by Eric Vanetti, Ph.D.
Continued waves of downsizing, increasing employer demands, general disenchantment with jobs, and technologies capable of keeping employees connected 24/7 to their work are taking their toll. Recent surveys indicate more than half the workforce is fed up, and the problem is global in scope. Gallup found that 80 percent of British workers lack commitment to their jobs, with a quarter of those being “actively disengaged” from their workplaces. Similar results were found in other countries as well. For example, in France only 12 percent of workers are engaged in their work, and in Singapore 17 percent of the workforce is actively disengaged.
There are many variations on the definition of “engagement”, but it basically refers to the extent to which employees believe in what they do, feel commitment toward the organization, and are willing to expend their best efforts to make the organization successful. Engagement is different than employee satisfaction because it has a behavioral component. Engagement means that employees are not just happy or satisfied, but are actively striving to make the organization more successful.
Engagement is critical because without it employees are unwilling to invest their hearts, minds and discretionary efforts into helping the organization achieve its goals. Disengaged workers pull down productivity, increase turnover, and negatively impact the morale of the people around them. According to a Gallup (2002) study, actively disengaged employees cost an organization $3,400 for every $10,000 in salary. The annual economic costs of disengagement are staggering: as much as $350 billion in the United States, €100 billion in France, $64 billion in the UK, and $6 billion in Singapore.
On the positive side, research clearly shows that engagement is related to productivity, performance and financial return. In fact, a 10% increase in engagement leads to 8% more discretionary effort which leads to a 2% improvement in performance. It is also linked to people’s attitudes about the organization, positively impacting quality and cost savings and the likelihood of staying with an organization. Think of engagement as a leading indicator of productivity and retention. It is an early warning system that, if not heeded, could lead to serious organizational problems. For this reason, engagement should be part of every organization’s workforce priorities.
How can you reduce the potential losses caused by an exhausted and demoralized workforce? Helping employees to effectively manage information overload is one important step. Providing them with the tools they need to get their job done in the most effective way possible is another. Redesigning jobs and working conditions are other potential interventions, along with ensuring that key people are effectively developed and properly deployed. But a crucial and often overlooked source of disengagement comes down to workplace relationships.
The number one reason employees become disengaged and leave a company comes down to their relationship with their boss. Rather than seek technology-based solutions to alleviate work overload and stress, you may want to first spend some time examining the development and deployment of the people in your organization tasked with leading others – your managers and first-line supervisors.
Findings from the Corporate Leadership Council (CLC) clearly indicate that manager behavior and performance are the keys to enhancing engagement. In fact, the CLC notes that 15 of the top 20 drivers of engagement are manager-related. Other research also points to the vital role of the manager.
For example, Marcus Buckingham in his book First, Break All the Rules presents compelling evidence that while the methods and mindsets of most managers focus on trying to fix employees’ faults, the greatest opportunity for success for both the individual and the organization is in building on strengths. Gallup data confirms this belief:
- If your manager ignores you, there is a 40% chance of being actively disengaged
- If your manager focuses on weaknesses, the chance is 20%
- If your manager focuses on strengths, the chance is only 1%
So what can you do to ensure your managers and supervisors are capable of creating the kind of positive workplace that leads to higher levels of engagement? The first question to ask is, “who should we be promoting to managerial and supervisory positions?”
In most companies there is tremendous pressure to promote the best performers or longer-term employees to supervisors. Unfortunately, these individuals do not always possess the skill set necessary to be effective in leading others. If they don’t, then you must invest in developing their supervisory skills before making the decision to promote them.
What skills and abilities should you look for when identifying potentially strong supervisors or managers? The most important skills include team orientation, ability to influence others, initiative, analysis and problem solving skills, coaching skills, and a situational style of leadership. There are a number of assessment tools available to help you identify individuals with these types of skill sets.
But what if you are like most companies and have already promoted several individuals who do not have good managerial or supervisory skills? In this case, there are two key issues that must be considered. First, you must offer skill development opportunities for these individuals. Labor Relations Institute’s (LRi) online supervisory training can help your managers and supervisors develop the skills they need to be successful in creating higher levels of engagement in your workforce.
Second, you must stress the importance of these skills and hold your managers and supervisors accountable for developing in these areas. You can do this by ensuring that the supervisor’s annual review includes an assessment of their effectiveness in managing their people, and that the compensation system rewards those individuals who excel in this area.
At Vantage Point Alliance we’ve helped many companies improve the engagement and productivity of their people by providing customized Workforce Solutions, including Employee Engagement surveys that measure manager effectiveness and identify specific areas for improvement.
The investment made in developing your supervisors and managers can pay tremendous dividends to your company. By improving the skills, capability and bench strength of your management team, you will improve the employee relations environment within the company, the engagement and productivity of your people, and the long-term success of your organization.