Creating KPIs that drive engagement & performance

How to create KPIs that drive engagement and performance

Setting KPIs

“If you can’t measure it, you can’t manage it”. 

Although this is true many companies don’t know what to measure or, if they do, they don’t know how to establish KPIs.

Why is this so important?

KPIs drive behaviour – if you know you are being evaluated against certain metrics then you will adapt how you work and how you perform.  This sounds good, but it can also be highly counter-productive, especially if you don’t know what to measure or measure the wrong thin. The result: bad management, mixed messages, confusion and employees focusing on the wrong thing.

You need to establish and develop your KPIs with care. Have too few and you may have an unbalanced “portfolio” of KPIs, have too many and it becomes a case of “everything is a priority, nothing is a priority”.

KPIs vary for different areas and different roles – but they are all underpinned by one factor: the company’s strategy and operations.  As such your KPIs are the indicator of where the company is headed. But it is also the one area that many companies mismanage as they are not thinking about how a KPI is helping the company to meet its targets.

Goals are not KPIs

A common mistake is to confuse KPIs with goals. The two are not the same.

For example, a company wants to achieve a $100 million of sales – this is often assumed to be the KPI when it is not.  In this example the KPIs there should be about the sales process. The KPIs might be about how many new customers, how many customers visited gave a repeat visitation, how many of those visits ended up in a presentation and how many of those were closed as deals. The KPI has to measure the process. You want the KPI linked to the corporate goal but it is not the goal itself.

When looking at the process you are measuring make sure that the KPIs relate to the corporate goals.  For example, having a KPI of sales reports in time does not drive sales – it only supports the process.  Furthermore every industry has formal KPIs (often found in the job description) and informal KPIs that are not written down. Like incongruent KPIs pulling in different directions, they can leave employees confused and disenchanted.

KPI is about Performance, Not People

KPIs are not about measuring people, they are about the process.  The KPIs are there to measure the performance of the organisation and KPIs are tools that people can use so that they can work not just in the business but also on the business, in other words improve the way the business works and improve its performance. They track the strategically important goals and objectives of the business.

Developing KPIs

It is absolutely critical for managers to develop the KPIs in consultation with the employee.  Developing them in isolation and imposing them on high creates, at best, a lack of buy-in and at worst total disengagement.  People want to succeed, and they want to be involved in how they succeed.

When discussing this you need to talk about three things:

  • What the person is employed for, and
  • What is going to give them satisfaction that will ensure they stay loyal and motivated; and
  • How this relates to the company’s main goals

Once there is a shared and common understanding you need to discuss the KPIs that are most effective and relevant to the processes that affect how they work and perform.  This is not to say that each individual has their own unique set of KPIs, rather that there is an agreed and understood portfolio of KPIs that complement and reinforce each other, whilst aligning the individual and team(s).

Monitoring KPIs

KPIs need constant monitoring to have relevance.  If they are measured, for example, only on a quarterly basis then it becomes like an exam.  It is viewed as being extraneous their job, rather than intrinsic. This creates a feeling of irrelevance, a lack of commitment to the KPIs and people having to be forced to comply – creating ineffective KPIs and reduced performance.

So what have you done and what are you going to do with your KPIs?  Talk to your people. Be clear on your goals, understand the key processes to be measured, and make the KPIs relevant, meaningful, measurable and review.

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Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

90% Rule for Better Decisions

Too often we make a decision which, at best, is marginal.  How many times have you made a decision that you have regretted?  That involved more work than expected? Which impacted other work that was more important? That lead you to spread yourself too thin?

Why does this always seem to happen?  In short, we are not selective enough in the choices we make. There is a simple and effective way to so this – it is called the 90 Per Cent Rule.

The 90 Per Cent Rule

You can apply the 90 Per Cent Rule to just about every decision or dilemma. As you evaluate your decision or dilemma, think about the single most important criterion for that decision, and then simply give the option a score between 0 and 100. If you rate it any lower than 90 per cent, then automatically change the rating to 0 and simply reject it. This way you avoid getting caught up in indecision, or worse, getting stuck with the 60s or 70s.

In doing this we put the decision to an extreme test: if we feel the total and utter conviction to do something, then we say yes. Anything less gets thumbs down!

Applying highly selective criteria is a trade-off; sometimes you will have to turn down a seemingly very good option and have faith that the perfect option will soon come along. Sometimes it will, and sometimes it won’t, but by of applying selective criteria forces you to choose which perfect option to wait for, rather than letting other people, or the universe, choose for you.

When our selection criteria are too broad, we will find ourselves committing to too many options. What’s more, assigning simple numerical values to our options forces us to make decisions consciously, logically, and rationally, rather than impulsively or emotionally. Making our criteria both selective and explicit affords us a systematic tool for discerning what is essential and filtering out the things that are not.

Yes, it takes discipline to apply tough criteria. But failing to do so carries a high cost.

To view or download a PDF version of this blog click here.

Share your thoughts and ideas here, or email me at andrew.cooke@business-gps.com.au

If you found this article of use or interest please don’t hesitate to share it with others.

Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

9 Ways to Accelerate Customer Loyalty

9 questions to ask to help you keep clients loyal – now and in the future.

 

Customer LoyaltyLast week we looked at the difference between client satisfaction and client loyalty, and the mistake commonly made by leaders in the belief that client satisfaction and client loyalty are positively correlated i.e. that higher the level of client satisfaction the higher the level of client loyalty.

Research has shown that the more value you deliver, the more satisfied your clients will be. The more satisfied they are, the more likely they will be to stay loyal to your firm and refer other clients to you.  There is good logic here, but it makes an assumption which is often not explicit or valid in most instances.

Have you ever had a client for whom you have delivered value, for which they are highly satisfied – and who have then awarded a deal to someone else for any reason?  Most people have had this experience.  We have found that there is a disconnect between our delivering value and our realising client loyalty.

The fault is ours, not theirs.

If we are to keep our clients’ loyalty we need to focus on our clients’ perception of your value and our clients’ perception of your differentiation.  The flawed assumption that is often made is that we look at the value delivered, and how we differentiate ourselves, from our perspective not that of the client.

If you want to keep your clients loyal, you need the answers to nine questions—some of which are focused on the clients’ perception of your value, and others on the clients’ perception of your differentiation.

Five Questions for Valuevalue men

Question #1: What value do clients perceive regarding our general category of company and services?

Perhaps your clients value that you are a diversified marketing company, not just a website firm. Or, that you are a specialist in XYZ, not a generalist. Perhaps they value that you are a family business versus a corporation. How clients perceive your type and category of company will resonate with many buyers.

Question #2: What is the value clients perceive regarding us as a firm?

You might find that clients value your innovation and don’t care as much that you’re periodically unresponsive. Or, that they value your client service excellence, but your technical reputation doesn’t matter quite as much. Maybe there are areas they don’t value or where you are falling down in your delivery.  Clients are not interested in what you do, rather they are interested in the value that you can help them realise.  Be clear on what value they see from your business, and where this value is created, and when, and for how long it lasts.

Question #3: What value do clients perceive regarding the specific services we offer?

This allows you to know what’s working for clients, which services you offer that are the strongest, and where you deliver the best value.

You might also learn that your clients don’t even know you offer particular services. Familiarity, in this case, breeds contempt – one side assuming the other knows, and the other not knowing because they’ve never been told.

Question #4: What value do clients perceive in solving the specific problems they currently have?

We all have problems, but not all problems are created equally. If you know the key priorities for a client, then you can help the client tackle them.  Don’t assume that the client always knows what the problem is – by framing the problem appropriately you can help them to see problems clearly, or to see problems that they never realised they had, or that they had failed to anticipate.  This can be exceptionally valuable to a client.

Question #5: What value do clients perceive they might get if they could solve certain problems or accomplish certain things that they aren’t focusing on right now or might not see as priorities?

In doing this we help clients to create a better future or one that they may not have even known was possible. By helping clients solve problems they didn’t know they could solve, and making improvements they didn’t know they could make, service providers score higher on satisfaction (that, as we mentioned, is an indicator of future loyalty).

differentiationFour Questions on Differentiation

Question #6: What different options do the clients perceive they have regarding different categories of companies that can help solve problems or achieve goals?

Sometimes it doesn’t matter as much which specific companies your client might view as what the other options are that they might be considering.  As such you need to know the types and categories of companies offering services in your region. For example, as a management training company, with a core set of services in classroom training, you need to know if your buyers are considering e‐learning providers—and how to position yourself against them

Question #7: What different options do clients perceive they have regarding specific companies that can help them solve problems?

You need to know your distinctions, advantages, and disadvantages when compared with them. This is from the client’s perspective – not yours.

Question #8: What different options do clients perceive they have regarding specific services available to help them solve problems?

How do clients perceive they can solve their problems?  Can you create options around what they need, rather than what you, to help them think about how they could use you – rather than should they use you!

Question #9: What different options do clients perceive they have regarding other ways to solve problems, such as internal staff?

Competitors are not always the biggest source of competition.  Competition also comes from the option of the client doing it themselves, not doing it at all, changing the scope and extent of the project, or giving preference (and thus some or the entire allocated budget) to other internally competing projects and priorities.

Next Steps

Go through these questions with your clients.  Get it from the horse’s mouth.  Compare this with how you see it, where are the biggest gaps, and which areas are the priority for addressing.

Thanks to Mike Schultz of Wellesley Hills Group whose work provided the basis for much of this article.

Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

Engaging & Retaining Staff – Part 5

12 Ways to Engage & Retain Staff, Image (c) People Insight

In the first blog in this series we looked at why employee engagement is so important and provided an overview of Gallup’s findings from its extensive research.  This was summarised in the following 12 ways to engage employees.

In the second blog we examined the first 3 elements in further detail.  This included:

  1. I know what is expected of me at work.
  2. I have the right materials and equipment I need to do my work right.
  3. At work, I have the opportunity to do what I do best every day.

In the third blog we continued looking at the second triad of elements including:

4. In the last seven days, I have received recognition or praise for doing good work.

5. My supervisor, or someone at work, seems to care about me as a person.

6. There is someone at work who encourages my development.

In the fourth blog we looked at the next 3 elements:

7. At work, my opinions seem to count.
8. The mission or purpose of my company makes me feel my job is important.
9. My associates or fellow employees are committed to doing quality work.

In this blog we look at the final 3 elements:

10. I have a best friend at work.
11. In the last six months, someone has talked to me about my progress.
12. This last year, I have had opportunities at work to learn and grow.

Tenth Element – A Best Friend at Work

What does it mean?

This element is a strong predictor of performance, describing friendships which are supportive. With people it is human nature that will always win over company policy – so it is important to create, capture and leverage the power of friendships.

What is the evidence?

People look out for their friends; tolerate disagreements better, and are more likely to invite and share candid information, suggestions, and opinions, and to accept them without being threatened.  Gallup research indicates that as trust between employees increases, employee engagement increases, employee performance increases, camaraderie between employees increases, and employee happiness increases when workers report having a best friend on the job.

What should we do?

Best managers encourage friendships in the workplace by creating the conditions under which such relationships thrive.  As such managers need to get to know people in their team both individually and in terms of the dynamics that exist between them.  This then allows managers to put together people who probably could communicate, first of all, but secondly be or become friends.  To achieve this there needs to be good communication between all people, and objective criteria for the team.

Eleventh Element – Talking About Progress               

What does it mean?

Here the manager provides regular, insightful, and personal feedback to staff on both a formal and informal basis.

What is the evidence?

Staff need a clear picture or mirror of how they are performing to avoid the “Double Curse” where people ether over- or under-estimate their abilities in the following ways:

  • Self-analysis on performance is poor – people to tend to overestimate how they have done.  They lack the skill or knowledge to estimate properly – a form of unconscious incompetence.
  • Also undue modesty – people who do well know they have done well, but do not know their accomplishment is unique.  They tend to err in their estimates of others – consistently overestimating how well people do on the same test etc.

Gallup research indicates employees are more likely to believe they are compensated fairly when their manager gives them regular performance reviews. Additionally, employees who receive regular performance reviews tend to stay with the company longer and are twice as likely to tell others that their company is a great place to work.

What should we do?

Firstly, understand that the type of information that motivates a given employee, and realise that it may be different from the types that motivate others or the way that you yourself prefer.  When appraising performance for it to be effective it must be tailored for specific tasks, occupations and even personalities.

Focus on people’s strengths to stop them becoming actively disengaged, but provide constructive feedback on their weaknesses.  The appraisals are more meaningful, and perceived as more objective by staff, if they are held on a regular basis and the feedback is about relatively recent things.

Informal and on-going feedback is also important.  When discussing things with people get them to think what the options might be, don’t give them the answer right away.

A key question to ask yourself as a manager is “What can I do to improve, to coach, the person, to help him, to teach him?

Twelfth Element – Opportunities to Learn & Grow

What does it mean?

When employees feel they are learning and growing they work harder and more efficiently – this has a particular strong connection to customer engagement and profitability.

The importance of learning and growing is best appreciated when they are not there.  A lack causes frustration, and dissatisfaction as their enjoyment of work is lessened with no meaningful new challenges causes them to languish professionally and personally.

What is the evidence?

People perform when they are working toward specific difficult-to-attain targets rather than told to “do your best”.  These stretch goals are psychologically invigorating and good for business.  We need to look at the accomplishment not just in absolute terms, but also relative to what might have been and how people construe the results – especially the individual himself.

What should we do?

To match a worker with the right opportunities you need to have a deep understanding of the individual’s strengths and hopes for the future.  You need to have regular and meaningful conversations with them to develop this.

Summary
Employee engagement is crucial to retain key employees, to raising productivity and enabling the business to grow profitably.  If you don’t engage employees the best will leave, and those who are disengaged will quit and stay!
How good are you at using these 12 ways in an effective way:
Which of these 3 elements have you used and to what effect?  If you were to rank them which would you use first?  Would you use them with everyone, some of them or with no-one? What are you favourite ways or preferred ways to engage employees?
Until then share your thoughts and ideas here, and feel free to share this blog and articles with any colleagues, clients or friends you feel may find this of value. If you have any particular areas of interest you would like article on then please let me know.
Share your ideas, and share the wealth!
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Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

Engaging & Retaining Staff – Part 4

 

12 Ways to Engage & Retain Staff, Image (c) People Insight

In the first blog in this series we looked at why employee engagement is so important and provided an overview of Gallup’s findings from its extensive research.  This was summarised in the following 12 ways to engage employees.

In the second blog we examined the first 3 elements in further detail.  This included:

  1. I know what is expected of me at work.
  2. I have the right materials and equipment I need to do my work right.
  3. At work, I have the opportunity to do what I do best every day.

In the third blog we continued looking at the second triad of elements including:

4. In the last seven days, I have received recognition or praise for doing good work.

5. My supervisor, or someone at work, seems to care about me as a person.

6. There is someone at work who encourages my development.

In this blog we look at the next 3 elements:

7. At work, my opinions seem to count.
8. The mission or purpose of my company makes me feel my job is important.
9. My associates or fellow employees are committed to doing quality work.

Seventh Element – My Opinion Seems to CountWhat does it mean?

Great managers are receptive to hearing ideas and opinions from their direct reports.  There is the need to understand the dynamics of a diverse group of people who are working together to avoid turf wars etc.  Managers and staff need to know and respect each others’ roles.

What is the evidence?

About 50% of employees who say their company is receptive to hearing their opinions report they are able to deliver very creative ideas while on the job.  Gallup studies reveal when employee-generated ideas are accepted and implemented, the commitment level to executing these ideas from employees is higher than normal.

What should we do?

  1. Be genuine and authentic with people, make them feel important and that they count
  2. Every system depends on the motivation of the people who run it; as such motivation requires people to strongly agree that “At my work, my opinions seem to count”.
  3. Make people feel that their opinions count,  this helps them to bring out more creative ideas and a higher level of engagement. As such it has a substantial impact on customer experience, productivity, employee retention and safety which collectively improve profitability.
  4. Incorporating employees’ ideas has 2 benefits: firstly, often the ideas are good; and secondly, it makes it more likely that the employees will be committed to its execution.

Approaches for developing this include:

  • Regular meetings with ground rules including one speaker at a time, no blaming, speak in headlines, give constructive feedback and “to directly address the issue.
  • Role plays – especially between positions where there are difficulties or tensions, with people playing the others roles.
  • Developing plans around how to work together, and what specifically you are going to do in terms of combined roles, communication and expectations.

Eighth Element – A Connection with the Mission of the Company

What does it mean?

Great managers are able to connect their direct reports to the mission of the company resulting in employees feeling their job is important.

This is about having an emotional connection with the company.  People need to have meaning and purpose, they want to understand how they fit into and contribute to the grand scheme of things.  This gives them a sense of purpose and belonging.

For example, Kodak positioned itself not as a seller of film, but a capturer of memories.  This focuses on the emotional outcomes of what they do, rather than the rational tasks of their work.

The more people agree with this statement is predictive of its performance on a wide array of measures

What is the evidence?

Project teams that are mission-driven report 15-to-30% lower turnover rates. According to Gallup research, trust-level in the decisions of upper-manager increases, less on-the-job conflict happens, and greater commitments to getting the job done occurs when employees feel a direct connection exists between their job and the mission of the company.

What should we do?

There are 3 “lenses” through which an individual can filter the world and define for himself or herself whether the work contributes to the quality of their life or not.  It is not the work that defines the individual.  The 3 “lenses” or categories include:

  • Work is a job; a necessary inconvenience and way of earning money with which they can achieve personal goals and enjoy themselves outside of work. They are the least engaged.
  • Work as a career; they enjoy the increased pay, prestige and status that comes as they work their way up the corporate ladder;
  • Work as a calling; usually associated with the belief that the work contributes to the greater good and makes the world a better place.

We need to be clear on the emotional purpose of the company, and how each individual’s work contributes.  We need to highlight what the values of the company are, and how what they do reinforces those values and contributes to the outcomes.  Having an on-going dialogue about this and making it relevant to what they do helps to strengthen this.

Ninth Element – Coworkers Committed to Doing Quality Work

What does it mean?

Great managers develop engaged staff who are committed and motivated to doing a great job

What is the evidence?

Research shows that 67% of employees fail to strongly agree that their co-workers are committed to doing quality work. As such, if people do “not pull their weight” it can have a negative impact on morale and productivity. For example:

One man pulls at 100%.  If two men are pulling the average man will exert himself at 93%, with four men it is at 75% each.  By the time the eighth man is added, each man is pulling only on average only half what he could.  In fact, 8 men on the rope pull no harder than seven, as the other seven relax enough to subtract whatever the eighth man adds.

So work groups can be 2+2=5, but they also have the capability of 2+2=3!

This can mean that teams with a poor work ethic and poor sense of responsibility, can become a place to hide laziness, push work to other people and to create a culture of blame.

What should we do?

We need to distinguish whether the lack of performance is about a lack of aptitude (i.e. they lack the relevant skills) or a lack of attitude (they lack the right behaviours).  You can only train people for aptitude; you can never do this for attitude.  Your three options are to Terminate, Transfer or Train.

Which of these 3 elements have you used and to what effect?  If you were to rank them which would you use first?  Would you use them with everyone, some of them or with no-one?

Share your ideas, and share the wealth.

In the next and final blog we look at the final three elements including:

10. I have a best friend at work.
11. In the last six months, someone has talked to me about my progress.
12. This last year, I have had opportunities at work to learn and grow.

Until then share your thoughts and ideas here, and feel free to share this blog and articles with any colleagues, clients or friends you feel may find this of value.

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Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

Engaging & Retaining Staff – Part 3

12 Ways to Engage & Retain Staff, Image (c) People Insight

In the first blog in this series we looked at why employee engagement is so important and provided an overview of Gallup’s findings from its extensive research.  This was summarised in the 12 ways to engage employees.

In the second blog we examined the first 3 elements in further detail.  This included:

  1. I know what is expected of me at work.
  2. I have the right materials and equipment I need to do my work right.
  3. At work, I have the opportunity to do what I do best every day.

In this blog we continue with the next 3 elements provided by Gallup:

4. In the last seven days, I have received recognition or praise for doing good work.

5. My supervisor, or someone at work, seems to care about me as a person.

6. There is someone at work who encourages my development.

So let’s look at each of these in turn.

Fourth Element – Recognition & Praise

What does it mean?

Great managers consistently give their direct reports prompt feedback and positive recognition, not just at the annual review when the feedback is often too little, too late and lacks context.  Recognition is not just about financial benefits, but includes on-going recognition and constructive feedback.

What is the evidence?

Employees are twice as likely to say they will leave their current company in the next year if they do not receive adequate recognition. Additionally, employees who report not receiving adequate recognition/feedback are more likely to feel as though they are underpaid.  Gallup research indicates companies are able to increase productivity and revenue when employees report receiving prompt feedback and positive recognition.

What should we do?

  1. Provide regular, appropriate and constructive feedback to your reports.  Make sure it is timely so that is relevant and applicable to the context of the situation for which the feedback is being provided.  Remember the effect of praise is short-lived – so look to provide it properly and appropriately every week.
  2. Don’t assume that your reports know that you appreciate their work – they can’t read your mind, so tell them!
  3. Remember people gravitate towards positive reinforcement and positive words.  You attract positive people and encourage them to be positive in turn creating a positive spiral effect.  This is especially true as, in the perception of employees generally, praise is painfully absent from most companies and the workgroups within them.
  4. Positive changes also happen to people who give the praise
  5. Provide objective examples with praise; make it clear why and for what it is being given to both the recipient and others.
  6. Find the forms of feedback that mean the most to each of your employees and use them – it makes the recognition and its positive effects more powerful.

Fifth Element – Someone at Work Cares About Me as a Person

What does it mean?

Great managers take an authentic and personal interest in the employees they manage, and their employees recognise it as such.

What is the evidence?

Companies can experience 22-to-37% higher turnover rates when employees believe their manager treats them as just a number.  Gallup research has continually showed a direct correlation between employees feeling as though they are not cared about and employee resignations.

When our emotions kick in the connection is personal, so people will treat each other differently when there is a personal connection. If people feel there is a lack of a personal connection, then the employer is seen as unfair and uncaring.  Staff are more motivated by the emotional need to support their colleagues, than the cognitive appeal of financial rewards.

What should we do?

  1. Limit giving orders and using authority as they have limits as to how well they works (this is especially true of new managers – see this article for more);
  2. Help your employees to engage with both you and their peers.
  3. Provide emotional support.  The greater this is, the greater the team work – with higher levels of trust, robust personal networks, vibrant communities, shared understandings and a sense of equitable participation.  This supports collaboration, communication, commitment, ready access to knowledge and talents, and coherent organisational behaviour – drawing individuals into a group.

Sixth Element – Someone at Work Encourages My Development

What does it mean?

It’s all about serving people well and respecting people for who they are. Great managers actively encourage the development of their direct reports, they look to help employees improve and grow beyond their existing roles and them as their manager.

What is the evidence?

Nearly 40% of employees – that is 2 in every 5 people! – believe that no-one in their company is encouraging their professional development. Plus, statistics indicate employees have an unwritten workplace expectation of having a mentor to help them in their development.  Gallup research indicates employee on-the-job engagement is higher when employees have someone in the company actively encouraging their development.

What should we do?

  1. Use mentors and coaches (internal or external) to help people develop the skills they need to maintain them in new roles, to help them develop the skills they need to get to the next level, whilst helping them achieve traction in their work and associated results.  NB: frequently managers need coaching support most, often they are promoted into a managerial role based on their technical capabilities which will not sustain them in their new role.  Rather, they need to develop the necessary managerial, business and leadership skills to enable them to perform – this, ironically, also helps to retain key managers who are often the ‘engine room’ of the business.
  2. Provide practical, relevant and timely guidance through personal interaction.
  3. Provide the necessary role models help people to see and discover how accomplishments are within reach.

Which of these 3 elements have you used and to what effect?  If you were to rank them which would you use first?  Would you use them with everyone, some of them or with no-one?

Share your ideas, and share the wealth.

In the next blog we look at the next three elements including:

7. At work, my opinions seem to count.
8. The mission or purpose of my company makes me feel my job is important.
9. My associates or fellow employees are committed to doing quality work.

Until then share your thoughts and ideas here, and feel free to share this blog and articles with any colleagues, clients or friends you feel may find this of value.

Share

Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

Engaging & Retaining Staff – Part 2


12 Ways to Engage & Retain Staff

In our previous blog, we looked at why employee engagement is so important and provided an overview of Gallup’s findings from its extensive research.  This was summarised in the following 12 ways to engage employees.  In this blog we look in further detail at the first three ways.

  1. I know what is expected of me at work.
  2. I have the right materials and equipment I need to do my work right.
  3. At work, I have the opportunity to do what I do best every day.

Remember when you first started your current job.  The initial excitement, interest and challenges create a honeymoon period when you are highly engaged.  Like any relationship you cannot maintain the intensity of this, and after six months you begin to become disengaged.  How this happens varies for each of the 12 elements of engagement.  The Gallup Organisation found in Australia that after six months in a new job engagement drops by an average of 62%.  This makes our ability to retain and engage people a key concern, and our need to understand the 12 elements a priority.

In looking at each of these elements we look at three parts:

  1. What does each element mean?
  2. What is the evidence for this?
  3. What should we do to maintain high engagement for each element?

This helps us to identify where we may be weak, identify the priorities, and what actions to utilise from an a la carte menu of actions.

First Element – Knowing What is Expected at Work

What does it mean?

This is about establishing job clarity for your reports. To be a great manager you need to be able to effectively define and communicate what is expected of your direct reports.

What is the evidence?

At best, 50% of employees strongly agree they know exactly what is expected of them on the job – that means the other 50% do not.  The Gallup research indicated that when employees know what is expected of them, their productivity increases anywhere from 5-to-10% and there is a 10-to-20% reduction in on-the-job accidents occurs.

What should we do?

  1. Vision – make sure your employees know where you are going – be crystal clear and consistent in communicating what your vision for the business is.  This provides clarity of purpose for employees in what they do, and makes it easier for them to follow you. You don’t want “I’d like to follow you, but I don’t know where you are going”.
  2. Establish job clarity to combine individual efforts for the greatest cumulative result. This is more than a job description it includes for each employee:
  • Knowing what is expected;
  • Detailed understanding of their role and
  • How it fits in with what everyone else does

3. Focus on outcome-based rewards to ensure they are focused on achievement rather than ‘doing’.  Make sure that staff are not being incentivized to do routine things.

4. A good question to ask is: “I’d like you to introduce yourself, tell us your job, and how doing your job well increases the profits of your company?”. In doing this look at individual and group results, and understand how they drive the achievement of outcomes.

5. Communicate – wrap your conversations with employees around the key aspects of the business’ mission, this gives them insight into how what they do contributes to the bigger picture.

Second Element – Materials & Equipment                  

What does it mean?

A good manager ensures that their reports have the tools and resources they need to get the job done in expert fashion.

What is the evidence?

Only 33% of employees strongly agree they have been given the tools and resources to expertly get their job done – that means 67% have not.  Gallup research indicates employees are more productive and more engaged at work when they have the tools and resources to perform.

The importance of this is best illustrated by when employees do not have the materials and equipment they need to do their work, this increases their frustration and creates anger with the company for placing them in this situation.  In Australia, 71% of employers providing tools and resources such as career management programs say it has improved their ability to attract and retain employees.

What should we do?

  1. Ensure you not only have the right equipment and materials, but that you make regular small improvements in them, as well as modest changes to the process.  These have a multiplicative effect over time.
  2. Giving employees the right materials, equipment and process helps to reduce stress.  People want to do their jobs well, and to be productive – so help them be so.

Improvements in materials and equipment also include higher customer engagement and higher productivity.  The opportunity for effective and efficient feedback from staff on what can be done to improve things also helps to address this area and engage staff.

Third Element – The Opportunity to Do What I Do Best

What does it mean?

You need to be able to match the right person to the right job, or the right job to the right person.  Key questions to consider include:

  • Who would excel in this assignment?
  • What makes someone succeed where others fail?
  • Is it innate, is it learnt, or is it through effort?
  • Can excellence in a certain role be learned?
  • How fast and much can people change?
  • Can people be moulded to fit the needs of the role or not?

What is the evidence?

67% of employees failed to strongly agree they have been given the opportunity to perform their jobs to the best of their ability.  Gallup research indicates when businesses provide employees the opportunities to maximize their natural talents, employee engagement at work increases 33% resulting in significant gains in a company’s productivity.

What should we do?

  1. Don’t believe the notion about human potential that an employee can do anything if he puts his mind to it, can envision it, and tries hard enough or cares enough.  Not true.  (I may want to be a basketball player, but at 5’7″ “you can’t coach height”). Where there may be meaningful differences then remember these are not just opportunities to advance business interests, but also to improve staff’s careers.
  2. Talk with your employees in a positive, passionate way:
  • “So what are your gifts?”
  • “Where are you most happy?”
  • “Where do you think you could be utilised where your skills could be used best? Why?”

3. Establish where your people are in the “flow” – where the employee enjoys the work itself rather than enduring the work just to earn the pay, or to gain an opportunity to be promoted to a better, more fulfilling job.

4. Look at how you can mould the job for each employee around the way they work most naturally and to maximise the optimal experiences that provide “flow” and drive individual and team outcomes.

5. Managers of the best workgroups spend a disproportionate amount of time with their high producers, matching talents to tasks and emphasize individual strengths over seniority in making personnel decisions.

6. Regular staff reviews (every two to three months) on an one-to-one basis, these should include questions such as:

  • What do you do best?
  • What do you like about your job?
  • Where do you think you have greatest impact? etcetera

7. Creating an effective team is about taking the team’s collective abilities and utilizing them to achieve the results and outcomes, not how well individuals perform.

Which of these 3 elements have you used and to what effect?  If you were to rank them which would you use first?  Would you use them with everyone, some of them or with no-one?

Share your ideas, and share the wealth.

In the next blog we look at the next three elements including:

4. In the last seven days, I have received recognition or praise for doing good work.

5. My supervisor, or someone at work, seems to care about me as a person.

6. There is someone at work who encourages my development.

Until then share your thoughts and ideas here, and feel free to share this blog and articles with any colleagues, clients or friends you feel may find this of value.

Share the knowledge, share the wealth!

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