Sunday, July 21, 2013

The End (Performance) that Justifies the Means (Employee Engagement)

The End (Performance) that Justifies the Means (Employee Engagement)
What outcomes leaders can expect when they invest in employee engagement

 
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Recently, I’ve made the case that employee engagement can be defined and measured as an attitude regarding one’s work in one’s organization comprising feelings of energy, dedication and absorption; a perception of empowerment, and motivation to act in the service of the organization’s goals. I’ve argued that it’s helpful to draw lines around the idea of employee engagement because the better you define it, the better you can measure it; and the better you can measure it, the more closely you can manage it.

Of course, in reality, employee engagement is for most companies, a preferred means to a end, and not an end in itself. That desired outcome is business performance. But what performance indicators does engagement drive, and how?

According to many agencies specializing in employee engagement including AON Hewett and Gallup, employee engagement leads to: profitability through productivity, sales, customer satisfaction, customer loyalty, customer-focus, safety, and employee retention. The interviewees I spoke with during my dissertation research concurred, and added: going the extra mile, speaking highly of the company, collaboration, staying late, putting in extra hours, assisting colleagues, sharing knowledge, participating in organizational dialogue, and more. My dissertation research demonstrated that employee engagement is correlated to proactive problem-solving, creativity, productivity, intention to stay with an organization and likelihood of recommending one’s organization as an employer.

What’s clear from the above is that an investment in improving employee engagement is likely to drive both individual-level and firm level benefits. And the more that leadership removes barriers that stand between employees and performance, the better the results.

One of the most interesting findings of my research is that different aspects of employee engagement as I define it above are of different importance, depending upon the outcome in relationship to which you position engagement. For example, absorption, or being lost in ones work such that time passes quickly, doesn’t much effect the likelihood of recommending the firm as an employer, but it plays a big role in creativity.

What this tells us is that in many ways, the potential of understanding employee engagement is still untapped. If we can identify the degree to which different aspects of engagement effect desired outcomes, we can design interventions that improve the most important component of engagement to that outcome. That means more efficient and effective interventions. And what business leader doesn’t want to know that they are getting the very best return on their investment in employee engagement?

5 comments:

Unknown said...

You are right Hazen. Employers institute engagement programs for a variety of reasons While many people seek to measure the degree of engagement, they seldom attempt to put a dollar value on each of its various benefits. Having worked on computing the ROI of Engaged Security programs, I can tell you that the value of creativity, particularly the type of creativity that can result in paradigm shifts eclipses, all other benefits combined.

Hazen Witemeyer said...

Thanks Thomas for your comment! I would love to connect and learn more about your work around creativity in Engaged Security programs -- it sounds very aligned with my ongoing research and professional interests.

Unknown said...

Hazen- more great insights. but you got me thinking in a different direction (and fueled my penchant for contrarianism) with your comment in the first paragraph "...the better you can measure it, the more closely you can manage it." I wonder- can you MANAGE employee engagement? "Managing" implies directing, manipulating, and controlling to some extent.

I'm currently reading a book I had to put aside when I started our EDB program titled "The Future of Management" by Gary Hamel. In it he expresses the need for a new management paradigm. In order to companies to compete, the need to innovate their management methods and structures. I believe your take on employee engagement follows this path, but if we try to "manage" employee engagement aren't we falling into the same overly used management ruts.

Instead, should we, as managers, work to create environments that let employees naturally engage. Create the environment where "flow" happens and is sustained. Hamel cites companies like Goggle, W.L. Gore, and Whole Foods, who don't have overt "employee engagement" programs, but rather are structured from top to bottom (including the hiring process) to naturally engage. A common philosophical action in these companies, is that employees are allowed to choose who they work for and what projects they work on. The traditional management practices are subverted with choice and freedom at the lowest levels. Engagement happens because it is part of the structure, not because it is measured and managed.

Just my 2-cent perspective.

Hazen Witemeyer said...

Hi Ted,

Thought provoking comments, as always. And I'm glad to see your contrarian self again ;-).

You may be right to pick on my semantics about "managing" engagement: what is probably, as you've alluded to, the more accurate statement is we can better manage the conditions that support engagement, and better manage the conditions that help direct engagement towards the most desirable business outcomes in an environment of resource constraints.

Part of the beauty of the engagement paradigm (at least as I see it) is that it is NOT mechanistic. It's about tapping into the potential that our people possess as individuals in their roles. It's about building healthy and nurturing relationships in which people and businesses flourish.

I'll look Hamel up again myself - thanks for the pointer!

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