TOMS Shoes and United Business Machines: Causes, customer retention and word of mouth marketing
January 17, 2011How to Make a Million Before Lunch – Competition & Interview with Rachel Bridge, Author and Enterprise Editor for The Sunday Times
January 22, 2011If we look at successful companies Zappos or Southwest Airlines in the USA or John Lewis and First Direct in the UK, to name but a few, it’s clear to see that in order to create more customer centric, customer responsive, customer service lead companies it requires great teams, people and employees that are very ‘engaged’ with what they are doing.
I’ve written about employee engagement before and in a previous post where I stated that I believe that:
Employee engagement is one of the key elements of building a successful and thriving business. It’s the bed-rock of getting things done, great customer service, repeat business and sustainable growth.
But, what is employee engagement?
I believe that employee engagement is fundamentally about helping your team members do things that matter, making sure that that they feel valued, that they are listened to, that they are supported by the people around them and that they are, in turn, supported to achieve the things that they and the business want to achieve. The results being a more productive and motivated individual, more effective team, better business results and happier customers.
Therefore, when I read a new article the other day from HR magazine called HR not winning engagement argument, MacLeod warns HR seminar, which talks about a new report by David Macleod that looks into the level of employee engagement in UK companies, I thought I’d share that with you. The report goes on to say:
Our research found that CEOs are not listening to the message around engagement, because HR is not convincing them of its importance. More than half of CEOs are not engaged in engagement, the HR survey found: 22% do not understand the concept, 19.2% are not aware of the business benefits and 14.5% are aware of the concept, but do not believe there will be any ROI.
I found these results quite shocking particularly when it is generally known and understood that sustainable business growth, great customer service and high customer retention is fueled by great teams of people. This is supported by other research, here’s an article from Management Issues, that reports that:
Research by consultants Hay Group, for example, suggests that up to 30 per cent of variance in business results can be explained simply by differences in the work climate.
If we believe these results, my question would be:
What’s stopping business leaders and CEOs, whether in large firms or small, from making that leap from where they are to actually turning ‘our people are are most important asset’ into a reality?
Is it a lack of skills or knowledge of how to achieve this?
Is it a different set of priorities?
Is it too hard?
I believe it’s probably a combination of all of these factors in different measures depending on their own context.
However, I would really appreciate your thoughts and insights on this issue. Please leave your thoughts in the comments below.
Thanks to PhotoJonny for the image.
21 Comments
Adrian, I think if you were to ask CEOs what they see their personal role in employee engagement to be, they would tell you they do two things: set the vision for the work place and meet directly with customers. And many would be convinced that they have done ‘their’ part; it’s everyone else’s responsibility to follow through. From that mindset, they are perfectly correct. And as they get onto other elements of strategy, they send a clear message that real executives say one thing and do another. So everyone else follows suit.
Where some executives distinguish themselves is in the way the foster a climate for employee engagement. It’s how they keep the employee experience high on the radar and connect that to business results, by telling current stories about employees and customers together making the company successful, by asking others what they are learning about customer needs, and asking again and again, where the company can do more.
It’s the difference between tacking employee engagement as something to do and check off the list vs. realizing you have to foster engagement every day.
Hi Marc,
I think you are spot on and think that there is a lot about engagement that isn’t just talking about it. Leaders have to learn that a lot of it is about leading from the front and making it real and encouraging participation and ideas from all of those around you at all levels.
Adrian
Adrian,
My thoughts are: The CEO’s ‘reality’ as you state, is not a reality that is centered around the belief that people come before profit. You mentioned Southwest Airlines and I’m sure your aware that was one of Herb’s beliefs and that is why they have never lost money since they began in 1971.
The core of being employee centric is not saying it, it is the congruency between the words and actions, which builds employee trust and that’s what creates engagement. Staying within the airline theme, Gordon Bethune’s Continental turnaround is a good testimony of how that works.
I too, don’t understand why so many companies don’t get that?
Bill
Hi Bill,
Thanks for your contribution and examples from the air industry. I think you are right. This idea about engagement and results for most CEOs….do you think that boards and shareholders need to start thinking about putting it on CEOs scorecards to make sure it is taken care of and paid attention to. Is that the solution? Or, a solution?
Adrian
This reminds me of a appraisal I had a few years ago with my then boss. He said “the trouble is with you Matthew, you spend far too much time on the easy stuff, like people”.
Funnily enough I’ve never once thought that managing or leading people was easy. Maybe he was naturally gifted?!
Reality is that a Marc says, the CEO’s (or other members of the Exec Team for that matter) think they’ve done their bit and engagement is an HR issue. This i s not true. Quite plainly. It’s the job of everyone (both workers and exec’s) encouraging feedback and honest coversations all set the scene to have high engagement. But establishing the link between doing the job and the end result is absolutely critical.
The vision needs to be that the employees are doing a wider good and that their involvement is key. Which reminds me of the journalist who interviewed a cleaner at NASA back in the 60’s. “What exactly do you do around here?” he said and recieved the reply “I’m helping put a man on the moon”.
Hi Matthew,
Thanks for dropping by and leaving a comment. I love the NASA story….classic and so true. It has to be about the wider goal and it is the leaders responsibility to communicate that, help people to understand it and, ultimately, to let go of it and give responsibility and ownership of it to their people.
Your previous boss must have been very gifted. I would love to meet him! 😉
Adrian
Q: Why do most CEOs not get Employee Engagement?
A: Because they trained as accountants!
(Sadly, particularly with larger PLCs, you will find this to true)
Hi Malcolm,
I fear that there may be some truth in what you say but I take heart from the fact that I know many accountants in industry and in their own practice that are becoming more and more people oriented and leading the way……so I see some light at the end of the tunnel. Or, am I just living in hope?
Adrian
Terrific work! This is the type of information that should be shared around the web. Shame on the search engines for not positioning this post higher!