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Engaging employees increases bottom line

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10th May 2006

Engaging employees not only helps reduce staff turnover but also has a direct relationship with the bottom line business results said Mick Bennett, General Manager for Hewitt Associates at the Chartered Accountants Business forum in Perth earlier today.

According to Hewitt Associates annual survey of Australian and New Zealand 40,000 employees and 160 organisations it is crucial for businesses to align people practices with business imperatives.

“It is not just the role of the HR department to engage in employees. It is the responsibility of the leaders of the organization. ‘Best Employer’ organisations result in businesses that have satisfied customers, exceptional business performance and engaged employees,” said Bennett.

Characteristics of best practice leaders:

Hold a deep belief that people are their greatest asset

Deliver on their promises to their employees

Are champions of their organisation’s values

Create a compelling picture of the future

Instil a culture of accountability

Grow and stretch their people

Are open and involved

They represent a strong personal and leadership identity

Balance the people and business agenda

“Employee benefits such as Friday drinks or weekly massages will not increase engagement, only communication leads to engagement. And positive leadership engagement by the CEO needs to be mirrored and reinforced by line managers,” said Bennett.

Leaders provide clarity and direction for employees. In prosperous regions such as West Australia and in industries where there is a skills shortage it is vital for organisations to consider how to maintain the level of engagement when an employee joins an organisation.

“CEOs need to make the time to engage with their employees. Rather than be considered as a nice-to-have, employee engagement can increase customer as well as staff retention,” said Bennett.

Hewitt Associates is looking for companies to be part of the 2006 ‘Best employer’ survey. If your organization has more than 100 employees and has been established for two years, go to www.hewitt.com for more information.