{"id":999,"date":"2020-10-22T23:30:40","date_gmt":"2020-10-23T06:30:40","guid":{"rendered":"http:\/\/themanwhosoldtheweb.com\/blog\/?p=999"},"modified":"2020-10-22T23:30:42","modified_gmt":"2020-10-23T06:30:42","slug":"transforming-employee-engagement-into-a-competitive-advantage-heres-how","status":"publish","type":"post","link":"http:\/\/themanwhosoldtheweb.com\/blog\/2020\/10\/transforming-employee-engagement-into-a-competitive-advantage-heres-how\/","title":{"rendered":"Transforming Employee Engagement into a Competitive Advantage? Here&#8217;s How"},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"alignright is-resized\"><a href=\"https:\/\/storage.ning.com\/topology\/rest\/1.0\/file\/get\/8065192862?profile=original\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/storage.ning.com\/topology\/rest\/1.0\/file\/get\/8065192862?profile=RESIZE_710x\" alt=\"\" width=\"284\" height=\"192\" \/><\/a><\/figure><\/div>\n\n\n\n<p>Organizations typically focus on&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/flevy.com\/browse\/stream\/customer-centric-design\" target=\"_blank\">Customer-centric Design<\/a>&nbsp;in their&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/flevy.com\/strategic-planning\" target=\"_blank\">Strategic Planning<\/a>&nbsp;and overlook the critical driver of&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/flevy.com\/browse\/stream\/performance-management\" target=\"_blank\">Performance<\/a>,&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/flevy.com\/business-toolkit\/growth-strategy-growth\" target=\"_blank\">Growth<\/a>, and&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/flevy.com\/operational-excellence\" target=\"_blank\">Operational Excellence<\/a>\u2014their employees.&nbsp; With cut-throat competition now the norm the realization has become clearer that employees are:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The face of the business and create lasting\u2014or perishing\u2014brand impression.<\/li><li>Sources of innovation and organizational knowledge.<\/li><li>Representation of the company\u2019s service philosophy.<\/li><li>Expected to live by its&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/flevy.com\/browse\/stream\/culture\" target=\"_blank\">Organizational Culture<\/a>&nbsp;and values.<\/li><\/ul>\n\n\n\n<p><a rel=\"noreferrer noopener\" href=\"https:\/\/flevy.com\/business-toolkit\/employee-engagement\" target=\"_blank\">Employee Engagement<\/a>&nbsp;has emerged as one of the significant pillars on which the&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/flevy.com\/business-toolkit\/competitive-advantage\" target=\"_blank\">Competitive Advantage<\/a>, Productivity, and Growth of an organization rests. &nbsp;What, exactly, does it mean when an employee is engaged?&nbsp; Employee Engagement, over the years, has been thought of in terms of:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Personal engagement with the organization.<\/li><li>Focus on performance of assigned work.<\/li><li>Worker burnout.<\/li><li>Basic needs (meaningful work, safe workplace, abundant resources).<\/li><li>Attention on Cognitive, Emotional and Behavioral components related to an individual\u2019s performance.<\/li><\/ul>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>Kumar and Pansari\u2019s 2015 study define Employee Engagement as:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>&#8220;a multidimensional construct that comprises all of the different facets of the attitudes and behaviors of employees towards the organization&#8221;.<\/p><\/blockquote>\n\n\n\n<p>The multidimensional construct of Employee Engagement has been synthesized into the following 5 components (or dimensions).<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Employee Satisfaction<\/li><li>Employee Identification<\/li><li>Employee Commitment<\/li><li>Employee Loyalty<\/li><li>Employee Performance<\/li><\/ol>\n\n\n\n<p>The&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/flevy.com\/browse\/flevypro\/5-dimensions-of-employee-engagement-5272\" target=\"_blank\">5 dimensions of Employee Engagement<\/a>&nbsp;have been found to have a direct correlation with high profitability, as substantiated by a number of research studies:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><a href=\"https:\/\/flevy.com\/browse\/flevypro\/5-dimensions-of-employee-engagement-5272\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" src=\"https:\/\/flevy.com\/blog\/wp-content\/uploads\/2020\/10\/5-Dimensions-of-EE-Slide-deck-image.png\" alt=\"\" class=\"wp-image-7507\" \/><\/a><\/figure><\/div>\n\n\n\n<p>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.&nbsp; After controlling other relevant factors\u2014i.e., GDP level, marketing costs, nature of business, and type of goods, the study found:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Highest profitability growth\u201410% to 15%\u2014in companies with highly engaged employees.<\/li><li>Lowest level of profitability growth\u20140% to 1%\u2014in companies with disengaged employees.<\/li><\/ul>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>The differences in performance between engaged and actively disengaged work units revealed:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Top half Employee Engagement scores nearly doubled the odds of success compared with those in the bottom half.<\/li><li>Companies with engaged workforces have higher earnings per share (EPS).<\/li><\/ul>\n\n\n\n<p>These 5 dimensions become the base for measuring Employee Engagement in a meaningful manner that permits managers to identify areas of improvement.&nbsp; To assess an organization\u2019s current status of Employee Engagement, a measurement system is needed that includes:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Metrics for each component of Employee Engagement.<\/li><li>A scale for scoring metrics in each component.<\/li><li>A comprehensive scorecard that pulls everything together.<\/li><\/ul>\n\n\n\n<p>Let us delve a little deeper into the first 2 dimensions of Employee Engagement.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Employee Satisfaction<\/h3>\n\n\n\n<p><strong>Definition<\/strong><\/p>\n\n\n\n<p>Employee Satisfaction is the positive reaction employees have to their overall job circumstances, including their supervisors, pay and coworkers.<\/p>\n\n\n\n<p><strong>Details<\/strong><\/p>\n\n\n\n<p>When employees are satisfied, they tend to be:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Committed to their work.<\/li><li>Less absent and more productive in terms of quality of goods and services.<\/li><li>Connected with the organization\u2019s values and goals.<\/li><li>Perceptive about being a part of the organization.<\/li><\/ul>\n\n\n\n<p><strong>Metrics<\/strong><\/p>\n\n\n\n<p>The 5 metrics that gauge Employee Engagement in terms of Employee Satisfaction include:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Receiving recognition for a job.<\/li><li>Feeling close to people at work.<\/li><li>Feeling good about working at the organization.<\/li><li>Feeling secure about the job.<\/li><li>Believing that the management is concerned about employees.<\/li><\/ol>\n\n\n\n<p>We take a look at another dimension central in significance.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Employee Commitment<\/h3>\n\n\n\n<p><strong>Definition<\/strong><\/p>\n\n\n\n<p>Signifies what motivates the employees to do more than what\u2019s in their job descriptions.<\/p>\n\n\n\n<p><strong>Details<\/strong><\/p>\n\n\n\n<p>Employee Commitment is much higher for the employees who identify with the organization.&nbsp; This element:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Develops over time and is an outcome of shared experiences.<\/li><li>Is often an antecedent of loyalty.<\/li><li>Induces employees to guard the organization\u2019s secrets.<\/li><li>Pushes employees to work for organization\u2019s best interests.<\/li><\/ul>\n\n\n\n<p>Research has found that employees with the highest levels of commitment:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Perform 20% better.<\/li><li>Are 87% less likely to leave the organization.<\/li><\/ul>\n\n\n\n<p><strong>Metrics<\/strong><\/p>\n\n\n\n<p>The 3 metrics that gauge the Employee Commitment dimension of Employee Engagement include:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Commitment to deliver the brand promise along with knowledge of the brand.<\/li><li>Very committed to delivering the brand promise.<\/li><li>Feels like the organization has a great deal of personal meaning.<\/li><\/ol>\n\n\n\n<p>Interested in learning more about these&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/flevy.com\/browse\/flevypro\/5-dimensions-of-employee-engagement-5272\" target=\"_blank\">foundational pillars to Employee Engagement<\/a>? You&nbsp;can&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/flevy.com\/browse\/flevypro\/5-dimensions-of-employee-engagement-5272\" target=\"_blank\">download&nbsp;an editable PowerPoint on&nbsp;<strong>5 Dimensions of Employee Engagement<\/strong>&nbsp;here<\/a>&nbsp;on the&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/flevy.com\/browse\" target=\"_blank\">Flevy documents marketplace<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Are you a Management Consultant?<\/strong><\/h3>\n\n\n\n<p>You can download this and hundreds of other&nbsp;<a rel=\"noreferrer noopener\" href=\"http:\/\/flevy.com\/pro\/library\/frameworks\" target=\"_blank\">consulting frameworks<\/a>&nbsp;and&nbsp;<a rel=\"noreferrer noopener\" href=\"http:\/\/flevy.com\/pro\/library\/consulting\" target=\"_blank\">consulting training guides<\/a>&nbsp;from the&nbsp;<a rel=\"noreferrer noopener\" href=\"http:\/\/flevy.com\/pro\/library\" target=\"_blank\">FlevyPro library<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Organizations typically focus on&nbsp;Customer-centric Design&nbsp;in their&nbsp;Strategic Planning&nbsp;and overlook the critical driver of&nbsp;Performance,&nbsp;Growth, and&nbsp;Operational Excellence\u2014their employees.&nbsp; With cut-throat competition now the norm the realization has become clearer that employees are: The face of the business and create lasting\u2014or perishing\u2014brand impression. Sources of innovation and organizational knowledge. Representation of the company\u2019s service philosophy. Expected to live by [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":997,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[724,725,323,465,726,733,727,728,729,730,731,293,732,444,219,734,395],"class_list":["post-999","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-5-dimensions","tag-brand-impression","tag-competitive-advantage","tag-customer-centric-design","tag-dimensions-of-employee-engagement","tag-employee-commitment","tag-employee-engagement","tag-employee-identification","tag-employee-loyalty","tag-employee-performance","tag-employee-satisfaction","tag-growth","tag-metrics","tag-operational-excellence","tag-organizational-culture","tag-performance","tag-productivity"],"_links":{"self":[{"href":"http:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/posts\/999","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"http:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/comments?post=999"}],"version-history":[{"count":3,"href":"http:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/posts\/999\/revisions"}],"predecessor-version":[{"id":1002,"href":"http:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/posts\/999\/revisions\/1002"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/media\/997"}],"wp:attachment":[{"href":"http:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/media?parent=999"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/categories?post=999"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/tags?post=999"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}