In class, we learned about the importance of employee engagement for an organisation. Employees who are engaged and committed to their work tend to have better performance, are more innovative, take less sick absences and are less likely to quit their jobs (MacLeod, 2009). These are all very important factors for success, and impact the company’s bottom line directly in terms of productivity, costs and stability.
Since MacLeod’s report in 2009 on the importance of employee engagement and its benefits, this topic has gained much awareness and has now become an important consideration for the majority of business leaders – 70% of them believe that employee engagement is mission critical for their business (Corporate Leadership Council, 2011), and over 90% of medium to large sized organisations are planning to or are already conducting engagement surveys internally. However, for all the focus on employee engagement in recent years, employee engagement has not grown proportionally. In the U.S., less than one-third of employees were engaged in their jobs according to Gallup’s U.S. Employee Engagement monthly tracking index. Although employee engagement was at a 3-year high of 32.9% in February 2015, this number has not grown by much since 2011 when the survey began.
Globally, the percentage of engaged employees is even poorer, with a dismal 13% of employees reporting that they were being engaged at work (Gallup, 2013). This number drops even further to an alarming 9% when we look at employees surveyed in Singapore. In the figure below, we see that Gallup classifies responses into “Engaged” which refers to committed employees who are likely to make positive contributions to the organisation, “Not Engaged” which refers to employees who lack motivation and are unlikely to put in extra effort to benefit the organisation and “Actively Disengaged” which refers to employees who are unhappy and unproductive at work and may spread negativity in the workplace.
Source: Gallup Global Workplace Report 2013
What then could be the reason behind these poor performing metrics? Our class discussions have revolved around how companies can implement policies to increase employee engagement levels: leaders should make efforts to reach out to employees to listen to and get to know them, organisational culture should be aligned with employees, increase the level of autonomy given to employees, ensure the integrity of the organisation is upheld – these methods have been identified to theoretically help employees to be more committed to their work and the organisation. Yet, the increase in employee engagement has been marginal at best. Given the awareness and intent that has been generated, this speaks to problems in the implementation of these engagement measures.
According to Nita Clarke, the co-author of the employee engagement government report in 2009, a key factor in the failure in implementation comes from the fact that all too often the responsibility of increasing employee engagement in an organisation is simply passed on to human resources. Hence, engagement programmes are seldom launched beyond the paperwork stage and do not bring real improvements into the organisation. Clarke believes that employee engagement needs to occur at the manager-employee level and this is something that is overlooked by many organisations. She believes that the most effective method to increase employee engagement is to groom leaders out of current employees who exhibit the right leadership behaviours, who would then carry forward their mantra and spread it in the organisation. This however, would require leaders to groom their successors to take over their own positions, and may either lead to a conflict of interests or simply take a long time for results to show.
According to Gallup’s research, others fail at more advanced stages – despite changes to work environment such as remote work arrangements, creative benefits (snack bars come to mind) and hip office spaces, they fail to increase engagement meaningfully. Instead of these superficial changes, they point to seven key elements identified in companies with the best employee engagement scores that help to deepen employee ties to their managers and organisations:
1. Have involved and curious leaders who want to improve.
2. Have cracking HR functions.
3. Ensure the basic engagement requirements are met before expecting an inspiring mission to matter.
4. Never use a downturn as an excuse.
5. Trust, hold accountable, and relentlessly support their managers and teams.
6. Have a straightforward and decisive approach to performance management.
7. Do not pursue engagement for its own sake.
(Harvard Business Review, 2014)
Unfortunately, it seems that there is no shortcut and overnight solution to building a committed, motivated and thoroughly engaged workforce. Despite the substantial benefits that are so obvious to the organisation, reaping it takes a lot of hard work, time, commitment and change in entrenched mindsets.
MacLeod, D., & Clarke, N. (2009) Engaging for Success: enhancing performance through employee engagement. A Report to Government. London, Department for Business, Innovation and Skills.
Corporate Leadership Council (2011) Essay: Building Capital Engagement, 2011. Retrieved from http://www.executiveboard.com/exbd-resources/pdf/human-resources/corporate-leadership-council/building-engagement-capital.pdf
Adkins, A. (2015, March 9). U.S. Employee Engagement Reaches Three-Year High. Retrieved April 3, 2015.
Gallup (2013) State of the Global Workplace. Retrieved from http://ihrim.org/Pubonline/Wire/Dec13/GlobalWorkplaceReport_2013.pdf.
Uttley, H. (2014, June 19). London HR Connection: Why employee engagement programmes ‘suck’. Workplace Savings and Benefits. Retrieved April 3, 2015.
Flade, P., Harter, J., & Asplund, J. (2014, April 1). Seven Things Great Employers Do (that Others Don’t). Harvard Business Review. Retrieved April 3, 2015.