There are many definitions of employee engagement. In a nutshell, employee engagement is the emotional commitment the employee has to the organization.
Why is employee engagement so critical to success? Higher employee engagement:
- Increases productivity
- Increases profitability (but up to 21%)
- Reduces absenteeism (Gallup study shows up to 41% lower)
- Improves morale
- Improves customer service
According to FastTrack360, 71% of executives agree that employee engagement is critical to their company’s success. So why are 85% of U.S. employees still not engaged in their workplace?
Possibly because employees are not being appropriately rewarded and recognized. According to Hubspot, 69% of employees would work harder if they were better appreciated.
Cy Wakeman of Reality-Based Leadership, maintains that personal accountability drives engagement. When employees are given clear objectives and are held accountable, they become the architects of their own progress. Higher engagement is achieved by aligning company goals with employee reward and recognition program objectives. Wakeman offers these traits of accountability:
- Employees are willing; they buy in to the concept and program
- Resilience. Engaged employees stay even when times are tough
- Ownership through feedback; involve employees in the process
Wakeman reports that executives are spending an average of 2.5 hours a day trying to engage employees – but could be spending that time (or less) more effectively. Conventional wisdom isn’t working. Wakeman offers these tips for reality-based leaders when structuring recognition programs that hold individuals accountable and increase engagement:
- Start with the most willing employees rather than those who resist
- Don’t invite those to the table who don’t want to grow
- Must include shared accountability (Employees can set their own goals before goals are set for them)
- Communicate that staying to sabotage and resist is not an option
- Invite employees to come be part of the change
As many organizations have transitioned to a largely work-from-home workforce, recognition becomes especially important. Communication helps employees to feel connected; recognition programs reinforce their place in the organization, direct their attention to specific objectives and rewards those achievements. Many recognition software programs are available to manage these programs online.
Some tips from those who have changed the way they think about employee recognition and are achieving higher employee engagement:
- Get buy-in. You’ll need a champion to get the CEO/CFO to look at variable pay to fund the program (potentially 1% of payroll).
- Rethink recognition: make sure there is equity in reward values
- Pay the taxes on the rewards you are giving
- Show gratitude throughout the year
- Celebratory success. Decide what actions should be recognized and reward them.
- Give constructive feedback. If peer-to-peer recognition is involved, the Manager should review prior to the reward. “Good job” is not effective; feedback must be specific.
- Start with the concept that people are good; Trust that employees will do the right thing
- Plan, but don’t get bogged down in the process. Get started!
Contact us to talk with an Incentive professional that can guide you through the design of an effective employee reward and recognition program that includes accountability and will improve engagement!