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Keeping Employees Engaged posted on Tuesday, 30 June 2009

Smart business owners never stop looking for innovative ways to strengthen their organization.

They understand the important impact employees have on the bottom line. But during a volatile economy, many employers grapple with cost-effective and creative approaches to help encourage and captivate their top performers.

According to a recent WorkUSA Report conducted by Watson Wyatt, companies with highly engaged employees enjoy 26 percent higher employee productivity, have lower turnover risk and are more likely to attract top talent. These companies also earned 13 percent greater total returns to shareholders over the last five years.

In addition, the survey found highly engaged workers tend to be more supportive of organizational change initiatives and resilient in the face of change. This is especially important during a tough economy, when companies are laying employees off left and right, and tensions are high. Engaging employees doesn’t require an extensive budget. Instead, applying the following human resources practices can help any size company achieve success regardless of the circumstances.

Strong leadership. It starts from the top. Employees look to company leadership for guidance. One suggestion from Watson Wyatt’s WorkUSA study is for leaders to clearly communicate their rationale to employees in order to build support. Employees want to know what’s going on and how they can make a positive contribution if necessary.

Business leaders can demonstrate their commitment to employees by personally visiting with the entire team, not just supervisors, on a regular basis. In order to establish their loyalty, it’s important for employees to feel a connection with management. Whether it’s traveling or talking through video chat, providing one-on-one time helps unify management with employees. Effective communication. During good times and bad, sound communication practices have often been cited as the motivating force behind some of the world’s most successful organizations.

For example, in a BusinessWeek online article about employee engagement, Nanette Byrnes highlights how Gamal Aziz, chief executive officer of MGM Grand Hotel and Casino in Las Vegas, has effectively transformed the organization through employee engagement. According to the article, Aziz communicates with his 10,000 employees by obtaining their feedback on a regular basis. In addition, Aziz shares his own concerns with employees.

As with any relationship, no one wants to be kept in the dark. While some companies feel it is best to shield employees from unpleasant news, this often paves the way for rumors to disseminate throughout the organization. This can lead to mistrust, which often results in good employees leaving a company. In addition, Watson Wyatt’s WorkUSA study suggests reviewing processes to ensure information is communicated both vertically and horizontally throughout the organization.

Career development. In order to keep top-notch employees, employers need to show their commitment. A recent HRTools.com article titled, “How Winning Employers Engage Employees During an Economic Downturn,” cited a survey conducted by Quantum Workplace, which revealed that successful companies help employees focus on growth and development opportunities despite the economic crisis.

One way companies can help employees advance in their career is through training programs. Not only can employees improve their current skills to boost performance, but they can also acquire new abilities that can help the company in the future. Companies should consider all avenues, including programs available through the Internet, local universities and community colleges.

Reward and recognition. While many companies are cutting back on pay raises, there are other ways to demonstrate the value placed on employees. Effective incentive programs don’t always offer lucrative bonuses or prizes. A weekly drawing or casual workday can prove to be just as powerful when it comes to aligning employees with organizational goals. Consider polling employees to determine which rewards may be of interest to them.

Recognizing individual achievements on a consistent basis can also help send the right message. Whether it’s highlighting an employee at a company meeting or publishing an article on the company intranet, acknowledgement from leadership has a lasting impact on the individual and the entire organization. More than ever, business owners need to retain their best employees to ensure the long-term success of their companies. One way to do this is to make sure employees feel valued and know the company is dedicated to helping them achieve personal goals. Companies that invest in their employees by cultivating an open environment with opportunities to thrive will find the commitment they seek will easily follow.

Steve Moore is a team manager in San Diego for Administaff, the nation's leading professional employer organization (PEO), serving as a full-service human resources department that provides small and medium-sized businesses with administrative relief, big-company benefits, reduced liabilities and a systematic way to improve productivity. The company operates 50 sales offices in 23 major markets.

Posted by Steve Moore