Mark Craemer 4 Comments

Is employee engagement really important or is it just nice to have and something to think about once economic times improve?

The fact is companies with a high percentage of engaged employees are more profitable than those with fewer engaged workers. High engagement can improve employee retention and raise customer perceptions that directly lead to better financial performance.

Overall, most companies have about one-third of their employees fully engaged in their work. Yet recent surveys suggest that as many as four out of five workers would leave their current job if they could, but most think they would have trouble finding another one right now.

Engaged employees are those who are involved in and enthusiastic about their work. Those who are not engaged are satisfied but are not emotionally connected to their workplace and are less likely to put in extra effort. Those who are actively disengaged are emotionally disconnected from the work and workplace and jeopardize the performance of their teams. Their physical health may also be at risk.

A recent Gallup survey found that in the average big company only 33% of employees describe themselves as fully engaged in their work, 49% say they are not engaged and 18% say they are actively disengaged.

Gallup’s research found there is a strong relationship between engagement and high-performance outcomes which include customer loyalty, profitability, productivity, turnover, safety incidents, shrinkage, absenteeism, patient safety incidents, and quality (defects). They also learned that organizations with a high percentage of engaged employees have nearly four times the earnings per share growth rate compared to organizations in the same industry with lower enagement.

In what Gallup calls world-class organizations, the ratio of engaged workers to actively disengaged workers is about 10:1. Whereas in average organizations, the ratio of engaged workers to actively disengaged workers is about 2:1.

All too often, employee engagement is viewed as an HR initiative to improve morale among employees when things aren’t going so well. These intiatives do little to raise the level of employee engagement, and sometimes they even undermine it. That’s because employee engagement is distinctively different from employee satisfaction, motivation and organizational culture.

In the best companies employee engagement is a strategic approach for driving improvement that is directly linked to achieving corporate goals and organizational change. It can lead to employees who are more emotionally attached, involved and fully commited to their organizations. And it can profoundly increase productivity.

Employee engagement should be an organization-wide effort, and so much of its execution is dependent on good managers. As I wrote about in a previous post, employees join an organization based on the reputation of the company or the quality of its products or service. But they most often leave because of their manager.

In a down economy when hiring is stagnant and organizations are trying to get the most out of the people they already have, managers can engage employees in many ways. This includes clarifying expectations, providing adequate resources, giving recognition, encouraging their professional development, helping them connect to the organization’s purpose, and measuring and discussing progress more often than once each year.

Managers who do these as part of an overall employee engagement strategy are more likely to produce high-quality work and retain employees.

At a time with high unemployment, stagnant wages and workers staying in their jobs only because they fear they cannot find something better, it is the perfect time to execute an employee engagement strategy to energize your people.

In most organizations employees are the biggest expense and, far and away, the greatest asset. Now is the time to invest in a strategy that will raise the number of fully engaged employees and increase your profitability. You’ll be glad you did both now and when the economy improves.

— 4 Comments —

  1. Just wanted to reply and say nice website, great to read from people who know this area. I have my own poker blog nothing special.

  2. Great summary on employee engagement. I would add that it is not just managers doing the ‘nice’ things such as clarifying expectations and giving recognition, it’s about structuring work so that the engaging activities are part of the work process not an afterthought.

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