Just when companies need their most talented employees to capitalize on the recovering economy, new evidence suggests that many of these top people may not be up for the task. Since 2008, overall employee engagement dropped by 9 percent. But engagement levels for top-performing employees fell by 23 percent according to the 2009/2010 Strategic Rewards Report from Towers Watson.
“The survey numbers were surprising and significant,” says Bill Greene, senior consultant for the Talent, Rewards and Communications practice at Towers Watson. “When engagement declines, employees are less likely to recommend their companies to others. They’re less likely to devote extra energy to their jobs. Employees — especially top performers — become more likely to look for opportunities at other organizations. That means now is the time to take steps to re-engage top talent — before the job market rebounds.”
Smart Business spoke with Greene about the best ways to re-engage top performers in the aftermath of the recession.
What factors contributed to the decline in employee engagement?
The past couple of years have been trying for all employees. Even people who avoided layoffs still experienced significant disruptions — pay and benefit cuts, forced sabbaticals and diminished job opportunities. Well-publicized business failures, ethical scandals and regulatory challenges also had an impact. Employees are increasingly focused on the image of their employers and their success in managing risk — both financial and reputational.
The cumulative effect is that the recession has further frayed the social, emotional and economic fabric that connects employees to a company. Many folks describe this fabric as the employee value proposition, or EVP. It’s the ‘deal’ an employer and employee strike when they work together. Top-performing employees are often most sensitive to shifts in the EVP. They have high expectations — for themselves and for their employer. If the EVP isn’t what it used to be, top performers often feel it first, care about it most and are most likely to try to do something about it.
Do most companies have an EVP?
A recent study we conducted uncovered some really interesting results about EVPs. In this study, only 28 percent of employers responding indicated that their company had a formal employee value proposition in place. However, 74 percent of employees felt their company had an EVP. That’s a striking difference. It suggests many employees impute their own EVP — which may or may not align with what the company wants it to be. In addition, 41 percent of high-performing employees felt that changes companies made during tough times had a negative impact on the EVP. Smart companies recognize these factors and are working to shape and manage their ‘deal’ rather than having it designed by default.
