Employee engagement means organizational success. The most recent Gallup poll, which studied about 196,000 American workers, described how companies with the most engaged employees had the best outcomes. In fact, the companies in the top quartile for engagement reported that on average, 70% of their employees felt engaged. Yet the average for U.S. companies is only 33%. Those in the top quartile of engagement, when compared to the bottom quartile, had 20% higher comparative sales, 17% higher productivity and 21% higher profitability. They also had 42% lower absenteeism and turnover (59% lower for low-turnover organizations like credit unions).
Looking beyond the 33% group of engaged employees, we find another 51% who reported that they were not engaged, just “present.” Exceptionally concerning is that 16% are actively disengaged. This unhappy group diminishes productivity and is a drag on those who are engaged. Imagine how well organizations would function if the vast majority of employees appreciated their work and wanted to contribute. What if the numbers of “just present” and disengaged employees were converted to engaged? If your organization is not in the top quartile of engagement, it is time to take action.
A culture of engagement starts at the top. One of the most effective methods to increase engagement is a tool that senior executives themselves use: Coaching for enhanced performance. A Stanford Business School survey of CEOs, directors and senior executives found that nearly all the CEOs thought that being coached would be valuable for themselves. About one-third of the CEOs and half of the senior executives were already receiving coaching from outside consultants. They felt that coaching could improve their skills for team building, leadership, delegation, conflict management, talent development and mentoring.
Forward-looking organizations are applying this C-Suite thinking to their organizations as a whole to increase engagement and, in turn, reap the productivity and profitability rewards that follow. Following from this model, managers become the internal coaches, and outside experts are often deployed to make them proficient. This investment in time and training gives managers skills they need to be effective coaches. Few managers already have effective coaching skills. Moreover, employees are generally not experienced in receiving feedback and are not prepared for interactive coaching conversations. All too often, employees are passive recipients of feedback that is not actionable, usually as part of an annual review. What's worse, if it's not done well, a superior's feedback can contribute to disengagement.
Training your managers to coach and your employees to be active participants in their own development can be among the most important investments you make. Your people can learn these skills. Tools, templates and processes provided in the training will give managers what they need to do it well. High quality instruction allows managers and employees alike to practice coaching conversations and to receive feedback, thereby honing this skill.
This approach shifts mentalities to forward-looking performance development and away from the backward-looking performance evaluation, which managers too often do as an annual “check the box” exercise. Coaching conversations replace the annual performance review with frequent, regular, real-time interactions that take place throughout the year, not just at year-end.
These conversations require planning, but they are worth the time and effort. The manager prepares and uses simple, direct, candid and actionable dialogue aimed at developing employees and driving performance. They describe to the employee behaviors that should be reinforced and built upon, and behaviors that should change. These conversations are characterized by specificity and detail. Managers identify two or three things the employee does well and should keep on doing. Additionally, things that the employee should do differently or not at all are addressed. The manager gives plain examples for each of the behaviors, both the strengths and the weaknesses. People should see themselves in these honest descriptions. The manager and employee discuss and identify the elements that the employee can impact moving forward. They jointly check in on a consistent basis, reconfirming and clarifying priorities and expectations. When obstacles exist, they identify solutions.
The end result is that managers ensure employees have the skills and support they need for effective job performance. Employees learn how to make the most of the coaching relationship. Employees build upon their strengths and work to strengthen the areas in need of improvement. They take responsibility for and commit to their development.
These ongoing, encouraging, purposeful and rewarding conversations generally mean no surprises. Feedback is immediate, achievements are celebrated, defensiveness is reduced and trust is built. This collaborative approach increases engagement, gives a boost to your employees and provides your organization with results.
Stuart R. Levine is Chairman and CEO for Stuart Levine & Associates and EduLeader LLC. He can be reached at 516-465-0800 or [email protected].
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