WHY EMPLOYEE ENGAGEMENT MATTERS MORE THAN EVER

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1 October 2, 2012 By Matt Daly VP, Client Solutions 471 JPL Wick Drive Harrisburg, PA Strategic, Creative Marketing, Training and Communications

2 Matt Daly, VP, Client Solutions, JPL Your employees may be happy at work. But are they engaged? Answer carefully your bottom line depends on it. A strong internal communications programs can help facilitate employee engagement, a term which indicates employees emotional attachment to their jobs, colleagues and organizations. This greatly influences employees willingness to learn and perform on the job. According to Gallup, a global research and consulting firm, engaged employees : ENGAGED EMPLOYEES: Work harder Create more innovations Have lower absentee rates Require less supervision Improve customer satisfaction Generate more revenue DISENGAGED EMPLOYEES: Lower company productivity Increase turnover Discourage colleagues Create lower-quality work Diminished loyalty and widespread apathy can undermine business performance. EMPLOYEE ENGAGEMENT IS ON THE LINE Unfortunately, a growing number of employees are disengaged. Mercer s 2010 study of 2,400 U.S. workers revealed declining commitment levels, company pride and feelings of personal accomplishment. 2 The business consequences of this erosion in employee sentiment are significant, said Mindy Fox, a senior partner at Mercer. Clearly the issue goes far beyond retention. Diminished loyalty and widespread apathy can undermine business performance, particularly as companies increasingly look to their workforces to drive productivity gains and spur innovation. 1

3 IMPROVING EMPLOYEE ENGAGEMENT Declining employee engagement is a growing problem. But improving engagement can yield large returns. According to one British study, organizations with high engagement increased their annual net income by 13.7 percent. 3 Companies surveyed by the International Association of Business Communicators used employee engagement programs to improve work environment, increase productivity, retain top talent and increase morale. Through these programs, they also transferred knowledge to younger employees. 4 Declining employee engagement is a growing problem. But improving engagement can yield large returns. Studies show that the best results come from an internal communications program that includes meetings and events. These statistics make a strong business case for investing in employee engagement programs. But developing those programs can seem daunting. According to Gallup, it requires a year-round focus on changing behaviors, processes, and systems to anticipate and respond to your organization s needs. From the leadership team to the frontline employees, all levels within an organization must commit to making these changes. EFFECTIVE EMPLOYEE ENGAGEMENT STRATEGIES Studies show that the best results come from an internal communications program that includes meetings and events. Global pharmaceutical company Eli Lilly used a comprehensive program to educate employees on the company s new vision. Its online jam session allowed employees to share ideas and make connections. Through it, the company gathered more than 30,000 employee ideas about making the new vision a reality. 5 North American energy company TransCanada used town hall -style events to engage employees after company acquisitions. Staff received access to a streaming video webcast that reinforced messages about company unity. As a result, engagement improved across all demographics. 6 I feel our senior leaders are credible, capable and trustworthy 49% 49% 62% 37% I feel my contributions to the company s sucess are valued 23% 38% 64% 58% I feel we are one company across North America 17% 30% 55% 57% I am excited about TransCanada s future. I am confident about TransCanada s future. 47% 52% 49% 45% I am proud to be a TransCanada employee 53% 64% 43% 34% Strongly Agree Agree 2

4 Creating an internal communications program to increase employee engagement requires time, money and extensive planning. But the improvements in morale, retention and company revenue often far outweigh the cost. Thanks to social media and new technology, these programs can also yield valuable feedback about business practices, objectives and opportunities for growth. Creating an internal communications program to increase employee engagement requires time, money and extensive planning. But the improvements in morale, retention and company revenue often far outweigh the cost. HOW JPL CAN HELP An integrated communications firm, JPL helps clients build strategic internal communications programs that facilitate engagement and drive employee performance. Our approach blends the frequency and reach of a sustained communications program with in-person meetings and events. We tailor these programs around existing company culture and learning styles. By reinforcing the messaging across time and multiple channels, we help clients build engagement and sustain behavioral change throughout the entire year. Bibliography: (1) Employee Engagement. Gallup Consulting, (2) What s Working Survey. Mercer, (3) Engaging for Success: Enhancing Performance Through Employee Engagement. David MacLeod and Nita Clarke, (4) IABC Employee Engagement Report. IABC, (5) Jamming Our Way into the Future. IABC, (6) TransCanada Connects. IABC,

5 A JPL White Paper Published by: To learn more, contact: Matt Daly Vice President, Client Solutions 471 JPL Wick Drive Harrisburg, PA ABOUT JPL JPL works with regional, national and global brands, offering a holistic approach to marketing and communications. Headquartered in Harrisburg, Pennsylvania and founded in 1989, JPL is focused on helping clients grow their business though careful planning, meaningful execution and an ongoing focus on clients success JPL Integrated Communications, Inc. All rights reserved. 4