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eBook
AnIntrotoTheEngagementEdge:
Howyourorganizationcanconquertheglobal
engagementcrisis—andrealizethebiggest
competitiveadvantageoutthere.
Anedgeunlikeanyother.
Whydosomebusinesses—eventhebiggest,mostsuccessfulenterprises—fail?Youcanprobablythinkofafewredflags:lagginginnovation.Marketdisruption.Forsakencustomers.Terminalunderinvestment.Leadershipfailure.
Butthere’sanevenbiggercausethatmightnotbeimmediatelyobvious:disengagedemployees.
Morethanproductsandservices,brand,technologyinnovation,orevenbusinessstrategy,employeeengagementcanmakeorbreakacompany’ssuccess.Thoseotherfactorsarecritical,butwithoutengagementit’slikepullingthestickwithoutrevvingtheaccelerator.
Butwe’reinthethroesofaglobalengagementcrisis.Gallup’s2021“StateoftheGlobalWorkplace”reportfindsthat80%ofemployeesaren’tengagedatwork—costingtheglobaleconomy$8.1trillioninlostproductivityeachyear1
Thisextraordinarysituationhasn’tescapednotice.Butincreasinginvestmentisrarelypayingoff.
Leadersknowthatbusinesseswiththemostengagedworkforcearemoreresilient,higherperforming,andfuture-proofthantheircompetitors—butmovingtheneedleonthatengagementcanbechallenging.
Whatisemployeeengagement?
Employeeengagementdescribesanemployee’semotionalcommitment
andconnectiontowork.Engagedemployeesaregalvanizedbytheirwork,colleagues,andthewiderbusinesstobringtheirbestselvestoworkeveryday.
Read“Understandingthebasics:whatisemployeeengagement?”tofindout
whyhighlyengagedworkforcesoutperformcompetitorseverytime.
1Gallup,
“StateoftheGlobalWorkplaceReport2021”
;2021.AnIntrotoTheEngagementEdge|2
That’swherethiseBookcomesin.Inside,weexplorestrategiesandbest
practicesforcreatingaworkplacethatattracts,empowers,inspires,and
keepsthebestandmostdiversetalentoutthere.Becausewhenyouembraceemployeeengagementasastrategicimperative,workgetsbetterineverysense:
•Happier,moreproductive,andmoreengagedpeople
•Fairer,moreequitable,andmoreinclusiveculture
•Higherperformanceandbettercustomeroutcomes
•Easierattractionofbettertalent—andhigherretention
Individually,anyoneoftheseoutcomeshastransformativepower.Buttogether,theycompoundintosomethingmuchbigger.WecallittheEngagementEdge.
TheEngagementEdgeisthekeyfactorthat’sgoingtoseparatethelaggardsfromtheleadersinthenextdecade.It’sthecompoundingadvantageyou
unlockwhenyoucontinuouslylistentoandactonyouremployees’voicestoimprovetheirworkexperiences.Theresultisavirtuouscirclethat
exponentiallyincreasesengagementandbuildsacultureofinclusivityandbelongingforall.
Keepreadingtodiscover:
•Whytraditionalapproachesstruggletoincreaseengagement
•Thesixkeyingredientsofengagementtransformation
•ThenewpotentialoftheEngagementEdge
Hugegainsstarthere.Let’sgo.
AnIntrotoTheEngagementEdge|3
Section1
Howwegothere.
Theideathatbusinessperformanceimproveswhenpeoplearehappyatworkisn’tnew.Butmostworkplacesarestillstrugglingtodeliveronthatpremise.Pithystatementsandgoodintentionshaverarelytranslatedintoaction,
letaloneresults.
PeterDrucker—fatherofmodernmanagement—said“cultureeatsstrategyforbreakfast”backin2006,towidespreadagreement.Buthowmanyseniorleadershavesincemadeseriousattemptstoprioritizeculture—theworkenvironmentyoucreateforyourpeople—asanactivestrategicimperative?
Instead,manyorganizationshaveconfusedstrategic,systematicfocuswiththefunfactor—tryingtoboostengagementwiththelikesofshuffleboardandping-pong,Nerfbasketball,andunlimitedsnacks.
2Gartner,
“GartnerQuarterlyUpdateonGlobalWorkforceTrends”
;2019.
3Gartner,
“GartnerQuarterlyUpdateonGlobalWorkforceTrends”
;2019.
4Gallup,
“StateoftheGlobalWorkplaceReport2021”
;2021.
That’swhyengagementhasbeenstagnatingforyears.Trappingsaside,manyemployeesaren’thappy.
We’retalkingextraordinarilylowbenchmarkshere.AccordingtoGartner®,
theproportionofthegloballaborforcereportinghighintenttostayhasbarelyrisenoverone-thirdinadecade.2Theproportionreportinghighdiscretionaryeffort—whereemployeesgoaboveandbeyondbecausetheywantto,nothaveto—hoversbetween15%and20%.3Andasmentionedearlier,Gallupconcurs,puttingglobalemployeeengagementatonly20%in2020.4
Thinkaboutthosefigures.Some80%ofyourpeoplearecoasting—doingjustenoughtostayundertheradar.And60%aren’tplanningtostayanyway.
AnIntrotoTheEngagementEdge|4
That’saslowslidetowardunderperformanceaswellasaloomingcliffedge.Anditleavesyouwithonly20%ofyourpeoplewantingtobeatworkand
consistentlygoingaboveandbeyond.It’stheParetoprincipleinaction—the80/20rule,withahugechunkofoverallbusinessperformancecomingfromonlyahandfulofpeople.
Butitdoesn’thavetobethatway.AsthiseBookexplores,whenyouincreaseengagement,performanceincreasesexponentially—compoundinginto
theEngagementEdge.
Sowhydoorganizationssettleforthestatusquo?Whyistherestilla
disconnectbetweenwhatorganizationssayaboutengagementand
howtheytrytoimproveit?
Onereasonisownership.
Historically,employeeengagementhasbeensiloedinHR,buttackling
engagementdemandscontinuous,meaningfulchangeacrosstheemployeelifecycle.HRonlytouchesafractionofthosemoments;itdoesn’thavethebandwidthtotakesoleresponsibility.
Externalengagementconsultanciesaren’tagreatfiteither,oftentakingmanymonths—andmoredollars—tocreateasinglesnapshotofengagementthat’soutofdatebeforeyou’vereadit.
Thesecondreasonislackofincentive.
Mostbusinesseshaven’tprioritizedengagementbecausetheyhaven’thadto.In2020—whenglobalengagementwasat20%—Fortune’sGlobal500achievedrecord-highrevenueof$33.3trillion.5Anengagedworkforcewascertainly
desirable,butsuccessdidn’thingeonit.
5F,
“FortuneGlobal500”
;2020.AnIntrotoTheEngagementEdge|5
Butthat’schanging,fast.Severalforceshavebeengatheringpaceforyears,plustheglobalpandemichaskickeddisruptionintooverdrive.
•Collectivereevaluationofpriorities.TheCOVID-19pandemicpushed
manyemployeestoquestiontheirprioritiesandgoalsandreassesstheroleworkplaysintheirlives.Especiallyforfrontlineworkersfacingnew
pressureandpersonalrisk,thetermsoftheworkequationhavechangedprofoundly.TheGreatResignationhasseenmonthsofconsecutive
record-highresignationsaspeoplequestion,pause,orchangetheircareersaltogether.6
•Remoteandhybridworking.Newworkmodelsdisrupttheemployeeexperience(EX)fortraditionaloffice-basedworkers,bringingnew
challengesthatthreatenengagement.Butmanycompanieshave
struggledtokeepvisibilityoverEX,losingsightofemployeeswhenitmattersmost.Andbyextension,they’velostsightofhowstrategicinitiativesperformandhowengagementconnectstowidergoals.
Flexibleworkingisamajorconcern.
Exploringcommentsfrom19millionemployees,recentresearchfrom
Workdayfindsthattheproportionofemployeecommentsrelatedtoflexibleworking,remotework,work-lifebalance,andmentalwell-beinghasremainedalmostunchangedsince2020—whichsawa125%increasefrom2019.
ReadourEmployeeExpectationsReport2022.
•Belonginganddiversity.Growingawarenessofhistoricalinequalitymeansdemandsforchangearelouderthanever.Employeeswanttoknowthattheorganizationismakingprogress—butmanyorganizationsaren’t.
Forexample,McKinseyfoundthatwomenandethnicminoritiesmakeupjust15%and14%,respectively,ofleadershipteams.7
•Socialmovements.Globalunrestandsocialjusticemovementshavebroughtupquestionsaroundethicsandpowerdynamics.Many
employeesarequestioningtherolethattheirorganizationplaysin
helpingorhinderingthecausesthatmattertothem—andarereadytovotewiththeirfeet.
•Sustainability.Widespreadenvironmentalturbulencehasamplifiedcallsforactiononsustainability.Astrongcorporatesocialresponsibility(CSR)andenvironmental,social,andgovernance(ESG)strategy,aswellasa
well-articulatedroadmap,arebecomingmajordrawsfortalent.
•Healthandwell-being.Buildingaworkplaceculturethatsafeguardswell-beinghasbecomepivotalforimprovedpeopleandbusiness
outcomes—butmostorganizationsaren’tdoingenough.Forexample,Galluprecentlyfoundthatfewerthan25%ofU.S.employeesfeeltheirorganizationcaresabouttheirwell-being—thelowestpercentage
inalmostadecade.8
6WorldEconomicForum,
“TheGreatResignationRecord”
;2022.
7McKinsey,
“DiversityWins:HowInclusionMatters”;
2020.
8Gallup,
“PercentWhoFeelEmployerCaresAboutTheirWell-BeingPlummets”
;2022.
AnIntrotoTheEngagementEdge|6
Together,thesedriversareaninflectionpoint.Thebusinessesthatignoreit
committoapathofacceleratingirrelevance.However,allthisdisruptionalso
providesopportunity.Theorganizationsthattakestepstobuildatrue,
continuousunderstandingofemployees’experiences—andacttocreate
change—willtransformthesedriversintoleversforhigherengagement.These
businesseswon’tjustsurvivetoday’schanges—they’llemergestrongerontheir
pathtowardtheEngagementEdge.
Environmental,social,andgovernancematters.
Ourrecentresearchintoemployeeexpectationsrevealsthat12%ofallemployeecommentsin2021wererelatedtoESG,withthosementioningsocialissuesandtheenvironmentincreasingthemostsincelastyear.
ReadourEmployeeExpectationsReport2022.
AnIntrotoTheEngagementEdge|7
Section2
Themissingingredients.
If20%ofyourpeoplecurrentlydrive80%ofperformance,imaginewhatwould
happenifengagementdoubled,tripled,orevenquadrupled.
Whatwouldthatmeanforeveryimportantmetric,goal,andobjectiveacross
theorganization?Whatwoulditmeanfortheintangiblestuff,suchascreativity
andinnovation?
Itwouldmeanacompetitiveedgelikenoother:theEngagementEdge.Butthis
hugepotentialisreliantontruetransformationalchange.It’simportantnotto
underestimatehowdifferentthatlooksfromhistoricalengagementprograms,
whichasweknowsimplyaren’tfitforpurpose.
TherearesixrequirementstorealizingtheEngagementEdge.
1Amorescientificandbroaderunderstandingofwhatdrivesengagement.
Historicalengagementinitiativesoftenfailtocreatechangebecause
theylackthedepthandbreadthtounderstandengagementbeyond
superficialpulsesurveys.
First,behavioralscienceandpsychologyisawell-understoodareaof
study,andengagementprogramsneedarobustgroundinginthe
scienceofhumanmotivation.
Second,it’simportanttofactorinnewdriversthathaven’ttraditionally
beenconnectedtoperformance—suchasyourstanceonbelongingand
diversity.Wemightmeasureengagementthroughobservablebehaviors
butit’safundamentallyemotionalstate,subjecttobroadinfluences.
AnIntrotoTheEngagementEdge|8
k
2Richerdata.
Historicalengagementinitiativestypicallyrelytoomuchonlimited
quantitativeresults.Questionssuchas,“Doyoustronglyagree,agree,
feelneutralabout,disagree,orstronglydisagreewiththefollowing
statements?”areproblematicbecausetheyreduceresponsesto
binaries,lackcontextsuchasemployeetenure,andimplyuniversal
objectivitytheycan’tclaim—forexample,whatdoes“agree”mean?
Thefactis,knowingthat55%ofyourpeoplestronglydisagreethat
youcareabouttheirwell-beingdoesn’ttellyoumuchbyitself,besides
pointingtoaproblem.
Todrivemeaningfultransformationyouneedaccurate,richdatathat
canaccommodatequantitativeandqualitativeinputatscale.Sentiment
analysisofanecdotalfeedback,forexample,doesn’tjusttellyouwhat’s
wrong—itstartstoshowyouwhy,soyoucanstartunderstandingways
tosolveit.
3Continuousfeedback.
Thedatayoucollectmustnotonlyberichandaccuratebutalso
realtimeandcontinuous.Traditionalengagementprogramsfallshort
becausetheyusuallyoperateonaslow,periodiccadence—usually
quarterlyorannually.
ThefullpotentialoftheEngagementEdgecomeswhenyou
leverageinsightsintotheemployeeexperiencetoguidecontinuous
decision-makinginserviceofincreasedengagement.
AnIntrotoTheEngagementEdge|9
4Adedicatedengagementplatform.
Historicalengagementinitiativeshaveoftenfallenintoatrapwhereemployeesareconstantlyaskedbutneverfeelheard—drivingsurveyfatigueandperpetuatingdisengagement.Butactingonengagementdatacanbehard.
Howdoyousiftthroughthemountainsofvaluabledatayou’renow
gettingtocreateusefulactionplans?Howdoyouknowwhichactionswilldrivechange?Andhowdoyoufacilitatethoseactions?Whoneedstobeinvolved?Howdoyoukeeptrack?
Theonlywaytocreatemeaningfulchangefromadelugeofengagementdataiswithapurpose-builtplatform.Therightplatformprocessesall
youremployeeexperiencedataandcreatesclear,tangible,prioritizedactionplanstoincreaseengagement.
6Anewkindofemployer/employeerelationship.
Historically,thepsychologicalcontractbetweenemployeesand
employershasbeentacit,transactional,andtop-down.Changehereis
bothnecessaryforengagementtransformationandalsoacompoundingresult.Thatis,withoutanequitable,transparent,andaccountableculturewhereemployeestrustyoutolistenandact,theywon’tengagewiththeprocessandtransformationwillstall.
Butwhenyoucreateareal-timefeedbackloopthatcontinuouslyhearsandrespondstoemployees’sentimentswithaction,yourpeoplewill
begintoengagemorewiththeprocess,contributericherinsights,forgivemisstepsmoreeasily,andbecomeactiveparticipantsinfuelingthe
culture.That’showengagementtransformationgainstraction.
Let’sexplorewhatthattransformationlookslike.
5AnewkindofHR.
ThepandemichasdonemuchtoproveHR’sstrategicvalue
tothebusiness,andit’simportantthatthisjourneycontinues.
TheEngagementEdgedemandsstrongleadership,democratic
ownership,andbusiness-wideadvocacy.HRshouldembracethis
opportunitytocreatepositivechangeacrosstheorganization.
Todothis,HRleadersshouldcontinueshapingtheirroleasan
ambassadorfortransformationinmultiplecontexts:amongsenior
leadership,asanactivepartnertolinemanagers,andasanenabler
fortheworkforce.
AnIntrotoTheEngagementEdge|10
Section3
Thenewpotential.
Whenthesixfundamentalsofengagementtransformationfallintoplace,you’llseemomentumbuildfast—drivingbroadandfar-reachingbenefits:
•Arichandcontinuousunderstandingofhowyourpeoplefeelaboutyourorganization
•Knowingwhichissuesmattermosttodifferentemployeegroupsatdifferentstagesintheircareerandwhy—andwhichactionstotaketomitigateissues
•Accesstoreal-timedatatomakebetterday-to-daypeoplemanagementdecisions,resultinginthebestoutcomes
•Real-timecontextintothetrueimpactstrategicdecisionshaveonyourpeople,soyoucanmitigateorcourse-correctifneeded
•Theabilitytoaddresscomplex—butcrucial—engagementdynamicsthatwerepreviouslyinvisibleandhardtoquantify,suchasbelonginganddiversity,sustainability,andemployeewell-being
ButtheEngagementEdgeisn’tjustacollectionofbenefitsthatamountto“betterengagement.”
TheEngagementEdgeismorethanthesumofitsparts,becauseas
engagementstartstogrowitunlocksahiddenmargin.It’sanorganicchainreactionthatoccurswhenhighlyengagedemployeesworktogethereveryday—feedingoffeachother’senergytocreateanenvironmentofelevatedinspiration,innovation,andfulfillment.
(
AnIntrotoTheEngagementEdge|11
Nomatterhowexceptionaleveryindividualperformeris,wheneveryone’salignedandengagedyoualsotapintoanextralayerofperformancethatsetsanewbarforwhat’spossible.
TheEngagementEdgeempowersyouto:
•Attractstandouttalentandkeepyourbestpeoplein-houselongerthantheaveragetenure
•Attract,develop,promote,andretainmorediversetalent,cultivatingacultureofinclusionandbelongingforall
•Growyourleadershippipelinewithlong-standingemployeeswhoaredeeplyinvestedinthecompany’sculture,mission,andvalues
•Supporteveryindividualtobringtheirfull,true,andbestselftoworkeveryday
•Equiplinemanagerstobebettermanagers—andboostemployees’growthandperformanceaccordingly
•Empoweryourpeoplewithasenseofownershipandpurposethat
unlocksnewcreativityandinnovationinserviceofyourstrategicgoals
Whenyoudothosethings,youcreateamutuallyenrichingrelationship
betweenemployeeengagementandthestrategicoutcomesyourworkforceiscapableofachieving.
Wheneverypersonwithinyourorganizationisengagedandbelievesintheirwork,youhavethefoundationforaculturethatdisruptsandoutperformsyourcompetitors.
That’swhyGallupresearchshowsorganizationswithacriticalmassofengagedemployeesoutperformtheirpeersby147%earningspershare.9
That’stheEngagementEdge.It’stheturboperformancemarginyouunlockwhenallyourpeoplearepassionatelypullinginthesamedirection.It’stheinspirationmargin,whenallyourpeoplelovewhatthey’redoingandarepersonallyinvestedinsolvingforthebusiness.It’sthebig-ideasmargin,whenyourpeopletrust
you’vegottheirbackseveniftheytryandfail.
9Gallup,
“HowEmployeeEngagementDrivesGrowth”
;2013.AnIntrotoTheEngagementEdge|12
Butswitchthosefigures:80%ofyourpeopleareengaged.
Nowbusinessperformanceincreasespurelybecausemorepeoplearedoingtheirpart.Butalso,8,000engagedpeoplearecollaboratingandinteractingmostlywithotherengagedpeople—liftingtheartificialcapandunlockingthosemarginswe’vebeentalkingabout
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