Managerial Practices and Social Policies in France: Summary of the IGAS Report

Executive Summary

The June 2024 report by the French General Inspectorate of Social Affairs (IGAS) analyzes the links between managerial practices in France and national social policies, comparing them to those of Germany, Ireland, Italy and Sweden. Several major findings emerge from it.

First, there is an international consensus on the characteristics of quality management, which rests primarily on a strong degree of worker participation and the recognition of work accomplished. These principles, complemented by autonomy and clarity of roles, have become imperatives in the face of contemporary economic challenges such as labor shortages and the evolution of employee expectations.

Second, the quality of management has a direct and significant impact on the economic performance of companies, the health of employees, the quality of employment and engagement at work. Participatory management is correlated with a decrease in absenteeism and turnover, factors essential to the employment rate and productivity.

Third, France stands out for its “unflattering” position compared to its European neighbors. French managerial practices are judged very vertical and hierarchical, with a level of recognition of work and employee autonomy that is markedly lower. Manager training, judged too academic and insufficiently focused on cooperation, contributes to this situation.

Fourth, the report highlights a French paradox: France has the most comprehensive regulatory arsenal aimed at influencing management (right of direct expression, obligations regarding Quality of Life and Working Conditions – QVCT), yet obtains mediocre results. Conversely, the countries studied favor more targeted interventions and rely more heavily on robust social dialogue, notably co-determination in Germany and Sweden, which actively shapes managerial practices.

Finally, despite this diagnosis, the current context is judged favorable to change. Strong social demand for the evolution of practices, the crisis of meaning at work, the development of apprenticeship, and the new European directives (CSRD) create an opportunity for public intervention. The report concludes by proposing a series of recommendations aimed at improving the work environment and renovating the legal framework to foster more participatory and effective management.

1. Consensus on the Characteristics of Quality Management

The report establishes that, beyond national and sectoral specificities, the principles of “good” management are the subject of broad consensus in Europe. This management is resolutely oriented toward people and favors employee autonomy.

Fundamental Principles

The analyses converge around three essential pillars that define effective and desirable management:

  1. Worker Participation: Defined as the possibility for employees to take part in decisions that affect their work. It takes two forms:
    • Operational: Latitude in carrying out tasks (autonomy).
    • Organizational: Participation in broader company decisions. This participation can be direct (professional dialogue) or indirect, via staff representatives (social dialogue).
  2. Recognition at Work: Considered a decisive element, it goes beyond compensation and includes close managerial levers such as the right to make mistakes, encouragement of initiatives and valuing of efforts.
  3. Autonomy: An essential factor in quality of life at work, it must nevertheless be conditioned by managerial support and democratic decision-making mechanisms so as not to become a factor of isolation or precariousness.

Factors of Convergence

This convergence of managerial principles is probably linked to economic and social imperatives shared by the countries studied:

  • Labor shortages requiring the attraction and retention of talent.
  • Transformation of expectations of employees, accelerated by the Covid-19 pandemic (remote work, work/personal life balance).
  • Quest for meaning and individualization of the relationship to work.
  • Need to adapt to major transitions (demographic, ecological, digital) which require workers to be more autonomous and adaptable.

2. Impact of Managerial Practices on Performance and Social Policies

The report demonstrates that the quality of management is a key determinant not only of company performance, but also of the outcomes of social policies.

Economic Performance of Companies

Numerous econometric studies (Eurofound, DARES, France Stratégie) confirm the existence of a positive correlation between good managerial practices and economic performance. Companies that favor a high degree of autonomy, strong employee involvement and comprehensive training strategies show better results in terms of productivity, innovation and growth. An analysis conducted by IGAS confirms a significant statistical link between the quality of managerial practices and the growth of companies’ gross operating surplus (EBE).

Health and Quality of Life at Work

Management has a direct impact on the physical and mental health of employees.

  • Psychosocial Risks (PSR): Autonomy, meaning at work, trust and recognition are factors that reduce PSR. Conversely, low employee participation in decisions is correlated with a loss of meaning and an increased risk of depression.
  • Absenteeism: A study by Laurent Cappelletti and Henry Savall estimates the overall cost of absenteeism in France at 100 billion euros per year, attributing the majority of “avoidable” absenteeism to poor management practices.

Employee Engagement and Quality of Employment

In a context of tension in the labor market, employee engagement and retention are crucial issues.

  • Engagement: Eurofound surveys show a direct correlation between the level of employee participation and their degree of involvement. 47% of employees in organizations with high participation are highly engaged, compared to only 24% in those with low participation.
  • Quality of Employment: Management influences several dimensions of employment quality, notably working conditions, working time and employee representation. Lack of recognition is identified as a major source of dissatisfaction in France.

3. France’s Unfavorable Position in Europe

European surveys (Eurofound, EU-OSHA) and national analyses (DARES, IFOP) paint a critical portrait of French managerial practices, placing them in an overall mediocre position compared to its neighbors.

CharacteristicKey Data and Findings
Vertical ManagementManagerial practices are perceived as very hierarchical, with a high distance between levels. France ranks among the countries where the perceived hierarchical distance is the strongest.
Low AutonomyThe proportion of organizations combining low autonomy and low worker participation is 34.4% in France, compared to 29.5% on average in the EU-27.
Trust Deficit25.6% of French workers express low trust in their management, double the proportion observed in Germany, Ireland or Sweden (about 12.8%). Trust erodes sharply with hierarchical distance.
Insufficient RecognitionOnly 56% of French employees feel their work is recognized at its true value, compared to 72% in the United Kingdom and 75% in Germany.
Too Academic TrainingThe manager training system is criticized for its theoretical nature, its excessive valuing of the diploma and its lack of orientation toward cooperation and human skills, although progress is noted with the development of apprenticeship.

4. The French Paradox: A Comprehensive Public Arsenal for Mediocre Results

The report highlights a major contradiction: while France has one of the densest public toolkits for influencing management, its results are among the weakest.

The Preeminence of Regulation in France

France favors law and regulation to guide company practices. Two cross-cutting tools exist:

  • The right of direct expression for employees (since 1982): Allows employees to express themselves on the content and organization of their work. However, it is very rarely implemented in practice.
  • The obligation to negotiate on Quality of Life and Working Conditions (QVCT): Aims to refocus social dialogue on the real content of work, but its implementation remains limited.

Targeted Approaches and Social Dialogue in Other Countries

The comparison countries adopt different strategies, less focused on generalist regulation and more on social dialogue.

  • Targeted Regulations:
    • Sweden: The “AFS 2015:4 provision” requires companies to adopt systemic management to prevent psychosocial risks.
    • Italy and Ireland: The law promotes individual flexible work arrangements (“agile” work, the right to request remote work).
    • Germany: Social dialogue incorporates the regulation of artificial intelligence and remote work.
  • Key Role of Social Dialogue:
    • Germany and Sweden: Co-determination (employee participation in supervisory boards and decisions on work organization via Betriebsräte) deeply shapes management.
    • Italy: Social dialogue is very structured at the sector level.
    • Ireland: A high degree of informal closeness between managers and employees compensates for weak formal staff representation.

In France, the impact of social dialogue on actual managerial practices remains more limited.

5. Recommendations of the IGAS Mission

The report concludes that a favorable context exists for public action and formulates a series of recommendations to durably improve managerial practices in France.

Measures Aimed at the Work Environment

  1. Promote managerial policy: Organize an annual meeting of labor stakeholders to extend the debates of the Assises du travail, potentially leading to a new National Interprofessional Agreement (ANI) on the subject.
  2. Support innovation: Launch a national program modeled on the German “Future of Work,” funded by the ESF+, to support SMEs in transforming their management.
  3. Evolve the education system: Integrate innovative visions of management (social dialogue, professional dialogue) into initial and continuing manager training and strengthen apprenticeship as a training pathway.
  4. Strengthen support for managers: Extend APEC’s missions to include advice on managerial practices and develop support systems for new managers.
  5. Improve management in the public sector: Clarify the managerial policy of each administration, support professional dialogue initiatives and develop training for public managers.

The mission suggests initiating a reflection to modify one or more existing legal provisions, in order to strengthen worker participation. These non-cumulative avenues could include:

  • Including managerial practices among the topics of mandatory QVCT negotiation.
  • Including managerial practices among the strategic orientations submitted for consultation to the Social and Economic Committee (CSE).
  • Transforming the right of direct expression into a genuine right to professional dialogue.
  • Extending the powers of the CSE regarding work organization, drawing inspiration from the German model.
  • Reassessing employee representation on boards of directors and supervisory boards.
  • Experimenting with mechanisms for better work/family life reconciliation.