Dollars and sense of employee engagement

STUDIES show a clear correlation between employee engagement and performance.

Robert Mandeya

How would you rate the employee engagement in your organisation? Affecting everything from customer ratings and quality standards to safety incidents and turnover (regardless of industry), poor employee engagement can ultimately have a big impact on your business.

High employee engagement

High levels of employee engagement can increase operating income by 19%;
59% of engaged employees say that their job brings out their most creative ideas.

Organisations such as Google, Toyota and Standard Chartered are often quoted as companies that invest heavily in their employees. A two-way adult relationship between leaders, managers and employees lies at the foundation of how these operations function. However, it’s more of a mindset than a checklist; the companies with the highest engagement consider their employees as resources they can invest in — not exploit. They want to provide their employees with opportunities, and create an attractive work environment. John Lewis does it by offering shares in the company to their employees through the John Lewis Partnership.

Toyota chairman Alan Jones is quoted saying “… Your job as a manager is to make your people be the best they can be — and usually they don’t know just how good they could be. It’s individuals that make the difference.”

Low employee engagement

Leads to 31-51% higher employee turnover;
Doubles the likelihood for inventory shrinkage (theft);
First off, the bad news: 70% of US workers aren’t engaged at work;
Highly engaged employees are 87% less likely to leave their company compared to less-engaged employees;
89% of employers think their people leave for more money but in actual fact, only 12% of employees leave companies for money elsewhere;
43% of highly engaged employees receive feedback at least once a week, compared to only 18% of employees with low engagement;
A study of 64 organisations revealed that organisations with highly-engaged employees achieve twice the annual net income of organisations whose employees lag behind on engagement.

Myths debunked
It’s not all about the cash;
Recognition programmes offer return on investment;
High performers need extra motivation;
Managers require training and practice to be effective;
Millennials are not difficult to engage;
71% of all employees are not fully engaged;
US$11 billion is lost each year due to employee turnover;
To increase engagement, create healthy relationships with your employees.

Disengaged to brand ambassadors
For many of today’s leading companies, the employees have a big role in delivering on the brand promises and companies need properly designed and executed employee recognition programmes that can encourage and reward the behaviours that reinforce the brand’s meaning.

Effective internal communications and support for recognition starts with the organisation’s top executives as management praise and leadership opportunities can be more effective than financial incentives.
“Engaged employees who successfully represent the company brand provide a competitive advantage and impact the bottom line — a crucial benefit in today’s competitive global business environment,” said Mike Ryan of Madison Performance Group.

Motivated employees are more productive and creative and recognition programmes help keep them engaged and positive about their professional contributions to the organisations.

Worldwide employer branding
In an era of social media dominance where employer branding continues to develop around the world, HR and marketing departments are now being challenged by executives for control of the employer brand strategy. This global research study surveyed more than 1 700 organisations worldwide.

Key findings of the research

84% of companies believe a clearly defined strategy is the key to achieving employer branding objectives;
71% of employees say obtaining an adequate budget is their number one challenge in managing an employer brand;
59% of companies leverage their career website for communicating the employer brand.

Robert Mandeya is a senior executive training consultant and communication in management advisor, a personal coach in leadership and professional development with the Institute of Leadership Research and Development. You can contact him on mandeyarobert@yahoo.com, mandeyarobert@gmail.com.

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