Category Archives: employee engagement

Most Read Stories on HREOnline last week

See what you may have missed:

* Checking in With the Next Generation

Peter Cappelli ‘s latest Talent Management column looks at Wharton’s annual mid-term exam, which explores students’ view of their last job and the way they were managed. In most cases, management was lacking. Feedback was limited or nonexistent, and bonuses — instead of resulting in engagement and motivation — often prompted these high-potential candidates to quit or slack off. 

* Time to Re-Engage

Top businesses for HR practices — according to an exclusive recalibration of Fortune’s “Most Admired Companies” list — are taking employee engagement very seriously in this economy. (A PDF of the Top 50 Companies is here.)

E-Learning Still Trending Up

Companies continue to adopt technology-based training for employees as expenditures in training and development decreased overall last year. At the same time, the expenditure per employee actually remained stable, because the workforce was smaller.

 * Pinpointing Leadership Qualities

Social networking is changing the way HR leaders think of legal risks and recruiting opportunities, writes Susan R. Meisinger in her latest HR Leadership column. It also should make them think about the way they select high-potential candidates for leadership-development programs.

* Talking up Flexibility

Work/life balance is drawing more attention from the White House and other policymakers as research continues to show that the issue has an impact on the decisions of working families. A recent conference brought together representatives from the administration, military, academia and corporate America to attempt to drive the discussion onward.

Most Read Stories on HREOnline™ Last Week

Here’s what our readers found most interesting on HREOnline™ last week:

 Time to Re-Engage: Top businesses for HR practices — according to an exclusive recalibration of Fortune‘s “Most Admired Companies” list — are taking employee engagement very seriously in this economy.

Pinpointing Leadership Qualities: Susan Meisinger’s latest column on the way social networking is changing the way HR leaders think of legal risks or recruiting opportunities. It also should make them think about the way they select high-potential candidates for leadership-development programs.

Modifying Preconceived Notions: A study suggests millennials are happier with their bosses than many workplace observers thought; happier than baby boomers or Gen Xers. There could be many reasons for the phenomenon, experts say.

Ensuring Parity: The most significant points about complying with the Mental Health Parity Act and an update on the COBRA benefits — as modified by the economic-stimulus act — are summarized in this month’s Legal Clinic.

HR Costs Rebounding? A new report on human-capital effectiveness finds HR costs for organizations are rebounding to pre-recession levels. But does that mean the war for talent is back on? 

Survey Shows Workers Don’t Trust their DB Plans

The economy may be picking up some, but you wouldn’t know it from the latest Mercer Workplace Survey. Issued by Mercer’s outsourcing business, it found only 19 percent of participants with employer-sponsored defined-benefit plans are very confident that they will receive income from their pension plan in retirement. That figure is down from 24 percent in 2008.

Conversely, just under half of the participants are “somewhat confident” (35 percent) or “not at all confident” (11 percent) that they will receive some DB pension income. (The link in the paragraph above, by the way, explains the study a little and includes another link at the top right of the page to the complete and free PDF download).

Andrew Yerre, Mercer’s U.S. business leader, says the findings “should cause concern for any plan sponsor who offers a pension plan.”

“Clearly,” he says, the past two years of economic volatility have caused participants to become very anxious about all aspects of their retirement readiness, including pension benefits.”

Yerre says the anxiety points to a general lack of knowledge about these plans by employees. “As we know,” he says, “these types of plans can be expensive and complicated to offer and administer, and the fact that participants have such little confidence may point to a lack of understanding, trust and engagement.”

He says the findings “further suggest that DB-plan sponsors need to better educate participants around their entire retirement-plan offerings. “There is a real strategic opportunity,” he says, “for plan sponsors to not just promote the existence of DB plans, but to also highlight their long-term value as part of a total rewards and comprehensive retirement-planning program that could include a 401(k), IRA or other investments.”

Strange, for all the stories we’ve been writing in the last few years about employers implementing better and more focused communication strategies around their retirement offerings, I guess this survey suggests there are still a whole lot out there that aren’t quite there yet. Hey, no time like the present, considering the “win-win” piece to it all.

The Eternal Vacation

Better get ready for an end-of-Labor-Day-vacation “purging” of your workforce. According to a survey published in the Memphis Business Journal, 40 percent of U.S. professionals are thinking about quitting their jobs after their summer vacations.

The survey, provided by workplace supplier Regus, finds workers are tired of not being promoted, bosses that don’t share company goals and being overworked. “As workers pack up their swimsuits this summer, they are more likely to dwell on the pros and cons of the job that is waiting for them at home,” Sande Golgart, Regus’ regional vice president, is quoted as saying in the Business Journal story.

The piece also includes another recent report from the U.S. Bureau of Labor Statistics showing productivity dropped at an annual rate of 0.9 percent during the second quarter of 2010.

Drs. Brent D. Peterson and Gaylan Nielson, co-founders of The Work Itself Group based in Salt Lake City, say these stats point to the immense drain on the economy due to large numbers of employees doing 50 percent “fake work,” defined as having no alignment with business strategy.

In a study they did in conjunction with Franklin/Covey, they cite a recent Gallup poll showing the cost of disengaged workers is estimated at $300 billion per year. They also list findings that 70 percent of employees are unable to name a single department/company goal or strategy and 50 percent of work done at the workplace does not align with a company’s vision or goals.

Not the greatest fodder for a Labor Day pep rally.

Training, the New Engagement/Retention Tool

Interesting and kind of surprising release here from Office Team citing a much larger number of HR professionals concerned about training and developing employees than those concerned about losing the top-performing ones.

Goes against much of what we’ve been hearing, that HR leaders’ top worries heading out of the recession and into the recovery are centered around keeping disgruntled employees engaged and retaining the top talent that’s already poised to leave.

But the release also includes a link to a recent Robert Half study confirming what the Office Team respondents seem to be “getting” — that post-recession employees are looking to employers more for their help in making them more marketable than as havens of job security. Makes sense that a shaky economy would have instilled in them this new sentiment.

In a survey we just conducted at HRE, which is at the heart of our upcoming Sept. 2 cover story on what’s keeping HR executives up at night, 45 percent of the 802 HR executives who responded said their most significant challenge today is the need to keep employees engaged and productive, followed by retaining key talent as the economy recovers (34 percent) and the importance of developing leaders (33 percent). In that survey, and in our story, development initiatives were cited as key tools for boosting engagement.

I think what these findings all underscore is that training and development — often relegated to the bottom rung of corporate expenditures during weak economies — now appear to be employers’ top engagement tools, topping any other morale-booster, or employee survey, or communication initiative.

Indeed, training and developing recession-weary workers — not just for your sake, but for theirs — appears to speak volumes.

A Glass Half Empty

Not much good news in the Business Barometer survey released today by The Corporate Executive Board. It reflects a drop in the optimism of HR executives — and other senior corporate leaders as well.

According to the survey, HR executives have dropped their expectations — from Q2 — of employee engagement (32 percent think employees will be less engaged) and anticipate higher turnover (54 percent compared to 39 percent in Q2). 

Nearly two-thirds (64 percent) of  HR leaders expect a moderate increase of one-to-four percent in average labor costs this year, while four in 10 (42 percent) expect average health benefits to increase by one-to-nine percent, with 18 percent expecting a higher than 10 percent increase.

The survey polls more than 440 senior executives in six functional business roles in North America and Europe across 33 industries.

It found that the executives expect higher revenues for their companies this year (68 percent), but fewer are optimistic about their respective industries’ growth prospects (only 50 percent say they expect their industries to grow). A majority are anxious about rising cost pressures (68 percent).

Studying an Attitudinal-Economic Relationship

I came across this recent blog post I thought I’d share. Pretty interesting work being done by Jeffrey Saltzman, CEO at OrgVitality and an affiliated fellow at the Center for Leadership Studies at the School of Management at Binghamton University in Vestal, N.Y.

He establishes some pretty compelling arguments, with research to back it up, for there being a correlation between organizational performance and the performance of a country or region. (He calls his index for this regional-performance concept Employee Confidence.)

What’s more, he asserts both those performance readings can be used predictively. He suggests some interesting linkages between what he calls “citizenry attitudes” and unemployment. He says the attitude quotient can be used to predict future unemployment figures of a region — likewise, employee attitudes at a company can be used to predict future organizational performance.

Two other conclusions of his research, which you’ll simply have to link to to see how he formed:

  • People tend to be more positive when working productively and on the whole would rather be working harder than not having enough to do. When they do not have enough to do, either at their employer or when unemployed, there is a tendency to feel that their contribution is not valued either by their employer or society.
  • The notion that creating societies with strong social safety nets, such as unemployment insurance, diminishes the desire to work does not bear out.
  •  

    Not sure what a senior HR leader can do with all this information, but I have a high degree of “blogger confidence” they’ll (you’ll) find it intriguing.

    Escape from the Job

    You have to know most employees are retention risks when the antics of Jet Blue’s (former?) air flight attendant Steven Slater receive such acclaim.

    While your employees probably won’t have Facebook fans numbering in the millions or see supporters creating a legal defense fund — hopefully, that won’t be necessary! — HR leaders would be foolish not to think that at least some of their workers are dreaming of leaving their jobs in similarly brazen fashion.

    According to a recent HREOnline™ story, Top Performers Begin Their Flight, employers “need to know what their workers are thinking and what they want from their careers — and then align these with the direction of the business.”

    So says Bram Lowsky of Right Management. That’s hardly rocket science, but airline companies, and probably most companies, seem to be unaware — or uncaring — that employees are fed up with work conditions.

    With survey after survey showing that workers are fed up and just waiting for a chance to move on, the time is shrinking for HR executives to take the steps necessary to re-engage desired workers.

    Raising comp is a common method, but  pay alone won’t be sufficient. In this HREOnline™ story, Tom McMullen of Hay Group advises HR leaders to focus on “their ‘total’ reward programs by offering clearer career paths, more meaningful work experiences, improved work climates, global mobility and targeted development in addition to increased monetary awards.”

    Or watch employees jump ship — albeit not as dramatically as Slater!

    Vacations are Good for You

    OK, a bit of soft news, but worth sharing: This recent release from the University of the Rockies suggests week-long vacations aren’t long enough for optimal benefits to occur — for both employee and employer.

    The study — conducted at the Colorado Springs, Colo., graduate school that specializes in master’s and doctorate degrees in psychology — maintains the benefits of vacation length peak at about 10 days, which supports previous research findings that 10 to 14 days of vacation may be the optimal length.

    What are the benefits to taking, or granting, a vacation of optimal length, you ask? According to this release, an increase in job satisfaction, a reduction of and protection against job stress and burnout, and an increase in professional well-being (which, of course, boosts employee engagement and morale and, in turn, boosts customer service, your employer brand, the list goes on).

    I’ll be interested to see if anyone cares to comment on this, but it’ll have to wait awhile. I leave Thursday for vacation. I’ll be gone 10 days.

    Maligning vs. Pitying Micromanagers

    I noticed a couple of mentions over the last few days about the evils of micromanagement and how this horrible and uninhibited trait can impact a workplace.

    One, from Beeson Consulting, warns that this obsession with every little thing that every single person under you is doing can, and will, prevent you from becoming the senior leader you’re trying to be. “Managers who are perceived by their troops as meddlesome micromanagers,” it reads, “are probably, in turn, viewed by senior executives as not having the bandwidth to step up to higher-level positions and handle greater responsibilities.”

    Another, by Suzanne Lucas, a.k.a. the Evil HR Lady, questions why more companies don’t just fire the poor (anti-)slobs. The reason, she suggests, is that they’re still stupidly promoting non-leadership behaviors such as “attention to detail” and failing to promote (literally) their “self-motivated, results-oriented” employees.

    The key for those suffering from this malady is to learn to delegate, obviously. The key for companies, writes Lucas, lies in implementing a results-oriented workplace environment (ROWE), where “managers let people do their work without hovering.” (We’re actually focusing on that very approach in Human Resource Executive®‘s August cover story.)

    Personally, I’m wondering if more companies shouldn’t be training and coaching their micromanagers away from their addictions, or maybe directing them to their employee-assistance programs … or maybe we should all consider them disabled and in a protected class??!!

    OK, I jest … well, mostly. As a parent, wife and manager, I’m here to tell you it’s damn hard to break out of the “If I want it done right, I have to do it myself” cycle. Or the killer mind-set of “If I don’t ask him about his progress, he won’t make any.” Thankfully, I’m getting better. But for some, it might take a 12-step program to overcome.