Prioritising Employee Engagement Initiatives
What if your company already pays competitively, has a flexible work arrangement policy, has comprehensive performance management processes, employs effective communication mechanisms and offers a great benefits plan (including pet insurance!), but your engagement and retention levels are not what you want them to be?
Not a week seems to go by without another news item about the fast-approaching retirement bubble, the ever-changing motivational factors of the latest generation, the increasing diversity of the workforce, and the sweeping socio-economic and geo-political issues we face in our shrinking world.
No question about it, the workforce and the world of work have transformed in the past few decades, and they will continue to do so for the foreseeable future. The primary message for organisations is: maintain the full-court press on efforts to engage and retain talent, and become increasingly more creative in those efforts.
The good news is that a fairly sizable body of research has emerged in the past few decades, making it clear that it really is worth it to invest in employee engagement and retention.
Many studies have established a link between management practices and employee engagement, employee retention, customer satisfaction and customer loyalty - as well as the "holy grail" of the corporate world, bottom-line business results.
This research provides the business case that allows organisations to move past contemplating whether they should focus on employee engagement and retention. The challenge today is to determine what to focus on.
Thankfully, the research also provides a good deal of guidance on specific practices that are likely to move the needle on engagement and retention.
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Moving the needle on engagement - What works
- A clear, compelling organisational vision and strategy
- A culture of respect and trust
- Frequent, open, two-way communication
- Clear, aligned goals
- Meaningful work
- Adequate tools and resources to perform work
- Competitive benefits and compensation
- Flexible work policies
- Regular performance and developmental feedback
- Opportunities to learn and grow
- Personal connections with people in the workplace
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The problem is that the list is so broad that it makes it nearly impossible to prioritise efforts.
Well, reading between the lines, you can see that three key areas emerge as the foundation of virtually everything on the list. To improve engagement and retention, the sure bet is to focus on:
Point No. 1: Start with excellent selection
Have you asked someone who truly seems to love their job about what motivates them? Inevitably, they volunteer something about how well the characteristics of the job fit their own personality, skills and interests. However, they rarely use exactly those words.
Instead, they say: "Oh, well I just love... (meeting new people, being my own boss, being outside, making a difference, etc.)." Or, they comment on how much they enjoy their co-workers, how well they get along with their boss, or how much they believe in and feel a part of the organisation's strategy or mission.
The optimist wants to think that these people are working in organisations that clearly have an excellent process for finding and selecting people who are a good fit for both the job and the organisation. On the other hand, the pessimist wonders if maybe the individuals themselves are the ones with the good process.
These are people who (a) either figured out what motivates them and sought out work that offered them those qualities or (b) they landed somewhere and then figured out how to connect the job and environment to something that motivates them. Chances are it is a little bit of both.
The point is, that if you want highly engaged employees who are going to stick around, you cannot leave the selection process up to chance.
Perform a complete job and competency analysis for each position. Clarify your organisation's strategy, mission, culture and work environment. Understand the personality dynamics on the work team, as well as the management style of the supervisor in the group with the opening.
Then, thoroughly and honestly evaluate all candidates against these factors. And, make sure that every single person who touches the selection or promotion process is fully trained in how to conduct a rigorous candidate fit evaluation.
Point No. 2: Focus on the skills of people who supervise others
Study after study has shown that immediate supervisors have perhaps the greatest impact on employee engagement and retention. Some organisations still, however, make the classic mistake of assuming that the person who is a great individual contributor will be a great manager of people.
Sometimes, this is because the organisation is afraid that the individual might leave if they do not receive a salary increase and new title, and the career path is structured such that becoming a manager of people is the only way to get those things. This is incredibly short-sighted.
Just think of all of the people who may leave, or worse yet, stay and become disengaged, when they have to work for a person who is not skilled in (or interested in) managing people. The ripple effect on productivity levels, and the organisation's ability to execute on its strategy, can be staggering. Smart companies use the same level of rigor to promote from within as when making external hires.
Let's assume, however, that supervisors and managers do have decent people skills and they have a desire to manage people. Can they make the tough decisions when a well-liked team member consistently underperforms? Can they communicate effectively as to why this year's bonus is so much lower than last year's? Do they know how to implement that great flexible work arrangement policy in a way that will balance employee needs with productivity goals? In other words, will they be the kind of managers that can inspire engagement and retention?
Again, it is not wise to leave this up to chance. Define what great management and supervision looks like in your organisation. Train your supervisors and managers on this - then train them again. Monitor how they are doing in implementing people-related programs and policies. Help them seek and act on upward feedback from their people. Provide them with the tools they need to manage performance effectively and provide career development opportunities to their people. And, keep them in the know about important organisational issues so they, in turn, can communicate them to their teams in a way that generates a climate of trust and respect.
Point No. 3: Develop strong leaders
Who will decide on those important organisational issues and set that innovative strategy or inspirational mission in the first place? Whose behaviour can shape the culture and affect the climate of the entire organisation in no time at all? Who needs to establish the budget to create those great selection tools and that comprehensive supervisory training program?
Clearly, an organisation that is devoid of strong leaders will have significant challenges engaging and retaining employees. So, insert the word "leader" wherever you see the word "supervisor" or "manager" in the paragraphs above. Then, kick that up about twenty notches.
Leaders need to receive candid feedback, but all too often people assume they are already completely self-aware. Or, people are afraid to speak the truth to leadership. Leaders need ongoing training and development, but all too often people assume leaders already know everything they need to know.
And, sometimes the leaders themselves are their own worst enemies. They may be afraid to seek feedback or ask for training for fear that people will see their weaknesses and their authority will be undermined.
Smart organisations establish targeted and personalised development plans for their leaders and provide them with a good deal of feedback, training and support. Strong leaders make strong decisions and drive strong business results. All of which are nearly impossible to do without a highly engaged workforce.
Clearly, one of the biggest challenges to establishing an environment where 1) selection decisions are sound, 2) supervisors are highly skilled and 3) leaders are well-developed is that these things take a long-term commitment, in both time and money.
It may be hard to see immediate results, but perseverance in these three areas will pay off. And, not just for the short-term. These investments will continue to pay off for years to come.
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Scott Cohen, Capital H Group. Capital H Group is a consulting firm that takes a value-based approach to helping companies manage, and invest in, their human capital. Partnering with our clients, we focus on creating value through their people. For further information, visit web site: www.capitalHgroup.com
First published: 19 July 2007.
Last updated: 19 July 2007.