EMPLOYEE ENGAGEMENT
Strategic direction = engaged employees = competitive advantage
Creating an environment that will foster an engaged workforce is currently high on the list of aims of most organisations. Recent research by consultants Watson Wyatt suggests that the most important factor in achieving this is a clear strategic direction.
The research, part of an ongoing series of studies by Watson Wyatt into employee attitudes around the globe, also found that the other drivers of engagement include:
employer communication
the attention given to customer focus within the organisation
performance management
pay and other rewards.
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According to Watson Wyatt, a highly engaged workforce is important because engaged employees are not only highly committed but understand how they can make a positive contribution. It adds that engaged employees tend to work in organisations with superior financial performance measured by total shareholder return, market premium and employee productivity. In addition, employee engagement combines commitment with focus and direction, providing employees with a clear “line of sight”.
The research, WorkEurope, is one of the largest statistically representative surveys on the attitudes of workers in Europe and involved nearly 14,000 full-time employees in medium and large private sector organisations. It covered all major employment sectors in Belgium, France, Germany, Ireland, Italy, the Netherlands, Russia, Spain, Sweden and the UK.
Segmentation approach
To determine engagement levels, the study involved segmenting employees into five groups that reflect varying levels of commitment and line of sight, including:
Value creators - score highly for both commitment and line of sight, (13% of employees in the survey).
Core contributors - medium to high commitment and/or medium to high line of sight, but not high for both (51%).
Aligned sceptics - medium to high for line of sight but low on commitment (12%).
Lost believers - medium to high on commitment but low on line of sight (12%).
Disengaged - low for both commitment and line of sight (12%).
To help categorise employees into these segments, employees were asked some 60 questions focused on: commitment; communication; compensation and benefits; customer focus; hiring and advancement; line of sight; performance management; strategic direction and leadership; training and development; trust and ethics; values; work environment and team; and work-life balance.
"Segmenting employees in this way is important because considering the differences among segments when companies design employee programmes helps ensure that they retain the right people and get the best return on their investment," said Andrew Cocks, a senior consultant at Watson Wyatt.
Policies associated with high engagement levels
Cross-referencing engagement levels found with the corresponding HR and pay strategies employed by organisations made it possible for the report to understand what policies were associated with high engagement levels.
Based on this and the survey responses it was possible to highlight the importance of a clear strategic direction, employer communication and the other policies important in fostering engagement.
A final word
"Business leaders who articulate the business strategy give employees a clear 'line of sight' to how they can best contribute to the performance of their company, but the benefit goes beyond this. It helps to build trust in the company and its management and creates a positive environment where all employees have well understood shared goals.
The key to engaging employees comes from targeting the right employees with the right programmes. Companies that segment employees based on commitment and 'line of sight' can find the right drivers that will retain and motivate their most valuable employees. Programmes that increase trust, empowerment and customer focus increase engagement and therefore provide a competitive advantage." - Andrew Cocks, a senior consultant at Watson Wyatt.
Want to know more?
Title: WorkEurope, Watson Wyatt.
Availability: For more information on this research contact Andrew Cocks, tel: 020 7598 2874, email: andrew.cocks@watsonwyatt.com.
Watson Wyatt is the “trusted business partner to the world’s leading organisations on people and financial issues”. The firm’s global services include: managing the cost and effectiveness of employee benefit programmes; developing attraction, retention and reward strategies; and delivering related technology, outsourcing and data services. Watson Wyatt has 7,000 associates in 31 countries and is located on the web at www.watsonwyatt.com.