Archive for how to motivate employees
Talent Management – Grooming Your Best
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Talent Management – Are Annual Appraisal Results a Good Indication of the Employee’s Ability to Do Higher Level of Work?
By Lois Moncrief
Problem: Companies want to retain their best employees and prepare them for future top jobs in the company. It costs money and is a long term commitment to train and mentor these “high potential” employees. Therefore, companies are looking for ways to make the “first cuts” to limit the group to the most likely to succeed. Some companies use the results of employee annual appraisals to decide who is included in the first cut.
Using Annual Appraisals to Decide First Cuts
Some recent findings (Source: “How to Hang on to Your High Potentials”, Harvard Business Review, October 2011 p. 76) indicate that annual appraisals can be used to make the first cut in deciding who is considered a high potential.
On the surface this would seem to be a good starting point.
However, ability to do one’s current job well is not necessarily an indication that one can do a different, higher level job well.
In addition, the following variables could add to the difficulty of using the annual appraisals to decide that first cut:
-
Do all possible high potentials have the same manager
evaluating them using the same performance standards for each? -
Do all possible high potentials have the same job
description and the same performance standards? -
Are the performance standards of possible candidates
“subjective” (frequently vague with plenty of room for management
subjectivity) or “objective” (numbers that are hard to discpute? -
Is each manager truly objective and fair or does
he/she allow his/her biases and preconceptions to influence his/her
evaluations of each employee?
Using annual appraisals as one of the factors used to determine a first cut may be of some value. However, I would take this a step further rather than relying so heavily on the annual appraisals.
Note: USA Today Snapshot on September 27, 2011 “Are annual performance reviews an accurate appraisal for employee’s work? 61% say “Yes”; 39% say “No”
Source: Globoforce/Society for Human Resource Management survey of 700 human resource managers
Another Valuable Factor for Consideration
Here is my suggestion for another valuable factor for determination of first cut:
Give special short term assignments such as projects and leading teams to all qualifying candidates.
Give all interested and qualified candidates temporary assignments where they are leading teams on short term projects lasting 1-4 months. This gives each qualified candidate the opportunity to demonstrate his/her ability to perform at the higher level of work and demonstrate his ability to lead others.
Each qualified candidate should be give the same amount of time and the same level of project difficulty.
At the end of this period, all candidates can be evaluated by a team of managers on how well each of them did on their assignments. In addition blind surveys could be given to team members to evaluate the Team Leader’s effectiveness in leading the team and successfully completing the project.
Candidates who miss the cut should be counseled on areas for improvement and given opportunities for training in those areas and encouraged to try again later.
This process can be repeated if deciding managers would like to ensure that their selections for further training and mentoring are really the best candidates.
Advantages of Using My Suggestion for Another Factor for Determination of First Cut:
1. All qualified candidates may participate. Each should be given a short term individual project and also a short term team project that they can lead.
2. The short term projects of higher level work gives each candidate an equal opportunity to show what each of them are capable of doing. (Remember: keep the time the same and the level of difficulty the same in as much as possible).
3. Candidates select or weed themselves out by their performance on these short term projects that match closely the level of work they would be doing at these higher levels of future top jobs.
4. Other employees see who rises to the top through their own efforts and skills.
5. Each candidate sees how he compares to other candidates.
6. Giving all qualified candidates an opportunity to participate will lessen complaints and dissatisfaction with the process.
7. Candidates who miss the cut have reason and direction to continue working on their own career development and stay with the company.
Conclusion:
Adding performance on short term individual and team leader projects that are at the higher level of difficulty comparable to future top jobs gives decision makers a better look at the candidates and what they are capable of achieving in order to decide who makes the first cut and who doesn’t. This should result in saving organization money and time spent training the first cut group by ensuring the best candidates have been selected.
If you would like more ideas on Career Development for your top performers, critical skill employees and high potentials, get your copy of Module 6 – Career Development now.
Click here for more information.
Copyright (c) 2011-12 Lois Moncrief All Rights Reserved
7 Powerful Leadership Skills To Enhance Employee Motivation
Posted by: | CommentsBy Lois Moncrief
Good managers are good at getting employees to do their work.
Leaders are good at inspiring employees to do more willingly.
The two can be a great combination.
To make use of that combination, here are 7 Powerful Leadership Skills for Managers That Increase Employee Motivation and Job Satisfaction
1. Set a Good Example – this covers so much ground – be honest, be fair, be respectful and expect respect back. Put in an honest day’s work yourself. Don’t just talk the talk – walk the walk. Leadership by example is very powerful.
2. Performance Standards – have reasonable expectations of your employees and communicate those expectations clearly and award appropriately. Make sure you create a performance evaluation system that gives employees the opportunity to create a win for themselves by working hard and smart to exceed your expectations and a win for you (with increased productivity, etc.) . If you only have subjective elements that are moving targets and only you know and decide at a whim what meets, exceeds, or fails then you take away your employees’ motivation to do well.
3. Hold Your Employees Accountable – Make sure there are consequences appropriate to the situation – if you tolerate poor performance and/or poor behavior (without dealing with it in a timely manner) you create a very bad situation that only gets worse with time. It is a real employee motivation killer. Your good employees will have no reason to go the extra mile especially if they have to do it to make up for someone who is coasting, getting away with it, and being paid the same amount of money. Others will decide that they might as well stop or slow down working as there are no consequences. This situation is difficult to turn around.
4. Do Reward Those Who Do Well In Their Jobs – if you want the performance to repeat, then recognize and award it! This is a powerful employee motivator.
5. Keep Your Employees Informed and Share Your Vision With Them – have regular meetings to keep them informed and show them what you see for the future of the company. Give them opportunities to have input also. Having input into decisions creates buy in and a sense of ownership for employees. They will be more willing to put forth extra effort in their work when you form a “partnership” with employees and they move from “what’s in it for me?” to “what’s in it for us?”
6. Keep an Open Door Policy – Make it “safe” for your employees to come into your office and share whatever they want in confidence and then really listen to them. You will be surprised how much you will learn about your workplace that will help you become a better manager. I am not talking about encouraging gossip. I am talking about an honest exchange of information intended to improve workplace conditions. The input you receive will show you ways to improve employee motivation and employee morale when you understand the problems that are holding your employees back.
7. Don’t Let the Workplace be Ruled by Politics and the Good Old Boys – There are few things more de-motivating to the majority of your employees than this. This is poison to one of the strongest employee motivators – career development. All employees want to think that they can develop skills and acquire knowledge and work hard to give themselves a” fair” chance at a better future with the company. You take that away when you give promotions to “friends” rather than the most qualified.
The High Five
If you are a good leader, in addition to being a good manager, everything will go better. You and your organization will reap the benefits -
1. employee motivation will be high
2. employee morale will be high
3. employee performance will be high
4. employee retention will be high
5. employee job satisfaction will be high
You will have the high five!
Promotions for You!
All of this ensures that your own career will have more and more success because when you show that you can handle your current resources and responsibilities well – then higher management will have every reason to give you more responsibilities and resources to handle and that means promotions for you!
Copyright (c) 2010-12 Lois Moncrief All Rights Reserved
Engaged Employees
Posted by: | CommentsDon’t Lose Out – To Have or Not to Have Engaged, Motivated Employees
Now is the Time to Retain Those You Have and Consider Hiring More
by Lois Moncrief
Some think that the economy has seen the worst of this recession and may be starting to recover. So maybe everyone can breathe a sigh of relief.
Companies that cut the fat down to the bone to survive can now feel like maybe all that work and suffering was worth it. After all, the company made it through.
Companies unloaded their subpar employees (“bottom dwellers”) and can now look toward a brighter future and plan for that future.
As Finances Improve It is Tempting to Consider Hiring More Staff
You probably don’t want someone else’s rejects though, do you? You unloaded your subpar employees so did everyone else.
So you may have to go “head hunting” after someone’s else’s talent and steal them from your competitors. You may be able to do that with the right offer and other enticements.
BUT watch your back because your employees may be looking for better employment opportunities for themselves and/or companies and head hunters may be trying to lure your employees away from you.
It could turn into a “feeding frenzy” out there soon.
Now is the Time to Come up with YOUR Game Plan
First, realize the value of what you have. Good employees are like good customers. It costs money and its hard to find customers that will continue to buy from you and stay with you so if you have a good customer it is in your best interest to keep them happy and hold on to them.
The same is true with employees. After all, you spent money to find them, hire them, and train them, right? And now they have value to you because of their knowledge of your system and their ability to do the job. If they left, you would have to spend money to find, hire, and train a replacement who may not be nearly as good.
So How are You Going to Motivate Your Good Employees to Stay?
Is a bonus possible?
Is a raise possible?
Is promotion possible?
Is job enrichment possible?
Is employee development for future promotions possible?
Is there a mouthwatering project that they would love to work on that is available?
Recognitions?
Rewards?
Incentives?
Keep these options in mind but first talk to your good employees one at a time. Now is the time for subtlety. You are trying to find out how happy they are at work and what they need to be happier (and therefore stay) without coming out and bluntly asking them if they are planning to leave, etc.
If you know your employees and have cultivated a relationship with each of them, now is the time that is going to pay off because you will probably be able to tell by talking to them if any of them are dissatisfied and/or thinking of leaving.
This is a Good Time to be Proactive Sweeten the Deal They Have with You in Any Way You Can That is Legal and Appropriate for YOUR Situation.
Your good motivated employees are your engaged employees, your “movers” and “shakers”. You need them now more than ever as your company climbs out of the hole and prepares for a bright future. They are your innovators, your go-getters – you need them more than you realize.
You especially need them if you are among the companies who practice the usual mode of when the economy goes south, the first group we don’t need is research and development because we are in survival mode. So R & D is axed. Who are your innovators then? Yes, your “movers” and “shakers” step up to the plate.
So secure your own group of good employees before you start looking for more potential good employees. One additional benefit of keeping your good employees who are highly motivated is that they are “self motivated” meaning a lot less work for you.
The Hunt
The important thing to remember is you are hunting for good employees, engaged employees, motivated employees, employees that will fit in and not be a “problem” for you or your organization.
Have you been coveting that prize employee who works for your competitor? If your competitor is still weakened from the recession, that employee might be persuaded that your company looks more solid and a better risk for him, or you may be able to offer a better salary and better benefits.
If you do not have some possible employees in mind, sometimes your staff may know of possible workers who would fit in. Move with caution here but don’t discount any possibilities until you have checked them out.
“Hire Slow and Fire Fast”
“20% of Your Employees Will Cause 80% of Your Problems”
“An Ounce of Prevention is Worth a Pound of Cure” are True
(So Don’t Hire That 20%!)
You may want to re read the above bolded statements several times to make sure you have that firmly memorized.
Your goal is to hire workers who are very capable and either already motivated or could easily be motivated so take your time, check them out, interview them thoroughly. Hiring employees who are already motivated makes your life a whole lot easier.
Make sure their resumes are accurate. Better to find it out now then after they are on board. I always checked out references and former work listed and education, etc.
I would ask for and get 3-6 references for each applicant and I would call each one of them and really talk to them about the employee. I had very good luck doing this. Once I started hearing the same story from each of the references I began to think I was starting to see a picture of who I was considering hiring. I have found out a lot of good information from references that really helped me in screening and sifting through the candidates.
I also spent a lot of time checking out the accuracy of the information listed in the application and spent a good hour or more questioning each applicant in an interview.
Any time you spend to make sure you are making a good decision on whom you hire is time well spent. It will avoid a lot of headaches and wasted time later on.
Your Company’s Future
Right now as the economy gears up you may have some excellent opportunities to pick up some good and well motivated employees. Look for hints in their records to see if their records show they are “movers” and “shakers”, ask references about what the applicant has done, get the applicant in your interview to explain what he has done.
When you find good motivated employees, do what you can to hire them. Give them competitive incentives to come on board. You’ll be glad you did.
The more “movers” and “shakers” the better. They are your company’s future!
Motivating Employees through a Weak Economy (Part II)
Posted by: | Comments“Who Else Wants a PLAN for Tomorrow?”
Motivating Employees through a Weak Economy (Part II)
by Lois Moncrief
OK – we’re in the “great recession” according to a lot of bright minds. So how do we survive this and how do we plan for recovery?
When the economy is weak, everyone is worried. Business owners and managers are worried. Employees are worried. You are worried.
Now is the time for you, the manager, to talk, to inform. If you do not provide information – status, updates, and plans, then rumors will spread like wildfire. Employees can handle the truth a lot better than the silence where their imaginations are all that they have to guide them.
When Times are Tough, It’s Time to Talk
You should always be communicating with your staff. In troubled times, it is even more important to communicate – regularly and frequently with your staff. Your employees need to know the status of the company, what is being done to improve the present and plan for the future of the company. How secure are their jobs? What can they do to help?
The more desperate the times, the more important it is for management to hold frequent, regular meetings to answer questions and address employee concerns. You need to give your employees the latest information and to reassure them that everything is being done to improve the situation.
Regular and frequent (at least weekly) meetings should be scheduled. Employee questions should be answered as truthfully as possible in the areas that can be discussed with employees. Your employees need to hear the truth and be able to trust what you are telling them. They need to trust that you are doing the best you can to address the issues the company faces. You, as the manager, need to dispel the rumors and one way to find out the rumors is to listen to the questions being asked.
Not knowing what is happening can interrupt the ability of the employees to work efficiently. If you want your employees to be motivated in their jobs, keep them informed. They will be more willing to follow your leadership if they trust that you are being up front with them about what is happening to the company.
We’re All in This Together
Allow employees to participate in decisions that affect them. For instance, if it is necessary to downsize, furlough employees, or cut all employees’ pay by a percentage, then you can form a committee of management and employees to look at all the options and make recommendations to be considered by you. You, as the manager, will have a lot more “buy in” to the final decision if employees were able to participate in the decision making process.
The decision will be accepted as more fair and less arbitrary if a management-employee team has looked at all the options and made recommendations to senior management to consider for the final decision.
Copyright (c) 2009 Lois Moncrief Globebic LLC All Rights Reserved
How to Motivate Employees in a Weak Economy
Posted by: | CommentsHow to Motivate Employees in a Weak Economy
by Lois Moncrief
When Promotions and Raises Are Not an Option and Money is Tight
You know it is not easy out there in the economy right now for anyone – business or employees. Businesses are looking for as many ways as possible to cut back just to survive. Workers have fewer and fewer choices now for jobs. It is a depressing situation for many.
Company funds for “promotions” and “raises” are few and far between. Managers are asking, “how can I motivate employees now during this weak economy?”
So how do you, as a manager, keep your employees motivated?
Understanding Human Nature
Your ability to motivate employees starts with your understanding human nature. Of course, all people are different and what motivates one person is not necessarily what will motivate another. There may circumstances in a person’s life that are affecting his or her motivation – a recent divorce, a health issue, etc.
You will find that some employees are motivated by awards or positive attention (carrots). They respond to the pleasure of being recognized and appreciated.
Some of your other employees need a “push” to jump start them (sticks). They respond to the fear of loss ( of their job, of money, etc.)
You, as a manager, have to become a student of human nature and you must understand what your employees need to be motivated to do a better job.
The Overriding Truth at the Core of Each Person
But there is also one overriding truth that is at the core of every person that affects their relationships with others – at work and in their personal lives. It is a major factor why employees leave their jobs and couples divorce.
The truth is “almost” everyone needs to feel
“accepted”
“appreciated”
“valued”.
The Core of Most Employee Dissatisfaction
Most employees express dissatisfaction at work as simply not being “appreciated” or “valued”. When this dissatisfaction is strong enough then the result can be “quitting” and/or leaving for another job in a good economy.
In a poor economy, dissatisfaction in the job can result in a “slow down” of effort and less work quality. After all, if no one cares about the employee’s work why should he?
This, of course, is the last thing a company needs – “less effort” or less work product” from the dissatisfied employee during hard times.
And let’s fact it. It takes time to hire and train another employee. Who needs that?
Feeling accepted and appreciated does not require “raises” or “promotions” especially in a bad economy. There are other ways to accomplish this.
The Solution
You can keep employees motivated by giving recognition to good work and ensuring there are negative consequences for those who do not do their work. It is an ongoing process. It may require your attention but doesn’t have to result in money spent such as with “raises” and “promotions” during a weak economic period.
Copyright (c) 2009 Lois Moncrief Globebic LLC All Rights Reserved
Easiest Way to Motivate Employees in a Bad Economy
Posted by: | CommentsThe Easiest Way to Motivate Employees in a Bad Economy
By Lois Moncrief
You can motivate employees even in a bad economy without “raises” or “promotions”. Most employees can be motivated by being told or shown that they are “appreciated” and “valued”.
The Easiest Form of Showing Appreciation
The easiest form of showing appreciation is saying, “Thank You!” when the employee does a good job. To have the most impact, this must be done very sincerely and thoughtfully.
It must also be done as soon as possible after the good job is completed – the effect is lost the greater the time between the good job and the “Thank You” is said.
Different Ways To Do This
Face to Face
There are, of course, several ways you can do this. The easiest and least impactful is for you to go up to the employee and face them and say something like, “I really appreciate your effort and accomplishment on (insert the good job information here). Thank you very much.”
Be sure not to hurry when you say it or say it very casually but say it with true sincerity and looking at the employee’s eyes.
If this is done in front of other employees it accomplishes some additional motivation for the employee and his peers who are present to hear the thank you.
The employee has been honored and others know.
The employees who hear the “thank you” are more motivated to work harder for you as they also hope to be recognized in front of their peers.
Ceremony
For you to have an even larger impact, this can be handled as a ceremony or in a meeting – maybe even including you giving a “thank you” letter or a “certificate of thanks” to the employee for his accomplishment.
One to One Meeting
Another option is for you to call the employee into your office and thank him or her. This gives him “special one on one attention” and gives you, the manager, an opportunity to get some feedback from the employee on work issues and get to know the employee better.
Make It Stick
One last thought, I know you are busy but for this method of “thanking an employee” for his work to have a lasting affect it can’t be a rare and occasional thing neither can it be so frequent that it loses its value.
The point is you, as a manager, need to use this tool with consistency and frequency (as justified by the circumstances) to have a lasting impact on motivating your employees.
It is best to use this tool when your employee goes the “extra mile” in some fashion.
Do not use it just for your employee doing his job in an average way.
Copyright (c) 2009 Lois Moncrief Globebic LLC All Rights Reserved
Is Money a Motivator for Employees?
Posted by: | CommentsIs Money a Motivator for Employees?
by Lois Moncrief
The answer is not simple. The answer is “sometimes” depending upon the circumstances.
The only people I have heard who say that money is not a motivator are people who have plenty of money.
Show me an individual who is having trouble feeding his family and putting a roof over their heads and I will bet he will say that money is a motivator for him.
Do bonuses motivate? Yes, for a while but within months the employee usually goes back to business as usual. If he was a self motivator before he will be that again. If he wasted a lot of time and did not work hard he will revert to that behavior also.
Do raises motivate? Yes, for a while.
Do promotions motivate? Yes but there are other factors here – new responsibilities, a different and perhaps more challenging assignment. The other factors may actually be more motivating than the additional money involved.
Will potential employees take any job if the money is enough? Some will.
Are there jobs I would not take no matter how much money someone offered me? Absolutely.
Certainly, Money is a Big Factor But There Are Other Important Factors to Be Considered
For example:
- the working conditions,
- how one is treated on the job,
- how interesting is the job
- how dull or repetitious is the job
- how dangerous is the job, etc.
Can You Motivate Employees Without Money Being Involved?
Yes, you can. A highly desirable job can be very motivating.
Generally, being an elected local official in the USA does not pay very well. Some people take these jobs for the recognition and some because they want to serve.
Other jobs can be motivating for different reasons.
Teachers – someone who has spent their life wanting to teach others will accept a teaching position when they could easily make more money doing other work. Teachers willingly put in many extra hours evenings and weekends grading papers and preparing lessons without worrying about the actual pay per hour for all of this extra work because they like to teach.
Other service oriented work such as fire fighters and policemen are certainly not taking those positions for the pay but usually because they have a desire to help or serve others.
Some Ways to Motivate Employees That Do Not Involve Money
- Provide good working conditions and a good place to work
- Treat employees with respect and kindness (do unto others as you would like them to do to you).
- Use their appropriate given name and not some disrespectful name.
- Recognize and praise your employees for jobs well done.
- Remember, most people want to feel appreciated and valued. If your employees have earned appreciation and if you value them then show them. Saying, “Thank You” and “Please do this” rather than yelling “Do This” or saying “Hey you…”
- Show them you care about the working conditions, their concerns about the work and the jobs.
- Listen to their concerns.
- Allow them to participate in helping to shape the work and the future so they can have pride and ownership in their work.
- Match the right person to the right job – give a person a job they really love doing and can excel at and then praise them when they do excel.
You Are the Manager
None of this means allowing them to take advantage of you or you being a weak manager. Never allow that. You are the boss. You can be firm but still fair and caring. You can do all these things and still maintain your authority position as the manager or business owner. You can be benevolent and yet still be in control.
Based on the principle of reciprocity. you will probably find that your employees will appreciate you even more as a boss and will want to work even harder for you.
Copyright (c) 2009 Lois Moncrief Globebic LLC All Rights Reserved
Hang on to Your Rock Stars, Your Movers, Your Shakers – Your Engaged Employees
Posted by: | CommentsHang on to Your Rock Stars, Your Movers, Your Shakers – Your Engaged Employees
by Lois Moncrief
In the last two issues, I have talked about the Gallup Management Journal Survey from October 12, 2006 ( http://gmj.gallup.com/content/24880/Gallup-Study-Engaged-Employees-Inspire-Company.aspx ).
The survey mentions 3 types of employees: engaged, not-engaged, and actively disengaged. I said I would take the next few weeks to discuss how to deal with each type of employee. This week I want to talk about your engaged employees and how to retain them and seek more.The Gallup Management Journal Survey referenced above defines engaged employees as follows:Engaged Employees work with passion and feel a profound connection to their company. They drive innovation and move the organization forward.Wow! Your engaged employeesdrive innovation and move your organization forward!All companies want engaged employees even your competition.
How Are You Going to Keep Your Engaged Employees and Hire More Engaged Employees?
A few weeks ago in my July 8th ezine, I talked about the need to keep your engaged employees as the economy recovers from this recession as these are the people who are going to help power your cllimb out of the recession hole. I suggested you to take action to make sure you did not lose your engaged employees as your competitors might be trying to hire them away from you. I urged you to sweetened the deal you have with your engaged employees to entice them to stay with you.I also suggested that you might be able to pick up some more engaged employees especially any who may be working for your competitors who have been weakened from the recession.Those employees of your competitors may be looking for a better and more stable situation for themselves and your company may be just the ticket.
How to Keep Your Engaged Employees Who Help Keep Your Business Growing
The first place to start is to talk to each of them individually.Each of them has needs and wants that are important to them and may not be the same as what some of your other engaged employees.You want to give them what they want as much as you can. They have earned that.For example, consider the following list of motivators and perks you may be able to offer them:
Motivators (examples):
- Promotion
- Raise
- Attending a professional conference or seminar
- Mentored by a higher ranking employee for more challenging assignments
- Given a temporary assignment to a different, exciting, and challenging area.
- Given a temporary promotion to fill in for a higher ranking employee who has been given a temporary assignment.
- Assigned Project or Team Leader on an important but temporary project
- Additional Education for a possible promotion in the future.
- More responsibility
Perks (examples):
- Work from Home
- Flexible Work Schedule and Work Hours
- Stock Options
- Gym Membership
What Motivators and/or Perks on the above two lists would each of your engaged employees really like to have and can you give it to him or her?
A Word of Caution
Make sure that you give these perks and motivators to the truly deserving.These should not be for “friends” but for your best performers. You are sending a message when you give perks and motivators for engaged employees.You are recognizing and awarding your best employees and you are also sending a message to the rest of your employees about what it takes to be an engaged employee and what it takes to get these perks and motivators.If done fairly and correctly, you can motivate all your employees by recognizing your outstanding employees.If it appears that it is based on the good old boy or buddy system then you have found a way to demotivate a lot of your employees.
Remember
Any investment you make in your “engaged” employees is likely to come back to you multiplied in how they help your company. It is a win-win for all!
Consider Hiring More Engaged Employees
This is the time as the economy starts to recover to look at opportunities to pick up engaged employees who may be working for your weakened competitor by offering those employees a better deal.
Copyright (c) 2009 Lois Moncrief Globebic LLC All Rights Reserved
Stop Your Employees From Taking Your Profits
Posted by: | CommentsStop Your Employees From Taking Your Profits
by Lois Moncrief
In the last issue, I talked about the Gallup Management Journal Survey from October 12, 2006 ( http://gmj.gallup.com/content/24880/Gallup-Study-Engaged-Employees-Inspire-Company.aspx ).
The survey mentions 3 types of employees: engaged, not-engaged, and actively disengaged.
It further stated that 15% of U.S. Workers (20.6 million) are “actively disengaged” costing the U.S. Economy $328 billion. That is a cost of $15,922.00 for each “actively disengaged” employee.
U.S. Dept of Labor Bureau of Labor Statistics Press Release on April 16, 2009 ( http://www.bls.gov/news.release/wkyeng.nr0.htm ) reports the median wage per worker is $738 per week or $38,376.00 per year. Therefore each median “actively disengaged” employee making $38, 376 per year is costing the U.S. Economy and his company $15,922.00 or 41% of his wages. Please note that the BLS URL listed has been updated to include the second quarter and is now dated July 16, 2009 and the numbers have changed slightly.
The Gallup Management Journal Survey gives the following definition
“Actively Disengaged” – employees aren’t just unhappy at work; they’re busy acting out their unhappiness. Every day, these workers undermine what their engaged coworkers accomplish.”
Based on the Above Information It is Clear that Companies Like Yours Have a Problem That is Costing You a Lot of Profits – the Problem is Your “Actively Disengaged” Employees.
So now we know of a big problem – “actively disengaged” employees costing your company a lot of money but what is the solution?
I have known managers who would say, “I am too busy – somehow this will take care of itself. I don’t have time to deal with it.”
I have never seen problems like this go away or somehow disappear or resolve themselves without intervention. What is more likely is these types of problems get worse and spread. What once was a “mole hill” becomes a “mountain” sized problem with time.
Generally speaking “actively disengaged” employees fall into one or both of two types or problems. The first, is a “performance based problem” and the second is a “discipline” based problem. As I said there are some “actively disengaged” employees who are both.
Fire Fast?
It is tempting to say just fire them as fast as possible. Maybe.
I suggest you assess the situation first.
(Depending upon what country you live in and what company you work for your employments laws and options may be different. I am giving you what has worked for me and my circumstances.)
This is the time when managers are expected to be part psychologists and part human nature observer. To start you need to answer the following questions for yourself.
Is this a new employee or an employee who has been with your company a long time?
Is this a new problem or a problem that has existed that you have not dealt with?
What is this person’s history – have they been a good employee and this is a new problem?
Is this a reoccurring problem? Have you documented what has been happening?
First Step
A good first step is to have a one on one talk with the employee that centers on expected results in “performance” and/or “behavior” and how the employee is lacking.
Can the employee give you explanations and/ or reason(s) for the problem and what he sees as resolution.
This is giving them a chance to save face and deal with the problem before you have to.
This conversation requires a lot of tact on your part as you do not want to be seen as advising your employee in areas you are not qualified to do (psychological) or forcing the employee to reveal private information that he does not have to tell you.
The bottom line is you may or may not get any information that will help you understand what is going on. If you have a good relationship with the employee that is built on trust then you are more likely to get some answers that shed light on the problem.
Remember, you want to focus on the expected results for performance and/or behavior not the person.
Example for performance problem: maybe your performance standard requires your employees to make 100 widgets an hour and this “actively disengaged” employee is making only 75 widgets per hour.
Making only 75 widgets per hour is what you focus on and not anything else about the employee.
Example for discipline problem: Employees are expected to be to work at 8am each day and sign in immediately in a log book recording the time they arrived.
Your “actively disengaged” employee does not sign in and you have noticed this person arriving at 8:15 – 8:30am each day.
Motivate”Actively Disengaged” Employee?
No. In some cases you can encourage the employee to do better and sometimes that will work – for a while. Unfortunately, with these cases, more is usually required to get the desired response.
Document!
By the way, if you haven’t already done so – Document! Document! Document! Document the performance and/or discipline problems and any conversations you have with the employee relative to either of these problems. Make sure you date these and consider using email to send a copy to the employee of such conversations and what was agreed upon as a way of independently documenting time and what was said.
You, as the manager, are going to have to decide are there circumstances surrounding this situation that tell you it may be a short issue and that you can work with the employee to resolve it?
Example: The employee’s car is in the shop and he does not have reliable transportation to get to work but should have his car back in a week or two.
If he is a good employee normally then you probably want to give him some “slack” for a short time.
If this is a longer problem and an employee who has been a problem for a while and is disruptive and clearly costing you money then you really do have an “actively disengaged” worker and must do something quickly to resolve it.
Step Wise Process
The U.S. government, in its wisdom, has a step wise process for dealing with both performance and disciplinary problems. These steps are of increasing consequences for failure to improve until finally the employee is removed from his position or brings his performance or disciplinary problems up to expected results.
I personally agree wholeheartedly with the stepwise process giving the employee several opportunities for change and therefore the employee must own the responsibility for the outcome.
During this stepwise process, act in good faith to help the employee to bring his performance and/or discipline issues up to an acceptable level by giving him frequent feedback on his progress.
Bottom Line
The bottom line for you as a manager is you can not afford to ignore the problem. That sends a very bad message to all of your employees. They will lose respect for you and become resentful of you if you do not resolve the issue in a reasonable amount of time.
You, as a manager, need to deal as quickly with the problem to resolve it as you can. This “actively disengaged” employee is costing you a lot of money and is probably interferring with your other employee’s getting their jobs done because his performance and/or behavior are not acceptable.
After you have worked with the employee in good faith to show him what needs to be changed and gone through a step wise process of increasing consequences for failure then the next step should be clear. Either the employee has corrected the situation and can remain in your employment or the employee has not corrected the situation and must be released from employment.
copyright (c) 2009 Lois Moncrief All Rights Reserved
Please email me your comments and success stories to:lois@howtomotivateemployeesnow.com
How Much Money Are Your “Actively Disengaged” Employees Costing You?
Posted by: | CommentsHow Much Money Are Your “Actively Disengaged” Employees Costing You
by Lois Moncrief
Gallup Management Journal Survey
A recent ( October 12, 2006) Gallup Management Journal (GMJ) survey of U. S. Workers classified employees into 3 types:
“Engaged - Employees work with passion and feel a profound connection to their company. They drive innovation and move the organization forward.”(29% of US workers are “engaged” according to the GMJ survey)
“Not-Engaged – employees are essentially “checked out”. They’re sleepwalking through their workday, putting time – but not energy or passion – into their work.” (56% of US workers are “not-engaged” according to the GMJ survey)
“Actively Disengaged – employees aren’t just unhappy at work; they’re busy acting out their unhappiness. Every day, these workers undermine what their engaged coworkers accomplish.” (15% of US workers are “actively disengaged” according to the GMJ survey)
15% of U.S. Workers are “Actively Disengaged” Costing the U.S. Economy $328 billion
Further, “GMJ’s 2006 Q2 survey found that, of all U.S. Workers 18 or older, about 20.6 million – or roughly 15% – are actively disengaged. Gallup estimates that the lower productivity of actively disengaged workers costs the U.S. Economy about $328 billion.”
The $328 billion were average data points collected quarterly Q4 2000 through Q3 2002 and then every other quarter thereafter from 2003-2006 so the cost is fairly consistent at $328 billion over those quarters from 2000-2006.
Source: Gallup Management Journal, “Gallup Study: Engaged Employees Inspire Company Innovation” October 12, 2006. http://gmj.gallup.com/content/24880/Gallup-Study-Engaged-Employees-Inspire-Company.aspx
Each “Actively Disengaged” Worker Costs His Company About$15,922.00
If you take $328 billion and divide it by 20.6 million actively disengaged workers, you find each “actively disengaged” worker costs his company an average of $15,922.00.
U. S. Department of Labor Bureau of Labor Statistics Press Release April 16, 2009
According to a recent press release (April 16, 2009) from the U.S. Dept. of Labor Bureau of Labor Statistics, the usual weekly earnings of wage and salary workers for the first quarter of 2009 are: “Median weekly earnings of the nation’s 100.2 million full-time wage and salary workers were $738 in the first quarter of 2009.”
Source: http://www.bls.gov/news.release/wkyeng.nr0.htm
$738 x 52 weeks gives $38,376.00 per year for a median salary or wage.
The Median “Actively Disengaged” Worker Costs His Company 41%of His Wages in Lost Productivity
For the actively disengaged worker with a median salary of $38,376.00, $15,922.00 is 41% of his salary or wages. So that worker is costing his company 41% of his salary or wages.
How Much Are Your “Actively Disengaged” Workers Costing You?
- How many actively disengaged workers do you have working for you?
- What % of their salaries is your company losing every year?
- How much are they costing your company?
- How long can your company afford to go on before you deal with your actively disengaged workers?
- What if, instead of costing you $15,922.00 in losses, you could either get that worker to contribute productively his share to the company or if not, he’s out the door?
- In fact, what if you could do that with each of your 15% “actively disengaged” employees?
What if You Could Make the 56% of “Not Engaged” Employees You Have More Productive?
What if you could move the 56% of “not engaged” employees you have into the top group of “engaged” employees making the “not engaged” employees more productive?
How can you use the top group of your 29%” engaged employees” to bring your other employees’ production up?
copyright (c) 2009 Lois Moncrief All Rights Reserved
