ensures managers are supported in their evolving role as translators of strategy and gives them the best chance to succeed.
- Prioritizing connection. Employees often report that executives feel distant. Town halls, Q&As, and informal check-ins, even in small doses, go a long way toward making employees feel seen and heard.
- Investing in communication tools. Systems like searchable hubs for policies, collaboration platforms like Teams or Slack, and mobile-first apps for frontline workers reduce friction. These don’t replace human connection — they amplify it.
A New Test of Leadership
Through 2026, Gartner predicts that 20% of organizations will use AI to flatten their structures, eliminating more than half of today’s middle management roles. This trend makes one truth unavoidable: senior leaders can no longer rely on others to do the critical translation work.
Flattening management layers may be inevitable, but leaving communication to chance is not. The evidence is clear: employees want clarity, connection, and honesty, and they notice when executives don’t deliver.
Senior leaders who step up now by listening, showing up, and equipping managers with the right tools will strengthen trust and accelerate execution. Those who remain distant risk turning small gaps into lasting cracks in culture and performance.
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