customer satisfaction

Relating Employee Engagement to Company Performance

This is the final post in our series on employee engagement.  We hope you’ve found the posts helpful and insightful.

We know Employee Engagement is a hot topic in the business community, and we think it’s more than just a passing fad.  There are some fundamental things in the concept of employee engagement that can help you save money and make more of it.

If you’ve been following this series, then you’ll know we posted articles about each of the 12 questions in Gallup’s Q12 employee engagement assessment.  That can be overwhelming.

To help make it easier to understand, we created an infographic to help illustrate the relationship between the 12 elements of employee engagement and four key dimensions of business performance.

The vertical axis is composed of the 12 Gallup questions. Gallup organized these into groupings.

Employee Engagement, Productivity, Customer Satisfaction, Turnover, Employee Turnover, Profitability, Performance

The bold colors indicate Gallup determined there was a high degree of correlation between dimensions of employee engagement and measures of company performance. We added lighter-shaded colors where we felt there were other intersections between engagement and performance that merited consideration. Click on the infographic to see a larger version that’s easier to read.

Base Camp represented the very basics of employee engagement – providing employees the information and tools to do their jobs.

Camp One was grouped around questions that reflected what employees could give back to their employers.

Camp 2 deals with questions about employees having a sense of belonging.

The Summit is comparable to the peak of Maslov’s hierarchy of needs: self-actualization. In fact, the whole Gallup Q12 has many parallels with Maslov’s model in that it is essentially a spectrum from basic needs (to do the job right) to more emotional or intellectual needs that make the job resonate with the employee.

The horizontal axis is composed of four dimensions that measure success in an organization: Productivity, Profitability, Customer Satisfaction and Employee Turnover.

According to Gallup’s research, Employee turnover is really driven by the first six questions.  If you don’t do the basics, you will lose employees.  We included question 12 as well, because we feel employees will leave when they no longer see opportunities to grow in an organization. It may be a bit of a gray area, because it may be something beyond the control of the company.

Productivity is influenced by all but 2 of the 12 factors. What seems to be important is having the right tools/technology, recognition, feedback and having a sense of belonging.

Profitability appears to be impacted by management style. When employees have clear direction and feel they have support, perhaps they’re more willing to take calculated risks that positively impact the bottom line.  Also, when they have opportunities to grow and develop, they can bring new skills to the organization that can help improve processes and grow profitability.  We added in “right tools” because we felt, intuitively, that technology contributes immediately to productivity, but ultimately to productivity.

When employees perceive themselves as treated fairly, Customer Satisfaction is positively affected. Sometimes employees have to go outside procedures to ensure customers are looked after and, when they do so, and feel they will be supported for doing what’s right for the customer, they’ll continue to take those risks. We added “opinions” because we feel it’s an indicator the company is paying more than lip service to employee ideas. This could include input that some company procedures do not support customer satisfaction.

What You Can Do

If you really want to assess the level of engagement among your employees, the Gallup Q12 is a very simple tool to administer.  You might want to consider bringing in a consultant to oversee the project and to act as a buffer between employees and management to help ensure employees open up.

What is your management team saying are the main issues in the organization?

Use the dimensions from the Q12 to explore where you might be lacking and where you can implement some changes.

Make a point of regularly getting out of your office to connect with employees and listen to their views.  They’ll be more likely to come to you when they see problems and you may find they have some valuable suggestions to offer. Face-to-Face interaction is so much more effective than the traditional suggestion box.

 

As we said last week, we’ll be compiling all the posts in this series into a White Paper so you can have the entire series in a single document.  Watch your email to find out when it will be available.  Like all our White Papers, they’re complimentary.