4 Ways High Employee Engagement Drives Business Results
It's a broadly proven and highly researched fact that high employee engagement ratings correlate to improved business performance. Gallup, an American research-based, global performance-management consulting company, reports companies who have achieved top quartile engagement ratings perform significantly better across multiple business metrics, versus bottom quartile engagement companies. A Gallup study of 50,000 businesses found that organizations at the 99th percentile of engagement have four times the success rate of those in the bottom half. With good reason, organizations around the globe have begun to jump on the engagement train. Unfortunately, there are far too many companies implementing a survey process without the appropriate structure and follow-through commitment.
The 4 Key Drivers of Engagement
There are four critical components that drive employee engagement. Question sets need to focus on these four areas to assure there is a correlation between engagement improvement and business performance.
1. Manager/Leader Impact - This category is what I call the “Big Mac” of employee engagement performance. We all know by now that managers effect just about everything in an organization. Gallup's research in the 2015 Strengths Meta-Analysis found that "manager impact" is primarily responsible for employee engagement levels.
2. Job/Role Alignment - The common mistake around alignment is that management falsely thinks alignment is achieved through employee technical strengths and experience as compared to the scope of the role. True "alignment" is based on matching up how an employee is naturally "wired" with what the job calls for from a behavioral drives make-up. Getting staff in roles they are naturally suited for is the only way to truly achieve alignment. Josh Bersin (Principal and Founder, Bersin by Deloitte), in his article “Employee Retention Now a Big Issue: Why the Tide has Turned” (Aug. 2013) notes that “When we look at retention … compensation plays a role, but not as much as you may think. Job Alignment is critically important.
3. Organizational Culture - Organizational culture determines how and why things get done in your organization. It is a direct reflection of work environment, behaviors and values, trust, openness, opportunity, inclusion and communications. Employee engagement is a direct outcome of a high-performing company cultures. Employees feel connected. They feel involved. They feel supported.
4. Team Dynamics - Team performance has a direct effect on employee engagement. We all know what it's like to work on a dysfunctional team. Disengagement flows like a river, out of a low functioning team and results in increase turnover, lower productivity, and conflict. Having a true understanding of how your teams are not only producing results, but what the true dynamics are within those teams will lead you to critical clues in driving higher employee engagement levels.
Embarking on the Employee Engagement journey requires a commitment to change on sustained and long-term basis. To get it right, it is critical to focus on these four critical pillars of that drive employee engagement.