Stressed employees are not productive employees. Responsible, forward thinking organisations want their people to not only be in control of their life and work, but also their finances.
Think about it, it makes sense, the less stressed and more in control of their life employees are, the better they will perform at work. Companies that have people with low financial anxiety benefit from greater performance and morale. But unfortunately most employees spend as much as 25 hours a month worrying about their financial situation. For a company of 100 employees, that can mean close to 30,000 unproductive working hours or 750 lost working weeks per year.
Almost 97% of employees say they experience financial stress, yet only around 3% take responsibility (self-leadership) to create something as simple as a cashflow for their own life. So "How do you give your employees a 10% pay rise without giving them anymore money"? Answer: Help them take more control of their cashflow with tools and training. Research shows that more awareness of your cashflow can increase your financial situation by around 10% per year.
So there can be huge benefits in providing your people with tools and resources to be able to take better control of their financial situation. Recently one of our clients paid all their people an extra one hour to allow them to go and do their personal cashflow program on employee engagement system meCentral.com
The philosophy for helping employees take more control of their cashflow and other financial issues is exactly the same approach when applied to other key areas such as career development, work life balance and life goals.
Tuesday, June 3, 2008
Friday, May 23, 2008
Where Have We Gone Wrong With Employee Engagement?
True employee engagement is achieved when employees know what is important to them, a new innovative approach which somewhat turns current thinking on its head through a self-leadership philosophy now known as "self-driven employee engagement".
In search of this elusive ‘engagement', many companies have mistakenly indulged in a range of employee benefits that act merely as a ‘band-aid' to the symptoms of disengagement rather than address the core drivers behind what really engages individuals. Many employee engagement solutions have offered an ineffective mixture of employee benefits and commonly creating an ‘entitlement' or ‘whinge' culture.
The ‘Inside Out Approach'
Psychologically most people know what they don't want. However, few really know what they do want. If employees don't know what truly engages them in work and life, it is virtually impossible to sustainably engage them. The key is helping employees take responsibility for driving their own engagement (self-driven employee engagement) by getting clarity around what they want both inside and outside of work.
Almost everyone wants more control over their lives. Self-leadership is the philosophy of putting individuals back in control by giving them the thinking, tools and personal responsibility to get clear on what they want in work, life and personal finances.
By providing the tools, environment and solutions by which employees can get greater clarity around what they want, what motivates them and what is important to them, both inside and outside of work, organisations can create a sustainable win-win culture, thereby building a workforce that is engaged, productive and performing to its highest potential.
In search of this elusive ‘engagement', many companies have mistakenly indulged in a range of employee benefits that act merely as a ‘band-aid' to the symptoms of disengagement rather than address the core drivers behind what really engages individuals. Many employee engagement solutions have offered an ineffective mixture of employee benefits and commonly creating an ‘entitlement' or ‘whinge' culture.
The ‘Inside Out Approach'
Psychologically most people know what they don't want. However, few really know what they do want. If employees don't know what truly engages them in work and life, it is virtually impossible to sustainably engage them. The key is helping employees take responsibility for driving their own engagement (self-driven employee engagement) by getting clarity around what they want both inside and outside of work.
Almost everyone wants more control over their lives. Self-leadership is the philosophy of putting individuals back in control by giving them the thinking, tools and personal responsibility to get clear on what they want in work, life and personal finances.
By providing the tools, environment and solutions by which employees can get greater clarity around what they want, what motivates them and what is important to them, both inside and outside of work, organisations can create a sustainable win-win culture, thereby building a workforce that is engaged, productive and performing to its highest potential.
Tuesday, May 20, 2008
DO YOU REALLY KNOW WHY YOUR PEOPLE LEAVE?
The key thing to be aware of is that, there are rarely talent shortages in great workplaces. It is the case that organisations short on talent usually deserve to be!"
There are many reasons why people leave, but almost all issues fall into these seven key areas:
1. POOR LEADERSHIP
Management that doesn't keep employees informed or show them appreciation and where there is a lack of respect, trust and integrity.
2. LACK OF PURPOSE
The organisation lacks a meaningful purpose that makes a real difference and isn't aligned with the values of the individual employee.
3. POOR REWARDS
There are no clear links between employee performance and business outcomes. The employee doesn't feel fairly rewarded for their contributions to the organisation's success.
4. LACK OF OPPORTUNITY
There are very few development opportunities and people have limited career advancement prospects.
5. POOR RELATIONSHIPS
Poor, negative and non-collaborative relationships exist between leaders, co-workers and within teams. Individuals don't feel like they have a community of friends at work.
6. POOR JOB FULFILLMENT
The nature of the day-to-day work is consistently unfulfilling and boring to employees and typically lacks challenge and the utilisation of their key strengths.
7. POOR WORK LIFE BALANCE
The business environment doesn't support a life outside work for employees.
SOME VITAL QUESTIONS TO KNOW THE ANSWER TO:
How well do you conduct staff satisfaction surveys / engagement surveys?
How quickly do you implement the findings of these surveys?
What are the real reasons for your people leaving or staying?
What is the financial cost to the business of losing an employee?
What is your company turnover rate? How does it compare for your industry?
Do you put more effort into recruiting new people or engaging your existing people?
What three things need to change specifically for your organisation to improve employee engagement?
There are many reasons why people leave, but almost all issues fall into these seven key areas:
1. POOR LEADERSHIP
Management that doesn't keep employees informed or show them appreciation and where there is a lack of respect, trust and integrity.
2. LACK OF PURPOSE
The organisation lacks a meaningful purpose that makes a real difference and isn't aligned with the values of the individual employee.
3. POOR REWARDS
There are no clear links between employee performance and business outcomes. The employee doesn't feel fairly rewarded for their contributions to the organisation's success.
4. LACK OF OPPORTUNITY
There are very few development opportunities and people have limited career advancement prospects.
5. POOR RELATIONSHIPS
Poor, negative and non-collaborative relationships exist between leaders, co-workers and within teams. Individuals don't feel like they have a community of friends at work.
6. POOR JOB FULFILLMENT
The nature of the day-to-day work is consistently unfulfilling and boring to employees and typically lacks challenge and the utilisation of their key strengths.
7. POOR WORK LIFE BALANCE
The business environment doesn't support a life outside work for employees.
SOME VITAL QUESTIONS TO KNOW THE ANSWER TO:
How well do you conduct staff satisfaction surveys / engagement surveys?
How quickly do you implement the findings of these surveys?
What are the real reasons for your people leaving or staying?
What is the financial cost to the business of losing an employee?
What is your company turnover rate? How does it compare for your industry?
Do you put more effort into recruiting new people or engaging your existing people?
What three things need to change specifically for your organisation to improve employee engagement?
Thursday, May 15, 2008
DISENGAGED FROM THE FIRST DAY OR JUST CONDITIONED THAT WAY OVER TIME?
On average, 80 per cent of employees are not engaged or actively disengaged.
Do we, as leaders, hire them disengaged or do we condition them that way?
The clearest driver that differentiates Best Employers is leadership. Most employees do not leave jobs or companies - they leave managers. Leaders need to keep their people informed and appreciated. Australia has one of the highest management avoidance styles in the world. Any cultural change should start from the top down and employee engagement is no exception. When it comes to making your company a great place to work, management practices are vital.
ISSUE: Become the change we want to see in our people and organisation
WHO'S FAULT IS DISENGAGEMENT?
The reality is that organisations are at fault for a disengaged employee. Key reasons for this are:
• Lack of awareness and understanding of employee engagement issues
• Managers are not committed to employee engagement
• Poor recruitment processes
• Lack of information communicated to employees
• People are not understood and coached
• Employees are not being praised and appreciated
TAKING OWNERSHIP OF ENGAGEMENT
Leaders need to take personal responsibility to create an environment where employees are as engaged as much as possible, and want to perform at their best.
Sometimes a good starting point is a top-down strategy. This means that managers need to understand employee engagement themselves. Once they understand engagement at first hand they are in a much better position to assist their people. But remember, if engagement is not measured, it cannot be effectively managed.
Do we, as leaders, hire them disengaged or do we condition them that way?
The clearest driver that differentiates Best Employers is leadership. Most employees do not leave jobs or companies - they leave managers. Leaders need to keep their people informed and appreciated. Australia has one of the highest management avoidance styles in the world. Any cultural change should start from the top down and employee engagement is no exception. When it comes to making your company a great place to work, management practices are vital.
ISSUE: Become the change we want to see in our people and organisation
WHO'S FAULT IS DISENGAGEMENT?
The reality is that organisations are at fault for a disengaged employee. Key reasons for this are:
• Lack of awareness and understanding of employee engagement issues
• Managers are not committed to employee engagement
• Poor recruitment processes
• Lack of information communicated to employees
• People are not understood and coached
• Employees are not being praised and appreciated
TAKING OWNERSHIP OF ENGAGEMENT
Leaders need to take personal responsibility to create an environment where employees are as engaged as much as possible, and want to perform at their best.
Sometimes a good starting point is a top-down strategy. This means that managers need to understand employee engagement themselves. Once they understand engagement at first hand they are in a much better position to assist their people. But remember, if engagement is not measured, it cannot be effectively managed.
Thursday, February 7, 2008
DO YOU HAVE MORE 'EAGER BEAVERS' OR 'COMPLACEMENT COWS'?
I am still finding many people are unclear about the distinctions between attraction, retention and engagement. On the surface they can be seen to be very similar, especially retention and engagement, yet they are very different.
1. ATTRACTION
Attraction is about how you recruit and hire the right people into an organisation at the right time via techniques such as recruitment and employee branding strategies
ISSUE: Continually breaking in new employees is no way for your company to continue being competitive.
2. RETENTION
Retention is about making sure they stay in the company. They may stay, but not necessarily be engaged. Typically about 60-80% of your workforce will be retained.
ISSUE: Some employees quit and leave - the really bad news is others quit and stay
3. ENGAGEMENT
Engaged employees usually only make up about 20% of your team. Engagement is about making sure they not only stay but are passionate about the company and the work they do and are therefore more committed and productive. Employee engagement is the extent that employees are committed to the success of a business, believe in its values, are fulfilled and passionate, feel pride in working for their organisation and are motivated to go the extra mile.
Engagement is the heart and mind connection between employee and work. It is basically having the right people in the right place at the right time and at the right price. If you are engaged you will probably be retained. But you can be retained and not necessarily engaged. Engagement is about having an employee who is an "eager beaver" whereas retention can mean you may keep "complacent cows", who are just doing their job but not engaged.
ISSUE: Employee Engagement = Increased performance = Improved productivity = Greater profitability
1. ATTRACTION
Attraction is about how you recruit and hire the right people into an organisation at the right time via techniques such as recruitment and employee branding strategies
ISSUE: Continually breaking in new employees is no way for your company to continue being competitive.
2. RETENTION
Retention is about making sure they stay in the company. They may stay, but not necessarily be engaged. Typically about 60-80% of your workforce will be retained.
ISSUE: Some employees quit and leave - the really bad news is others quit and stay
3. ENGAGEMENT
Engaged employees usually only make up about 20% of your team. Engagement is about making sure they not only stay but are passionate about the company and the work they do and are therefore more committed and productive. Employee engagement is the extent that employees are committed to the success of a business, believe in its values, are fulfilled and passionate, feel pride in working for their organisation and are motivated to go the extra mile.
Engagement is the heart and mind connection between employee and work. It is basically having the right people in the right place at the right time and at the right price. If you are engaged you will probably be retained. But you can be retained and not necessarily engaged. Engagement is about having an employee who is an "eager beaver" whereas retention can mean you may keep "complacent cows", who are just doing their job but not engaged.
ISSUE: Employee Engagement = Increased performance = Improved productivity = Greater profitability
Thursday, January 24, 2008
THE 7 DRIVERS OF EMPLOYEE ENGAGEMENT
In these times of skill shortages our No 1 customer needs to now be our people. An organisation that can engage its people will be more productive, perform better and therefore be more profitable. So in this issue of "Engaging People", we focus on the seven key drivers in engaging employees.
1. LEADERSHIP
Great leadership keeps people informed and appreciated. Be the change you want to see.
2. PURPOSE
A business with aligned values and a meaningful purpose makes a real difference. Purpose is increasingly becoming the emotional salary for many employees with 93% of engaged employees feeling that the company has a meaningful purpose.
3. REWARD
Clear links are established between employee performance and company objectives where individuals are fairly rewarded for their contributions to the company's success. Only 12% of employees leave because of money, so for most, money is not the main motivator. Our job is to find out what is.
4. OPPORTUNITY
A culture of constant learning, full of development opportunities is created where people feel positive about their future career prospects. Many people think; what if you train your people and they leave? Well worse still is; what if you don't train them and they stay?
5. RELATIONSHIPS
Good, positive, open and collaborative relationships exist between leaders, co-workers and teams. How well do you really know your people? Hobbies, interests, kids names, real motivations or life philosophy?
6. JOB FULFILMENT
The nature of the day-to-day work consistently energises people. When people love what they do, productivity and performance explode. Do you want to instantly maximise your people's job fulfilment?
7. WORK LIFE BALANCE
An environment exists where people's lives outside work are supported and encouraged. What are your teams top priorities and goals outside work? Want to create a sustainable win-win culture?
1. LEADERSHIP
Great leadership keeps people informed and appreciated. Be the change you want to see.
2. PURPOSE
A business with aligned values and a meaningful purpose makes a real difference. Purpose is increasingly becoming the emotional salary for many employees with 93% of engaged employees feeling that the company has a meaningful purpose.
3. REWARD
Clear links are established between employee performance and company objectives where individuals are fairly rewarded for their contributions to the company's success. Only 12% of employees leave because of money, so for most, money is not the main motivator. Our job is to find out what is.
4. OPPORTUNITY
A culture of constant learning, full of development opportunities is created where people feel positive about their future career prospects. Many people think; what if you train your people and they leave? Well worse still is; what if you don't train them and they stay?
5. RELATIONSHIPS
Good, positive, open and collaborative relationships exist between leaders, co-workers and teams. How well do you really know your people? Hobbies, interests, kids names, real motivations or life philosophy?
6. JOB FULFILMENT
The nature of the day-to-day work consistently energises people. When people love what they do, productivity and performance explode. Do you want to instantly maximise your people's job fulfilment?
7. WORK LIFE BALANCE
An environment exists where people's lives outside work are supported and encouraged. What are your teams top priorities and goals outside work? Want to create a sustainable win-win culture?
Thursday, January 10, 2008
Engagement Economics
Having shaken off its intangible mantle, it is now recognised that employee engagement has measurable business outcomes, which can turn HR into a potential profit centre rather than simply the cost centre of times gone by. Quantifiable success measures include turnover, engagement scores, productivity, customer satisfaction ratings and shareholder returns to name a few.
Companies with an engagement score of 60% or higher have an average five-year shareholder return of more than 20%, while companies with engagement scores of less than 40% usually have a negative return of 10% to shareholders.
For those who don’t have current employee engagement scores, staff turnover is increasingly becoming one of the simplest primary measures. Many corporate analysts suggest turnover can cost your organisation between one and two times an employee’s salary in lost productivity, advertising, recruiting and retraining costs. For an average company of 1000 employees, with 20% turnover, this equates to over $13 million dollars annually in lost productivity.
Companies with an engagement score of 60% or higher have an average five-year shareholder return of more than 20%, while companies with engagement scores of less than 40% usually have a negative return of 10% to shareholders.
For those who don’t have current employee engagement scores, staff turnover is increasingly becoming one of the simplest primary measures. Many corporate analysts suggest turnover can cost your organisation between one and two times an employee’s salary in lost productivity, advertising, recruiting and retraining costs. For an average company of 1000 employees, with 20% turnover, this equates to over $13 million dollars annually in lost productivity.
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