A colleague who is an executive director in a large FMCG came down to see me for a discussion around my latest book, Purposeful Discussions.
In particular, David focused on an extract from Chapter Two;
When law firms, companies and others lay people oﬀ, the people who lose their jobs are generally the people who are ‘good’. People who are ‘outstanding’ don’t lose their jobs (or hardly ever).
Outstanding people are the ones who bring hard work, constant improvement and greatness to whatever they do. The world needs people who are outstanding and set the highest goals possible for themselves.
Everyone can be outstanding with the right standards. If you say you cannot be outstanding, you are slapping the face of your creator. There is nothing on this earth that does not have a purpose. You are in control over what happens to you and can control it by the standards you set for yourself. Life has meaning when you give it your all.
The secret lies in the standards you set for yourself and the decisions you make. What standards are you going to choose for your life?
David did continue our conversation to say what was my opinion of the current Furlough schemes and redundancies and what happens to a business that loses outstanding and good people.
As you can imagine this was quite a debate which I have written articles for several of the nationals through COVID19, I think we were both pleased that it was shared over a few glasses of wine.
It is true, some employees are more talented than others. That’s a fact of organisational life that few executives and HR managers would dispute.
The more debatable point is how to treat the people who appear to have the highest potential.
Opponents of special treatment argue that all employees are talented in some way and, therefore, all should receive equal opportunities for growth.
Devoting a disproportionate amount of energy and resources to a select few, their thinking goes, might cause you to overlook the potential contributions of the many.
But the disagreement doesn’t stop there. Some executives say that a company’s list of high potentials and the process for creating it should be a closely guarded secret. After all, why dampen motivation among the roughly 95% of employees who aren’t on the list?
Shocking research was released recently by The Gallup Group, indicating that 87% of the workforce is either not engaged (read: they are there physically but not mentally or emotionally), or totally disengaged (they actually undermine the success of an organization.)
This is the highest rate of disengagement ever measured and is in spite of the fact that over 85% of organisations have an employee recognition program (which obviously isn’t working).
Companies spend more than $100 billion every year trying to improve employee engagement in the workplace. Despite their efforts, employee engagement numbers remain under 35 percent. It’s vital for employers to understand the role employee disengagement plays in overall business success.
Let’s have a look at ten shocking facts on employee disengagement.
1. Less than three out of ten employers have an engagement strategy in place
According to a recent study by achiever.com, only 25 percent of employers have an established engagement strategy in place. As with most business processes, engagement won’t just happen overnight. It requires a comprehensive strategy that defines your company goals and develops techniques for fostering engagement throughout the workplace.
2. Only 30 percent of employees feel encouraged to grow with the company
Career growth and development is significant to today’s employees, especially millennials and Gen Z workers. In fact, the opportunity for career advancement is one of the top reasons people seek new job opportunities. Despite this fact, the latest Gallup’s State of the American Workforce shows that only three in ten employees feel that their employers are concerned about their development within the company.
3. 75 percent of employees quit because of their boss – not the company
According to a recent study, employee disengagement starts with the manager, not the company itself. This report revealed that 75 percent of workers state that they left a job because of their supervisor or manager and not necessarily the company. This statistic should be a wake-up call to companies across the globe. Employee engagement strategies must start at the top and work its way down. Only when these strategies attempt to boost engagement at all levels within the company can employers hope to deal with employee disengagement effectively.
4. Companies with higher engagement levels obtain 21 percent higher profits
Study after study shows a clear link between employee engagement and company profits. In fact, according to a study released by Forbes, companies with higher levels of employee engagement see a 21 percent increase in profits or more. This statistic alone should be enough to grab any business leader’s attention.
5. Only 11 percent of workers receive weekly recognition
There is a direct correlation between disengagement in the workplace and lack of recognition. Like everyone else, your employees want recognition for their hard work. Without consistent recognition, employee disengagement can skyrocket within your workplace. This level of disengagement can tempt even your best employees to leave. In fact, according to our recent study, nearly one in five employees stated their main reason for considering a new job was because they’re not being recognized.
6. Employee disengagement costs companies more than $450 billion a year
According to a Harvard Business Review report, employee disengagement costs employers anywhere from $450 billion to $550 billion every year. This amounts to an incredible amount of waste within the business sector. Many employers overlook most of these expenses because they fail to see the link between higher costs and low levels of employee engagement.
7. 21 percent of employees say that their employer never asks for feedback
Imagine trying to voice your opinion, and no one is listening. That is how many employees feel, and studies show that they might be right. In our recent report on disengagement in the workplace, more than 20 percent of respondents said that their employer was terrible at requesting feedback. In some cases, their employers never asked for feedback at all.
8. Only six out of 10 employees know what their job expectations are
It can be nearly impossible for employees to remain engaged in the workplace without having a clear understanding of their specific job expectations, as well as the company’s goals and missions. This fact may seem like an obvious point, but it might be just so obvious that many employers are overlooking it. According to Gallup’s report, only 60 percent of employees claim to know what their expectations are at work.
9. Higher employee engagement leads to fewer safety issues
Most employers don’t relate employee engagement with workplace safety, but maybe they should. A study of the healthcare industry showed that providers with high engagement levels have 70 percent lower safety incidents than companies with lower levels of employee engagement. This improvement in workplace safety can be attributed to enhanced employee feedback processes, comprehensive employee recognition programs, and more precise job expectations – all of which improve engagement rates.
10. Lack of inclusiveness can cause disengagement
There is good reason why 69 percent of executives surveyed by Deloitte cited diversity and inclusion as a top priority. Deloitte’s stats show that 39 percent of employees would leave their current company for one that had a more inclusive culture, and over half (53 percent) of millennials would do so.
A diverse workplace environment brings fresh perspective and it’s important to embrace diversity and inclusion in the workplace. Understand what truly engages and motivates your employees by collecting honest feedback.
We’re all familiar with the damage that can be caused by personality clashes in the workplace, but how can leaders ensure a harmonious balance between their organisation and its employees?
“Organisational culture is the sum of values and rituals which serve as ‘glue’ to integrate members of the organisation”
Building a culture of engagement, in which employees are seen (and see themselves) as stakeholders, will promote organisational harmony as well as creating additional financial benefits. A Gallup study found that companies with strong employee engagement saw higher productivity and were 22% more profitable than those with poor employee engagement. Unsurprisingly, employee retention was also significantly higher in these businesses.
“Trust is one important key to building a culture of high performance, whereby speed will go up and costs will go down.”
This statement by Stephen M. R. Covey (son of Dr Stephen R. Covey) in his book, ‘The Speed of Trust’, captures the essence of why trust (or lack thereof) is at the heart of every organisation’s culture. I refer to trust as the glue and the lubricant of culture. Trust is glue because it binds people together and converts routine work interactions into effective teamwork. Trust is also a lubricant because when it is present, as Covey suggests, things move faster with less expense. Let’s test this concept of the glue and the lubricant functions of trust.
Imagine for just a moment what your work culture would be like if there was absolutely no trust or mistrust between you and the people in your workgroup:
What if you couldn’t count on them to come to work on time or stay at their work when they were needed?
What if you feared anything you said might be reported to the media or to your competitors?
What would the day be like if you couldn’t trust anyone to do even the simplest task without making a mistake?
And what if the people in your group had absolutely no trust in you?
Stephen Covey taught a very simple but powerful metaphor of trust: the emotional bank account. This metaphor works on the same principle as a financial bank account – one can make deposits that build trust with others, and one can take withdrawals that diminish trust. You might consider the current state of your emotional bank account with important relationships.
It’s not all bad news. Boards are beginning to recognise and discuss the importance of building and maintaining a strong corporate culture, as recommended by the FRC’s report on culture and the role of boards.
But while the board itself may have a strong ethical culture, the challenge is to ensure that this “tone at the top”. and most people follow their lead. They have a duty to project and uphold the company ethos, vision and behaviours.
As the famous Tony Robbins once said:
‘Any time you sincerely want to make a change, the first thing you must do is to raise your standards. Stay committed to your decisions, but stay flexible in your approach.’