Engaging Employees in Today’s Continuing Economic Downturn – Part 3

By Jack Roose

Parts 1 and 2 of this series highlighted the results of a recent survey conducted jointly by SHRM Hawaii and Watson Wyatt. We pointed out the importance of strengthening employee engagement to maintain and increase productivity and increase the success of the organization. While balancing financial and employee challenges today is critical, doing all one is capable of doing to build employee engagement is critical to longer-term stability, viability and success.

Watson Wyatt’s recently published 2008/2009 WorkUSA Report reported that when employees are highly engaged, their companies enjoy 26 percent higher employee productivity, have experience lower turnover, and are more likely to attract top talent. Their companies have also performed better financially over the past five years.

Highly engaged employees are twice as likely as their less engaged peers to be top performers. They also miss 20 percent fewer days of work, and three-quarters of them exceed or far exceed expectations in their most recent performance review. Highly engaged employees tend to be more supportive of organizational change and respond more positively to that change. Our research indicates that there are five primary areas in which an employer can take specific actions to increase engagement. These are all areas in which an organization, even in challenging economic times, can take action to improve engagement.

  • Capitalize on “engageable moments”. An “engageable moment” is a critical opportunity for maintaining and building engagement. Delivery of most HR programs offer these moments. Discussions with supervisors and communications by senior leadership often provide key engageable moments. Our data show that engagement typically begins high among new employees, but tapers off through careers. While some decline may be inevitable,employers that identify and take action around engageable moments can minimize or potentially even reverse the decline. Some organizations are able to maintain, and increase, engagement and loyalty over time. These organizations accomplish this by consistently engaging employees throughout their tenure.
  • Demonstrate strong leadership and clear direction. When times are difficult, employees want to know about their organization’s specific plans and progress. Decisive action backed by clearly stated rationale can build support for corporate initiatives, particularly when individual performance objectives and rewards are tied to corporate objectives.
  • Manage organizational change with effective communication. Effective communication from senior management directly connects employees to the purpose of the organization. This is particularly important in a challenging economy, when employees are anxious to learn the rationale behind decisions. Requesting, and acting upon, employee feedback and suggestions builds engagement, as does leaders taking an active, visible role in communication.
  • Emphasize customer focus.Employees are aware that job security is strengthened by satisfied customers. Emphasis on customer satisfaction, continuous improvement, and retention of current customers and revenues helps employees focus on what will help the organization succeed, rather than focusing anxieties on job security. Employees want to know how they can help the company maintain customers, revenues, and ultimately, their employment.
  • Institute and communicate a system of equitable rewards. Most employees today understand the financial pressures faced by their employer. It is often how rewards are communicated that makes for a positive “engageable moment”. Although merit increases and incentives may be cut-back, other forms of reward and recognition, delivered effectively, can build engagement. Employers should also consider effective communication of the total rewards package, and its value, as a way of building engagement.

These difficult economic times can be frustrating and take their toll on employees, as well as on leadership. However, they also provide an opportunity. Managers can focus on effective two-way communication at every employee contact opportunity. Senior leaders can reinforce a culture of continuous engagement by clearly communicating direction, objectives, and how employees can contribute; by visibly focusing on the customer; and by rewarding and recognizing performance, through whatever means are available.

Jack Roose has been a Human Capital Consultant with Watson Wyatt for twenty-four years, and has worked in the Honolulu office for the past seventeen years. Jack can be reached at (808-535-0510) or .