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Leadership Coaching: High Employee Engagement for a Flourishing Company
By Mike Krutza

An organization has to take time to make its employees flourish. An optimally productive workforce leads to a successful organization. The management thus needs to reach out to its workers. A recent study conducted by Lighthouse Leadership indicates that more than 46% of working people feel that communications from their management is not honest. Honest communication is actually important at all levels of an organization. Communication gaps can have a crippling effect to a company.

What are current conditions about employee engagement in the US?

  • 71% of American employees are not engaged or actively engaged.
  • 84% of senior leaders in the global corporate scene state that disengaged employees are one of the top three biggest threats in their businesses.

  • Only 12% of companies do regular effort to address employee engagement

Anticipated high rate of turnover

  • 70% of employees say that they are planning or looking for new opportunities outside their organization within the year. This rate has increased by 15% over the past three years.
  • 25% of employees, identified as high potential employees by the management plan to leave their companies within the year.

  • 51% of executive management are concerned that their competitors are recruiting their high potential employees.

Why is employee engagement important? What are the benefits?

  • 480% more commitment is rendered by highly engaged employees to help the company succeed compared to disengaged employees
  • 250% more effort to recommend improvements is obtained from highly engaged employees

  • 370% more likelihood for highly engaged employees to recommend their company as an employer

  • 30% less likelihood to take sick days from highly engaged employees

  • 19% increase in operating income in a period of 12 months were seen in organizations with high employee engagement, compared to 34% decrease in companies with disengaged employees

  • Actively disengaged employees result to lost productivity costing the US economy $370 billion annually

Why is effective communication to employees important?

  • 48% increase in shareholder returns over the last five years has been reported in companies with the most effective employee communication

Top drivers of employee engagement

  • Two factors seen to significantly influence employee engagement were:
    • individual supervisors (85%)
    • employee communication (81%)
  • Top 5 factors that influence employee engagement globally:

    • being treated with respect
    • work/ life balance
    • type of work
    • quality of co- workers
    • quality of leadership

Business strategy communication

  • One of the top drivers of employee engagement is the workers’ understanding of the business strategy and their awareness of how their work contributes to company success.
  • Two thirds of employees are 33% less productive because they don’t understand what they are being asked to do.

Mike Krutza specializes in executive coaching with individuals and teams. Visit Mike’s website here.

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