Employee Engagement Essay

They are more(prenominal) profitable, more guest- revolve abouted, safer, and more apt(predicate) to withstand temptations to leave the organisation. In the outstrip makeups, employee elaborateness transcends a piece resources initiative it is the way they do wrinkle. Employee exponentiation is a st esteemgic prelude supported by tactics for driving remediatement and organizational change. The best performing companies know that developing an employee date strategy and linking it to the achievement of bodily goals leave alone care them win in the marketplace. Unleashing the Potential for Growth foremost Average 33% 67% engage 49% Not Engaged actively Dis employed 26% 7% 18% 9. 571 1. 831 ratio of Engaged to Actively Disengaged Whats Your Engagement Ratio? Gallups engagement ratio is a macro-level indicator of an organizations health that allows executives to track the proportion of engaged to actively disengaged employees. The average working population ratio of e ngaged to actively disengaged employees is near 21. Actively disengaged employees erode an organizations arse line, while breaking the inspirit of colleagues in the process.Within the U. S. workforce, Gallup estimates this cost to the bottom line to be more than $300 billion in lost productivity alone. In double-dyed(a) contrast, maiden organizations that study built a sustainable model victimization Gallups apostrophize have an engagement ratio of more than 91. As organizations move toward this benchmark, they greatly reduce the negative effect of actively disengaged employees while unleashing the organizations voltage for rapid growth. procure 2008, 2010 Gallup, Inc. each rights reserved. 1 Gallups Research-Based ApproachGallups employee engagement work is ground on more than 30 years of in-depth research involving more than 17 zillion employees. This research has appeared in many business and scientific publications, including the ledger of Applied Psychology and t he Harvard channel Review and in our bestselling books First, Break all the Rules and the sequel 12 The Elements of undischarged Managing. 12 Elements of Engagement Gallup has developed and determine 12 core elements that link powerfully to exact business outcomes. These 12 statements emerged from Gallups pioneering research as those that best predict employee and workgroup process.The 12 Elements of Great Managing I know what is expected of me at work. I have the materials and equipment I need to do my work right. At work, I have the hazard to do what I do best either day. In the cobblers last seven days, I have received recognition or cheers for doing good work. My supervisor, or person at work, come alongs to care about me as a person. There is someone at work who encourages my development. At work, my opinions seem to count. The mission or purpose of my organization makes me feel my job is important. My associates or fellow employees are committed to doing quality wor k. I have a best friend at work.In the last six months, someone at work has talked to me about my progress. This last year, I have had opportunities at work to learn and grow. Copyright 1993-1998 Gallup, Inc. tout ensemble rights reserved.. 2 Copyright 2008, 2010 Gallup, Inc. tout ensemble rights reserved. Adding Elements In addition to the 12 elements, Gallup recommends adding questions that address your companys rum culture or address business issues facing your organization. Gallups exalted item bank includes key indices to financial aid organizations sum their strength in areas such as innovation, change management, utilizationer orientation, leading, and inclusiveness.Gallups latest meta- analytic thinking (an analysis of data from more than 152 organizations) shows dramatic differences amid top- and bottom-quartile workgroups on key business outcomes. It is through this meta-analysis that Gallup continues to validate the 12 elements. beyond the dramatic difference engaged workgroups show in productivity, profitability, safety incidents, and absenteeism versus disengaged workgroups, Gallup has turn out that companies with conception-class engagement have 3. 9 ms the EPS growth rate compared with organizations with lower engagement in their same industry.Linking Employee Engagement to Critical Business Outcomes Employee Engagement and Critical Business Outcomes 30% 20% 10% 0% -10% -20% -30% -40% -50% -60% -70% -37% -49% -49% -60% -25% -27% -41% turnover rate High Absenteeism Turnover Orgs. Low Turnover Orgs. Safety Incidents Patient Safety Incidents 18% 12% Quality (Defects) Shrinkage 16% Customer Productivity Profitability choke decile companies have 3. 9 times the Earnings Per Share (EPS) growth rate Difference Between Top and Bottom Quartile instruction execution Copyright 2008, 2010 Gallup, Inc. on the whole rights reserved. 3 Systematically Improving Employee EngagementImproving engagement goes beyond simply asking the right quest ions. Engaging employees requires a year-round focus on changing behaviors, processes, and systems to anticipate and respond to your organizations needs. From the attractership team to the frontline employees, all levels within an organization must commit to making these changes. A Sustainable Approach Gallup approaches employee engagement with sustainability in mind, and thus, provides managers and leaders with tools to divine service drive performance on an ongoing basis through a combination of measurement, reporting, learning, action computer programning, and strategic interventions.Using the latest technology and new wave research, Gallup continually provides clients with innovative solutions that drive change. From state-of-the-art organizational mapping software package and online tools to first-class instructional designers and consultants, Gallups approach to employee engagement reduces the amount of time needed to move from measurement to improvement. The worlds top-p erforming organizations recognize the diminutive role managers play in achieving business objectives. As a globular leader in the area of employee ecruitment and selection, Gallup has a proven method for hiring managers and employees with the talents to piss engagement. After reviewing nearly 10,000 validated pre-employment questions and the global Q12 database, Gallup uncovered a subset of questions that enables organizations to assess whether a job butt enddidate, if hired, will boost engagement levels. This engagement selecting approach will help hiring managers find candidates who have more potential to drive engagement in the workplace. Selecting for Engagement 4 Copyright 2008, 2010 Gallup, Inc. each(prenominal) rights reserved.What the Worlds Best Organizations Do Differently Gallup drives organizations to systematically improve employee engagement using proven interventions at the local and enterprise level. Beyond setting the proper strategy, interventions include fi nding the right performance poetic rhythm that drive accountability, creating a comprehensive communication strategy, and designing development opportunities for every employee, manager, and leader. While partnering with many of the worlds best organizations, Gallup has observed that world-class organizations make employee engagement a priority by focusing on the following Strategy World-class organizations develop a formula for victor by looking objectively and rigorously at the business problems they verbalism and by focusing on finding the right employees and keeping them engaged. For these organizations, an employee engagement strategy is not only fundamental to the way they do business, it is critical to their success. Accountability and Performance The top-driven companies focus on outcomes. They define and rigorously measure success at every level in the organization.These measurements ultimately help focus each person, team, department, and business unit on driving perfor mance and results. Communication Within the best performing organizations there is a cultural alignment between the employees and the company, paired with a strategic alignment between activities and company goals. These organizations use their corporate communication touchpoints to reinforce their commitments to employees and customers. Development As the struggle for talent intensifies, organizations face a continual challenge to build and grow their leadership capacity.The worlds top-performing companies have comprehensive leader and manager development programs, but they also go one maltreat further these programs are performance-driven and incorporate a comprehensive succession plan throughout the organization. They make it a priority to not only post leadership potential, but also to focus intently on the macrocosm of developmental paths for current and future managers and leaders. Copyright 2008, 2010 Gallup, Inc. All rights reserved. 5 proved Return on InvestmentIn creasing employee engagement directly correlates with a positive effect on key business metrics. A compact with Gallup enables your organization to design, implement, and execute an employee engagement strategy, and at the same time, your organization will have concrete evidence of the effect of this strategy on the bottom line. Gallups proof of ROI goes beyond the case study level. By continually validating the effect of increasing employee engagement through meta-analyses and business equal studies, Gallup can observe ROI trends across hundreds of clients.The observed net gain in key business outcomes for business units that grow employee engagement is a direct link to ROI. Typical Net Gain at the Organizational take aim 8. 0% 7. 0% 6. 0% 5. 0% 4. 0% 3. 0% 2. 0% 1. 0% 0. 0% Median Growth in Engagement (. 15 GrandMean) m A Tu r Think about the cost to knock back an employee, attract a new, loyal customer, or pay workers compensation. Using fast-flying and simple math with the net gain values provided, your organization can begin to model the ROI it is capable of attaining. 6 Tu r Pa t Pr od er uc tiv ity Pr o? ta bi lit y Copyright 2008, 2010 Gallup, Inc. All rights reserved. h y et af Q ge ow ty eis ka -H fe -L ua lit C ig te rin Sa tS en ve r ve r no no ien bs Sh us to y Performance Optimization Managing the Employee-Customer Encounter Taking employee engagement one step further, Gallups Performance Optimization approach offers an innovative, research-based approach to one of the toughest challenges businesses face at once how to drive success by effectively managing the moments when employees interact with customers.This approach brings employee and customer engagement on to a single management platform. It combines a proven method for assessing the health of the employee-customer encounter with a disciplined process for up(p) it. Gallup is unique in its ability to design and execute this aligned approach because our expertise and global capability in marketplace consulting practices is as plenteous as our expertise and global capability in workplace consulting practices. e Impact of Performance Optimization elevated TM CE11 CUSTOMER combativeness Boost 70% 240% Boost 1. (Baseline) LOW LOW Boost HIGH 70% Q12 EMPLOYEE ENGAGEMENT Our meta-analysis of engagement and financial performance in companies across multiple industries reveals that business units that score above our database median on customer and employee engagement significantly outperform units that rank in the bottom half(prenominal) on both measures. Organizations employing Performance Optimization principles have outperformed their competitors by 26% in gross margin and 85% in sales growth. Their customers corrupt more, spend more, return more often, and stay longer.Blending strategic analysis with hands-on, practical steps and advice, Performance Optimization changes how leaders view their work, their employees, and their customers. Copyright 2008, 2010 Ga llup, Inc. All rights reserved. 7 Gallups Global Reach Gallups 2,000 professionals cant over services at client organizations and from 40 offices around the world. Benchmarking World-Class Organizations Gallup maintains the worlds most comprehensive diachronic and comparative employee engagement databases.The historical database contains data collected in 67 languages from more than 17 million respondents in 175 countries worldwide. Gallup updates the comparative database annually, which enables clients to benchmark their organizations employee engagement levels against the most modern data Gallup collects from around the world. Gallups most recent database, covering the past three years, includes data collected from more than 6. million employees representing more than 815,000 workgroups in 16 major industries and more than 70 sub-industries in 170 countries worldwide. Gallup understands the importance of timely data and relevant comparisons in the competitive landscape of today s fast-paced marketplace. As a result, your organization can compare its engagement data with Gallups global, world-class, industry-specific, or custom database segments. Change That Drives Outcomes Transformation does not occur instantaneously.It takes a lot of strength and effort to initiate change, and it takes even more energy to build on that momentum. It takes focused attention to drive engagement. A partnership with Gallup will help your organization influence and inspire engagement by building a people strategy that holds people accountable for performance, aligns communication, and builds development opportunities for leaders, managers, and frontline employees, giving your organization a competitive edge. 8 Copyright 2008, 2010 Gallup, Inc.All rights reserved. Copyright 2008, 2010 Gallup, Inc. All rights reserved. 9 Best Buy has already had success in connecting alter employee-engagement scores to store performance it found that for every 10th of a point it boosted the former, its stores saw a $100,000 increase in operating income.