Employee Engagement and your EAP

Employee Engagement and your EAP

Engagement In the current financial climate many companies are placing even greater importance on the need to maintain and increase financial performance in order to survive. Engagement is viewed by many as vital in achieving this. What is Engagement? Engagement is often confused with commitment, but it is more than just commitment. In their 2007 research into engagement Watson Wyatt suggested that engagement combines commitment with focus and direction, which they refer to as line of sight. Line of sight can be measured in terms of individual performance. Organisations may have a combination of those that are committed, those that are high performers, those that are engaged and those that are neither committed nor performing well. For an organisation to increase financial performance they must aim to increase the number of engaged staff in their organisation. Watson Wyatt labelled these groups: value creators, core contributors, aligned sceptics, lost believers and the disengaged. The following table shows the level of commitment and performance that each group demonstrates. Performance Commitment Value Creators High High Core Contributors Medium Medium Aligned Sceptics Medium Low Lost Believers Low High Disengaged Low Low They concluded that improving line of sight, improves performance, while strengthening commitment reduces turnover. But strengthening both commitment and performance results in a greater number of high performing employees that are more likely to stay with the company. The CIPD suggest that there are three types of engagement which need to be met for an employee to be fully engaged. Emotional engagement being very involved emotionally with one s work Cognitive engagement focusing very hard whilst at work Emotional Engagement Physical engagement being willing to go the extra mile for your employer. Cognitive Engagement Physical Engagement

The Importance of Engagement Engagement is particularly important during times of change, as employees who have a high engagement level are more likely to be supportive and resilient to organisational change. High levels of employee engagement have also been proven to have a significant impact on the financial performance of an organisation. A study by Towers Perrin ISR of 50 multinational companies found that over a 12 month period, companies with high levels of engagement out performed those with less engaged employees, in three key financial measures Operating income Net income growth Earning per share Key Engagement Drivers It is important to understand the drivers behind engagement in order to develop strong organisational programmes to improve employee engagement. A 2006 study by the Conference Board of Canada, that compared the results of 12 different studies into engagement drivers found that at least four of the studies agreed on eight key drivers: 1. Trust and integrity 2. Nature of the job 3. Employee understands how their work contributes to the organisation s performance 4. Career growth opportunities 5. Pride about the organisation 6. Relationships with co-workers and team members 7. Employee development 8. Relationship with one s manager Watson Wyatt s 2007 research concluded that there are essentially 3 headings under which all the key drivers fall. Strategic direction and leadership Effective, all-way communication Customer focus

Increasing Engagement There appears to be a consensus between most engagement studies that managers play a vital role in increasing employee engagement. For managers to fulfil this role they must have the skills necessary to build effective relationships and an understanding of how to capitalise on moments where engagement can be built. It therefore follows that in any programme which focuses on employee engagement it is important to factor in a plan to review and provide training on manager skills. In a recent research published by ACAS and the CIPD they proposed that there are six headings which encompass the fundamentals that managers must have to be an effective manager and get the most from their staff. These are: Managing work now and in the future Managing the team Managing the individual Managing conflict and difficult situations Managing yourself These skills will enable managers to build relationships with staff, but in order to effectively build engagement it is important that managers understand the moments when employee engagement can be increased. Group / Company-wide opportunities Recruitment Induction Training Major Change (downsizing, mergers, acquisitions, leadership and benefits restructuring) Senior leadership communication Advertising and public relations Company social events Team meetings Benefits enrolment Employee surveys Individual / Personal Opportunities Goal setting Ongoing performance feedback Recognition programmes Coaching and mentoring Annual performance reviews Career development Personalised communication (total rewards statements, anniversaries) Personal crises Retirement Formal and informal networking Watson Wyatt Continuous Engagement 2008-2009 However, it is important to recognise that good management can only happen when line managers are supported by their organisations. With senior management taking the lead in the development of organisational practices to strengthen engagement Practices that can strengthen employee engagement: Develop and communicate clear, concise and consistent core values Clearly communicate the organisational goals and how employees can help to achieve those goals Communicate values around customer satisfaction Encourage employee input into how they work and the freedom to make decisions Encourage employee feedback and act on these where appropriate so that employees can see that there opinions are being heard and are valued Demonstrate a clear path for career progression. Remember, all employees are engaged when they join an organisation. It is what happens after that point that will determine their level of continued engagement.

The Importance of a PPC EAP in Increasing Engagement An EAP is a valuable resource to help increase employee engagement and should form part of the development of any organisational engagement programme. Organisations with an EAP report lower levels of employee anxiety, dissatisfaction, and turnover; higher levels of fair compensation; higher levels of growth and development opportunities and higher levels of meaningful work. However, this is a case of the chicken and the egg. It is difficult to know if these differences are because organisations that implement an EAP already have cultures that are likely to foster better working environments, or whether the EAP its self is responsible. But it is likely to be a combination of the two factors. EAP s also have a part to play in achieving engagement in the three key areas of engagement: Emotional engagement - being very involved emotionally with one s work Cognitive engagement - focusing very hard whilst at work Physical engagement - being willing to go the extra mile for your employer. High engagement in each of these areas can only happen when employees are not distracted by personal life, work life or health and wellbeing issues. The focus of a good EAP is on providing the information, advice and support that will enable employees to resolve these issues, before they affect the performance and engagement of an individual. PPC services that help to support organisational engagement programmes: Employee Support Skills Development Telephone Counselling Face to Face Counselling CBT Online Specialist Information Financial Advice Legal Advice PPC Online Manager Consultations Personal Coaching Performance Coaching Training Workshops Lunch n Learns PPC Online Manager Area If you would like to speak to us about how PPC can help your organisation to increase engagement call 01865 397000 or e-mail enquiries@ppcworldwide.com

Bibliography Employee Engagement A Review of Current Research and Its Implications The Conference Board of Canada 2006 Reflections on Employee Engagement CIPD 2006 Engagement The Continuing Story Institute of Employment Studies - 2007 Bridging the Employee Engagement Gap Watson Wyatt - 2007 Employee Engagement Underpins Business Transformation Towers Perin / ISR -2008 Continuous Engagement Watson Wyatt 2008-2009 Meeting the UK s People Management Skills Deficit ACAS/ CIPD 2009