Recognizing & Engaging Employees For Dummies®
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ISBN 978-1-119-06753-5 (pbk); ISBN 978-1-119-06779-5 (ebk); ISBN 978-1-119-06780-1 (ebk)
You get the best effort from others not by lighting a fire beneath them, but by building a fire within them.
According to the Harvard Business Review, companies spend over $720 million each year on employee engagement — an amount that is projected to rise to over $1.5 billion per year — yet, employee engagement is at record lows. Just 30 percent of employees are currently considered engaged, according to the Gallup Organization, roughly the same percentage as when Gallup first started measuring the topic over 15 years ago.
What’s wrong with this picture? Why is increasing employee engagement so difficult? There’s no refuting Gallup’s extensive longitudinal research that systematically identified the core variables that distinguish high-performing organizations from their competitive also-rans in the marketplace. But knowing what those organizational pressure points are and positively impacting those variables apparently is more difficult than anyone could have predicted.
Or are these engagement scores the proverbial tail wagging the dog? Are companies spending extraordinary amounts of effort (and money) to chase higher engagement scores while overlooking the fundamentals that are necessary for actually better engaging today’s employees?
A painting entitled The Treachery of Images, by Rene Magritte, the Belgian surrealist, hangs in the Los Angeles County Museum of Art … . The work depicts a man’s smoking pipe over the words Ceci n’est pas une pipe (“This is not a pipe”). It’s basically making the point that the representation of something is not the thing itself. In the same way, engagement scores that represent employee engagement are not engagement itself. Perhaps it’s time to focus on the behaviors that truly impact employee engagement, and not just the scores that measure it. This book seeks to do just that.
Recognizing and Engaging Employees For Dummies is a reference book that contains a wealth of ideas, suggestions, tools, techniques and best practices of engagement, recognition, and motivation. There are lots of examples and some case studies — many from my own experience in applying these concepts with hundreds of organizations. You can dip into this book anywhere to find advice, examples, and best practices that can instantly provide you help today. Sidebars are skippable, but you won’t want to skip them, because they provide interesting tangents, tips, and real-life stories that help to bring these topics to life.
I conceived this book to better address the specific actions needed to increase employee recognition and engagement of your employees. I want this book to be helpful to you, whether you are a manager, a team leader, a human resources professional, an executive, or a front-line employee — regardless of your level of experience with employee recognition and engagement.
Although there are many other good books available to supplement this one, including some that I authored — such as 1501 Ways to Reward Employees, The 1001 Rewards & Recognition Fieldbook, 1001 Ways to Energize Employees (all published by Workman Publishing Company), and The Management Bible and Managing For Dummies, 3rd Edition, published by John Wiley & Sons — I wanted this book to stand alone as an ongoing resource and an application guide to help you get the best results from your recognition and engagement efforts.
Many of the items I discuss in this book direct you back to your employees for answers as to how they best like to be recognized, ways you can better involve them in decisions, discussions you should have with them about their work preferences, plans and ambitions as well as to just generally get to know them better!
By purchasing this book I’m assuming that you’re a manager, business owner, or human resource professional that is looking for answers and ideas about what you can do to better motivate and engage your employees. You might also be a front-line employee who’s looking for ways to get your boss to be a better manager to work for, one who makes time for you, supports and encourages you, and thanks and recognizes you more when you’ve done good work. Perhaps you’re a coach or consultant who works with managers and organizations, trying to help them improve their recognition, engagement, and motivation efforts.
If my assumptions are correct, you’ll find that there is something within these pages for you, so long as you are open to considering some new ideas and willing to experiment to learn how best to apply the ideas I include here in your work with others.
Throughout this book, you’ll come across icons that call out different kinds of information. Keep your eyes out for these icons as you’re reading:
In addition to the contents of this book, you can access some really great, related material online that you can access anytime at www.dummies.com/extras/recognizingandengagingemployees
. These extra web goodies are shorter than the book, and give you quick bit of information and guidance on-demand.
The eCheat Sheet gives you a quick rundown of 14 different engaged workplace behaviors, and the ways in which you should recognize your employees to get them. Sometimes, when a recognition issue arises, you’re right in the thick of things at work and may not have time to go back through this book to find the right chapter. The eCheat Sheet articles present info like how to recognize and incentivize employees from different generations in an efficient way so you can solve the problem and keep moving. To access the eCheat Sheet, go to www.dummies.com/cheatsheet/recognizingandengagingemployees
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You can also access some additional helpful bits of information, such as how to get certain business results through recognition, ways to recognize core values, do’s and don’ts of workplace recognition, trends that impact managers’ roles today, and ten common questions about rewards and recognition.
One of the great things about this book (and most For Dummies books) is that it’s written in a modular format in which each chapter stands on its own, enabling you to jump around in the book however you prefer. Of course, you can also read it through from beginning to end as well!
Along the way, if you have any questions or comments about what is discussed, please send me an email at bob@drbobnelson.com
, and I’ll do my best to answer your question. If you’re potentially interested in having me present or consult on the topics discussed in this book to your management team, association, or conference, you can contact me directly about that as well. My direct phone number is (858) 673-0690, and I’m based in sunny San Diego, California, USA. Thank you!
Part I
In this part …
Chapter 1
In This Chapter
Uncovering what employee engagement is
Recognizing why engagement is important
Exploring ways to best impact engagement
Employee engagement has become an ever elusive holy grail in the management of human resources. It seems that the more companies strive to attain it, the more it slips from their grasp. But the quest continues because the topic is too important to ignore. Without an engaged staff, managers have a tough time accomplishing anything‚ let alone the best work possible. To reach and surpass business goals, managers and executives must make sure their employees are active, inspired, and feel good about their work.
Despite its importance, few organizations understand what employee engagement is and how it can drive business outcomes. According to the Aberdeen Group (a research firm specializing in employee engagement), engagement levels are dangerously low for many organizations. Now is the time to fix that. In this chapter, I give you a general overview of employee engagement and explore how some of the best organizations are addressing this topic with much success.
Some say that employee engagement is simply the use of discretionary effort by employees. Others say it’s all about employee connection or productivity or retention. Still others say that it’s simply a score on a survey. I feel employee engagement is the alignment of individual and organizational goals and values to better drive business results.
As human resources consulting company Towers Watson has noted, “Four out of every five workers are not delivering their full potential to help their organizations succeed.” A big reason for that is that workers aren’t fully engaged. According to the Gallup Organization, when you compare nonengaged employees to highly engaged ones, you see that the highly engaged employees are
Organizations that make employee engagement a priority see increased organizational productivity, flexibility, and employee retention. Productivity doesn’t depend on the number of hours someone spends at work; what really matters is how engaged your employees are during those hours. Employees who are engaged in their work have a greater desire to work harder and are thus more productive.
Most organizations need greater flexibility and agility to handle a changing competitive landscape. Employee engagement creates trust between the organization and its employees so that employees are more apt to be flexible and adapt to changing business circumstances and needs.
Sixty-five percent of hires in a recent year were contingent employees, that is, part-time or project-based workers. This trend is projected to represent 30 to 50 percent of the workforce in the future. In addition, 75 percent of all current organizations have employees who work remotely, and 45 percent of companies anticipate increasing that number. This increase in independent workers is forcing organizations to consider how best to manage both full-time and contingent workers within the same organization. Regardless of how their work is structured, organizations will continue to need workers who are engaged and dedicated to do their best to meet or exceed the needs and expectations of their jobs (I talk more about engaging contingent and other nontraditional workers in Chapters 4 and 5).
As the U.S. economy continues to improve, and as current employees seek new job opportunities, holding on to talent will be critical, and doing so can have a major impact on the success of any organization. Engaged employees are more likely to stay longer in their jobs and bring resilience to their organizations. Top employees who are truly engaged remain more committed to staying in their organizations and are less willing to seek other opportunities. Head to Chapter 17 for more on how to better engage and retain high-potential employees.
There are many factors that impact the design, rollout, and effectiveness of employee engagement efforts. Here, I present an overview of six drivers of employee engagement; in Chapter 2, I discuss specific strategies and actions that companies are taking to most improve in these areas.
The number one factor impacting employee performance and engagement is how well an individual employee’s performance (and personal) goals align with the overall organizational goals, mission, and core values. This factor is so crucial, in fact, that it might be hard for you to gain support for engagement initiatives unless they are directly tied to performance goals that drive the organization’s success and profitability. Therefore, as a manager, you have to act as a liaison to connect the organization’s strategic mission with individual values and behaviors of employees.
Having a process in place by which employees and managers agree on performance goals helps drive significant organizational performance. Top-performing companies even support managers with tools and technologies to help initiate performance and goal-setting conversations that better result in this link between individual efforts and organizational goals.
Moving toward a more engaged, accountable workforce doesn’t happen overnight. It requires continual and ongoing effort to change ingrained beliefs and behaviors about the role of employees and leaders in an organization so that employees eventually can say — and truly believe — the following:
Communication is the lubricant of any well-run organization, and it’s especially vital for successful employee engagement. In my research, communication ranked highest (95 percent) of all motivational factors that employees most want in their jobs today. Communication needs to be consistent, bidirectional, involve all levels of the organization, and cover all lengths of time (here-and-now, upcoming, and long term).
Of course, managers and executives must be willing to receive and truly listen to honest and open feedback from employees regarding what they, the employees, most need to be engaged. All staff members should be informed about things critical to the company’s success and how they each can contribute to that success. Through strong communication, employees feel a sense of responsibility for the success of the organization and can better champion the organization’s mission and values, as well as its products and services.
“What do you expect from me in my job?” is the starting point for all performance and engagement. Therefore, setting clear goals and expectations is vital. These expectations typically come from one’s manager. We know from research that the best goals have these characteristics:
Studies have shown that the most important relationship for an employee at work is the relationship between the employee and his or her direct manager. “If you have a good boss, you have a good job” rings true around the world. If employees don’t have support from their managers to be fully engaged, they won’t fully engage. Therefore, as a manager, your primary responsibility is to support your employees. This could mean modeling engagement and recognition, being there when they want or need to communicate, being available to discuss problems, finding ways for your employees to get extra training and development, and so on.
As a manager, you are also the primary communication link between your employees and the rest of the organization and, as such, can help employees develop so that, over time, they can take on new roles and responsibilities in the organization.
Although all development is self-development — that is, employees have to have the ambition, motivation, and skills to want to learn new things in their jobs — your employee engagement strategies should incorporate development opportunities for employees. In most organizations, the role of employee development increasingly falls to one’s manager, with the human resources and training and development departments providing guidance as needed.
Employee recognition is fundamental to ongoing support and motivation of any individual employee or group. As I explain in the upcoming chapters, the key to driving an engagement culture is to systematically recognize employees based on their performance. Although money and other forms of compensation are important to employees, what tends to motivate them to perform at their highest levels are the thoughtful, timely, personal kinds of recognition that signify true appreciation for a job well done. Yet managers and organizations struggle to create an organizational culture that systematically recognizes employee performance when it happens. This book will help you to address that challenge.
Employee recognition programs are quickly becoming one of the fastest growing areas of talent management and a key driver of business success.
I discuss employee recognition extensively throughout this book, and I examine the link between recognition and employee engagement much more thoroughly in Chapter 3.
As indicated in the introduction of this book, the percentage of engaged employees in the workforce has remained roughly constant at about 30 percent for at least the last 20 years, even though an increasing amount of time, energy, focus, and financial investment has been exerted annually to expand that percentage. Why is this?
Assuming that organizations sincerely do care about their employees and not just about business success and profits, four reasons come to mind: 1) measured engagement variables are too intangible and subjective, 2) the focus of corrective actions are misplaced, 3) one size does not fit all, and 4) the management of change is too complex.
Assessing engagement often involves measuring intangible variables, such as employee perceptions, and this may explain why engagement has lagged. Measuring individual perceptions is a slippery slope. The scoring is subjective and can vary due to many circumstances, yet the aggregate scores are treated as objective facts.
How do you systematically impact employees’ perceptions of engagement variables like "At work, my opinions seem to count." A company can do 100 things that it hopes will impact employees’ perceptions with no guarantees that any of those efforts will work. Quite likely, the company would need to do different things for different people to get a more favorable response. One person may just need to have a comment validated by a manager or executive ("Great insight, Gary!"), while another employee may not believe his opinion counts until a manager acts on the input or idea that was provided.
These observations may explain why organizations are moving away from traditional engagement surveys as the primary means of managing engagement strategies. Although surveys are a valuable way to gauge engagement levels, they do not always yield the kind of information that enables organizations to improve their recognition and engagement efforts. In Chapter 8, I talk more about how to measure recognition and engagement in meaningful and useful ways.
Measuring one set of variables but then focusing elsewhere to try to impact those variables seems like a fool’s errand, yet this is exactly how most engagement strategies are structured. Placing the onus of action on the organization and its management rather than the employees themselves with managerial support is a no-win proposition.
Suppose, for example, that you ask employees, “Are you using your full potential at work?” and they report, “No, I am not.” How can any manager alone fix that situation? Any potential solutions will at best be a guessing game, and it makes it a little too easy for employees to report, “No, you still haven’t got it right — try again” the next time they are surveyed.
Notice how the picture changes if you recast the question to, “Are you taking measures to use your full potential at work?” The focus for change is now on those individuals whose negative perceptions were the driving force behind your decision to take action to begin with.
A better strategy is to focus on the behaviors you want to see more of in employees. You can do that by systematically recognizing and reinforcing behaviors that have the greatest impact on this particular variable.
Another challenge of engagement programs is the tendency to have a one-size-fits-all approach to engagement and, particularly, to recognition. Companies put in cool programs to drive engagement that are created around the things the person or committee planning the programs finds motivating. Yet, research shows that no motivation strategy or incentive tends to appeal to more than 40 percent of a typical company’s employee population. And often, the organization only has the budget to create a recognition program that can appeal to 70 percent of the employee population.
Engagement strategies thus need to be individualized around the personal motivations of each employee, and every manager needs to make the necessary connection with those employees that report to him or her. If you hire a workforce that is universally motivated and engaged by the same approach, that is great, but when does that ever happen in real life? Many companies assume everyone is motivated equally by the same things (such as greater pay), which we know is not the case at all.
As you look at the key factors that impact employee engagement (refer to the earlier section “Looking at Factors Impacting Employee Engagement”), they are each relatively clear and are elements that you can easily focus on for improvement. Often, however, managers and executives make two key mistakes:
The result of these errors? The impact of any actions taken become blurred or diminished, and the degree of complexity explodes. The problem is compounded when you overlay the solution on your organization’s annual planning and budgeting process, and the speed of change grinds to a halt.
To combat these tendencies, select one thing to focus on and do it right. Clearly focus on a critical area for improvement and then strive to make true inroads in changing that dimension. You’ll move much closer to being a culture of engagement if you do a deep dive on just one variable and stick with it over a significant period of time rather than trying to improve a dozen variables across the board. The further your focus drifts from the variables you are specifically measuring, the fuzzier the results you are apt to obtain, and you’ll end up about where you started, with no discernable improvement, year after year.
The best way to think about planning, executing, and improving engagement is a concept I draw from the work of W. Edwards Deming and the total quality management movement. It’s called the Shewhart Cycle, and I’ve adopted it here as the PDRI cycle, which stands for “Plan, Do, Review, and Improve.” Read on to find out how it applies to improving your engagement culture and head to Chapter 8 for more details on this approach.
When you think of planning, you likely envision something elaborate and well-documented, but that is not necessarily what I’m talking about here. A plan can also simply be a desire or intention to take a particular action. You might just ask yourself the question, “If we could do one thing to most improve our department’s or organization’s effectiveness, what would that be?” or “How can I best make a motivational impact on my employee or work group?” Obviously, the more complex the activity, the more important a formal plan will be, but regardless of the complexity, the greater the commitment to action you have, the more likely the plan will be implemented.
Start with the end in mind. What is the end-state that you want to create in your organization? Focus on desired behaviors and actions needed to move toward that end state. Create measures that will track progress toward your desired end state.
Doing turns intention into action. Many people have good intentions but never follow through on them. If intentions alone were sufficient, everybody would be successful! The best performers understand the difference between intention and performance; they are action-oriented. They know that without focused action everything is just theory. Although their actions at first might be ineffective, they know that it is important to get the learning-by-doing process started. As the famous Nike advertising slogan proclaims, “Just do it!” Systematically recognize and reinforce those behaviors and actions that you’ve identified could most impact the success of your goals.
After you have engaged in a recognition activity, review it to see what kind of effect it is having. Gaining feedback through a program review is a critical step in the learning process. A review answers such questions as
With an evaluation incorporating the metrics you established beforehand, access what worked well and what didn’t. This review can be elaborate or very simple. Sometimes you’ll do this review yourself, based on direct observation, and sometimes it can be a larger evaluation effort that a group takes on with input from employees, management, and any service providers that may be helping you.
After your review, you can do one of three things: Stop giving recognition (fortunately, most people will not choose this option), continue to give it exactly the same way going forward (this option means you felt your efforts were successful), or decide to learn from your experience and improve the way you give recognition to others (the most likely scenario).
In this step, you implement the lessons you received during your review, making improvements in your own performance. The more you engage in an activity, review the results of your actions, and improve on them, the better you become at that behavior. Using the PDRI model and the additional recognition knowledge contained in this book, you will get better and better at giving recognition. As you recognize others more often, you’ll become more competent and confident in doing so, increasing your skill and effectiveness. The PDRI cycle helps you get better until recognition becomes an ingrained habit. Adjust your plan accordingly and repeat as necessary.
A number of organizations have contacted me for help in improving their focus on just a single variable of employee recognition. They know they need help, based on survey responses to questions such as “I feel valued for the work I do.” My first task is to get them to realize it’s difficult to change anything based on feedback from just a single variable. It’s like trying to guess the shape of a golf ball by looking at a single dimple. You need to expand on that variable to develop a more robust understanding of what is needed. In this case, what does recognition mean to those answering this question? Who is providing (or not providing) recognition? How often is recognition provided? Does recognition vary over time? Does recognition vary with different circumstances? At the very least, you should create an expanded index of variables that all lead to better understanding what employee recognition means for your employees.
I’ve seen people (somewhat comically) try to interpret what a variable means without this broader understanding of the context (“I think what employees are saying by making this variable low is that … ”), but why guess on the meaning of the variables you are measuring when you can simply clarify by