What is Employee Engagement?
Employee engagement is currently in vogue and a buzzword in modern business. However, you will find many differing views and much ‘pink and fluffy’ stuff written about the subject, when the reality is far more straight forward.
SMP Solutions have been researching this for a number of years and delivered a training seminar on the link with productivity @ the Better People Better Business exhibition in London in 2005. See downloads
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Employee Engagement - A simple definition:
‘A result that is achieved by stimulating and directing employees’ enthusiasm for their work and directing it toward organisational success’
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What is the impact of having engaged employees?
In return employees make far greater discretionary effort and deliver superior performance - Estimates vary from 19-40%. In other words they will 'go the extra mile'!
Source – The Work Foundation
What influences Employee Engagement?
Arguably this is not ‘rocket science’. Hertzberg’s theory of motivation with the ‘hygiene’ (or maintenance) factors underpinning the motivators have stood the test of time. As long as the foundations are strong then the key motivators will kick in to make a difference. If the foundations are rocky then it will be difficult to get the same impact from these key motivators.
A typical example:
Research shows clearly that the single biggest reason why people leave their jobs is down to how they view their boss.
Effective leadership and management will cascade down an organisation and create a ‘feel good factor’, which helps staff feel in tune with the values and ethos of the organisation. If the leadership and management are poor, then this is likely to cloud most other aspects of the organisation and disengage the workforce.
What about Reward & Benefits – How do they impact on Employee Engagement?
There is a view that suggests these are fundamental. However, going back to Hertzberg’s theory, this is usually only short term. Therefore, unless the reward is exceptional or the benefits scheme has great flexibility or some unusual perks and is particularly well communicated to the workforce, then the ‘extrinsic’ value to the employee will diminish quickly.
Conversely, if the reward is so poor that it does not cover the basic necessities in life i.e. mortgage or rent, ability to feed and cloth oneself to a reasonable level, then this is a key hygiene or maintenance factor that people will not tolerate, especially in today’s society.
The most important aspect of reward is ‘fair pay’ (i.e. relative to the market or fellow employees). If this is not right then the foundations collapse.
Also, bonus/incentive schemes that don’t motivate won’t work and will have a negative impact on staff, resulting in disengagement and likely retention issues.
These should be key elements in building ‘secure foundations’ to get the ‘extrinsic’ factors right but in themselves are unlikely to create a lasting ‘engagement factor’.
So what are the key drivers to create the ‘engagement factor’?
The biggest impact to employee behaviour is non financial - ‘intrinsic’. Employees want to feel valued – not just a number and have recognition for a job well done.
There have been many studies which agree on these eight key drivers:
• Trust and integrity – How well managers communicate and 'walk the talk' and the amount of autonomy employees are given.
• Nature of the job – Is it mentally stimulating day-to-day?
• Line of sight between employee performance and company performance – Does the employee understand how their work contributes to the company's performance?
• Career Growth opportunities – Are there future opportunities for growth?
• Pride about the company – How much self-esteem does the employee feel by being associated with their company?
• Co-workers/team members – A good team spirit and team working environment significantly influences the level of engagement
• Employee development – Is the company making an effort to develop the employee's skills and knowledge?
• Relationship with direct manager – Does the employee value his or her relationship with his or her manager?
Closely linked is work-life balance and how well the organisation values employees ‘outside’ life as a positive impact on how well they work. Also, whether there is a culture of flexibility (including flexible working options) rather than all ‘take’ and no ‘give’.
There are inevitably demographic and cultural differences that will impact on engagement plus the type of organisation in relation to size and service offering. The working and physical environment plays a part but often staff will put up with a poorer environment providing the other key drivers are strong.
What can we learn from this?
Companies should be doing a regular ‘reality / health check’ on engagement levels in their workforce, as taking this for granted could be at their peril! Are your staff in tune with your organisational values?
Most importantly, if the leadership, management and ‘human’ aspects are so key to employee engagement, and an engaged workforce can be so much more powerful and productive, then organisations should invest in ensuring the key players development is heavily based around their ability to positively influence the workforce. This will clearly be an excellent investment in time and money.
SMP Solutions will be delighted to work with you to help you with your employee engagement. As with all our Training, Development and Consultancy, special rates are available for Charities.
Please see the link to the presentation ‘Productivity is a 2 way street – how to give a little to get a lot back’ which will provide some food for thought and contact us with your requirements.