Beyond employee satisfaction: Engaging your workforce for organizational success
From the August 2008 issue of Ceridian Connection
Like the familiar lyrics in the old Rolling Stones song "Satisfaction," many of us believe that satisfaction is a worthy goal in life. When we think of job satisfaction, we often view it as the gauge of a happy employee. While satisfied employees have their merits -- they usually do a good job -- moving them beyond satisfaction to engagement can be the key driver in creating an organization of high performers.
However, according to the 2007-2008 Towers Perrin Global Workforce study, only 21 percent of the nearly 90,000 respondents worldwide are engaged in their work -- meaning they are willing to go the extra mile to help their companies succeed. What is perhaps more troubling is that 38 percent of the respondents are partly to fully disengaged. The result is an "engagement gap" between what companies need and what their people actually want to invest. It also has an impact on companies' effectiveness in channeling this effort to enhance performance.
"Satisfaction gets you good employee performance, but engagement gets you great employee performance," explains Terry Deas, Ceridian's director for diversity and inclusion. "One of the reasons that organizations are not getting engagement from their employees is because they are not taking the steps to connect with them. The more an employee feels connected and involved in the work, the more he or she will give you."
Would you recommend us?
Net promoter scores (NPS) can be another link to determine how engaged an organization's employees are. Companies use NPS to measure customer loyalty by asking one simple question: "On a scale of 0 to 10, how likely is it that you would recommend us to your friends and colleagues?" These scores are becoming a powerful and popular way to measure customer loyalty, drive compensation and flag troubled products. With NPS being a key indicator of the customer relationship, an engaged workforce is the icing on the cake when it comes to delivering above-and-beyond customer service.
"If you have employees who feel disengaged, they may not present themselves well on the phone or in person with a customer," says Deas. "For example, a disengaged employee may submit an online request for technical support to help the customer, whereas an engaged employee might get up from his or her desk and go directly to technical support to help find an immediate solution." Deas points out that high-performing organizations are more likely to have high net promoter scores, an indicator that their employees are delivering excellence in customer service.
Closing the engagement gap
The global workforce study found that companies with the highest levels of employee engagement achieve better financial results and are more successful in retaining their most valued employees than companies with lower levels of engagement. The study revealed the following key insights that can help management to bridge the gap in employee engagement:
"Too often, a company will make high-level strategic decisions without the input of all those involved," Deas says. "A wise leader engages all the stakeholders and invites them to be a part of the solution. As a result of their involvement, employees feel validated, valued and -- ultimately -- become more engaged."
Deas also shares the three categories of employees that typically are found within an organization:
The companies with engaged workforces - those whose employees are navigators and creators -- have the potential to significantly improve employee retention, productivity and loyalty. In addition, they recognize that engagement is a key link to customer satisfaction, company reputation and overall stakeholder value.
"Companies that want to make the leap to becoming a high-performing organization must set the agenda for employee engagement and commitment," Deas says. "In today's environment, that is the key to maintaining a competitive edge and driving business success."
Like the familiar lyrics in the old Rolling Stones song "Satisfaction," many of us believe that satisfaction is a worthy goal in life. When we think of job satisfaction, we often view it as the gauge of a happy employee. While satisfied employees have their merits -- they usually do a good job -- moving them beyond satisfaction to engagement can be the key driver in creating an organization of high performers.
However, according to the 2007-2008 Towers Perrin Global Workforce study, only 21 percent of the nearly 90,000 respondents worldwide are engaged in their work -- meaning they are willing to go the extra mile to help their companies succeed. What is perhaps more troubling is that 38 percent of the respondents are partly to fully disengaged. The result is an "engagement gap" between what companies need and what their people actually want to invest. It also has an impact on companies' effectiveness in channeling this effort to enhance performance.
"Satisfaction gets you good employee performance, but engagement gets you great employee performance," explains Terry Deas, Ceridian's director for diversity and inclusion. "One of the reasons that organizations are not getting engagement from their employees is because they are not taking the steps to connect with them. The more an employee feels connected and involved in the work, the more he or she will give you."
Would you recommend us?
Net promoter scores (NPS) can be another link to determine how engaged an organization's employees are. Companies use NPS to measure customer loyalty by asking one simple question: "On a scale of 0 to 10, how likely is it that you would recommend us to your friends and colleagues?" These scores are becoming a powerful and popular way to measure customer loyalty, drive compensation and flag troubled products. With NPS being a key indicator of the customer relationship, an engaged workforce is the icing on the cake when it comes to delivering above-and-beyond customer service.
"If you have employees who feel disengaged, they may not present themselves well on the phone or in person with a customer," says Deas. "For example, a disengaged employee may submit an online request for technical support to help the customer, whereas an engaged employee might get up from his or her desk and go directly to technical support to help find an immediate solution." Deas points out that high-performing organizations are more likely to have high net promoter scores, an indicator that their employees are delivering excellence in customer service.
Closing the engagement gap
The global workforce study found that companies with the highest levels of employee engagement achieve better financial results and are more successful in retaining their most valued employees than companies with lower levels of engagement. The study revealed the following key insights that can help management to bridge the gap in employee engagement:
- The organization has the most powerful influence on employee engagement.
- There is no single "right" model for a high-performance culture; the most effective approach depends on an organization's strategic priorities.
- Employees are eager to invest more to help the company succeed, but want to understand what is in it for them.
- Senior leaders need to adopt a more inspirational and engaging style of leadership to help drive higher engagement.
- Companies need to understand their employees as well as they understand their customers to design a work environment and experience that will drive higher engagement and performance.
"Too often, a company will make high-level strategic decisions without the input of all those involved," Deas says. "A wise leader engages all the stakeholders and invites them to be a part of the solution. As a result of their involvement, employees feel validated, valued and -- ultimately -- become more engaged."
Deas also shares the three categories of employees that typically are found within an organization:
- Victims -- the destroyers who play the "blame game" and have no accountability for their actions
- Equalizers/survivors -- employees who are satisfied and do the job well, but just survive rather than going above and beyond for the company or their customers
- Navigators/creators -- employees who are high performers and step in when the customer needs something, giving excellence and performing their best work
The companies with engaged workforces - those whose employees are navigators and creators -- have the potential to significantly improve employee retention, productivity and loyalty. In addition, they recognize that engagement is a key link to customer satisfaction, company reputation and overall stakeholder value.
"Companies that want to make the leap to becoming a high-performing organization must set the agenda for employee engagement and commitment," Deas says. "In today's environment, that is the key to maintaining a competitive edge and driving business success."
