Terry Vaughn
School of Information
The University of Texas at Austin
December 2, 2004
1. Introduction
2. Defining Employee Engagement
3. Driving Employee Engagement
4. Conclusion
The release of human potential is a major theme in John W. Gardner's book, On Leadership. Throughout his career, Gardner believed that there are tremendous reservoirs of human talent and energy that remain untapped. His belief is firmly supported by research that reveals that up to three quarters of American workers are not realizing their potential on the job. In other words, these workers are not engaged.
Imagine working for a company where half of the employees are doing just enough work to get by; another quarter of the employees are completely disenchanted with their job. That leaves about one quarter of the workforce with employees that are enthusiastic and committed to their jobs, adding value and driving revenue in the organization. Sadly, these circumstances mirror those within the typical company in the United States today. Over the past decade, studies have found that roughly half of all working Americans show up to their job, do what's expected of them, but don't apply their creativity or put in that extra effort to generate outstanding products and services. Even more disturbing, those same studies show that almost one quarter of American workers are completely turned off by their job. The 2003 Towers Perrin Talent Report showed that 17% of employees were "highly engaged," 64% were only "moderately engaged," and 19% were "disengaged" (Towers Perrin, 2003). More recently, the Gallup Management Journal's semi-annual Employee Engagement Index found that only 29% of workers were "engaged" in their work, 54% were "not engaged," and 17% were "actively disengaged" (2004).
This problem occurs when employees become disconnected with management, and foster feelings that their organization does not care about them. But in spite of employees' negative feelings, these studies have found that employees still desire to be a productive part of the organization. Thus, there is a huge, untapped potential that many executives, managers, and employees do not recognize, and therefore have not addressed. For companies, the opportunity cost of this problem is staggering. Estimates run as high as $350 billion annually to businesses in the United States alone (Coffman, 2002).
This paper explores the challenge of employee engagement by first defining engagement, then describing the conditions that can stimulate engagement or lead to disengagement. The bulk of this paper illustrates how managers can cultivate and maintain an engaged workforce.
Engaged employees act in ways that are consistent with the mission, vision and values of the organization. Their values and beliefs are aligned with those of the company. A positive attitude characterizes their behavior, they put forth extra effort without solicitation, and they function in a spirit of partnership. These people have a clear understanding of personal accountability and tend to look to themselves first for resources and solutions. Instead of fixing blame, they fix the problems.
Engaged employees feel energized, recognized, appreciated and encouraged to do their best. They embrace change and look for ways to reinvent themselves while continuing to provide high value. They find new and more effective ways to accomplish their goals and drive the organization forward. They are driven to build and innovate, and ultimately deliver greater value to the organization (Coffman, 2002). Successful organizations like Southwest Airlines and Ritz-Carlton Hotels demonstrate how engaged employees generate value through excellent customer service (Allenbaugh, 2003).
According to Towers Perrin (2003), engagement is derived from two distinctly different modes of thought relating to an employee's choice of work and his or her overall work experience. In every instance, there are both emotional and rational motivators that determine an employee's level of engagement. The emotional aspects of engagement originate from a personal sense of purpose, passion, and commitment. The rational aspects of engagement are based upon an employee's understanding of his or her expectations and role, and how he or she relates to the company's objectives (pp. 4-5). Towers Perrin also warns that a rational sense of engagement is not a sustainable condition over time (p. 28). Managers need to engage employees emotionally to inspire “discretionary effort” (p. 5, ¶ 3).
Those employees who are among what Gallup terms “actively disengaged” undermine the effectiveness of their organizations. These people work against the organization by seeking out and finding flaws. They undermine the effectiveness of coworkers by heightening tensions, which are a reflection of their own heightened stress levels. They avoid new challenges, focus on problems, and even resist attempts at solutions. They feel angry, frustrated and highly disconnected, and have no problem acting out their displeasure. In some respects, they take some degree of pleasure when a leader fails or even when the organization fails. Ultimately, their relentless negative energy drags others down.
In between these extremes of engagement there is a massive pool of workers that are sleepwalking through their daily work. Dubbed “not engaged” by Gallup and “moderately engaged” by Towers Perrin, these employees lack commitment, passion, and energy. Doing the minimum to get by, these employees look to other people to fix problems and find creative solutions. They are quick to explain why something cannot be done and frequently offer excuses. Often, these employees concentrate on tasks rather than the actual goal they are supposed to accomplish. They get caught up in the process, not the product. Most significantly, they don't feel a connection with the company, their manager, or their coworkers. They feel discounted, unappreciated and insignificant.
As discussed earlier, employees engage their work in two ways: rationally and emotionally. In order to sustain employees' engagement levels and retain their services, managers should engage employees on an emotional level, demonstrating concern for employees' well-being. (Bates, 2004). Towers Perrin (2003) also concludes that emotions are the real drivers of employee engagement. The following points illustrate how managers can go beyond rational engagement to inspire employees to do their best.
Managers should begin with a dialogue about what inspires employees and what discourages them. Define a meaningful mission for each employee and set challenging goals, illustrating how they contribute to the company's success. People want to do a good job, they want to contribute, they want to make a difference, and they want to have pride in their work. A meaningful mission and challenging goals tend to bring out the creative best in others (Bates, 2004).
Begin by talking about the expectations of the employee's role. Employees need to broaden their perspective and view themselves within the context of the organization. Companies hire employees to do three things: achieve the business outcomes of their roles, be an active part of creating a productive workplace, and drive customer engagement (Coffman, 2002). Review with employees the expected outcomes of their work and how they contribute to the success of the company.
Disengaged employees tend to lose focus on the outcomes of their work and get caught up in the problems and intricacies of their tasks (Coffman, 2002). Refocus employees on the product, not the process. Clarify how employees can achieve these outcomes, remove barriers, and provide the necessary equipment and resources that will help them reach these outcomes. Ask employees what skills, knowledge, and talents do they bring to their roles; how can they employ these talents to achieve their goals? Sometimes managers can adjust employee roles to better fit their talents.
Throughout the pages of On Leadership, Gardner (1990) stresses that leaders at all levels - from shop floor supervisors to senior management - should be committed to renewal. Maintaining the status quo in a competitive environment is not a viable option. Since most employees want to learn and grow on the job, remember the three R's of renewal: release, reaffirm and reinvent. Managers must continually ask questions. What must the team release or let go of to provide room and resources to support growth? What existing strengths and resources does the team need to reaffirm and intensify to support its next growth steps? How might the team reinvent itself to ensure that it remains at the cutting edge in its field?
Reinforce employees' strengths and encourage individuals to stretch to even higher levels of performance. Present opportunities for career advancement: in-house training or matching funds for formal instruction. Continually coach for success, finding ways to increase valuable skills. Building ongoing coaching into the culture produces a high return on investment while engaging people in their own success and effectiveness (Allenbaugh, 2003). Coaching is an ongoing, collaborative process intended to clarify performance targets, reinforce strengths and encourage individuals to stretch to even higher levels of performance. When a company takes an interest in the development of its employees, it adds to employees' sense of job security (Jamrog, 2004, p. 30).
Employees who are not engaged often feel that their accomplishments are being overlooked; their potential is not being tapped. They feel this way because they don't have productive relationships with their managers and coworkers. Healthy relationships are critical to organizational effectiveness. As technology grows in complexity, jobs become increasingly specialized. As a result, workers must rely on each other more to create products and services. Conflicts and complacency hamper these interdependent relationships and adversely affect productivity.
Gallup recently released the results of a survey that probed employees' level of engagement and their relationships at work. Among the findings, Gallup revealed a strong correlation between engaged employees and an environment where friendships are encouraged. Eighty-one percent of engaged employees agreed when asked if their organization encouraged “close friendships at work” (Crabtree, 2004, p. 1, ¶ 6). Even more telling, “fifty-one percent of employees who strongly agree that their organization encourages close friendships at work are extremely satisfied with their place of employment, compared to just nineteen percent of employees who disagree with that statement” (¶ 7).
In the same survey, Gallup asked respondents to answer two sets of questions, first regarding their manager and then regarding a coworker with whom they frequently work. The most salient finding revealed that engaged employees perceived “an element of selflessness” in their managers and closest work partners. Engaged employees felt as though their close collaborators sacrificed for their success. Unlike their “not engaged” counterparts, engaged employees also agreed that their manager and colleagues complemented their strengths and were understanding of mistakes (¶ 10).
These findings suggest that engaged employees consider their relationships to be crucial to their success. Managers who want to boost workgroup engagement levels would benefit from developing trusting and supportive relationships with their employees, and promoting collaborative, constructive relationships within the organization.
Measurement is crucial to an employee's feelings of success. Good measurement aligns with outcomes and matches the expectations for the role (Coffman, 2002). It can also build a sense of achievement as long as the measurement is carefully calibrated to expectations. Managers must review the measurement system carefully to ensure that it focuses on outcomes, not steps. For example, measuring the number of calls a salesperson makes reinforces process, not product. But measuring the number of sales clearly aligns with an outcome for the salesperson's role.
The vast majority of American workers are not engaged in their job. This presents a significant challenge and a great opportunity to unleash the great potential lying dormant in the offices and shop floors across America. Adhering to cold bureaucratic views of management, managers have avoided engaging employees on a personal level. Contrary to these notions, studies have found that firms must focus more on engaging employees on an emotional level in order to yield greater performance. As business and technology continually grow more complex, jobs become more specialized, and therefore workers must depend upon others to meet their objectives. To meet this demand, managers should encourage healthy relationships that provide the basis for productive cooperation.
Managers should not fall prey to the myth that employees' levels of engagement can be adjusted by manipulating their salary, bonuses, or other pay incentives. Pay has a limited impact on long-term employee engagement (Patterson, 2004). These facts are further supported by The 2003 Towers Perrin Talent Report, which reveals that across industries, engagement is significantly higher in nonprofit organizations, where pay is traditionally modest. Employees are drawn to nonprofit endeavors out of a sense of mission, rather than from any prospect of high pay or wealth accumulation. This example reminds us that engagement cannot be bought.
Allenbaugh, E. (2003, April). The Eyes Have It. HR Magazine, 48(4), 101-104. Retrieved November 4, 2004, from Business Source Premier database.
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Coffman, C. & Sanford, B. (2002, August 8). Start Worrying About "Not Engaged" Employees. Gallup Management Journal. Retrieved November 4, 2004, from LexisNexis Academic database.
Crabtree, S. (2004, June 10). Getting Personal in the Workplace. Retrieved November 4, 2004, from Gallup Management Journal Web site: http://gmj.gallup.com/content/default.asp?ci=11956
Gallup Management Journal. (2004, June). Employee Engagement Index. Princeton, NJ: The Gallup Organization.
Jamrog, J. (2004). The Perfect Storm: The Future of Retention and Engagement. Human Resource Planning, 27(3), 26-33.
Gardner, J. W. (1990). On Leadership. New York, NY: The Free Press.
Patterson, S. (Ed.). (2004, March). The Myths of Performance Improvement Programs. Managing Training and Development, 5-7. Retrieved November 2, 2004, from Institute of Management and Administration Web site: http://www.ioma.com/pub/MTD/2004_03/593271-1.html
Towers Perrin (2003, September 1). The 2003 Towers Perrin Talent Report. Retrieved October 5, 2004, from Towers Perrin Web site.