Welcome to the Loyalty Factor Information Exchange, a bi-weekly service providing summaries of major publications and books on various management and customer relationship topics.
Loyalty Factor has been instrumental in helping companies:
- Increase Customer Satisfaction by 20 – 33%
- Increase Revenues by 50% in 18 months
- Increase Manufacturing Production by 200% in 18 months
- Simplifying mergers and acquisitions
Our information exchange this week highlights the Engagement Strategies article, “The Employee Engagement Imperative” by Allan Schweyer.
The growing organizational focus on achieving financial results by engaging employees reflects an emerging realization that traditional management practices are outdated. Today more than 80% of value in organizations is the ability to innovate, create, delight customers and solve problems.
Many studies have shown there is a direct link between financial results, share price performance and the ability of an organization to engage its employees.
Many ask, “What’s the difference between employee satisfaction and employee engagement?” Night and day is the best answer.
Satisfied employees are rationally satisfied with things like pay, benefits and work-life balance; they might stay with the organization but will rarely do much beyond what it takes to keep their job.
Engaged employees are emotionally connected to the mission, goals and objectives of the organization, and as such are willing to exert discretionary effort to help it succeed.
Unfortunately, only about half of US Workers are engaged in their work (and, as above, less than a quarter are fully engaged.)
The most important ingredient to sustained employee engagement is leadership, particularly the quality of front-line managers and supervisors.
If businesses and government are to overcome the challenges posed by globalization and the economy, they must invest in the development of supervisors and leaders. Otherwise, our nation’s problems are likely to overwhelm us.
To develop the leadership to engage and empower your employees call Loyalty Factor at 603-334-3401.