Employee Engagement Planning on a Super Tight Budget

November 16, 2011

What if I told you that your company could double its profit margin through employee engagement?  Would that make employee engagement a priority?  What if your profit margin only improved by 20%?  Still a priority?  If employee engagement is not a priority today, then it should be.  Your corporate talent has more to do with driving profitability and competitive edge than anything else in your company.   Engaged employees are more productive, more enthusiastic, and more effective than just competent employees.

Employee engagement is not the same as employee motivation.   If you have a workforce of engaged employees then employee motivation takes care of itself.  You don’t need expensive rewards and programs to foster engaged employees.  For little or no expense you can create an employee engagement culture that will improve employee morale and employee relations.  What it will take is some planning.

Company leaders can invest 30 days and follow four simple steps to plan for effective employee engagement.    There are few principals to keep in mind, however, before you start employee engagement planning.  First, don’t confuse employee engagement with employee involvement.  Only when employee involvement is focused on the company mission and passion will you get engaged employees.  Second, employee engagement is not employee relations.  Employee relations are a barometer of employee engagement.

To plan for employee engagement on a super tight budget, follow these four steps over the next 30 days.

  1. Survey Employees – Find out why they come to work.  What is it they want to contribute to the customers they serve?  Why is this meaningful to them?  You have to understand this to know how to help your team become engaged employees.
  2. Brainstorm – Hold a meeting with company leaders and key contributors.  Present the results of your survey.   Look at gaps between what employees want and what they are getting.  Remember you are looking for gaps in the meaningfulness of the work, not the benefits you provide.  Next, have the group brainstorm low/no cost ways to bridge these gaps.
  3. Prioritize – Review the brainstorm ideas and prioritize the ideas that will have the most impact on employee engagement.  Develop metrics to gauge the impact of these ideas.
  4. Implement and Test – Implement the number one priority over the next 30 days.  Measure the impact against the metrics you developed.  If you don’t get the results you expected, fine tune and try again.  Then move to the next priority.

Of course it would be more effective to get outside help to facilitate this process if your budget permits.  By following these four steps, however, you will start to raise the level of employee engagement and your profit margin.

Richard Yadon consults and speaks about employee engagement and other talent management issues. 


The Most Overlooked Fact About Employee Turnover Rates Revealed

October 26, 2011
Graph 2

What is employee turnover?  Conventional thought would tell you that the employee turnover ratio is hires compared to terminations over a period of time.  Certainly there are complex methods that tell you how to calculate turnover.  Companies spend a lot of money to find and understand staff retention rates.  A high attrition rate is expensive.  Staff retention has to be a priority for every organization.

I would suggest that the traditional methods that teach you how to calculate turnover are wrong!  Yes, they can tell you a mathematical ratio and, yes, that number is true.  But corporate leaders could be asking the wrong questions about their true retention rate.  Instead of asking “what are our employee turnover rates?” a better question is “What is employee retention?”  An employee doesn’t have to leave your company to stop working.  Recent surveys state that more than 50% of employees today have mentally or emotionally left their jobs.  To really understand your attrition rate you must factor this into how you calculate turnover.  A disengaged employee could cost a company more than a vacant seat.  To truly understand staff retention, employee engagement must be part of the equation.   Otherwise companies are fooling themselves into believing their employee turnover rates are simply a mathematical ratio.

The most overlooked fact about employee turnover is this; employee disengagement has to be part of employee turnover rates.  Find out who is in the wrong job (see my other posts about job analysis).  Add that number to your actual terminations.  Then you’ll truly understand your employee turnover ratio.

 

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The Number One Way to Fail at Motivating Employees

October 6, 2011

Are you still Fishing for employee motivation?   This was a popular employee motivation strategy several years ago.  There are lots of books on Amazon.com that will teach you about how to motivate employees.  Every business wants good employee relations and a happy, productive workforce.  Strong and positive employee morale is necessary for optimum productivity.  I can’t think of any client who has told me they didn’t want high employee satisfactory.  All companies work hard to motivate employees.

Corporate leaders and business owners have a lot of reasons to know how to motivate employees.  High levels of employee engagement make their jobs easier.  They want less stress in their employee relations.  They have profits to increase.   They want to sharpen their competitive edge.  They want to keep costs low and productivity high.  They want to generate more revenue.  They want, they want, they want…   Are you reading this?  They want to motivate employees for all their corporate reasons and this is why most companies fail in how to motivate employees.

Employee motivation, employee satisfaction, employee engagement, and employee relations will never improve if it is all about what the company wants.  No one is going to work to make the company better or to reach company goals.   Organizations will fail if they believe a slick, new “program” is the way to motivate employees.  Employees will only be motivated when they know what’s in it for them.   They will increase productivity only when their needs are met.   Incentives to motivate employees must be tied to what they value and desire.  Strategic employers know this.  They work hard to understand what makes their employees tick.  Only when employee values are linked to motivating incentives will companies succeed.


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