As Christmas approaches we are all hoping Santa will bring us some nice presents. One gift all of us who are owner managers can have is greater productivity resulting in more profits. The secret of how it is done is simple – ‘employee engagement.’
One statistic that will surprise most of us is that only one third of UK employees is actively engaged in their job. This means that two thirds are not and of those about half are indifferent with the other half actively working against the business in some way.
A typical approach to increasing engagement of staff is simply to demand it and increase the amount of work staff have. This often has the opposite effect, say researchers. To really motivate people, it has to come from within each individual, through intrinsic motivation. Inherent interest in a task leads to greater attention and extra effort. It’s an illusion that the harder and faster we work, the better our solutions will be.
Concentrating on working harder just leads to dysfunction, disengagement and burned-out employees simply going through the motions. Productivity is not about busyness but about engagement. Engaged staff are more dedicated, energised and committed to their role than those who go through the motions of doing a good job. It is this additional effort and realisation of ideas and the making of connections that increases performance and profits.
Studies have shown that companies with the highest engagement levels had an operating margin of 27 percent, while those with the lowest were at less than 10 percent. At disengaged companies, 40 percent of employees were likely to leave in the next two years; at the most-engaged firms, the number was 18 percent.
So how do we achieve the elusive ‘employee engagement’? The key is appealing to core psychological needs, such as autonomy, competence, and connection with others that are at the root of the most important motivation: intrinsic motivation. When people act for the sake of it, for the excellence, service, product or challenge, they feel more interested and gratified and deliver extra effort. When there is real quality communication between manager and employee, the employee feels more trusted and valued. This is another key element to building engagement.
Feeling valued means that the culture of the workplace supports the growth and development of employees. It removes obstacles to getting the job done and allows employees to use all of their gifts for the benefit of the organisation. It means respecting and valuing their ideas. If they don’t feel valued, they can burn out quickly. But if they feel valued, they tend to work hard and cope well.
Recognising the value of staff requires effort from leaders to find out what people really think and by taking time to discuss solutions. This means offering positive feedback, looking employees in the eye and affirming that they are doing a good job. Recognising a good idea or dedication to a project encourages engagement, particularly when it goes to a person’s sense of competence, rather than just results. “I like how you handled that.” A sense of competence is a core psychological need that drives intrinsic motivation and a continuous interest in the work at hand.
A personal touch can go a long way to building an engaged team. It’s not just, ‘What a great job you did,’ but ‘When I saw you solve this problem, I realised what a wonderful asset you are to the team, and I can’t tell you how much I appreciate that.’
If anyone is interested in having a conversation about ways of applying this practically to their business please get in touch.
Happy Christmas!
David
Research
- Andrew J Elliot & Judith M Harackiewicz – Journal of Personality and Social Psychology, Vol 70(3), Mar 1996, 461-475.
- Diane Fassel – The Addictive Organization, and also Working Ourselves to Death.
- The Towers Watson 2012 Global Workforce Study – measuring 32,000 people in 29 global markets.