Employee Engagement – Page 6

May 6, 2009June 29, 2023

Employee Engagement in Tough Times, Part One

Amid periods of economic uncertainty, engaging and retaining valued employees is particularly critical if organizations are to maintain quality in their products and services and lay a foundation for future growth. Yet while challenging economic environments make employee engagement more critical, they also make it more difficult to achieve. Belt-tightening often results in organizational retrenching, reduced staffing levels, increased workloads and constrained compensation budgets.

The present economy may leave organizations feeling as if they are being squeezed in a vise. But there is opportunity amid the economic uncertainty. Careful attention to positioning individuals and teams to succeed will not only allow organizations to weather the storm, but also to emerge from the downturn in a stronger competitive position.

All organizations will be changed by the downturn
In the present economy, there will certainly be winners and losers, as there are in any period. But while some organizations may fare better than others, outcomes will be consistent in at least one respect: All companies can be expected to emerge from the downturn as changed organizations. In some cases, the changes may be fundamental, owing to mergers, acquisitions, restructurings, or shifts in market focus or positioning. In other cases, the changes may be more modest. Cost-cutting efforts, layoffs and shifts in priorities may simply result in new ways of addressing existing goals and objectives.

Also read: Employee Engagement in Tough Times, Part Two

However, regardless of the magnitude of the downturn’s impact on your organization, it’s important that you recognize that this time will bring changes, and with them come immediate challenges and longer-term opportunities. The immediate challenge is to minimize the disruptive aspects of organizational transitions on employees and customers. The longer-term opportunity is to ensure that once the downturn ends, your organization will be not only different but better.

Disruptive events, such as recessions, cause organizations to re-examine taken-for-granted ways of working. In these periods, there is a unique opening to restructure working relationships in more productive ways—before managers and employees once again settle into more stable patterns. And therein lies the opportunity to leverage a downturn to create positive changes that can serve your organization well—now and in the future.

Lessons from the past
In understanding organizational responses to periods of economic uncertainty, we can draw some lessons from the 2001-2002 downturn. Near the end of the recession, Hay Group surveyed executives from organizations appearing on Fortune’s Most Admired Companies list and from peer companies, as part of our ongoing partnership with the magazine. Nearly all respondents (86 percent) agreed that the economic environment was more challenging for their organizations than it was two years prior to the recession. With respect to motivating employees, however, respondents in the most admired companies generally reported that their organizations were in a better position post-recession than pre-recession. They also reported enhanced levels of employee loyalty and reduced concern about losing key talent. For the peer companies, by contrast, the downturn was perceived to have had a net negative effect in each of these areas.

The 2001-02 downturn was a transforming event for the most admired companies and peer companies alike, involving widespread changes in operations. While the most admired organizations and their peers exited the downturn in different places with respect to employee motivation and commitment, all came away with an enhanced appreciation for the impact on business success of employees’ performance and engagement. Fifty-seven percent of all respondents viewed the impact as greater or much greater than two years prior, whereas just 7 percent saw the impact declining.

A perspective from the vice president of human resources for a Fortune 500 building products manufacturer highlights the particular importance of employee performance in a downturn: “When our business is good,” he noted, “you could put monkeys in charge and they would still make money.” But when times are tough, he continued, strong leadership is essential and individual contributions are easily distinguished. Put another way by Warren Buffett, you find out who’s been swimming naked when the tide goes out.

A current view: human resource priorities

In November 2008, Hay Group conducted a global study to understand how human resource strategies, programs and priorities are being affected by the current economy. Nearly 2,700 respondents from 91 countries were asked to describe whether changes were being made to such areas as pay and benefits, staffing levels, performance management and training programs, and what those changes entailed.

Notably, three of the top five workforce concerns indicated by respondents pertained to the employee life cycle—attracting and recruiting the right talent, engaging and motivating employees and retaining key contributors. Concerns about talent acquisition and retention may seem misplaced during an economic downturn, when we are confronted with daily reports of organizations laying off large numbers of people. But the study results point to key reasons for organizations to continue to attend to these issues.

Even amid downsizings, organizations are still hiring staff to fill critical roles. And many are finding it harder to do so, as promising candidates are reluctant to move from their current positions. As one respondent noted, “Our new-hire offer acceptance rate is low due to the market situation. The candidates are worried about future layoffs if they change jobs, as the practice is commonly based on last in, first out.” Likewise, faced with constrained compensation budgets that limit their ability to reward staff, many organizations are fearful of losing valued employees. Savvy leaders recognize that competitors often see opportunities to lure away key contributors in downturns and worry about vulnerabilities in some or all of their markets.

Employee engagement is critical in a downturn, but it’s not enough

Maintaining a focus on engagement is especially critical in difficult times. Engagement refers to the commitment employees feel toward the organization (e.g., their willingness to recommend it to friends and family, their pride in working for it and their intentions to remain a part of it). But it’s also about employees’ discretionary effort—their willingness to go the extra mile for the organization. Right now, as organizations need to do more with less and strive for greater efficiency, tapping into the discretionary effort of employees is all the more essential.

Unfortunately, however, our research confirms that many organizations that have enviably high levels of employee engagement still struggle with performance issues. So while engagement is necessary, engagement alone is not sufficient for achieving maximum levels of individual and organizational performance. Leaders must not only engage and motivate employees but also enable them to channel their efforts productively and effectively.

In what we call an enabled workforce, employees are effectively matched to positions, such that their skills and abilities are put to optimal use. Likewise, employees have the essential resources—information, technology, tools and equipment, and financial support—to get the job done. They are able to focus on their key responsibilities without wasting time navigating such obstacles as procedural restrictions or nonessential tasks in the work environment.

Most organizations employ a sizable number of frustrated workers: individuals who are highly engaged but lack the tools required to be fully effective and successful. Frustration is a significant problem for organizations and employees, especially in a challenging economic environment. Organizations trying to squeeze out every drop of productivity can’t afford to squander the energy of motivated employees. And employees who are being asked to work harder and to do more with less understandably want to work in smart and efficient ways. In the short term, these motivated but frustrated employees may suffer in silence. But over time many can be expected to turn off and disengage, or tune out and leave.

The second part of this article will offer a “path to performance” for generating business results through enhanced levels of employee engagement and enablement.

May 6, 2009June 29, 2023

Employee Engagement in Tough Times, Part Two

Tough times make it essential that organizations get the most out of talent at all levels. But those that focus exclusively on employee engagement are likely to be disappointed by the extent to which improvements in this area translate into enhanced performance. To maximize individual and team contributions, engagement alone is not enough. The commitment and discretionary effort offered by engaged employees can easily be squandered if leaders do not also enable them to succeed by putting them in roles that fully leverage their potential and providing them with the workplace supports they need to carry out their responsibilities.

A path to performance
The drivers of employee engagement and employee enablement can be organized around four major themes, representing a “path to performance” for generating business results through enhanced levels of employee effectiveness.

Also read: Employee Engagement in Tough Times, Part One

Organizations first need to clarify strategic objectives to promote understanding and line of sight at all levels. They need to instill confidence in leaders and ensure appropriate market positioning and focus on customers and quality. Next, organizations need to align structures with strategy and ensure that resources, decision-making authority and support from co-workers are adequate to put employees in a position to succeed.

With the structure in place, organizations then need to attend to getting the right people “on the bus,” providing training to enhance employee skills today and development opportunities to build capability for the future. Finally, organizations need to motivate high levels of employee performance through appropriate performance management systems, along with compensation and recognition approaches that reward employee contributions.

Below we highlight key considerations in each of these areas in challenging economic environments.

Key considerations in a downturn
Leadership and direction:
Leaders need to help employees understand that the company has a coherent strategy that will allow it to succeed in the current business environment. They must communicate that both the company as a whole and its individual divisions are making progress relative to strategic objectives, and that all employees have a role to play in helping the organization carry out its plans. To win trust and confidence in a downturn, leaders are well advised to:

• Communicate, communicate, communicate: In the midst of change, communication channels in organizations often dry up. Yet in times of uncertainty, employees are most in need of communication. If leaders are not meeting this need with credible messages, gossip and rumor often fill the vacuum.

• Be transparent: As employees are asked to make sacrifices for the organization, it is important that they have a sense that decisions are being made rationally and equitably and that the changes will result in increased organizational effectiveness and the eventual betterment of the work environment.

• Enlist supervisors: If middle managers and first-line supervisors are supportive of senior executives, they can foster high levels of confidence in the organization’s leadership and direction. If, on the other hand, middle managers and supervisors signal to employees through their words or actions that they lack faith in organizational leaders, employees’ trust can be expected to decline rapidly.

Work structure:
Faced with challenging economic environments and competitive pressures, many organizations have reduced headcounts without reducing the amount of work to be done, resulting in higher workloads for remaining staff. To promote efficient execution of key tasks, leaders need to ensure that employee efforts are backed by efficient processes, adequate resources and support from co-workers:

• Solicit broad input: While effective job and organization design is part of the solution, so too is harnessing the creative ideas of employees at all levels. To draw out improvement suggestions broadly, organizations need to ensure that leaders and the organization’s overall culture encourage employees to come forward with innovative suggestions for improving the way work is done and reinforce the value of employee creativity by appropriately translating ideas into action.

• Clarify must-win battles: In high-workload environments, leaders must clearly state which personal goals and priorities are critical. Doing so allows employees to focus their efforts on essential, value-added tasks.

• Make sure managers wear “enterprise hats”: In transition environments, some managers and employees may be inclined to hunker down and focus on the achievement of individual or departmental priorities. It is imperative that organizational cultures, performance management systems and hiring and promotion processes reinforce the need to balance local concerns with broader organizational concerns.

Capability:
Faced with a difficult economy, some organizations may be tempted to shift their focus away from training and career development activities. But doing so is a big mistake. Recognizing that personal development and growth are among the most important drivers of engagement and enablement, organizations should instead:

• Be surgical in training and development cost reduction: In tough times, organizations are often forced to make cuts in training budgets. In doing so, however, organizations should identify and protect high-value training offerings and training that is focused on high-potential employees.

• Emphasize the role of line managers: Through coaching and regular performance feedback, supervisors can help employees identify developmental needs and enhance their skills. Supervisors also serve as mentors and sponsors for employees by helping them understand organizational expectations, develop supportive networks and work the informal systems that are a part of every organization.

• Promote equity and fairness: Where promotion opportunities are constrained, it is important that leaders effectively communicate the resources that are available to help employees manage their careers and clarify how promotion decisions are made. These messages build employee trust that development processes are fair and equitable.

Rewards:
In high-workload environments, employees are very sensitive to compensation issues. Acutely aware of all they are contributing, they can be expected to pressure their organizations to balance rewards and contributions. Managing rewards in a downturn requires that organizations:

• Focus on rewards, not just ratings: Many organizations spend an agonizing amount of effort to ensure that managers comply with prescribed distribution curves for performance ratings. But what is the value if the highest performer still receives only marginally more in merit or incentive pay than the average performer? Instead, organizations need to ensure that performance ratings translate into differentiated rewards.

• Clarify reward philosophies: In partnership with WorldatWork, Hay Group recently undertook a study of compensation practices and policies by surveying top compensation managers in member companies. Notably, more than two-thirds of more than 1,200 respondents rated their pay-related communications to be “not effective” or only “marginally effective.” Not surprisingly, these respondents also expressed much less favorable views of the motivational impact of their compensation systems. While 91 percent of respondents indicated that their companies have a pay philosophy, nearly two-thirds indicated that “about half” or “less than half” of employees understand it.

• Leverage tangible and intangible rewards: Especially when compensation budgets are tight, organizations need to think more broadly about the value propositions they are offering to employees—that is, the totality of financial and nonfinancial returns employees can expect based on their contributions.

Conclusion
Organizations that manage dynamics in all four “path to performance” areas successfully during the downturn are likely to foster the engagement and enablement necessary to cope with economic challenges and set the stage for enhanced performance when the economy recovers. When it comes to employee issues, a downturn is not the time to take your eye off the ball. For organizations as for individuals, character is revealed in tough times. The organizations that continue to put people first in tough times will win loyalty for the future.

June 23, 2000January 13, 2020

I’m Important, You’re Important, We’re All Important

When I spent two years interviewing people about their work and workplaces, the concept of “self-worth” came up time and again. “I don’t feel important.” “I’m a worker bee.” “I’m just not valued.”

Worth emerged as such a dominant theme that it’s on my list of the 22 keys to a meaningful workplace.

No, worth can’t be measured like ROI or turnover. But it sure as heck can be increased. Below are some thought-provoking ideas and reminders for nurturing a stronger sense of self-worth among employees in your workplace. I hope you’ll print the list and use it to stir conversation, discovery, and action.

1. Those hallway “hellos” really do matter. Make them count.

2. Someone somewhere in your organization has the answer to that problem you’ve been struggling with. Turn off your computer, and surf the sea of knowledge that surrounds you.

3. We’re obsessed with knowledge, skills, and abilities. Shouldn’t we also tap into our deep interests?

4. Internal competition always produces at least one loser, which is one too many. Especially when we’re the loser.

5. The fancy award dinners and wall plaques aren’t essential. This is: “thank you.”

6. Let’s have a month when everyone is named employee of the month.

7. Co-creation may be the most time-intensive, frustrating, exhausting, and surest way to foster true empowerment and a deep sense of worth.

8. People are moved by compelling missions–not by run-on mission statements.

9. Plenty of organizations have complaint departments, complaint forms, and complaint-resolution personnel. Will someone please create a compliment department?

10. Who should have easy access to all customer input? Easy answer: everyone.

11. Employee attitude surveys are an exercise in tree-killing unless they’re used to generate rich dialogue and focused action. Save a tree: Just say no to employee surveys that are destined for a dusty shelf.

12. Okay, it’s a cliché, but it’s so true: Respect takes years to nurture, but it can be destroyed in seconds.

13. Can you cite one example of a performance evaluation that truly informs, inspires, and energizes?

14. Few people expect high pay. Everyone expects fair pay.

15. For years, we’ve used terms like boss, subordinate, my people, your people, and upper-level. Should we be surprised that some employees feel like second-class workplace citizens?

16. Space matters. If some people are jammed into tiny cubicles while others get cavernous offices, what kind of message is being sent?

17. If you don’t think Dilbert is funny, you need to worry.

18. If you think you’re turning into Dilbert, you really need to worry.

19. If your workplace is a Dilbertesque universe, engage in random acts of positive change management. Focus on the one positive thing you can do instead of the 100 things you can’t do.

20. If you’re unwilling to do a thing about it, stop off at the local office-supply store, buy some resumé paper, and get busy. A better situation awaits–but only if you seek it out and seize it.

Other columns by Tom Terez: