August 21, 2014 Leave a comment
Employee engagement is by far the single most important HR challenge for organizations because it impacts recruitment, retention, absenteeism and productivity.
In fact, according to a 2011 Gallup poll, the annual cost of lost productivity on the U.S. economy due to actively disengaged employees is $370 billion!
And finding a way to improve employee engagement can be as simple as showing appreciation for a job well done.
According to a 2013 survey of 803 human resource employees by the Society of Human Resource Management and Globoforce, direct supervisors have a great deal of power over employee engagement. Here are the responses from this question:
“In your professional opinion, which of the following items have the most impact on employee engagement at your organization?”
- Appreciation by direct supervisor 71%
- Opportunity to advance 41%
- Salary and bonus 36%
- Ability to be effective in one’s job 35%
- Company’s care for employees’ well-being 30%
- Confidence in executive leadership 29%
- Relationship with peers 22%
- Belief in company’s mission 18%
- Appreciation by peers 11%
- Job title 4%
- Other 2%
The same survey found that only 26% of employees are satisfied with the level of recognition they receive for doing a good job at work.
One of the reasons for this is that all too often it is only during an annual performance review that we acknowledge the contributions of our employees. This is short sighted.
Annual performance reviews are too infrequent to be useful for giving valuable feedback—both positive and negative. Giving specific praise and actionable criticism is often far removed from the examples it may point to. In addition, these reviews are often limited to the perspective of an immediate supervisor rather than involve feedback from peers and other employees.
Most employees and their supervisors dislike the entire annual review process so much that they are usually late and are completed only after continual hounding by human resource departments.
As a result, these reviews serve primarily as an opportunity to negotiate promotions and raises rather than a constructive learning and trust-building opportunity.
More that half (51%) of the HR people surveyed say their organization’s existing performance review process needs to be completely overhauled.
Obviously, there is a need to change the way we are seeking to engage our employees. With that in mind, here are three suggestions for raising employee engagement through showing greater appreciation:
- Give specific genuine praise every time it’s warranted. Don’t let an opportunity go by without thanking your employee for the extra effort or extraordinary results they achieve. It’s not just about the money.
- Celebrate individual contributions. Don’t think that by singling out individuals you are slighting others. Every time someone on your team does something special, be sure to acknowledge it publicly in your meetings.
- Change performance reviews so they are a continual process rather than once a year event. Use every one-on-one interaction to deliver direct and specific feedback on performance so there are no surprises. Acknowledge recent accomplishments and set new
While I’m not suggesting you’ll be able to turn an actively disengaged employee into a fully engaged employee using these suggestions, I do believe you will raise overall engagement so that your people will feel their contributions are appreciated.
Greater appreciation will stir motivation and that will lead to greater engagement. Showing appreciation may be the most cost-effective means of increasing employee engagement.