WE HAVE all heard the adage that a satisfied workforce is more likely to be a productive workforce. But how satisfied should employees be? Two decades ago, organisations that developed HR initiatives to improve staff satisfaction would have been considered 'employers of choice'.
More recently, it became evident that satisfied employees alone would not make the grade - employees had to be motivated and committed. Today, the bar is even higher, and organisations are now faced with the issue of creating a workforce that is 'engaged', with employees who are true advocates for their organisation. In other words, a workforce that will go above and beyond its duty and is fully aligned with the organisation's mission and vision.
So what exactly is an engaged employee? Psychologists would define it as a state where employees achieve performance levels beyond what is required of their stated jobs. Such employees do so because they feel that they have a vested interest in their organisation's success. These employees tend to not only outperform but also speak positively about their organisation, work in the interests of the organisation and tend to be more resilient when faced with short-term dissatisfaction.
Can you imagine what you could achieve with more of these individuals in your organisation? Which begs the question: How do we create more of these star performers, especially in a market where the average tenure of employees hovers around the two-year mark and HR and managers alike are consumed with the seemingly endless task of hiring and re-hiring?
Although the drivers of engagement differ from country to country, Mercer's What's Working survey (an annual study of employee perceptions at companies worldwide) indicates that there are four consistent global drivers of employee engagement:
- Type of work performed and opportunities for development;
- Confidence and trust in leadership;
- Recognition and rewards; and
- Organisational communication.
Organisations with engaged employees allow their staff to grow and develop in their roles and allow for lateral movements within the organisation. Such organisations communicate to their employees the importance of their roles and how they directly contribute to the bigger picture.
It is an essential skill for managers to communicate effectively to employees, particularly in instances where vertical movements are not possible. Being able to communicate the benefits of lateral movements to an individual's career can help employees realise that they are engaged in meaningful work. It can also add value to the organisation, by helping to retain employees who might otherwise leave the company if they believe that a vertical move is the only way to progress in an organisation.
The extent to which managers are skilled in communicating and taking an interest in their employees' careers is a direct determinant of employee engagement.
The extent to which managers are skilled in communicating and taking an interest in their employees' careers is a direct determinant of employee engagement. Managers who fail to allocate their time to do so are, in effect, missing out on an opportunity to foster staff engagement levels and may risk losing their star performers.
Leaders who are effective in engaging their staff tend to help them see how the business strategy relates to various processes, procedures and outcomes. Leaders who act consistently with the values of the organisation are able to gain the respect and trust of their employees. Such leaders tend to be highly engaged themselves and foster engagement among their employees by modelling desired behaviours.
In today's buoyant market there has been anecdotal evidence to suggest that paying higher salaries is the only way to retain top performers. Faced with pressure to stop the leakage of talent, many organisations have succumbed to the temptation to look for immediate short-term solutions such as enticing workers with higher pay and benefits.
However, these are at best stop-gap solutions that may keep employees for the short term. Using pay alone as a motivator is unlikely to be a sustainable strategy in the longer term. The diversity of today's workforce and its differing needs require organisations that want to compete successfully for talent to move beyond a one size fits all reward programme.
Rewards are certainly part of the talent management and engagement equation as long as they are internally fair and externally competitive. However, pay is not the only factor.
Organisations with highly engaged staff use rewards as part of an overall talent management strategy. These organisations also effectively use non-monetary rewards to recognise performance and contributions.
Non-monetary rewards are most effective when they are provided immediately as a motivator to the individual. Managers who effectively use non-monetary rewards tend to know their staff well and what motivates them. Applying a blanket approach for all staff may motivate some but will not capture the hearts and imaginations of all.
Generational factors are likely to play a role in what's important - for example, the Generation Xers (aged 30-42 years) are likely to value work-life balance while those aged 18-29 years are more likely to value opportunities to learn and contribute.
As the workforce becomes increasingly globalised, cultural factors also determine what individuals perceive as rewarding or motivational. For example, those in North America tend to value being treated with respect as most important, while those from Western Europe rate the type of work performed as most important (according to Mercer's What's Working survey).
The fourth global driver of engagement - organisational communication - is another key component of organisations with a highly engaged workforce. In these organisations, communication from management is planned and timely. Upward communication is also encouraged, and managers are effectively trained to deal with negative feedback so that it is resolved effectively rather than left unaddressed to create misunderstanding or unresolved issues that harbour discontent. Thus, an effective manager is able to build understanding and garner cooperation.
Given the global shortage of talent, and the fact that 43 per cent of respondents in Singapore indicated that they would leave their organisation within one year (Mercer's What's Working survey), organisations that approach engagement as a key priority in their talent management strategy place themselves ahead of the pack in creating a more productive, loyal and stable workforce. Understanding what drives your workforce is ultimately the key to driving business performance.
The writer is a senior consultant, Human Capital, Mercer
