Employee engagement key to improving the bottom line

Recent research by online employment resource CareerOne shows job dissatisfaction levels are at a record high. CareerOne’s annual report, Hunting the (Hidden) Hunters, confirmed that some 37 per cent of employees are actively looking for new jobs. Overall, 82 per cent of employees are open to moving jobs if the right opportunity was to come along.

The research found overall job satisfaction to be at its lowest level (49 per cent) since the research began in 2008, with satisfaction levels in the areas of job security, flexibility, management/leadership, pay, hours worked, career opportunities and team culture all dropping significantly since this time 3 years ago.

The alarming results have been attributed to a number of factors including: less concern about the overall health of the Australian economy; a sense of personal financial instability; and changing attitudes toward work and priorities.

During the GFC, employees focused on maintaining their job security whilst other priorities such as better conditions and higher pay took a back seat. Now, with less concern about the state of the Australian economy, job hunters are out in force searching for more money, better work life balance and a better team to work with.

These research findings highlight the need for employers to focus on employee engagement in order to increase employee performance and retain key personnel.

EMPLOYEE ENGAGEMENT

The Corporate Leadership Council defines employee engagement as the “extent to which employees commit – both rationally and emotionally – to something or someone in their organisation, how hard they work, and how long they stay as a result of that commitment”.

Research shows that organisations with highly engaged employees typically outperform their competitors. Specifically, those organisations with highly engaged employees have 27 per cent higher profitability, 20 per cent higher employee satisfaction, 38 per cent higher productivity, 30 per cent better staff retention and 50 per cent higher customer loyalty.

Such findings emphasise the crucial relationship between employee engagement and an organisation’s bottom line, providing organisations with good reason to increase their focus on cultivating an engaged workforce.

TIPS ON IMPROVING EMPLOYEE ENGAGEMENT

Recent research in the areas of engagement and neuroscience provide some profound insights into the most effective methods for influencing workplace behaviour and increasing employee engagement.

Purpose, value & culture – Develop a clear purpose for the organisation that all employees can engage with and create organisational values which will guide employee behaviour. Furthermore, cultivate a compatible culture by leading by example and internalising the organisation’s values and purpose.

Key Performance Indicators – Create SMART (specific, measureable, achieveable, relevant and timely) KPIs that help drive the vision and strategy of the organisation.

Equitable rewards and recognition – Design an employee reward program which reinforces the organisation’s values and encourages supporting behaviours, whilst also rewarding employees for meeting or exceeding designated KPIs. In addition, ensure rewards are transparent and equitable and that promotion is merit based.

Communication – Regularly and effectively communicate with all levels within your organisation and facilitate connections between individuals and teams.

Performance management – Establish a transparent and equitable performance management process and ensure performance management is proactive, not reactive. Additionally, ensure dysfunctional behaviour is not inadvertently encouraged via management inaction.

Autonomy – Avoid telling employees what to do and how to do it. Instead, encourage employees to become involved in decision making and use coaching methods that focus on autonomy and self-directed learning.

Change management – Reduce perceived threats when change is occurring within the organisation by providing employees with positive future expectations, maintaining open lines of communication, regularly reassuring employees and introducing change incrementally.

REFERENCES

1 CareerOne Hunting The (Hidden) Hunters – Attracting and Retaining Talent in 2011, March 2011.

2 Shirlaws Australia Blog. Leading Indicator to Employee Engagement Revealed, 15 March 2011 (article since removed)

3 HR Daily, Is your company engagement-capable?, 28 March 2011.

4 Pageup People, The Neuroscience of Talent Management, August 2010.