“Employee engagement” became the buzzword for many Human Resources managers in the late 1990s. Previously, we talked about “employee satisfaction” to describe how we should gauge the likelihood of retaining good employees. But then the thrust changed from making employees happy to getting them engaged in the business. Gallup helped, with its Q12 Employee Engagement Survey, which the company refined through the 1990s.
The Gallup methodology focused on measuring employee engagement through four levels: (1) whether their basic needs were being met, (2) whether they felt supported by management, (3) whether they felt a sense of belonging or teamwork, and (4) whether they felt they were growing at work. Obviously, all four levels are important to keeping employees motivated in their roles.
Through the recent Great Recession, many businesses spent little effort on retention, or focused that attention only on key employees. Now, with the labor market finally becoming more fluid, employee retention is again receiving management attention. According to recent Deloitte Global Human Capital Trends research, 78% of business leaders rate retention and engagement as urgent or important.
Under traditional theories of employee engagement, the attention managers paid to their employees was deemed critical to employee retention. However, these days, according to Josh Bersin in Forbes, employee retention is dictated more by co-worker relationships than by supervisor relationships. See It’s Time To Rethink The ‘Employee Engagement’ Issue, by Josh Bersin, Forbes, April 10, 2015.
As Bersin says,
“When people leave it is usually a combination of the organization and all its elements that cause turnover. A bad manager can force someone to leave, but usually there are many other factors that create low performance or a departure.”
Some of these other factors are the lack of opportunities for development and leadership and poor relationships with peers.
Now more business commentators are questioning whether engagement is the right strategy for employee retention. Employee engagement should not be an HR activity, but a business strategy. Employee engagement leads to positive interactions with customers which leads to business success.
Bersin says that leaders need to build an organization that is “exciting, fulfilling, meaningful, and fun.” Employees don’t just need to be “engaged,” they need to be committed to the organization’s identity, mission, and culture. They need to be excited to come to work each day.
According to Bersin,
“Companies that understand this topic go beyond engagement surveys: they re-design jobs, they change the work environment, they add new benefits, they continuously develop managers, and they invest in people. They are “mission-driven” and they make sure people are screened for culture and job fit (the wrong person cannot be “engaged” regardless of what HR does).”
Bersin advocates committing to the concept that people are the key to a business’s success. People aren’t our most important resource, they are our business.
What leaders have you known who understood that people are the business? What did they do differently?