Skill Gap: Why is it still a Major Concern (Part 1)

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Although the latest economic recession has ended a few years ago, the rate of unemployment in the United States is still high. This still remains a problem, even though employers are in a continuous struggle to fill certain job posts, most of them in the area of middle-skills jobs: nursing, computer technology, high-skill manufacturing, etc. These vacancies require education at a postsecondary level and in some special cases, even college math degrees or courses. At the moment in the States, 69 million people are involved in middle-skills jobs, which represent about 48% of the workforce. The skill gap is obvious.

The U.S. Bureau of Labour Statistics doesn’t do estimates on vacancies based on skill category, but if we were to combine the data from the government on education and the training requirements needed, it can be discovered that almost 25 million, or 47%, of new jobs that will appear from 2010 to 2020 will be in the category of middle-skills.

CEO’s and HR leaders need to figure out which method of training people will help their organisations fill those vacancies, thus mending the wage stagnation that has engulfed the country and limiting the gap between households with high and low income.

Given the current work climate, companies should take charge and develop programs in which workers can be capable of filling the skill gap. To be realistic, such a thing can happen on a global scale only if companies cooperate with each other, with educational institutions, with unions at both regional and national level.

Businesses rarely disclose any information regarding their expenses on training programs, and when they wish to cut costs, their first target is represented by HR investments. Nowadays, many organisations shy away from training investments because they fear that their competitors won’t make the same investments and they will also steal their workers. In order to minimise this risk, combined investment is recommended. Such collaborative work has been put into effect in a number of countries such as the U.S., UK, Australia and Sweden, with great success.

Read also: Top 7 HR Trends for 2017

Things have greatly shifted since we’ve entered the 21st century. For the majority of the 20th century, people had two ways in which they acquired their skills and prosperity. The first one is, obviously, on the job. Organisations promoted people from within, and it enabled their employees to develop towards higher-level occupations. Unions were invested into negotiating specific career ladders that were directly connected to seniority and skills, and also accompanied employers at an industry or occupational level in order to host various training programs and apprenticeships. Having such a system in place guaranteed a constant flow of talent, very well equipped with skills of the highest level.

A second approach to acquiring skills was represented by college. The American dream has always represented an ideal for any fellow American. Young people across the U.S. were told that in order to achieve the highest peaks of the American dream was to follow the rules and study hard in a field that best suited their talents and interests. However, problems always arise. People with degrees in liberal arts have seen a significant drop in job opportunities. The numbers speak for themselves: only 15% of college graduates have majored in math, science, engineering and technology. This percentage has been a constant for over 2 decades although demand has grown exponentially.

This article is part of a series. For part 2 click here.

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How to attract and retain great salespeople

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In the age of the customer, the consumers have gained significantly more knowledge and control over the sales process than any time in history – they have a huge variety of options available, they are digitally active and they are less dependent upon the sales representatives, and their expectations match up their investment. While the customers’ habits and behaviours have changed, the universal sales strategies have remained basically the same.

In a recent research study done by Cranfield Management School, it has been revealed that 90% of the people working in sales are facing major difficulties in making an effective pitch. That is why good sales reps represent a competitive advantage for every business, if they have them.

Also in regard to people in sales, David Thorp, the director of research and professional development at the Chartered Institute of Marketing had this to say: “First-rate salespeople are focused and can target potential customers effectively. They understand which customers have the money, authority and need to buy from them.” He continued stating that “They also build strong relationship with customers, which is key to customer retention. It is worth investing the time and the money in getting good staff, as they will be able to add much more to an organisation’s bottom line than poor sales staff, which can be a liability.”

The selection you make regarding sales people will determine the success of your organisation. If you are willing to invest time in the selection process, this will solve half of the sales job. Competent sales reps know how to highlight the numerous benefits of your product or service. These people are skilled in detecting possible prospects and quick in surmounting any objections that may come along the way. Sales professionals are able to sell effectively in the most adverse situations and even in the world of cut-throat competition. What makes them so efficient is the fact that they possess an internal drive towards achievement, a fantastic sense of seriousness to sort everything out and accomplish their goals, even when the external factors are detrimental to their cause.

As mentioned above, the selection process is very tedious, but extremely important. This means that even if you find a good sales rep that doesn’t mean you found the most suitable candidate for your organisation. When selecting, there are two key aspectsthat you must take into account, besides the person’s capability to sell:

  1. Is that person compatible with the company’s culture? – If the candidate and the rest of your team do not get along, then it’s crystal clear you do not wish to hire that person. As soon as your sales numbers grow, this will involve support from the other departments in your company. If the departments despise sales, it is absolutely certain you won’t get the profit you expect due to the fact that the sales department won’t receive the help it needs.
  2. Does the candidate understand what exactly are you selling? – If a sales rep doesn’t understand what your organisation is selling, how can you expect them to sell anything? Although they may get lucky a few times, you must be certain that they acknowledge what the company is selling.

In order to get an idea of what a good salesperson is, I recommend you start evaluating every encounter you have as a customer. What are those people doing that makes you feel comfortable about doing business with them? Learning to detect good sales reps represents the first step and it is of upmost importance.

Thoroughly Evaluate your Sales Team

Although sales are an area where results speak for themselves, you must also evaluate the process through which your team does make the sale – it is obviousthat if they don’t have good results, something in their sales process is not working accordingly.

In order to solve this problem, evaluate how your team implements every sales process from start to finish. Afterwards, you can properly assess where they are struggling, why, and help them through coaching. It will greatly benefit them by developing their skills to overcome each step necessary them develop their skills for each step necessary.

Use a Sales assessment for your team

For a proper assessment of your sales force, you need to weigh in your current staff, but also candidates you wish to hire. If you do this in an effective manner, you will know for certain that every sales rep you bring in will possess all the necessary personality attributes to perform at a top level and have high sales results.

One of best ways, if not the best way, to evaluate your staff and candidates is to use assessments such as: GR8 Sales, GR8 Teams and GR8 Engagement. The questions and issues raised by these evaluations will help you determine if the candidates have at least one of these traits:

  • Building Client Relationships
  • Sales Process Management
  • Understanding clients’ needs
  • Enthusiasm
  • Loyalty
  • Respect
  • Perseverance

If the candidates you evaluate score high in at least one of these traits, that means he is a driven individual and there is a great amount of opportunity for success as a “hunter” representative of your sales department. Afterwards, you can have another interview with him in order to be sure that person fits to your organisational culture, thus making an informed decision about a future employee.

How to Improve your Sales Team Results

Offer them as much constructive feedback as possible. You cannot expect your team to improve if they are unaware of the mistakes they are making. This is the reason why it is imperative to have regular meetings with them to offer them support and advice on how they are performing.

When you offer your thoughts on their progress make sure you include both the positive and the negative feedback. In order for your team to improve, they must realise that besides their strengths they also have weaknesses. Nonetheless, keep in mind that negative feedback is for one-on-one meetings only. If you criticise a salesperson in front of his colleagues, he may start resenting you, start working poorly and have a low level of engagement. If this takes place one too many times, high employee turnover is right around the corner, and it can cost your organisation a large sum of money.

Present your team with the best tools and resources for them to thrive

After you evaluate and assess your sales team, by now, you should have a clear idea regarding the areas they are struggling at that moment. Given the fact you have this information, search for the right tools and resources your team requires in order to help them surmount the deficiencies they are encountering.

Let’s say one of your employees is experiencing problems with productivity because he cannot allocate the necessary time for sales calls. For him to overcome this problem, you can research for the right type of scheduling programme to best fit your team’s needs. However, there are situations where your whole team can struggle with productivity. In this scenario, you may have to analyse their working process and establish which tasks can be automated. Implement the automation, leaving your team with more time to sell and less time on unrelated tasks.

The examples I have presented you are just a few ideas of how you can improve your team’s performance, but be aware of the fact that each sales team and person is unique and have their own particular needs. So as to pinpoint the exact problems faced by your team, remember to communicate with them constantly and assist them in finding the best solutions for the best sales results.

Assessing the salespeople, developing them and aligning the sales strategies should become a top priority for the organisations willing to thrive in the customer’s age. Great People Inside helps you find the right talent, the best fit for the job and your organisation. It requires deep knowledge of your own organisation’s culture and keen understanding of the candidate’s personality, strengths, interests, work style and other characteristics. Our technology and solutions will do the work for you, helping you find employees who can flourish and reach the highest performance required to constantly bring your company forward.

Request a free demo:

 

 

 

Sources:

www.marketingdonut.com.uk

www.entrepreneur.com

www.nasp.com

www.salesdrive.info

www.quicksprout.com

Overcoming the Recruitment Biases

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Do you or anyone you know have a sixth sense when it comes to recruitment? Is that “sense” completely unbiased and effective? If you answered “yes”, then you are definitely lying to yourselves.

While it is, indeed, true that some people have much more success in recruitment then others,  this happens, most of the times, due to their abilities slowly developed over the course of time and multiple errors.

How do you make up your mind when confronted with a decision? Well, people tend to prefer one of the two following approaches:

One of these approaches is using the “gut feeling”, that has been proven to be successful for them over the years. The main problem with this approach is that it can never be reliable enough. No matter how many times it helped you make the right decision, it will still be just a game of dice next time you use it. And, on top of that, have you ever considered what exactly is this gut feeling and how does it work? Bruce Henderson, founder of the Boston Consulting Group, defined it as “the subconscious integration of all experiences, conditioning, and knowledge of a lifetime, including the cultural and emotional biases of that lifetime.” This doesn’t sound very professional when it comes to recruitment, does it?

The second approach that people use when facing a decision is what they imagine to be the rational analysis. This approach consists of trying to methodically examine all the available information and data in order to reach a conclusion. This may sound as unbiased as it can get, but is it?

In most cases, even while HR managers and CEOs adopt and implement programs that they believe to be free of bias, they still fall short of addressing unconscious biases. Dr. Banaji, a social psychologist at Harvard University, explains that “discrimination is veiled, not explicit, but rather more implicit, unconscious, because we ourselves are unaware of it”.

In his book, Everyday Bias, noted diversity consultant Howard J. Ross points to many studies indicating that these sorts of blindspots are ubiquitous in our lives.  “Virtually every important decision we make in life is influenced by these biases, and the more they remain in the unconscious, the less likely we are to make the best decisions we are able to make.”

Some of these biases include:

Confirmation bias: The tendency for people to seek out information that conforms to their preexisting views, and ignore information that goes against their views. For example, when an interviewer forms a distinct opinion about a candidate based on a minute piece of information such as the college they attended, before the actual interview, he or she is succumbing to confirmation bias. Great candidates may not make it to the interview or be perceived as less competent than others because of these assumptions. Organizations may decrease their chances of hiring great candidates due to interviewing confirmation bias.

Ingroup bias: The tendency to favor members of your own group (or those that you have more in common with). This bias can result in making poor hiring decisions by choosing a candidate entirely based on subjective criteria such as shared interests, hobbies, education, age, professional background or even similarities of appearance or name.

Selective perception: The process of cherry picking the information that we do like to perceive, while ignoring the ones that would contradict our beliefs. This goes hand in hand with the ingroup bias. When we find a candidate that matches our initial preferences, we tend to notice only his or hers positive features, while unconsciously filtering out all the data that would contravene our viewpoint.

Status quo bias: The fact that we would almost every time prefer the familiar things – the ones that we are already comfortable with. This bias prevents diverse hiring by making us prone to selecting the same type of employees that we have chosen in the past.

All of these could interfere with our reasoning, so what can we do in order to overcome all of these biases and use an objective judgment when recruiting candidates?

Anonymizing candidate selection is definitely helpful, but it’s far from enough. Consider using one of these methods to ensure that your organization’s hiring process is bias-free:

One way would be what Dan Hill, an internationally recognized expert on reading emotions based on facial micro expressions and the CEO of Sensory Logic, told us about at the Great People Inside Conference: The New World of Work in Romania (you can see the whole video by clicking here). “People don’t think their feelings; they feel them. So at Sensory Logic we bypass self-reported, cognitively filtered input by going straight to how people most naturally reflect and communicate their emotions: the face.”

For 16 years now, they’ve been both the pioneer and the most careful commercial  practitioner of applying facial coding as a research tool to help clients lower risks and optimize marketing, products and other business solutions. Facial coding enables them to scientifically yet non-invasively capture, quantify and analyze the emotions shown.

Another great way to make the best decisions would be to use exclusively the assessment systems in order to narrow down the number of possible candidates to only a few before you involve any human judgment. Afterwards, you can make the final decision by consulting with the HR managers that you trust the most.

Great People Inside provides easy-to-use tools and processes to attract, assess, match, select, onboard, manage, develop, benchmark and maintain workforces anywhere in the world.

Finding the right talent, the best fit for the job and your organisation, can be a very challenging task. It requires deep knowledge of your own organisation’s culture and keen understanding of the candidate’s personality, strengths, interests, work style and other characteristics. Our technology and solutions will do the work for you, helping you find employees who can flourish and reach the highest performance required to constantly bring your company forward.

Request a free demo:

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Sources:

Mlodinow, L., “Subliminal: How Your Unconscious Mind Rules Your Behavior”

www.wepow.com

www.forbes.com

www.sensorylogic.com/

 

Wellness programs: an integral part of employee wellbeing

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In October 2016, a survey of 3,100 people conducted by CareerBuilder discovered that a high percentage of employees take sick leave due to the fact they are stressed out and sleep-deprived, not because they have fallen ill. This is an increasingly worrying issue.

Nowadays, employees find it difficult to maintain a healthy work-life balance and manage their stress levels, even after their office hours. At the same time, employers are dealing with this issue poorly because they are implying the employee is the one in the wrong. Some employers go to extreme lengths such as regularly checking their employees’ social media profiles in order to try and catch them in the act.

As mentioned above, workplace stress is a growing and troublesome issue, thus managers are recommended to look into various wellness ideas and programs in order to keep their staff healthy and productive.

First of all, you as a manager must gather all the available data on the current situation at the office. Surveys are a good tool to get a feeling on how your employees are feeling about their workload, satisfaction and engagement levels, and also what is bothering them. Transparency within the workplace is something very sought out and encouraged. Employees wish to be heard; therefore open communication should be an integral part of your organisational culture.

When your employees are regularly struggling to meet their deadlines and they have to deal with a lot of stress, their wellbeing will suffer tremendously, and they will eventually start losing sleep and falling ill.

Nowadays, technology plays a huge role in almost every aspect of our lives. Inevitably, we now have apps that help us develop a healthier lifestyle and diet. Given the attention employee health is receiving from HR departments these days, employees all around the world are encouraged to get fit through wearable wellness.

ABI Research has discovered that, over the next 5 years, 13 million wearable devices are going to be used in corporate-wellness programs. The most popular devices are: Jawbone’s UP 24 activity tracker, Fitbits and Nike’s FuelBands. They are used to monitor people’s movements, eating and sleeping patterns. Thus, using it in a corporate environment, colleagues can motivate one another towards a healthier lifestyle, leading to significant drop in sick days, fewer health insurance premiums and also a steep rise in productivity.

This type of technology has come a long way, given the fact that users can now set their own alerts to be reminded to hydrate more or to get out of their chairs for some exercise. The device also allows employees to connect with one another, form teams and compete against each other.

TheSquareFoot has emerged as one of the best employers through their wellness program. The company provided all their employees with UP bands to show them how much they cared about their health and wellbeing. It is becoming a prominent trend for companies nowadays to integrate wearable devices into their health plan because it can be an attractive way of retaining talent.  This is what Aron Susman, co-founder of TheSquareFoot, had to say about the company’s wellness program: “It is a totally different type of investment than paying for a gym membership because it becomes a talking point in the office. It also shows you are willing to try new things and create a team over and beyond just professional responsibilities.”

Wellness Program Tips

If you’re still not convinced about corporate wellness programs, I am going to present you with some tips from none other than Alan Kohll, founder and CEO of TotalWellness. Alan is known for his work with employers in order to carry out plans for improving employee productivity and health. Next, I will present you some of his most important tips:

  1. Incorporate games into the team challenges. As stated earlier, colleagues can use their devices in order to create teams and work towards a universal goal. Besides the fact that it will boost motivation amongst employees to utilise the devices, the overall office morale will greatly increase. In his past experience, Kohll has seen a lot of impressive accomplishments, such as: 10,000 steps in a day or 5 million steps over the course of one month.
  2. For companies that have offices across the country, a good example of employees engagement through wellness would be the following: You have one office in New York and one in California. A fun challenge consists of the number of steps necessary to get from one office to another. Employees will engage and motivate one another in order to reach their goal of improving their overall wellbeing, thus creating a more productive work environment where each member of the team feels encouraged and supported.
  3. Company culture is something every employee resonates with. Bring wearable devices into that culture. One of the best features of these devices is that users can set reminders and be notified they have been inactive for the past few hours. When you make your employees feel good about taking a break for a walk outdoors, or inspire them to leave their desk for some push-ups or stretching, not only do you support the devices being used but also make your employees know that you care about their health.
  4. Probably the most important tip is saved for last. Don’t make participation mandatory. You have to understand that not everyone will be thrilled about the wellness program. Although it is imperative to make the wearables available to everyone, there will always be people who do not wish to partake in such activities, as Kohll himself states: “They can be great for individuals who are interested in making changes to their health behaviour but need that extra push, but they aren’t for everyone.”

All in all, there are countless ways to ensure that your employees maintain a high level of wellbeing and engagement. But, the thing is that no two companies are the same, and what works for one may not work for the other.

The Great People Inside employee assessment solutions and technology can be tailored to your company’s specific needs and organisational culture and can help you to boost the levels of job-fit and skill-use in your employees, generating job satisfaction, improved motivation, health and happiness, and boost employee retention.

Try out our assessment in order to measure the level of wellbeing in your organisation and find out the best approach to improve it.

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Sources: Entrepreneur.com

Dealing With Stress, Step 5: Clinical Mode On

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(This article is a part of a series; please start here)

Observing dispassionately allows control. Once you managed to take the previous step (dis-identifying Yourself from Mind) – or even at the same time – start observing yourself as you would an item in a museum.

Start by observing what happens inside your body. It is easier with the body, because it doesn’t play the identification trick. Scan your muscles, your gut, your heart, your face. Notice the tension in your arms and legs, notice the feeling of a solid rock in your belly, notice the fast-paced, shallow breathing, notice the sensation of heat in your cheeks.

Once you noticed those sensations, stop. Don’t take it further, don’t judge “I shouldn’t feel that, I shouldn’t be red-faced”. Just take the information in and file it without tagging it “good” or “bad”. Go back to scanning and do it as many times as you need to cool off.

After you get familiar with observing your body, you can take the next step and do the same with your mind. Observe what feelings it puts out. Name them as exactly as you can: “my mind is making me feel ashamed“, “my mind is making me feel furious“. It is good information. It is not something you should believe or act upon. If you can trace the source you’re even better off: “my mind makes me feel ashamed I made a mistake because in the first grade the teacher always made crude fun of me because I wasn’t talented at math“. Seeing the source is valuable, because it shows you that your mood has less to do with Now and more to do with The Past. The link is emotional, not rational.

If you have ever been in a negotiation with an used-cars salesman (or any slick, fast-talking sales guy), you know how you look at him working his number, recognize the tricks in his book and smile inwardly “You won’t catch me this time, dude!”

The same goes with your mind. It won’t catch you again, because you will recognize its trick, see right through them and take appropriate action, as opposed to the hasty things It wants you to do.

“Response” is the name of the game. “Reaction” is a thing of the past.

Continue with steps 6 and 7 by clicking here
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By Catalin Octavian Blaga – Trainer Great People Inside

Trainer who turns business experience and psychology into impacting training programs… and more!  You can find out more about Catalin by clicking here

This year’s edition of the Great People Inside annual conference has concluded!

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Great People Inside Conference “The New World of Work” represented the most significant event of the year 2016 in the field of human resources in Romania, reuniting over 360 participants, among which were human resource managers and specialists from all industries, psychologists, young entrepreneurs, business-minded people, representatives of the largest consultancy companies, leaders of associations from various economic areas, as well as internationally renowned speakers.

We strongly believe that our guests’ presence, distinction and receptivity have been an important part of the conference’s success. We thank you for your support and we hope that you will participate in our future endeavours.

You can see the photos from the event by visiting our Facebook page Here.

To download the speakers’ presentations , please click Here.

Videos and footage of the event will be uploaded on our Youtube channel starting with 15th of November 2016.

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Dealing With Stress, Step 3: Don’t Fight Feelings

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(This article is a part of a series; please start here)

Fighting the feeling will only enhance its grip. That is something adults almost never tell kids, when it comes to “proper emotional reaction”. At least where I am from, “boys don’t cry”. I’ve been told that many times; I’ve never been told how to fight tears (and, of course, the more I tried, the more they would trickle down my cheeks, red-hot with shame).

One doesn’t justify feelings. They are what they are: a natural, honest and strong reaction of the mind (and body) to an unpleasant set of circumstances. You wouldn’t even dream to justify breathing and explain metabolism. Why would you need to treat feelings differently?

That “good” feeling / “bad” feeling dichotomy is a purely social construct. “Chase away the nature, it will return at a gallop” say the French. And, as Nature would do, the harder you fight it the more it will return with a vengeance.

So, next time you feel something you “shouldn’t” feel, stop fighting it. If it is fear you feel, allow it; if it is anger you feel, say to yourself “This is fear that I feel; I will allow it to rise and go away without fighting it“. Name it, observe it and let it be. Eventually, it will go away.

That is not to say you should indulge in manifesting your every feeling. Having that feeling is one thing; acting on it is a different beast altogether. Do not allow yourself to act under the pressure. Bad moods alter the worldview, and consequences could be more than you bargained for.

If need be, you can explain: “I am feeling very nervous right now and it has nothing to do with you. I do not want to talk / explain / tell the story and I do not want to engage further because I don’t really know what I can do, so please let me be for now and I will come to you later“.

Please, do not make the mistake of taking it out on whomever stays in front of you at the moment. Even if you explain later that “it had nothing to do with you, I was just angry“, some things cannot be undone.

Feel your feelings. Name them, call them out, let them come and go without resisting. Where they’ve been, the landscape will clear out and refresh, more often than not.

Read part 4

Do you want to find out more? Get in touch with a consultant now or request a free demo!

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By Catalin Octavian Blaga – Trainer Great People Inside

Trainer who turns business experience and psychology into impacting training programs… and more!  You can find out more about Catalin by clicking here

Dealing With Stress, Step 1: You Are Not Alone

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(This article is a part of a series; please start here)

You are not the only one in such a predicament: we all have rough patches and difficult moments. Some of us are better at hiding it, but on the inside we’re all the same colour.

Most of us, when in the throes of fate, feel we’re alone in our suffering. We may receive help and support from people who care for us, and we are grateful for that, but even this help-and-support come from someone who is not, right now, with us, in such a deep pain. More, we observe the world around us and see other enjoying things and feelings we so sorely lack.

a) For many, it’s about the image they put out: the deep truth is different in the overwhelming majority of cases. People will put out their best image and pour mountains of effort into safeguarding the social image (isn’t that what “inner power” is all about? Showing “strength” while bleeding inside?); and we see that image. The soul behind it is way more in pain and frazzled.

That realisation came to me during conversation with my spouse about some friends that seemed poised to do well; she casually said “The other day I heard her say the only thing she had left in common with her husband were the kids and the credits”.

You might think you’re alone. You might even feel loneliness. It is only natural; it is usually patently untrue. Take a moment to look around you closely. We all have our troubles. You have companions in your plight – only you do not know them. You don’t have to, just know they are there.

b) Preparation is everything: take care and assemble a Team You: people who know you, love you just the way you are and accept you with all your little quirks and peculiarities. Talk to them one by one or in a group setting.

Be as direct and clear as you can: “Friend / mom / pop / sibling, I’m approaching (or already crossing) a very rough patch in my life. I need all the love and support I can muster. I need you to support me now and show me later where I’ve done wrong. Would you do that?”

This is not the time to be evasive and hope they’ll get it. Certainly, you’ll be in for some surprises. Many think “tough love” is the way (it is not, in many cases). But you’ll end up with a Team You ready to support you, ready to be your cheerleaders, a handy resource to have in dire times.

Have them know you value and cherish their support and lean on them in troubled times. That way, you’ll know you never walk alone.

Read part 2

Do you want to find out more? Get in touch with a consultant now or request a free demo!

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By Catalin Octavian Blaga – Trainer Great People Inside

Trainer who turns business experience and psychology into impacting training programs… and more!  You can find out more about Catalin by clicking here

 

The Safe Road to Employee Engagement

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How can we define what employee engagement really is?

Everyone talks again and again about the importance of employee engagement. Nevertheless, you might still encounter difficulties when asked to define it. This happens because employee engagement is not something mathematical, it represents the connection between the employee and the company – the mutual relationship based on trust, integrity and appreciation. Even so, there are ways to measure it and according to Gallup’s 142-country report on workplace engagement, only 13 % of  employees are engaged in their work. This represents a big problem for companies all over the world.

Why is it so important?

There are multiple factors that contribute to organisational success –  business strategies, the quality of products or services, their price, effective marketing and even organisational culture. But the most important  factor – the one that keeps the company’s engine running are the people. No organisation can achieve success without great people. But what qualities do those people need? Talent and skills are certainly important, but you’ll never be able to use them properly if your employees won’t do their best. A situation where it is guaranteed that your people will give everything they’ve got is when they share common values and identify with the goals of the company. Several studies have shown the benefits of having engaged employees, as it follows:

  • Businesses with more engaged employees have 51% higher productivity
    (Harter, J.K., Schmidt, F.L., & HayesT.L., Psychology, 2002 Vol. 87, No. 2)
  • Engaged employees outperform disengaged employees by 20-28%
    (The Conference Board, 2006)
  • Organisations with engaged employees showed a 19% increase in operating income over a 12-month period, compared to a 33% decrease in companies with disengaged employees
    (Towers Perrin, 2008)
  • In companies where 60 to 70 percent of employees were engaged, average total shareholder’s return (TSR) stood at 24.2 percent; in companies with only 49 to 60 percent of their employees engaged, TSR fell to 9.1 percent; companies with engagement below 25 percent suffered negative TSR
    (Employee engagement at double-digit growth companies, Hewitt Research Brief)

So, the importance of employee engagement should be pretty clear for anyone.

Ok, I get it, it’s important, but what can I do about it?

Well, first of all, you need to understand what you must never try to do.

You cannot manipulate your employees in order to engage them

Several companies are continuously attempting to trick their employees by making false promises in order to boost their engagement level without actually caring for them. This might, of course do wonders on the short term, but, as soon as the people realise what they’re trying to do, it will tremendously damage their motivation, productivity and, in the end, your bottom line. Why’s that? Because they would feel betrayed. Just imagine how you would feel if you trusted someone, gave them so much of your energy and time and dedicated yourselves in order to accomplish your mutual goals (or at least that’s what you thought them to be), just to find out that they don’t really care about you – you’ve just been tricked. Of course you’ll find it hard to find your motivation once again and the eventual raises or bonuses won’t help that much now. We all need to understand that today, when it comes to people, manipulation and control are not an option.   

Employee engagement must be nurtured

You can’t just give them a small raise, clap your hands three times and expect engaged people. This is a matter where all aspects need to be taken into consideration and none has to be forgotten. While you slowly build your employees trust and foster their engagement, there are a few things you should keep in mind:

Share your vision. Your vision is what should inspire and motivate people right after they hear it. Focus on the things that your organisation ultimately produces. You should emphasize where the company is going in the near and more distant future and point out what’s needed to get there.
Simply giving orders for your employees to follow it’s detrimental for everyone, but making them understand what you have in mind for the company in the future and where they stand on that road will help them identify with your values and work harder towards achieving the common goal.

Offer recognition. The need to be recognised is essential to each and every one of us. Especially for the employees who give their best at the workplace. A survey made by HBR has shown that employees, when asked to rate the most impactful engagement drivers, they will, most often (72%), say that Recognition given for high performers is the most important factor. This can be done formally – a reward system based on performance, an “Employee of the month” program,etc. or you can just thank them personally for how much they’ve helped.

Be clear. A study made by AtTask in 2014 has shown that 64% of employees are often feeling confused about who’s doing what inside the company. Engagement starts with having something to look forward to. If you don’t set clear tasks and goals for your employees, they will surely  have a difficult time engaging in their daily tasks. Your employees don’t need to waste time and energy on trying to understand what it’s needed of them.

Of course, using these tips won’t engage your employees overnight. But, if you integrate them into your daily routine, you’ll definitely see improvements and, in time, you might find out true what Meghan M. Biro said: “Employees engage with employers and brands when they’re treated as humans worthy of respect.”

We have an impressive assessment library with hundreds of dimensions that can be leveraged in creating a custom skills-based assessment that supports your organisation’s specific competencies and unique vision. Please contact us if you need to measure the engagement level in your company.

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 Sources:

www.torbenrick.eu/blog/leadership/10-reasons-why-employee-engagement-is-important
www.hbr.org/resources/pdfs/comm/achievers/hbr_achievers_report_sep13.pdf
www.gallup.com/poll/165269/worldwide-employees-engaged-work.aspx;

Algorithm vs. Human Instinct

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Everyone wants to have the best people in the right positions. But how exactly can you accomplish this?

This is where HR steps in. Most people underestimate its importance, but studies have shown the great hidden impact that great HR can have on any organisation.

Watson Wyatt surveyed 405 publicly traded companies of all types, posing 72 wide-ranging questions on everything from training to workplace culture to communications. In order to come up with a so-called Human Capital Index (HCI) score for each company, a statistical formula was applied (HCI measures how well an organisation makes use of the ability of an individual to perform. A higher human capital index indicates better management of human capital by the organisation. It is measured on a scale of 100). Then the subject companies were sorted into three HCI-rating categories: low, medium, and high. The companies in the high-HCI group delivered a 103 percent total return to shareholders over a five-year period, compared to 53 percent for low-HCI and 88% for medium-HCI companies.

While psychometric testing and performance prediction have evolved considerably over the past 100 years, their value is often under appreciated. In this article from thepsychologist.bps.org.uk,  two critical lessons from this broad field of research are highlighted. Namely, research on performance prediction has taught us the importance of choosing the right people and using the right tools to do so.

As it is mentioned in the article, selecting the right candidates is an important goal, but we must not forget about the one with equal importance – screening out undesirable candidates. The consequences of choosing the wrong people can be extremely detrimental for the company, as they lead to increased turnover rates, higher recruitment costs, and training expenses, along with lost productivity and decreases in morale among all employees. The high costs associated with replacing poorly performing individuals make it all the more important to identify and select the best performers in the first place.

This is where you have to ask yourselves: on what should I base my decision when selecting a new candidate? Human instinct or a pre-employment assessment system? The thing is – people are very good at identifying what exactly it’s needed for a certain position in their company and at extracting information from the candidates, but they are doing poor at interpreting the results. The analysis made by Harvard Business Review (HBR) on 17 studies of applicant evaluations shows that a simple equation outperforms human decisions by at least 25%. This is valid for any situation with a large number of candidates – no matter if the job is on the front line, middle management, or in the C-suite.

There are also several other benefits to the company that an employment evaluation system can bring. It provides leaders with valuable information not only about their candidates, but also about their existing employees. This helps you identify their development needs and their strongest abilities, which you can improve, based on the given feedback.

This doesn’t mean that you should completely remove the human judgment from the equation.

A great way to make the best decisions would be to use exclusively the assessment systems in order to narrow down the number of possible candidates to only a few before you involve any human judgment. Afterwards, you can make the final decision by consulting with the managers that you trust the most.

In order for the assessments to be successful, there are certain rules that must be respected:

  • Understanding the importance of the assessment process and it’s role in identifying the performance levels can lead to the success or failure of the process
  • Respecting the methodology suggested and agreed upon by the company leads to maintaining the objectivity, regardless of who is being assessed
  • Encouraging employees to get involved in a permanent self assessment process and ask for feedback. This leads to self-motivation and engagement.
  • Follow up the assessment. The assessed employee and the assessor will meet for a follow up session to analyse and discuss results, certain situations and evaluate the potential solutions for the identified problems, which leads to mid-term and long-term development.

 If you need more information about how the assessment system works, get in touch with a consultant now!

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