Employee engagement has been the topic of several posts, including our previous one; and according to recent data, is on the priority list for most organizational leaders.
But it is less common to hear people speak in specific terms about the real, often hidden, costs associated with disengagement.
In a recent blog post, Conway Management Company shared data indicating that “disengaged employees create a negative and expensive ripple effect throughout an organization, and drive-up costs in five specific ways.”
- Higher turnover
- Lower productivity and profitability
- Little or no process improvement
- Higher pay
- Lost opportunities
Read the full article…
In one of last year’s posts we discussed the “engagement surprise,” which was identified as the measurable return-on-investment (R.O.I.) that many organizations were recognizing from their engagement efforts.
In other words, engagement can be a profit center rather than a cost center.
However, as presented in a recent Engagement Strategies Media article, the approach must be “intentional.”
Not only must leaders be strategic in their approach to engagement, but they must also stay-the-course with the intention of building a culture of engagement within their organizations — a culture in which people are engaged, highly-motivated, and highly-productive.
This is no small feat… but the data is clear, the R.O.I. can be significant. Typical objectives associated with this formalized approach to engagement include:
- Increasing sales or revenue.
- Increasing customer engagement and referrals.
- Engaging channel partners to provide more commitment to products and services.
- Improved recruiting and hiring.
- Engaging volunteers for not-for-profits.
- Engaging employees to achieve organizational goals, more consistently support the brand, work more productively, and exhibit greater loyalty.
- Engaging employees to place added focus on quality, safety, and wellness.
These results and many more have been documented time-and-time again by the Enterprise Engagement Alliance, which was founded in 2008. They provide members and other interested parties with a wide-range of resources and data, much of which is available at no cost.
Customer engagement has become a key objective for many companies and organizations.
The primary goal, according Jon Nace of Rosetta, a global marketing agency, is to not only satisfy clients, but to also “gain a commitment from clients to interact with your brand… make a transaction and, ultimately, to choose your brand repeatedly.
Yet data shows that many B2B companies offer a generic customer experience with few, if any, targeted follow-up actions.
The three recurring challenges to engaging customers are:
- Lack of corporate alignment, as departments operate in silos, which leads to an inconsistent user experience and to one department not knowing what customers have done or experienced.
- Marketing focus and budget is allocated more to advertising and promotion rather than direct or online customer engagement.
- Passive lead management, often involving automated responses rather than customized, value-
Over the past several years much has been written about the emerging field of enterprise engagement, which is a framework for achieving goals through people in a measurable way.
Organizations that have embraced this approach have found it is not only possible to achieve almost any goal that involves people—customers, distribution partners, employees, suppliers, and even communities – but also, to the surprise of many, to realize a return-on-investment in the process!
As a good example, possibly you are familiar with The Engaged Company Stock Index (ECSI)?
Read the full article…
Several past posts have focused on the subject of engagement, with the ultimate objective being to engage the extended enterprise.
The challenge for many organizations has been how to foster and profit from engagement, whether it be with customers, channel partners, employees, suppliers, or the community. Some consider engagement to be among the soft-skills and haven’t pursued it from a return-on-investment perspective, while others have followed the traditional, though less-effective path of simply trying to make their workforce happier.
But as it turns out, “the soft skills are the hard part” and the data shows that a “happy” workforce is not necessarily a more productive one. So in order to truly benefit from an engagement effort it is important to incorporate specific goals and metrics – to take out the “warm-and-fuzzy.”
Along those lines, the emerging field of enterprise engagement is based on 20 years of research, and provides a straightforward framework for identifying what people need to do to accomplish specific organizational goals, and for helping and empowering them do it.