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effectively measure engagement

Employee Engagement: How to Measure What Matters

By: Josh Danson
Director of Content Marketing, Achievers

Recently, there have been some eye-opening reports about the state of employee engagement, both here in the U.S. and globally. Aon Hewitt, in their 2017 Trends in Global Employee Engagement Study, found that engagement levels have dropped for the first time in five years and Gallup reported in its State of the American Workplace report that a full 70% of U.S. workers are not engaged at work.

But before we all get too breathless about these admittedly disconcerting engagement numbers, it’s important to remember that employee engagement is not an end in and of itself. Engagement numbers do provide a window into the general well-being of your workforce, but more important than the raw numbers is how engagement ties back to desired business outcomes.

Say, Stay, Strive

Aon Hewitt, in an influential 2015 paper advanced the “Stay, Stay, Strive” framework for the variety of desired Employee Engagement outcomes. According to that model, engagement drives a variety of desirable outcomes, including increased employee advocacy and a more desirable employer brand, (“Say”), improved retention and tenure (“Stay”), and better overall performance (“Strive”):

“One manager may have an employee who is incredibly hardworking but needs to say more positive things about the company due to his/her network impact on peers. Another manager may have employees who generally seem positive about the company and committed to staying, but need to ramp up individual effort toward the new performance behaviors required by an organizational transformation.”

So it really isn’t just about the score, it’s about understanding what you need to measure in order to achieve the desired business outcome.

Are You Measuring What Matters?

Do you know how well your engagement programs are working? How about the connection between programs that engage employees, such as employee recognition and rewards, and your desired business results?

Employee engagement has become a cornerstone and calling-card of today’s most successful businesses. But instituting a haphazard or incomplete engagement initiative can often lead to more problems than solutions, as employees dutifully fill out their surveys but nothing ever seems to come of it.

Successful employee engagement programs should tie back to specific organizational goals, help to align employee values with company values, and ultimately — drive improvements in overall performance. Studies have shown that highly engaged employees are:

  • 21% more profitable;
  • 17% more productive, and;
  • Enjoy 20% higher sales than industry peers with average engagement.

Whether your measure for success is better employee retention, improved alignment with company goals, or increased revenue, your journey begins in first knowing what to measure and how to do it well.

An engaged workforce is almost always a profitable workforce. According to Gallup, companies with a well-defined culture of recognition and commitment to employee engagement have been shown to outperform their peers by 147 percent in earnings per share. Learning how to measure engagement – and what to measure – are the first steps towards realizing the engagement advantage. By measuring engagement in a number of ways and against a number of different metrics, companies can then learn what actions they need to take to improve in this important area of differentiation.

What you’ll learn

Having a better understanding of what makes your organization tick can help you find a competitive edge that you didn’t know existed. In our new eBook, “Employee Engagement: Four Places to Start Measuring What Matters,” we provide four ways to effectively measure the results of your engagement programs to ensure success in areas critical to your business – such as employee retention, performance against goals, and alignment with company values. Download the eBook now and begin learning how to measure what matters!

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About Josh Danson

Josh Danson

Josh is Director of Content Marketing at Achievers. An accomplished marketing and communications professional with more than 20 years’ experience in the fields of marketing and PR, Josh worked as a press secretary on Capitol Hill before moving West, and from politics into PR – and on into content marketing. Josh graduated with High Honors in History from Kenyon College and lives in San Francisco with his wife and 9 year-old daughter. In addition to work and family, he is passionate about music, politics and fly fishing (not necessarily in that order).

 

 

 

How to Identify and Retain Top Performers with Rewards and Recognition

Employee retention is a key goal for every company, but it’s important to drill down into this metric and make sure you’re doing a good job of identifying and keeping your top performers. These employees deliver 400 percent more productivity than the average worker, according to statistics published in Harvard Business Review (HBR). The researchers state, “Our workforce strategy goal should be to double down on retention tactics for high performers,” and further explain that, in many cases, managers aren’t meeting the needs of their top talent. The first step to nurturing your best workers is to make sure you know who they are; and a simple way to discover top performers is through rewards and recognition programs.

Look for active recognizers

The right rewards and recognition program can help determine top performers – but you may be surprised by which statistics you should look at. As to be expected, the hardest working and most talented people are likely to receive the highest amount of recognition from their supervisors. They are also likely to be recognized by their peers, since the ability to work well within a team is another important component of productivity. However, when you’re seeking out the truly top performers in your workforce, it’s also important to identify those who are most often recognizing others.

According to a recent Achievers study, employees who were promoted turned out to have a track record of actively recognizing their peers. In fact, before being promoted, these high performers sent an average of 3.8 times more peer recognition than the average employee. In this way, employee rewards and recognition programs provide two separate metrics for  identifying top talent: those who receive the most recognition, as well as those who give the most acknowledgments to others.

Tie recognitions to company values

Your organization probably took significant time and effort to craft a mission and values statement.  This statement is more than mere words residing on a wall, a website, or welcome pamphlet; it can serve as a dynamic tool for shaping your employee recognition program. By tying recognitions to your company’s core values, you can see which performers are embodying those values most authentically. This approach is sometimes termed “Management by Objectives,” and it feeds employee motivation by helping every member of the organization feel that their contribution is truly meaningful.

High performers have unique needs

The workplace factors that keep your super-skilled employees motivated are somewhat different from commonplace worker needs, and it’s necessary to be aware of these differences. While competitive salaries are important, HBR research points out that using regular compensation as a method of delivering employee rewards can potentially backfire and cause resentment among coworkers. On the other hand, high performers care significantly more than average about having their efforts noticed, recognized and rewarded. These rewards can be in the form of social or financial recognition, but in either case, your top talent is especially eager to receive praise, financial incentives and frequent feedback. This is another reason that if you’re in the habit of only providing annual or semi-annual evaluation sessions, the employee engagement levels of your top performers is likely to suffer.

Why you need to focus on high achievers

While highly skilled employees are slightly more satisfied with their jobs than the average worker, one in five say they’re likely to leave their current position within the next six months. Furthermore, if and when your top employees do decide to move on, their skills will lead them to easily find new opportunities. Given the high levels of productivity and the contributions these extra-competent workers make to the workplace environment, losing even one of them can be a blow to your company.

Help your top performers fulfill their potential

Employee retention is only one of many reasons that HR professionals and managers should invest in the effort to nurture high achievers. Equally important is  assisting in their career growth and providing them with development opportunities to help them reach their full potential. A major component of nurturing employee success is to  ensure tasks remain challenging and varied. High achievers “live for the challenge,” and seek to overcome obstacles and solve problems as a source of personal accomplishment. So make sure to provide them opportunities to stretch themselves through varied and challenging assignments.

Employee recognition best practices dictate that recognitions will be most meaningful to these talented workers if they reflect on an achievement that was truly praise-worthy. High achievers are tireless, curious, full of passion, and internal drive. If they’re recognized they want it to be for something substantial and worthwhile. In other words, don’t praise them for minutiae such as arriving on-time or keeping a clean work area. Instead, provide detailed and specific feedback that focuses on the positive impact they are making through their diligence and pursuit of excellence.

The right HR technology can be your ally

Identifying top performers can help your organization discover who your most engaged employees are (and vice versa), allowing you to effectively leverage their skills and enthusiasm as a positive force in the workplace. HR tech is steadily evolving, and data gleaned from a cutting edge rewards and recognition platform can now provide you with valuable insights to help you identify and retain your top performing employees.

To learn more about how employee recognition can help you identify and retain your top talent, as well as having a positive impact on your entire workforce, download our eBook: The Ultimate Guide to Employee Recognition.

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