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We all know about the Gallup Q12 methodology. But how many people have ever heard of the CIPD (The Chartered Institute of Personnel and Development) in the United Kingdom? If you haven’t and you are serious about driving employee engagement at your company, you may want to have a look.
In 2006, the CIPD outlined that employee engagement is actually comprised of three components:This breakdown provides a very interesting way to look at engagement and the behaviours that feed into engagement and how they impact on overall engagement levels.
What are the components of Cognitive Engagement?
When CIPD measured cognitive engagement levels they posed four questions to employees:The Results:
Only 31 per cent of respondents were found to be cognitively engaged and 22 per cent were disengaged. This is the area that scored the lowest in terms the percentage of respondents that were engaged and committed.
What are the components of Emotional Engagement?
When CIPD measured emotional engagement they posed four questions to employees:The Results:
58 per cent of respondents were found to be emotionally engaged with their work and only 6% are emotionally disengaged.
What are the components of Physical Engagement?
When CIPD measured physical engagement they posed five questions to employees:The Results:
38 per cent of respondents were found to be physically engaged with their work, whilst 11% are physically disengaged.
The key to driving employee engagement, regardless of the questions asked, is how the results are taken forward and put into action.
Do you know how many of your employees are willing to be advocates for your business, are committed to staying with you, and are motivated to contribute their best to your organization every day? Could you map how many of your employees are high performers?
ANZ Bank in Australia can. According to the ANZ website, global human resources firm, Hewitt Associates, estimates that every 'engaged' employee is worth about $5,000 each year in additional profit. Its research shows that companies that score 60% or higher have an average five-year shareholder return of 20.2%.
Every year, ANZ conducts an annual Engagement and Culture Survey that measures progress towards engaging their people and building a values-driven culture. The Survey is conducted with Hewitt Associates and Cultural Transformation Tools and provides an opportunity for all ANZ employees to have their say. The results give the Bank insight into their employees’ views on what it’s like to work at ANZ, as well as issues ranging from leadership to corporate responsibility to individual opportunities for career development and progression.What does ANZ do with the results?
The Bank identifies specific actions that can be taken to improve ANZ’s levels of engagement and culture, and subsequently, employees’ experience at work
How many companies are truly measuring employee engagement levels? If your company isn’t doing it – maybe you should point them to what ANZ in Australia is doing!
Google tops Fortune’s “100 Best Companies To Work For” 2008 list. That’s number one for the second year running and it seems to me that you can’t be number one unless you have a happy and engaged workforce.
After all, as part of the selection procedure, 400 employees (selected at random) had to answer a 57-question survey that covered the gamut from job satisfaction to management attitudes.
So how does Google do it?
Is it the perks? There is no denying that the perks are amazing – from the stock options, to the opportunity to spend 20 per cent of your time working on special projects, the free gym, laundry, car wash, day care, concierge and free delectable food and gourmet snacks, to name just a few are all very attractive.
But perks alone don’t create a great company. So what is it that makes Google dominate?At the Employee Factor, we think that Google’s success can be attributed to a corporate philosophy and culture that permeates the organization and engages and inspires all who come into contact with the company.After a quick Google search, we hit upon the Google Jobs website to find some insight and it was here that we found a list that confirmed our belief that it is the culture that sets this company apart.
The Top 10 Reasons To Work At GoogleNow, that’s one engaging list. Now, who wouldn’t want to work at Google!
“If you’ve got 16 employees, at least two are turkeys.” Jack Welch
The latest research from Hudson Recruitment shows that UK business leaders do want to dismiss an annual quota of underperforming staff. The findings reveal that 61% of senior UK bosses believe that a fixed target for annual staff dismissal is healthy.
According to the study, British business leaders acknowledged that there were distinct advantages to deliberately releasing average or below-average performers.While it was agreed that there are risks to this strategy, the problems associated with inaction may outweigh the risks.
Are you in favor of culling? Let us know your thoughts.
Think about it for a moment – how many poor performers exist in your organization? Do you know who they are? How does it impact your morale and those around you? How effective is your organization at dealing with poor performers?
Addressing Poor Performance is Non-Negotiable – hold your Managers accountable for handling poor performers. Help them to understand the impact that poor performers have on the morale and motivation of all of your employees.
Remember, everyone knows who your poor performers are. If you, as a company, are not willing to address poor performance issues – you risk losing your best performers and creating a safe haven for those that threaten your long-term profitability.
How many of you really feel informed about what your company is doing? How many of you really believe that your voice is being heard? That your suggestions are taken seriously? How many companies state that they value your opinion, yet they fail to really listen or action any of your comments, suggestions or feedback? We think far too many companies suffer from broken communication promises. Good communication builds employee commitment. Good communication is the foundation upon which trust is built.
So what can a company do to ensure that it is building commitment – every day, in every interaction with employees?
Provide employees with information about what is going on – how many employees find out about what the company is doing by hearing a company rumor or seeing it on the front page of the newspaper? How many of your employees really understand the link between their job and the overall direction and success of the company?
Starbucks coffee for $1.00? Starbucks is looking to regain its customer focus
Now, I’m a Grande Mild girl so Starbucks coffee for $1.00 will suit me just fine. But, I think the reason why this discounted, perfectly-roasted and Fair Trade coffee headline caught my attention is that Starbucks admits to losing something that the whole Starbucks experience is built on: the customer.
Howard Schultz, newly returned as CEO, has been quoted as saying he believes the company's main problem was that it lost its focus on customers in recent years as it concentrated on growth. Right on. I blogged about this very issue in a November 2007 posting on our site. Customer focus, people. Starbucks lost its customer focus. If it can happen to them, it can happen to you.With the U.S. recession in full blown force – don’t believe those who say it might happen, it’s here and it’s your customer that will keep you afloat. If your customer can’t live without you and continues to spend you will weather the storm.
So the question dear reader, manager, COO, CEO and Chairman is: How is your customer focus? What are you doing to engage your employees to ensure you don’t lose it?
A Telus employee did NOT use his best judgment: To tell or not to tell.
We are in complete agreement with the Tribune’s new and only rule for employee conduct: Rule #1: Use your best judgment. A rule to live by, surely. Yesterday, as I was sipping my coffee, I discovered this little tidbit in the January 23 edition of The Metro newspaper available at all Toronto subway stations.
The headline reads: Overpay causes office discord. The article is from a regularly featured column about the law entitled: Employment Law 101 by Daniel Lublin.Bad judgment emanated from this story in spades.So here’s the not-using-your-best-judgment story: A Telus employee is sent overseas to work on a project. While he is working overseas, the company pays him an extra supplement called a foreign allowance. The job is completed and the employee returns to Canada and continues to work for Telus in B.C.
You can see where this story is going.
The foreign allowance is never removed from his pay. For four years, this employee received the boost of $25,000 per year and he never says a word. Using your best judgment? I think not. Well, you can guess what happens. Telus’s accounting department finally catches the error and demands the money back - that would be a total of $100,000 – and starts to deduct the money from his pay. Ouch!The employee sues Telus and Telus fires the employee for cause.
Messy indeed and an obvious case of not using your best judgment.
The employee knew that he was not entitled to receive the foreign allowance in perpetuity despite his denials and the B.C. court agreed. Not only does he have to pay back the $100,000, he also has to pick up Telus’s legal costs.The moral of this cautionary tale: if you don’t use your best judgment, be prepared to pay.
We have heard it so many times – we are all suffering from information overload. Employees are overwhelmed both internally and externally.
Internally:
There is just too much information!
So if we all know this – why are so FEW companies doing anything about it? Why do companies continue to mass produce information and place it in boring formats like binders, circulars or procedural documents? The best companies do get it. They understand the importance of not only creating segmented, relevant and engaging information and marketing materials for their customers, but for their employees as well.
So what can you do to engage your employees through communication?
Let us know what you would add….
The Tribune’s new employee handbook. Why? Because it reflects the company’s new culture – a culture that is led by an Executive that prides himself on being blunt and innovative. Well, there is no doubt that the employee handbook is blunt and engaging, but it is certainly not innovative. Nordstrom led the way with the one rule policy ages ago – Nordstrom’s Rule – Use good judgment in all situations. But, few other companies have been so bold. That is why we like the Tribune’s move to the one rule policy.The handbook starts by outlining the Rules.
The handbook starts by highlightings "that yes – that’s it. That is the one hard and fast rule. Unless a serious mistake was made when you were hired, you have pretty good judgment."
We like the way this handbook is laid out. It certainly would capture an employee’s attention. And in a period when employees are overloaded with policies and procedures – this may just be the way to go. What is innovative is the Handbooks' alignment to fostering the company’s creative culture. Here is an example of some of the highlights from the Handbook:These are just samples of some of the guidelines in the Handbook. What we like is that they too the point, innovative and provocative.
We wonder what the employees of the Tribune REALLY think of the new Employee Handbook…
Employees can experience disconnects between what has been promised to them and what they experience. This kind of disconnect can set in motion a downward spiral that may be difficult to pull out from.
Building an employee experience that creates engaged and committed employees and customers is the key to long-term success. What do we mean by an employee experience?
An employee experience is a set of beliefs that employees have about a company. It includes the tangibles such as salary and benefits, but also intangibles such as the essence of a company’s culture, ethics, reputation, opportunities for learning, reward and recognition programs, products and services, and the way it values its workers. The employee experience is ultimately what retains and engages employees.
The employee experience must build pride and loyalty. It must be authentic and it must mirror the customer experience. By mirroring the customer experience, we mean that it must faithfully reflect or give a true picture of the customer experience. Here is an example of what we are referring to – Disney has promised to create a friendly environment for its customers. In order to create that environment on the “outside”, Disney recognized that the friendly environment must be created on the inside-first.
“Walt Disney Productions has been something of an anachronism in major industry by adhering to a first-name, open-door, informal code of behavior for its employees. And yet, these are the proven factors that lead directly to having fun on the job, maintaining a sense of humor and strong sense of internal friendliness. Ultimately, as Walt and Roy knew, it would lead to a strong external friendliness...a friendly efficiency with the public that would pay off in large dividends. No one can create the kind of friendly entertainment product we demand in a formal, unfriendly atmosphere. This important aspect of the Disney philosophy is universally recognized today by the public and press alike. The Wall Street Journal recently wrote that "You can see more respectful, courteous people in Disney World in an afternoon than in New York in a year.”
The quality of an employee experience is the single biggest factor in enabling a company to create meaningful connections with its customers. So what steps can a company follow to create an authentic employee experience?
At The Employee Factor, we know that every company is focused on building customer experiences that create emotionally engaged customers. Those few organizations that have been successful at creating unique experiences and engaged customers have long understood that in order for the customer experience to be delivered consistently it must be mirrored authentically on the inside.
We believe that if an organization truly wants to deliver something different to their customer, they must start to focus on their employee experience and ask themselves a critical question – Are we mirroring the customer experience on the inside? If the answer is “No”, we believe that they shift their focus to the employee experience and watch how the company transforms itself to deliver the desired customer experience – day-in and day-out!
Think about it – what do you expect from a male boss versus a female one? Do you expect the same things regardless of their sex? If you answered yes, think again.
According to Kristin Byron, of the Whitman School of Management “male managers who are perceived as unkind, insensitive and unaware of others' feelings are not considered to be any worse as a result. But woe betide a female manager who displays the same behavior."According to the findings it seems that female managers may be expected to be sensitive to others’ emotions and to demonstrate this sensitivity by providing emotional support. In contrast, this is not the basis to evaluate the performance of male managers. It is far more important for male managers, and men, in general, to be seen as analytical, logical and good at reasoning than showing care and concern for others.
Let’s think about this for a moment. It is amazing to think that these stereotypes are still pervasive in our society. We still tolerate bosses who are viewed as tough, as long as they are male. And we still expect our female bosses to be maternal, emotional and sensitive.Let us know what you think…..do you judge a female boss differently than a male one?
“Death by overwork” or karoshi (Kah-roe-she) is killing the Japanese Manager in his prime. How? Marathon hours at work lead to heart failure and brain bleeds.
Have you read about this?
We’re talking a lot of overtime. Maybe 100 hours of overtime as estimated by an expert on karoshi.
Take a moment to take that in.
That’s on top of long weekdays, includes evenings and weekends which leaves precious few hours for sleep, meaningful family interaction or a social life.
Quite in contrast to the work/life balance that’s demanded in this country and expected from our own corporate cultures.
Back to Japan…
These overtime hours are unpaid. That’s right, no overtime pay. “Free overtime” as it is called.
So why do these Managers work so hard? It’s expected.
This overwork culture starts at the corporate top and is ingrained in the culture and attitudes of the country and people itself. There is no escaping.
However, the impact is now being felt across Japan. It’s killing the Managers of Japan and leaving families rudderless.
Can a corporate culture be changed?
A recent karoshi court case may have a significant impact as it cuts to the economic heart of the issue: To pay or not to pay for these overtime hours.
The December 19, 2007 Economist Article entitled, “Death by overwork in Japan: Jobs for Life” outlines the recent case of a 30-year-old Toyota Manager who dropped dead in 2002. This young man worked 80 hours a month of overtime for the last six months of his life. Unpaid overtime, of course. Toyota’s position was that these hours were “voluntary”.
The court ruled that these hours were not voluntary which means that he should have been paid for these overtime hours.
Can you see the impact?
Would Toyota expect an employee to work these ridiculous hours if the company had to pay the employee overtime?
The Economist says it succinctly: “The ruling is important because it may increase the pressure on companies to treat “free overtime” (work that an employee is obliged to perform but not paid for) as paid work. That would send shockwaves through corporate Japan, where long, long hours are the norm.”Will this have an impact on the work/life balance of the Japanese manager?
Only time will tell.
Asking our Leaders to create engaged and committed employees is like praying for a miracle! Without the tools and training, Leaders cannot be expected to create highly engaged and committed employees. Rather, companies must show them the way.
What can a company do to help ensure that their Leaders build engagement levels?
We all know that far too many organizations promote Leaders and then fail to provide them with the tools and training to do their jobs effectively. The best companies are now recognizing that they must help their Leaders not only understand how to serve their important customer base, but also how to engage their employees.
Let us know your thoughts!
“Leadership is everything. Leadership is the single most important factor in our business. Unless the general manager of the shop is leading the team and providing a well managed, secure, well organized and inspirational environment, there is no customer experience.” Andrew Rolfe, Former Chairman - Pret a Manger
Awareness means that you are aware of something. Awareness implies vigilance in observing or alertness in drawing inferences from what one experiences. So let’s talk about why Leaders need to have high awareness to create engaged and committed employees.
Think about all of the Leaders that you have had – how many would you “go the extra mile for”? People go the extra mile for people they know, like and can relate to. They go the extra mile for people that understand them and their individual goals and challenges. And they go the extra mile for people that they can relate to, people that take the time to understand them. The same goes for a Leader.We believe that too few Leaders really take the time to get to know members of their team. We believe that too few Leaders truly understand their employees, and their personal circumstances and challenges. We believe that too few Leaders try to take a walk in their employees’ shoes.
So what can Leaders do to increase their awareness of their employees and their individual goals, aspirations and challenges? Leaders need to:Let us know your thoughts!
There is very little debate about where engagement starts. We all know that it starts at the top, with our Leaders. Read our blog titled “Employee Engagement Starts with Leaders”.
In our opinion, Leaders must be “full of grace”. What does that mean? It means that to truly create engaged employees a Leader must:
I would be willing to bet that very few of us have had the fortune of working for a Leader that is truly “full of grace”. In my life, I have been very fortunate to have worked with several Leaders that have had many of these characteristics. In fact, it is these Leaders that have fueled my passion for helping companies create engaged and committed employees. Let us know, how many of you have worked with Leaders that are truly “full of grace”.
A fellow blogger, Andrew Olmsted died in Iraq yesterday. Read his final post written prior to his death.
“While you're free to think whatever you like about my life and death, if you think I wasted my life, I'll tell you you're wrong. We're all going to die of something. I died doing a job I loved.”
Remember to always be thankful.
Have a look at this video produced by jetBlue.
It will help you to understand how they have created a success story in an industry that has been very hard to succeed in.
What did they do? They created a core set of values, defined the behaviors associated with living the values and hired accordingly.
Watch the video and see why people, training and adhering to core values makes this company a model for all.
“Brands are destroyed every day, in every interaction, with every customer. A company’s ability to deliver the desired customer experience depends on those at the delivery point both understanding it and feeling compelled to support it. This is a challenge that all company’s face.”
&nbs