Employee Engagement – How Do You Measure Up?

Okay, I have three numbers for you – or percentages I should say – 30, 13 and 70. According to a recent study conducted by Gallup, 30 percent of U.S. employees are actively engaged in their job. Mull that over for a moment. That means seven out of ten folks around you will probably do enough to earn their paycheck, and nothing more. Sure, they’ll get the job done, but are by no means driven to go above and beyond in their work.

Sounds pretty bad, right? Well that’s actually quite better than employee engagement worldwide, which sits at a dismal 13 percent. Thirty is starting to sound good … Don’t fret though, there’s still one more number: 70. Management is shown to account for 70 percent of variance in employee engagement.

The tone set by leadership is shown to systematically carry throughout the company and directly influences engagement. If you can manage to get the right person in the role, that 30 percent engagement can be driven considerably higher. Management is the key.

Focus and approach

I’ve witnessed the effect that management has on engagement firsthand. In a former life (or so it feels), I was a sales manager for a big box electronics retailer. The biggest driver of profitability, by and large, was television sales. The TV by itself has a high profit margin, but when you add accessories, cables, surge protectors, Blu-ray players and audio, profits can soar. These stores live and die by the success of their TV department.

As you can probably guess, sales managers place a great deal of focus and investment on their salespeople – developing their talents, honing their skills and teaching them how to educate and connect with customers. While the underlying focus is often the same from manager to manager, approach can vary wildly.

Inaction in action

I recall one manager in particular and his method of “talent development.” Employees would regularly approach him after a sale, proud of their accomplishment, and looking for a little approval and encouragement. His response was typically a back-handed compliment: “Nice, I see that you sold an HDMI cable, you should have sold the surge protector too,” or, “Great, they purchased home theater surround-sound with the TV, why didn’t you sell professional installation?” No praise went without criticism; no good deed went unpunished.

In his mind, he was placing the bar higher and higher – helping his salespeople strive to be the best and reach a standard of excellence. It worked in a few cases. More often than not however, employees disengaged, confident that they could never do enough to satisfy. They could never reach their goals, because they were always reestablished right before they were met.

It’s all relative

I always did my best to encourage performance through individual achievement rather than a single standard of excellence. The biggest difference between these two methods is the approach towards goal setting. The first method establishes a measure for greatness, and produces an all or nothing mentality. In the words of Jedi Master Yoda, “Do, or do not. There is no try.” Maybe this works in the Marine Corps boot camp, professional sports and the Jedi Academy, but it’s not a prudent approach for an every-day Middle America workforce.

The other method takes a little longer, but is much more productive. We have to first take stock of an employee’s skill set and potential, and then work with them to establish a “next level.” Something that they can own; something on their terms. If we view performance as falling somewhere on a continuum, focus moves to direction and momentum. Not just good or bad, but getting better or getting worse. As long as we can keep consistently ticking along upwards, slow and steady will often win the race.

In part two of this post, we’ll look at some tangible methods of engaging employees. In the meantime, if your credit union would benefit from more streamlined and simplified performance management, click here to learn more about Performance Pro!

Is Your Credit Union a Great Place to Work?

by Emily Sternberg, SPHR

Many credit unions strive to be a cool place to work, a best place to work, or to be designated as one of the best and brightest. What are these credit unions doing within their businesses to receive these coveted designations? Is it that they have a ping pong table in the lunch room? A casual work environment? A robust wellness program? Could it be that they have a 401(k) with a match or generous PTO policies? Are they committed to community involvement?  Experts say it’s a combination of these attributes, but most importantly it’s a culture that encourages employee engagement. It’s a credit union that takes down the barriers to productivity so that the real work can be done. Above all it’s a credit union where employees trust one another, take pride in what they do and enjoy the people they work with. 

The Five Key Areas

What kinds of things can you be doing within your credit union to engage employees and create a great place to work? According to the Great Places to Work Institute, a great place to work is one in which the relationship between the employer and employee fosters loyalty, commitment and a willingness to contribute to organizational goals and priorities. This relationship is formed by molding policies and practices around five key areas: credibility, respect, fairness, pride and camaraderie.

Credibility

Credibility is an credit union’s ability to build and maintain trust with its staff. A credit union that communicates its vision openly and carries out its vision and goals with consistency and integrity will inevitably build trust with its staff. Credibility is also a credit union’s ability to follow through on its commitments; they do what they say they are going to do.

Respect 

Respect is the second attribute of great work places. A respectful organization supports its employees with professional development and includes relevant stakeholders in making important decisions. Creating a positive work/life balance is also a key component to fostering a positive relationship with employees. Providing internal education to prepare employees for leadership opportunities within the organization conveys they are highly esteemed and trusted by the credit union.

Fainess

Fairness is also a key attribute in creating a great workplace experience. Employees expect that employers will be fair in terms of reward. They also have an expectation that objective decisions will be made in terms of hiring and promoting into more responsible positions. Employers who lay out clear expectations for success and hold employees to similar standards are more likely to be trusted and to have a more engaged staff.

Pride and Camaraderie

Pride and camaraderie are the final building blocks to a great work experience. Employees strive to make a difference in the organization with what they do and how they positively affect not only their company, but the surrounding community.   Commitment to community involvement is one of the principal ways in which employers help to foster employee pride in their work (and something credit unions are well known for!). Employees enjoy their jobs, because the credit union’s values align with their own and positive relationships among coworkers lend themselves to creating a sense of camaraderie in the work environment.

Creating a great place to work is sometimes about out of the ordinary benefits and quirky perks, but when all the layers are peeled back, it is clear that the foundation of any great workplace is not what we are doing, but how we are getting to the end result. Employees who trust their organization, take pride in their work and look forward to coming to work are the building blocks so any credit union can meet and exceed its goals and objectives.

Want to make your credit union an even better place to work? CU Solutions Group can help.