Employee Engagement Auto Saved)

8/14/2019 Employee Engagement Auto Saved)

1/25

Part 2 Project

overview

Employee engagement


2/25

INTRODUTION

Employee engagement, also called work engagement or worker

engagement, is a business. Management concept. 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. Engagement at work was

conceptualized by William A. Kahn (1990) as the harnessing oforganizational members selves to their work roles. In

engagement, people employ and express themselves

physically, cognitively, and emotionally during role

performances. The second related construct to engagement in

organizational behavior is the notion of flow advanced by

Csikszentmihalyi (1975, 1990). Csikzentmihalyi (1975) defines

flow as the holistic sensation that people feel when they act

with total involvement. Flow is the state in which there is littledistinction between the self and environment. When individuals

are in Flow State little conscious control is necessary for their

actions Employee Engagement as the extent to which

workforce commitment, both emotional and intellectual, exists

relative to accomplishing the work, mission, and vision of the

organization. I see engagement as a heightened level of

ownership where each employee wants to do whatever they

can for the benefit of their internal and external customers, andfor the success of the organization as a whole. Employee

engagement was described in the academic literature by

Schmitt al (1993) using data from Gallup's Q12 engagement

survey. A modernized version of job satisfaction, Schmitt alls

influential definition of engagement was "an employee's

involvement with, commitment to, and satisfaction with work."

This integrates the classic constructs of job satisfaction
http://en.wikipedia.org/wiki/Business_managementhttp://en.wikipedia.org/wiki/Wage_labourhttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/w/index.php?title=William_A._Kahn&action=edit&redlink=1http://en.wikipedia.org/wiki/Wage_labourhttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/w/index.php?title=William_A._Kahn&action=edit&redlink=1http://en.wikipedia.org/wiki/Business_management


3/25

(Smith et al, 1969), and organizational commitment (Meyer &

Allen, 1991). Harter and Schmidt's (2003) most recent meta-

analysis can be useful for understanding the impact ofengagement. Linkage research (e.g., Treacy) received

significant attention in the business community because of

correlations between employee engagement and Desirable

business outcomes such as retention of talent, customer

service, individual performance, team performance, business

unit productivity, and even enterprise-level financial

performance (e.g., Rucci at all, 1998 using data from Sears).

Some of this work has been published in a diversity context(e.g., McKay, Avery, Morris et al, 2007). Directions of causality

were discussed by Schneider and colleagues in 2003.Talking

about the engagement and commitment of an employee to an

organisation, most companies are of the opinion that they do

have a few, but they still want more. Why? It is merely because

these companies have come to the realization of the fact that

their organizations long-term success relies on employee

performance, which is directly impacted by the level ofemployee engagement and commitment to an organisation,

most today realise that a Satisfied employee is not necessarily

the best employee in terms of loyalty and productivity, it is

only An engaged employee who is intellectually and

emotionally bound with the organisation feels passionately

about its goals, and is committed towards its values ,He goes

the extra mile beyond the responsible and is associated with

the action that drive the business moreover in times ofdiminishing loyalty ,employee engagement in powerful


4/25


5/25


6/25

which delivers business intelligence to many of the World'sleading companies. This review cites twelve major studies onemployee engagement published by top research firms such asGallup, Towers Perrin, Blessing White, the Corporate Leadership

Council and others. Each of these studies offers a differentdefinition of employee engagement, and The Conference Boardoffers a synthesized definition which sees employeeengagement as "a heightened emotional connection that anemployee feels for his or her organization, that influences himor her to exert greater discretionary effort to his or her work."

This closely reflects the view of the CIPD which sees employeeengagement as "a combination of commitment to theorganisation and its values, plus a willingness to help out

colleagues (organisational citizenship).

It goes beyond job satisfaction and is not simply motivation.Engagement is something the employee has to offer: it cannotbe 'required' as part of the employment contract."2 Thequestion is: what circumstances or conditions are neededbefore person can feel that heightened emotional connection orsense of commitment and organisational citizenship? In otherwords, what are the key ingredients of employee engagement?Digital Opinion's own research points to the following: Thenature of the work - Is it mentally stimulating day-to-day?Support - Does the employee feel supported by their linemanager and colleagues? Recognition - Does the employee feelthat their efforts are recognised and valued? Loyalty - Does theemployee want to stay with the company and develop theircareer? Advocacy - Is the employee willing to recommend theircompany to family and friends? Values - Does the employeefeel that managers and colleagues "walk the talk" in terms ofthe company's values? In our view these are the pre-requisitesfor employee engagement. They inform ourdefinition:"Engagedemployees enjoy their work and are proud to tell people thatthey work for the Company. They go the extra mile to help their


7/25

customers and colleagues, and they want to stay and develop acareer with the Company. In the long run they are the realcontributors."And they are the key factors which underpin ourapproach to conducting employee engagement surveys and

helping companies to raise the level of engagement. The nextquestion of course is: why does employee engagement matter?

1 "Employee Engagement, A Review of Current Research and ItsImplications" published in 2006 by The Conference Board2 Employee Engagement A CIPD Factsheet originally issued

January 2007; latest revision January 2008.

Why does employee engagement matter?

Employee engagement matters because engaged employeescreate loyal customers who, in turn, drive profitable growth.

That is the simple conclusion at the heart of "Putting the

Service-Profit Chain to Work", a seminal study of successfulservice organisations published in the Harvard Business Reviewin 1994.Based on an analysis of major US corporations such as BancOne, Intuit Corporation, Southwest Airlines, ServiceMaster,USAA, Taco Bell, and MCI, the Harvard study established thelinks in the Service-Profit Chain: Profit and growth arestimulated primarily by customer loyalty. Customer loyalty is adirect result of customer satisfaction. Customer satisfaction is

largely influenced by the value they attach to the servicesprovided. Value is created by satisfied, loyal, and productive


8/25

employees. Employee satisfaction, loyalty and productivity arein turn stimulated by policies, practices and support serviceswhich inspire employees to deliver results to customers.

In other words, the Service-Profit Chain shows how employeeengagement impacts on customer satisfaction and profitability.And it shows management the importance of focusing on thefactors which drive engagement: investment in recruitment,training and development, and the technology that supportspeople, together with performance management systems whichproperly link performance and pay. For some business leadersthe Harvard model did not provide the hard evidence theyneeded to justify the required level of investment. However, a

number of other studies have made good the deficit, mostnotably the Sears Employee-Customer-Profit Chain Model whichwas at the heart of a far-reaching culture change and financialturnaround at the US retail giant in the early 1990's. This modelshows that a 5 point improvement in employee attitudestowards their own job and towards Sears as a company predictsa 0.5% increase in revenue.


9/25

the turn of the century a number of studies have supportedthese findings. In 2004 Sirota Consulting studied 28multinational companies and found that the share prices oforganisations with highly engaged employees rose by an

average of 16 per cent compared with an industry average of 6per cent. And an ISR study published in 2005 showed that incompanies with above average levels of employee engagementprofits rose by 2.06 per cent and the operating margin rose by3.74 per cent over 36-months. Conversely, companies with lowlevels of employee engagement saw net profit fall by 1.38 percent and the operating margin fall by 2.01 per cent over a 36-month period.For other business leaders the statistics are not necessary. To

them the relationship between employee engagement andprofitable growth is self-evident. When asked whichmeasurements "give the best sense of a company's health" in arecent Business Week advice column, former GE Chairman andCEO Jack Welch replied:
http://tmp/svif8.tmp/javacript:void()


10/25

"Employee engagement first. It goes without saying that nocompany, small or large, can win over the long run withoutenergized employees who believe in the mission andunderstand how to achieve it. That's why you need to take themeasure of employee engagement at least once a year throughanonymous surveys in which people feel completely safe tospeak their minds." And as Richard Branson says: "Weembarked on consciously building Virgin into a brand whichstood for quality, value, fun and a sense of challenge. We also

developed these ideas in the belief that our first priority shouldbe the people who work for the companies, then the customers,then the shareholders. Because if the staffs are motivated thenthe customers will be happy, and the shareholders will thenbenefit through the company's success."In summary the research shows what some of the world's mostrespected business leaders already know: the links betweenemployee engagement, customer satisfaction andorganisational performance are beyond question. However, it

also shows that high levels of engagement are far from beingthe norm. Indeed, recent research from Towers Perrin1

describes employee disengagement as a global epidemic. Therefore, the challenge for many companies is to properlymeasure engagement, identify its key drivers and create aculture is which engagement becomes "the way we do thingsaround here".


11/25

Research studies on employmentengagement,

percent loss Employees with the highest level of commitmentperform 20 percent better likely to leave the organization and

are 87 which indicated that engagement is linked toorganizational performance for example at the beveragecompany of Molson Coors, it was found that engagementemployee were five times less likely than non engagedemployee to have a safety incident and seven times less likelyto have a lost time safety incident.

The average cost of a safety incident for on engagedemployee was $/63 compared with an average of $ 392 for anon engagement employee. Consequently through

strengthening employee engagement,The company saved $1721760 in softly

costs in 2002 in addition saving were found in salesperformance teams through engagement in 2005 for examplelow ayes,Gallup is an organization that studies the engagement level ofthe employees.

1. I know what is expected of me at work.

2. I have the materials and equipment I need to do my workright.3. At work, I have the opportunity to do what I do best everyday.4. In the last seven days, I have received recognition or praisefor doing good work.5. My supervisor, or someone at work, seems to care about meas a person.6. There is someone at work who encourages my development.

7. At work, my opinions seem to count.8. The mission or purpose of my company makes me feel my


12/25

job is important.

9. My associates or fellow employees are committed to doingquality work.10. I have a best friend at work.11. In the last six months, someone at work has talked to meabout my progress.12. This last year, I have had opportunities at work to learn andgrow.

Thus if you want the success of your organization and see itreaching great heights all you need is an engaged workforce,i.e. all you need is justifiable


13/25

How do we measure employee

engagement?

There is no generally accepted definition of employeeengagement. So it is not really surprising that there is nodefinitive methodology for measuring it. Most researchorganisations favour the use of a survey, and have developeddistinctive approaches: The Gallup Organisation is well knownfor its Q12 approach and Towers Perrin-ISR for its cognitive -affective - behavioural engagement model, but none can claimto offer the last word on the subject. Nevertheless, any

organisation seeking to measure and raise the level ofengagement does need to employ a structured approach basedon a tried and tested model. Below we explain Digital Opinion'sengagement model and our approach to measuringengagement.We define employee engagement as follows:"Engaged employees enjoy their work and are proud to tellpeople that they work for the Company. They go the extra mileto help their customers and colleagues, and they want to stay

and develop a career with the Company. In the long run theyare the real contributors."

This definition forms the basis for our model, which reduces theinherent complexity to measurable proportions.Engagedemployees are those who get satisfaction from their work andare committed to their employer. They are the realcontributors. Disaffected employees are those who arenegative on both counts. They can be expected to make aminimal contribution, have a negative impact on their

colleagues, or leave the Company. The two most interestingcategories are the uncommitted and the frustrated. The former


14/25

are those who take satisfaction from their individual jobs buthave little sense of commitment to the company. The latter arethose who are committed to the Company,Having established a measure of engagement we then look at

how each of the other issues covered by the survey affectsthose two dimensions, and identify the things that matter mostto its people - the key drivers of engagement. Those are theissues that need to be focused on to raise the level ofengagement.

The engagement process

At Digital Opinion we see raising employee engagement as anongoing business improvement process which needs to be

directed by senior management but driven by line managersand team leaders working with their teams.Our recommended approach to managing an engagementsurvey and post-survey actions depends on which stage of theprocess the client is at.

For the first year we recommend a top level company-wideapproach. Senior management and HR assume directresponsibility for promoting the survey, maximising theresponse, championing post-survey actions and ensuring thatthey are followed through. Analysis and reporting areconducted at a company wide-level and the focus is on the bigengagement issues rather than departmental or team levelconcerns. This company-wide approach reduces concerns about

confidentiality and helps to maximise the response. Positioningthe senior team as the principal engagement champions helps


15/25

to raise the profile of employee engagement throughout thecompany.

Year two: Divisional/departmental focus

For the second year we recommend a more in-depth approach.Senior management and HR continue to play a part inpromoting the survey, and monitoring the roll-out of post-survey actions. However, direct responsibility for the surveyand the broader engagement process is delegated to the nextmanagement tier such as divisional/departmental heads. It is

now their responsibility to maximise the response, championpost-survey actions and ensure that they are followed through.Analysis and reporting are conducted at adivisional/departmental as well as at a Company wide-level,and the focus is now on the generation of divisional/departmental solutions to the key engagementissues. The tangible improvements which followed the firstsurvey should help to ensure a high level of involvement in thesurvey and commitment to the engagement process.

Year three: Team focusAfter two surveys and two rounds of the engagement process itis time to delegate responsibility for engagement down to linemanagers and team leaders. It is their task to maximise theresponse, champion post-survey actions and ensure that theyare followed through. Analysis and reporting are nowconducted at a team level as well as at adivisional/departmental and Company wide-level, and the focusis on line managers and team leaders working with their teamsto the generate team solutions to the key engagement issues.It is at this level - line managers and team leaders working with


16/25

the own teams - that engagement really takes root andbecomes an integral part of the company's culture. And in thatcontext it is useful to recall the point made by the CIPD:Engagement is something the employee has to offer: it cannot

be "required" as part of the employment contract.Three-year engagement process


17/25

The role of the line manager in employeeengagement


18/25

The link between employee engagement and businessperformance is well documented. However, the link betweenthe line manager and employee engagement is rather less well

understood. That is one of the principal conclusions of a 2003study into the relationship between organisational performanceand the way people are managed, conducted by the BathUniversity School of Management for the CIPD1. It makes thepoint that while senior managers and HR play the lead part inpolicy design, it is usually the line manager or team leader whois responsible for translating policy into company practice.Figure 1, below, shows the influence that line managers haveover both performance and engagement.


19/25

Those conclusions are supported by Digital Opinion's ownresearch. In our view line managers and team leaders do,indeed, play a key role in determining how effectively desiredpractices become embedded within the organisation and,

through that, how engaged people are.Our data indicates that, in many respects, line managersappear to be doing a good job. As a rule they appear toapproachable and willing to listen, they provide guidance, aresupportive and treat people with dignity and respect. Notsurprisingly most employees report a good working relationshipwith their line manager.However, when we look at how well line managers translatespecific company policies into practice we tend to see a rather

different picture, particularly in the area of performancemanagement. Our data shows that very few line managers orteam leaders are good at setting specific personal performancetargets for their people or conducting useful performanceappraisals or training reviews. Most notably, few are able todeal effectively with individuals who do not perform well.

The reasons are not hard to find. Line managers or teamleaders might be expected to play a key role in peoplemanagement but they seldom receive adequate training in that

area. Nor is their own performance measured on the basis ofhow effective they are as people managers, or how well theyengage their teams. As the Bath School of Management/CIPDreport says: line managers are a critical but neglected resourcein the delivery of performance.

Therefore, companies seeking to properly engage their peopleneed to recognise the importance of line managers and teamleaders in that process and review the time and resources theycommit to developing their people management skills. Theyalso need to start thinking about linking line managers' andteam leaders' pay to people performance and engagementmetrics. For many companies that would be a major step, but ifwe believe the evidence linking engagement to businessperformance, the rewards are potentially very high.


20/25

Why is employment engagement so

important,

Work is one of the greeted advanced of our time, most of usgrew up listening to the thrilling high advanced stories in whichheroes faced insurmountable challenging, and emergedvictories ,however for very good reason ,most of those stories

where set in days gone by- the once upon a time era in termsof Maslows hierarchy of needs most of us one above the needof basic survival at least in today era of achievement orientedsociety,No we are not talking about the engagement where the

employee is to get married. We are taking about the

engagement, which determines the psychological commitment

of the employees to the assigned task. It means that how well

an employee relates himself to his work, how much dedicated

the employee is towards his work and so on.Various researches have been conduced in the past and all of

them have one thing in common that if an organization wants

to sustain in the long run then its really essential for it to have

an engaged workforce. Employees feel engaged when they find

personal meaning and motivation in their work, receive positive

interpersonal support, and operate in an efficient work

environment. All efforts are made on maximizing employee

output and making the most of organizational resources. Anengaged workforce takes an organization to great heights.

Organizations seeking ways to build a motivated, satisfied and

engaged workforce should start by putting in place structured

and well-planned orientation programmes for their new

employees. First of all lets clear off our perceptions between

the satisfied workforce and the engaged workforce. A person

who is engaged may not be satisfied while a person who issatisfied may not be engaged.


21/25

There's lot of difference between an employee being satisfied

and employee being engaged. An employee may be satisfied

with the facilities that he is getting and that would be sufficient

enough to continue with the organization. On the other hand an

employee may be 100% engaged to his work yet may not besatisfied one of the reason could be that he does not have a

supportive boss.Engagement is linked to three essential forces

in the organization - Attrition, Productivity & Profitability

Productivity is the output of the workers in the form of work

done by them its not the quantity that matters it's the quality

that is of importance for the organization. An engaged

workforce has an understanding of what is expected of them at

work so thus they are able to carry on their task effectively andefficiently thus adding to the productivity of the organization

and thus adding to the growth and success of the organization.

Profitability is the ability of a company to earn a profit. It is a

relative measure of success for a business. Research has

proved that an engaged workforce is likely to result in an

increase in the profitability of the concern as they have

complete dedication and commitment to their work and thus

this is likely to result in an increase in the profit of the concernand thus ensuring the success of the organization.The

organizations now days take all reasonable steps to ensure that

they have engaged workforce like organizing birthday bashes,

talent shows, sports activities and many other things. They

want their employees to be committed to their work fully

besides all the above activities they also make sure that the

employees have role clarity, get all the material and equipment

they require to perform their work efficiently etc. The employee


22/25

must feel that there is somebody in the organizations who

cares for him and wants his success and growth. In all this we

referring to the 12 questions that Gallup uses for studying the

engagement level of employees in the organization. In February

2006, Towers Perrin released an international workforce study

called Winning Strategies for a Global Workforce.

The purpose of the study was to identify the drivers of

attraction, retention, and engagement through the eyes of

employees. One focus of the study was to measure employee

engagement (i.e., how loyal, committed, and connected an

employee is to his/her employer).The result was disturbing only a little over 20% of respondents were fully engaged while

the remainder were partially engaged, partially disengaged, or

completely disengaged.Ive read several articles lately that are

buzzing about employee engagement. So whats all the fuss

about? In todays changing economic landscape, recruiting,

retaining and motivating top talent is extremely important and

the best way to do it seems to be through engagement.First and foremost,

companies engage employees to retain them. According to the

2009 Employment Dynamics and Growth Expectations (EDGE)

Report, 55 percent of employees plan to change jobs, careers

or industries when the economy recovers. Therefore,

companies should take proactive steps starting now to engage

these employees and ensure they prevent unwanted turnover

down the line.If retaining these individuals isnt enough reason

for engagement, employers who are able to engage employees

have also claimed they notice higher levels of commitment and


23/25

productivity. Thus, employers may want to consider creating

vehicles that will connect their valued employees.Create more

open dialogue encourage feedback from employees by

conducting surveys, implementing an employee suggestion

program, etc.

Conclusion

To concluded if employee engagement is not assessed andaddressed employee will multiply and negative employeesatisfaction issues can result in,

1, higher employee turnover employee leave, taking theirreserve of knowledge and experience to another workplace,2; diminution performance competency of the workplace isreduced at least shirt term until new employee are trained3, last training money time and invested in training and

development programs for departing workers is wasted4 lower moral remaining employees can be overturning dennedwith new duties in additions the unresolved issues that alreadyprevent their full engagement, My final employee engagementrecommendations revolve around creating employeesatisfaction, by creating a future and perfect job fit. Humanresource planning should include the following step,5, Make your on-boarding process of new employees unique.

Your goal should be to have the employee go home at the end

of the first day and tell those closest to them that their first day


24/25

with your company was the best first day they ever had. Thereare many ways to make your employee engagement special.6, Develop a mentoring process in your company to make sureyour new employee is immersed into your company as

efficiently as possible. This is especially important when youconsider the generational diversity we are all facing in theworkplace and the timeline that younger employees use to

judge whether they have made the right decision.7, Communicate the career path options that employees haveand be clear as to the expectations you have for them to beconsidered for these other assignments.

8, Talent management also involves employees in decision

making and open communication with them. The moreknowledge they have, the more they can offer your company.The more they feel part of the company and the process thebetter the results theyll produce.9, Warehouse the candidate data and new employeeinformation you have obtained in a secure website. This allowsyou to develop analytics, feedback loops and meaningfulmetrics. Then evaluate your processes for higher performancepayback. This will help as you search for new candidates aswell as manage those you have hired. This information can alsobe used to show candidates that you understand how tomanage the human capital component of your business.I do not have to tell you that the competition for top talent is

getting more intense. Furthermore, we all are noticing that theyounger generations entering the workforce are not as patientas the baby boomers that are retiring. As business owners, wedo not have as long to "get it right". The generation X and Yemployees are quicker to judge and to correct a decision theyfeel is not a good fit for them.


25/25

By implementing these processes, you can leapfrog yourcompany right over best practices to NEXT PRACTICES. You willimprove how your organization manages talent acquisition anddevelops human capital; the capital that delivers the world

class customer service that truly differentiates your companyfrom the rest.

Documents

Employee Engagement Auto Saved)