An Overview of Employee Engagement

Transcription

1 An Overview of Employee Engagement Many organisations want to improve their employee engagement levels. Why is this so important, and what impact does an organisation s ability to engage its employees have on its bottom line? More importantly, what are the factors which drive employee engagement and how can organisations make the most of them? This article highlights key research on the subject, and provides an overview of the organisational factors which have the most impact upon employee engagement. What is engagement? Employee engagement is more than simply job satisfaction, feeling happy or showing willingness to help colleagues and customers. It is not something which can be enshrined in a contract of employment, yet it is something which employers have in their grasp to influence and nurture. Although no single, agreed definition of employee engagement has emerged from the significant body of research on the subject, it can be thought of as: 'A positive attitude held by an employee towards their organisation and its values. An engaged employee is aware of the business context, and works with colleagues to improve performance within the job for the benefit of their organisation. [1] It should come as no surprise that employee engagement is more than just a passing fad. Employers want engaged employees because they can deliver clear business benefits. Engaged employees are more likely to: believe in their organisation and its values have a desire to give their best and go the extra mile (delivering discretionary efforts) demonstrate higher levels of innovation, creativity and customer service have lower levels of sickness absence and absenteeism understand the business context in which they work and see the bigger picture have respect for and willingness to help their colleagues Although employee engagement describes how people behave in the workplace, it is ultimately about improving performance, because the above benefits have a clear impact upon an organisation s bottom line. Engagement is the difference between people who come to work and simply get the job done and those who

2 strive to give their best possible performance. How can organisations build an engaged workforce? Much research has been conducted into understanding and harnessing the organisational factors which drive employee engagement. It is clear that there is no quick-fix solution to developing an engaged workforce. Organisations need to adopt a long-term, strategic approach. In 2008, the UK Government s Department for Business Innovation and Skills (BIS) commissioned an in-depth review of UK employee engagement practices. Known as the MacLeod Review, the report identified four key enablers of employee engagement: [2] 1. A strategic narrative for engagement. An organisation s senior leadership must be able to provide a genuine, credible story for their business that explains to employees in clear terms what the organisation s purpose is, and how individual employees can contribute to its overall vision. This helps to foster widespread ownership of, and commitment towards, employee engagement from managers and employees alike. 2. Engaging managers. Positive line manager behaviour is the key to an engaged workforce. They motivate, challenge and support employees rather than controlling and restricting them. They treat employees with respect and appreciation and are able to show genuine commitment to developing, increasing and rewarding the capabilities of those they manage. 3. Employee voice. An effective employee voice is where employee views are actively sought out. Employees feel they can speak out, that their opinions count and most importantly, that the organisation will listen to them. 4. Widespread integrity. Leadership and senior management behaviour is consistent with the organisation s stated values, leading to greater trust and a sense of integrity. Whose job is it to manage employee engagement? The success of an organisation s employee engagement efforts depends upon the involvement of key stakeholders, including its senior leadership, front-line managers, the HR department and employees themselves. The role of senior leadership Without the support and buy-in of an organisation s senior leadership, employee engagement efforts are likely to fail. For engagement to succeed, top management needs to create the right culture within which it can flourish. The CIPD suggests that what is needed is a shift towards engaging leadership'. Engaging leaders are truly authentic, and can demonstrate a range of positive behaviours including: [3] HR s role being accessible showing genuine concern for their employees building a shared vision of the future having personal qualities and values of integrity, honesty and consistency The HR function also has an important role to play in supporting an organisation s

3 engagement efforts, but should not be solely responsible for it. According to the MacLeod Review, HR should not have singular responsibility for driving employee engagement, but should instead work in partnership with key areas of the business to ensure success. [4] In particular, HR can help to implement engagement initiatives by: helping senior management develop a clear business case for employee engagement designing and carrying out employee surveys testing the findings of employee surveys through focus groups advising senior managers on relevant employee engagement initiatives helping line managers to improve their engagement capabilities developing an effective employer brand The role of line managers Line managers are at the heart of successful employee engagement, and their influence upon how employees feel about their work is profound. It is often remarked that people join organisations but leave individual managers. Research commissioned by the CIPD shows that certain line manager competencies have a demonstrable positive impact on whether employees will go the extra mile for their organisation. [5] The research identified a framework of 11 line manager competencies, of which the five most important activities were: Reviewing and guiding their employees in their work, offering help and advice freely to employees and responding effectively to employee requests for guidance. Providing feedback in a positive and constructive way, praising and thanking employees for their individual efforts and showing understanding when giving feedback on areas which have not gone well. Giving their employees an appropriate level of autonomy which strikes the right balance between giving guidance and responsibility, welcoming ideas and feedback from employees and involving them in solving problems and making decisions which affect them. Showing a genuine interest in and consideration for employees personal lives outside the workplace, and taking an interest in employees personal job satisfaction and career achievements. Being available for employees when needed, and making time to help and support their team rather than focusing solely on furthering their own personal agenda. Right focus, right results Many organisations can be concerned about investing in costly employee engagement initiatives. However, engagement plans don t need to be on a grand scale in order to produce results. The following examples illustrate a variety of successful employee engagement plans. B&Q

4 In 2005, DIY retailer B&Q was losing market share, sales were falling and customer satisfaction had shrunk to 65%. B&Q has since experienced a dramatic recovery thanks to a shift in attitude. Employee engagement has gone from being a nice to have measure to a critical driver of business performance. The Gallup Q12 engagement index showed a clear link between employee engagement and business performance. [6] As a retail organisation, customer service is critical to improved performance. Without employees who are engaged and committed, B&Q s business could not grow. Q12 surveys are run bi-annually, and the results identify areas of weakness and best practice, as well as issues for action. Dedicated support is also provided by HR including: [7] overall accountability for employee engagement, and helping managers to improve their Q12 scores becoming employee engagement experts with ongoing training and coaching from Gallup so that HR can help managers interpret their results, identify problems and develop action plans linking employee engagement to performance, so that individual managers are promoted on the basis of their engagement scores, and can ultimately be removed from a management position if their Q12 scores are consistently low Essex County Council

5 In 2010, Essex County Council (ECC) set its sights on creating a strong employee voice with its You Said, We Did communications campaign. Like many UK local authorities, ECC faced the challenge of delivering high quality services on reduced budgets. Based on the outcomes of the Your Voice employee survey, this campaign showcased examples of how employee feedback was being put into practice, including: [8] the introduction of speed networking events to increase networking opportunities with existing and new colleagues simplification of the secondments process to create more career development opportunities development of an online change toolkit to support employees through the process of change more effectively Getting it wrong

6 While more enlightened organisations are building employee engagement into their business plans, others merely pay it lip-service, which can lead to an increasingly cynical and disengaged workforce. This comes at a price. Gallup estimates that actively disengaged workers cost the British economy between 37.2 billion and 38.9 billion a year due to poor staff retention, high absenteeism and poor productivity. [9] Disengaged employees can also affect their engaged colleagues as well. Curt Coffman, Global Practice Leader for Gallup s Q12 employee engagement survey tool, describes disengaged employees as: "The cave dwellers who are Consistently Against Virtually Everything. We've all worked with an actively disengaged employee who is not just unhappy at work; they act out that unhappiness. Every day, actively disengaged employees tear down what their engaged colleagues are striving to build." [10] Conclusion Increased employee engagement is fast becoming a vital part of any organisation s strategy. However, initiatives will work only if they involve buy-in and input at all levels, from the senior leadership team, to HR practitioners as well as front-line managers. But the rewards are there for the taking if organisations are prepared to put in the effort - happier, valued employees who will go the extra mile when required and help their organisations achieve greater profitability and success. [1] Robinson D, Perryman S, Hayday S, The Drivers of Employee Engagement, Report 408, Institute for Employment Studies, [2] David MacLeod and Nita Clarke, Engaging for Success: Enhancing Performance Through Employee Engagement, (The Macleod Review) // (2009). [3] The Chartered Institute of Personnel and Development. Engaging Leadership:

7 Creating Organisations That Maximise the Potential of their People. (London: CIPD, 2008) [4] David MacLeod and Nita Clarke, Engaging for Success: Enhancing Performance Through Employee Engagement, (The Macleod Review) // (2009). [5] The Chartered Institute of Personnel and Development, Research Insight, Management Competencies for Enhancing Employee Engagement, (March 2011). [6] Gallup Q12 is a survey methodology designed to measure employee engagement. The survey comprises 12 questions, the responses to which are used to categorise employees into one of three types; engaged, not engaged and actively disengaged. [7] This example is based on an interview with Emma Bonfield, Employee Engagement Advisor at B&Q (October 2007). [8] This example is based on an interview with Lisa Sibley, Employee Engagement Manager at Essex County Council (March 2010). [9] Peter Flade, Great Britain s Workforce Lacks Inspiration, Gallup Management Journal (11 December, 2003). [10] The High Cost of Disengaged Employees, An Interview with Curt Coffman, Gallup Management Journal, Available at: //gmj.gallup.com/content/247/high-costdisengaged-employees.aspx (15 April 2002). B&Q image credit: Betty Longbottom [CC-BY-SA-2.0 ( via Wikimedia Commons (accessed 26 November 2013). Essex County Council image credit: Essex County Council (accessed 26 November 2013). Scrabble image credit: Flickr user Jillian Corrine (accessed 4 November 2013).