Tag Archives: Employee Engagement

HBR Study on Employee Engagement

A recent Harvard Business Review (HBR) survey revealed many companies view employee engagement as a key success factor. But less than half of firms tie engagement metrics to customer satisfaction or financial results. Even more disturbing: just 24 percent believed their workforce is highly engaged.

This research underscores what many business leaders know. Many organizations have work to do move from vision to action in the realm of employee engagement.

Another key finding: organizations that make employee engagement a top priority do a better job at measuring its impacts. Those “high prioritizers” comprised 48 percent of the study total. Thirty-eight percent (38%) of respondents were “moderate prioritizers” with 14 as “low prioritizers.”

What Employee Engagement Leaders Do Differently

As the figure below notes, high prioritizers see a stronger relationship between employee engagement and customer satisfaction compared to moderate or low prioritizers. And high prioritizers take concrete action steps to operationalize that knowledge.

Employee engagement links to customer satisfaction

Source:  “The Impact of Employee Engagement on Performance,” Harvard Business Review

According to the study, brands that prioritize employee engagement showed some similar characteristics. Those include:

  • Precise internal surveys: Engagement leaders go beyond generic approaches to measuring employee satisfaction. They craft internal surveys that include direct questions about employee experiences. Detailed survey analysis is another hallmark of high engagement companies. They sift through the results to identify latent employee dissatisfaction. Then, senior leadership uses survey results to shape business directions.
  • Aligned operational goals: Leaders do not take a “set it and forget it” approach to strategy. Instead, they use strategy as a foundation for operational and individual goals—at every organizational layer. Top leaders establish core goals. Middle managers create specific, tangible objectives for employees to tie their performance to business objectives. Employees receive the resources they need to success and remain accountable for their personal goals.

Engagement leaders also link employee engagement to customer feedback and satisfaction surveys. They also have strong recognition programs, which link employee performance to customer happiness and business results.

Creating an Engagement Culture

As the HBR study reveals, effective internal and external surveys are keys to fostering an engagement culture. Within the company, engagement leaders avoid packaged surveys and tailor data collection to specific needs within their environment. In addition, they look for meaning behind the metrics and identify latent pockets of employee dissatisfaction. They also craft external surveys to collect valid insight on customer perceptions and link results to individual performance.

Firms seeking to excel at employee engagement need to heighten focus in these areas:

  • Surveys: Leaders need to move beyond annual customer and employee surveys. They also need rapid results analysis to make solid business decisions based on feedback. Survey tools that empower both closed-ended and free-form input, along with real-time results analysis, are vital.
  • Employee experience compliance: Survey results can also provide a clear picture of how well employees perform against brand standards. Advanced experience compliance solutions offer real-time insight on each customer interaction with front-employees. These tools allow brands to take immediate action when customer dissatisfaction arises and provide employees resources and knowledge they need to portray the brand.

Engaged employees are far better brand ambassadors—and this has a major impact on customer perceptions. As a recent Forbes article explained, “employees must not only be plausible representatives of your brand’s key attributes, but they must exude the company brand.” Top-to-bottom engagement and authentically listening to external and internal feedback are paths to brand alignment.

The Engagement Imperative

Business leaders now know that having an engaged workforce isn’t a good idea–it’s a strategic imperative. Enterprises must keep a pulse on customer and employee sentiment and have real-time insight into brand expression to thrive in today’s customer-driven world.

***

Engage with Us

Authoritative research has validated that employee engagement affects customer satisfaction and financial performance. Is your brand taking steps to operationalize this truth? We would love to learn from your experience:

  • Do you have an advanced process for collecting, measuring, and acting on employee feedback?
  • How do you tie customer post-interaction survey results to employee performance?
  • What performance metrics do you use to empower your employees to align with brand mandates?

Add a comment or ask a question in the space below. We welcome your input and insights.

employee engagement

Why Brands Need Strong Employee Enagement

The start of every new year unleashes a flood of lists and predictions for the 12 months ahead. And as 2015 gets underway, many brands are well aware that the time to take action to improve customer experiences is now.

While buzz about big data and customer journeys abounds, some thought leaders are calling attention to another much-needed area of focus: employee engagement.

In fact, customer experience industry expert Bruce Temkin, CEO of the Temkin Group has dubbed 2015 “The Year of the Employee.” Temkin believes companies will recognize a need for internal changes as they intensify attention on customer experience. That recognition will heighten focus on employees. In his 2015 trends list, he predicts that companies will launch culture shifts, accelerate customer experience training to employees, and involve HR to reach out to employees.

If customer experience is a priority for your brand, you need to boost employee engagement as well. 2015 can be the year when your brand cultivates stronger internal engagement.

Key Employee Engagement Trends

In the past, some management teams relied on attrition and retention statistics alone to gauge employee satisfaction. However, those metrics may not tell a full story. They can tell you which employees may have been dissatisfied or needed growth opportunities—after the fact.

Ultimately, you need to get a pulse on employee perceptions within your own environment. But here is the surprising big picture: just 30 percent of American workers are engaged at work, according to research from Gallup. That suggests many brands have work ahead to fortify employee engagement.

There’s a strong potential upside to tackling this task. Analysis from the Workplace Research Foundation reveals that successful employee engagement programs can grow profits by $2,400 per employee—annually.

Studies also provide insight on what fosters high engagement:

  • Clear values: Employees who work for organizations with “known and understood” values are 51 percent more likely to be fully engaged at work than those who feel their organization does not have clear values (Modern Survey)
  • Effective leadership: In organizations with leaders are perceived as effective, 72 percent of employees say they are highly engaged (Towers Watson)

Here’s another need-to-know metric: organizations which motivate employees through a shared mission and set of values are nine times more likely to earn high satisfaction ratings from customers, according to research from LRN.

How Can Your Brand Strengthen Employee Engagement?

After understanding large-scale trends, you need to take relevant actions in your own environment. You need to know how your organization sizes up against the norm. Another must-do: you need to pay special attention to your front-line team, since their performance and knowledge has a direct impact on customer perceptions.

Here are three key steps to create an engagement culture:

#1: Capture Employee Sentiment

A survey tool for capturing customer sentiment can also collect data internally. You can secure both structured and open-ended employee feedback for analysis. With this data, you can assess organization-wide trends and drill down to operational levels—by region, branch, or manager. This can quickly highly where any trouble spots are in your environment. You can then prioritize targeted initiatives to foster culture shifts or deliver training wherever needed.

#2: Assess Employee Performance Routinely

In today’s customer-centric world, annual performance evaluation cycles can’t keep pace with continual shifts in customer sentiment. Instead, you need technologies for real-time insight into employee performance. This is especially critical for your front-line teams.

Your survey technology is the best resource for tracking how well employees manage customer interactions. If an customer leaves a low score, that rating indicates that your front-line representative may not have delivered the best possible experience and met your brand mandates. You can set up alerts to let you know immediately when customers register poor survey responses. That insight empowers you to address any employee-related issues on the spot, so that they do not blossom into larger problems.

#3: Provide Ongoing Training and Coaching

Another benefit of real-time survey alerts is that they allow you to deliver training directly to those employees and teams which require it. You can have prepared, automated training available to address typical customer scenarios—and provide them to your employee if a customer survey indicates a need. Alternatively, you can let a manager know that he or she should give focused coaching to and employee.

Moreover, you can identify if a specific team is facing a similar set of customer interaction challenges and provide group training to address those issues. With a focus on continuous learning, you can create a environment that fosters employee growth and helps employees feel more valued.

Meeting the Employee Engagement Mandate

Are improving customer experiences and employee engagement on your 2015 priority list? If so, you need to get an early start on implementing the programs and technologies to develop an engagement culture—which can translate directly into happier customers and stronger financial returns.

You need to have advanced approaches to survey employees, monitor their performance, and provide training to create the necessary culture shifts. Heightened focus on your internal environment can filter out into the world beyond your organization—and have positive effects on customers and your brand reputation.

***

Engage With Us

We welcome you to share your thoughts on this important topic:

  • Do you believe employee engagement is a key area of focus for 2015?
  • How does your brand keep a pulse on employee sentiment?
  • Do you routinely assess the performance of your front-line team against brand experience standards?

Join the conversation by adding a comment below.