The concept of Employee Engagement has been topical in many organizations. A great deal of the discussions are around that Managers believe that they offer their employees the “best deal” in terms of employment conditions (mainly salary and benefits) – however more often than not this does not seem to translate into improved employee productivity. This has brought greater prominence to the question: what really is Employee Engagement & how can organizations create optimum engagement levels and enjoy its benefits?
Employee engagement refers to the level of enthusiasm, passion and commitment that an employee has towards their job and their organization. It is an outcome of a wide range of employment conditions, interactions and interventions that result in employees truly caring about their work and the performance of their organizations. It’s important to note that Employee Engagement is more than just remuneration – no amount of money can buy employee passion, enthusiasm and commitment. According to the McLeod Report (Engaging for Success: Enhancing Performance through Employee Engagement, 2009), with the optimum engagement levels, employees offer more of their capabilities and potential thereby driving productivity and business performance. Research shows that there is a positive correlation between an improvement in employee engagement and business performance. According to Doug Conant, “to win in the marketplace you must first win in the workplace.” Organizations need to win the hearts and minds of employees before they try to sell their belief (products and services) to the customer. Once you win the hearts and minds of employees you create passion, ownership and accountability.
It’s important to note that there are 2 levels of engagement, the primary (to organization) and the secondary (to job). In the first instance the employee needs to believe, commit and be passionate about the purpose and values of the organization. The organizational purpose has to be vividly articulated to the employee. The leadership of the organization should be able and willing to transfer the organizational beliefs and aspirations to the employee. It’s only when the employee is aligned to the organizational purpose that s/he meaningfully invests maximum effort and passion in their job. At the secondary level, the employee needs to have “meaningful work”, a job that is correctly configured & aligned to the organizational purpose – a job that guarantees full employment. At the secondary level, the employee needs to have a clear line of sight between their role in the department and the organizational mission as well as the relationship with other jobs within the organization.
Successful engagement at the primary level influences engagement at the secondary level. Optimum engagement is when an employee is fully engaged at both primary & secondary levels. Some of the observed benefits of an engaged workforce are:
1. Productivity
According to the Hay Group, engaged employees are 43% more productive than disengaged. This productivity stems from the passion & enthusiasm that engaged employees have as they fully understand the big picture & how their contribution fits into it. Engaged employees go the extra mile, take less off days & are more focused on achieving the desired results. The more engaged the employees are, the more efficient and productive they become.
2. Skills Retention
Because of their passionate & commitment to the organization, engaged Staff are loyal, meaning that skills & energy remain within the organization. Skills retention also saves on employment costs as studies have shown that it costs up to 40% of an employee’s annual salary to replace him/her. Retaining engaged employees therefore saves costs from talent acquisition & development perspectives. Engaged employees are a repository of institutional memory & culture thereby providing corporate continuity
3. Innovation
Engaged employees are passionate about their jobs and this leads them to continually seeking better & more efficient ways of achieving their objectives. Engaged employees have a sense of ownership of the vision of the organization thus they tend to constantly seek innovative ways of improving their work & that of their teams in order to realize the vision.
4. Customer Service
To win in the marketplace you must first win in the workplace. In the modern business world, success is largely down to differentiation. Customer experience is a major part of this differentiation. Engaged employees are happier & passionate about their jobs & their organizations thus they tend to provide superior customer service. They are more positive and proactive thus achieve positive impact to customer experience.
5. Brand Ambassadors
Engaged employees have been known to be effective brand ambassadors for their companies. These employees have a strong sense of belonging and heightened emotional connection with their companies. They are proud to be associated with their brands (company, its products & services) so much that they propagate positive messages wherever they go.
Part 2 of this Article will give practical ways that Management can take in order to build the optimum levels of employee engagement.
