WE: How great leaders create an engaged workforce

Always fascinated by insights and research on how leaders inspire and engage people, I recently talked with Kevin Kruse, author of the best-selling book WE: How to Increase Performance and Profits Through Full Engagement.

Based on millions of employee surveys with organizations around the world, Kevin and his co-author Rudy Karsen found that the three most important drivers of engagement are:

  1. Growth: Team members need to feel they are growing in their careers and learning new things.
  2. Recognition: Team members need to feel that their ideas and accomplishments are appreciated.
  3. Trust: Team members need to trust senior leadership and feel confident about the future.

Here are highlights of our conversation: 

What attracted you to writing about engagement? Why does the world need this book, at this time?

Well as a business leader I always cared a lot about trying to create an empowering culture for employees, and I had won a Best Place to Work in PA award and things like that. But one night, during our annual holiday party, the wife of someone who worked for me came up and said she wanted to thank me for making her marriage better. I really had no idea what she was talking about. She went on to explain that her husband used to be so grumpy when he came home from work, but since he started working for me he went back to being the man she married.

That was pretty powerful. It was long before I understood how our emotions at work spill over to our personal lives and cross over to those around us. But that was when I got the idea that I really wanted to dig into “engagement” and figure out ways we could make it more accessible to everyday managers. As it turns out, job satisfaction is at a record low according to the Conference Board so I think the timing is really good for a book on the subject.

What are the qualities of employees who are especially engaged with their work? What makes them that way?

People who are engaged at work are highly satisfied with their jobs, but they also exhibit more pride and advocacy about the company they work for, and stay with the company longer. All this leads to higher levels of service and productivity, which of course drives higher levels of sales and profit.

In terms of what drives engagement, it’s of course situational. But based on Kenexa surveys of over 10 million workers in 150 countries and on my own experience as an entrepreneur, it usually comes down to three things. Employees want an environment that fosters growth, recognition and trust. Those are the three keys.

If you were on a board interviewing potential CEOs, what qualities would you look for — and why?

Funny you should ask! I am on the Board of a community bank and we just hired a new CEO. Whenever I’m hiring a leader for one of my businesses I always look for high energy–someone who talks and acts like they’re on a deadline, who is driven by growth. And they need to be able to succinctly state the challenge and action steps ahead. I’ve never had a business plan that was longer than one page. We don’t need to make things more complex than they are. All businesses have three constituents: investors, employees and customers. What must we do, right now, to improve metrics in each area. That’s it.

What questions should people ask during job interviews to assess whether the corporate culture is positive, collaborative and flourishing?

Well, it’s always best to talk to people on the inside. Like Kevin Bacon, everyone should be only a few degrees of separation from someone on the inside and having a healthy LinkedIn network is one way to do that. But in the interview itself you should ask what happened to the person who held the position before it was open. You should ask about which decisions are made as a team, which are made by a single individual. Make sure to get a tour of the office you’ll be working in so you can sense the vibe. Is it quiet like a library or mausoleum — or are people working together and making a buzz? Do people have a lot of fun personal effects in their cube — or just bare walls? Tall cube walls — or open space? There is no one right answer, but just make sure it fits your own work personality.

There’s so much written about employee engagement today. What are the three most important things for leaders to understand about this topic? Conversely, what do people obsess about when it comes to engagement that doesn’t matter all that much?

Engagement is all the rage both because it’s important to growth and profits, and it’s also really low in most organizations. Business leaders first need to realize that they need to care about it. Second they need to act like they care. I mean, they need to measure it, reward to it, make sure it’s not a fad. When Doug Conant took over Campbell Soup to turn it around he focused on two metrics: shareholder return against comparable companies, and the number of engaged versus disengaged employees.

The biggest misconception is that employee engagement takes a lot of time and money. It doesn’t. It means using your existing time differently. Managers meet with their direct reports all the time, but they need to make sure to spend some of that time talking about the career goals of team members. Managers have a hundred interactions with their team each day…but how many of them are to say “thanks” or “good job” in a sincere way. CEOs routinely hold “town hall” meetings or send company wide announcements, but how often are they repeating their big hairy audacious goal like a broken record. These are things that count.

What could the United States be if more citizens were engaged?

Let me answer this two ways. Our emotions at work impact all areas of our life. So if more of us were engaged at work, we all would be healthier, have stronger marriages, our kids would do better in schools and incidentally we’d gain about $350 billion in productivity according to Gallup. When it comes to engagement with our country, while I don’t know what our nation would “be”, I can tell you that the reason why we are so disengaged with government and our leaders in Washington is because we don’t feel like we’re growing or advancing and we absolutely don’t trust our leaders to take us to a better place.

Free the rebels!

Today’s prompt: Action. When it comes to aspirations, it’s not about ideas. It’s about making ideas happen. What’s your next step?

I had a giant “aha” professional moment in 2010 about the value and untapped potential of rebels, we optimistic people who feel compelled to speak up and make organizations better.  (Here’s that story.) Yet reams of organizational research shows that companies fear and/or ignore this most valuable talent. And, alas, rebels rarely receive help in learning how to get their ideas heard in a way that will be respected and embraced.

2010 was rebel research and idea incubation. Next year I’m intent on  freeing rebels so that both they and their companies can reap the benefits of passionate, truthful people who want to make a difference.  Supporting and empowering rebels gives meaning to change management and employee engagement goals.

If you’re interested in rebels and organizational change, check out Stanford B-School professor Deborah Meyerson’s book “Tempered Radicals.” It’s is a classic.

If you have any thoughts about this emerging Rebel Alliance, or would like to participate in some way, please drop me a line at lkelly@foghound.com.

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This post is part of a 31-day blogging challenge called reverb10, responding to writing prompts that are designed to elicit reflections on 2010, and hopes for 2011. You can find out more about it here.

What’s your employee engagement score?

This simple way to assess how engaged your employees are comes from David Zinger, author of the soon-to-be-published book Zengage: How to Get More Into Your Work to Get More Out of Your Work.

Employee attitude matters more than advertising

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Companies spend so much on acquiring new customers, hiring the best talent possible, taking chances on innovative marketing concepts. But engaging employees often seems to a stepchild, loved, but in a less passionate way.

Given the influence of employees on customer loyalty, maybe the priorities need to be altered. At yesterday’s Conference Board conference Engelina Jaspers, HP’s vice president of corporate marketing, shared three stats that can help focus management’s attention on employee engagement:

  1. 68 % of customers leave a company because of poor employee attitude
  2. 41% of customers are loyal because of good employee attitude
  3. 70% of brand perception determined by experiences with people from the company

Brian Ray of McDonald’s is quantifying the value of committed employees in revenue and profitability for McDonald’s owners/operators. (85% of McDonald’s are franchises), and has just completed an project to create an employee value proposition.

(So interesting that every company seems to have a customer value proposition and mission, but not so for employees.)

To develop this “EVP” McDonald’s spent just $65,000 and asked two simple questions, which got an amazing 79% response rate from frontline workers in 33 countries:

  • What do you love about working for McDonald’s?
  • What do you love the least about working for McDonald’s?

What do your employees love the most and least about your company?  These two simple questions asked at least annually can provide the insights you need to understand how to make your employees your best marketing advocates.

Is your culture ready for social media?

Installing Web 2.0/social media tools is easy. Realizing the benefits from them might not be, depending on a company’s culture.

Steve Radick has a good post over at Social Media Strategery (say that three times fast) where he poses 10 questions to assess whether an organizational culture can support what social media enables.  Good questions all.

  1. Are employees discouraged from contacting people outside of their chain of command?
  2. Are employees discouraged from challenging authority?
  3. Is risk-taking rewarded or punished?
  4. Are employees rewarded for collaborating with other colleagues or for authoring/producing original work?
  5. Do your employees have regular access to the Intranet?
  6. Does your leadership value the feedback of employees?
  7. Are employees prohibited from speaking externally without prior permission?
  8. Is the contribution and sharing of intellectual capital part of the employees’ regular routine?
  9. What’s more valued, entrepreneurship or following orders?
  10. Do employees derive more value from networking with colleagues or from using the Intranet?

The risk of rigid corporate cultures: talent suck

What’s especially interesting to me is that if a company doesn’t value contributions, risk, networking and entrepreneurship, what will happen to the company in the next three years? Can organizations stay relevant if they are this rigid? Unlikely — especially in any industry where talent is at a premium. (And that is most. This recent Business Week article, “The Global Talent Crisis,” is especially insightful about the issue.)

A communications professional recently asked me for advice on where to start with social media considering that her CEO doesn’t value communications, never mind “this new stuff.”  (The CEO’s words.)  My advice to her was to get a new job at a different company. If senior management doesn’t want to empower employees and collaborate with customers, there was little she could do. And yet, the longer she goes without social media experience, the more difficult it will be for her to  advance professionally.

Creative, innovative talent will not tolerate the old command-and-control corporate culture. It’s too suffocating an experience, too difficult to learn new skills, and bad for career development.