www.employeeengagement.com 781.239.8713 Employee Engagement – 5 Myths and Actions! Bob Kelleher & Stephanie Hogan The number one reason why people leave their positions is MANAGEMENT. When you lose a really good employee, it hits you like a root canal without Novocain. Don’t wait until you lose another company “rock star” before you start to practice EMPLOYEE ENGAGEMENT. EMPLOYEE ENGAGEMENT=Unlocking your employees potential to drive high performance There is good news. It is not rocket science. It does require a genuine desire for a healthy, positive company culture. Here are the 5 biggest myths about employee engagement: 1.) Employee engagement is HR’s role. 2.) Employee engagement requires a large budget. 3.) Employee engagement isn’t something to be focused on now. As some managers say, “People are fortunate just to have jobs.” 4.) Employee engagement is warm and fuzzy, and there aren’t statistics to back it up. 5.) Employee engagement is a trend. If you are a little embarrassed to admit some of those myths have crossed your mind, don’t beat yourself up. After all, you are reading this paper, so you are showing signs of effort. In very simple terms, here is why they are myths: 1.) Employee engagement is not HR’s role-don’t roll your eyes-it’s your role. Looking to HR to be the sole provider of HR employee engagement is another name for bad management. 2.) Engagement doesn’t require large budgets. Read on for free advice, tools and practices. 3.) If you are not active with engagement now, people will leave even in a tight economy. The “war for talent”, refers to an increasingly competitive environment for recruiting and retaining talented employees. It is REAL. You can let your guard down about engagement thanks to Mercer, Deloitte, Gartner, and countless other firms that have provided statistics, research, findings and ROI for engagement. You can visit our website and follow us on Twitter for FREE resources (www.employeeengagement.com, Twitter: emplyengagement) and see that it’s proven and real. You can justify in the boardroom what you probably know in your heart and mind. 1 www.employeeengagement.com 781.239.8713 According to Gallup research, companies with high engagement levels are more than 200 percent more profitable than organizations with low engagement levels. 4.) According to PWC’s 2011 Global CEO Survey, 83% of Executives list their Talent Management Strategy as their # 1 concern. 5.) Engagement can be seen as a trend only when it has been mismanaged (and usually not with bad intentions), introduced as a “program”, and generally misunderstood. So now that we have those common, Debbie-Downer myths behind us, let’s review what you can do. Here are 5 proven steps that you can start to work on this week. And in ten days, you will have a better chance to keep a good employee. 1. Connect People’s Roles with the Company Direction. Why? Every employee, no matter what level should be able to understand and communicate: “My Job” and “Where is the Company Going”? “Where I am Today” and Where Am I Going? You want your employees to ask themselves, “If I am ambitious, where will my career go with my company?” “What career advancement is possible when I succeed?” You also want them answering, “I know our strategic plan and how I am going to fit in”. You will keep employees when you involve your people to help communicate the direction, values, and mission of the organization. 2 www.employeeengagement.com 781.239.8713 Don’t take turns delivering your mission statement during your next “Lunch and Learn with PowerPoint”. What you want is innovation and FUN. Yes, go nuts with social media. Crawl out of the dark ages and embrace other successful practices such as those used by Southwest Airlines, Patagonia, Deloitte, Apple, Timberland, BELL (Building Educated Leaders for Life), The Four Seasons, and countless others. For example: Shoot It: Invest in a Flip camera (ranging from $84-$200’ish) to help to capture people delivering their values, and hold a contest to vote for the most popular. Have your leadership team participate as well, but encourage innovation from all areas of your organization Brand It: Use social media to promote and brand (intranet, internal YouTube channels, TweetWorks, Facebook) Keep It Up: This is not a “one and done” effort. Make it on-going, becoming part of your corporate DNA 2. Trash and Burn the Suggestion Box: Create an Innovation Box Suggestions boxes were created with good intent, to gather new ideas from all employees. However, they turned into a complaint box with comments such as: “The showers in the office gym do not have enough pressure” “Hire a company chef” “Redecorate the lobby with new curtains” You are seeing the theme here and probably smiling to yourself, because you know it is true. So, step into the modern day of employee engagement and create an innovation box. Often an organization can learn innovative ideas from its employees, those who are on the “front line”. At ENSR, after communicating and rolling out “Innovation Lightbulb,” the company added a light bulb icon to the intranet. The company was looking for specific solutions to help innovate. What new things can be doing with Customer Service? What new product lines should we think of? What technologies should we invest in? 3 www.employeeengagement.com 781.239.8713 3. After Burning the Suggestion Box, Shred Your Performance Appraisal Forms Just hearing “Performance Appraisal” creates worry and a feeling of negativity. Of course, you need methods to report any employees’ performance, but put the focus on results. As a first step, rename “Performance Appraisal”. “Employee Development Plan (EDP)” accomplishes the same goals as a Performance Appraisal, but doesn’t create angst. People will still know what the intent is. Secondly, make the process simple. “Keep it Simple, Execute Flawlessly”. Ditch your five page form and adopt these “3 circles”: . The more you can overlap these three circles, the higher probability that you will have an engaged employee. To feel engaged with your role and organization, people need some of each circle in their professional lives. Adopting the three circles (or insert your own, possibly more clever name) will allow a manager and an employee to have a safe conversation about how the passions and skills can best be applied to the company’s goals. When using the three circles with employees, you should have two copies of the circles. You should document their goals and performance from year to year. One copy can reflect the years past and the current circles should be used for the review taking place Simple, right? So get started this week. What are you waiting for? 4 www.employeeengagement.com 781.239.8713 4. Slackers Beware: Create a Motivational Culture Have you had the pleasure of visiting the Department/Registry of Motor Vehicles lately? Clearly this question is oozing with sarcasm. That may be the only sentence you ever read with the words DMV and pleasure in the same sentence. The employees are usually miserable, the service is awful, and no one seems to care. The worst part is that no one is doing anything about it. Why is this poor culture tolerated, even joked about? Don’t allow the DMV culture to be your own, Create a Culture of Achievement! Sounds good? How do you get started? Realize this is not a program. You cannot turn it on and turn it off when you get busy. If you treat it like a program, it could cause dis-engagement. • Set Clear Expectations: When setting clear expectations, consider these areas: Measureable: Can your expectation be measured and how? If you cannot measure something, how can you provide motivation? Relative to job success: The employee will always ask, “Why do I need to do this inn my job?” Your job is to relate each task to the overall goal and success of the employee’s role that will help the company reach its targets and goals. Remove Obstacles or Barriers: As a manager, it is your responsibility to help employees to succeed in their jobs. How will you help the employee past these barriers? If you can’t, who will? Influence Behavior: You need some way to influence the behaviors you want. For example, don’t ask your employees to come in early, when you stroll in at 9am. How would that motivate anyone? Communicate: Here are four key areas that must be in your communication plan to be successful. Business information: How is the business doing – big wins and losses? What changes are coming? How are employees, teams, and departments impacted? Opportunity for Input: Team members must feel comfortable to give their opinions, be part of decisions, and offer solutions. This is a great opportunity for coaching and helping them to make better decisions and suggestions Ability to Talk to You: An open door policy is only as good as how much the door is open 5 www.employeeengagement.com 781.239.8713 Ongoing Feedback: Provide feedback constantly to let individuals know how they’re doing, both corrective and reinforcing Reward and recognize. The rewards and recognition have to be available to everyone on your team. That doesn’t mean everyone gets them. Business is not T-Ball: You do not get trophies for losing. What this does mean is that every team member has an opportunity to earn and receive a reward. It is related to a specific outcome, not just for a “good job”. The reward/recognition has value. One company used to give away gift cards to the movies for certain rewards tied to results. One day a manager asked, “Are you excited about seeing a movie with your husband?” She smiled and said “yes, sure” but there was hesitation. With a little encouragement, she told the manager that they need a sitter-and they can sometimes be hard to find and expensive. Her husband had recently been laid off, so they were not going out. This just goes to show you- that sometimes what you think is valuable is not. Take some time to ask and find out what reward or recognition is valuable and reasonable for the employees. Instead, offer “A Menu of Gifts”. Employees have a choice whether they want the Movie card gift, or cards to stores such as Home Depot, Target, American Express, Visa, and a few more options.” 5. Do Not Use the Peanut Butter Approach: Redefine & Simplify Your Compensation Plan Avoid the peanut butter approach! When it is time for managers to dole out merit compensation, you want to make a distinction between your “rock stars” and “average Joe’s/slackers”. For example, if you award 2.5% to underperformers, 3% to average, and 3.5% to top performers, you are at risk for discouraging your top performers, and not incenting underperformers to improve. 6 www.employeeengagement.com 781.239.8713 As simple as this sounds, as recently as one year ago a major internet company (who will remain nameless) awarded all employees the same bonus and raise. Can you imagine if you are the high performer, and your compensation is the same as that person, who does nothing and somehow keeps their job? Forget about it. This Four Quadrant Matrix is an Easy and Practical Way to how to Compensate Accordingly High PERFORMERS INVESTMENT x 2x TRANSITION POTENTIALS 0 x Performance Low High For compensation or bonuses, plot your employees into the 4 quadrants, based on performance, and potential, using “X” being an average award. Here is how it works: Investment employees should receive no less than 2X on average Transition employees should not be rewarded Between Potentials and Performers, give the edge to the performers (likely to be new or junior staff whose compensation will be related to recent, specific achievement) So there it is: 5 Simple, Employee Engagement Steps You Can Start on This Week! You do not need a PhD; you do not need to need to a hefty budget to implement engagement. Remember, this is not someone else’s responsibility. It is your responsibility. Consider this: If your firm has a turnover rate of 25% (about the national average) and employs 40 employees each earning $25,000 annually, your costs of turning over 10 of these employees over the course of a year will be at least $125,000! ENGAGEMENT MATTERS. START TODAY! 7 www.employeeengagement.com 781.239.8713 Sources * http://www.businessknowhow.com/manage/whyquit.htm, http://www.hrmorning.com/7-big-reasons-people-leave-their-jobs/, The 7 Hidden Reasons Employees Leave: How to Recognize the Subtle Signs and Act Before It’s Too Late, Leigh Branham, (Amacom, 2005) ** PricewaterhouseCoopers, 2011 Global CEO Survey: http://www.pwc.com/gx/en/ceo-survey/pdf/15th-global-pwc-ceo-survey.pdf *** Source: Melcrum “Employee engagement” survey of High Performing Companies: https://www.melcrum.com/research/engageemployees-strategy-and-change **** Gallup survey of 80,000 Global Employees: http://businessjournal.gallup.com/content/520/building-great-workplaces.aspx ***** http://thebabyboomerentrepreneur.com/258/what-is-the-rule-of-seven-and-how-will-it-improve-your-marketing/, http://en.wikipedia.org/wiki/Memory, *****WebPro News Technology, 7/24/06, http://www.webpronews.com/employee-retention-what-employee-turnover-really-costsyour-company-2006-07 8