Five Engaging Options Strategies

Stakeholder Engagement approaches Engagement approach Description Partnership Shared accountability and responsibility. Two-way engagement within limits of responsibility. Consultation Involved, but not responsible and not necessarily able to influence outside of consultation boundaries. Push communications One-way engagement.

Organisation may broadcast information to all stakeholders or target particular stakeholder groups using various channels e. Pull communications One-way engagement. Information is made available, and stakeholders choose whether to engage with it e. This is anything but a simple undertaking. Nearly every job has been changed and often transformed by technology, and we constantly look for ways to do more with less. Well-run companies constantly look at the work they do, trying to find ways to outsource more to technology and produce more output with less expensive human input.

Despite these pressures to improve productivity, research shows that when we enrich jobs, giving people more autonomy, decision-making power, time, and support, the company makes more money. Zeynep Ton, a Massachusetts Institute of Technology professor, in her book The Good Jobs Strategy shows that retailers like Whole Foods, Costco, UPS, and Mercadona deliver higher profitability per employee by giving their employees above-average wages and greater control over their jobs. At Mercadona and Costco, for example, stores are staffed by people cross-trained to handle many positions: They manage cash registers, stock shelves, rearrange the store, develop promotions, and manage others.

The result is both a set of highly empowered teams that have the training and freedom to be both autonomous and productive as well as above-average retention and engagement rates. As we design jobs to be meaningful, we must also carefully select the right person for each job.

Fewer than 40 percent of all hiring teams use any form of formal prehire assessment: Most managers look for relevant experience, college credentials, or GPA. When we hire people who fit, they perform well, and they love their work. The concept of culture has also become an important part of job fit. Zappos, a company that prides itself on culture as strategy, uses its 10 core values to assess people for cultural fit in the early stages of the application process.

This type of assessment has helped Zappos maintain a high level of engagement, low turnover, and its place among one of the best customer-service providers in online retail. Research also shows that meaningful work takes place in small teams. Finally, engaged people need time to think, create, and rest.

A well-known retailer, for example, sends workers home when the store is slow. Then, when things get busy, they return to the store.

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This company is one of the most profitable in its industry, in part, because slack time gives its workforce the freedom to take care of their home lives and put more effort into their work. It may seem counterproductive to let people take time off during the week, but in fact the opposite is true.

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Overworked people tend to burn out, produce lower-quality output, provide lower levels of customer service, become depressed, and sometimes just flail around in their exhaustion. The second element of an irresistible organization is the one business and HR leaders think about the most: In many ways, management is the most important capability we have.

CEOs can create strategies, investors can optimize capital, and marketers can create demand, but when it comes to building products and offerings, serving clients, and developing internal processes, middle managers make things happen. Investment in fundamental management practices has a tremendous impact on engagement, performance, and retention.

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In our review of engagement issues, the first area we found is the importance of simple, clear goals. When people have clearly defined goals that are written down and shared freely, everyone feels more comfortable, and more work gets done. Goals create alignment, clarity, and job satisfaction—and they have to be revisited and discussed regularly. Goal setting is a challenge. Only 51 percent of companies even attempt to develop aligned goals, and, among these, only 6 percent regularly revisit them.

We found that companies that revisit goals quarterly have threefold greater improvement in performance and retention than those that revisit goals yearly. High-performing managers create simple goals, make sure they are clear and transparent, and revisit them regularly. Google, for example, uses an agile goal-setting process called OKR objectives and key results , which was originally developed at Intel.

At Google, this creates alignment because employees can see who is dependent on their work. The second management practice that drives engagement is coaching. While directed management is important, it plays a smaller role than one might think. It is the coaching and development role of management that is the most valuable.

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What makes a great coach? Organizations with high levels of employee engagement focus on developing great leaders. They invest heavily in management development and ensure that new leaders are given ample support. High-impact leadership organizations spend 1. The fourth issue is the need to simplify or reengineer the annual performance appraisal.

This process, which has been institutionalized in more than 75 percent of all the companies we visit, is among the most damaging and disheartening process employees face each year. Only 8 percent of surveyed companies think the process is worth the time they put into it, and the focus on rating and ranking takes the focus away from the coaching and development that people often desperately need.

In many companies, the process does not involve enough continuous feedback, places too much weight on the actual rating, and often does not encourage hyperperformers to perform at an even higher level. This culture of continuous development is a management culture widely used in high-engagement companies.

The third major element of an irresistible organization is the need to build a flexible, humane, and inclusive workplace.

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Most employees today have complicated lives. Studies show that 68 percent of women would rather have more free time than make more money, and while 40 percent of professional men work more than 50 hours per week, 80 percent would like to work fewer hours. Free food, yoga classes, happy hours, commute buses with Internet access, and even free laundry service have now become commonplace in high-pressure companies across a wide range of industries.

In addition to such benefits and employee wellness programs, research also shows that open, flexible workplaces have a major impact on engagement. They bring executives out into the open Mayor Bloomberg created an open work space in New York City, which was credited with bringing teams together to rapidly respond to city crises ; they enable people to meet more easily The new circular Apple campus is designed to encourage groups to meet others ; and they give people highly flexible places to work, depending on the way they feel on a given day Zappos lets employees work from local restaurants, where the company pays for Wi-Fi.

Research shows that introverts still want a quiet office, but modern workspaces give people the flexibility to be together or alone, depending on the task at hand. A second key engagement driver is the need for continuous and ongoing recognition. The key to success here is to create a social environment where recognition can flow from peer to peer, freeing managers from being the judge and jury of employee recognition.

Companies that build this culture see tremendous impact. When JetBlue implemented a peer-to-peer recognition system focused on company values, employee satisfaction surged by 88 percent.

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Researchers have proven that when you thank someone, it releases oxytocin, a hormone that makes people more relaxed, collaborative, and happy. Finally, highly engaged workplaces are also inclusive and diverse: People feel comfortable being themselves. While 71 percent of organizations try to foster diversity and inclusion, only 11 percent have such an environment today. Diversity and inclusion is not an HR strategy; it is a business strategy.

Not only do diverse workplaces attract people from a wider sample, research also shows that teams that operate in an inclusive culture outperform their peers by a staggering 80 percent. How do organizations become more inclusive? Inclusion usually comes from the top: Leaders must overcome their unconscious biases and make every effort to listen, create open forums for discussion, and promote people with varied backgrounds gender, nationality, race, age who embrace listening and inclusive values. How do organizations become more inclusive? Inclusion usually comes from the top: Leaders must overcome their unconscious biases and make every effort to listen, create open forums for discussion, and promote people with varied backgrounds gender, nationality, race, age who embrace listening and inclusive values.

Our research shows that inclusion, unlike diversity, is a cultural issue—one that requires support from top-level leaders as well as all levels of management. We often go to work with selfish interests. Most engagement research shows that learning opportunities, professional development, and career progression are among the top drivers of employee satisfaction.

Employees under the age of 25 rate professional development as their number one driver of engagement, and this is the number two priority for workers up to age Building opportunities for growth is a complex and systemic challenge. First, there must be developmental opportunities, both formal and informal, that let people learn on the job, take developmental assignments, and find support when they need help.

This means designing onboarding and transition management programs, developing a culture of support and learning, and giving people time to learn. Second, a company must support and honor what we call facilitated talent mobility. Most people will not be promoted every year or two although high-potential Millennials often expect it , but they want to feel that they are growing and can take on new assignments in their chosen area. Managers and the company as a whole need to support and facilitate internal mobility, giving people the freedom to try something new and move from a role where they are highly productive to one where they may be a trainee again.

Finally, organizations must look at their management and leadership behaviors to make sure that learning, development, and mobility are rewarded. Organizations with a strong learning culture are 92 percent more likely to develop novel products and processes, 52 percent more productive, 56 percent more likely to be the first to market with their products and services, and 17 percent more profitable than their peers.

One of the best examples of a learning culture is what happens in a retail environment. Most customers have been in stores where employees are trained and empowered. As soon as something is missing or perhaps hard to find, the employee figures out where it is, finds the right size, and helps customers complete a purchase. Unempowered employees who are not cross-trained, however, may just tell customers to ask someone else.

A major home improvement retailer studied store-by-store performance and found that teams that cross-train their sales leaders regularly are generating 10—15 percent higher revenue and as much as 20 percent higher engagement scores. Remember, an irresistible organization is one that employees would never want to leave.

What better way to create such a place than to give people lots of opportunities to grow and advance? The final and perhaps most important element in the irresistible organization is leadership. Our research suggests that four leadership practices most directly impact employee engagement. The first is to develop and communicate a strong sense of purpose.

When organizations define their success through the eyes of their customers, stakeholders, or society, people come alive. How do you create purpose, mission, and soul? Pharmaceutical companies are redefining themselves as wellness companies; retailers are redefining themselves as places for healthy food; tech companies define themselves as businesses to help people obtain information; and the list goes on.

When you offer people a mission and purpose greater than financial return, you attract passionate individuals who want to contribute. And that brings a level of commitment and engagement no compensation package can create. During the heat of the space race, a group of reporters visited NASA a mission-driven organization and saw a janitor working toward them with a broom in hand. The second important element in leadership today is transparency.

Thanks to social networks and the Internet, we are all accustomed to rapid, open, transparent communications. If your company is having a bad quarter, has committed fraud, has caused an accident, or was sued or possibly penalized for a compliance violation, tell your people as promptly as possible. Likewise, when you have a good quarter, someone achieves a particularly notable success, or a customer tells you something wonderful, share this as well.

If employees are concerned about their compensation, they are encouraged to make an appointment with HR to discuss their issues. Transparency is particularly difficult for traditional leaders. Today this typically fails, and people immediately see the deception. New research shows that among Millennials, transparency from leadership rates as among the most important drivers of company loyalty. Third, leaders must continuously invest in people. High-engagement companies have executives who spend money in learning, regularly meet with teams and provide feedback, and genuinely care about each individual.

Finally, our research suggests that senior leaders must continuously focus on inspiration. Through their words, communications, and actions, it is the top executives who ultimately engage everyone in the organization. By talking about the future, sharing the vision, and translating the business strategy into meaningful, personal concepts, leadership can be one of the most important drivers of engagement.

As we illustrate on the bottom of the model, highly engaged companies work very hard to make work simple. They remove administrative overhead compliance processes, formal check-off processes, multistep processes in favor of trust, autonomy, and a focus on cooperation. Simplicity, or the removal of formal bureaucratic overhead, can have a dramatic impact on work satisfaction. A series of work-productivity studies by the University of Rotterdam shows that workers who operate in highly complex environments tend to have increased levels of cardiovascular and other illnesses, unless they are given extraordinary amounts of autonomy and local support.

Without increased amounts of empowerment and local control, complexity can lead to high levels of error and stress. Southwest Airlines, one of the top 20 rated employers in , has honed simplicity and empowerment in its business model. Southwest uses a single airplane model Boeing and common boarding and reservations processes for every flight. The company has celebrated more than 40 years of profitability and continues to score among the highest in customer satisfaction year after year.

How do organizations implement these 20 practices in an integrated and holistic way? Our advice falls into two categories. First, HR and leadership must develop a complete understanding and mindset of these factors and how they all are interrelated. Almost every management practice impacts employee engagement, so while we focus on performance, growth, and innovation, we must simultaneously focus on the impact each strategy has on individual people. An annual employee survey is far too slow and limiting. Today pulse survey tools, sentiment monitoring tools, and employee sensing tools give employees a variety of ways to express their feelings and provide direct feedback to managers and peers.

While 90 percent of executives understand the importance of employee engagement, fewer than 50 percent understand how to address this issue. Even though 79 percent of companies today find it daunting and difficult, they can plot their path to the future and design organizations that will thrive with passion, performance, and engagement by focusing on the five elements of irresistible organizations.

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