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.