Keeping Employees Engaged Can Pay Big Dividends for Businesses

Boosting the engagement of employees might seem like an impossible mission in an era when corporate cutbacks and talk of recession are common. But experts say there are steps that you can take – regardless of the stormy economic climate – to help retain top talent and keep employees enthused about work.

Why do it? Employee engagement is always important, experts say. But it's especially critical during tough economic times. The talent shortage is real, and even in a recession, top performers can and do leave companies if they aren't happy at work. And most workplaces – especially after a company downsizing – cannot afford to lose star performers.

“In the worst-case scenario, your best employees walk out the door,” said Judy McLeish, president of Toronto-based McDaniel Partners, a firm that helps companies increase employee engagement in the workplace. “You have to remember that even in the worst economic times, there's still a market for your best people.”

Productivity is another reason to care about morale. The Gallup Organization estimates that disengaged employees cost the American economy as much as $350 billion every year in lost productivity.

Here are some tips from the experts for making sure your best workers remain happy members of your team:

• Check your own engagement level: It's difficult to motivate employees if your own commitment level is sagging. Wendy Fencl, an engagement practice leader for BlessingWhite, a New Jersey-based consulting firm, suggests managers evaluate their own levels of engagement, how they are contributing to the organization, and how they can go above and beyond. Managers who do that, she said, will be in a better position to foster engagement in others.
• Leverage the enthusiasm of engaged employees: If you're in a position to build or configure your team or project group, seed it with people who already are energized about work and the company. The enthusiasm of a few employees can have a positive ripple effect on the engagement level of others.
• Communicate clearly to build trust: McLeish at McDaniel Partners says lack of communication creates a disconnection between senior management and employees. Employees need to understand an organization's larger goals and how they can contribute as individuals. They also want meaningful work, and to know that their efforts are valued. In cost-cutting mode, companies are not always transparent or open with employees about changes and why they are needed. That “breaks the bond between employer and employee,” she said.
• Train company leaders: Many managers are promoted based on their performance, not necessarily on their ability to build employee engagement, McLeish said. But managers also need to learn how to communicate the company's vision, model company values, and help build employees' pride in the company. Listening, coaching, being accessible, and taking the time to get to know employees also are must-have skills for managers.
• Provide training and career development opportunities: When times are tough, training often is one of the first areas to be carved out of the company budget. Be sure not to stop investing in the tools that help your employees to do their jobs, McLeish said. Employees tend to be more engaged when they know that the company they work for is interested in helping them develop and grow in their career life.
• Be holistic: Make sure career development programs, reward/recognition initiatives, job descriptions, pay structures, and other systems are aligned with organizational goals. Rose Stanley, practice leader of professional development at WorldatWork, says it can be helpful to conduct a survey to determine employee engagement levels and areas that need improvement.
• Focus on rewards, benefits, and incentives: There are many low-cost ways to show employees that they are valued. Stanley suggests giving employees the option to work from home a couple days a week, or to build a more flexible schedule. Some employers also are offering transit subsidies to help alleviate the gas crunch for employees. Providing access to health and wellness programs for employees' families also can help employees and build company loyalty at the same time.

Written by Jenny Cromie, certified human resources specialist (CHRS)