Employee engagement: The key to becoming a top employer

Want to be a top employer? A high level of employee engagement may be the key. But exactly what is employee engagement?

According to a 2004 Hewitt Associates report, Employee Engagement Higher at Double-Digit Growth Companies, engagement is the "state by which individuals are emotionally and intellectually committed to the organization or group." It can be measured by three primary behaviors:

• Positive nature of the statements employees make about the company.
• Level of desire to stay despite other opportunities.
• Efforts employees put forth to contribute to business success.

How can your organization engage employees and keep them committed?

Offer a competitive compensation package
An effective compensation plan is a great way to demonstrate commitment to your employees. According to a 2004 Job Satisfaction Survey conducted by the Society for Human Resource Management (SHRM) and CNN, responding employees rated benefits and compensation/pay as the two most important job satisfaction factors. A competitive remuneration structure benefits your business by ensuring valuable employees are committed to you for the long haul, thereby reducing turnover. Conservative estimates show that hiring, training and creating a productive employee costs a minimum of 700 times the worker's hourly wage!

When determining an appropriate salary for a position, search government sources and surveys, consult industry colleagues, or visit Web sites like www.salary.com. Use this data for developing your salary structure, but only after you've conducted a thorough job analysis to gain a clear sense of the duties, scope and demands of the position. In pure market pricing, compensation is determined by examining the labor market, and then adjusted by the organization's pay philosophy to place value on jobs. In this approach, the work is analyzed by determining baseline knowledge/skill requirements and other defining attributes. The job summary you create will make it simpler to compare the job you're assessing to what's available in the marketplace.

Nurture a positive culture
In a 2003 article in Digital Outpost Magazine, author Jason Miletsky suggests that the following factors contribute to the creation of a positive culture:

• Positive reinforcement.
• Freedom to create.
• Flexible work schedules.
• No micromanaging.
• Letting the passion flow.

Define your company's vision and goals clearly, then work with your employees to determine how to achieve them. If your company hasn't yet established a vision and goals, schedule a brainstorming session with key employees to determine who you are as a company and the direction you want to take. Employees who can exercise creativity and authority in meeting business goals become actively involved in developing strategy, and tend to increase their commitment to the organization.

Communicate
In March 2006, Watson Wyatt reported that shareholder returns for organizations with the most effective communications were 57 percent higher than returns for firms with less effective communications over the past five years. This 2005/2006 Communication ROI Study also found a strong correlation between a company's communications and its employee engagement and retention levels. Are you planning changes that will impact your workplace? Are you in the dark about which HR programs and employment conditions truly matter to your employees? Consult with your employees through frequent well-designed surveys. Create an anonymous suggestion box or email address that employees can use to direct comments, ideas, concerns or questions. You may be surprised by what you learn from these vehicles. Most importantly, respond quickly to the information with sincere statements or actions.

Boost employee spirit and loyalty with a flexible working environment
Consider offering flexible work schedules including compressed work weeks, job-share arrangements, contract work and part-time opportunities. Providing alternative work arrangements for employees can help secure their loyalty.

Set reasonable workload expectations. Empower managers to provide team members with the freedom to attend to important personal issues, and to be respectful of the established work schedule. In the 2004 job satisfaction survey, employees rated "Flexibility to balance work/life issues" as the fifth out of 21 factors most important to their satisfaction.

Foster a learning environment
A business where professional development opportunities are available contributes to a productive and skilled workforce. Encouraging employees to add to their skills helps ensure your company's needs are met when technology is upgraded, the market changes or new business processes are adopted. Whether it's software training, management skills or business-related courses, a professional development program is a worthwhile investment.

Identify team leaders -- key employees who have an in-depth understanding of their role and who can bring out enthusiasm in others. Ask them to assist you in developing staff skills through qualified, direct leadership. Most importantly, bolster your management team through ongoing training and development opportunities to ensure they have both the technical skills and softer people skills to effectively manage a department. Research shows that ineffective management is just as important a factor as poor rate of pay in an employee's decision to leave a company.

Institute a goal-based performance management system
Set your organization and your employees up for success. A formalized performance management program is an excellent means of establishing priorities that support your company's key strategies. Employees who feel connected in their daily jobs to the company's larger goals feel as though they are contributing to something that counts. Rewarding employees based on mutually agreed-to performance plans is a best practice. Use the SMART formula -- Specific, Measurable, Attainable, Relevant, Trackable/Time-based -- to set goals that will serve as work planning guides and provide a fair analysis of an individual's performance. Schedule quarterly performance reviews to assess progress.

To keep your employees engaged, give them opportunities to stretch, grow and develop through innovation, education and challenging projects. In other words, communicate, create a positive environment and reward your employees!

Sources:

1. www.staffinginsights.com
2. Introduction to Market Pricing, Kenneth H. Pritchard, CCP, 2002, www.shrm.org.
3. Find What Workers Want, Pamela Babcock, April 2005, www.shrm.org.
4. Great Places, Inspired Employees, Ann Pomeroy, 2004, www.shrm.org.
5. Study: Top Canadian Employers Engage Employees, David P. Marino-Nachison, 2004, www.shrm.org.
6. Keep Employees in the Loop, Virginia Galt, March 2006, The Globe & Mail.