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September 1, 2009

Is Employee Engagement Passé?

By Peter Barron Stark and Jane Flaherty

The buzzword most recently associated with employee satisfaction was “engagement.” As recently as two years ago we were writing about the impending talent drain, as boomers would be leaving the workplace in masses for retirement. We stressed the importance of creating a workplace where employees would feel motivated, enthused, and, most importantly, “engaged.” Focusing on “engagement” would lead to high levels of employee satisfaction and give the organization a competitive edge when it came to attracting and retaining top talent.

That was two years ago. Today the whole business landscape has changed. As of July 2009, California’s unemployment rate is 11.5%. Massive layoffs have had a profound impact on not only the way we do business, but on the employees who are left shell-shocked after layoffs, wondering if and when the ax may fall on them.

We’re not hearing the word “engaged” much these days as it relates to employees. In fact, some leaders have been so bold as to say, “I really don’t care what employees think and how they feel. They have a job and should be grateful to have survived the last round of cuts.”

So, does employee engagement still matter? We know it does, now more than ever.

Watson Wyatt’s “Driving Business Results Through Continuous Engagement 2008/2009 WorkUSA Survey Report” reports that when employees are highly engaged, their companies drive 26% higher productivity, have lower turnover, and are more likely to attract top talent. More impressively, companies of highly engaged employees earned 13% greater total returns for shareholders during the past five years. Clearly, engaged employees positively impact the bottom line.

Many of us today are working with fewer employees and are tasking those remaining employees with doing more than ever before. The outcomes of an engaged workforce—productivity, high levels of morale, and customer satisfaction—are absolutely critical to your organization’s survival in this economic downturn. We acknowledge that it’s not easy to keep spirits up during these challenging times. Daily we are bombarded with negative press regarding lack of consumer confidence, falling home prices, home loss due to foreclosure, unemployment, and more. Times are tough, and now more than ever, employees need strong leaders. So strive for excellence, not perfection.

What follows are six tips to engage your workforce.  Putting them into practice will help you not only survive but thrive in these trying times. By leading a motivated, engaged workforce, you will have positioned yourself for success.