AMCham Insights Employee Engagement Article

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10.11.15
What drives employees today to choose a certain employer? How can a company make itself stand out to prospective employees?
 
Most of the time, employees choose a certain employer in order to advance their career in some way, so it is important to know what a company has to offer from the employee’s point of view. For example, many employees are concerned about learning on the job, so they will be attracted by a clear and comprehensive training or mentoring program. Others are focused on work / life balance, so they will look for an employer who understands the competing demands of family and job obligations and has strategies in place to support employees when they feel this kind of pressure. Others are attracted to work that matches their personal values and so will choose a company that has a strong record in corporate social responsibility, is located close to public transportation hubs, or offers opportunities for physical fitness, etc. The way to communicate these kinds of company characteristics to potential employees is to build marketing points into recruiting materials, highlight them on the corporate website, and invite veteran employees to engage in open dialog with recruits during the interview process.
 

What are the core components of a solid employee engagement strategy? How important is employee engagement as a component of an overall HR strategy?

 First of all, unless the company strategy is to have high turnover, employee engagement is a critical component of overall HR strategy. Kidding aside, it is well known that employees that are working on tasks they find important, that are aligned with their values, and where they feel supported as they achieve challenging goals are more likely to perform according to or to exceed expectations than employees that feel they are taken for granted or are kept ‘out of the loop’. The core components of a solid employee engagement strategy include setting clear and achievable goals, motivating employees by engaging in a two-way conversation about how those goals will be achieved, and guiding performance through current and constructive feedback. Many people think employees will become more engaged through higher rewards, but in fact, the most successful companies rarely are the ones who pay the most. Strong leadership that creates a sense of purpose and belonging on the team is much more effective. Reward people according to standard market practice so people do not feel they need to shift companies in order to advance in their career, and save extraordinary rewards for extraordinary efforts.
 

What are the benefits of good employee engagement for a business? What role does employee engagement play in retention and the war for talent?

 People join a company with excitement and anticipation about what they will do and achieve in their new position. But, if they become disillusioned, or if they find their work does not match their values, or if they see it will take a very long time to reach their individual goals, they will go where they believe they can realize their personal goals Also, much of the time, when people leave a company it is to escape their boss- maybe they feel they are not supported enough, or they are not learning enough to prepare them for their next steps in their career, or they feel they are being asked to do more than they can handle. One of the best ways to engage employees is to support the leaders in the company to be stronger. That way the leaders will know how to develop relationships with their team members, where to focus efforts in ways that motivate people, and what to do to stay on top of what concerns, distracts, or derails their employees. 
 
Leadership efforts to spend the time to develop a clear and achievable strategy for the company, to translate that strategy into individual goals, and to communicate the overall importance for each person to achieve those goals reap high rewards. This may not be easy to do, but companies that can show a clear link between the effort of their employees and the success of the company are more focused on the most important work and spend less time on non-value added activity. Better employee engagement may take some time to establish, but it results in less stress, less sick time and turnover, and more energy spent on getting things done.
 

At the same time, what are some of the common challenges in driving employee engagement?

For some managers, it is tempting to hold on to knowledge the team needs to have in order to understand the full context of the situations they face, so they keep some things confidential when in fact that information would be more useful if it was shared. One size does not fit all and so the same efforts do not necessarily motivate everyone. It is necessary to ask employees what they want and to support the different needs of different employees in order to fully engage everyone, and this means managers need to spend more time talking to their employees and less time directing them. It is easier to give people bonuses or higher salaries and expect that will be enough to engage them. But to really win the hearts of employees, they need to feel as if they have a personal stake in the success of the company and the team. Building this sense of accountability means managers might have to have uncomfortable discussions, learn new ways to lead others, and pay attention to what people are doing without necessarily telling them what to do.
 
 
 Overall, how would you rate the adoption of employee engagement strategies in the China market? Is there more that companies here can be doing?

 Overall, I would say companies in China are in the early stages of evolving to a more global way of engaging employees. For many years, companies had a more paternalistic approach, and mostly that was OK with employees. Today’s employees are more independent though, and they expect to have a more give and take relationship with their employers. They also have more choices about where they can work, so they have the freedom to choose to work for companies that are more aligned with their personal values. And, since they grew up in an environment where they were pushed to achieve in school, they bring those ambitions to work. Establishing career ladders, providing ample learning opportunities, and supporting effective leadership and mentoring programs are critical to keep employees engaged and productive. There may be less intense focus on these activities in more mature markets, but in the rapidly growing business environment on China, focusing on the fundamentals of employee engagement is the key to building strong, motivated, and successful companies. 

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