Wednesday, May 11, 2011

Corporate Cost Reductions = Employee Engagement

It's a phrase used quite a bit in corporate America today, but how many people know what it truly is, and even fewer know what to do about it -- Employee Engagement (EE).

According to Wikipedia, Employee Engagement is defined as ....  An "engaged employee" is one who is fully involved in, and enthusiastic about, his or her work, and thus will act in a way that furthers their organization's interests.


Studies prove that lack of engagement shows up in employees who are less energized, less ambitious and less effective, which costs American business billions of dollars each year in lost productivity. 


Ok, so what do we do about it? Well if you are a person of talent influence, human resources or in management there are several things that can be done in order to improve EE within your company. It all begins with your company culture. First is to learn what you don't know. Second, Communicate! Third is to commit and follow through. Lastly, share the successes. Let's break this down a little bit. 

  1. Learn what you don't know. Who better to diagnose problems on the floor than the employee's who live an work in the culture every day? Ask employee's to evaluate the current company culture. Encourage comments about what could be improved and ask them to outline their vision for a healthy company culture. The wealth of information that comes from such surveys will aid in developing a plan to shift the company's culture.
    • Keep in mind, it is difficult to establish a "cookie cutter" system of benchmarks because typically no two organizations are trying to accomplish the same goals, nor are they starting from the same place. To ensure their effectiveness, benchmarks should be developed according to your defined goals and based on your own company. Best practices suggests to work with a consultant.
  2. Communicate. Creating a culture of caring really boils down to communication. Management may have the best intentions, but if they're not communicating, any process they implement -- including a shift in culture -- can be perceived as just another "program," or even a personal attack. Start by acknowledging past mistakes or management mis-steps, then recruit employees to get involved, take ownership and help managers create a better, more productive work environment. It may take some time in order to win worker loyalty, but well worth the wait.
  3. Commit to Follow Through. One person committed to creating a healthy company culture is better than 100 with good intentions. Consistent follow through is essential to gaining employees' trust and looking beyond the day to day task that can overshadow the human element so important to develop a culture of caring, understanding and empathy. Be consistent in caring for people first, then worry about the tasks. 
    • After you've collected the data, create a plan and get employees involved in the ground floor planning stages. Form an employee-run task force to brainstorm and come up with solutions for major items of issue. By giving employees ownership of these programs, it ensures they are invested in their own success.
  4. Share the Success. A "culture" that truly values human capital is one that rewards work achievement, shares savings when efficiencies are achieved and provides significant opportunity for employee advancement. In this kind of culture, employees are empowered and motivated to modify unhealthy behaviors, they are more alert when it comes to safety and they are motivated to cut costs and increase profits through innovations because they see a direct reward for doing so. Allowing employees to share in the benefits of their hard work is key to developing a culture of caring.
An investment in culture is an investment in the humans who directly influence health, safety, and ultimately the success of a company. Putting dollars and effort into healing a company's culture and engaging employees may be the most important investment owners can make for the future growth and financial success of their businesses.

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