Employee Engagement – How to keep your employees “driven”

By Robert Newland

(Article published in Visión Magazine – a Publication of the Hispanic Chamber of Commerce of Metro Orlando)

The business case

According to Gallup, organizations that have optimized engagement have 2.6 times the earnings per share growth rate compared to organizations with lower engagement in their same industry.  Engaged employees are more productive employees, more customer-focused, safer, and more likely to withstand temptations to leave the organization.  However, the Gallup study reflects that only 29% of employees in the US are engaged.

In average organizations, the ratio of engaged to actively disengaged employees is 1.5 to 1, whereas in leading organizations, this ratio is nearly 8 to 1.  In the US alone, Gallup estimates the cost of disengagement to be more than $300 billion in lost productivity alone.

If I were you, I’d sitting down by now, beginning to think this might be really important for your business and wanting to read all of this!

What is “Employee Engagement”?

While no definitive consensus has been achieved, a good definition of the term "engagement" may be "an employee's involvement with, commitment to, and satisfaction with work."  I am sure that the academicians will struggle with this question for decades, but what really matters to you is whether engagement is driving your employees’ performance, or is the lack of engagement driving your customers away?

In an era of tough economic conditions, many organizations focus substantial energy looking at financial reports, expenses and budgets to look for savings in the organization, while often overlooking the human engagement factor.

What happens if you don’t engage…

You and your competition are slashing away at prices to keep customers, but the true differentiator of the “Customer Experience” is the interaction with your employees.  Many organizations and their leaders fail to see this connection, often unaware of how engaged employees “make” and disengaged employees “break” their businesses.

Some leaders can be nearsighted and easily assume that in a tough economy, employees are more likely to stay with organizations and perform at their best to retain their jobs.  This “fear of losing my job” strategy is seen by some as a performance driver, but nothing can be further from the truth. Yes, employees are more likely to stay, at least body; but not in mind and spirit.  Not exactly what you want – right?

Organizations that behave in this fashion will fail, their leaders will continue to blame “others”, and their top performers will flee to other institutions when opportunity knocks on the door.  This is one of the greatest threats to organizations – the talent drain.

It can happen any time, but it is most likely to happen when the economy starts to improve.  If not resolved well in advance, organizations will be faced with the unexpected departure of key personnel, leaving them unprepared to tap into the benefits of the economic upswing that will eventually arrive.

Engagement Components

There are certain key elements to employee engagement. Here are some you should consider:

It begins with the adequate culture.  Organizations that embrace open communication, value employees, focus on solutions and foster a positive environment are more likely to advance employee engagement.

Another key element is leadership style. When your leadership team presents a clear and consistent message that is aligned with the correct organization culture, you start a powerful combination. You also need to develop a leadership style that promotes contributions from all employees, one that inspires and motives.

Defining good metrics is another important part of an employee engagement plan. Some of the components can include employee satisfaction surveys, productivity metrics, retention metrics and financial performance.  Be careful not to over measure and remember that if you just started your plan, do not expect dramatic results in three weeks!

Engagement Strategies

You are probably thinking “and know this guys is going to tell me I have to do a million things to get this right”.  Wrong!

I do think you need to do a few things right away, understanding that this is just one of many critical elements you manage in a business.  Here’s my recipe:

1. Make employee engagement a critical business issue. Let employees know that you will address this because you value them and that this is important to the organization.
2. Make this discussion a regular agenda item of manager meetings and employee meetings. Hold managers accountable for engagement initiatives and ask employees what makes them feel more engaged.
3. Conduct a professionally constructed survey for your management and employees to determine their engagement level.  Measure again in three and six months, and at least yearly thereafter.
4. Identify your top performers, historic rainmakers and key staff. Offer special programs to advance their skillset like executive coaching and other activities that make them feel valued.
5. Develop your skills and that of your management team to become better and mastering the art of leading.

This is a good start, only if you get MOVING!  So get with the program – get “engaged” in employee engagement. It will make a big impact in how you navigate this tough economic cycle and the opportunities you will capture in the future.

For more articles and news, click here.