22 minute read
EMPLOYEE ENGAGEMENT
CULTURAL DEBITS AND CREDITS IN THE WORKSPACE employee engagement and turnover
By Vicki May - HR Director
If people were just numbers, then understanding Employee engagement and Employee turnover would be a lot like understanding the debits and credits on a bank statement or the left and right columns of a balance sheet. Organizational-thinkers and business leaders alike have become ‘dollars and sense’ aware of the value in understanding and in paying attention to the cultural debits and credits of employee engagement and employee turnover. A definition search of Employee engagement is: the
degree to which employees invest their cognitive, emotional, and behavioral energies toward positive organizational outcomes. Employee engagement is a function of the relationship between an organization and its employees.
What Does Employee Engagement Look Like?
An engaged employee believes that they are a part of something bigger than themselves as they understand and align with the company’s mission. They may provide a service or a product that improves someone else’s life, happiness or well being which allows them to derive a sense of satisfaction in their job. Job satisfaction may also include their salary, or positive interactions with customers or their with their coworkers. Engaged employees feel appreciated and recognized appropriately. Engaged employees are trained to perform the functions and assignments to meet the expectations of their supervisors. A work environment where an employee feels safe to share a thought or idea, to ask a question or to ask for help, is a work environment that creates engagement. An engaged employee requires little prodding and prepping, and they take pride in performing their roles devoid of micromanagement. An engaged employee does not possess a minimalist mentality, and they regularly exceed expectations and reset the bar for productivity and performance. They have intrinsic worth and they believe in the value they bring to their position. The engaged employee also recognizes the value of his/her coworkers and they compliment others easily and often. An engaged employee shares their knowledge in a way that grows people or creates efficiencies and not shortcuts. The engaged employee believes that the company is concerned about them as a whole person and that their well being and work-life balance is important to their employee’s happiness and success professionally and personally. Employers trying to figure out how to keep their workforce happy and productive, while at the same time brainstorming ways to contain the cost of employee turnover, is not new table-talk in company Board-rooms. According to August 2022 Gallup polling statistics, "job unhappiness and disengagement is at a staggering all-time high…" On a more positive and hopeful note for companies who improve employee engagement, Gallup suggests that "business units with engaged workers have 23% higher profit compared with business units with miserable workers." A happy workforce is a productive workforce! Employee Engagement strategies are not necessarily the costly ‘shiny objects!’ Leaders at all layers of the business can contribute to Employee Engagement and the list has no limits. Here are a few of my favorites. 1. Actively Listen-Leaders can be consumed with getting results, and less interested in the employee’s frustration with the process to get the results. Listening to your employee’s shows respect for what they’re telling you. If employees don’t feel that they are listened to, then you lose respect and employee disengagement is an outcome.
2. Have conversations that don’t have winners and losers-
Leaders who play the supervisor card of being right and the final word most of the time can forget about future conversations that are inclusive and engaging. The Leader can just be right all the time and edict his or her decisions as the gospel and there will be no need for conversations anymore. 3. Recognize, Recognize, Recognize-Leaders should recognize employee’s contributions and efforts that are over the top. Employees earn bonuses and commissions, and benefits are theirs as employees. Acknowledge and value their contributions and you will foster and engage loyalty. And do it often! 4. People don’t care how much you say you care-You must show them you care. Leaders say they care about their employees well-being, but do you let Bobbie-Sue know that you know she hasn’t had a day off in six months, and you want to talk with her about her taking some time for herself. And how about Jim-Bo? That guy is the last to go to lunch and only goes after his team has had lunch, and a lot of days he misses the opportunity to go to lunch at all. Quietly fix that! Also, make sure you are having those follow-up conversations with employees who are having some personal challenges. 5. Encourage great peer value-We work 81,396 hours–only sleep more. Employees don’t need to be best friends, but camaraderie among employees creates a sense of team. Studies also show that employees value what their peers think of them more than what their managers think of them. 6. Model Empathy-Caring and kindness are contagious. Enough said. 7. Be approachable-Be out and about, and be visible among employees in your stewardship. If you never ap-
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proach them, why would they feel comfortable approaching you? 8. Do what you said you were going to do-Engages trust 9. Sweep the floors whether they need it or not-Leaders aren’t kings and queens; they are servants. By focusing on what Employee Engagement looks like and reminding ourselves of some basic, everyday ways to foster healthy employee engagement, we can better avoid the cultural downside of Employee Turnover.
Employee Turnover is a Huge Cost and Drain on Company Culture
A recent Workforce panel study concluded that 51% of employees are actively looking for a new job at any time. Workforce analysts estimate that the average hiring process is about 36 days, and the employer’s cost to rehire for the position that just terminated is roughly 20% of that position's salary. These are just a few objective costs that can be measured. Turnover also creates outcomes which are much tougher to quantify Every company has Functional Voluntary Turnover. In other words, employees will leave due to circumstances that are out of their control—a spouse‘s job, an employee relocating to be close to a family member, or they may leave for ‘that opportunity of a lifetime’. Functional Turnovers may also be struggling performers, employees who realize after coaching and Personal Improvement Plans have failed, that they are not going to be able to perform the job, and they decide to leave the organization. This is all functional, acceptable and even a predictable turnover.
Dysfunctional (Voluntary) Turnover on the other hand, is turnover that occurs due to a management decision to terminate an employee. Dysfunctional Turnover also describes that excellent, high-performing employee who realizes that their abilities would be valued more by the competitor up the road, and that employee leaves to earn a higher paycheck. High Dysfunctional Turnover can be crippling and costly to an organization. Dysfunctional Turnover can be voluntary or involuntary. When companies see high dysfunctional turnover, whether it is voluntary or involuntary–leaders and Executive Ownership needs to be alerted. If employees are (voluntarily) leaving unexpectedly, or if there is an increase in terminations, these are red flags. Multiple involuntary terminations over even a year’s time will have employees asking about company values and it might sound something like this: ‘Is this who we are—-and am I next? Should I start looking around? Jim-bob can earn more money there than we can earn here–they must take better care of their employees.’ Regardless of the ‘why’ employees terminate, the end result in the business for the staying-employees is very much the same. • The Loss of knowledge and day-to-day disruption-The efficiency of the remaining team has to be reset. (If you lose two employees within the same department over a years time–you lose their total years of expertise in subject matter and processes. In this example, if both employees have 10- years of experience and combined years of company intelligence, then you have lost 20 years of experience. How easy is that to replace, and will it cost you more to replace?)Over a year’s time, if you add-up all the combined years of experience and company intelligence of those employees who have left the organization, you would have hundreds of years of experience and job knowledge that walked out • Company Reputation-They’re going to tell people and competitors why they left from their angle. • Organizational morale-The remaining employees are usually pretty sharp when ‘that’ guy leaves. But when the good-one leaves because ‘they’re just looking for something different’---the other ‘good ones’ do a double take. Not only this, but when the perceived ‘good ones’ start leaving, then who’s left? Employees assume that ‘with so and so gone, that means more work for us.’ • Recruitment and Hiring is compromised-Inexperienced supervisors want to hire quickly, instead of hiring right. There is a willingness to hire for ‘a job’ and not a career. Perspiration vs Desperation.
Cultural Debits and Credits
Turnover in any form is a huge expense to a company’s bottom line, and it is an expense that is often overlooked and written-off as ‘a cost of doing business’. On the other hand, companies that focus on Employee Engagement, are building cultural credits that minimize turnover. At the end of the day, Employees and Employers really want to be a part of the same work culture. Both want more cultural credits than cultural debits. We want the success of each employee to be the success story of the company. It’s about improving the workspace and culture so that employees feel more connected and dedicated to a company’s goals and values, and it's about employers being able to count on each employee to engage with as much of his or her whole person as possible toward a common goal that’s called work, but looks more like service to each other and to the customers who depend on us. Finally, we have all heard it said in different ways that ‘a person doesn’t leave a company, they leave a manager’. I suggest this sentiment in just a little different way: ‘A person exits a company, but people quit people. Thank you for stopping by my article and very brief take-aways on the Cultural Debits and Credits of Employee Engagement and Employee Turnover. These topics are each huge conversations, and I hope I have us all thinking about ways to grow and improve. I’d love to hear your thoughts and insights as well. Please email me at vmay@gpkubota. com
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