Only 36% of Employees Are Perceived to Be Delivering Great Work
A groundbreaking study from Leadership IQ reveals a critical performance gap in the American workforce—and a massive opportunity for improvement.
TLeadership IQ surveyed 7,225 managers across 484 U.S. companies, asking one deceptively simple yet highly revealing question:
"What percent of your employees do you think are delivering great work right now?"
Managers chose from five response ranges: 0-20%, 21-40%, 41-60%, 61-80%, and 81-100%. After analyzing the responses using a weighted midpoint method, the findings revealed a sobering reality about workplace performance perceptions.
- The average perceived rate of great performance across all companies is 35.7% — meaning managers think barely more than 1 in 3 employees are delivering great work.
- Even more striking: 62% of managers believe that 40% or fewer of their employees are delivering great work. This suggests that most managers see the majority of their workforce as underperforming relative to what's possible.
- Significant variation exists between companies—some are optimistic, while others report widespread underperformance.
“What percent of your employees do you think are delivering great work right now?”

Bottom line: Nearly two-thirds of managers (62.1%) believe that fewer than half of their employees are delivering great work.
QUICK VIDEO OVERVIEW OF THE STUDY

Complete Distribution of Manager Responses

"These results raise some uncomfortable but essential questions," said Mark Murphy, Founder of Leadership IQ and lead researcher on the study.
"If fewer than half of employees are seen as performing at a great level, we have to ask: Are our expectations too high? Are we failing to give people the tools and support they need? Or are we not confronting performance issues honestly enough?"

Why We Chose the Phrase "Great Work"
In designing this study, we were deliberate in our use of "great work" rather than "good work," "excellent work," or "outstanding performance." We chose "great work" to reflect the most realistic and meaningful standard for top-tier performance in today's organizations.
In our leadership programs, we teach a simple but powerful framework to define performance levels:
• Needs Work: Unacceptable or subpar effort
• Good Work: Meets expectations—solid, dependable, and fine
• Great Work: Goes beyond—proactive, impactful, inspiring, and elevates others
As Mark Murphy explains: "The difference between good work and great work isn't supernatural talent or superhero effort. It's a subtle but powerful set of behavioral choices—often small habits—that separate people who merely do their job from those who elevate the work of everyone around them."
In nearly every organization we've studied, leaders recognize what separates someone who is merely "good" from someone who is truly "great." Sometimes it's measurable—like higher output or fewer errors—but often it's behavioral traits like taking initiative, championing change, helping teammates succeed, sharing lessons learned, and inspiring others through example.
Critically, great work is not about titles or hierarchy. As Murphy says: "You don't need a leadership title to do great work. It's a choice. One employee can choose to quietly accept a change; another can choose to lead others through it. Both are doing their jobs, but only one is doing great work."
What's Behind the Performance Gap?
Follow-up interviews with respondents revealed several themes that help explain the gap between expected and actual performance:
Unclear expectations: Many employees may not have a clear definition of what great work looks like in their role.
Lack of coaching and feedback: Without regular support and feedback, employees may struggle to improve or aim higher.
Leadership blind spots: Some leaders may overestimate how clearly their expectations are communicated or how effectively performance is being managed.
Systems and processes: Organizational structures may inadvertently discourage the initiative and risk-taking that characterize great work.
Recommendations for Leaders
To close the gap and increase the number of employees doing great work, Leadership IQ recommends that leaders:
1. Clearly define what "great work" means for each role—not just outputs, but behaviors and quality standards that create impact beyond the individual.
2. Provide frequent performance coaching, not just annual reviews. Great work develops through ongoing guidance and real-time feedback.
3. Identify and celebrate examples of great work, using them as models to guide others and reinforce the behaviors you want to see.
4. Connect daily work to organizational impact, so employees understand how their contributions matter and how great work in their role drives broader success.
5. Create systems of accountability that reinforce high performance while addressing mediocrity constructively and supportively.
6. Remove barriers to great work by examining processes, policies, and cultural norms that may discourage initiative, collaboration, or innovation.
"If only 36% of employees are delivering great work," Murphy concludes, "then we've got a huge source of untapped potential. The right leadership moves can dramatically increase that number—and transform organizational performance in the process."

Methodology: How We Calculated the 35.7% Average
While the survey used response ranges, we used a weighted midpoint analysis—a widely accepted technique for estimating averages from categorical data.
The Calculation Process
1. Each range was assigned a midpoint value:
0-20% → 10%
21-40% → 30%
41-60% → 50%
61-80% → 70%
81-100% → 90%
2. We calculated the percentage of managers who selected each range (see table above).
3. We multiplied each midpoint by the percentage of managers who selected that range:
0-20%: 31.8% × 10% = 3.18
21-40%: 30.3% × 30% = 9.10
41-60%: 20.9% × 50% = 10.46
61-80%: 11.3% × 70% = 7.93
81-100%: 5.6% × 90% = 5.03
4. We summed the results to arrive at a weighted average: 35.7%
This method provides a statistically sound estimate of how managers perceive employee performance across the categorical ranges.

Key Insights from the Distribution
The 0-20% and 21-40% groups had the highest influence on the average due to their large representation (62.1% of managers combined), even though their midpoints are relatively low.
The 41-60% range contributed significantly to the average based on both its frequency (20.9%) and moderate midpoint (50%).
The 61-80% and 81-100% ranges had limited impact due to low representation (16.9% combined), even though they represent high-performance perceptions.
This distribution reveals that pessimistic views of employee performance far outnumber optimistic ones—a pattern that suggests either widespread performance challenges or potentially unrealistic expectations.
The Opportunity Ahead
These findings point to an enormous opportunity for organizational improvement. If the majority of managers see most employees as capable of more, the potential impact of targeted leadership development, clearer expectations, and better support systems could be transformational.
The question isn't whether employees can do great work—it's whether leaders are creating the conditions for it to flourish.

about the study
This research was conducted by Leadership IQ, a leadership training and workplace research firm. Data was collected during the month of May, 2025 via an online survey distributed to managers in a diverse mix of U.S. companies spanning industries like healthcare, finance, manufacturing, and technology. All responses were anonymous to ensure candid and accurate input. With an average of 15 managers surveyed per company, the study captured perspectives across multiple management levels within organizations—from frontline supervisors to senior leadership—ensuring robust within-organization representation while capturing the diversity of management perspectives across different company sizes and structures.
Leadership IQ is an award-winning leadership training and research company that has trained leaders across virtually every industry. Leadership IQ’s research has been featured in The New York Times, Forbes, CNN, Bloomberg BusinessWeek, Fortune, NPR, and hundreds more publications. For more information about this study or Leadership IQ's programs, visit www.leadershipiq.com.
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