4 Employee Engagement Trends That Leaders Need To Know
With rapid changes in technology, demographics and social norms/lifestyles, the workforce is changing at break neck speed. The workplace of today is definitely not that of just a few years ago, and one area that has changed most significantly is employee engagement. With historically low unemployment levels, the days of hiring employees who are excited to just “have a job” may be a vestige of the past, and motivating and retaining the best talent has become as challenging today as it is important. Arguably an organization’s success is highly correlated to its ability to retain top talent and maintain high levels of employee engagement throughout the organization so let’s examine four key trends every leader should know.
Trend #1 – Non-monetary benefits and perks have become increasingly important.
The simple truth is that it’s not “all about the Benjamins” anymore. Career Pathways Consulting President Barbara Mason shares her experience as a former HR executive. “Employees today are seeking an experience, not just a job.” As such, traditional compensation packages focused primarily on 401(k), bonus, etc. aren’t nearly as compelling as they once might have been, and flexible work options (e.g. job sharing, telecommuting, compressed work schedules and part time options) that enhance employee’s day to day experience are often more effective motivators. Furthermore, flexible work hours and telecommuting for example have become so commonplace that many employees have come to rely on them to support overall lifestyle, and benefits like paternity leave and wellness services – once viewed as exotic are now becoming much more commonplace.
There’s also increased focus on time away from the office. Society of Human Resource Management (SHRM) CEO Johnny C. Taylor, Jr. points out, “There’s been an interesting blending of personal and professional time. Thanks to technology work doesn’t have a distinct stop time anymore.” He prefers the term “work life integration” to “work life balance” because the truth for so many is that 50/50 “balance” is rare if not unrealistic. As a result, vacation days or other paid time off has become an extremely valuable commodity in most work environments.
Indeed, time has increasingly become the more valuable currency for many workers, and many successful employee engagement initiatives are based on that premise. Ranked #1 on Fortune’s 2019 List of The 100 Best Companies to Work For, Hilton has implemented various initiatives targeted at providing team members greater flexibility to support healthier work life integration. Hilton’s Chief Human Resources Officer (CHRO) Matthew Schuyler describes Thrive at Hilton programs:
While it’s tempting to view these perks as simply “nice to do,” organizations increasingly recognize the strong link between highly engaged employees and strong business results. Schuyler insists, “We believe that when you bring your whole self to work everyday we all win because your whole self is your best self.”
Trend # 2 – Agile work environments are becoming increasingly popular.
Employee engagement isn’t just about perks and benefits, but policies and processes that fundamentally enhance how work gets done can play a key role as well. With the fast pace of technological change and increasing prevalence of complex projects, many organizations are moving towards more agile work environments, methodologies and practices. Melissa Anderson, chief human resources officer at Duke Energy, explains that the company has shifted to an agile way of working, including redesigned work spaces to encourage collaboration, implementing stand up meetings, embracing minimally viable solutions and other agile best practices. One element of agile working is staying highly engaged with the customer throughout the process instead of waiting to the end to give them a final product. To that end, Duke Energy has developed a facility in Charlotte, NC -- Optimist Hall -- that invites customers into their space and supports high-energy collaborative work that not only engages employees but supports radical innovation and customer responsiveness as well.
Similarly, Nordstrom Chief Human Resources Office Christine Deputy recognizes the importance of maintaining a work environment that positions employees for success. “The retail environment is rapidly evolving, and you have to keep pace through critical investments in technology, people and physical spaces. Consumer trends and behaviors are constantly evolving, and companies need to be responsive to that. We want to be agile and able to reset priorities or refocus teams on a more regular basis.”
Trend #3 – Employees want to make a difference and expect more corporate social responsibility.
Increasingly, employees want to feel connected to a greater sense of purpose. That desire can manifest in different ways whether it’s wanting to know how their work directly impacts the corporate mission to gravitating to companies they feel are fundamentally making the world a better place. When Hilton’s Matthew Schuyler reflects on what today’s employees want, he shares, “There’s a ubiquitous desire to have an impact and feel they’ve made a difference whether it’s just helping guests have a great day or supporting broader sustainability initiatives.”
Similarly, Duke Energy’s Melissa Anderson adds, “Younger employees in particular often yearn for connection to a sense of purpose (e.g. sustainability). They want a sense of connection to the corporate mission and values.”
In response Duke Energy provides extensive opportunities for employees and retirees to participate in a wide range of employee driven volunteer efforts ranging from algae cleanup to beautifying local schools.
SHRM’s Future Insights Report confirms that Corporate Social Responsibility will certainly be a trend for the future as “employees are seeking out organizations with strong CSR programs and opportunities to volunteer.” SHRM CEO Johnny C. Taylor, Jr. adds “Employee activism is on the rise.” Recent protests by Wayfair and Amazon employees provide examples of the shift in employee expectations. Indeed, the employee/employer partnership seems to have taken on a different dynamic.
Trend #4 – Organizational culture is king.
Career Consultant Barbara Mason insists, “Prospective employees want to know how it feels to work there.” Indeed, organizational culture undoubtedly has a tremendous impact on employee engagement levels and this trend seems to be increasing as younger employees in particular bring higher expectations in this regard. “Employees want more transparency and accountability from their employer,” explains Christine Deputy. “Nordstrom has an inverted pyramid structure where employees who are the most important decision makers are at the top of the pyramid as they are closest to the customer and are empowered to use good judgment to serve them. Ultimately, if we create an exceptional employee experience, our people will create an exceptional customer experience.”
Duke Energy’s Melissa Anderson echoes the sentiment that employees are increasingly seeking more transparency as part of the corporate culture. “Increasingly, employees want to have a voice in how companies are run,” says Anderson. As the trend shifts away from long chains of command and complicated hierarchy, flatter organizations and more inclusive decision-making processes are requiring seismic shifts in organizational culture.
In collaboration with Globoforce work human, SHRM’s January 2018 report Using Recognition and Other Workplace Efforts to Engage Employees finds that organizations typically offer a wide range of programs to enhance organizational culture ranging from health/wellness (70%), learning and development (68%), and work/life balance (44%) among the most common to play and fun (29%), sustainability (20%), and meditation and mindfulness (13%) rounding out the bottom of the list. Indeed, taking steps to proactively enhance organizational culture consistent with employee needs and interests is a key element of long-term employee engagement.
Salesforce attributes their #2 ranking on Fortune’s 2019 List of The 100 Best Companies to Work For in part to their deliberate focus on culture. “We certainly don’t have it all figured out, but we have a working formula that has been successful for us: culture + technology + data = employee engagement,” says Ana Recio, EVP Global Recruiting, Salesforce. “We believe culture is our greatest differentiator and competitive advantage. We are highly intentional about our culture strategy – we write it down, we prioritize it, we build programs around it, we measure it, and we are constantly innovating on it.”
Indeed, engaging employees should be one of the most important goals for any leader or organization. While it can’t be overstated that key elements like having a supporting boss, meaningful work, and fair compensation will always be critical factors for attracting and maintaining an engaged workforce, it’s important to also realize that employee appetites often change in profound ways, and relying on the employee engagement practices of the past can be risky at best. Those companies who do it best aren’t recycling techniques and practices from the past bust instead are truly listening to employees and watching trends to build an environment where staff truly want to work…and thrive.
This article was written by Dana Brownlee from Forbes and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to legal@newscred.com.
