We've all heard the joke about the top-ranking employer who is asked how many people work for him and replies “about a third of them". Then there is the Murphy's Law that states "you are always doing something marginal when the boss drops by your desk" and the standard company posters that read "the beatings will continue till morale improves" and "I have plenty of talent, motivation and vision. I just don't care". Jokes aside, employee engagement is a hot topic in today's workplace and leading organizations recognize the vested interest they have in actively measuring, monitoring and maximizing the level of engagement amongst their employees and ensuring their workforce is indeed optimally engaged.
The Towers Perrin Global Workforce Study, the largest of its kind, conducted in May and June 2007 and released in October showed that just 21% of employees surveyed around the world are engaged in their work while 38% are either disenchanted or disengaged and the remaining 41% are only partly engaged. Obviously employees are not exerting their full discretionary effort to meet their companies' goals and agendas and there is a significant reservoir of untapped potential, a gap which Towers Perrin has labeled the "engagement gap".
So why is employee engagement important? The study found that companies with the highest levels of employee engagement achieve better financial results and are more successful in retaining their most valued employees than companies with lower levels of engagement. "It's impossible to overstate the importance of an engaged workforce on a company's bottom line," said Julie Gebauer, managing director and leader of Towers Perrin's Workforce Effectiveness consulting practice. "The Global Workforce Study establishes a definitive link between levels of engagement and financial performance and, for the first time, begins to quantify that link. It demonstrates that, at a time when companies are looking for every source of competitive advantage, the workforce itself represents the largest reservoir of untapped potential."
The Towers Perrin study also discredits a widely held perception that engagement is an innate trait borne of personal values and work experience. The study shows that it is the organization itself ¾ and most particularly, its senior leadership ¾ that has the biggest impact on engagement levels. In particular, the study's findings point to three areas of focus for companies to increase engagement and tap the invaluable reservoir of employee discretionary effort. Employees need their senior leaders to demonstrate inspiration, vision and commitment. Employees want to give more to their companies and their jobs, but also want a clearer picture of what's in it for them.
Employees want to work for a company that is seen as a leader. A big part of what's in it for employees is an organization's reputation. "At the end of the day, said Gebauer, "our study paints a picture of a workforce that is energetic, ambitious and committed to working hard and giving its best. This lays to rest several persistent stereotypes: that employees are loyal only to themselves and their careers and are looking to do the minimum to get by. But turning people's energy and ambition into engagement and ultimately into significant performance lift demands attention, focus and some very different behaviors from senior leaders, as well as clear follow-through on a number of organizational practices. The challenge for senior management is to recognize the value of employees' untapped potential and to channel it in ways that yield real improvements in business performance."
