Evolved Employer

A Better Workplace


Employee Engagement

Involving Employees in Efforts to Boost Engagement


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By Rebecca Pyne

While initiatives to increase employee engagement have been a hot topic for some time, many companies continue to struggle to keep high numbers of their employees feeling engaged at work. What can companies do to make their employee engagement initiatives more effective?

A case study published last month in the Gallup Management Journal shows that including employees in the process of designing and implementing employee engagement initiatives can reap rewards. With Gallup’s help, Stryker Navigation, a global manufacturer of navigation systems for computer-assisted surgery, has been able to involve its employees in the process of bringing about significant increases in employee engagement.

The case study, written by Marco Nink, a Practice Consultant for Gallup and Klaus Welte, a Vice President at Stryker Navigation, has promising implications for employers interested in novel ways of increasing employee engagement.

Asking the Right Questions

While employee surveys assessing engagement are commonly used, Nink and Welte suggest that companies’ employee surveys often fail to effectively measure employee engagement because they ask the wrong questions, confusing employee satisfaction with engagement.

According to Nink and Welte, employee satisfaction is not the same thing as engagement; in fact, employee satisfaction can be connected to passivity. Nink and Welte write, “An employee who is satisfied with his salary or the amount of annual leave is not necessarily, of his own free will, going to lend full support to his employer and his employer’s goals.”

Meanwhile, engagement, which in Gallup’s terms is emotional attachment to one’s work, has a positive impact on productivity and increases the likelihood that employees will act in the interests of the employer.

When Stryker Navigation reached out to Gallup for assistance in increasing employee engagement, Gallup began by utilizing a 12-item questionnaire, the Q12, which assesses employee engagement by measuring the degree to which employees’ core needs and expectations of the workplace are being met. The Q12 asks employees to what extent they agree with key statements such as, “I know what is expected of me at work” and “At work, I have the opportunity to do what I do best every day.”

The results of the first Stryker Navigation employee engagement survey demonstrated that only 32% of employers were engaged. Gallup found that Stryker employees had provided particularly low ratings for two items: “I know what is expected of me at work” and “I have the materials and equipment I need to do my work right.”

Creating a Transparent Follow-through Process

Armed with a new understanding of the factors contributing to its employee engagement levels, Stryker’s management worked to more clearly describe what was expected of employees on individual teams and projects and to increase the frequency of feedback discussions. In order to include employees in the implementation process, Stryker began discussing and monitoring action plans for addressing engagement-related challenges at monthly project team meetings.

In doing so, Stryker’s management deliberately shared responsibility for progress in its action plans with its employees while creating a structure for monitoring engagement over the long-term.

Stryker Navigation’s employee engagement efforts led to the percentage of engaged employees doubling from 32% to 64% within the first year and reaching 73% in 2011. Nink and Welte note, “The atmosphere in the company has changed for the better. Employees and managers feel that together they can get things moving and make improvements.”

Additionally, Stryker Navigation has increased its output of products considerably while the quality of new products has also increased as measured by the number of repairs and customer complaints. Nink and Welte emphasize the value of correlating the results of the employee surveys with key performance indicators or KPIs. They write, “By combining these two types of organizational data — the ‘soft’ employee engagement data with the ‘hard’ KPI data — we can demonstrate the direct economic benefit of the actions on costs and growth.”

Lessons from Stryker Navigation and Gallup

Nink and Welte highlight the importance of asking employees the right questions so that a company can develop a clear understanding of what is causing lower levels of engagement and then target those areas. They emphasize the potential of creating a transparent follow-through process that shares the responsibility for progress with employees by involving them in frequent monitoring. Additionally, Nink and Welte call attention to the value of correlating the results of employee engagement surveys with performance indicators and carrying out these surveys regularly, tracking changes over time.

Thought Leadership

Fixing the “Pyramid Problem:” A New Approach


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Contributed by Caroline Turner, author of Difference Works: Improving Retention, Productivity and Profitability through Inclusion

Women are still not proportionally represented at the upper levels of business. Women represent about half of entry-level employees and lower level management positions. But at each level up the corporate hierarchy, the percentage of women is lower.

According to Catalyst, in 2011 in the Fortune 500 women represented only 14.1% of executive officers, 7.5% of top earners and 3.2% of CEO’s. In law firms in 2010, Catalyst reports, women made up 45% of associates but only 19% of partners. These declining percentages form a pyramid: the “pyramid problem.”

This is more than a problem for women. It is a problem for business. The pyramid problem results in substantial, unnecessary costs for business and it prevents business from realizing the documented upsides of gender diversity. It’s time to shift the focus from how women need to change in order to succeed to how corporate culture can change in order to achieve gender diversity in leadership. That takes framing and talking about the issue differently.

How can women change agents climbing the corporate ladder talk about the pyramid problem and enroll men and leadership in wanting to fix it? I suggest three things:

  1. Present the business case for fixing the pyramid problem
  2. Bring attention to the strengths of both masculine and feminine approaches to work without stereotyping
  3. Find a few male allies who see and will speak up on the issue.

Generations

Why Companies Can’t Ignore Gen X


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By Melissa J. Anderson

Much of the information about generational conflict in the workplace revolves around smoothing out the differences between Baby Boomers and Millennial employees, often ignoring the talented, diverse, and highly adaptable middle child – Gen X.

According to a recent report from the Center for Work Life Policy, The X Factor: Tapping into the Strengths of the 33- to 46-Year-Old Generation, the generation of individuals between the ages of 33 and 46 are hard at work, highly educated, and highly ambitious.

At the same time, the report says, Gen Xers are frustrated – the Baby Boomers ahead won’t seem to retire and the horde of ambitious Millennials behind them are eager to push them out of the way. In fact, according to the study, 41% of Gen Xers were not satisfied with their rate of advancement, and roughly half (49%) said they felt their career was stalled.

Having survived three recessions since entering the workforce, and many deeply in debt, one would assume that this generation of workers was living up to its characteristic sullenness. But, according to a new report out of the University of Michigan, Gen X’s gloominess faded away in the 90s. Today, this generation is happy.

That gives employers a big reason to take notice – rather than focusing career development and advancement initiatives solely on its youngest workers, they need to pay attention to Gen X employees too. Or else they will happily take their education, experience, drive, and adaptability to another company that will better support their needs.

Employee Engagement

How Work Life Policy Reflects National Priorities – and What Companies Can Do About It


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By Melissa J. Anderson

Recently the Organisation for Economic Cooperation and Development (OECD) released its Your Better Life Index, a report which ranks the OECD’s 34 member countries on a number of topics, including work life balance.

According to the OECD, work life balance per country can be measured by comparing the percentage of workers in a country working more than 50 hours a week, the amount of time spent on “leisure and personal care” per day (including sleeping, eating, hobbies, etc), and the rate of employment of mothers.

The organization explains:

“This [work life balance] is a challenge to governments because if parents cannot achieve their desired work/life balance, not only is their welfare lowered but so is development in the country. If parents have to choose between earning money and looking after their children, the result is that there will be too few babies and too little employment.”

The OECD’s concept of work life balance is mainly focused on the well-being of children and ability of parents to be productive. It does take productivity and worker happiness into account, but not as a strong focus. Nevertheless, the measure is an interesting way to see how different countries allocate resources to family-related issues as they pertain to workers.

Corporate Social Responsibility

Making Corporate Responsibility Really Work


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By Melissa J. Anderson

In a recent Harvard Business Review blog post, leadership expert Frances Hesselbein wrote about the critical importance of corporate responsibility – not just as a means to provide visibility to companies, but as a way to nourish deep pools of talent within the community. She wrote:

For leaders in all three sectors there is a new appreciation that when we build the healthy community, it is for the greater good. And even for a leader with little concern about the greater good, there is the reality that a sick and ailing community cannot produce the healthy, energetic, productive workforce our enterprises demand if indeed they are to be viable and even present at the end of this turbulent decade.

Hesselbein was writing in 2010, when, mired in a recession, companies were cutting the budgets of any corporate program that didn’t seem crucial in the short term. She cautioned against this, explaining that leadership had the ability to instill a dedication to corporate responsibility in a high-performing workplace culture.

She also said that the commitment to corporate responsibility must not be superficial, but rather a deep and earnest effort on behalf of the corporation. She writes:

“Ignoring externalities threatens excellence, ethics, and engagement in organizations, but addressing these externalities can transform challenges into opportunities. When we truly focus on the common good, service is a privilege —not a chore but a remarkable opportunity.”

A new study confirms that notion – and goes further. Not only must corporate leadership truly believe in its corporate responsibility efforts for them to have an impact on stakeholders, but the company has to be respected in the marketplace as a high value company as well.

Diversity, Gender

How Change Agents Can Push for Institutional Change toward Gender Diversity


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By Robin Madell

There’s only so much that individuals can do on their own to try to catapult their careers. One finding of Catalyst’s Myth of the Ideal Worker report is that even when women tried all the strategies they had been told will help them get ahead—using the same tactics as men—they still advanced less than their male counterparts and had slower pay growth. Therefore, as with latticing, it’s up to the companies themselves to meet women halfway.

DDI’s Global Leadership Forecast 2011 found that some organizations are doing a better job than others of getting women into leadership positions—and those organizations have more formal processes in place for talent management.

But how can change agents encourage their organizations to make these changes?

Diversity

Rise of Corporate Diversity


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By Melissa J. Anderson

Last week the SEC announced that Pamela A. Gibbs would become head of its new Office of Minority and Women Inclusion. The New York Times reported that the OMWI will oversee the creation of offices of diversity across several regulatory agencies, such as the Treasury Department, the FDIC, the CFPB, and each Fed bank. These offices will, in tern, monitor diversity at any private companies that have contracts with them (like law firms and investment banks).

Gibbs’ appointment comes under a provision of Dodd Frank which mandates that federal agencies and private companies contracting with them make a “good faith effort” toward the “fair inclusion and utilization” of women and minorities. The OMWI and related offices will work to clarify what that means.

The appointment coincides with a rising awareness of what diversity brings to the corporate workforce – better, more thorough decision-making, more creativity and innovation, and an increased ability to reach as-yet untapped market demographics. These factors contribute to the “business case” for diversity, which is beginning to gain acceptance at corporations around the globe.

Generations

How The Recession is Shaping Millennials at Work


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By Melissa J. Anderson

According to The Atlantic’s Derek Thompson, Millennials have been hit hard by the recession – arguably harder than other generations. For example, unemployment is between two and three times higher for younger workers than for older ones.

Not only that, but Gen Y unemployment means a significant decrease in lifetime earning potential has also decreased. Thompson writes:

“For Millennials, it’s not just the money they’re not making today. It’s all the money they won’t make tomorrow. For every one-percentage-point increase in the unemployment rate, new graduates’ starting income falls by 7 percent, according to Lisa Kahn, an economist at Yale.”

The reality of the economic environment has been difficult for everyone when it comes to personal finance. But how has it shaped the way Millennials perceive their careers?

Diversity, Gender

Why Corporations Should Work to Instill a Paternity-Leave Culture


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By Melissa J. Anderson

In her new book, Half A Wife: The Working Family’s Guide To Getting A Life Back, Gaby Hinsliff explains that the challenges that mothers and fathers face in the workplace, as they pertain to work/life balance, aren’t the same. Much of the work/life discussion revolves around time – having the time to build a career one is proud of, as well as manage family responsibilities in a way one is also proud of.

But there’s more to it than that. When it comes to compromise in this area, men and women are judged differently in the workplace, and likely perceive their own sacrifices differently. She writes:

“A successful woman who compromises her career for the children will often be praised for doing so, because she is conforming to a sentimental idea of what ‘good’ women do. A man doing the same, however, is challenging the idea of what it means to be a man: competitive, ambitious and a successful provider. The idea that mothers are ‘necessary’ to children but fathers more dispensable is ingrained in most men from childhood, not least by their own fathers.”

But a recent study shows that this attitude is changing amongst fathers – and there is a desire for corporations to change as well. The Boston College Center for Work and Family’s survey of almost 1,000 “white collar” fathers at large corporations revealed that while men considered themselves career driven, the majority wished they could spend more time at home.

Brad Harrington, Executive Director of BC’s Center for Work & Family, said “We see that fathers, too, need a family-supportive work environment when it comes to aligning work and family, and this has tangible benefits for their jobs and careers, and in turn for their organizations.”

Employee Engagement

By the Numbers: Why Engagement Matters


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By Melissa J. Anderson

In the past few years, we’ve seen employee engagement drop significantly from previous levels. In fact, according to Gallup, which is well known for its employee engagement tracking methodology, in the best organizations, the ratio of engaged to disengaged employees is 9.57 to 1. On the other hand, in average organizations, that ratio is only 1.83 to 1. Gallup says that engagement is key to driving effective workers – and disengagement costs US companies $300 billion in lost productivity.

If employee engagement is so important and, simultaneously, so low, why aren’t companies doing more to raise it? And what can companies do to increase the engagement levels of their workforces?