The Gallup organization's research report State of the American Manager: Analytics and Advice for Leaders indicates that having engaged employees in the workplace can add up to 59% more growth in revenue per employee and increase EPS 147% more than their competition.
The revenue growth can be broken into four areas:
- Great leaders account for 27 of the 59 percentage points
- Employees who know their talents account for 6 of the 59 percentage points
- Engaged teams account for 18 of the 59 percentage points
- A focus on strengths of the workforce accounts for the remaining 8 of the 59 percentage points
In the role of an interim CFO, I am often asked to provide insight as to discerning employee engagement. Frequently, the CEO and/or Senior Leadership team knows where the challenges and gaps are, but are unsure of why they exist or how to resolve.
According to the Gallup organization's State of the Global Workplace Report 2013:
- 30% of U.S. employees are engaged in their workplace
- 52% of U.S. employees are not engaged
- 18% of U.S. employees are actively disengaged
These statistics tell an alarming story. Employees who are defined as not engaged sense neither loyalty nor psychological commitment to the organization. And disengaged employees are not only dissatisfied at work, but they are actively working to spread negativity because they survive by being at the root of the problem.
Engaged employees are more productive, use their talents to be successful in the workplace and help develop team relationships. One of the best ways to ensure employees are engaged is to hire the right manager. Deciding who is a manager within your organization permeates throughout and helps to establish the culture.
Talented managers hire well, develop others, make tough decisions, build strong team relationships, hold individuals accountable, are great communicators and know how to inspire their employees. According to authors Marcus Buckingham and Curt Coffman in their book, First Break all the Rules: What the Worlds' Greatest Managers Do Differently, "People don't leave jobs, they leave managers."
A second key strategy for having engaged employees is to select employees who know and can use their natural talents to succeed in the workplace. Employees who are able to maximize their natural talents are happier, more productive employees. Organizations who hire well and nurture employee strengths, create more opportunities for employees to become engaged and remain long-term.
An engaged workforce is the third strategy. As employees are developed, companies can see higher ratings in the areas of customer service, productivity, profitability, employee retention, safety and quality. Also, an engaged workforce will create more emotional connection with your customers.
The fourth key is having a focus on strengths. According to Gallup, a strength is a combination of skills, talents and knowledge. These are naturally occurring and help the employee to succeed. Employees who use their strengths are likely to be six times more engaged at work, based on Gallup research. Once employees know their strengths, allow them to be in the right spots so they can develop and use their strengths.
Some tips to help boost employee engagement include:
- Make sure employees know their strengths. By using the Clifton StrengthsFinder assessment, you can help employees identify their top five strengths.
- Provide your employees with opportunities to develop their strengths. Placing them in teams, giving them plenty of occasions to take on multiple roles will help them explore their strengths.
- Be sure that the message used in recruiting new employees mirrors your company culture. Companies spend lots of money in advertising and marketing to attract a loyal customer base, but fail to focus on their employment brand that could attract top performers.
- Be sure all of management is approachable and open to employee communication. This practice will also benefit and feed team development and success.
- Focus on strengths, not weaknesses. Time spent on improving weaknesses is not as effective nor efficient as time spent on employee strengths. Talent is natural, so allow employees to develop their strengths.
Following these insights can help you boost revenue up to 59% more. An engaged workforce is a good financial decision.
If your company or one of your clients may benefit by our experience and knowledge, contact Russell Slappey at 407.448.1781 or
rslappey@npcfo.com for a complimentary consultation.
