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Improve engagement, productivity, and motivation with effective employee recognition Recognizing and Engaging Employees for Dummies gives you the tools and information you need to improve morale, productivity, and personal achievement with a successful employee recognition program. Written by a world-leading authority in employee recognition, this book walks you step-by-step through the design and implementation process and describes the incentives that work, the behaviors to reward, and the mechanisms that must be in place for the program to be effective in the long term. You'll learn how to pinpoint the places where engagement and recognition could improve the bottom line, and how to structure the reward for optimal balance between motivational, financial, and organizational effectiveness. With clear explanations and a fun, friendly style, this book is your quick and easy guide to boosting productivity, profit, and customer satisfaction. Most Americans who leave their jobs cite lack of recognition as the driving factor. When your employees feel appreciated, they stick around, work harder, achieve more, and drive your business onward and upward. This book shows you how to bring that dynamic to your workplace, with step-by-step guidance and helpful advice. * Design successful recognition programs * Create powerful incentives for employees * Reduce turnover, improve engagement, and drive excellence * Foster a happier and more productive workplace Happy employees are productive employees. They get results. They innovate. They are the force behind the advancement of industries. Effective employee recognition programs are self-sustaining motivational tools that keep the fire lit. If you're ready to spark the flame, Recognizing and Engaging Employees for Dummies is the ideal guide for designing, implementing, and maintaining the program your employees have been waiting for.

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Veröffentlichungsjahr: 2015

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Recognizing & Engaging Employees For Dummies®

Published by: John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030-5774, www.wiley.com

Copyright © 2015 by John Wiley & Sons, Inc., Hoboken, New Jersey

Published simultaneously in Canada

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ISBN 978-1-119-06753-5 (pbk); ISBN 978-1-119-06779-5 (ebk); ISBN 978-1-119-06780-1 (ebk)

Recognizing & Engaging Employees For Dummies

Visit www.dummies.com/cheatsheet/recognizingandengagingemployees to view this book's cheat sheet.

Table of Contents

Cover

Introduction

About This Book

Foolish Assumptions

Icons Used in This Book

Beyond the Book

Where to Go from Here

Part I: Enhancing Employee Engagement through Recognition

Chapter 1: The Quest for Engagement

Why Engagement Is Important

Looking at Factors Impacting Employee Engagement

Why Employee Engagement Is So Elusive

Engagement: A Process for Improvement

Keeping a Clear Focus as You Improve Your Engagement Efforts

Chapter 2: Strategies for an Engaged Workforce

Creating a Clear and Compelling Direction

Opening Lines of Communication

Involving Employees and Encouraging Initiative

Increasing Employee Autonomy, Flexibility, and Support

Continuing to Focus on Career Growth and Development

Chapter 3: How Recognition Drives Employee Engagement

Embracing This Fact: You Get What You Reward

Helping Your Employees Excel

Seeing How Recognition Drives Engagement

Creating a Culture of Recognition

A Quick Look at How You Can Leverage Recognition Technology

Looking Forward, Staying Ahead

Part II: The Fundamentals of Employee Recognition

Chapter 4: The Importance of Employee Recognition Today

The Benefits of Recognition

The Recognition and Performance Link

The Significance of Recognition Today

Key Workforce Trends Impacting Employee Motivation Today

Incentive Trends in Today’s Workplace

The Bottom-Line Impact of Recognition

Chapter 5: The Principles of Employee Recognition

Fundamentals of Employee Recognition

Making Recognition Meaningful

Using Motivators to Help Employees Do Their Best

The Power of Praise

Chapter 6: The Manager’s Role in Recognizing Employees

Closing the Perception Gap between Managers and Employees

Top Motivating Techniques Reported by Employees

Implementing and Leveraging Recognition for Greatest Impact

Seeing How Recognition Impacts Your Workforce

Chapter 7: Getting Managers to Recognize Employees

The $64,000 Question—Why Do So Few Managers Recognize Employees?

Converting Low-Use Managers into High-Use Managers

Calling All Employees: Getting Managers to Give More Recognition

Combating Six Common Excuses of Low-Use Managers

Using and Advocating for Recognition, No Matter What Your Position

Part III: Implementing Recognition throughout the Organization

Chapter 8: Creating a Culture of Recognition

Management Accountability

Leadership Sponsorship: Getting Buy-In from Upper Management

Measurement and Tracking: Assessing Your Recognition Program’s Progress

Management Training and Support

Communications: Implementing a System That Works for You

Recognition and Rewards: Making It Easy

Process Improvement: Reviewing Your Program

Chapter 9: Engaging and Recognizing Individuals

Starting with the Basics

Planning Individual Recognition

Making the Commitment to Employee Recognition

Promoting Peer-to-Peer and Employee-to Manager Recognition

Chapter 10: Engaging and Recognizing Teams

Creating and Engaging High-Performing Teams

A Quick Look at Team Recognition

Planning Team Recognition

Ways to Recognize Your Team

Putting It All Together with Perkins Coie

Chapter 11: Implementing Organizational Recognition

Three Purposes of Organizational Recognition

Organizational versus Individual and Team Recognition

Strategies for Implementing Organizational Recognition

The Importance of Strategic Recognition

The Four Phases of Organizational Recognition

Part IV: Creating and Sustaining a Culture of Recognition

Chapter 12: Recognition and Technology

The Pros of Rewards and Recognition Technology

Overcoming Challenges of Recognition Technology

Using Technology for Recognition

Seven Keys to a Successful Online Recognition Program

Overcoming Pitfalls in Setting up Your Online Recognition Program

The Future of Technology and Recognition

Chapter 13: Sustaining and Reenergizing Recognition Effor  ts

Sustaining Your Recognition Program

Linking to strategic objectives

Acquiring and renewing sponsorship commitment

Creating a recognition committee

Providing specific management follow-up

Inserting recognition into communication

Other suggestions to sustain enthusiasm for your recognition program

Tying Recognition to Human Resource Systems

Reenergizing Your Recognition Program

Re-shining Gold Stars: The Reenergizing Process in Action

Bringing a Program to a Close

Chapter 14: Troubleshooting Recognition Problems

Identifying Individual Recognition Mistakes

Looking at Team Recognition Mistakes

Making Mistakes at Organizational Recognition

Recognizing the Wrong Things

Avoiding Common Organizational Demotivators

Part V: Issues and Challenges in Recognizing and Engaging Employees

Chapter 15: Selling Recognition to Senior Management

The CEO/CFO Perspective on Human Resources

Seven Strategies for Obtaining Executive Buy-In

Recognizing Why Convincing Top Management Isn’t Easy

Getting Top Managers to Model Recognition

Recognizing Top Management for Recognizing Others

Chapter 16: Recognizing and Engaging Millennials

Profiling Millennials

Reframing Expectations

How Millennials Are Changing the Way People Work

Millennials’ Five Key Job Expectations

Motivating the Millennials

Chapter 17: Engaging and Retaining High-Potential Employees

Identifying High-Potential Employees

Current Challenges with HIPOs

Retaining High Potentials

A Case Study in Developing High Potentials

Part VI: The Part of Tens

Chapter 18: Top Ten Ironies of Motivation

Most Managers Think Money Is the Top Motivator

What Motivates Others Is Often Different from What Motivates You

Things That Most Motivate Employees Are Easy and Inexpensive

Formal Awards Are Only as Good as What They Symbolize

Fun, Simple, and Creative Rewards Work Best

Recognizing Performance Means the Most to Employees

It Takes Less Effort to Sustain Desired Behavior Than to Initially Create It

Managers Don’t Focus on Employee Motivation until It’s Lost

Helping Employees Develop Marketable Skills Makes them More Likely to Stay

You Get What You Reward Is Common Sense but Rarely Practiced

Chapter 19: Top Ten Trends in Employee Recognition

It’s Decentralized and Informal

It Includes More Reward Options

It’s More Frequent and Comes from More Sources

It’s More Customized and Personal

All Deserving Employees Are Recognized

It Recognizes Nonwork Behaviors and Achievements

It Recognizes New Types of Workers

It Emphasizes a Performance-Based Culture

Socially Responsible Rewards Are Valued

It Has Shifted from Getting to Giving

Chapter 20: Ten No-Cost Strategies for Recognizing and Engaging Employees

#1: Provide Employees Information They Need

#2: Support Employees When They Make Mistakes

#3: Solicit Opinions and Ideas, and Involve Employees in Decisions

#4: Be Available and Get to Know Your Employees

#5: Support Employees Learning New Skills and Discuss Their Career Options

#6: Allow Autonomy, Increase Authority, and Give Assignment Choices

#7: Thank Employees for Doing Good Work and Praise Them in Front of Others

#8: Grant Flexible Working Hours and Time Off

#9: Provide Written and Electronic Praise

#10: Publicly Share Customer Letters and Recognize Employees in Meetings

About the Author

Cheat Sheet

Advertisement Page

Connect with Dummies

End User License Agreement

Guide

Cover

Table of Contents

Begin Reading

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Introduction

You get the best effort from others not by lighting a fire beneath them, but by building a fire within them.

According to the Harvard Business Review, companies spend over $720 million each year on employee engagement — an amount that is projected to rise to over $1.5 billion per year — yet, employee engagement is at record lows. Just 30 percent of employees are currently considered engaged, according to the Gallup Organization, roughly the same percentage as when Gallup first started measuring the topic over 15 years ago.

What’s wrong with this picture? Why is increasing employee engagement so difficult? There’s no refuting Gallup’s extensive longitudinal research that systematically identified the core variables that distinguish high-performing organizations from their competitive also-rans in the marketplace. But knowing what those organizational pressure points are and positively impacting those variables apparently is more difficult than anyone could have predicted.

Or are these engagement scores the proverbial tail wagging the dog? Are companies spending extraordinary amounts of effort (and money) to chase higher engagement scores while overlooking the fundamentals that are necessary for actually better engaging today’s employees?

A painting entitled The Treachery of Images, by Rene Magritte, the Belgian surrealist, hangs in the Los Angeles County Museum of Art … . The work depicts a man’s smoking pipe over the words Ceci n’est pas une pipe (“This is not a pipe”). It’s basically making the point that the representation of something is not the thing itself. In the same way, engagement scores that represent employee engagement are not engagement itself. Perhaps it’s time to focus on the behaviors that truly impact employee engagement, and not just the scores that measure it. This book seeks to do just that.

About This Book

Recognizing and Engaging Employees For Dummies is a reference book that contains a wealth of ideas, suggestions, tools, techniques and best practices of engagement, recognition, and motivation. There are lots of examples and some case studies — many from my own experience in applying these concepts with hundreds of organizations. You can dip into this book anywhere to find advice, examples, and best practices that can instantly provide you help today. Sidebars are skippable, but you won’t want to skip them, because they provide interesting tangents, tips, and real-life stories that help to bring these topics to life.

I conceived this book to better address the specific actions needed to increase employee recognition and engagement of your employees. I want this book to be helpful to you, whether you are a manager, a team leader, a human resources professional, an executive, or a front-line employee — regardless of your level of experience with employee recognition and engagement.

Although there are many other good books available to supplement this one, including some that I authored — such as 1501 Ways to Reward Employees, The 1001 Rewards & Recognition Fieldbook, 1001 Ways to Energize Employees (all published by Workman Publishing Company), and The Management Bible and Managing For Dummies, 3rd Edition, published by John Wiley & Sons — I wanted this book to stand alone as an ongoing resource and an application guide to help you get the best results from your recognition and engagement efforts.

Many of the items I discuss in this book direct you back to your employees for answers as to how they best like to be recognized, ways you can better involve them in decisions, discussions you should have with them about their work preferences, plans and ambitions as well as to just generally get to know them better!

Foolish Assumptions

By purchasing this book I’m assuming that you’re a manager, business owner, or human resource professional that is looking for answers and ideas about what you can do to better motivate and engage your employees. You might also be a front-line employee who’s looking for ways to get your boss to be a better manager to work for, one who makes time for you, supports and encourages you, and thanks and recognizes you more when you’ve done good work. Perhaps you’re a coach or consultant who works with managers and organizations, trying to help them improve their recognition, engagement, and motivation efforts.

If my assumptions are correct, you’ll find that there is something within these pages for you, so long as you are open to considering some new ideas and willing to experiment to learn how best to apply the ideas I include here in your work with others.

Icons Used in This Book

Throughout this book, you’ll come across icons that call out different kinds of information. Keep your eyes out for these icons as you’re reading:

This icon indicates an especially useful insight or practical nugget of advice. It’s usually something quick you can put into action right away.

This icon calls out something that is especially worth retaining. It’s usually a key principle or concept that is critical to your success on the topic being discussed.

This icon relays a personal story or company example I’ve had in my work that relates to the topic being discussed. These are usually fun and interesting asides!

This icon accompanies slightly longer company examples.

When you see this icon, be aware! It describes a mistake or problem you should try to avoid.

Beyond the Book

In addition to the contents of this book, you can access some really great, related material online that you can access anytime at www.dummies.com/extras/recognizingandengagingemployees. These extra web goodies are shorter than the book, and give you quick bit of information and guidance on-demand.

The eCheat Sheet gives you a quick rundown of 14 different engaged workplace behaviors, and the ways in which you should recognize your employees to get them. Sometimes, when a recognition issue arises, you’re right in the thick of things at work and may not have time to go back through this book to find the right chapter. The eCheat Sheet articles present info like how to recognize and incentivize employees from different generations in an efficient way so you can solve the problem and keep moving. To access the eCheat Sheet, go to www.dummies.com/cheatsheet/recognizingandengagingemployees.

You can also access some additional helpful bits of information, such as how to get certain business results through recognition, ways to recognize core values, do’s and don’ts of workplace recognition, trends that impact managers’ roles today, and ten common questions about rewards and recognition.

Where to Go from Here

One of the great things about this book (and most For Dummies books) is that it’s written in a modular format in which each chapter stands on its own, enabling you to jump around in the book however you prefer. Of course, you can also read it through from beginning to end as well!

Along the way, if you have any questions or comments about what is discussed, please send me an email at [email protected], and I’ll do my best to answer your question. If you’re potentially interested in having me present or consult on the topics discussed in this book to your management team, association, or conference, you can contact me directly about that as well. My direct phone number is (858) 673-0690, and I’m based in sunny San Diego, California, USA. Thank you!

Part I

Enhancing Employee Engagement through Recognition

Head to www.dummies.com for more Dummies content online.

In this part …

Discover the current climate of workplace engagement and determine whether your company aligns with current trends

Identify different methods of keeping your employees engaged at work

Get the ins and outs on how to maintain open lines of communication, involve employees in decisions, and provide employees the autonomy they need to do their best work

Understand how recognition drives employee engagement and how you can use this phenomenon to enhance your company’s culture

Chapter 1

The Quest for Engagement

In This Chapter

Uncovering what employee engagement is

Recognizing why engagement is important

Exploring ways to best impact engagement

Employee engagement has become an ever elusive holy grail in the management of human resources. It seems that the more companies strive to attain it, the more it slips from their grasp. But the quest continues because the topic is too important to ignore. Without an engaged staff, managers have a tough time accomplishing anything‚ let alone the best work possible. To reach and surpass business goals, managers and executives must make sure their employees are active, inspired, and feel good about their work.

Despite its importance, few organizations understand what employee engagement is and how it can drive business outcomes. According to the Aberdeen Group (a research firm specializing in employee engagement), engagement levels are dangerously low for many organizations. Now is the time to fix that. In this chapter, I give you a general overview of employee engagement and explore how some of the best organizations are addressing this topic with much success.

Why Engagement Is Important

Some say that employee engagement is simply the use of discretionary effort by employees. Others say it’s all about employee connection or productivity or retention. Still others say that it’s simply a score on a survey. I feel employee engagement is the alignment of individual and organizational goals and values to better drive business results.

Engagement leads to productivity

As human resources consulting company Towers Watson has noted, “Four out of every five workers are not delivering their full potential to help their organizations succeed.” A big reason for that is that workers aren’t fully engaged. According to the Gallup Organization, when you compare nonengaged employees to highly engaged ones, you see that the highly engaged employees are

27 percent less prone to absenteeism

62 percent less likely to be involved in job accidents

51 percent less likely to leave their jobs

31 percent less likely to leave in high-turnover organizations

Organizations that make employee engagement a priority see increased organizational productivity, flexibility, and employee retention. Productivity doesn’t depend on the number of hours someone spends at work; what really matters is how engaged your employees are during those hours. Employees who are engaged in their work have a greater desire to work harder and are thus more productive.

Engagement creates trust

Most organizations need greater flexibility and agility to handle a changing competitive landscape. Employee engagement creates trust between the organization and its employees so that employees are more apt to be flexible and adapt to changing business circumstances and needs.

Sixty-five percent of hires in a recent year were contingent employees, that is, part-time or project-based workers. This trend is projected to represent 30 to 50 percent of the workforce in the future. In addition, 75 percent of all current organizations have employees who work remotely, and 45 percent of companies anticipate increasing that number. This increase in independent workers is forcing organizations to consider how best to manage both full-time and contingent workers within the same organization. Regardless of how their work is structured, organizations will continue to need workers who are engaged and dedicated to do their best to meet or exceed the needs and expectations of their jobs (I talk more about engaging contingent and other nontraditional workers in Chapters 4 and 5).

Engagement helps you retain top talent

As the U.S. economy continues to improve, and as current employees seek new job opportunities, holding on to talent will be critical, and doing so can have a major impact on the success of any organization. Engaged employees are more likely to stay longer in their jobs and bring resilience to their organizations. Top employees who are truly engaged remain more committed to staying in their organizations and are less willing to seek other opportunities. Head to Chapter 17 for more on how to better engage and retain high-potential employees.

A few definitions

Here are a few key terms related to employees and the workplace that you’ll see throughout this book. If you are uncertain of their definitions, read on:

Engagement: The simplest definition is tapping into employee discretionary efforts, that is, an employee’s willingness to go above and beyond in doing his or her job. A definition that’s a bit broader is offered by Wikipedia: “Employee engagement is a property of the relationship between an organization and its employees. An ‘engaged employee’ is one who is fully absorbed by and enthusiastic about their work and so takes positive action to further the organization’s reputation and interests.

Recognition: Recognition is a positive consequence provided to a person for a behavior or result. Recognition can take the form of acknowledgment, approval, or the expression of gratitude. It means appreciating someone for something he or she has done for you, your group, or your organization. You can give recognition as someone strives to achieve a certain goal or behavior or upon completion of that goal or behavior. Using recognition, organizations can build engagement and drive success for the company, including all stakeholders. Recognition comes in all shapes and sizes, but the major categories of recognition include the following:

Interpersonal recognition: A personal or written thank you from one’s manager or peers.Social recognition: Acknowledgement, public praise, or thanks provided on social media such as Facebook, LinkedIn, or Twitter.Tangible recognition: A certificate, plaque, trophy, paperweight, coffee mug, or other memento.Intangible recognition: The granting of more involvement in decision-making, autonomy, flexibility, or choice of working assignment.

Reward: Something with monetary value (but not necessarily money) that is provided for desired behavior or performance, often with accompanying recognition. A reward can be an item or an experience. Harvard Business School professor Rosabeth Moss Kanter defines a reward as “something special — a special gain for special achievements, a treat for doing something above-and-beyond.”

Incentive: Recognition or a reward that is promised in advance for an anticipated achievement that meets certain criteria. Incentives create anticipation and excitement and thus can result in stronger, clearer motivation.

Motivation: The internal human energy available to inspire a person to act.

Motivator: Anything that increases motivational energy.

Demotivator: Anything that reduces motivational energy and/or triggers negative behaviors.

Looking at Factors Impacting Employee Engagement

There are many factors that impact the design, rollout, and effectiveness of employee engagement efforts. Here, I present an overview of six drivers of employee engagement; in Chapter 2, I discuss specific strategies and actions that companies are taking to most improve in these areas.

Employee fit: Alignment of employee’s goals with organizational goals

The number one factor impacting employee performance and engagement is how well an individual employee’s performance (and personal) goals align with the overall organizational goals, mission, and core values. This factor is so crucial, in fact, that it might be hard for you to gain support for engagement initiatives unless they are directly tied to performance goals that drive the organization’s success and profitability. Therefore, as a manager, you have to act as a liaison to connect the organization’s strategic mission with individual values and behaviors of employees.

Having a process in place by which employees and managers agree on performance goals helps drive significant organizational performance. Top-performing companies even support managers with tools and technologies to help initiate performance and goal-setting conversations that better result in this link between individual efforts and organizational goals.

Moving toward a more engaged, accountable workforce doesn’t happen overnight. It requires continual and ongoing effort to change ingrained beliefs and behaviors about the role of employees and leaders in an organization so that employees eventually can say — and truly believe — the following:

“I play a vital role in this organization and am responsible for what happens here.”

“If I see a problem, it is my duty to fix it.”

“My job is justified only if I make a valuable contribution.”

Employee communication

Communication is the lubricant of any well-run organization, and it’s especially vital for successful employee engagement. In my research, communication ranked highest (95 percent) of all motivational factors that employees most want in their jobs today. Communication needs to be consistent, bidirectional, involve all levels of the organization, and cover all lengths of time (here-and-now, upcoming, and long term).

Of course, managers and executives must be willing to receive and truly listen to honest and open feedback from employees regarding what they, the employees, most need to be engaged. All staff members should be informed about things critical to the company’s success and how they each can contribute to that success. Through strong communication, employees feel a sense of responsibility for the success of the organization and can better champion the organization’s mission and values, as well as its products and services.

Employee expectations

“What do you expect from me in my job?” is the starting point for all performance and engagement. Therefore, setting clear goals and expectations is vital. These expectations typically come from one’s manager. We know from research that the best goals have these characteristics:

They are few in number and specific in purpose:

After all, any of us can only focus on one thing at a time.

They are “stretch” goals:

That is, they are not too easy and are not too difficult. Instead, they have a good chance (some studies suggest about 70 percent) of being achieved with a dedicated focus by the employee.

They are collaborative:

They involve one or more discussions between the employee and his or her manager.

The days of just telling employees what to do and expecting it to be done as expected are pretty much over. To motivate employees to do their best work, you need to explain to them the “why” of their work — its significance and relation to the organizational goals and customers — and engage them by asking them what they expect of themselves (and of you, their manager!). The process of collaboratively setting clear employee expectations creates a strong bond and motivation between managers and employees.

Employees today are inherently motivated to do a good job where they work. I’ve never yet met an employee who gets up in the morning and says, “I hope I make a mess of things at work today!” They want to help the organization be successful and prosper as best they can, but they can’t do this in a vacuum. They need the leadership and support of management to help create the context for their success.

Employee support

Studies have shown that the most important relationship for an employee at work is the relationship between the employee and his or her direct manager. “If you have a good boss, you have a good job” rings true around the world. If employees don’t have support from their managers to be fully engaged, they won’t fully engage. Therefore, as a manager, your primary responsibility is to support your employees. This could mean modeling engagement and recognition, being there when they want or need to communicate, being available to discuss problems, finding ways for your employees to get extra training and development, and so on.

As a manager, you are also the primary communication link between your employees and the rest of the organization and, as such, can help employees develop so that, over time, they can take on new roles and responsibilities in the organization.

Employee development

Although all development is self-development — that is, employees have to have the ambition, motivation, and skills to want to learn new things in their jobs — your employee engagement strategies should incorporate development opportunities for employees. In most organizations, the role of employee development increasingly falls to one’s manager, with the human resources and training and development departments providing guidance as needed.

Employees are more likely to invest in an organization that invests time, energy, training, and so on in them. Career development is the way individuals manage their career paths. It requires the involvement of their managers and others in the organization to help structure opportunities for their learning and growth. Career development is thus a collaborative effort between the organization and the employee that, ultimately, creates greater engagement.

Employee recognition

Employee recognition is fundamental to ongoing support and motivation of any individual employee or group. As I explain in the upcoming chapters, the key to driving an engagement culture is to systematically recognize employees based on their performance. Although money and other forms of compensation are important to employees, what tends to motivate them to perform at their highest levels are the thoughtful, timely, personal kinds of recognition that signify true appreciation for a job well done. Yet managers and organizations struggle to create an organizational culture that systematically recognizes employee performance when it happens. This book will help you to address that challenge.

Employee recognition programs are quickly becoming one of the fastest growing areas of talent management and a key driver of business success.

I discuss employee recognition extensively throughout this book, and I examine the link between recognition and employee engagement much more thoroughly in Chapter 3.

Why Employee Engagement Is So Elusive

As indicated in the introduction of this book, the percentage of engaged employees in the workforce has remained roughly constant at about 30 percent for at least the last 20 years, even though an increasing amount of time, energy, focus, and financial investment has been exerted annually to expand that percentage. Why is this?

Assuming that organizations sincerely do care about their employees and not just about business success and profits, four reasons come to mind: 1) measured engagement variables are too intangible and subjective, 2) the focus of corrective actions are misplaced, 3) one size does not fit all, and 4) the management of change is too complex.

Measured variables are too intangible

Assessing engagement often involves measuring intangible variables, such as employee perceptions, and this may explain why engagement has lagged. Measuring individual perceptions is a slippery slope. The scoring is subjective and can vary due to many circumstances, yet the aggregate scores are treated as objective facts.

How do you systematically impact employees’ perceptions of engagement variables like "At work, my opinions seem to count." A company can do 100 things that it hopes will impact employees’ perceptions with no guarantees that any of those efforts will work. Quite likely, the company would need to do different things for different people to get a more favorable response. One person may just need to have a comment validated by a manager or executive ("Great insight, Gary!"), while another employee may not believe his opinion counts until a manager acts on the input or idea that was provided.

These observations may explain why organizations are moving away from traditional engagement surveys as the primary means of managing engagement strategies. Although surveys are a valuable way to gauge engagement levels, they do not always yield the kind of information that enables organizations to improve their recognition and engagement efforts. In Chapter 8, I talk more about how to measure recognition and engagement in meaningful and useful ways.

Corrective actions are misplaced

Measuring one set of variables but then focusing elsewhere to try to impact those variables seems like a fool’s errand, yet this is exactly how most engagement strategies are structured. Placing the onus of action on the organization and its management rather than the employees themselves with managerial support is a no-win proposition.

Suppose, for example, that you ask employees, “Are you using your full potential at work?” and they report, “No, I am not.” How can any manager alone fix that situation? Any potential solutions will at best be a guessing game, and it makes it a little too easy for employees to report, “No, you still haven’t got it right — try again” the next time they are surveyed.

Notice how the picture changes if you recast the question to, “Are you taking measures to use your full potential at work?” The focus for change is now on those individuals whose negative perceptions were the driving force behind your decision to take action to begin with.

A better strategy is to focus on the behaviors you want to see more of in employees. You can do that by systematically recognizing and reinforcing behaviors that have the greatest impact on this particular variable.

When writing your engagement survey questions, consider changing the focus of the questions from being passive to being active so that the questions focus more on your employees’ actions. Instead of a statement like, “I’m given adequate information on issues of importance to my job by management,” include this statement: “I seek the information I most need to do my job.” This rewording puts employees front and center in driving those variables you are most trying to impact. Unless you place focus on the actions of those who are reporting the need, you’ll end up chasing potential solutions indefinitely.

One size does not fit all

Another challenge of engagement programs is the tendency to have a one-size-fits-all approach to engagement and, particularly, to recognition. Companies put in cool programs to drive engagement that are created around the things the person or committee planning the programs finds motivating. Yet, research shows that no motivation strategy or incentive tends to appeal to more than 40 percent of a typical company’s employee population. And often, the organization only has the budget to create a recognition program that can appeal to 70 percent of the employee population.

Engagement strategies thus need to be individualized around the personal motivations of each employee, and every manager needs to make the necessary connection with those employees that report to him or her. If you hire a workforce that is universally motivated and engaged by the same approach, that is great, but when does that ever happen in real life? Many companies assume everyone is motivated equally by the same things (such as greater pay), which we know is not the case at all.

Management of change is too complex

As you look at the key factors that impact employee engagement (refer to the earlier section “Looking at Factors Impacting Employee Engagement”), they are each relatively clear and are elements that you can easily focus on for improvement. Often, however, managers and executives make two key mistakes:

Over-complicating these issues, sometimes to the point of measuring one thing but focusing on something completely different as a potential solution.

Being too ambitious about what they can really change in any given time period.

The result of these errors? The impact of any actions taken become blurred or diminished, and the degree of complexity explodes. The problem is compounded when you overlay the solution on your organization’s annual planning and budgeting process, and the speed of change grinds to a halt.

To combat these tendencies, select one thing to focus on and do it right. Clearly focus on a critical area for improvement and then strive to make true inroads in changing that dimension. You’ll move much closer to being a culture of engagement if you do a deep dive on just one variable and stick with it over a significant period of time rather than trying to improve a dozen variables across the board. The further your focus drifts from the variables you are specifically measuring, the fuzzier the results you are apt to obtain, and you’ll end up about where you started, with no discernable improvement, year after year.

Much has been made over the years of the service-profit chain model where engaged employees lead to engaged customers. However, what is often overlooked is the reverse of this relationship. One research study showed customer satisfaction impacted employee engagement at a much greater rate than the opposite. If an otherwise engaged, motivated employee is constantly dealing with frustrated customers, the employee’s engagement level drops quickly. Gallup used to say that if you put a good employee in a bad system, the system wins every time. Employee surveys often ignore these cultural aspects and focus more on the employee’s internal satisfaction. For example, are employees empowered to resolve customer concerns on the first contact? Are employees forced to deal with policies that frustrate customers? Do salespeople promise things they can’t deliver? These, and other cultural factors, can make or break employee engagement.

Engagement: A Process for Improvement

The best way to think about planning, executing, and improving engagement is a concept I draw from the work of W. Edwards Deming and the total quality management movement. It’s called the Shewhart Cycle, and I’ve adopted it here as the PDRI cycle, which stands for “Plan, Do, Review, and Improve.” Read on to find out how it applies to improving your engagement culture and head to Chapter 8 for more details on this approach.

Plan

When you think of planning, you likely envision something elaborate and well-documented, but that is not necessarily what I’m talking about here. A plan can also simply be a desire or intention to take a particular action. You might just ask yourself the question, “If we could do one thing to most improve our department’s or organization’s effectiveness, what would that be?” or “How can I best make a motivational impact on my employee or work group?” Obviously, the more complex the activity, the more important a formal plan will be, but regardless of the complexity, the greater the commitment to action you have, the more likely the plan will be implemented.

Start with the end in mind. What is the end-state that you want to create in your organization? Focus on desired behaviors and actions needed to move toward that end state. Create measures that will track progress toward your desired end state.

Until a skill or behavior is habitual, some planning is necessary. Although about 80 percent of our behaviors are habitual and require little or no thought, all new behaviors require at least some amount of advance thought, planning, and commitment to instill the behavior in individual practice.

Do

Doing turns intention into action. Many people have good intentions but never follow through on them. If intentions alone were sufficient, everybody would be successful! The best performers understand the difference between intention and performance; they are action-oriented. They know that without focused action everything is just theory. Although their actions at first might be ineffective, they know that it is important to get the learning-by-doing process started. As the famous Nike advertising slogan proclaims, “Just do it!” Systematically recognize and reinforce those behaviors and actions that you’ve identified could most impact the success of your goals.

Review

After you have engaged in a recognition activity, review it to see what kind of effect it is having. Gaining feedback through a program review is a critical step in the learning process. A review answers such questions as

How well was the recognition received by the recipient? How did it make him or her feel?

Was the objective of the recognition met?

Were there any unintended positive or negative consequences?

With an evaluation incorporating the metrics you established beforehand, access what worked well and what didn’t. This review can be elaborate or very simple. Sometimes you’ll do this review yourself, based on direct observation, and sometimes it can be a larger evaluation effort that a group takes on with input from employees, management, and any service providers that may be helping you.

After your review, you can do one of three things: Stop giving recognition (fortunately, most people will not choose this option), continue to give it exactly the same way going forward (this option means you felt your efforts were successful), or decide to learn from your experience and improve the way you give recognition to others (the most likely scenario).

Success is an opportunity for positive reinforcement, but we usually learn more from behaviors that fall short of the mark, so failure is an opportunity to learn and improve.

Improve

In this step, you implement the lessons you received during your review, making improvements in your own performance. The more you engage in an activity, review the results of your actions, and improve on them, the better you become at that behavior. Using the PDRI model and the additional recognition knowledge contained in this book, you will get better and better at giving recognition. As you recognize others more often, you’ll become more competent and confident in doing so, increasing your skill and effectiveness. The PDRI cycle helps you get better until recognition becomes an ingrained habit. Adjust your plan accordingly and repeat as necessary.

Routines are good, but they do have a downside. They can seem mechanical, insincere, or out-of-touch. Consider these examples:

The president of a large manufacturing company walks through his plant once a month to say hi to his people. This makes him feel like he’s a great manager. If you ask his people, however, they see this behavior as little more than a joke. Says one front-line worker, “Each month, Mr. Johnson asks me how my family is. And each month, I tell him ‘I’m still not married, Sir.’”

In another company, employees report that upper management tends to recognize them more as a show for the benefit of their peers rather than for the employees themselves. In their management team meetings, company managers will talk about the great job one of their employees is doing, but the comments rarely get back to the actual employee being acknowledged.

In another organization, employee-of-the-month awards are handed out in management meetings, at which the employees being recognized are seldom if ever present. The manager running the meeting traditionally concludes his congratulatory remarks with a comment along the lines of, “If someone runs into Larry, please tell him that he was named employee of the month.”

Who best drives employee engagement?

Who should be responsible for employee engagement in the organization? Ideally, senior leaders and the HR department should design and lead the efforts, and then managers should implement them. But who is the “owner” of the effort moving forward? Who should drive the efforts?

According to the Aberdeen Group, for 63 percent of the Best-in-Class organizations the group surveyed, CEOs are the primary champions of successful programs and value motivating employees and supporting engagement initiatives. Yet many CEOs aren’t always in the best position to own and execute the organization’s engagement strategy, so it often falls to the managers themselves with the help and guidance of the human resources department. When managers are responsible for employee engagement, they are more likely to link these strategies to performance and results desired by the organization.

Ultimately, organizations have to select drivers that make the most sense for their companies. The key to making sure those driving the initiative are successful is to ensure that they have the necessary resources and authority and embrace the task.

Keeping a Clear Focus as You Improve Your Engagement Efforts

A number of organizations have contacted me for help in improving their focus on just a single variable of employee recognition. They know they need help, based on survey responses to questions such as “I feel valued for the work I do.” My first task is to get them to realize it’s difficult to change anything based on feedback from just a single variable. It’s like trying to guess the shape of a golf ball by looking at a single dimple. You need to expand on that variable to develop a more robust understanding of what is needed. In this case, what does recognition mean to those answering this question? Who is providing (or not providing) recognition? How often is recognition provided? Does recognition vary over time? Does recognition vary with different circumstances? At the very least, you should create an expanded index of variables that all lead to better understanding what employee recognition means for your employees.

I’ve seen people (somewhat comically) try to interpret what a variable means without this broader understanding of the context (“I think what employees are saying by making this variable low is that … ”), but why guess on the meaning of the variables you are measuring when you can simply clarify by asking additional questions, conducting some employee focus groups or a pulse survey, or all of the above? The further you drift from the specific variables you are measuring, the more difficult impacting those variables will be.

The thing to remember is that not only are there all kinds of work-based variables to measure and consider, but there are also personal or demographic variables that play into what makes engagement successful. In the chapters that comprise Part V, I go into detail about different issues that impact engagement and recognition.

Chapter 2

Strategies for an Engaged Workforce

In This Chapter

Encouraging employees to take initiative

Increasing employee autonomy

Focusing on career growth and development

By being proactive, positive, focused, and forward-looking, managers can engage and inspire employees — and employees can inspire and engage themselves and their coworkers — in practical ways that yield real results and allow their companies to become stronger, more profitable, and more competitive in even the most difficult marketplace.

Taking control of their circumstances helps employees take control of their jobs — and their lives — and makes positive things happen. Companies that have had increasing engagement scores over the last decade have revealed a short list of key variables attributing to those results, and this chapter focuses on those variables. Here, I show you how to create a framework for managing employees in positive and practical ways to overcome negative times and circumstances. I offer a strategy, a process, and key factors critical to success for you, all supported with examples, techniques, and case studies of how other managers have succeeded in fostering more engaged employees.

Creating a Clear and Compelling Direction

All performance starts with clear goals and expectations. The starting point of any effort to improve or sustain employee engagement is giving employees a clear and compelling vision. If employees don’t know (or aren’t inspired by) what the organization is doing, they find summoning up the motivation to succeed more difficult. Frances Hesselbein, president of the Leader to Leader Institute, once put it this way: “No matter what business you’re in, everyone in the organization needs to know why.”

People who perform well feel good about themselves. When employees reach or surpass personal or company goals, their level of engagement is typically at its highest, which then affects other areas of performance. If this spills over to better delivery of customer service or higher-quality products and services, that can then, in turn, have a direct impact on the loyalty of customers.

Assessing employees’ understanding of your organization’s mission and purpose

Ask employees what the mission and purpose of the organization is. If they don’t know, or if you get a different answer from each person you ask, chances are things have drifted or perhaps haven’t been clear for some time. Use this opportunity to revisit your purpose.

To gain clarity about the organization’s mission, management guru Peter Drucker suggests that you ask these five questions to get at the core of your business:

What is our mission?

Who is our customer?

What does the customer value?

What are our results?

What is our plan?

Clarifying your vision (and revisiting this process periodically) is useful for deciding what’s most important for the organization to focus on to be successful. In addition, the result needs to be compelling enough to inspire everyone. “A vision is not just a picture of what could be; it is an appeal to our better selves, a call to become something more,” says Harvard professor Rosabeth Moss Kanter. From that vision, you can shape your unique competitive advantage, those aspects that you have to offer your customers that your competition does not. This advantage represents your strengths in the marketplace that you most need to capitalize on to be successful.

Modifying strategies to meet goals

After you clarify your vision for your group and start to revitalize your goals, you should analyze what’s currently working and what’s not working for the business. For example, established customers may be cutting back on using the services of your firm, but what new clients have recently started to invest with you? What do those new clients have in common, and how can you approach similar clients in the marketplace? Changing times call for changing strategies to meet your company’s goals. Engage employees’ help by seeking their input and ideas for improving business operations, saving money, or better serving your customers.

A company adapts to changing times

My spouse worked for a computer equipment and software company based in San Diego that saw its future orders drop significantly when customers no longer had the funds to purchase capital equipment. The firm laid off about 10 percent of its employees and froze salaries, but company leaders knew that these decisions offered only a short-term fix for a declining cash flow. Top management got together with the firm’s sales representatives and brainstormed what could be done to address the situation, as well as what the competition was doing in response to the situation. Here’s what they came up with:

Changing the pricing model to include new options for payment that didn’t require the customer to make an expensive upfront purchase of equipmentOffering a new, software-only solution that allowed customers to run needed applications on computers they already owned or on equipment they wanted to purchase from other vendorsFinancing the purchase of its customers’ equipment so that the customers didn’t have to initially tap into resources from their capital budgetsTargeting new markets, such as the federal government (which had more available funds), which the company had never focused on before

All these changes required everyone in the organization to help think through implications for the business and make adjustments accordingly. The result was that the firm was able to get new clients who took them up on their new offerings. Overall, the approach helped the firm generate new sales revenue from new clients in a difficult financial time.

Opening Lines of Communication

People want to know more than just the information necessary to do the work they’re assigned; they also want to know what their coworkers are doing and how the organization is doing. To keep your workforce engaged, communicate information to employees about the organization’s mission and purpose, its products and services, its strategies for success in the marketplace, and even what’s going on with the competition.

In my research, the highest-ranking variable that 95 percent of employees want most from their managers is direct, open, and honest communication. Also, the Families and Work Institute in New York did a study — the National Study of the Changing Workplace — that revealed the importance of nonmonetary factors on employees’ choice of their current employers. The top-ranked item on the list was “open communication.”

Good information, bad information, or no information?

Employees want and need to know what’s going on within the organization, even if the information isn’t always positive. There’s nothing wrong with being honest with employees when the firm is struggling; doing so can lead to increased teamwork and dedication, especially if the bad news is also an opportunity to brainstorm and communicate with employees about ideas and plans for turning things around. Bringing employees into the loop can instill a greater sense of involvement and responsibility, which ultimately leads to increased feelings of value and trust among employees.

I remember working with a defense contractor that was very guarded about sharing information with its employees. Everything was on a need-to-know basis. I asked for the rationale behind this practice and discovered that managers believed that if they told their employees something and it changed or turned out to be wrong, they, the managers, would look bad. I suggested that they give their employees that context and see if they still wanted to hear the latest information, even if it may change. Of course, they (the employees) all did.

Simply telling employees what’s going on in the organization and providing them with the information they need to most effectively do their jobs is motivating. In addition, every time you communicate, you have a chance to recognize employees. Exchanging praise and recognition in newsletters, posting an “applause” bulletin board on the company’s intranet, and commenting in meetings are just a few possibilities for formalizing communication about employee recognition.

Employing direct, two-way communication

Feedback sessions, departmental meetings, or companywide gatherings should ideally serve two purposes: to provide information and to gather feedback. To maximize employee engagement, keeping employees abreast of and asking their opinions about management’s goals and ensuing plans is imperative. Something as simple as a companywide meeting during which you present the state of the organization to all employees can make a world of difference in easing employee tensions and fears.

When discussing major issues like organizational changes, always host a dialogue rather than a lecture, and encourage questions. And if any key updates are going to be shared publicly outside of the organization (for example, in a press release), make sure you tell your internal employees first and invite feedback. Your employees have to feel as though they have the freedom to express their fears and concerns and the chance to receive honest and informative responses.

Exploring communication techniques

Methods for communicating with employees vary depending upon the situation. Group settings require different interaction than one-on-one communication. Following are some suggestions for how to best communicate with individuals and groups.

Individuals

Here are some techniques for effectively communicating with an individual employee:

Engage in periodic one-on-one meetings with each employee.

Offer personal support and reassurances, especially for your most valued employees.

Provide open-door accessibility to management.

Invite employees to write anonymous letters to top management about their concerns.

Groups

Here are some communication techniques you can try to keep information flowing in groups:

Conduct town hall meetings.

Host CEO-led breakfasts and/or brown bag lunches.

Maintain a 24-hour “news desk” on the company intranet.

Provide periodic state-of-the-union updates on the business.

Be open and honest in explaining the situation and challenges going forward.

Take questions in advance of a meeting or allow them to be written on index cards, anonymously.

Record meetings and distribute the proceedings to those who are unable to attend.