Engaged Employees Drive Member Service

CU360
February 19, 2010 | COMMENTS

Regardless of how the economy is doing, firms need to pay attention to the level of employee engagement. Unfortunately, most companies have an issue with dis engagement—less than one-third of the U.S. workforce is truly involved, according to recent research.

And as the economy slowly recovers from the worst recession in more than 30 years, employee engagement plays a vital role in ensuring the viability of an organization. When every customer interaction counts, engagement means survival.

Companies that invest more in talent management perform better financially, according to a report published by the Human Capital Institute (HCI). Convincing senior management to make engagement a priority, however, is difficult.

“Pay attention to talent during a recession,” says Allen Schweyer, who authored the study and has been measuring the effects of talent management within organizations for many years. “If you don't, you're leaving a big chunk of productivity on the table,”

Schweyer tells the American Society for Training and Development's T&D magazine.

Overall, $350 billion is lost annually in the United States alone on damage done by disengaged workers, according to a 2008 Gallup study.

Schweyer is also concerned about direction during a lengthy economic recovery. “What happens if you lose 20% of your top performers when things get better?” he asks.

Engagement remains a challenge to address within companies because it's difficult to define, measure, and influence. By one definition, engaged employees are “those who are mentally and emotionally invested in their work and in contributing to an employer's success.” Exit interviews and tracking turnover are the two most highly selected measures of this quality—both occurring after an employee has left.

Organizations that demonstrate a commitment to employees from the start stand to benefit from employees with greater focus. “Investments in training and development always rank at the top of what makes them engaged,” says Schweyer.

Engaged workers drive better engagement with customers, notes the HCI report. Costco, for example, with a great benefits package, family leave policy, and decent hourly wage, has built trust among its workers by treating them well in good times and in bad. As a result, their customers have weighed in with their wallets.

Ultimately, the responsibility for engagement rests with senior management. Values, culture, and commitment from leadership play a major role in creating an engagement partnership with employees.

There's only one scenario that will last long-term, according to Schweyer. “Treat your people and your customers well,” he says. “Organizations that do both will succeed.”