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Performance Management Perspectives

Published November 2007

The Engagement Gap: What It Means for Your Bottom Line

 

  Ben Warden

Many employees feel disengaged at work. This much we know from the popularity of Web sites such as Bored.com and TV shows like "The Office." A new study by Towers Perrin brings a fresh perspective to a familiar problem, by asserting those same disengaged employees feel their organization and its senior leaders aren't interested in changing their level of engagement. The study concludes that leadership and institutional improvements can drastically improve employees' level of engagement, and disengaged employees shouldn't just be replaced like a broken coffeemaker.

Towers Perrin, a global professional services firm that has been compiling information on employee attitudes via its global workforce study for the past 10 years, emphasizes in its latest study the strong connection between an employee's "engagement gap" and the company's bottom line.

Julie Gebauer, managing director and leader of Towers Perrin's workforce effectiveness consulting practice, said finding out whether engagement is an overall workable issue or an issue that should be dealt with on a case-by-case basis was a priority.

"We threw a really broad net to understand what drove engagement," Gebauer said. "If we found it was all about the individual, then we would say it's all personality-driven, and organizations can say 'Well, I've done what I can. I just need to find more than my fair share of engaged people.' But we didn't find that. We found very encouraging information that in spite of this engagement gap existing, organizations can do some things to close it."

Gebauer found what organizations can do to boost engagement is closely linked to things that will improve recruitment and retention as well. From simple things such as linking senior leadership's interest in their employee's well-being to more complex initiatives that will increase an organization's commitment to social responsibility, all can play a role in significantly raising engagement. For instance, Gebauer said employees want senior leaders to present them with a clear career path through the company and beyond.

"Opportunities for development are not just about promotion. Career development, as we understand it, is about learning new skills, developing one's skills and broadening one's mind," she said. "Having a clear picture of what's in it for them is not just about rewards, it's about what opportunities they'll have to develop their skills and contribute to the mission and vision of the organization."

Fostering an environment that encourages communication and friendship is a big first step to having an engaged workforce, according to Gebauer. Keeping in mind certain employee personalities while hiring is something small that could save a larger conflict from erupting down the road. Having employees who are pleasant and open with one another can create valuable mentor/protégé relationships, which can help to shed light on company principles and put a face on possible advancements within the company. More importantly, it gives employees another reason to come to work every day.