Why should you care about Employee Engagement? Because it fuels a virtuous cycle that drive customer experience and business success. Take a look…
Did you know that engaged employees are really, really valuable? Temkin Group’s research shows that when employees are highly engaged, they are much more likely to behave in ways that help your organization:
They stay late at work if something needs to be done
They help other people
Do good things for the company, even when it’s not expected of them
And they make recommendations about improvements
Don’t you want employees like that on your team?
Our research also shows that companies with more engaged employees deliver better customer experience.
That’s the first connection in what we call the Employee Engagement Virtuous Cycle.
Here’s how it works:
Engaged employees create great customer experiences, which in turn create more loyal customers. This leads to stronger financial results for the organization.
With happy customers, employees are prouder of their work, which lowers turnover rates. Collectively, this improves financial results and provides more resources for investing in employees.
Are you doing enough to fuel the front end of this virtuous cycle?
To raise employee engagement in your organization, visit Temkin Group, the employee engagement experts at StartWithEmployees.com.
It turns out that having a customer focus isn’t only good for customers, but it’s also good for employees and financial results.
We asked more than 5,000 U.S. employees to identify what they felt was the top priority for their senior executives. We also asked them about their work efforts and the financial performance of their organization. As you can see in the chart below:
When senior executives care the most about customers’ needs, employees try their hardest and the companies have the best financial results.
The next best place for senior executives to focus is on fulfilling the organizations mission.
When senior executives are mostly focused on generating more profits, they end up with the worst employee and financial performance.
The bottom line: Focus on your customers, not on your profits.
In this infographic, we examine 12 factoids on CX ratings, people, and leadership. Below the infographic you’ll find links to download the graphic (as well as a poster), along with links to the referenced content.
Here are links to download different versions of the infographic:
We just published a Temkin Group report, Lessons in CX Excellence, 2018. The report provides insights from six winners in the Temkin Group’s 2017 CX Excellence Awards. The report, which has more than 70 pages of content, includes an appendix with the finalists’ nomination forms. This report has rich insights about both B2B and B2C customer experience.
Here’s the executive summary:
This past November, we named six organizations the winners of Temkin Group’s 2017 Customer Experience Excellence Award – AARP, Allianz Worldwide Partners, Century Support Services, Nurse Next Door Home Care Services, Reliant, and Sage. This report:
Highlights specific examples of how these companies’ customer experience (CX) efforts have created value for both their customers and for their businesses.
Describes winners’ best practices across the four customer experience competencies: purposeful leadership, compelling brand values, employee engagement, and customer connectedness.
Includes all of the winners’ detailed nomination forms to help you collect examples and ideas to apply to your own CX efforts.
As many readers of this blog know, Purposeful Leadership is one of Temkin Group’s Four CX Core Competencies. How do leaders demonstrate this characteristic? By mastering what we call the 5 P’s of Purposeful Leaders: Persuasive, Passionate, Propelling, Positive, and Persistent.
In a recent post, we showed how Purposeful Leadershipaffects the behaviors of employees. We decided to take a look at how the impact differs across ages of employees. To do this, we segmented more than 5,000 U.S. employees into two groups, one that said that their boss demonstrated all five characteristics of Purposeful Leadership (about 55% of the total) and those who’s boss did not.
We then examined the percentage of each group who say that they “always” or “almost always” try their hardest at work. As you can see in the chart below:
Younger employee are most effected. Looking at the impact of Purposeful Leaders between both groups, we find the largest gap for the youngest employees (27 %-points).
Older employees try harder. For both groups of employees, the percentage of employees who try their hardest increases with age.
The bottom line: Purposeful leadership is gaining importance.
Temkin Group has labelled 2017 The Year of Purpose, so we have been examining the topic of purpose across many different angles.
One of the areas we are interested in is the impact that a person’s level of purpose and meaning has on how they behave as an employee and customer. It turns out that it has a pretty significant impact in both of these areas.
In our latest U.S. consumer benchmark study, we asked a number of questions about people’s attitudes, employee behaviors, and company loyalty. As you can see in the chart below, people who believe that they lead a purposeful and meaningful life are better employees and more loyal customers.
The bottom line: Purposefulness creates positivity across all aspects of life.
A company’s culture reflects the attitudes and behaviors of its employees and influences almost every aspect of the employee journey and experience. However, despite its importance, many companies fail to orient new employees to their culture during onboarding. Rather than helping new hires form long-term connections with the organization and its values, companies often use this time to teach new hires about the organization’s processes. Companies instead should use their culture as a focal point during recruiting, hiring, and onboarding and then continue to emphasize it as employees acclimate to their roles. This report:
Explores how companies can align new employees with their culture.
Describes how companies can infuse culture throughout the four stages of the new hire journey: Establish Cultural Fit, Set Behavioral Expectations, Reinforce Positive Performance, and Prioritize Sustaining Culture.
Shares examples of best practices from a number of companies, including Adobe, Crowe Horwath, LexisNexis, Oxford Properties, Touchpoint Support Services, and Safelite Autoglass.
Provides a checklist companies can use to execute their culture-focused onboarding program effectively.
Download report for $195+
Here are the best practices described in the report:
While our research typically focuses on the work environment that drives employee engagement, that’s only one part of the picture. To fully understand employee engagement, it’s important to look deeper at the people who are our employees. Why? Because employee engagement is driven by two things: Human Attitudes & Work Environment.
What do I mean by “Human Attitudes?” Your employees are people who have a set of feelings and beliefs that they bring with them to work. These underlying attributes may have absolutely nothing to do with their work. Here’s some data that looks at the level of employee engagement based on two sets of attitudes, the degree to which people feel happy, and the degree to which they feel loved and appreciated. (Note: we used the Temkin Employee Engagement Index to assess the level of engagement).
As you can see, people who are typically happy and those who feel loved and appreciated are significantly more engaged employees than other people. While their work may contribute to these feelings, it’s more likely that they feel this way because of their underlying perspectives and as a result of what’s going on in the rest of their lives.
The first implication of this insight is that you need to do a better job of recruiting and screening for people who are more likely to be engaged. This data shows that more positive people tend to be more engaged employees. So look for those people when you are hiring.
Another implication is that organizations need to deal with the underlying attitudes of their employees. In addition to applying traditional employee engagement strategies, you need to help employees develop more positive attitudes. There’s a lot of good resources to tap into from the Positive Psychology movement.
Engaged employees are critical assets to their organization. It’s not surprising, therefore, that customer experience leaders have more engaged employees than their peers. To understand how companies are engaging their employees, we surveyed 169 large companies and compared their responses with similar studies we’ve conducted in previous years. We also asked survey respondents to complete Temkin Group’s Employee Engagement Competency & Maturity (EECM) Assessment. Highlights from our analysis of their responses include:
Front-line employees are viewed as the most highly engaged.
More than 70% of companies measure employee engagement at least annually, yet only 45% of executives consider taking action on the results a high priority.
Sixty-four percent of respondents believe that their social media tools have had a positive impact on their employee engagement activities, an increase from last year.
The top obstacle to employee engagement activities continues to be the lack of an employee engagement strategy.
While only 23% of companies are in the top two stages of employee engagement maturity, this is still an increase from last year.
When we compared companies with above average employee engagement maturity to those with lower maturity, we found that employee engagement leaders have better customer experience, enjoy better financial results, are more likely to take action on employee feedback, and face fewer obstacles than their counterparts with less engaged workforces.
You can use the results of the EECM Assessment to benchmark your own employee engagement activities.
Download report for $195+
Here’s an excerpt from one of the 17 graphics that shows the maturity levels of employee engagement efforts in large companies and their effectiveness across five employee engagement competencies:
While the trend is great, there’s still a long way to go. I’d love to see many more human resources organizations recognize that employee engagement is one of their strategic objectives (see my post, HR Execs: Wake Up To Employee Engagement!).
As this area has gained attention, there’s been a troubling misunderstanding creeping up in the dialogue. People are confuscating Employee Engagement with Employee Experience. They are not the same.
It’s important to understand the distinction, because only one of them is the foundation to success. So let’s look at each of them:
Employee Experience deals with how employees enjoy their job or environment. It deals with making things fun and enjoyable. People often say things like “let’s treat the employees’ experience like we do the customers’ experience.” They think of ways to make the work place more exciting and fun, by adding things outside of work like pizza parties and gift swaps. Employee experience can be measured by questions like “how much fun do you have at work.”
My take: This is a very nice thing to do for your employees, but it is insufficient to drive success.
My take: This is a requirement to drive long-term success.
If you want to build a high performing organization that consistently delivers great customer experience, then you need to focus on employee engagement. If you happen to improve employee experience along the way, then that’s an added bonus.
The bottom line: Focus on employee engagement, not employee experience.
P.S. Based on some great comments to this post, I want to clarify something. Improving employee experience is not a bad thing. But a company should not be focusing its energy on improving employees experience just for the sake of that improvement. The ultimate goal should be in creating an engaged workforce, not just ensuring that employees enjoy their work experience. See my post: Are You Creating Engaged or Entitled Employees?
For the sixth year in a row, Temkin Group used the Temkin Employee EngagementIndex to analyze the engagement levels of more than 5,000 U.S. employees. We found that:
Sixty-three percent of U.S. employees are “highly” or “moderately” engaged – the highest level we’ve seen in the six years we’ve conducted this study.
Companies that outperform their competitors in both financial results and customer experience have more engaged workers.
Compared to disengaged employees, highly engaged employees are almost five times more likely to recommend the company’s products and services, they are over four times more likely to do something that is good, yet unexpected, for the company, they are three times more likely to stay late at work if something need to be done, and they are over five times more likely to recommend an improvement at the company.
Companies with 501 to 1,000 employees have the highest percentage of engaged employees, while companies with 10,000 or more employees have the lowest.
On an individual level, our research shows that the most highly engaged employees tend to be those who regularly interact with customers, who are highly educated, who earn a high income, and who are executives.
Forty-nine percent of construction employees are highly engaged, the highest level of any industry. At the other end of the spectrum, only 20% of employees in public administration are highly engaged.
Given the significant value of engaged employees, we recommend that companies improve engagement levels by mastering our Five I’s of Employee Engagement: Inform, Inspire, Instruct, Involve, and Incent.
Download report for $195
Here’s what we found when we examined year-over-year results for the Temkin Employee Engagement Index:
If you want to recruit the best employees, make sure that your organization has an inspiring mission.
Temkin Group recently surveyed 10,000 U.S. consumers about their preferences for a new job. Respondents chose one of these three attributes: the company’s mission, pay level, or new boss.
An inspiring mission was the most popular option–and it wasn’t even close. Here’s what people selected:
Inspiring mission: 54.4%
Above average pay: 26.9%
Great boss: 18.8%
We also examined the responses across age groups. As you can see below:
Mission is the most important attribute for every age group
65- to 74-year-olds is the group that cares the most about the mission
25- to 34-year-olds is the group that cares the most about their pay
25- to 44-year-olds is the group that cares the most about their boss
Why does Temkin Group care about this? Because attracting the best employees is one of the first steps in building employee engagement, which is one of our Four Customer Experience Core Competencies. Also, as we celebrate The Year of Purpose, we will continue to highlight the importance of meaning for both people and organizations.
The bottom line: Make your mission more inspiring.
Companies across a number of industries create and deliver customer experiences (CX) through a combination of traditional employees and other workers who they do not directly control – such as contractors or employees of channel partners or outsourcing partners. Despite not being directly employed by the company, these other workers – who make up what Temkin Group calls a “tethered workforce” – still play a critical role in delivering experiences that represent the company’s brand. However, tethered workers differ from typical full-time, corporate employees in ways that pose challenges to brands’ efforts to align these workers with their customer experience goals and objectives. In this report, we examine how brands are tapping into these tethered employees. Here are some highlights:
Companies must manage three connections: 1) Between themselves and their partners that employ the tethered workers, 2) Between their partners and the tethered employees, and 3) Between themselves and the tethered workers.
We share over 30 examples of best practices from across Temkin Group’s Five I’s of Employee Engagement: Inform, Inspire, Instruct, Involve, and Incent.
We offer brands a blueprint for engaging tethered workers with key things to think about across the three connections of tethered workforces.
Download report for $195
Here are the 17 best practices described in the report: