Employee engagement makes staff feel good about their jobs – but it can also be the best way to introduce important changes
Employee engagement has become a popular buzz phrase among executives keen to keep staff motivated in tough times when pay rises and other perks may be off the menu. But involving staff in a two-way process of communication can be about more than a feel-good factor – it’s also the best way to transform corporate culture and bring about lasting change.
The term can sound woolly, but employee engagement is most often used to describe a firm’s relationship with staff. And according to Professor Katie Truss, Head of Kent Business School and an expert in human resources, true engagement is about more than just communication.
“It’s about creating an environment where employees are motivated to want to connect with their work and really care about doing a good job,” she says. “It’s a concept that places flexibility, change and continuous improvement at the heart of what it means to be an employee and an employer.”
High engagement is associated with improved health and safety performance, staff retention, innovation and profitability, and reduced absenteeism. By contrast, Gallup research has found that companies with low levels of engagement suffer up to 51% higher staff turnover, and greater inventory shrinkage.
Gallup also says better engagement can boost profits by 12%, but according to Sue Gavin, DHL Supply Chain VP Human Resources, Automotive, any improvement drive should be about more than the bottom line. “Motivating people to do the best job possible is not solely about financial rewards,” she says. “In fact, this often only leads to short-term changes in behavior. Opening up a dialogue and persuading staff to take ownership and responsibility will lead to long-term, sustained improvement.”
Many companies are already actively encouraging engagement initiatives. A recent survey of FTSE 100 firms found that nearly 70% conduct regular staff surveys. At J Sainsbury, employees are encouraged to write suggestion letters to CEO Justin King, who personally replies to each one. Last year, Sainsbury’s received its 30,000th staff communication, and some suggestions, such as placing signs in car parks reminding customers to reuse their carrier bags, have been implemented. Google, known for its innovative working practices, allows staff to bring their pets to work.
But if having a dog running about the workplace is impractical, Gavin suggests asking staff to be accountable for different areas of responsibility, by appointing ‘energy saving champions’ for example. “This makes people feel they are making a difference, and provides increased levels of job satisfaction,” she says. “Not everyone is the same, so taking time to understand their needs is important.”
Major change initiatives are a perfect opportunity to increase engagement, and maximize the chances of successful transition. Car manufacturer Jaguar Land Rover has benefited from just such an initiative after asking DHL to introduce a ‘target zero’ safety culture at its three UK plants to ensure Health and Safety becomes the responsibility of every employee. Thanks to near-miss training, hazard reporting and increased employee communication, accident rates have been slashed: first-time accidents went down 63% between 2005 and 2009, while lost-time accidents fell 62% and occupational accidents 68%. Damages associated with accidents have been reduced by €270,000 per year.
Ultimately, says Gavin, staff need to feel management is on their side: “Breaking down the barriers between office and operational staff can make people feel like they are working towards a common goal: making the company as successful as possible.”
