Successful business organizations rely heavily on human capital to keep the business steady and strong. Two powerhouses that have equal power to positively or negatively impact the company’s success include the human resource department and the employees they manage.
Organizations need to develop strategies for a better return on employee investment instead of blaming other factors such as the business strategy or end results of company goals. Although both of these are important to have and understand, it is more important to build and maintain an employer culture that allows for open communication, no matter what level of the company an employer may find himself or herself in. The benefits of employee engagement are what keep the business moving along.
Strengthening the Role of HR
Before an organization can expect the employees to be open, give their opinions, and share new ideas, the company needs to have a good human resource management team in place. Businesses that struggle to execute a good strategy often lack strong personnel in the HR department, stated Business to Community (B2C).
Human resource managers need to have certain leadership skills and training if higher-ups expect to have good communication amidst the workplace. According to Society for Human Resource Management research cited by HR people, there are a total of eight essential ingredients needed to make a good HR leader. These eight characteristics from Monster.com can be summarized in four points:
- Knowledge: HR needs to know and have a good understanding of how the business organization operates on a day-to-day basis. It’s also important for them to know, acknowledge, and teach employees about the company’s mission and goals as well as help employees understand how their own careers and job objectives relate and contribute to an organization’s goals.
- HR managers need to have developed critical, analytical, and strategic thinking skills. Brainstorming, the ability to assess and analyze without being biased, and being open to new ideas from others are qualities that make a good human resource leader. Performance management and human resource management software can help HR professionals keep track of skill gaps in the workplace in order to develop solutions to these problems.
- In addition to listening, HR managers can often be the go-to leaders for the business, especially when it comes to implementing changes in the employer culture and office space. The ability to take on the leadership role at any given time is essential for HR managers, especially if all of the employees are not on board.
- Honesty, credibility, and retention of ethical behavior in the office are the utmost responsibility of the HR manager. He or she ultimately sets the tone and governs the office rules and policies, which can drive the performance of the entire workplace. Orientations, trainings, and other meetings are HR opportunities to continue to educate and empower workers about ethical work practices and employer standards.
Once this critical role has been filled within a business, then an organization can look to reap the benefits of employee engagement.
Benefits of Employee Engagement
A recent survey from Temkin Group revealed that of the responding 2,400 workers, 57 percent reported that they were moderately or highly engaged in their current workplace. The study showed a 10 percent increase of employee engagement from 2011, added the source.
But what exactly are the benefits or employee engagement for businesses? Two stability factors were reported in the survey as benefiting both the employers and the employees.
The first stability report revealed that workers who acknowledged a relationship between performance and financial advancement were more likely to be highly engaged than those who worked for a business that offered subpar reward systems. Although the current economic state may hinder companies from shelling out big performance raises, they can still find reward systems to help motivate employee engagement. Unique forms of acknowledgement may include additional PTO or an extra few days off of work without pay—either way, employees love the ability to take time off and not get penalized for it. Career advancement, promotions, and additional training or aid to go back to school are other reward systems that businesses are using to keep workers engaged.
The second stability factor was that engaged employees were more likely to remain loyal to their employers. Retaining talent in the workplace can be extremely difficult if the employer culture is poor. According to the Temkin Group study, highly engaged, motivated workers were six times as likely to help businesses during the recruiting process, cited Now Associations. Happy employees are more likely to recommend a friend or family member to help during the job recruitment process, and businesses like internal referrals.
Employees who responded as being highly engaged also revealed that they are more inclined to work later, build their teams, and speak up about positive and negative work environment factors, added the Now Associations. As we mentioned above, good work ethics often stem from well-managed employees.
Companies that want to expand need to build a solid home base. Before an organization can successfully grow and take on more employees, new locations, and bigger projects, it has to invest the time, money, and effort to strengthen its human capital. The benefits of good employee engagement will then lead to a multitude of business opportunities.