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Employee Engagement

Are you engaging your employees or is a revolution brewing?

by Sheila Margolis on February 16, 2011

The fall of Mubarak in Egypt was a result of the unrelenting protests by masses of citizens in their efforts to seek liberty and the ability to live their lives to the fullest. This autocratic government characterized by corruption and lack of transparency, denied its citizenry the ability to individually prosper. Using social networking and other technologies, citizens amassed in Tahrir Square to voice their grievances and achieve revolutionary change.

Well, do you sometimes worry if your employees are congregating in the break room or conversing on Twitter and Facebook about similar concerns in your company? You may not be a 30-​​year ruler, but have you stopped to consider whether your workplace culture nurtures your employees or stifles them?

If your workplace lacks the universal Priorities that promote the well-​​being of your workers, then you may have a revolt of your own or even worse, employees may continue going through the motions while feeling totally disengaged.

So what are these universal Priorities that build a culture of highly engaged and motivated employees? Focus on these six values to avoid building unrest in your company:

  1. Fit: Are you hiring employees who are a fit with the culture of the organization—its purpose and principles? Are employees in jobs that are a fit? Do they feel their work is significant, challenging and the best use of their abilities? Do tasks build on the employee’s strengths?
  2. Trust: Do employees consider the workplace to be a trusting workplace where they feel leaders have integrity–they’re honest, respected, and fair?
  3. Caring: Is the workplace a caring workplace? Does it feel like family? Do managers care about workers? Do they encourage collaboration and teamwork? Do employees have friends at work?
  4. Openness: Is there ongoing, open, two-​​way communication where leaders and managers listen? Is information freely shared?
  5. Development: Does the company support individual development? Do employees get meaningful and positive feedback? Are employees growing in ways that nurture achievement and mastery?
  6. Ownership: Do employees feel like owners? Do they have autonomy where they participate in decision-​​making, are responsible, and have flexibility in how they achieve their goals?

Work is more than an economic transaction; addressing the social and human side of the worker is key to achieving optimal performance. These universal Priorities are not unique values, but when everyone in your organization lives by these values, it produces an enriching and high-​​performing workplace that stimulates exceptional efforts and heightened loyalty. Organizations that practice these universal Priorities create workplaces of excellence.

Now is the time to build a workplace that energizes the human spirit while enhancing productivity and business success. Incorporate each of the universal Priorities in your workplace and prevent a revolution or a growing apathy that kills a company through a slow but steady decline. When employees’ human needs are met, they are more engaged.

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What is the optimal group size for decision-​​making?

by Sheila Margolis on January 24, 2011

Much of work today is done in teams. Even in MBA programs, the team is the structure used to meet class goals. So what is the optimal size for effective decision-​​making? It appears that a recent Harvard Business Review stat published that research by Marcia W. Blenko, Michael C. Mankins, and Paul Rogers indicates that seven (7) is the optimal size. Yet much of the research I’ve found says that number is a bit too high.

First, many studies target an “odd” number as the first criteria for group size. According to one resource:

This (an odd number) prevents ties and improves the odds of making a correct decision when using majority rules.

Even-​​numbered groups can make decisions, but the decision-​​making can take more time.

Getting back to the actual number, think about the benefits of a large group. The more people you have, theoretically, the better chance you have of getting the best information to make the best decision. Research has shown that collective intelligence does exist. But, according to research reported in Science, the October 2010 issue  by authors Anita Williams Woolley, Christopher F. Chabris, Alex Pentland, Nada Hashmi and Thomas W. Malone:

This “c factor” (the group’s collective intelligence) is not strongly correlated with the average or maximum individual intelligence of group members but is correlated with the average social sensitivity of group members, the equality in distribution of conversational turn-​​taking, and the proportion of females in the group.

So it looks like social sensitivity–possibly a more common attribute to females–facilitates group decision-​​making. Emotional intelligence and what some consider the soft stuff is important to the functioning of teams. So getting back to the optimal group size–what’s the best number? In what size, can you have the equality in distribution of conversation turn-​​taking as the research indicates is an important feature of an effective group?

If you measure the number of possible social interactions with varying group sizes, the optimal group size appears to be five (5). According to a resource on applications of probability and statistics:

As can be seen by the figure below, the number of possible social interactions begins to explode in groups with more than 5 people.

Research by Hackman and Vidmar (1970) on optimum group size for member satisfaction showed a similar outcome. They composed groups that ranged in size from 2–7 members to assess the impact of size on group process and performance for various kinds of tasks. After the groups had finished their work, they asked participants independently to indicate the extent of their agreement with the following two questions: Question #1– This group was too small for best results on the task it was trying to do. Question #2– This group was too large for best results on the task it was trying to do. The chart below indicates the average answers to these two questions on the same graph. Not surprisingly, few people in the dyad thought it was too large and few in the 7-​​person group thought it was too small. What is noteworthy is where the two lines crossed. They dropped a perpendicular line from that point to the horizontal axis and discovered that the optimum group size was 4.6 members.

So if you’re looking for the best size for a team, consider an odd number close to five. But remember the number is just one factor. Social sensitivity and being able to read emotions are attributes of successful team decision making. Consider the number and consider the members. Maybe they’ll need a little training in empathy and being sensitive to others as well as having a culture that allows all to fully participate. Sounds like the right-​​sized team that practices many of the principles of employee engagement can be the most effective.

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The importance of employee morale when using Groupon or other coupon promotions

by Sheila Margolis on January 23, 2011

Does your company use Groupon or other online promotions to pull customers to your business? And does it work?

An interesting article in the Jan.-Feb. 2011 issue of Harvard Business Review by Utpal M. Dholakia of Rice University’s Jones Graduate School of Business, suggests that when companies offer customers deep discounts to drive traffic, unhappy employees can damage the customer experience–and the promotion becomes a losing proposition for the company. Although in theory, the promotion is expected to be an opportunity to increase business and bring in new customers, in practice, deal-​​seekers often only purchase the deal, are not willing to buy extras, and when they are faced with overworked employees–exhausted from the increased traffic–they don’t want to come back.

Employees may feel overworked and may also disagree with the company even using the coupon program. And when the employees are unhappy, the customer experience will be affected. As the article states:

Your employees stand between your product and your customers, and ultimately they’re the ones who will make a promotion succeed or fail.

So before you use a coupon program to bring in more customers, take the time to include the employees in the decision making and planning process. Get employee input on how to make the experience a success. Through employee participation, you can achieve greater employee ownership and a better experience for the customer.

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Make 2011 the year of great relationships–how that applies to the work setting

by Sheila Margolis on December 28, 2010

In the Wall Street Journal article “Making 2011 the Year of Great Relationships,” Elizabeth Bernstein states:

Made any New Year’s resolutions yet? Here’s an idea: Focus on the state of your relationships instead of the state of your abs.

Increasingly, experts have been telling us how important social bonds are to well-​​being, affecting everything from how our brains process information to how our bodies respond to stress. People with strong connections to others may live longer. The quality of our relationships is the single biggest predictor of our happiness.

Research also shows that relationships–the social aspect of work–is a key component of building employee engagement. Employees are more connected to their workplace when they work with people who they genuinely care about as individuals. Sincere interest, caring and support by senior management, supervisors, and colleagues nurtures a sense of belonging and community. Relationships can be a powerful motivator.

Is your workplace one where people feel that sense of community? Do you sometimes describe your workplace as a family? As one employee stated: “It feels like family. It’s just a closeness. Here I feel like I am somebody. People know me. We take care of each other. We don’t just discuss work; we talk about life. We have a very caring environment.”

Having positive social connections helps people perform better on the job because they listen to each other and are more open.

As David Rock explains: “When you connect people together, you reduce social threat.” Individuals can be a friend or a foe. Collaboration hits walls when others are seen as foes rather than friends.

Building relationships can reduce silos and contribute to a more collaborative and productive workplace.

Relationships must be strengthened between leaders, managers and supervisors and the employees they lead and manage. The emotional connection between employees and company leaders impacts how employees feel about the company and their job. As people often state: “Engagement flows downhill or it does not flow at all.”

In the Towers Watson 2010 Global Workforce Study, 67% of employees want senior leaders to care about the well-​​being of others, but only 38% feel their senior leaders are caring.

Do leaders and managers know their employees? Are leaders genuinely interested in their employees’ well being? Having empathetic, caring managers who take the time to get to know employees—their strengths, aspirations, how they work best, how they learn, what inspires them and their challenges–promotes a more engaged employee.

As one employee described his relationship with his supervisor: “There’s always somebody you can talk to if you have a problem, whether it be personal or company-​​related. There’s nothing he won’t help.”

Engaged workers have supervisors who genuinely care about them. Think about the supervisors at your workplace:

  • Do they take time to guide employees?
  • Do they remove obstacles to optimize worker performance?
  • Do they provide tools, resources and equipment necessary to do the job?
  • Do they match workers’ individual preferences and strengths with tasks? Do they figure out what everyone does best and find ways for them to shine?
  • Do they inspire workers to do their best work every day?

And relationships must exist between employees. Engaged workers have friends at work. Collaborative relationships—working with people who care about each other and help each other succeed– are the key to business success. Relationships and caring about each other promotes a sense of community and nurtures enjoyment.

Do employees work in teams? Having evolved from hunter-​​gatherer bands, our orientation is to the smaller, more immediate group. In teams, relationships can be nurtured. People are more motivated in highly cohesive teams. Each member’s desire to be a member of the team is much stronger than their desire to leave. The members of a cohesive team each have a personal desire to see the continued existence and success of the team. Because they care about each other, they are willing to put forth extra effort.The younger Gen Y worker is typically comfortable being a team player.

Social connections where people feel others are friends at work creates positive feelings among workers which nurtures dedication and brings out the best in people.

Constructing a thriving workplace culture where employees are connected to their workplace requires understanding that employee engagement is a human endeavor. When employees have relationships and a genuine caring for each other, a company and its employees prosper. So let 2011 be the year of great relationships–not only in your personal life but also in your work-​​life. Quality relationships at work are key to business success.

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Is higher pay the best way to retain employees at Google?

by Sheila Margolis on November 10, 2010

Google has been losing talent to Facebook and other competitors so to retain talent, they’ve decided to give everyone–executives and staff–a 10% raise, effective January 1, 2011.  According to a Wall Street Journal report,

Roughly 10% of Facebook’s employees are Google veterans, and other Silicon Valley companies have aggressively poached employees from the Internet giant.

An internal memo published by Business Insider that was sent by Google CEO Eric Schmidt to employees states:

We’ve heard from your feedback on Googlegeist and other surveys that salary is more important to you than any other component of pay (i.e., bonus and equity). To address that, we’re moving a portion of your bonus into your base salary, so now it’s income you can count on, every time you get your paycheck. And one last thing…today we’re announcing that everyone will get a holiday cash bonus, too.

The memo also says:

Googlers, you are what makes this company great, and our goal here is to recognize you for your contribution, in a way that’s meaningful to you.

Retaining talent is essential for companies and as Eric Schmidt confirms–the actions that a leader takes to promote retention must be ones that are meaningful to the employee. The solution of throwing money at people is not a bad problem for employees. But research shows that if pay meets two qualities, it no longer serves as a retention tool:

  1. Pay must be fair. Pay must be fair relative to what others in similar positions in the organization and outside the organization are receiving. If the pay is fair, a higher pay does not tend to be what most people are looking for to be happy at work.
  2. Pay must be adequate. If an employee is able to live as he or she wants to live with the pay received, then an increase in pay will not typically be a meaningful retention tool.

When pay is both fair and adequate, leaders and managers must look to other areas to promote retention. For example:

  • FIT: Is the organization a fit for the employee? Is the organization’s contribution meaningful to the employee? And are the values of the workplace in harmony with the employee’s values?
  • TRUST: Does the employee have a trusting workplace that exhibits fairness, respect, integrity and competence?
  • CARING: Is the work setting a caring workplace where the employee has meaningful relationships, a sense of belonging and camaraderie?
  • COMMUNICATION: Does the employee feel the workplace is transparent, with open, two-​​way communication?
  • DEVELOPMENT: Is the work challenging giving the employee a feeling that he or she is developing skills and building mastery?
  • OWNERSHIP: Does the employee feel like an owner–involved and participating in decision making and having flexibility and autonomy?

Retaining employees requires more work than handing out an across-​​the-​​board pay raise. Pay is just the initial filter–and once pay has passed the test of being fair and adequate, then the solution to retention is much more complicated. Retention requires ensuring that each employee has an engaging workplace–it’s an individual thing that may require new Priorities that impact the culture of the organization.

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The Six Components of Employee Engagement

by Sheila Margolis on June 15, 2010

Everyone’s looking for the recipe for employee engagement. How do you get motivated workers? To start, think about the six components to Employee Engagement listed below:

1. FIT

Is the employee a FIT with the organization–its culture? Is the purpose of the organization meaningful to the employee? Are the values of the organization in harmony with the employee’s values?

Is the employee a FIT with the job? Does the employee feel one’s work is significant and is the best use of one’s abilities?

2. TRUST

Do you have a trusting workplace where people feel their leaders have integrity–they’re honest and fair? Do employees respect their leaders?

3. CARING

Does work feel like family? Is collaboration/​teamwork encouraged? Do employees have friends at work?

4. COMMUNICATION

Do you have ongoing, open, two-​​way communication? Do employees feel like leaders/​managers listen to them? Is information freely shared?

5. DEVELOPMENT

Does the organization support individual development? Do employees have challenging assignments? Does the workplace encourage achievement and mastery?

6. OWNERSHIP

Do employees have autonomy? Do they feel involved? Do they participate in decision making? Is work flexible?

When employee’s human needs are met, they are more engaged.

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Do employees have the big picture?

by Sheila Margolis on January 26, 2010

Prosper Using the “Why,” the “How,” and the “What”

How would you describe the people in your organization?

  • Do employees genuinely care about the organization? Do they feel a connection to its contribution and its unique character?
  • Do valued employees want to continue working there? Do they identify with the organization? Do they feel invested in its future?
  • Do employees regularly put forth extra effort to help the company succeed? Are they adaptive? Focused? Persistent in their efforts? Are they willing to take on added tasks when they see the need?

Work today is different from the past.

If this sounds too idealistic, maybe it’s because organizations of the past have used a different model for work. In an environment of command and control, the focus was on following rules, with little place for personal initiative. But today, that model cannot thrive in our global, highly competitive, constantly changing, and transparent world. Successful organizations today are characterized by high energy, a sense of urgency, focus, passion, and perseverance.

So how do you help your organization generate the enthusiasm that propels it toward prosperity? The key is to share a—bigger picture—view of work to guide people as they create the success each organization seeks. [Continue reading…]

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