Improving Business Performance by Connecting Employees

In an increasingly competitive environment, leaders everywhere are looking for better ways to create a competitive advantage. Most understand that performance can be improved through better management of their employees. But what actions do they need to take to move the performance needle? Connecting employees to the organization might be the answer.

One person who was a master at “connecting” employees was Jack Welch, former CEO of General Electric. He was the consummate communicator, whether he was talking to employees about Six Sigma (a quality measure and improvement program developed by Motorola) or explaining to outsiders why GE was selected by Fortune Magazine as one of the most admired companies in America.

He says, “The only way to be more competitive is to engage every mind in the organization. You can’t have anybody on the sidelines.”

If a company is going to be the best at what it does; if it is going to improve its Return on Investment (ROI); then it needs to “engage every mind in the organization.” It needs to link people and what they to the business strategy. Employees need to know where the company is headed, why it is headed in that direction, and what they can do when they come to work tomorrow morning to help it get there. We want to get people off the sidelines and onto the playing field.

Based on data from the Gallup Organization, connected employees are 50% more likely to have lower turnover and absenteeism; are 56% more likely to have higher customer loyalty; and have 46% fewer accidents. A study by Towers Watson, a global consulting firm focused on human capital and financial management, concluded, “Higher employee engagement is directly linked to higher shareholder value.”

So how do we make the connection? Here are what I call the “Rules of Engagement”—four actions that can directly impact employee engagement:

1. Give employees a line-of-site to the big picture. Frequently communicate the vision, mission, values and strategies of the organization; and encourage managers to show employees how their work group fits into the overall organization.

2. Involve employees in running the business. Provide information to help employees understand the competitive and economic environment of the business. Review internal and external customer requirements with employees. Allow employees to help set performance goals and encourage suggestions from them.

3. Keep employees well informed. Provide information about where the company has been, where it is today and where it’s headed. Provide key performance indicators relevant to individual work areas; and give weekly updates of actual performance-to-goal.

4. Reward and recognize employees for a job well done. Ensure that a reward and recognition program is available for each work group in the organization. Include recognition for work environments that managers create, such as their ability to foster open communication; and recognize employees through formal communication channels.

By following these “Rules of Engagement,” you’ll get higher performance levels from your employees that translate into greater profitability and growth for your company.