September 6, 2015

Do you have the right management for Employee Engagement?

Employee Engagement

The right management will increase Employee Engagement, the wrong management will increase disengagement.

According to Gallup’s estimates the right management (direct supervisor) accounts for more than 70% of the variance in employee engagement scores across business units. This relationship is a key factor in the low worldwide employee engagement scores (in 2013 only 30% US and 13% worldwide are actively engaged). The scariest statistic however, is that over the past twelve years these low numbers have not changed much despite engagement programmes being in vogue. Unfortunately until organisations change the way they reward high performers, grow individuals and select managers (and leaders) this trend is likely to continue. What is worse is that this acknowledgment and reward, or lack thereof, entrenches the culture of the organisation. Performance or disengagement is embedded through the way we manage our people.

Just because they are an excellent salesperson, accountant or engineer does’t mean they have the skills to manage people.

Many organisations use outdated principles of succession to find the right person for the role. Often hiring and promotion decisions are made based on the individuals’ past experience or they give them the manager job as a reward for their length of service or performance in another role. This method of promotion, overlooking people management talent is often damaging to the culture and performance of the organisation. Managers promoted beyond their level of experience or skill tend to become easily disengaged. Gallup estimates that these disengaged (non-people skill) managers cost the U.S. economy between $300 billion and $400 billion annually.

Gallup’s research shows that organisations fail to choose the right candidate to manage a team 80% of the timeDo you have the right management for Employee Engagement?

Organisations that choose managers based on people management talent, however, have a much greater chance of choosing high performers. Naturally talented managers know how to develop and engage their employees. They create enthusiastic and energised teams that focus on moving their company forward and doing right by their customers. But what is talent? Gallup defines it as the individual’s natural capacity for excellence. Gallup believes that people can learn skills, develop knowledge and gain experience, but they cannot acquire talent (as talent is innate). When an individual has the right talent for their role, they think and act differently than their peers, are easier to motivate and tend to excel. They often don’t think of it as “work”, but instead feel energised by what they do. This is not the case for people doing something outside their area of talent; they often feel drained by what they have to do each day.

When organisations fail to hire for talent, or promote based on longevity they often end up with significant variance in performance. Organisations can give their employees the same information and support, create a great working environment and offer them the same knowledge, but without the right talent fit these organisations will end up with some high performers, some middle-of-the-road performers and some low performers. Talent paves the way for consistent excellence in performance.Do you have the right management for Employee Engagement

The cascade effect of disengagement

The right management are supposed to engage the members of their team, but according to Gallup’s research over 50% of managers are disengaged and have essentially checked out themselves. The managers’ own attitude has dire consequences for their teams. The research clearly shows that a manager’s engagement levels directly impact the engagement levels of their employees, what Gallup calls the cascade effect. In over 190 diverse industries (finance, healthcare, manufacturing, retail, etc.) it was found that managers who are supervised by highly engaged leaders were 40% more likely to be engaged themselves. This link is greater when it comes to employees. Those managed by highly engaged managers were 60% more likely to be engaged than those supervised by actively disengaged managers.

Picking the right management is not about about picking the best role talent (salesperson, accountant or engineer, etc.), it is about finding those with people management talent.

[author] [author_image timthumb=’on’][/author_image] [author_info]Richard Riche specialises in helping you build a great place to work. Consulting, coaching and training. Training speaking and presentation skills. Building Employee Engagement and Emotionally Intelligent teams. [/author_info] [/author]


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