Creating a Culture of Engagement Through Trust Barbara Schmidtman What is Engagement? *Taken from High Performance Culture Presentation, Lakeland HealthCare, Studer principle 2011 Global Engagement Report – Only 31% associates are engaged in their professions, (Nolinski, 2011) Disengagement is expensive for organizations! • Disengagement has been found to cost between $243 - $270 billion due to low productivity, (Esty, K., Gewirtz, M.) • Low levels of associate engagement cause net profit to fall by 1.38% and the operating margin fell by 2.01% over a three year period, (Esty, K., Gewirtz, M.) • Highly engaged associates outperform their colleagues by 20% – 28%, (Esty, K., Gewirtz, M.) • Disengaged associates cost approximately $1.7 million in annual safety costs, (Nolinske) Does TRUST impact engagement??? TRUST ? ASK YOURSELF…. If you trust someone, will you do more for them? If you trust someone, will you tell them more than if you did not trust them? Two-way feedback TRUST in Employee Engagement Leadership •Increased Productivity Career Development Understand Role in success Shared Decision Making (Esty, K., Gewirtz, M.) •Enhanced Organizational Performance •Greater Financial Success Culture of Engagement TRUST impacts all of these! •Retention of Valued Employees http://zanesafrit.typepad.com/zane_safrit/2011/04/employee-engagement-a-causalrelationship.html #2 http://zanesafrit.typepad.com/zane_safrit/2011/04/employee-engagement-a-causalrelationship.html GREAT LEADERS are NECESSARY (Kontakos, A. 2006) “To change minds effectively, leaders make particular use of two tools; the stories that they tell and the lives that they lead” (Gardner, 2006) How Does this Apply to Us? Regardless of our leadership role, personally or professionally we need to build trusting relationships! “To state the facts frankly is not to despair the future nor indict the past. The prudent heir takes careful inventory of his legacies and gives a faithful accounting to those whom he owes and obligation of trust” John F. Kennedy References Esty, K., Gewirtz, M. (2008). Creating a culture of employee engagement. www.boston.com/jobs/nehra/062308 Kontakos, A. (2007). Employee engagement and fairness in the workplace. Center for Advanced Human Resource Studies. 18-32. Retrieved February, 9, 2012. http://www.ilr.cornell.edu/cahrs/research/pubs/SpecialTopics /upload/EmployeeEngagementFinal.pdf Nolinske, T. (2011). Are you engaged. www.nbri.com