Why do Employers Believe that Employee Engagement is Critical to their Success?

With the improvement in HR metrics comes increased competition, additional data and more information available to employees.  The engagement of employees and the reduction of turnover is very important for companies today and in the future.  An engaged workforce will assist companies in remaining competitive and productive.  Key elements of employee engagement are found in three main drivers of success.  These include:

Strong Employee/Management Relations:  An important driver of employee engagement is the individual employee’s relationship to their manger.  Is their manager supportive, an effective coach, honest and represents the high ethical values of the organization?   A manager that embodies these key elements will be a partner with the employee and secure their engagement.

Effective Communication:  Understanding how the company operates and the strategy for the future will allow the employee to become more engaged in the success of the organization by understanding where the company wants to be in the future.  Effective communication includes sharing the business plan and strategy, new products, financial performance and the vision for the future.

Job Satisfaction:  When employees at different levels in the organization enjoy the job and view their role at the company as challenging and contributing to the success of the company engaged employees are more included to give 110%, look for new ideas and be more creative.

Clearly, employee engagement is an important tool for the leaders of companies today to embrace and support.

Every Day is a Performance Review?

As managers of the HR function many of us know that is difficult to have performance management conversations with employees that are struggling in their job.  We want everyone to be successful and will often do everything we can to coach and mentor employees.  These difficult performance conversations are a key responsibility and role Human Resources plays to support management and improve company productivity and performance.  Outlined below are four steps that the HR leader needs to take to support the corporate team and as well act as a resource for the organization.

 

#1 Create Reasonable and Goal Oriented Objectives

 

Businesses are results driven and when we have a performance management discussion with an employee it is important to refer to the job description and goals and objectives that were arrived at the beginning of the performance process.  The job description should be detailed and the goals should be reasonable, attainable and agreed upon by all parties.  The purpose of documenting at the beginning of the process is that helps keep both you and your employee focused and on the right path. The more detailed and specific the job description and the goals and objectives the better the chance of all parties achieving the desired results.

 

#2 Performance Conversation and Discussion

 

 

It is important to remember that this is a conversation between colleagues and not a lecture. The performance discussion is designed to gather information and give advice. Listen to your employee, analyze their responses, refer to the job description, agreed upon goals and objectives and discuss performance deficiencies.  Always maintain a professional and business oriented discussion.  If you want to make sure that you are crafting a positive conversation, then as a manger you need to become aware of your communication style vis-à-vis your employees.  It is important to modify your style to accommodate the setting and purpose of the discussion and be an active listener.  You also need to take notes and attempt to come to a joint understanding of those areas where improvement is desired.

 

#3 Coaching and Training

 

 

One of the key elements in a performance discussion is the belief that the employee is receiving accurate information in a supportive environment. Managers need to make the most of whatever opportunities they have to increase their direct reports' trust at all levels and look for ways to support the struggling staff member. One of the best ways to improve performance is to increase the trust between you and your subordinate.  It is critical to coach the employee, be consistent and look for ways for the employee to be successful.  Occasionally, managers will offer additional training and provide training to improve sub-standard performance.  While additional training is very important is only one tool in a manager’s took kit.  Additional support includes meeting more often to provide immediate feedback with the employee as well as using a problem solving approach as the method to address performance issues.  As a manger and HR professional the idea that every day is a performance review should be the approach utilized.

 

#4 Agree Upon the Strategy

 

 

Because people have different development needs at different stages, managers are advised to discuss the performance plan and agree to the next steps for the future.  The performance plan is not designed as a way to manage a struggling performer out of the organization but rather to give them the tools to ensure their success.  As a manager, and HR leader it is important to be a good listener, be candid and honest and document the agreed upon strategy.

Finally, remember that you cannot “save” everyone. No matter what you do, there are those staff members that do have the skills or knowledge to be successful.  What you can do is give them the tools and time be successful.  Ultimately, it is up the employee to rise to the occasion.

 

Is the Annual Performance Review Still Relevant?

With all of the changes over the past several years and the shift of the Human Resource profession from a tactical to a strategic focus, one of the questions we hear from our client’s is the annual performance review relevant in today’s business environment?  Businesses today are driven by metrics and the HR programs that have been in place for many years need to be evaluated to determine if they are effective.

Given the survey data we believe that the annual performance review is a valuable tool to motivate and ensure high levels of performance.  To support this position we examined our survey data in order to determine what our clients and respondents are saying about this key management responsibility.

 

What is a Performance Review and How Do We Define this Process?

 

The performance review is a mechanism to document an employee’s skill level based upon a clear understanding of the duties and responsibilities of the job and the results expected.  Performance reviews have been viewed as an effective tool for management to help motivate and maximize performance and productivity.  It is also a way to outline career goals and identify expectations for the future.  The performance review if consistently applied across the organization can facilitate a ranking mechanism for management which helps identify high-potential employees as well as provide succession planning services for key positions in the company.

 

Do Employees find Value in the Process?

 

Based upon our employee survey data areas of employee satisfaction with management are varied; however, employees find the management responsibility of conducting the annual performance review very important for ensuring high levels of performance along with the maintenance of superior employee-management relations.  Holding all employees accountable creates a team environment where honest and constructive feedback is valued.  Employees; however, do not view the annual performance review as an isolated event but rather a continuous process.

 

Do Managers find Value in the Process?

 

Our survey data suggests that the need for managers to motivate employees through a progressive performance review process facilitates a stronger organization which allows the employee to grow professionally.  The opportunity to present a strategy for continuous improvement and tie pay to performance along with recognizing excellence on the job creates an environment that is more innovative and creative.  If done properly, managers believe that the annual performance review can retain high performers and lower turnover.  Furthermore, if performance, pay and incentive plans are linked the performance review process will have more significance and importance.

 

What is the Problem with the Annual Performance Review?

 

With managers and employees finding value in the process why are there so many issues with this key Human Resources program?  Managers will often wait to deliver bad news to the employee during the annual performance review rather than addressing any challenges immediately.  This approach creates the environment where the employee can’t alter their behavior or make changes until it brought to their attention and by then it is too late.  Employees will often not want to appear lacking in their performance and when challenges surface they are reluctant to bring any impediments to their success out of fear on not being viewed as knowledgeable.  Both parties want a successful process only the communication process is lacking and not cascading through the organization.

 

What is the Role of HR to make this Process Work?

 

HR’s role is to create an environment where all employees are treated fairly and their manager is viewed as a strong coach and mentor.   Human Resources is also a facilitator for change and thorough a performance management training program this very important management task can remain relevant and a key metric for managing overall talent.  HR professionals will need to devote more time and attention in the future to providing leaders of the organization with the training on how to deliver an honest assessment of their direct reports performance in a timely manner. 

 

What is Employee Engagement and How to Make the Survey Process Successful?

Potential clients will often approach our firm and indicate that they want to conduct an employee survey to find out what the employees are thinking.  The motives of the Human Resource leaders in making this inquiry are based upon a need to discover what is happening in the trenches and take action where necessary.  Even though the HR leaders want to do what is right they often get lost in the process and don’t take the long-term perspective. 

In order to have a successful outcome we recommend that our clients follow a four step process to determine if an employee survey is the most appropriate means of evaluating satisfaction and engagement.  Here are the recommended steps to ensure a successful survey:

1.     Define engagement and inform the employees what this means and how engagement supports the business.  Our definition of engagement is as follows:  “Employee engagement is the relationship between an organization and its employees.  An engaged employee is one who subscribes to the values and goals of the organization and works to ensure success.” Engagement varies by industry and employer and much like a mission statement, engagement should have the support of the organization by being published and marketed through-out the company.

2.     An engagement index is a numerical value that quantifies engaged employees that are aligned and fully support the success of the organization in contrast to those that are disengaged.  Organizations that score high are typically successful and have a dynamic leadership team with high employee engagement.  They also have a clearly defined operational succession plan, a supportive administrative infrastructure, and programs and policies to support enhanced productivity.  These engagement indicators are interdependent – good leaders make good business decisions; progressive compensation and benefits programs attract and retain employees; employee engagement drives income and productivity.  Ensure that the leaders of the organization understand how these values impact productivity and the bottom-line.  Only with the leaders buy-in of an engagement index with the survey process be successful.

3.     An engagement survey is not an isolated event but rather the process to improve employee satisfaction and make your company an employer of choice.  While measurement is key to the program’s success the action planning process will make or break the initiative.  If managers are not held accountable, assume responsibility and be held accountable for improvement this program will not be successful.  HR needs to transition from “running a survey” to supporting the needs of the business by working with key leaders to develop action plans and accountability measures based upon the data collected during the survey process.

4.     Ensure that a process for following-up on the agreed upon action plans is adhered to and becomes part of the company culture.  If a consistent process is not established the survey process will be lost by newer initiatives, a business crisis or change in personnel.  Our experience has shown that if quarterly meetings are scheduled to ensure accountability the process is much more successful.  In addition, follow-up surveys to evaluate trends and long-term employee satisfaction and engagement will support progressive business practices.

In conclusion, employers today face extraordinary challenges with respect to managing the business and at the same time meeting the needs of their employees.  Human Resources leaders need to take the long-term perspective with respect to engagement and the survey process.

 

What is Important to the Employee Today?

One of our key goals over the past year has been to share with our subscriber’s information to assist you in making quality business decisions by providing current information on what is happening in the work environment.  Sharing how progressive companies deal with their challenges will hopefully offer you solutions for the future.  One important area for HR is to determine what is important to the employees.  In reviewing the data three key areas are deemed to be more important that other areas.  These include:

Employee Management Relations

With respect to employee management relations, employees gave this area an importance rating of 84.6 (using a 1 - 100% scale). A great many respondents believe that their manager will listen to their point of view and assist them in growing professionally, are an excellent mentor and coach.   In addition, the survey results indicate that management treats and respects all individuals. The data also suggests that diversity is encouraged and has become a part of the corporate culture.

Fair Compensation

Compensation is valued by employees at an 84.5% rating (using a 1 - 100% scale).  This rating suggests that as business becomes more profitable employers will need to respond to the pressure from their staff to increase merit pay.  If not, companies may see a rise in turnover due to poor pay practices. The data suggests that progressive compensation practices are a key indicator of a productive organization.  Ensuring that a company’s compensation program remains competitive is an important issue that employers will need to address in the near term, especially in circumstances where employees’ workloads and responsibilities have increased due to reduced staffing levels or the realignment of the business. 

Job Satisfaction

The data suggests that over the past several years job satisfaction has become more important to employees.  Enhancing and maintaining this satisfaction with one’s job is critical to retaining talent and keeping employees engaged in the success of the business.  Job Satisfaction is valued by employees at an 84.1% rating (using a 1 - 100% scale).  This rating suggests that management will need to focus on activities that challenge, enrich and support the development of the staff.  This will not only increase job satisfaction but better support both the internal and external the customer.

In conclusion, employers today face extraordinary challenges with respect to managing the business and at the same time meeting the needs of their employees.  Human Resources is up to the challenge and we will continue to be a partner with the business.

For a complete review of functional areas that are important to employees please see the chart below:

 

 

 

 

 

 

 

 

What are the Trends in Employee Management Relations?

One of our key goals over the past year has been to share with our subscriber’s information to assist you in making quality business decisions by providing current information on what is happening in the work environment.  Sharing how progressive companies deal with their challenges will hopefully offer you solutions for the future.

The Human Resource profession is now driven by metrics.  Using metrics provides the professional with an excellent barometer of how satisfied and engaged employees are in the success of the business.   When metrics are utilized and historical HR patterns are revealed executive management can better respond to the challenges that front-line managers are experiencing on the job.  Executive management can then hopefully create an environment where managers develop into leaders and act as change agents for our organizations.  A key goal for Human Resources is to ensure that managers are meeting the needs of their subordinates and leading their departments.  Managers need to be coaches, conduct quality performance reviews that challenge, ensure that a creative and innovative work environment is maintained, hold people accountable and communicate the goals of the organization by sharing the strategy for the future.  These are just a few of the duties and responsibilities of a high-performing manager.  However, how do we measure their successes and challenges?  One of the tools used to evaluate manager performance and effectiveness on the job is the employee survey. 

Based upon our survey data areas of employee satisfaction with management are varied; however, several common positive themes surfaced when examining the data.  In general, employees are satisfied with their jobs.  They understand and appreciate that management is operating the business efficiently, the respondents are treated with respect and their manager is generally a good coach.  The respondents also believe that the work environment is safe.  With respect to the statements focusing on employee management relations, the respondents gave this area a satisfaction rating of 3.89 (out of a 5 point scale) and this indicates moderate levels of satisfaction.  The great majority of employees believe that their manager will listen to their point of view and assist them in growing professionally.   In addition, the survey results indicate that management treats and respects all individuals. The statement, "My manager treats people the same regardless of race, gender, age, ethnicity or other differences" was given a question satisfaction rating of 4.21 or high levels of satisfaction.  The data suggests that diversity is encouraged and has become a part of the corporate culture.  Areas of improvement include eliminating favoritism, management listening more and increasing communication and sharing more information about the challenges and successes of the organization.  The respondents would also like to learn more about the business strategy and how management plans to expand the business.

In our next post we will discuss areas of employee satisfaction with respect to improving employee communication.

How Can HR Metrics Help Me?

We all know that the past couple of years have been very challenging.  Some of us experienced reductions in staff resulting in colleagues losing their positions along with budget cuts and a stronger focus on expense control.  This reevaluation of organizational objectives has led to greater stress on the job along with very difficult Human Resource decisions.  As a profession, we are also learning that understanding our business, partnering with the leaders within our industry and changing our tactics is critical to our remaining relevant.

Once again we need to re-adjust our approach as the paradigm has shifted from retrenchment to expansion.  Preserving our company’s competitive edge by retaining our high performers along with the use of HR metrics will allow us to be better positioned as the recovery continues.  As HR professionals one of our goals for the remainder of 2014 and beyond will be to retain talent by looking for alternative ways to respond to the current business climate, offer our employees value and provide management with the support to make quality business decisions.

The Human Resource profession over the past decade has become very sophisticated by utilizing metrics to examine employee trends in order to better anticipate future challenges and opportunities.  When we use HR metrics and evaluate historical patterns we are better able to respond to the challenges we face on the job.  A key challenge is determining if our reward and benefit dollars are being used wisely.  Metrics are a common measurement across all professions and are used as a way to retain, challenge talent and hold people accountable.  The analysis and subsequent data following an employee survey is a key tool in determining employee satisfaction, engagement and management effectiveness.  As companies expand, talent retention is often critical to its very survival.  Understanding and responding to these employees’ concerns and questions are important components in ensuring that success.

 

In the past, our clients have often requested that we create norms that would provide a benchmark against their industry or region in the country. Today, however, we have begun to see a shift from benchmarking within one's own industry toward benchmarking against other “best places to work”. This is particularly true with regard to benchmarking in the areas of organizational climate, culture, engagement, management and leadership.  Our review, as outlined below is based on data collected from over 60,000+ respondents and from organizations representing a broad cross-section of industries and regions of the country.

Today, employees are satisfied with their jobs.  Employees appreciate that management is operating the business efficiently, often under conditions of uncertainty and with limited resources.  Employees also believe that the work environment is safe and opportunities for advancement will occur as long as performance is maintained.  Key challenges for the future include:

 

n  Maintaining effective employee management relations

n  Ensuring that a team environment is supported and encouraged

n  Maintaining a progressive compensation program

n  Supporting a leadership team that is decisive

n  Opportunities for career advancement

n  Benefit programs that offer security and protection for the employee and eligible dependents

 Illustrated below is a chart summarizing the data:

 

 

Over the next several months we will be sharing data with our subscriber’s specific data with respect to employee satisfaction and engagement.  Our goal by publishing this data is to assist our client’s in gaining more knowledge about the workforce which will enable them to make sound business decisions.  In our next post we will discuss areas of employee satisfaction and challenges for the future with respect to progressive employee management relations.