The correlation between engagement and profitability is vital; however, this relationship depends on each company’s understanding of what engages employees to their organisation.
“You have to understand what people want,” said Natalie Gleeson, Head of HR, LIWA Trading at a panel during a panel HRSE Summit & Expo. “It is important to understand what engagement means for you.”
Gleeson said that to create a proper culture, organisations must build “psychological trust” to be able to move forward within the business.
“There is an intrinsic motivation when people are all aligned on where they are going,” explained Gleeson during the panel titled Solving the productivity puzzle: Are employee engagement and profitability correlated?
Hala Disi, Manager, Employee Experience Department at ADNOC said that engaged people can help the organisation reduce cost and generate business profits. She explained that top performers don’t translate to being engaged employees.
“There are many top performers who give everything to the company, but their health will be impacted,” she said.
Sylvia Fernandes, the Head of Learning and Development, Centrepoint at Landmark Group have started the Landmark happiness movement to help drive engagement within the group.
“The more you are able to tap into their hearts and souls, the more you can focus on their development and well-being. It takes time, so an organisation is willing to invest; it takes a few years,” she said.
Pallav Popli, the CRO and Employee Engagement Evangelist at Vantage Circle explains that if employees are engaged, the profit margin increases by 2% on the net margin. Popli explained that companies have to have the right program to ensure employees are engaged.
“Enhance the employee experience in all the moments that matter to the employee, so we can achieve that outcome of employee engagement,” said Nancy Zakharia, the Global HR and Talent and Organizational Development leader, McDermott International, Ltd.
She added that employee engagement is an outcome of all the consistent efforts that the company puts in. Employees, according to Zakharia, must see that they are contributing to something bigger than themselves and that would drive the engagement companies are looking for.
Should you measure engagement?
HR technology can help assess the employee’s feelings towards the organisations. Through measurement, organisations can help address what concerns people, helping them to build connections and what can help the organisation move forward.
“Everytime a measurement is put in touch, it is interesting to change how people change by utilising this date,” said Fernandes. “I have seen measurements that can connect purpose with pride.”
It is important to understand why a business should measure employee engagement and what is the nature of the business. Firms who are measuring employee engagement need to understand if they are looking for a strategic value.
“All the factors [goals of the business] will help business to understand what are the right tools that will help the organisation in moving forward,” explained Disi.
“You know through people’s mood to know if they are engaged or not, you don’t need the measurement survey to know that, you need it to know the statistics,” she added.
Panelists highlighted that it is important to have the leadership accountability in driving the action after the outcome of any measurements and them being accountable for the goal that makes the difference.