Stressed employees are not productive employees. Responsible, forward thinking organisations want their people to not only be in control of their life and work, but also their finances.
Think about it, it makes sense, the less stressed and more in control of their life employees are, the better they will perform at work. Companies that have people with low financial anxiety benefit from greater performance and morale. But unfortunately most employees spend as much as 25 hours a month worrying about their financial situation. For a company of 100 employees, that can mean close to 30,000 unproductive working hours or 750 lost working weeks per year.
Almost 97% of employees say they experience financial stress, yet only around 3% take responsibility (self-leadership) to create something as simple as a cashflow for their own life. So "How do you give your employees a 10% pay rise without giving them anymore money"? Answer: Help them take more control of their cashflow with tools and training. Research shows that more awareness of your cashflow can increase your financial situation by around 10% per year.
So there can be huge benefits in providing your people with tools and resources to be able to take better control of their financial situation. Recently one of our clients paid all their people an extra one hour to allow them to go and do their personal cashflow program on employee engagement system meCentral.com
The philosophy for helping employees take more control of their cashflow and other financial issues is exactly the same approach when applied to other key areas such as career development, work life balance and life goals.
Friday, October 12, 2007
Wednesday, September 12, 2007
Where have we gone wrong with Employee Engagement?
True employee engagement is achieved when employees know what is important to them, a new innovative approach which somewhat turns current thinking on its head through a self-leadership philosophy now known as "self-driven employee engagement".
In search of this elusive ‘engagement', many companies have mistakenly indulged in a range of employee benefits that act merely as a ‘band-aid' to the symptoms of disengagement rather than address the core drivers behind what really engages individuals. Many employee engagement solutions have offered an ineffective mixture of employee benefits and commonly creating an ‘entitlement' or ‘whinge' culture.
The ‘Inside Out Approach'
Psychologically most people know what they don't want. However, few really know what they do want. If employees don't know what truly engages them in work and life, it is virtually impossible to sustainably engage them. The key is helping employees take responsibility for driving their own engagement (self-driven employee engagement) by getting clarity around what they want both inside and outside of work.
Almost everyone wants more control over their lives. Self-leadership is the philosophy of putting individuals back in control by giving them the thinking, tools and personal responsibility to get clear on what they want in work, life and personal finances.
By providing the tools, environment and solutions by which employees can get greater clarity around what they want, what motivates them and what is important to them, both inside and outside of work, organisations can create a sustainable win-win culture, thereby building a workforce that is engaged, productive and performing to its highest potential.
In search of this elusive ‘engagement', many companies have mistakenly indulged in a range of employee benefits that act merely as a ‘band-aid' to the symptoms of disengagement rather than address the core drivers behind what really engages individuals. Many employee engagement solutions have offered an ineffective mixture of employee benefits and commonly creating an ‘entitlement' or ‘whinge' culture.
The ‘Inside Out Approach'
Psychologically most people know what they don't want. However, few really know what they do want. If employees don't know what truly engages them in work and life, it is virtually impossible to sustainably engage them. The key is helping employees take responsibility for driving their own engagement (self-driven employee engagement) by getting clarity around what they want both inside and outside of work.
Almost everyone wants more control over their lives. Self-leadership is the philosophy of putting individuals back in control by giving them the thinking, tools and personal responsibility to get clear on what they want in work, life and personal finances.
By providing the tools, environment and solutions by which employees can get greater clarity around what they want, what motivates them and what is important to them, both inside and outside of work, organisations can create a sustainable win-win culture, thereby building a workforce that is engaged, productive and performing to its highest potential.
Sunday, August 12, 2007
If you can't measure it - you can't manage it
Thanks for your kind emails and further questions. Due to the great response from a recent "Engaging People" Newsletter we have been asked to spell out some key question that you must know in a little more detail.
To make any meaningful change you must first know what you are trying to change. So read this newsletter, then print it out and take 2 minutes exploring your answers.
If you can't measure it - you can't manage it
1. MEASUREMENT:
To what degree do we conduct staff satisfaction surveys / engagement surveys?
How quickly do you implement the findings of these surveys?
What are the top 3 real reasons for your people leaving or staying?
Leaving: 1._ _ _ _ _ _ _ _ _ _ 2._ _ _ _ _ _ _ _ _ _ 3._ _ _ _ _ _ _ _ _ _
Staying: 1._ _ _ _ _ _ _ _ _ _ 2._ _ _ _ _ _ _ _ _ _ 3._ _ _ _ _ _ _ _ _ _
4. FINANCIAL IMPACT:
What is the financial cost to the business of losing just one employee? If you are unsure go to the Engagement Economics section of www.LifebyDesign.com.au
$ _ _ _ _ _ _ _ _ _ _ to $ _ _ _ _ _ _ _ _ _ _
5. TURNOVER RATES:
What is your turnover rate? How does it compare for your industry?
Our company turnover rate: _ _ _ _ _ _% Our industry turnover rate: _ _ _ _ _ _ _%
6. FOCUS:
Do you put more effort into recruiting new people or engaging your existing people?
Attraction of new employee:
Mthly Hrs _ _ _ _ _ _ _ _ _ _ Mthly Cost $ _ _ _ _ _ _ _ _ _ _
Engagement of existing team: Mthly Hrs _ _ _ _ _ Mthly Cost $ _ _ _ _ _
6. POSSIBLE ACTIONS:
What key 3 things need to change to improve in employee engagement in your organisation?
_ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
The key is; talk to and research your employees. Involve senior management; create a plan and invest more time in your people both formally and informally. The future of your organisation will be in direct proportion to how much time and effort you choose to invest into employee engagement.
The 80/20 Rule of Engagement Employee engagement benchmarking is useful, but the findings provide you with just the 20% starting point. Successful employee engagement results from the remaining 80% - the commitment to strategic and effective implementation.
To make any meaningful change you must first know what you are trying to change. So read this newsletter, then print it out and take 2 minutes exploring your answers.
If you can't measure it - you can't manage it
1. MEASUREMENT:
To what degree do we conduct staff satisfaction surveys / engagement surveys?
- Never
- Informally
- Formally Yearly
- More Than Yearly
- Formally Sporadically
How quickly do you implement the findings of these surveys?
- Most within 6 months
- Most within 12 months
- A few within 6 months
- A few within 12 months
- We rarely implement anything
What are the top 3 real reasons for your people leaving or staying?
Leaving: 1._ _ _ _ _ _ _ _ _ _ 2._ _ _ _ _ _ _ _ _ _ 3._ _ _ _ _ _ _ _ _ _
Staying: 1._ _ _ _ _ _ _ _ _ _ 2._ _ _ _ _ _ _ _ _ _ 3._ _ _ _ _ _ _ _ _ _
4. FINANCIAL IMPACT:
What is the financial cost to the business of losing just one employee? If you are unsure go to the Engagement Economics section of www.LifebyDesign.com.au
$ _ _ _ _ _ _ _ _ _ _ to $ _ _ _ _ _ _ _ _ _ _
5. TURNOVER RATES:
What is your turnover rate? How does it compare for your industry?
Our company turnover rate: _ _ _ _ _ _% Our industry turnover rate: _ _ _ _ _ _ _%
6. FOCUS:
Do you put more effort into recruiting new people or engaging your existing people?
Attraction of new employee:
Mthly Hrs _ _ _ _ _ _ _ _ _ _ Mthly Cost $ _ _ _ _ _ _ _ _ _ _
Engagement of existing team: Mthly Hrs _ _ _ _ _ Mthly Cost $ _ _ _ _ _
6. POSSIBLE ACTIONS:
What key 3 things need to change to improve in employee engagement in your organisation?
_ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
The key is; talk to and research your employees. Involve senior management; create a plan and invest more time in your people both formally and informally. The future of your organisation will be in direct proportion to how much time and effort you choose to invest into employee engagement.
The 80/20 Rule of Engagement Employee engagement benchmarking is useful, but the findings provide you with just the 20% starting point. Successful employee engagement results from the remaining 80% - the commitment to strategic and effective implementation.
Friday, July 6, 2007
Disengaged from the first day or just conditioned that way over time?
On average, 80 per cent of employees are not engaged or actively disengaged.
Do we, as leaders, hire them disengaged or do we condition them that way?
The clearest driver that differentiates Best Employers is leadership. Most employees do not leave jobs or companies - they leave managers. Leaders need to keep their people informed and appreciated. Australia has one of the highest management avoidance styles in the world. Any cultural change should start from the top down and employee engagement is no exception. When it comes to making your company a great place to work, management practices are vital.
ISSUE: Become the change we want to see in our people and organisation
Do we, as leaders, hire them disengaged or do we condition them that way?
The clearest driver that differentiates Best Employers is leadership. Most employees do not leave jobs or companies - they leave managers. Leaders need to keep their people informed and appreciated. Australia has one of the highest management avoidance styles in the world. Any cultural change should start from the top down and employee engagement is no exception. When it comes to making your company a great place to work, management practices are vital.
ISSUE: Become the change we want to see in our people and organisation
Tuesday, June 5, 2007
Want to make CEO's see HR as a profit centre?
Even though most CEOs say "our employees are our most important assets", modern accounting is virtually devoid of employee engagement measurement. The balance sheet has traditionally had no allocation line for human assets. Engagement has not so much been about numbers, but it is about performance. An increase in productivity performance can result in increased profitability.
Companies with an engagement score of 60 per cent or higher have an average five-year shareholder return of more than 20 per cent, while companies with engagement scores of less than 40 per cent usually have a negative return of 10 per cent to shareholders.
Alarmingly, Australia has some of the lowest engagement levels in the world with 82 per cent of workers either not engaged or disengaged. Disengaged employees cost the Australian economy about $31.5 billion a year through loss of productivity, sick leave and even sabotage.
ENGAGEMENT ECONOMICS
Turnover is increasingly becoming one of the primary expenses for businesses due to additional hiring, lost productivity and retraining costs. Many researchers suggest turnover costs companies between one and two times an employee's salary in lost productivity. For an organisation of 1000 employees with an average salary of $60,000 and 22 per cent turnover, this equates to around $15,800,000 annually in lost productivity. Reduce turnover by just 2 per cent by engaging people and you could save your business over $1.4 million p.a.
ISSUE: Employee engagement can now be illustrated by HR as a profit centre
For more information go to Engagement Economics or Frequently Asked Questions
Companies with an engagement score of 60 per cent or higher have an average five-year shareholder return of more than 20 per cent, while companies with engagement scores of less than 40 per cent usually have a negative return of 10 per cent to shareholders.
Alarmingly, Australia has some of the lowest engagement levels in the world with 82 per cent of workers either not engaged or disengaged. Disengaged employees cost the Australian economy about $31.5 billion a year through loss of productivity, sick leave and even sabotage.
ENGAGEMENT ECONOMICS
Turnover is increasingly becoming one of the primary expenses for businesses due to additional hiring, lost productivity and retraining costs. Many researchers suggest turnover costs companies between one and two times an employee's salary in lost productivity. For an organisation of 1000 employees with an average salary of $60,000 and 22 per cent turnover, this equates to around $15,800,000 annually in lost productivity. Reduce turnover by just 2 per cent by engaging people and you could save your business over $1.4 million p.a.
ISSUE: Employee engagement can now be illustrated by HR as a profit centre
For more information go to Engagement Economics or Frequently Asked Questions
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