{"id":70,"date":"2011-12-11T10:18:19","date_gmt":"2011-12-11T16:18:19","guid":{"rendered":"http:\/\/sanfordrose.wpengine.com\/somerset\/2011\/12\/11\/why-employee-engagement-matters\/"},"modified":"2011-12-11T10:18:19","modified_gmt":"2011-12-11T16:18:19","slug":"why-employee-engagement-matters","status":"publish","type":"post","link":"https:\/\/sanfordrose.com\/kempfgroup\/why-employee-engagement-matters\/","title":{"rendered":"Why Employee Engagement Matters"},"content":{"rendered":"

Engaged employees can make a difference<\/strong><\/p>\n

The May\/June 2011 edition of the SRA Update explored non-monetary factors that motivate employees in their career decisions. These factors may also play an important role in combating another problem facing many organizations worldwide \u2013 disengaged employees. Beyond increased turnover, apathetic and disengaged employees create a host of other issues for companies, like decreased productivity and employee morale.<\/p>\n

Widespread Global Issue<\/strong>
\nIn a recently published survey, Mercer LLC found that 32% of employees in the United States are seriously considering leaving their company and another 21% would not commit to staying or leaving.\u00a0 Therefore, over half of the employees in the United States are not committed to their current employer.\u00a0 This phenomenon is not unique to the US.\u00a0 The Employee Engagement Report 2011 published by BlessingWhite, Inc. found that only 31% of employees worldwide are engaged and only 61% of employees worldwide plan to remain with their current organization for the next twelve months.\u00a0 According to the BlessingWhite report, India had the highest percentage of engaged employees (37%) and China the least (17%) with North America and Europe in the middle (33% and 30% respectively).\u00a0 These findings make it clear that many organizations around the world are faced with the challenge of motivating and inspiring the majority of their workforces.<\/span><\/p>\n

The Grass is Always Greener . . .<\/strong>
\nObviously, career opportunities presented by other employers will be attractive to disengaged employees.\u00a0 In an April 2011 publication entitled Talent Edge 2020: Building the recovery together, Deloitte reported that 65% of employees were either actively or passively looking to leave their current employer.\u00a0 Organizations with low levels of employee engagement are likely to experience higher rates of turnover.\u00a0 There have been numerous studies detailing the costs of employee turnover.\u00a0 If a company chooses to replace a former employee, it will incur additional expenses in recruiting, training, and potentially, compensating the replacement.\u00a0 In addition, a search can take months, which means the company will experience a loss in productivity unless remaining employees are able to effectively fill the void left by their former colleague.<\/p>\n

Longer Term Implications<\/strong>
\nWhile lack of commitment to one\u2019s current employer is a problem across all generations, younger employees are less likely to be engaged.\u00a0 In particular, \u201cGeneration X\u201d (ages 32 \u2013 47) employees express the most frustration with their current positions. The aforementioned Deloitte survey reported that only 28% of Generation X employees plan to stay with their current employers. Many employees in Generation X hold managerial and executive level positions.\u00a0 Companies have invested in these employees, and in many cases, Generation X employees figure prominently in corporate succession plans.\u00a0 Losing these employees and finding suitable replacements can have long term ramifications for a company.<\/p>\n

Increased Importance of Productivity<\/strong>
\nThe typical definition of employee engagement includes the level of commitment exhibited by an employee and the contributions the employee is willing to make.\u00a0 A good number of companies have chosen not to replace many of the employees laid-off during the recession.\u00a0 These companies must rely more heavily on the remaining employees which makes employee productivity critical to their success.<\/p>\n

If, as recent studies suggest, only a small percentage of all employees are actually engaged, companies with \u201clean\u201d workforces may experience more pronounced productivity problems.\u00a0 Oftentimes, employees searching for new opportunities will use more vacation and personal time, and even when physically present, they may have mentally \u201cchecked out.\u201d\u00a0 In addition, employees who are just \u201cgoing through the motions\u201d are probably not very productive either. Instead of seeking solutions or improvements for the company or striving to exceed expectations, these employees are content to put forth the bare minimum effort necessary to keep their jobs.\u00a0 Lack of effort does not normally translate into growth for a company. In particular, leadership at a company in a client or customer service industry with unenthusiastic employees will likely see a negative impact on the bottom line.<\/p>\n

A Disruptive Force<\/strong>
\n\u201cActively disengaged employees\u201d not only do not care about their jobs but are openly hostile or negative regarding the organization or its management.\u00a0 In addition to their own lack of productivity, the activities of actively disengaged employees can adversely affect overall employee morale leading to more apathy and disengagement.\u00a0 Even worse, actively disengaged employees may also sully a company\u2019s reputation.\u00a0 These employees tend to convey their negative viewpoints to anyone who will listen, inside or outside of the office.\u00a0 Social media sites, blogs, and other \u201cWeb 2.0\u201d platforms provide even larger forums which can create real problems for an organization, not only in recruiting and retention efforts, but also with customers and clients.\u00a0 In many cases, decision makers at a company may find that the benefits from terminating an actively disengaged employee outweigh the costs incurred in recruiting and training a replacement.\u00a0 However, a large number of actively disengaged employees or a high frequency of employees reaching that point are symptoms of a much larger systemic problem.<\/p>\n

Why So Much Frustration and Apathy<\/strong>
\nMany of the recent surveys on employee engagement also examined the reasons behind the high levels of employee dissatisfaction.\u00a0 Although results differed by region, gender, generation, and other factors, there were common themes.\u00a0 Not surprisingly, several of the organizational shortcomings noted are consistently identified by employees as important motivating factors in their career decisions. Lack of career advancement opportunities, distrust of managers or executives, lack of communication from company leadership, lack of a clearly defined plan or direction, and lack of recognition or appreciation are all reasons cited for decreased employee engagement.<\/p>\n

Tangible Results<\/strong>
\nEmployee engagement seems like a \u201cwarm and fuzzy\u201d concept, and leaders focused on bottom line results may hesitate to give it much consideration.\u00a0 However, taking steps to improve employee engagement can have positive tangible results \u2013 from decreased turnover and the costs associated with that to increased productivity and ultimately, improved performance.\u00a0 The Employee Engagement Report 2011 from BlessingWhite cited several studies from other research and consulting organizations which found a positive correlation between employee engagement and financial performance.\u00a0 The most recent findings of Gallup, Inc. show that that organizations with the highest levels of employee engagement worldwide enjoyed earnings per share 3.9 times greater than those organizations with lower employee engagement in the same industry. (See: www.gallup.com\/consulting\/52\/Employee-Engagement.aspx)<\/p>\n

Recruiting Future Engaged Employees<\/strong>
\nIn recruiting, it is vitally important to find a candidate to fill an open position, who not only has the requisite skills and experience, but who also will be a great fit at the company and become an engaged and productive employee.\u00a0 When conducting a search assignment, a Sanford Rose Associates\u00ae executive search consultant probes deeper to find a candidate who is a great match for the position and the company by using our proprietary Dimensional Search\u00ae process to match (1) the client\u2019s expectations for the position with those of the candidate, (2) the technical requirements for the position with the candidate\u2019s education and background, (3) the candidate\u2019s experience and personality with the company\u2019s culture, (4) the chemistry between the hiring manager and the candidate, and (5) the candidate\u2019s experience and prior results with the client\u2019s expectations for the major, measurable initiatives of the position. Engaged employees can make a real difference in the success of a company, and for more than 50 years, Sanford Rose Associates\u00ae has been committed to \u201cFinding People Who Make A Difference\u00ae\u201d for its clients.
\n\u2014Rick Carter<\/p>\n","protected":false},"excerpt":{"rendered":"

Engaged employees can make a difference The May\/June 2011 edition of the SRA Update explored non-monetary factors that motivate employees in their career decisions. These factors may also play an important role in combating another problem facing many organizations worldwide \u2013 disengaged employees. Beyond increased turnover, apathetic and disengaged employees create a host of other issues for companies, like decreased productivity and employee morale. Widespread Global Issue In a recently published survey, Mercer LLC found that 32% of employees in the United States are seriously considering leaving their company and another 21% would not commit to staying or leaving.\u00a0 Therefore, over half of the employees in the United States are not committed to their current employer.\u00a0 This phenomenon is not unique to the US.\u00a0 The Employee Engagement Report 2011 published by BlessingWhite, Inc. found that only 31% of employees worldwide are engaged and only 61% of employees worldwide plan to remain with their current organization for the next twelve months.\u00a0 According to the BlessingWhite report, India had the highest percentage of engaged employees (37%) and China the least (17%) with North America and Europe in the middle (33% and 30% respectively).\u00a0 These findings make it clear that many organizations around the world are faced with the challenge of motivating and inspiring the majority of their workforces. The Grass is Always Greener . . . Obviously, career opportunities presented by other employers will be attractive to disengaged employees.\u00a0 In an April 2011 publication entitled Talent Edge 2020: Building the recovery together, Deloitte reported that 65% of employees were either actively or passively looking to leave their current employer.\u00a0 Organizations with low levels of employee engagement are likely to experience higher rates of turnover.\u00a0 There have been numerous studies detailing the costs of employee turnover.\u00a0 If a company chooses to replace a former employee, it will incur additional expenses in recruiting, training, and potentially, compensating the replacement.\u00a0 In addition, a search can take months, which means the company will experience a loss in productivity unless remaining employees are able to effectively fill the void left by their former colleague. Longer Term Implications While lack of commitment to one\u2019s current employer is a problem across all generations, younger employees are less likely to be engaged.\u00a0 In particular, \u201cGeneration X\u201d (ages 32 \u2013 47) employees express the most frustration with their current positions. The aforementioned Deloitte survey reported that only 28% of Generation X employees plan to stay with their current employers. Many employees in Generation X hold managerial and executive level positions.\u00a0 Companies have invested in these employees, and in many cases, Generation X employees figure prominently in corporate succession plans.\u00a0 Losing these employees and finding suitable replacements can have long term ramifications for a company. Increased Importance of Productivity The typical definition of employee engagement includes the level of commitment exhibited by an employee and the contributions the employee is willing to make.\u00a0 A good number of companies have chosen not to replace many of the employees laid-off during the recession.\u00a0 These companies must rely more heavily on the remaining employees which makes employee productivity critical to their success. If, as recent studies suggest, only a small percentage of all employees are actually engaged, companies with \u201clean\u201d workforces may experience more pronounced productivity problems.\u00a0 Oftentimes, employees searching for new opportunities will use more vacation and personal time, and even when physically present, they may have mentally \u201cchecked out.\u201d\u00a0 In addition, employees who are just \u201cgoing through the motions\u201d are probably not very productive either. Instead of seeking solutions or improvements for the company or striving to exceed expectations, these employees are content to put forth the bare minimum effort necessary to keep their jobs.\u00a0 Lack of effort does not normally translate into growth for a company. In particular, leadership at a company in a client or customer service industry with unenthusiastic employees will likely see a negative impact on the bottom line. A Disruptive Force \u201cActively disengaged employees\u201d not only do not care about their jobs but are openly hostile or negative regarding the organization or its management.\u00a0 In addition to their own lack of productivity, the activities of actively disengaged employees can adversely affect overall employee morale leading to more apathy and disengagement.\u00a0 Even worse, actively disengaged employees may also sully a company\u2019s reputation.\u00a0 These employees tend to convey their negative viewpoints to anyone who will listen, inside or outside of the office.\u00a0 Social media sites, blogs, and other \u201cWeb 2.0\u201d platforms provide even larger forums which can create real problems for an organization, not only in recruiting and retention efforts, but also with customers and clients.\u00a0 In many cases, decision makers at a company may find that the benefits from terminating an actively disengaged employee outweigh the costs incurred in recruiting and training a replacement.\u00a0 However, a large number of actively disengaged employees or a high frequency of employees reaching that point are symptoms of a much larger systemic problem. Why So Much Frustration and Apathy Many of the recent surveys on employee engagement also examined the reasons behind the high levels of employee dissatisfaction.\u00a0 Although results differed by region, gender, generation, and other factors, there were common themes.\u00a0 Not surprisingly, several of the organizational shortcomings noted are consistently identified by employees as important motivating factors in their career decisions. Lack of career advancement opportunities, distrust of managers or executives, lack of communication from company leadership, lack of a clearly defined plan or direction, and lack of recognition or appreciation are all reasons cited for decreased employee engagement. Tangible Results Employee engagement seems like a \u201cwarm and fuzzy\u201d concept, and leaders focused on bottom line results may hesitate to give it much consideration.\u00a0 However, taking steps to improve employee engagement can have positive tangible results \u2013 from decreased turnover and the costs associated with that to increased productivity and ultimately, improved performance.\u00a0 The Employee Engagement Report 2011 from BlessingWhite cited several studies from other research and consulting organizations which found a positive correlation between employee engagement and financial performance.\u00a0 The […]<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[19,4,5,7,9],"class_list":["post-70","post","type-post","status-publish","format-standard","hentry","category-sra-updates","tag-employee-engagement","tag-human-resource-tips","tag-recruitment-news","tag-sanford-rose-associates-best-practices","tag-sra-update"],"yoast_head":"\nSRA Update - 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