Ways to retain and motivate employees:
| • | Increase compensation |
| • | Allow flexible work schedules and/or telecommuting |
| • | Identify opportunities for advancement |
| • | Expand benefit offerings or increase existing benefits |
| • | Champion work-life solutions |
| • | Offer training |
| • | Present opportunities for employees to offer their opinions |
| • | Focus on stress-reduction in the workplace |
Gaining ground
We’re all in this together: The critical importance of employee engagement
While the issue of employee engagement is not new, it is poised to be one of the most critical issues facing HR as the economy rebounds.
In a recent survey, the Opinion Research Corporation (ORC) found that nearly 80 percent of respondents would consider leaving their current job if a new opportunity presented itself, and 25 percent said they would consider leaving their employer once the economy stabilizes. Of those surveyed, only 19 percent of respondents said they were happy with their current employer.
25 percent of respondents say they would consider leaving their employer once the economy stabilizes. — Opinion Research Corporation, December 2009
These sobering facts come just at the time when companies will need their best people to move ahead in the highly competitive post-recession environment.
“Given the high percentage of respondents who would consider leaving their present positions to pursue other opportunities, many employers may find themselves faced with serious turnover issues when the job market opens up,” said Lisa Wojtkowiak, of ORC’s Employee Engagement practice. “To prevent this from happening, employers will need to focus on increasing their employees’ level of engagement,” she says.
Where’s the disconnect? Obviously, corporate belt-tightening and budget cutbacks have taken their toll. A study by Spherion shows a quarter or less of the employees surveyed were satisfied with their compensation, earnings potential or training. Changes in workplace attitude show further deterioration in morale. Only slightly more than a third of respondents were happy with the management climate, benefits and the work environment.
On the flip side, workers whose development has been stifled by the economy consider other things, such as individual recognition, more important. According to the Washington-based Corporate Executive Board, employee desire for recognition jumped 15 percent from October 2008 to March 2009.
What can be done?
An engaged employee doesn’t come to work because they have to – they come because they want to. Employees that are engaged truly embrace the idea of “we’re all in this together” and don’t consider what they do to be exceptional – they consider what they do to be part of a cultural norm – one that holds everyone to a higher standard to better themselves and their organization.
Engagement is a critical part of any organization’s success. Studies show engaged employees are more productive and contribute more to profits as well as being more loyal. Companies that don’t focus on this issue not only risk losing valuable employees, but also jeopardize their overall customer service and competitive edge.
Initiatives to address the problem range from making it easier to move within the company to allowing more flexible work schedules and telecommuting. Restoring worker compensation is important as well, but equally so is putting in place – and communicating – executive compensation structures that match pay to performance.
The book Closing the Engagement Gap offers the following five keys to engagement:
- Know them. Be as familiar with employees as you are with customers. Use that knowledge to shape workplace programs that win people's hearts and minds.
- Grow them. Challenge and develop the workforce. People want to learn and excel in their jobs, and they commit to companies that help them do so.
- Inspire them. Establish an emotional connection. When people's work has meaning, they are more inclined to do whatever it takes to ensure success.
- Involve them. Communicate clearly with employees, gather their input, and let them act. Knowledgeable, valued workers add more value.
- Reward them. Deliver a "deal" that is fair and meaningful. When people believe they are treated right and appreciated, they give more of their time and creative energy.
Beyond engagement, another key to employee productivity is setting clear direction. The study by the Corporate Executive Board found that when managers clearly define employees’ objectives – and connect the individual’s work to the overall objectives of the organization – discretionary effort in the workforce can increase by as much as 10 percent.
Managers themselves say the one thing employers can’t do is sit tight and hope the end of the recession will solve their problems. Employers must take time now to focus on employee engagement to be better positioned to attract and retain employees when the economy rebounds.
Sources
CFO magazine, “Measuring Up,” June 2007.
Julie Gebauer and Don Lowman (Towers Perrin), “Closing the Engagement Gap,” December 26, 2008.
Spherion Employee Satisfaction Survey, 2009.
Cara Whedbee, Ph.D., “Ideas for Increasing Employee Engagement,” HRTools.com.
