The latest Gallup research finds that businesses with high employee engagement have 12% higher customer advocacy (brand ambassadors), 18% higher productivity (performance output) and 12% higher profitability (return on investment in people) compared to companies with low employee engagement.
People management is not just a functional responsibility; it is integral to business performance and management skills. Managers need to understand how to bring out the best capabilities of all employees, recognise and maximise return on their top performers and achieve projected business results. As Australian businesses climb out of the downturn, they now face the demands of retaining and leveraging their key talent. This has been accentuated by the global financial crisis which has left many employees disillusioned by the employment equation. As the labour market becomes more competitive, a focus on employee engagement is critical.
A strong, positive employment brand and employee engagement, go hand in hand. An employment brand is the way your employees, candidates and potential or prospective applicants perceive you as an employer. An employment brand is not about what you say but what your employees say and do. It needs to be credible, compelling and connect the public and “private” brand.
Employee engagement matters and delivers real returns. The advantages of a strong employment brand include
- higher levels of employee engagement (higher engagement = better productivity and stronger financial performance)
- a greater likelihood for employees to be brand ambassadors for your company
- lower turnover
- a greater number of employee referrals
- a higher quality candidate pool
- more candidates who match the role requirements, meet or exceed expectations, and relate to your culture
- increased attraction and closing of passive candidates
- a decreased application-to-hire ratio
- a lower rate of offer rejection
- decreased time-to-fill and cost-per-hire ratios
Significantly, 70% of an employee’s engagement is determined by their immediate supervisor.
Given the cost of replacing an employee (according to the CEO Institute anything up to 120% of the annual salary) and the impact that manager’s have on employee motivation, Harvard Business Review has come up with these Ten Commandments for managers.
1. Give people work they love – and trust them to deliver
Behind every job there is a person with individual preferences and values. When jobs are defined in terms of business outcomes rather than tasks (traditional job descriptions) you can align the job and the person. Give people something that interests them; trust them with the opportunity and their energy and appetite for work soars.
2. Be a good leader
People want to be led, not managed. You need to abandon pomp and corporate speak and “walk the talk”. Don’t hide behind emails, memos or closed doors. Be inclusive and always be approachable. Bring strength to your business or team; don’t scare your followers but, on the other hand, don’t keep them out of the loop. Be interactive rather than top-down in your communications. Stop making workplace decisions backwards, driven by financial considerations first.
3. Create a community
Think of the impact that social media has had on our relationships. Form your own community where employees feel supported in good times and bad. Celebrate all successes both professional and personal. Be supportive of failures and disappointments. Get “your community” excited – about the company, about the product, about the job, about a project. Create ambassadors for your brand and they will strengthen it for you.
4. Motivate
Leverage individual strengths; don’t harp on weaknesses. Make work fun – or at least a positive experience. Get your business involved in community or charity matters that have meaning to your employees. Communicate clearly and foster a culture of knowledge sharing.
5. Reward
Compensate fairly and in line with your competition or industry best practice. Recognition or benefits programmes have to be meaningful to your employees; craft a policy that resonates and motivates. Identify other “benefits” or perks that don’t have to cost much but can be used to reward good performance. Pay bonuses when you said you would. Identify your top performers and find ways to recognise them (your top 20% contribute 80% to your business success). Consider a programme that recognises employees who learn and grow.
6. Develop people
Offer on-going training and education. Be pro-active rather than reactive. Let your employees know what is on offer and suggest suitable and relevant courses. Consider cross-training – giving people the opportunity to experience and train in different aspects of the company. Don’t neglect your own development and education.
7. Coach – in the moment not after the fact
Coaching is one of the most valuable means of giving feedback – both positive and negative – on performance. Annual performance appraisals have limitations. Performance dialogues are the new buzz and combined with coaching they create an immediate and relevant feedback loop. Through coaching you discover and tap the talents of your people. You can direct individual development and align behaviours and skills with business goals. Employees can see how their performance impacts on the business and can be motivated to maximise positive impact.
8. Respect
Genuinely treat employees as colleagues. Kindness, respect and dignity will be rewarded by loyalty to you and the business. Yes, you can lead people through fear and intimidation; however the odds of retaining and developing them are slim. Trust their initiative. “Why” is more important than “what” or “how”. Explain the situation and give people choices rather than orders. Be fair; nothing de-motivates like unfair or biased practices. Don’t be afraid to call to account someone who is out of line.
9. Trust - and track
Nobody wants to fail but micro-managing just doesn’t work. Give people autonomy but have systems in place that build trust and keep track of results. Don’t keep people in the wrong roles, set unrealistic goals, keep unproductive team members or change direction unfairly.
10. Cherish and cultivate your culture
As a leader you set the tone. The buck starts and stops with you.
