ADITYA PRADHAN DHIRAJ AGARWAL MEGHA BANSAL SAKET ANAND SURUCHI GOYAL
What is employee engagement???
y Employee engagement is a complex equation that reflects
each individual¶s unique, personal relationship with work. The term means different things to different organizations. Some equate it with job satisfaction, some by gauging employees emotional commitment to their organization but a conclusive nature and definition of the same cannot be obtained. y It can also be defined as aligning employees¶ values, goals, and aspirations with those of the organization in the best method for achieving the sustainable employee engagement requires for an organization to reach its goals.
y Full engagement hence is an alignment of these two factors
simultaneously: 1. Maximum job satisfaction (³I like my work & do it well´) 2.Maximum job contribution (³I help ACHIEVE the goals of my organization´) y Inorder to achieve their objectives, organizations have made engagement an ongoing priority and a crucial management tool in today¶s scenario. y Engagement of people is necessary because they are not just committed towards their work or simply passionate or proud: they have a line-ofslight on their future and on the organization¶s mission and goals. y They are enthused and in gear using their talents and discretionary effort to make a difference in their employer¶s quest for sustainable business success.
The above chart depicts an integration between an individual and his organization wherein the success of the organization is due to the maximum satisfaction attained by the individual in his job depending on the work environment through maximum contribution and engagement.
uk Disengaged Partially Engaged Engaged
The I ia ce ari - the le el f ise a e e le s r ass e er ther c tr . This ea s that effecti e ea s ha e t ee e l e the r a izati t i crease e l ee e a e e t. i ilarl the le el f e a e e t is the least showi issatisfaction of the wor ing class.
Employee Engagement-The sole performance analyst???
y Engagement has been hailed as the secret ingredient to competitive advantage and organizational success. It is an intuitive concept: commitment, alignment and passion from employees are good for business. However the enthusiasm and concept of employee engagement is in the trial where many CEO'S want more proof that this people strategy pays off as a business driver. Some of the experts also reciprocate the same feeling as:
y The chicken ±egg question:
Experts like John Gibbsons point out that most studies indicate a correlation between high engagement and performance but then does a spike in organization performance is the cause of engagement improvement: there is no answer.
y A virtuous circle
Perhaps it is easier to be engaged in a team which is likely to win, but we think is enough anecdotal evidence that organizational success depends on having skilled employees who do more than just show up each day. If nothing else, consider the potential cost of disengagement since study of much high profile corporate show that calamities often point to how employees with low morale, failing to feel engaged enough to protect their own company stood on the sidelines.
Importance of Employee Engagement
Despite the prevailing uncertainty we can put out the following points supported by researched undertaken to depict the positive correlation between higher employee engagement and business success:Towers Perrin (ISR) found that high engagement firms experienced an EPS (earning per share) growth rate of 28% compared to an 11.2% decline for low engagement firms. Electronics retailer best buy reports that stores with increase in employee engagement by a 10th of a point we see a $100000 increase in sales for the year. A manpower survey of call centre customers and employees reports that centers with high employee satisfaction also has higher customer satisfaction and vice versa. A SHRM report describes the impact of employee engagement at Malson Coors on several fronts, estimating that by strengthening employee engagement the company saved $1721760 in one year.
Drivers of Contribution
y The key drivers of employee engagement vary widely depending upon their perception, need and priorities. Researchers have found that about 26% of the respondents when asked what would most impact their performance: it was ³more resources´ followed by ³greater clarity about what the organization needs me to do and why´ and ³regular, specific feedback about how I am doing´.
The intensity of engagement brings about various proportion and perceptions of their influential factors of employee engagement and performance as shown by the graph.
100% 90% 80% 70% 60% 50% 0% 30% 20% 10% 0% CRATION OF CLARITY ABOUT MY WORK PREFERENCES AND CAREER GOALS CREATION OF CLARITY ABOUT WHAT THE ORGANISATION WHAT ME TO DO IMPROVED COPERATION FROM COWORKERS CAREER DEVELOPMENT OPPORTUNITIES MORE OPPORTUNITIES TO DO WHAT I DO BEST MORE SAY IN HOW THE WORK IS TO BE DONE A BETTER RELATIONSHIP WITH MANAGER MORE CHALLENGING WORK
Graph depicts the proportion of criteria attached for job satisfaction by various employee.
MYTH VS REALITY
HR people who think their holy grail is increasing their employee engagement score, are sorely mistaken. Research conducted in the past decade has shown that employee engagement has declined significantly in most industries. y Laurie Bassi and Dan McMurrer of McBassi and Company, in their article argue that "since the drivers of employee engagement are not identical to the drivers of business results, attempting to maximize employee engagement can actually take an organization in the wrong direction." y Bassi and McMurrer recommend engagement strategies be replaced with human capital strategies by determining what are the human drivers of business results which are critical to all organizations in all contexts, and which drivers can actually be shown to improve human performances. y In a study for the American Psychological Association, researchers James Harter, Frank Schmidt and Corey Keyes concluded in a report that productivity is enhanced in workplaces where there are daily occurrences that bring about joy, interest, and care that lead to high level of bonding of individuals to each other, their work and their organization. Employee engagement is important, no doubt. However what it does is create energy for discretionary effort by the employees for the organization.
y Myth 1: Compensation is the Key Driver of Employee Engagement
Reality: Compensation is the most important reason why an employee chooses one firm over another. However, as long as compensation is within an appropriate market range, additional compensation is not one of the main drivers of employee engagement. y Myth 2: Most High Performers Are High-Potential Employees Reality: While almost all high-potential employees are highperforming, the reverse is not true. High-potential employees must have: a) the skills to be successful at a higher level, b) the aspiration to be promoted several times, and c) the desire for a long-term career in the company. y Myth 3: The Performance Review Is the Most Important Part of the Review Process Reality: What matters more than the formal review is what happens in between reviews. The informal feedback that employees receive is actually much more important (and timely) in improving employee performance than feedback from the formal review process.
y Myth 4: The Best Business Leaders Are Great At Inspiring
Employees Reality: While inspirational leaders do get better results than those that aren t, the business leaders who consistently get the best results are those who are better at resource allocation at ensuring the right employees have the right resources to do their jobs. y Myth 5: Employees With Different Jobs Want Different Employee Value Propositions(EVP) Reality: While there are differences between employees in different functional areas, EVP varies far more across different regions. y Myth 6: Firms Must Buy or Build Business Leaders to Improve Leadership Performance Reality: Most business leaders already have the skills to be successful in a variety of situations. The challenge that most have is in determining how to apply their capabilities to ever evolving situations.
ENGAGING EMPLOYEE IN AN ORGANIZATION
Not every effort mentioned above is a myth. There is no limit to what an organization can do at the macro and micro level to improve employment engagement. At macro level, provision of resources, tools and the overall workplace environment is needed to support engagement. At the micro level employees with their manager¶s help need to establish a thriving personal connection with their work and carve out a satisfying future in the organization. There is no one magic engagement pill, only multi faceted ongoing approaches work best. But still the following can be pointed out as the most important tips for engaging the employee in an organization: Reflect and charge: The managers should know their level of engagement and thus influence others. Hire engage ±able team members: To recruit people who want to fit rather than trying to fit the people. Earn trust every day: Trust provides the essential foundation for any kind of development and understanding. So, the organization must preach what they say and do in return. Stress employee ownership: State clearly the visions of personal success to the employees and provide guidance, remove barriers of communication and help them fulfill work.
y y y
y Find out where the bus is going and remind people of the destination: Appraisal
and feedback would help employee realize their roles and priorities. y Talk and listen more: Communication is often one way where clarity is compromised. So to avoid misunderstandings, innovation of new ideas, feedback etc develop a strong and transparent system of communication y Match projects, passion and proficiency: Every person comes to work with a different combination of values, talents and goals which they are looking to satisfy on the job. So helping them connect what is important to them with what is important for the organization, a positive impact can be made regarding job satisfaction, commitment and contribution. y Tailoring of coaching strategies: Since ,every person working in the organization have a different level of psychological and physical characters a same set of rules cannot be followed to all the members. So depending upon the diversity, the organization should customize their strategies so that every employee is catered properly deriving the best out of them.
Hiring and retaining employees aren t the focus now a days. If the skilled resources aren t focused on the right things and motivated to give their best, the organization ends up far from their goals. So it is necessary that the employees are engaged and portray high performance for the achievement of personal and organizations success as a whole.