Improving employee engagement
Organisations with high engagement levels experience positive returns on talent outcomes, customer satisfaction, and the bottom line. The Corporate Leadership Council identified for example that companies with a highly engaged workforce derive the following benefits:
• Employees work 57% harder and are 9 times less likely to leave
• Average three-year revenue growth of 20.1% as compared to industry average of 8.9%
• Higher stock price over a period of 3 years as compared to a sample of 500 leading companies in a variety of industries
• Three times higher EBITA growth as compared to industry average
Despite all these benefits, a recent analysis by Hewitt Associates, a global human resources consulting and outsourcing company, shows that employee engagement and morale in the workplace are declining. Hewitt’s research shows that 46 percent of organizations experienced a decline in engagement levels in the quarter ending June 2010, while just 30 percent saw an improvement. These trends are confirmed by other research studies.
In this edition of the LeMaSa Chronicle we reflect on what organizations can do to improve employee engagement and also provide you with more background on Consciousness Coaching.
Enjoy the start of Summer and the rush to finish everything before the December holidays!
“Engagement doesn't actually mean anything on its own without understanding the constituent parts. Which is, I think, why a lot of organisations still struggle with the concept. Engagement is actually simply a small bucket within the bigger bucket of human capital. And just as each organisation needs to decide what human capital it needs, it needs to define engagement for itself “(Jon Ingham, 2009).
Engagement is a psychological state that employees can be in when performing their work. In engagement, people employ and express themselves physically, cognitively, and emotionally during work performance. Engagement is influenced by organisational and personal drivers.
In the Talent Management Magazine Industry News (4 August 2010) the following key factors as uncovered by Hewitt were listed. According to Hewitt, companies with improved engagement levels:
• Focus on the long term and made workforce changes consistent with their principles and values and without losing sight of their overall goals;
• Obtain buy-in from leadership: Engagement is a top priority for leaders at companies that saw improved engagement scores. Leaders at these organizations were visible and provided ongoing updates to reduce employee uncertainty and stress. They also created excitement among employees about the future of the organization;
• Implement measurable actions: Successful organizations use employee information as a call to action rather than an assessment;
• Involve all stakeholders: Organizations with improved engagement understand that creating a "high engagement" environment requires the involvement of multiple stakeholders. They communicate to these stakeholders to ensure everyone is clear on their role in the process and on the employment value proposition;
• Understand key employee segments: Successful organizations understand that not all employees are necessarily equal. They focus on key segments and critical talent so that they’re able to engage or re-engage them once the job market improves;
• Usze a broader array of information and analytics: Almost three-qu arters conduct exit surveys to understand why employees are leaving and proactively identify potential hot spots.
Companies that are successful at improving engagement in spite of all the economic pressures are the ones that create an environment focused on key human capital elements. (http://talentmgt.com/industry_news/2010/August/5245/index.php)