Getting Engaged - What is Employee Engagement and Why Does it Matter?

Transcription

1 Getting Engaged - What is Employee Engagement and Why Does it Matter? Employee engagement is critical for the success of any business. It is about having a workforce who wants to be there, who like what they do, are loyal to the organisation and take ownership and pride in their jobs. Aligning employees values, goals and hopes with those of the organisation is the best way to achieve the sustainable levels of employee engagement needed for an organisation to thrive. An organisation or team that has a highly engaged group of people in it stands out, for all the right reasons, to the customer or end user. There is an energy and vibrancy about an engaged workforce. This energy centres around positivity, innovation, excellence and a can do attitude. Employees feel part of the organisation that they work for, with a heightened emotional connection to the vision and goals of the company. This in turn ensures that the person commits extra effort to the job they do and is therefore prepared to go that extra mile to get things done in their role. Ultimately, each individual s level of engagement is a reflection of their own unique relationship with work, but clever managers are those who listen to their people and really understand the areas that matter most too each individual in the team. Employee engagement has to be more than a strategic driver of a business, it needs to part of how managers and executives act and conduct themselves every day. Research by Blessingwhite (2011) showed that organisations that implement engagement initiatives struggle to make them meaningful in terms of real results. Instead, organisations that measure less while acting more are the ones that really reap the rewards of a highly engaged workforce. There are several definitions of engagement, but they usually include three common factors: (CIPD, 2006) 1. Emotional engagement being very involved emotionally with work. 2. Cognitive engagement focusing very hard while at work. 3. Physical engagement being willing to use extra effort to get the job done. Therefore, engagement is about capturing the hearts and minds of those in an organisation. It is the interaction between these 3 elements that leads to the sense of pride, ownership and belonging that highly engaged employees demonstrate. Committed employees give of themselves, their skills and their energy while having a sense of pride and ownership in what they do. Clever organisations are those that select people who fit their culture, train their managers to build on people s natural strengths as research by Seligman and Peterson demonstrated the impact on positive attitude and productivity of managers focusing on what people do well at work and showing gratitude for a job well done. The facts about Engagement Highly engaged firms showed returns for shareholders that were 19% higher than average in In organisations where levels of engagement were low, total shareholder returns were 44% below average. An analysis of the Best Companies to Work for in America showed that high levels of engagement leads to superior returns for the organisation in the long term (Wharton Business School). Research by McKinsey showed that successful organisations were those that had above average levels of leadership and high levels of employee engagement. Research by BlessingWhite (2011) of 10,914 workers worldwide showed that India had the highest levels of engaged workers (37%), China the least (17%), with Europe in the middle (30%).

2 o This research also showed that those higher up the organisation had higher levels of engagement. o Engagement levels were higher among older workers o Departments closest to the customer are more likely to have the highest levels of engagement o Almost 30% of respondents whose managers talked to them about how engaged they were, without being forced to do this through a company engagement policy, showed high levels of engagement. Engagement is a combination of how people think, feel and act at work. As these statistics show, there is a lot of evidence available in both the private and public sectors that demonstrates how employee engagement can improve overall business performance. MacLeod and Clarke (2009) states that outcomes include lower accident rates, higher productivity, fewer conflicts, more innovation, lower numbers leaving and reduced sickness rates. IBEC s Survey of HR Practices (2011) showed that 38% of companies measured engagement in the last 2 years, with 37% having a strategy in this area. Only 10% were dissatisfied with the level of engagement in the organisation, 66% were satisfied and 23% were very satisfied. Therefore, the high proportion of companies measuring this activity signifies the importance attributed to this activity in the workplace. Organisations recognise that particularly in a recession, the need for energetic, enthusiastic, motivated and creative employees is great. This only happens when levels of engagement are high in an organisation or team. Focus on the Strengths of Your People Over the past ten years, Gallup have surveyed (Strengths Finder, Tom Rath) more than 10 million people worldwide about the area of employee engagement. Only one third strongly agreed that at work they have the opportunity to do what they do best every day. In a poll of 1000 people, of those who disagreed or strongly disagreed with this statement, none were emotionally engaged with the jobs they do. Research by Tom Rath (Strengths Finder 2.0), showed that people who have the chance to focus on their strengths at work are 6 times more likely to be engaged in their jobs and 3 times more likely to have an excellent quality of life than those who don t have the chance to focus on what they do well at work. So, it seems that focusing on what we do well is a critical part of the engagement equation. What is also critically important, as illustrated by this research, is the role of line manager in how people feel about the organisations they work for. The research focused on examining the impact of 3 different styles of management on those in a team. These styles included having a manager who: 1. Focuses on the weaknesses of his/her team 2. Ignores the individual 3. Focuses on the strengths of the person. The results showed startling results which are outlined below: If your manager mainly: The chances that you will be actively disengaged are: Ignores you 40% Focuses on weaknesses 22% Focuses on strengths 1%

3 The stark reality indicates that a manager is better to focus on something, either positive or negative, than to ignore his/her staff. However, the real key to engagement is having a manager work with the person around what they are good at. By focusing on what someone does well, the chances of them being disengaged are minimal. Therefore lline managers are seen as of crucial importance in engagement through role modeling, shaping the ways of working and involving employees in the organisation. So this research clearly highlights the need for managers to manage effectively and to build those around them. Find people doing Right and tell them is a good mantra for managers to have as all too often, the opposite is the case. What is the role of the Individual, the Manager and the Top Team? Fortune magazine s 100 Best Companies to Work for study said that employee engagement is governed by 3 interconnecting relationships. These are: The relationship between management and employees The relationship between employees and the company The relationship between employees and other employees Therefore the role of the leader or manager is critical in terms of how engaged people feel with the organisation they are part of. For many people, the connection to the organisation is largely influenced by the direct relationship they have with their boss. Fortune s research highlighted the criticality of the relationship with the manager in terms of how people feel about the organisation they work for. However, Blessing White s research showed that in order to gain the rewards of a fully engaged workforce, individual workers, managers and senior management in the business all need to play their role. Their research showed that these roles and responsibilities include the following: Individuals Individuals need to be clear about the organisation s goals and direction. This then needs to be compared with personal goals, values, hopes and interests. Two drivers of job satisfaction stood out in 2008 and again in These were career development opportunities / training and more opportunities to do what I do best. The role of the manager is critical in creating conditions whereby people can get these needs fulfilled and ensuring the person feels positive about how they fit and what they are good at, but ultimately, it is the person his/herself who is responsible for reacting to their environment, manager and organisational culture. Engagement reflects each person s unique relationship with work. Managers The direct manager has a key role in helping each member of the team to see how they fit within the team, department and ultimately, the organisation. In order to gain commitment from those around the manager, he/she must be trusted by the team. This trust is earned by honesty, integrity, a genuine belief in each person on the team and an ability to see their strengths. Managers, who can do this, really try to get to know what makes people tick and how to enable this to happen in the workplace. Towers Watson Global Workforce Research 2009 showed that strong managerial performance in recognising employee achievements increased engagement by up to 60%. Senior Management Although senior managers may not see staff every day, the perception which staff have of them and their leadership style is very closely linked to the levels of engagement in the organisation. Trust is crucial. People need to see what the senior team stand for, what their vision is, how they deal with those around

4 them and how they listen to and engage with the workforce. Improving engagement goes beyond simply asking the right questions. Engaging employees requires a year-round focus on changing behaviours, processes, and systems to anticipate and respond to the organisation s needs. Top leaders need to lead as those around them judge their actions and results, not their words. Raising Engagement Levels Research by Towers Watson (2010) in the Global Workforce Study, showed a dramatic change in the main driver of employee engagement between 2008 and the end of In 2008, leadership was the top driver of employee engagement in this survey, with only 1/5 of those surveyed citing empowerment as a key influence. However, after one year, there was a dramatic change in this focus as the importance of self determination and autonomy doubled. The recommendations following this research include developing a greater sense of self reliance among workers, personalising the deal so that each person gets what they need from work and ensuring managers and organisations are agile and open to changes in the environment. A vital message for organisations and managers is how to tap into this finding and ensure staff are given the opportunity to have a say in the work they do and to work in a way that builds on their strengths. By doing this, the chances that there will be a rise in engagement and productivity levels are extremely high. Employees showed a clear desire for security and stability with 8 out of 10 respondents wanting to settle into a job, with half saying they would prefer to work for a single organisation throughout their career. So although few organisations can offer a great degree of this stability in the current environment, where possible, managers need to reassure people when they can. MacLeod and Clarke (2009) suggest some ways to maintain and raise engagement of people at work all of which need effective line management: Ensure leaders communicate the organisation s purpose, the longer term vision, and help individual s identify their contribution to achieving these; Train managers to empower and facilitate rather than control and restrict their staff; Really listen to the views of employees; Managers need to demonstrate integrity and trust showing that their behaviors fit the organisational values. According to research conducted by Gallup, the questions listed below are critical ones for organisations to answer positively if employee engagement is a strategic priority. Many relate to how the direct manager deals with the person, while others are around working to the person s strengths, encouraging staff to grow in the role, fairness as to how the team is managed and facilitating people to have real connections with those at work. Gallup s 12 Essentials of Effective management 1. I know what is expected of me at work. 2. I have the materials and equipment I need to do my work right. 3. At work, I have the opportunity to do what I do best every day. 4. In the last seven days, I have received recognition or praise for doing good work. 5. My supervisor, or someone at work, seems to care about me as a person. 6. There is someone at work who encourages my development. 7. At work, my opinions seem to count.

5 8. The mission or purpose of my organisation makes me feel my job is important. 9. My associates or fellow employees are committed to doing quality work. 10. I have a best friend at work. 11. In the last six months, someone at work has talked to me about my progress. 12. This last year, I have had opportunities at work to learn and grow. Gallup has observed that world-class organisations make employee engagement a priority by focusing on getting positive answers from the workforce to these questions. They summarised these into four core areas of strategy, accountability and performance, communication and development. Strategy World-class organisations develop a formula for success by looking objectively and rigorously at the business problems they face and by focusing on attracting, retaining and keeping the right people engaged as they know this is critical to their success. Accountability and Performance Clarity around the goals of the organisation and what is expected of each individual within this are central to how these organisations operate. Measuring how people are performing is central to how the business operates, so there is no ambiguity or uncertainty about expectations. Communication The goals of individual employees need to be aligned to those of the business. Leading organisations focus on keeping this link clear and ensuring employees feel heard and valued through regular communication opportunities with management. Development Top-performing companies have comprehensive leadership and management development programmes so that career paths are very clear and individual strengths are built upon.

6 Summary Employee engagement involves capturing the heart, head and hands of the person. It is critical to the success of every organisation, now and into the future. Much of the research highlights the value and pivotal role of the front line manager and senior managers in a business in building and growing high levels of engagement. It is about going that extra mile for your employer. It centres on an attitude and can do approach, that is driven from within the person him/herself. Whether or not someone is engaged, is a decision that comes from the person. Managers and organisations create the conditions which determine the extent to which this may happen. The research supports some top tips for managers to consider when trying to get their employees engaged. These include: 1. Focusing on the strengths of the person and giving feedback about what he/she does well. 2. Building the person s confidence in what they do well. 3. Developing trust among the team by being honest, fair and open with every member. 4. Senior management need to have a vision, demonstrate real leadership through their actions, communicate with those in the organisation and really listen to staff. 5. All staff need to be really clear about what is expected of them. 6. Measure how people do their jobs and give them feedback on the specifics. 7. Give people an opportunity to grow and develop in the role. 8. Show integrity in all you do. Engagement is not a once off management fad. It needs to be central to the strategy of the organisation and to be the cornerstone of how things are done around here. Clever companies are those that are Getting Engaged.

7 Bibliography Cipd (2006), How engaged are British Employees? Annual Survey Report, London: Chartered Institute of Personnel Development. MacLeod, D. and Clarke, N. (2009). Engaging for success, enhancing performance through employee engagement. London: UK Government BERR report. Seligman and Peterson, (2005). Seligman, M. E. P., Steen, T. A., Park, N., & Peterson, C. (2005). Positive psychology progress: Empirical validation of interventions. American Psychologist. Tom Rath, Strengths Finder, 2.0. Employee Engagement Report, 2011, Blessing White Research Paper, 2011