RETENTION AND EMPLOYEE ENGAGEMENT

BY ANKUSH YADUVANSHI
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INTRODUCTION
Weve seen it happen many times. An organization that provides top wages and benefits loses a great employee to a competitor for no apparent reason. Of course some employee turnover is to be e!pected but the company is truly engaging its employees there is no good reason for the une!pected loss of "uality staff members. #any companies already $now that wages and benefits are important to employees but compensation alone is not enough to $eep the highly s$illed motivated and e!perienced wor$force your business needs to e!cel. %ngagement at wor$ was conceptualized by William A. &ahn '1(()* as the +harnessing of organizational members selves to their wor$ roles. ,n engagement people employ and e!press themselves physically cognitively and emotionally during role performances. -he second related construct to engagement in organizational behaviour is the notion of flow advanced by .si$szentmihalyi '1(/0 1(()*. .si$zentmihalyi '1(/0* defines flow as the +holistic sensation that people feel when they act with total involvement. 1low is the state in which there is little distinction between the self and environment. When individuals are in 1low 2tate little conscious control is necessary for their actions %mployee %ngagement as the e!tent to which wor$force commitment both emotional and intellectual e!ists relative to accomplishing the wor$ mission and vision of the organization. , see engagement as a heightened level of ownership where each employee wants to do whatever they can for the benefit of their internal and e!ternal customers and for the success of the organization as a whole. %mployee engagement was described in the academic literature by 2chmidt et al '1((3* using data from 4allup5s 617 engagement survey. A modernized version of 8ob satisfaction 2chmidt et al5s influential definition of engagement was 9an employee5s involvement with commitment to and satisfaction with wor$.9 -his integrates the classic constructs of 8ob satisfaction '2mith et al 1(:(* and organizational commitment '#eyer ; Allen 1((1*. <arter and 2chmidt5s '7))3* most recent meta=analysis can be useful for understanding the impact of engagement. >in$age research 'e.g. -reacy* 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. ?ucci at al 1((@ using data from 2ears*. 2ome of this wor$ has been published in a diversity conte!t 'e.g. #c&ay Avery #orris et al 7))/*. Airections of causality were discussed by 2chneider and colleagues in 7))3.

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Defining Employee Eng gemen! %mployee engagement also called wor$ engagement or wor$er engagement is a business management concept. An 9engaged employee9 is one who is fully involved in and enthusiastic about his or her wor$ and thus will act in a way that furthers their organization5s interests. -he primary behaviours of engaged employees are spea$ing positively about the organization to co=wor$ers potential employees and customers having a strong desire to be a member of the organization and e!erting e!tra effort to contribute to the organizations success. #any smart organizations wor$ to develop and nurture engagement. ,t is important to note the employee engagement process does re"uire a two=way relationship between employer and employee.

"#y i$ Employee Eng gemen! Impo%! n!& An organizations capacity to manage employee engagement is closely related to its ability to achieve high performance levels and superior business results.
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%ngaged employees will stay with the company be an advocate of the company and its products and services and contribute to bottom line business success. %ngaged employees also normally perform better and are more motivated. -here is a significant lin$ between employee engagement and profitability. %mployee engagement is critical to any organization that see$s not only to retain valued employees but also increase its level of performance.

' (!o%$ of Eng gemen! #any organizational factors influence employee engagement and retention such asB A culture of respect where outstanding wor$ is valued Availability of constructive feedbac$ and mentoring Opportunity for advancement and professional development 1air and appropriate reward recognition and incentive systems Availability of effective leadership .lear 8ob e!pectations Ade"uate tools to complete wor$ responsibilities <igh levels of motivation #any other factors e!ist that might apply to your particular business and the importance of these factors will also vary within your organization.

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STUDIES BY CONSULTANTS
%ngaged employees care about the future of the company and are willing to invest the discretionary effort. %ngaged employees feel a strong emotional bond to the organization that employs them. '?obinson*
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Emo!ion l A!! (#men! Only 7(D of employees are actively engaged in their 8obs. -hese employees wor$ with passion and feel a profound connection to their company. Eeople that are actively engaged help move the organization forward. @CD of highly engaged employees believe they can positively impact "uality of their organization5s products compared with only 31D of the disengaged. /7D of highly engaged employees believe they can positively affect customer service versus 7/D of the disengaged. :@D of highly engaged employees believe they can positively impact costs in their 8ob or unit compared with 8ust 1(D of the disengaged.

In)ol)emen! %ileen Appelbaum and her colleagues '7)))* studied 10 steel mills 1/ apparel manufacturers and 1) electronic instrument and imaging e"uipment producers. -heir purpose was to compare traditional production systems with fle!ible high=performance production systems involving teams training and incentive pay systems. ,n all three industries the plants utilizing high=involvement practices showed superior performance. ,n addition wor$ers in the high=involvement plants showed more positive attitudes including trust organizational commitment and intrinsic en8oyment of the wor$.

Commi!men! ,t has been routinely found that employee engagement scores account for as much as half of the variance in customer satisfaction scores. -his translates into millions of dollars for companies if they can improve their scores. 2tudies have statistically demonstrated that engaged employees are more productive more profitable more customer=focused safer and less li$ely to leave their employer.

P%o*+(!i)i!y ,n a study of professional service firms the <ay 4roup found that offices with engaged employees were up to C3D more productive.

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-he most stri$ing finding is the almost 07D gaps in operating incomes between companies with highly engaged employees and companies whose employees have low=engagement scores. <igh=engagement companies improved 1(.7D while low=engagement companies declined 37./D in operating income during the study period.

Life In$+% n(e In*+$!%y -wo studies of employees in the life insurance industry e!amined the impact of employee perceptions that they had the power to ma$e decisions sufficient $nowledge and information to do the 8ob effectively and rewards for high performance. ,n both studies high=involvement management practices were positively associated with employee morale employee retention and firm financial performance.

MEASURING EMPLOYEE ENGAGEMENT

4allup research consistently confirms that engaged wor$ places compared with least engaged are much more li$ely to have lower employee turnover higher than average customer loyalty above average productivity and earnings. -hese are all good things that

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Erove that engaging and involving employees ma$e good business sense and building shareholder value. Fegative wor$place relationships may be a big part of why so many %mployees are not engaged with their 8obs. S!ep ,- Li$!en -he employer must listen to his employees and remember that this is a continuous process. -he information employees supply will provide direction. -his is the only way to identify their specific concerns. When leaders listen employees respond by becoming more engaged. -his results in increased productivity and employee retention. %ngaged employees are much more li$ely to be satisfied in their positions remain with the company be promoted and strive for higher levels of performance. S!ep .- Me $+%e (+%%en! le)el of employee eng gemen! %mployee engagement needs to be measured at regular intervals in order to trac$ its contribution to the success of the organisation. Gut measuring the engagement 'feedbac$ through surveys* without planning how to handle the result can lead employees to disengage. ,t is therefore not enough to feel the pulseHthe action plan is 8ust as essential. %mployee engagement satisfaction surveys determine the current level of employee engagement. A well=administered satisfaction survey will let us $now at what level of engagement the employees are operating. .ustomizable employee surveys will provide with a starting point towards the efforts to optimize employee engagement. -he $ey to successful employee satisfaction surveys is to pay close attention to the feedbac$ from the staff. ,t is important that employee engagement is not viewed as a onetime action. %mployee engagement should be a continuous process of measuring analyzing defining and implementing. -he employee survey is a diagnostic tool of choice in the battle for the hearts of employees. S!ep /- I*en!ify !#e p%o0lem %e $ ,dentify the problem areas to see which are the e!act areas which lead to disengaged employees S!ep 1- T 2e (!ion !o imp%o)e employee eng gemen! 0y (!ing +pon !#e p%o0lem %e $ Fothing is more discouraging to employees than to be as$ed for their feedbac$ and see no movement toward resolution of their issues. %ven the smallest actions ta$en to address concerns will let the staff $now how their input is valued. 1eeling valued will boost morale motivate and encourage future input. -a$ing action starts with listening to employee feedbac$ and a definitive action plan will need to be put in place finally.

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TECHNI3UES 'OR EMPLOYEE ENGAGEMENT

-he four engagement techni"ues currently favoured by organizations areB A(!ion !e m$ 45567 I %mployee teams created to wor$ with leaders to identify engagement goals and develop strategies to achieve them. S!o%y!elling 41867 I Aistilling information about what the company is striving for and how it can get there into more human and persuasive JstoriesK that involve employees on a more emotional level. App%e(i !i)e In9+i%y 4.867 I A communication approach that encourages employees to wor$ with leaders to envision corporate goals and share ideas how to best achieve them. Me$$ ge m p$ 4,867 I A messaging approach demanding an in=depth understanding of the audience their perceptions and attitudes. #elcrums new guide contains chapters by leading e!perts on each of the techni"ues along with $ey findings from the global study into how organizations are currently approaching employee engagement. Few techni"ues for more demanding audiences internal communicators have increasingly been loo$ing to more interactive and emotive techni"ues to encourage employees to Jgo the e!tra mileK. #elcrums latest research suggests that @:D of organizations with employee engagement on the agenda are now using at least one of the four $ey techni"ues. JAfter so much research and honing of practice good communication departments are s$illed at producing clear messages strong copy and straightforward mission statements and values K says -ony 6uinlan Erincipal and 1ounder at Farrate and one of the e!pert authors of the new guide. JGut neuroscience psychology and related disciplines show us that people rarely ma$e decisions on the basis of rational analysis of data at the best of times.K ,n addition technological advances and socio=economic fluctuations have made audiences all the more demanding. JEeople have far greater access to information than ever before and more ways of e!pressing their own opinions K 6uinlan adds. J-heyre no longer willing to ta$e at face value whats being told to them by the organization. -hey can be sceptical and cynical when it comes to the everyday volley of messages that leadership managers and internal communicators send them.K Key fin*ing$ f%om !#e glo0 l $+%)ey Other interesting findings to emerge from #elcrums latest global research into employee engagement includeB Around @1D of organizations worldwide now have employee engagement on the agenda. A "uarter of organizations address engagement through a formal engagement program while 0CD treat engagement as part of a general philosophy incorporated into overall people practices.
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%mployee engagement programs in C)D of organizations worldwide are overseen primarily by <? while for 7/D internal communication is the $ey function.

'INDINGS O' ALPHAMEASURE SURVEY

Alpha#easure is a L2 company that designs custom employee surveys tailored to target the organizational topics and challenges facing the staff and offer e!ceptional customer support to assist the organization at every step of the way. I! *efine$ employee eng gemen! $ !#e le)el of (ommi!men! n* in)ol)emen! n employee # $ !o: %*$ !#ei% o%g ni; !ion n* i!$ ) l+e$<

Eng gemen! E$$en!i l$ <ow will we $now to what degree our employees are engagedM -he first step is to determine the current level of employee engagement. -he best tool to determine this base line is a comprehensive employee satisfaction survey. A well administered satisfaction survey will let us $now at what level of engagement our employees are operating. .ustomizable satisfaction surveys will provide us with a starting point towards our efforts to optimize employee engagement. -he $ey to successful employee satisfaction surveys is to pay close attention to the feedbac$ from our staff. -his is the only way to identify their specific concerns. When leaders listen employees respond by becoming more engaged. -his results in increased productivity and employee retention. %ngaged employees are much more li$ely to be satisfied in their positions remain with the company be promoted and strive for higher levels of performance. >istening to employee ideas acting on employee contributions and actively involving employees in decision ma$ing are essential to employee engagement.

T 2ing A(!ion !o Imp%o)e Employee Eng gemen! Fothing is more discouraging to employees than to be as$ed for their feedbac$ and see no movement toward resolution of their issues. %ven the smallest actions ta$en to address concerns will let your staff $now
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that their input is valued. 1eeling valued will boost morale motivate and encourage future input. -a$ing action starts with listening to employee feedbac$. -hen the data needs to be analyzed. Fe!t a definitive action plan will need to be put in place and finally change will be implemented. ,t is important that employee engagement is not viewed as a onetime action. %mployee engagement should be a continuous process of measuring analyzing defining and implementing. "# ! i$ !#e Al!e%n !i)e !o Employee Eng gemen!& .onditions that prevent employee engagement seldom alleviate themselves. -hey should be assessed and addressed as soon as possible. >eft to multiply negative employee satisfaction issues can result inB Hig#e% employee !+%no)e% %mployees leave ta$ing their reservoir of $nowledge and e!perience to another wor$place Dimini$#e* pe%fo%m n(e .ompetency of the wor$force is reduced at least short term until new employees are trained Lo$! !% ining *oll %$ -ime and money invested in training and development programs for departing wor$ers is wasted Lo:e% mo% le ?emaining employees can be overburdened with new duties in addition to the unresolved issues that already prevent their full engagement.

Ho: C n "e A!! in Employee Eng gemen!& >isten to the employees and remember that this is a continuous process. -he information our employees supply will provide direction. ,nsist upon increased engagement at the managerial level and create and deploy a customized employee satisfaction survey from Alpha#easure to assess your current level of employee engagement. ,dentify problem areas ma$e a plan and ta$e action towards improvement.

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PEOPLESTREME EMPLOYEE ENGAGEMENT SURVEY REPORTS

Eeople2treme has offices in : .ountries including ,ndia. Eeople2treme specialises in all facets of <uman .apital #anagement systems. ,ts client list reads li$e a who5s who of Australian national and global organizations including 4overnment and Fot=1or=Erofit. Our clients include #cAonald5s #ercedes Genz 1u8i Nero! #ater <ospital Warringay .ity .ouncil Astra Oeneca Olympus Fewcrest #ining 1airfa! Aigital and many others. -hey have e!perience in and wor$ across all industry sectors. Eeople2treme %mployee %ngagement 'E2=%%* is a series of online diagnostic tools designed to accelerate improvements in %mployee %ngagement and retention. .ompeting employee engagement tools were developed based on ,ndustrial Age thin$ing. ,nstead E2=%% includes a new talent management &nowledgebase which provides recommended remedies for each factor and employee retention. ,n addition to remedies the online software tool recommends the top employee engagement priorities re"uiring urgent attention in order to reduce unplanned turnover and improve retention for talented employees. Eeople2treme %mployee %ngagement builds benchmar$s as the survey is conducted immediately not after delays of wee$s or months. -his enables you to immediately compare and prioritize each Aepartment or Aivision with organizational and industry benchmar$s. Pou can easily compare to internal benchmar$s such as B

Absenteeism rate >ost time in8ury rate %mployee turnover rate Erevious restructures

2tandard reporting includesB

AepartmentQ Aivision comparison with the Organisation Genchmar$

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4ender .omparison >ocation .omparison '2tate or other >ocation information* .ustom 1ields provide additional demographics for reporting All data can be e!ported for reporting purposes.

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,ncluded with the system online recommendations are provided for each "uestion that has an effect on %mployee %ngagement. ?ecommended remedies are bac$ed up by an e!planation and research. -his helps the <? manager visualize where a particular department has issues and the <? manager then has ammunition to suggest and discuss recommended remedies with the department manager. Gy using this .losed >oop methodology the %mployee %ngagement survey is turned into individual action plans to improve %mployee %ngagement for every employee. Action Elanning 'how to improve %mployee %ngagement* can also be fully facilitated by Eeople2treme organization psychologists. AdvantageB We Own the Aata #any e!isting vendors have a much smaller subset of survey "uestions and those "uestions were first contemplated during the 1(@)sR -he world has since moved on. -echnology now allows us to as$ more "uestions and provide reporting online and in real time. Eeople2treme facilitates engagement remedies and provides online ?emedy planning as part of the 2urvey tool. %ngagement ?emedies are suggested by our &nowledge Gase tool.

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CONCLUSION
%mployee %ngagement is the buzz word term for employee communication. ,t is a positive attitude held by the employees towards the organization and its values. ,t is rapidly gaining popularity use and importance in the wor$place and impacts organizations in many ways. %mployee engagement emphasizes the importance of employee communication on the success of a business. An organization should thus recognize employees more than any other variable as powerful contributors to a company5s competitive position. -herefore employee engagement should be a continuous process of learning improvement measurement and action.
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, would hence conclude that raising and maintaining employee engagement lies in the hands of an organization and re"uires a perfect blend of time effort commitment and investment to craft a successful endeavour.

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