Every two weeks we bring you opinion, news and research on Employee Engagement, Leadership and Organisational Performance, along with some thoughts on practical workplace applications.
Editorial: Getting Beyond Employee Engagement to Business Transformation
For any organisation, having highly engaged employees is a great ambition; but to what end? For sure, engaged employees bring with them a whole raft of benefits – a happier working environment; more innovation and creativity; the application of discretionary effort; less time off due to ill health; and as research shows, higher productivity, among many others. All good things for any organisation, and instinctively we know it’s true.
But what is the evidence that having engaged employees really does make a difference to business performance?
Recent research by Emenex’s business partner IBM Kenexa, specialists in employee surveys and measurement of employee engagement (amongst other things) can help us to answer that question.
Two factors are key in understanding this relationship between engagement and performance: firstly, the IBM Employee Engagement Index (EEI); secondly, the IBM Performance Excellence Index (PEI).
IBM define employee engagement as, “The extent to which employees are motivated to contribute to organisational success and are willing to apply discretionary effort to accomplishing tasks important to the achievement of organisational goals.” The EEI therefore measures employees’ pride in their organisation, satisfaction with their organisation as a place to work, the extent to which they would recommend it as a place to work and how often they consider working elsewhere. These four components provide a coefficient alpha of .91 (i.e. a quite high internal consistency estimate of reliability).
Performance excellence is defined as, “The extent to which an organisation is strongly committed to high levels of customer service and product quality and relies upon continuous improvement practices to achieve superior organisational results.” Building on that, the PEI measures four components: customer orientation; quality emphasis; training; and involvement. These components provide a coefficient alpha of .86 (i.e. a quite high internal consistency estimate of reliability).
IBM’s research benchmarked its own data with four other indices, to test the hypothesis that the correlation existed: the American Customer Satisfaction Index; diluted earnings per share; three year shareholder return; and return on assets. In each case, for both EEI and PEI, the top 25% of organisations in each index performed better than the bottom 25% or organisations, by substantial margins. (You can download the full report here if you want the details – no registration required).
So the evidence clearly shows that organisations that invest in management practices that lead to higher engagement amongst employees, and who at the same time emphasise customer service, quality, employee training and employee involvement, are significantly more successful in the areas of customer satisfaction, returns to shareholders and return on assets.
The conclusion from the research is clear: Both the PEI and the EEI are related to organisational performance, but the combination of the two more fully explains performance than either measure alone.
That is why Emenex are so committed to working with IBM’s Employee Voice platform. There is no other survey platform as powerful or insightful (at least, not that we have found) for helping clients gather and understand in detail where action needs to be taken in their organisation to bring about business transformation.
IBM Kenexa are survey experts; Emenex are survey interpretation and implementation experts. Contact us today to explore how this combination could bring advantages to your organisation and contribute to programmes of transformation.
Blog: What Organisations Can Learn From a Surprising Paralympic Success
The Paralympic Games in Rio, which ended last weekend, provided entertainment, inspiration, drama, excitement and, for me at least, the greatest of admiration for some astonishing sporting achievements.
One thing that surprised me as the games progressed, was just how well Ukrainian athletes were performing, and thus the number of medals they were winning. They finished the Paralympics 3rd in the medal table. Only a couple of weeks previously at the Olympic Games, Ukraine had finished 31st on the medal table (their own worst performance ever). So congratulations and well done to all Ukrainian Paralympians.
So why were their Paralympians so much more successful than their Olympic counterparts?
It’s time to move beyond engagement. Empower and align employees with organisational priorities to build a culture of high performance, well being and career satisfaction. To learn more, call 03450 523 593
The Power of Your People: Why Employee Engagement Programs are Essential to CSR Initiatives
We’ve known for some time about the clear linkage between employee engagement and productivity [see the editorial above – Ed]. Here’s an interesting article showing how Ingersoll Rand harnessed employee engagement to their Corporate Social Responsibility (CSR) initiatives [It would be interesting to see more research into the impact of employee engagement in this area too – Ed.]
“Not only does this demonstrate the tremendous impact of strong employee engagement on our greater CSR goals, it also inspires everyone to contribute more once they see the difference they’re making” says Scott Tew, Executive Director of the Centre for Energy Efficiency & Sustainability at Ingersoll Rand. Read the story here.
Why Great Organisational Cultures Advance Winning Business Strategies & which Companies are Leading the Way
A great organisational culture has been viewed in the past as a “nice-to-have”, but not a business imperative. The evidence is becoming increasingly irrefutable, however, that:
- Companies who have taken steps to create outstanding cultures see an impact on their bottom line.
- Companies who don’t, pay the price in terms of staff turnover and lower customer loyalty and trust.
“Culture eats strategy for breakfast” famously said Peter Drucker. Successful companies need a point of difference, and culture is more powerful than strategy in this regard. While competitors can imitate your strategy, they can’t copy your culture.
Engage for Success have compiled their list of the top 5 stats underlining why great company culture is a must. Go here for their list, and see also the companies declared as finalists for Organisational Culture Excellence 2016.
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