What's the secret to being one of the World's Most Admired Companies?
Here's the headline: Employee engagement drives loyalty and business performance at World's Most Admired Companies. According to the Hay Group's latest research, top companies are particularly focused on making sure employees feel engaged by their work.
Hay also conducted supplemental research on employee engagement practices at these organizations, which found that companies at the top of the list generated stronger employee loyalty to the organization over the last two years and reported greater decreases in employee frustrations over work conditions that were not conducive to their success.
“The World’s Most Admired Companies have been particularly good at focusing on long-term strategies, showing little tolerance for executives that compromise long-term objectives for short-term gains,” said Mel Stark, vice president with the Hay Group. “Equally important, the WMAC communicate their objectives to all employees, connecting the goals and objectives of every employee to the overall business strategy, and as a result, were able to come out of the downturn with motivated and loyal employees." Hay Group’s study found that 90 percent of respondents from the WMAC identified their company as very effective or effective at fostering high levels of employee engagement compared to 71 percent of their peers.
These findings are supported by another study conducted by consulting firm Towers Perrin (now Towers Watson). They conducted a Global Workforce Study, the largest study of its kind, in which they asked 90,000 employees in 18 countries, "What can a company do to attract, retain, and engage top talent?" They boiled it down to 5 key things:
- Get leaders out front to talk with employees about the business environment…how the organization is responding…the long-term vision…what the organization stands for.
- Involve employees in efforts to manage costs to help them feel like active contributors.
- Communicate consistently and candidly about both short- and long-term objectives.
- Listen and gather input from employees.
- Promote development opportunities so people can see a future for themselves worth working toward.
If you look at 1,3 and 5, you will see these are all about talking to or telling employees something about the company. 2 & 4 are all about listening and getting employees to tell you ways to manage costs, perhaps front line customer feedback on what needs to change, etc. The researchers noted: “The challenge for senior management is to recognize the value of employees’ untapped potential and to channel it in ways that yield real improvements in business performance.”
More engagement comes from being recognized as unique and with value. The good news is with a more engaged team – the leader doesn’t feel they have to do this alone – it truly becomes a team effort. And they may even come to care as much about the success of the organization as you do.
What do you need to start doing today to attract, retain and engage your top talent? There's no time to waste, because even in this tough job market, your highest performers always have choices.
