When a Flat Organization Goes Too Far

For years, companies have treated flatter structures as a sign of progress. Fewer layers. Faster decisions. Less bureaucracy. Lower costs. On paper, that sounds sensible. In the real world, it often creates a quieter problem. Work gets pushed onto fewer managers, the number of direct reports climbs, and the people who are supposed to coach, correct, and coordinate the system lose the time to do it well.

That is no longer a theory. Gallup’s recent work on span of control found that the average number of people reporting to managers rose from 10.9 in 2024 to 12.1 in 2025, nearly 50% above the level Gallup measured in 2013. At the same time, Gallup’s 2026 workplace data showed manager engagement dropping sharply, and its separate leadership research found that leaders often report stronger overall life evaluations while also experiencing greater day-to-day emotional strain. That combination should get the attention of any executive team. It means the manager layer can still look functional from a distance while getting weaker at the exact work only managers can do.