How are high-performing companies responding to the engagement challenge?
Companies are taking a variety of steps, but four of them stand out:
Defining (or redefining) critical competencies. Whether the challenge is retaining top performers or hiring for future growth, companies are looking again at which competencies and skills will drive business success. Then they’re retooling the roles, skill requirements, rewards, hiring, training and career development practices to support them.
Identifying pivotal employees and showing that they matter. Top and critical performers (for example, those who drive revenue or are instrumental in product development) want to know they have a future with the company. Job promotions send this message, but they’re not always possible in this economy. So top companies get creative with special assignments, attachment to high-visibility projects, skill-building opportunities, and formal or informal recognition.
Re-evaluating (and optimizing) ‘the deal.’ A number of companies are considering whether the employee value proposition they have still matches their business and talent. So they’re looking at redesigning their EVPs. Using marketing research techniques with employees, along with financial modeling, they’re able to develop reward program alternatives that maximize employee value (especially with pivotal employees) based on the total amount they want to invest for rewards (which may be lower than, higher than or the same as what they are investing now).
Communicating. When it comes to communications, high-performing companies distinguish themselves with courage, innovation and discipline. They have the courage to explain to employees the rationale behind difficult business decisions and actively address the impact. They’re innovative in creating brands and messages and using media (including social media) to show employees how their work affects the business — especially as business conditions change (for worse or for better). They’re disciplined about having a plan, documenting it and measuring results.
Where do managers fit into the equation?
Most employees look to their managers to interpret vision and goals, clarify rules and make meaningful connections between the individual and the enterprise. Unfortunately, managers don’t appear to get a ringing endorsement from employees. In our 2010 Global Workforce Study, managers scored higher than senior leaders on a range of behaviors, including overall effectiveness. But employees felt managers still fell short, especially on the ‘human’ dimension of their role (for example, related to performance management). For many organizations in this economy, frequent manager transitions and shifting business priorities have hindered the focus on manager development. But building basic manager skills related to communication, performance management, and managing change warrant renewed attention and investment because of the strong, positive impact on employee engagement.
Bill Greene is a senior consultant for the Talent, Rewards and Communications practice at Towers Watson. Reach him at (415) 836-1286 or [email protected].
