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8578601065?profile=RESIZE_400xEmployee Engagement has emerged as one of the significant pillars on which the Competitive AdvantageProductivity, and Growth Strategy of an organization rests.  Employee Engagement has many facets.  To assess an organization’s current status of Employee Engagement, executives need to devise a measurement system.  Measuring Employee Engagement is vital in shaping Employee Engagement Strategies that help propel the organization towards growth.

A framework that is quite effective in measuring the existing levels of Employee Engagement and devising strategies based on the individuals’ requirements is the “Employee Engagement Scorecard.”

The Employee Engagement Scorecard comprises of:

  • Metrics for each component of Employee Engagement.
  • A scale for scoring metrics in each component.
  • A comprehensive scorecard that pulls everything together.

The Employee Engagement Scorecard is composed of a number of metrics used to measure the individual employee engagement components.  Each metric is based on a 1 to 5 scale, with 1 being lowest and 5 being highest.  The scorecard was developed through an extensive research process involving academic literature reviews and managerial interviews across the world.

The Employee Engagement Scorecard categorizes engagement scores into 4 groups:

Score of 20 to 39 – Low Engagement Level

Indicates that individual components—e.g., Employee Satisfaction, Employee Identification, Employee Commitment—should be addressed.

Score of 40 to 59 – Somewhat more Engaged

Implies that some Employee Engagement factors require immediate attention.

Score of 60 to 79 – High Level Engagement

Shows that generally the company would operate smoothly and achieve good results but further improvement is needed for growth.

Score of 80 to 100 – Adherence

Signifies that the company observes Employee Engagement Best Practices and the Employee Engagement is at a very high level giving the company an advantage in growth.

The Employee Engagement Scorecard encompasses 5 guiding principles (or dimensions):

  1. Enhance Employee Satisfaction
  2. Promote Employee Identification
  3. Enhance Employee Commitment
  4. Ensure Employee Loyalty
  5. Manage Employee Performance

The 5-dimension Employee Engagement Scorecard has been implemented in 7 countries across the Asian, European and American continents in more than 75 companies.  Let us delve a little deeper into the first 2 dimensions of measurement and key actions needed for Strategy Development.

1. Enhance Employee Satisfaction

Valuable time and resources of the organization may be lost because of dissatisfied employees. Dissatisfied employees tend to be unenthusiastic about work, which negatively affects the quality of work.

Various measures by the management can enhance Employee Satisfaction once the metrics are analyzed, i.e.:

  • Rearranging roles and responsibilities to correspond effectively with employee skill sets and interests.
  • Mentoring employees more actively.
  • Developing effective rewards and benefits systems in line with performance.
  • Offering flexible work hours.

2. Promote Employee Identification

Identifying with the organization is as vital for growth as is employee satisfaction.  A satisfied employee who does not identify with the organization will not be able to embody the organization’s culture and values, and thus will stand out from the ones who do.  This creates dissonance in team building activities which are a necessary part of generating new ideas for employee development.  In such a scenario, the leadership can encourage employee identification by:

  • Offering mentorship programs
  • Creating Idea development platforms
  • Reinforcing the organizational culture and values, to connect the employees with the organizational culture and nurture growth.

Interested in learning more about the Employee Engagement Measurement & Improvement and the results of its implementation in 75 companies? You can download an editable PowerPoint on Employee Engagement Measurement & Improvement here on the Flevy documents marketplace.

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The purpose of Human Resources (HR) is to ensure our organization achieves success through our people.  Without the right people in place—at all levels of the organization—we will never be able to execute our Strategy effectively.

This begs the question: Does your organization view HR as a support function or a strategic one? Research shows leading organizations leverage HR as a strategic function, one that both supports and drives the organization’s Strategy.  In fact, having strong HRM capabilities is a source of Competitive Advantage.

This has never been more true than right now in the Digital Age, as organizations must compete for specialized talent to drive forward their Digital Transformation Strategies.  Beyond just hiring and selection, HR also plays the critical role in retaining talent—by keeping people engaged, motivated, and happy.

Learn about our Human Resource Management (HRM) Best Practice Frameworks here.

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5 Dimensions of EE - Stock image 2Organizations typically focus on Customer-centric Design in their Strategic Planning and overlook the critical driver of Performance, Growth, and Operational Excellence—their employees.  With cut-throat competition now the norm the realization has become clearer that employees are:

  • The face of the business and create lasting—or perishing—brand impression.
  • Sources of innovation and organizational knowledge.
  • Representation of the company’s service philosophy.
  • Expected to live by its Organizational Culture and values.

Employee Engagement has emerged as one of the significant pillars on which the Competitive Advantage, Productivity, and Growth of an organization rests.  What, exactly, does it mean when an employee is engaged?  Employee Engagement, over the years, has been thought of in terms of:

  • Personal engagement with the organization.
  • Focus on performance of assigned work.
  • Worker burnout.
  • Basic needs (meaningful work, safe workplace, abundant resources).
  • Attention on Cognitive, Emotional and Behavioral components related to an individual’s performance.

Although Employee Engagement is widely seen as an important concept, there has been little consensus on its definition or its components either in business or in the academic literature.

Kumar and Pansari’s 2015 study define Employee Engagement as:

“a multidimensional construct that comprises all of the different facets of the attitudes and behaviors of employees towards the organization”.

The multidimensional construct of Employee Engagement has been synthesized into the following 5 components (or dimensions).

  1. Employee Satisfaction
  2. Employee Identification
  3. Employee Commitment
  4. Employee Loyalty
  5. Employee Performance

The 5 dimensions of Employee Engagement have been found to have a direct correlation with high profitability, as substantiated by a number of research studies:

For instance, a study of 30 companies in the airline, telecom and hotel industries shows a close relationship between Employee Engagement and growth in profits.  After controlling other relevant factors—i.e., GDP level, marketing costs, nature of business, and type of goods, the study found:

  • Highest profitability growth—10% to 15%—in companies with highly engaged employees.
  • Lowest level of profitability growth—0% to 1%—in companies with disengaged employees.

Research reveals that Employee Engagement affects 9 performance outcomes; including Customer Ratings, Profitability, Productivity, Safety Incidents, Shrinkage (theft), Absenteeism, Patient Safety Incidents, Quality (Defects), and Turnover.

The differences in performance between engaged and actively disengaged work units revealed:

  • Top half Employee Engagement scores nearly doubled the odds of success compared with those in the bottom half.
  • Companies with engaged workforces have higher earnings per share (EPS).

These 5 dimensions become the base for measuring Employee Engagement in a meaningful manner that permits managers to identify areas of improvement.  To assess an organization’s current status of Employee Engagement, a measurement system is needed that includes:

  • Metrics for each component of Employee Engagement.
  • A scale for scoring metrics in each component.
  • A comprehensive scorecard that pulls everything together.

Let us delve a little deeper into the first 2 dimensions of Employee Engagement.

Employee Satisfaction

Definition

Employee Satisfaction is the positive reaction employees have to their overall job circumstances, including their supervisors, pay and coworkers.

Details

When employees are satisfied, they tend to be:

  • Committed to their work.
  • Less absent and more productive in terms of quality of goods and services.
  • Connected with the organization’s values and goals.
  • Perceptive about being a part of the organization.

Metrics

The 5 metrics that gauge Employee Engagement in terms of Employee Satisfaction include:

  1. Receiving recognition for a job.
  2. Feeling close to people at work.
  3. Feeling good about working at the organization.
  4. Feeling secure about the job.
  5. Believing that the management is concerned about employees.

We take a look at another dimension central in significance.

Employee Commitment

Definition

Signifies what motivates the employees to do more than what’s in their job descriptions.

Details

Employee Commitment is much higher for the employees who identify with the organization.  This element:

  • Develops over time and is an outcome of shared experiences.
  • Is often an antecedent of loyalty.
  • Induces employees to guard the organization’s secrets.
  • Pushes employees to work for organization’s best interests.

Research has found that employees with the highest levels of commitment:

  • Perform 20% better.
  • Are 87% less likely to leave the organization.

Metrics

The 3 metrics that gauge the Employee Commitment dimension of Employee Engagement include:

  1. Commitment to deliver the brand promise along with knowledge of the brand.
  2. Very committed to delivering the brand promise.
  3. Feels like the organization has a great deal of personal meaning.

Interested in learning more about these foundational pillars to Employee Engagement? You can download an editable PowerPoint on 5 Dimensions of Employee Engagement here on the Flevy documents marketplace.

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