FY 2025–26 · Annual Report

The State of
Managers Report 2026

Drawing on insights from 24,315 managers and 132,932 feedback givers, this year's report asks a hard question: is the AI era quietly eroding people leadership?

People Manager Effectiveness Index

79↓4 pts

The sharp decline in FY 2025-26 suggests managers may be nearing a pressure threshold in today's AI-era workplaces.

82
FY23-24
83
FY24-25
79
FY25-26

Editor's Note

Why this report matters

As organisations demand greater agility and continuous adaptation, managers are finding it harder to balance operational delivery with the coaching, listening, and support behaviours employees expect. This year's findings capture both the strengths and the strain and what it means for the future of people leadership.

79
Effectiveness Index down 4 pts YoY
+12%
Rise in team burnout since FY24-25
5 pts
Execution still outpacing Wellness

Inside the findings

Generations

Gen Z managers are emerging as the strongest people leaders

Gen Z scored 85 on the Effectiveness Index the highest of any generation driven by stronger Connect, Develop and Inspire behaviours.

Section 3

Burnout

Great People Managers™ cut burnout risk by more than half

Teams under Great People Managers report just 12% burnout, versus 27% under Aspiring Managers competence and care together matter more than either alone.

Section 2

Blind Spots

Managers consistently overrate their own people-centricity

The top 5 self-rating gaps: Care for Individual, Psychological Security, Development Focus, Seeking Suggestions, Fair Treatment.

Section 2

Table of Contents

What's inside the report

SECTION 01

The Shifting Reality of People Management in the AI Era

pg. 01
SECTION 02

Inside the Evolving Experience of Indian Teams

pg. 07
SECTION 03

The Changing Role of People Managers

pg. 17
SECTION 04

The Making of a Great Manager to Work With®

pg. 29
PLUS

India's Top 100 & Top 50 (CEOs, MDs & Founders) Great People Managers™ 2026

pg. 38

The Making of a Great Manager to Work With®

What sets a Great Manager to Work With® apart

Across the dataset, the certification consistently predicts retention, promotion, and goal clarity — far beyond what other managers deliver.

5x

More likely to provide better goal clarity to teams

2x

More likely to be promoted than other managers

60%

Manager-induced retention, vs. 39% for others

19 pts

Higher on Psychological Security than other managers

24,315
Managers surveyed
132,932
Feedback givers
1000+
Organisations partnered
7th
Edition of the study

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State of Managers Report 2026