Employee Engagement and the New Deal

Whether or not this is indeed a watershed moment ascoffee klatches. Create opportunities for management
the 2010 Global Workforce Study (GWS) by Towersto provide vision, assuage concerns, invite engagement,
Watson posits, clearly Employee Engagement is ofand address the employee-employer relationship.
paramount importance to the success of yourCommunicate via newsletters or memos to let
business.employees know about business goals, company
Top companies recognize that employee engagementperformance and plans, and industry activity,
is a key force behind success. Employee engagementopportunities.
impacts every aspect of how satisfied the customersEmployee Performance Feedback:
are, how smoothly suppliers are involved into theGallup surveyed over 1,000 US employees and reports
production of the company's good or service, howthat the best way to drive employee engagement is
efficiently tactical plans are carried out, howfor managers to address employee performance.
consciously quality and improvement are integratedFocusing on the positive performance provides the
into the company's practices, and bottom-line: howhighest boost to engagement, however providing
profitably a company performs. Think of employeeevaluation of negative performance is better than no
engagement as the equivalent of customer loyalty.discussion of performance at all. The Gallup survey
The Great Recession has introduced or exacerbatedshowed that of those employees who felt that their
various workplace ills that erode the employeereview focused on strengths, 61% were engaged, of
engagement. According to Gallup, the ration ofthose who felt the focus was on weaknesses, 45%
engaged employees to actively disengagedwere engaged, and those who felt ignored showed
employees is 2 to 1; with a cost of $300 billion in lostonly 2% as engaged.
productivity. A Watson Wyatt survey in May showedPerformance evaluation should: clearly articulate job
that engagement levels for top performers fell close torequirements and metrics; analyze performance and
25 percent year over year. Employees overalldetermine the type of management guidance and
experienced a 9 percent drop in engagement yeardevelopment needed for improvement; and provide
over year.direction to the employee.
The GWS results show some disturbing results. OnlyRewards and Recognition Programs:
47% of employees see senior leadership asFinancial remuneration is of course the reason most
trustworthy, only 41% believe that senior managementpeople go to work, but it is by no means the only
encourages talent development, and only 38% believemotivator. Work provides us with an opportunity to
that management cares about their well-being. Anothermeet our psychological, emotional, social, creative and
key finding is that security and stability are of higherpersonal achievement needs. And most of us want to
importance than compensation, career growth, or otherbe recognized for our work, our ideas and
factors. Despite this air of discontent and very lowcontributions, our loyalty and motivation. Rewarding
confidence in senior leaders, only 9% of employeesemployees by letting them know that their work is
report actively looking for another job. The cost ofvalued is important at all levels of the company -
recruiting and training new staff is enormous; howeversaying "thank you" to people is a very powerful tool.
the cost of retaining unengaged employees is also highEncourage a culture of going the extra mile in
especially during a recession.customer service or quality/process improvement, by
What is engagement?recognizing it when it happens. Provide tangible
It is the motivation, commitment and loyalty of therewards such as flexible hours and locations for
people working at a common mission. The staff's levelvalued employees. Studies show that flexible
of satisfaction, pride and personal responsibility isworkplaces attract, retain and develop talented
directly related to how engaged they are inemployees.
accomplishing the organizational goals.Career Development & Mentoring:
Are your employees engaged?Everyone wants to feel that their efforts are
The first step to engaging your employees is torecognized and their contribution is valuable. Training
recognize the various factors that negatively affectopportunities can both hone current staff's skills as well
them. Contributing factors include customer losses,as communicate that the company believes in them
revenue strains, squeezed profitability, layoffs,and cares about their career well-being. Focus should
employee turnover, understaffing and overworking -be on providing training and development in areas
pretty common issues confronting business in thewhere both employees and employers can benefit.
current climate. But also, look at inefficient systems andMentoring is also a win-win solution for strengthening
processes, bureaucracy or lack of compelling internalfocus and building trust and communication. Participate
communication, policy or practice inflexibility. Arein a career track for existing employees. This will allow
compensation, benefits, rewards and employmentfor succession planning and help employees visualize
environment conducive to motivating the talent intheir futures in the organization.
place? Does the senior leadership effectivelyWhat about the costs of engagement efforts?
communicate a confident vision for the company andThe costs and benefits will be unique to each
the employees? Are they seen as valuing currentcompany. Surveys conclude that the organizations
staff and nurturing career development opportunities?with high employee engagement see clear positive
Do they portray integrity, dedication, and teamwork?effects on their business performance. Various studies
Solicit Input and Track Results:also show that companies with greater employee
But don't just assume what factors motivate orengagement see increases in operating income and
disengage: ask your employees. How they feel aboutearnings per share, greater sales growth, increased
the organization? Create opportunities for dialogue andcustomer loyalty and satisfaction, large increases in
feedback. A suggestion box, focus groups, periodicemployee discretionary effort, an ability to draw from
employee surveys are be useful tools for measuringa bigger pool of talent, greater alignment with
engagement.  Engagement drivers and levels shouldorganizational strategy, an improved bottom line, and
be tracked over time.greater sustainability in the face of business challenge.
Show Leadership & Communicate:Contrast these benefits with the costs of
Senior management needs to lead. The corporatedisengagement: low morale, dysfunctional teamwork,
vision and strategy must be instilled throughout thehigh absenteeism, lack of commitment, high turnover,
company. Hold company meetings, whether in a townincreased recruitment and training efforts, etc.
hall type approach; engage in focus groups or a