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.
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84% of senior leaders in the global corporate scene state that disengaged employees are one of the top three biggest threats in their businesses.
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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.
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25% of employees, identified as high potential employees by the management plan to leave their companies within the year.
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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
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250% more effort to recommend improvements is obtained from highly engaged employees
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370% more likelihood for highly engaged employees to recommend their company as an employer
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30% less likelihood to take sick days from highly engaged employees
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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
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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%)
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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.
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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.
