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Carl

Engagement Vital but Managers Not Trained

Is the gap between management salaries and the rank and file growing wider? Are there big bonuses for the bosses while everyone else endures pay freezes, furloughs and doing more with less?

This could be disastrous to your future and certainly profitability of any company. There is irrefutable evidence that employee engagement is correlated with productivity, so plummeting engagement is a real threat to the standard of corporate excellence and the need to get more from less.

Many managers, with little sense of ownership, will throw their hands in the air, bemoan their circumstance and blame the company for not providing resources. Others will strive to make the best of the situation by taking internal action. What will you do?

Engaging your workforce for success requires some basic action that every company can and should take.

First, building trust is vital. One course of action is initiating reviews of the organization’s values and soliciting employee opinions. This is highly recommended. It creates a sense of ownership and responsibility as long as employees believe their voices are being heard and will be acted upon.

Second, managers should understand that engagement is fundamentally an emotional response, not a rational one. Perceived unfairness in pay of the executive compared to the staff can be a potent cause of disengagement. The need to feel fairly treated is an innate human given. Others are:

• the need to feel valued

• appreciated

• listened to

• involved in decision making

• be trusted and given the opportunity to increase in knowledge and skills

Company practice too often ignores these needs.

Third, we suggest that many employers are underestimating the huge influence on engagement levels made by line managers. It's not that other things are unimportant it's just that they are trumped by a far more important factor – the atmosphere in the workplace. The evidence suggests that around 76% of decisions to engage or disengage are made on the basis of the relationship with an immediate manager. People join organizations, they leave managers.

Yet, fewer than 20% of managers have received any training in engagement skills, how to bring out the best in their people. The old command and control management paradigm is still all too common but is no longer effective in the knowledge economy. It creates disengagement.

The bottom line? There's an underlying principle for engagement, whether it's employee engagement, customer engagement or even two people entering a personal relationship – and it is this: engagement correlates with how the relationship makes us feel about ourselves.

Employers whose policies make people feel good about themselves are engaging employees. Managers whose behaviors and attitudes in the workplace make their people feel good about themselves create engaged employees. That's the long and short of it.

(Funny Video) The Office: Engagement Audit

(To the Point) 30 Second Motivation Training

Engagement Linked to Financial Performance

Senior leaders should take the lead on employee engagement - for the sake of the organization. Hewitt Associates in a recently released 2010 study shows a clear link between highly engaged workforces and highly performing companies. “Organizations with high levels of engagement (where 65 percent or more of employees are engaged) outperformed the total stock market index even in volatile economic conditions…companies with low engagement (where less than 40 percent of employees are engaged) had a total shareholder return that was 44 percent lower than the average.” If that does not illustrate the connection clearly, please read the entire article for more info: Hewitt Analysis
 
Hewitt's research shows that 46 percent of organizations experienced a decline in engagement levels in the quarter ending June 2010, while just 30 percent saw an improvement. Obviously, there is a growing gap that will be problematic as the economy recovers. Employers are struggling with financial issues and employees are stressed beyond limits. Many are thinking about leaving when the opportunity arises. This will lead to shortages in talent for many companies. It is the prudent thing to put systems in place that will mitigate these issues and support financial performance.

There are some critical steps to improving engagement levels and boost morale. Companies must think well into the future and be proactive now to see successes 2 to 3 or 5 years out. Some steps you can take now are:
 
· Communicate a clear vision for the organization now and into the future
· Engage leadership to be visible and to walk the talk to lessen employee anxiety
· Create systems that will energize employees and managers alike…provide feedback on how well the company is doing and the impact employees are having
· Actively involve all stakeholders in the process. A sense of ownership for the future will create an environment that helps retain top talent
· Use all the tools available to your organization to increase morale. One program or approach may not be enough
· Adjust your strategies as needed to keep the edge
 
Understand what drives positive employee behavior and make sure your employees know that you appreciate all the sacrifices they have made on behalf of the company. Acknowledge people's contributions and reward people for their effort. Recognition can have an immense effect on a person. These actions help to create a workplace where people feel secure and valued.
 
Motivate
Remind people of what the organization, the department and the team are trying to achieve and where they fit into this. Create a line of sight from individuals' roles to the future achievements of the organization and highlight the benefits for the public in meeting these goals. Make the effort to know what values your people hold and align these with what the organization is trying to achieve and how the organization is planning to do this. This can create a sense of purpose and pride in what people are doing.
 
This is about people, connecting with people, valuing people, supporting people and developing people. Employee engagement is related to many positive outcomes; financial performance, productivity, employee well-being, and job satisfaction, just to name a few, and leaders cannot let this be undervalued in the current climate.

Qualities of a Good Boss Drive Retention

So, you want to be a good boss? Well, it won’t happen overnight. Most of us are not born to it. It takes time to develop the skills necessary to achieve that title. It is a continuous learning process and fraught with problems along the way. Many people cannot begin to achieve a balance among their personal needs, employee needs and those of their company. If you can, then you will be well on your way to earning the respect of peers and employees alike. If you work at it, you too can be considered a “Good Boss”.

Good Bosses retain talented employees. Remember most people don’t quit a job they quit a boss!

So, what makes a Good Boss? Below are the attributes you will have to hone or gain in the process:

1. Leadership
It is true that not all good people make good bosses because there is a significant difference between a follower and leader. A person, who has good leadership qualities, is someone who leads by example. Never ask an employee to do something you would not or have not done yourself.

2. Be Trustworthy
Trust is the basis for almost all the relationships in your life. Without trust, it's impossible to create healthy and productive environments, either with work or personal situations. When people trust you, they are more willing to give their best, as they know that they always get your best.

3. Be a Communicator
In any sort of management role, it is quite common to hear people refer to the "big picture". This is just a clichéd way to describe creating and inspiring a vision. How do you communicate your vision or that of the company? You can't push people to believe in or want to work toward the organizational vision, but rather, one of the qualities of good leadership is that you guide, lead, and inspire people to want to participate in the process of moving toward the vision. You achieve that being open and forthright in all your communications with employees.

4. Tolerance
A good boss realizes that, because their employees are also human beings, some things are really beyond their control. So, if something goes wrong and it is not habitual, provide forbearance. Of course, your tolerance should not to be given to employees who abuse the system or you.

5. Courage
It takes courage to give commands and manage a group. It also takes a brave soul to take full responsibility for your employees' actions. Therefore, it is very important to find the right kind of people who will work productively and with little interference. Hire well.

6. Positive Attitude
You cannot expect that your staff will provide very good results if they see you in a bad mood all the time. Be optimistic and smile. It is for you and your employees. They will respond to your positivity. One of the most important qualities of good leadership is that the individual is aware of him or herself ... their abilities and the impact that they have on others.

7. Provide Tools
You must remember that an employee has to have everything he or she needs to do the job you have asked of them. Then give them the freedom to do it without micromanaging.

8. Empathy
A good employer is seriously concerned about his employees, and would recognize that they also have needs and feelings. The ability to place yourself in the shoes of the employee helps you to better understand what they need to achieve improved results. Motivation also increases if workers compensation and rewards are used to show your appreciation.

9. Listen
Be open to listening to new ideas, even if they do not conform to the usual way of thinking. Good leaders are able to suspend judgment while listening to others’ ideas, as well as accept new ways of doing things that someone else thought of. Listening builds mutual respect and trust between leaders and followers, and it also keeps the team well supplied with new ideas that can further its vision.

10. Have Fun
In times when the work is not so busy or if you are with your employees at a company outing, be lighthearted and show your people your fun side. Joke with them, laugh with them, talk with them. Remember that there is a time and place for fun. Above all be sincere.

Being a good leader has many rewards. True leaders earn and deserve respect and the loyalty of their employees, and at the end of the day you will find pleasure in your ability to lead.

What other qualities would you add to this list? Please leave a comment.

Valued Employees are Happier Employees

It has been a while since my last post due to summer schedules, but here is the latest...

What creates motivated, contributing people? How do businesses maintain high employee morale when people work long hours? Many companies already know the answer—employee recognition programs.

A study conducted by the nonprofit Recognition Professionals International revealed employee appreciation programs create a positive work environment, motivate high performance and decrease employee turnover.

These recognition programs are mostly administered by human resource departments to reward length of service, above and beyond performance, sales performance, retirement, suggestions and ideas, safety performance and perfect attendance. Common tangible awards are certificates and plaques, followed jewelry including watches and rings, company logo merchandise and various forms of gift certificates.

Florida Power and Light uses its corporate-wide Web site to provide managers with tips and tools to recognize employees for outstanding service.

The distribution business unit, for example, implements the STARS program. Since the employees in that unit work directly with customers every day, this program recognizes those who approach problems creatively, go above and beyond to help a customer, or who cause a customer to call or write about a job well done.

Supervisors submit all STARS nominees into a database where they are reviewed by a committee of peers who don’t know the employee’s names. The monthly winners receive a cash reward. Upper management also selects employees for quarterly and annual awards.

“The program promotes teamwork and motivates employees to provide excellent service that will make a positive impact on customers,” said FPL spokesperson Sharon Bennett.

Please feel free to contact me for more information on programs such as this.

So, what is Performance Improvement and why is it on everyone’s mind?

What is a motivated person? How do we recognize them? How do we define motivation? These are questions our clients ask daily.

How do you elicit performance improvement from your most important asset: your people? Academic and practical theories are abundant and may conflict, but in our experience the answer lies in the alignment of four things:

> Communication - Are your mission and objectives clearly defined? Does the message generate excitement and sustain interest?

>Training – Have you provided the necessary tools and education so that employees have the skills and competencies they need to succeed? Do they know what is expected of them?

>Reward/Reinforcement - how will you recognize success? Are positive behavior changes being spotlighted? Are you recognizing only those things you want repeated?

>Measurement – Have you set benchmarks? Can you determine progress toward your goals? Are you providing feedback and adjusting accordingly?

Lead by Example

If you want motivated employees, be motivated yourself! If you need your team to engage more fully with your client base, then lead the way and demonstrate how the job should be done. Never exhibit anything less than excellence. Walk the talk and others will follow.

Motivation is best when excited from within, when employees see behavior they want to emulate they will be given a reason to perform at higher levels.

Here is a definition of Motivation: That which incites to action; anything prompting or exciting choice, or moving the will; cause; reason; inducement; object of desire; incentive
Are you prompting or exciting choice?

Motivation, of course, is not a steady state. It needs to constantly be worked upon and invested in. But if you are looking around one day and find yourself in a happy place, the chances are you have hit upon the right blend of communication, learning, measurement and reward. And the chances are you are holding on to your best people, who continue to deliver great performance.

FLEXIBLE EMPLOYEE REWARDS

WHAT IS EMPLOYEE REWARD?

A company’s success is in the hands of its people. When they’re motivated, it will make a difference to the business and the bottom line. Employee reward programs are among the top strategies to build a motivated workforce. Employee rewards increase focus, a key to reinforcing desired behaviors and developing new habits; in addition, rewards in the workplace build a connection between meeting personal and professional goals.

WHY EMPLOYEE REWARDS? HOW DOES IT WORK?

Businesses face a wealth of choices when designing an employee reward system. One of the most popular formats is a points-based accumulation program, because it enables participants to earn points and choose from a wide variety of trips, merchandise and services as their rewards.

In addition to this flexibility for the participant, points-based accumulation plans also enable flexibility to the sponsoring company. Businesses can select the types of rewards offered to ensure that they align with the corporate values and personality. Thus, an employee reward program can be customized to fit a company and its people, ensuring the reinforcement of the values and the likelihood that each participant will find many personally meaningful options from among the rewards offered.

There is another, perhaps surprising, benefit that comes with rewards and other points-based accumulation plans: better ROI. Recent research indicates that nonmonetary rewards in the workplace consistently deliver better return on investment than cash awards.

Offering meaningful rewards is one of the most important ways to optimize the success of employee’s reward program. When every employee has a tangible reward in mind, their energies will shift toward achieving that reward. They’ll keep that reward in mind, make decisions that get them closer to their goal, and use their mental picture of their reward as inspiration when facing an obstacle or challenge. Thus, it’s important that a company understands its people and know – and can offer – the employee rewards that will motivate them.

Before starting any employee reward program the company must ask itself two questions:

1. How many employees will be positively reinforced by this program?

2. How many will be negatively impacted by it?

WHAT KIND OF EMPLOYEE REWARDS?

Monetary rewards:

Profit sharing

Project bonuses

Stock options

Managers argue that monetary rewards encourage compliance rather than risk-taking because most rewards are based only on performance. As a result, employees are discouraged from being creative in the workplace.

Another argument states that monetary rewards may be used to circumvent problems in the workplace. For example, incentives to boost sales can be used to compensate for poor management. Employers also may use monetary incentives as an extrinsic rather than an intrinsic motivator. In other words, employees are driven to do things just for the monetary reward versus doing something because it is the right thing to do. This can disrupt or terminate good relationships between employees because they are transformed from co-workers to competitors, which can quickly disrupt the workplace environment.

Non – Monetary rewards:

Generational non-monetary reward differences are affected by career stage and proximity to retirement. The older the employee, the more the focus is placed on retirement and the meaningfulness of the emotional connection made with the company. The younger the employee, the more the focus is placed on job satisfaction (opportunities to grow) and the work environment (work/life balance). The bottom line is that incentives must be tailored to the needs of the workers rather than using the "one-size-fits-all” approach, which is impersonal and often ineffective.

On-the-Spot Awards

Manager-to-Peer Recognition

Nominated Recognition

Employee Appreciation

On-Boarding

Employee of the Month / Year

Peer-to-Peer Recognition

Retirement

Non-monetary incentives desired by different generations of employees:

Research suggests that desired monetary incentives differ for employees based on career stage and generation. Surveys by the American Association of Retired Persons (AARP) have shown that most workers will work past retirement age if offered flexible schedules, part-time hours, and temporary employment (Nelson, 1999).

The Real Driver of Engagement

Imagine working for a company where nearly 25% of the employees hate their jobs, over half (55%) of the employees are apathetic and uninterested and do just enough to stay employed. Only the remaining 20% do their job enthusiastically and care about the company’s future. Unfortunately, you don’t have to look far to find such a company. This is the profile of a typical U.S. Company.

Why are today’s workers so disengaged? A recent global survey by Towers Perrin gives some insight. For employees, the real driver of engagement is the belief that a company cares about them. Senior management's interest in the well-being of employees is what most drives engagement, according to the survey. For many employees, "caring" translates to providing opportunities for career development.

Other key factors to employee engagement are trust in the organization's leadership and feeling a sense of pride when workers see their organization's logo.

"Appreciation is the single largest driver of a company’s caring attitude.”

But employee appreciation must be aligned with what's important to the company. Here is how you can create that culture of caring and trust. Each employee wants to see a clear vision about where the company is going and to know "my supervisor plans my work around things that matter”. It motivates the American worker.

Workers feel their bosses and companies appreciate them, according to the survey, when they…
1. Believe their companies are great at showing appreciation to those who excel.
2. Observe senior management modeling the behavior.
3. Perceive a clear connection between recognition and goals of the organization.
4. Experience recognition as timely, personal and sincere.

This is not as complex as some would have you believe. The essential element is that you want to have an enhanced culture and are willing to work toward that goal. Decide to begin the process and put into place a system to help you create your own culture of recognition that will lead you toward improved bottom line results.

Follow this link to see how your company measures up: (Then Call Me for Help)

Five Signs Your Company is Committed to Engaging Employees

Valued Employees = Engaged Employees = Business Results

Carl can be reached at 504-737-7272 or carl@recognitionsys.net

Are Your Reward & Recognition Programs on Target?

Simply put, it is crucial to identify a particular activity that is known to be a key to your success and then put a program in place to reward that behavior every time it occurs.

People tend to do things if they feel that it is in their own best interest. Organizations need to connect what employees want for themselves to overall organizational goals by rewarding behavior in a way that is meaningful to them and their own self-interest. By pointing out that a particular behavior is rewarded, you could be well on your way toward reinforcing the performance that will help achieve business goals. Moreover, people don’t walk away from companies they feel care about them, so rewarding them can stabilize your talent pool.

To help assure your recognition process is on track, consider the following factors:

• Be strategic and make sure it reinforces your company values.

• Make your approach personal. Think about what will be truly memorable for the employee.

• Be inclusive. Your program should be able to occur in all directions: top-down, peer-to-peer, etc.

• Include easy-to-use, robust tools with appropriate reporting capabilities.

• The process should be fast, requiring few approvals, so the award is closely tied to the action performed.

• Use a cross-functional team to design the process (payroll, IT, communications, HR) so it appeals to all targeted functions.

• Conduct ongoing communications to inform and encourage use.

(No Good Deed Goes Unrewarded, Scott Himelstein, HR Magazine, January, 2010. p. 27.)

When creating your program, be aware of the tendency to assume “one size fits all” and that everyone will respond positively to the same program or practice. While it may seem difficult to individualize recognition programs, there are ways to help heighten effectiveness:

• Each manager should spend time on a regular basis with each employee to determine how that employee is best motivated.

• Managers should find ways to integrate the identified type of recognition into the employee’s development plan.

• Recognition needs to be given consistently.

• Be sure there are opportunities for management to recognize everyone’s contributions.

• Clearly communicate the reason for the recognition.

• Provide opportunities for peer recognition that can result in increased productivity.

Valued Employees = Engaged Employees = Business Results

Studies prove employees need to feel valued and know the work they do on a daily basis matters. More than three-quarters of employees, 76 percent, who responded to the 2008 World of Work study published by Randstad, an Atlanta-based employment-services firm, said feeling valued was the most important factor for happiness at work, out of more than a dozen options. When asked to identify the employer attributes they valued most, the top response (67 percent) was “recognizes the value I bring to the organization.” (Length-of-Service Awards Becoming More Personal, Rebecca Hastings, SPHR, 2009 HR Trendbook, p. 46.)

Employees who feel “cared for” by employers are more likely to return the favor by paying attention to the company’s bottom line, treating customers better, and supporting the overall work community. As Allan Schweyer of the Human Capital Institute points out: Engaged employees work smarter, not harder.

The key to making recognition and rewards programs work is to target them to specific business goals and individual employee needs. Goal alignment and reward reinforcement promotes excellence and increases the likelihood of business success. At the end of the day, your organization is more likely to craft the right program by:

• Understanding the respective strengths of various rewards and recognition approaches.

  • Remembering that demographics matter—as the nature of your workforce changes, so should the nature of your approach.

  • The mix can be different for each employee. The key is to determine the mix on a case-by-case basis.

  (Finding the Right Mix, Performance Improvement Council)

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Become a More Engaging Manager

Recognize employee performance

To help motivate employees you need to show genuine appreciation for good work and recognize the improvements they make. Here are some steps you could take:

· say thank you - it is a powerful way of recognizing someone's contribution and motivating them to keep performing

· use internal publications, a note sent to the team or a poster to celebrate an individual's success and to show employees their commitment and effort are appreciated

· if you have an intranet create a bulletin board or forum so employees can thank colleagues for their efforts and help with key issues

· give spot rewards for specific contributions or tasks where employees have exceeded all expectations - for example - this could be a personal reward relevant to their interests outside work

· establish an award protocol so employees can nominate colleagues for their work and the way they have helped drive the business forward

· host social events when you achieve key milestones or targets to thank your team or teams for their work

· hold celebrations for employee's personal milestones or significant life events

Recognition Has a Proven Track Record

Recognition has a proven track record of engaging employees and is especially critical after a long, lean period, when employees have often been overstretched and under-rewarded.

A recent Manpower study showed that over 60 percent of workers plan to look for new jobs as soon as the economy provides opportunities. After a couple of years of the “lucky-to-have-a-job” message, employees are looking for more stability, opportunity, and appreciation. Proving to a tired workforce that they are individually appreciated may be the only way to engage them and combat exodus through the recovery.

A one-size-fits-all approach to recognition programs is not the answer and instead, may leave too many employees feeling cynical, disengage those who are “borderline” and lead them to conclude management “doesn’t even know what I value” — increasing the likelihood of a loss of talent.

In this environment, building a program that is tailored to the needs of each audience is essential. While sales forces respond to public recognition events and proudly display an award in the office, Millennial workers may need much more frequent – even if modest – recognition or prefer an award they can enjoy outside the office on their own time. For many, a sincere and heartfelt “thank you” from the company president can make the difference in loyalty.

Much has been asked of employees during the darkest months of the recession.

It is critical to let them know their hard work not only furthers the success of the entire group, but that it is acknowledged and appreciated.

Employee Engagement Study

In the past few years, employee engagement has become one of the biggest and fastest-growing management trends, and with good reason: There is ample evidence it works. While part of this is common sense – an engaged employee is almost by definition a happier, more productive employee – hard numbers back it up as well.

As part of its 2007-2008 Global Workforce Study, consulting firm Towers Perrin (now Towers Watson) surveyed 90,000 employees in 18 countries about a number of topics, including what drives engagement – the desire and willingness of employees to go the extra mile in their jobs, to put in discretionary effort. While the firm came up with a number of answers about how companies drive engagement, the most eye-catching part of the survey was why. Towers Perrin compared the financial results of 50 multinational companies. In the course of one year, the companies with high employee engagement posted a 19 percent increase in operating income and a 28 percent increase in earnings per share; conversely, those with poor employee engagement scores saw operating income decline by nearly one third, and earnings per share drop 11 percent. More broadly, the firm has concluded that a 15 percent improvement in engagement will cause 2 percent improvement in a firm’s operating margin.

Best Companies for Leadership

The 2009 Hay Group study shows the Best Companies for Leadership to be right at the cutting edge of current trends in demographics and employment. Recognizing concerns about work/life balance and the wider social contribution of their work, they are much more likely to make it easy for people to work from home – and they use their corporate social responsibility programs to attract employees.

The best companies are almost twice as likely to have a high proportion of women in senior posts. And nearly all of the best companies look for people with an appreciation of global issues, compared with less than two-thirds of their peers. This indicates they recognize that in today's market, a globally inclusive approach is important, as is one that reflects the importance of a gender balance in the workplace.

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"The cultures of The Best Companies for Leadership help them to attract and retain the leaders they need."

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It's not just about direct investment in leaders. The best companies create cultures in which employees can behave like leaders, even if they have no formal position of authority. This has two important consequences.

Hay Group research shows, unsurprisingly, that well-motivated, 'engaged' employees perform better in a way that even feeds through to the bottom line. But when they are empowered by a culture that actively encourages them to take initiative, the performance gains are even higher. And by encouraging employees to step up to leadership opportunities, the Best Companies for Leadership are 'seeding' the next generation of leaders within their organizations.

The bottom line is... all this feeds though to the bottom line. The Hay Group Top 20 companies produce significantly better shareholder return than the S&P 500. And those firms that both engage and empower their employees see revenue growth 4.5x the norm. Proof if any were needed, that a forward-looking approach to leadership pays off.

Learn More at the Hay Group