The Importance of Employee Engagement

January 19th, 2010

Blog: Moira Cole, Recruiting Coordinator

Having a happy employee doesn’t necessarily mean that you have an engaged employee, after all an employee can be perfectly happy doing nothing. According to a recent survey (Gallup, 2006), less than 30% of employees are actively engaged in their jobs. Employees who are disengaged can present problems to their employers that are twofold. Not only are they just putting in time and sleepwalking through their day, they are also projecting their unhappiness through negative actions or comments, thereby undermining the accomplishments of their engaged coworkers.

Research has shown that employee engagement is connected to company income. Companies with highly engaged employees have reported a 19.2% average growth in operating income; while those with an unengaged workforce saw a 32.7% average decrease in operating income. Therefore, employee engagement does not merely correlate with bottom line results - it drives results.

So what exactly is employee engagement? According to research (Gibbons, 2006), “Employee Engagement is a heightened emotional and intellectual connection that an employee has for his or her organization, manager, or co-workers that, in turn, influence him/her to apply additional discretionary effort to his/her work“. Therefore, it is a critical task for leaders to create a climate that enables employees to unleash their full potential.

Most studies have found that there is increased participation on the part of employees when there is an opportunity to interact with leadership, especially if the employees have an ability to co-create their work. When participants in a recent survey were asked about when they were most excited about their work, they indicated that growth and development opportunities were present, teamwork was high, and deadlines & goals we consistently met as a result. Also, employees who felt they had the opportunity to contribute to the team, through unique talents, and in a way that impacts the company, were more engaged than those who felt otherwise. It’s also interesting to note that when an organization provides goods or services that benefit the greater good of the community, they rank high by employees who are looking for suitable career choices.

A report from the University of Western Ontario, (Seijits & Crim, 2006) cites the Ten C’s of Employee Engagement. These are paraphrased below.

1. Connect: If an organization appears to be flat (even when it is not) employees feel more valued and contribute more.

2. Career: Leaders need to be taught. Organizations need to determine what leadership culture they want and develop programs that reflect this unique purpose and the aligning values. Organizations should have opportunities for employees to step in and out of leadership roles which would promote success and not failure.

3. Clarity: Leaders must communicate a clear vision. Clarity about what the organization stands for, what it wants to achieve, and how people can contribute to the organization’s success is not always evident.

4. Convey: Good leaders establish processes and procedures that help people master important tasks and facilitate goal achievement. They clarify their expectations about employees and provide feedback on their functioning in the organization.

5. Congratulate: Exceptional leaders give recognition, and they do so a lot; they coach and convey.

6. Contribute: Employee’s understanding of the connection between their work and the strategic objectives of the company has a positive impact on job performance. Good leaders help people see and feel how they are contributing to the organization’s success and future.

7. Control: Employees often have reduced stress when they feel they are given the opportunity to participate in decision making. This also creates trust and a culture where people want to take ownership of problems and their solutions.

8. Collaborate: Great leaders are team builders; they create an environment that fosters trust and collaboration.

9. Credibility: People want to be proud of their jobs, their performance, and their organization. Leaders should strive to maintain a company’s reputation and demonstrate high ethical standards.

10. Confidence: Good leaders help create confidence in a company by being exemplars of high ethical and performance standards.

All of this surrounds having positive relationships. If an organization appears to be flat (even when it is not) employees feel more valued and contribute more. In response to this finding, companies need to focus on their leadership programs instead of just simply promoting managers. Time and time again mistakes are made by promoting someone into a management role but not giving them the tools to be a leader. More common than not the result of this practice is the termination of the new manager or demotion. This does not nurture a positive and trusting environment.

Leaders need to be taught. Organizations need to determine what leadership culture they want and develop programs that reflect this unique purpose and the aligning values (DePree, 2004). Leadership programs need to incorporate a 360 degree assessment tool that starts at the top. Organizations should have opportunities for employees to step in and out of leadership roles which would promote success and not failure. This practice would also open up numerous succession planning opportunities based on past performance. Organizations should change their recruitment practices so that they align directly with their leadership philosophy, recruiting to character and values alignment not just competency.

Works Cited

DePree, M. (2004). Leadership is an Art. Broadway Business.

Gallop. (2006). Employment Engagement Index. Gallup Management Journal.

Gibbons, J. M. (2006). Employee Engagement A Review of Current Research and Its Implications. New York: The Conference Board New York, 18 pages.

Seijits, G., & Crim, D. (2006). Ten C’s of Employee Engagement. London: Ivey Business Journal, University of Western Ontario.

Additional information gathered from Thesis “Enhancing Employee Engagement, 2009″. Yvonne Thompson, MA, CHRP

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