Can you recommend the company you are currently working for as a place of employment? If you get lost, you may want to review the relationship between individuals and organizations. At that time, the key is "engagement." Engagement refers to "willingness to contribute voluntarily based on relationships with organizations and duties."
Apple, Starbucks, Nike. There is a reason why these good companies all attach great importance to engagement. Highly engaged organizations are highly profitable, productive, and have low turnover. Furthermore, we can provide high-quality services and are strong in innovation. Isn't it a good thing! It is said that even in Japan, mainly IT companies are adopting engagement as a management index. The representative director of HR Tech Company Atrae, which can be called the representative, and a popular lecturer at Globis School of Management. The appeal of this book is that they talk about the new common sense of organization and team building.
How to increase productivity and job satisfaction? How to prevent the outflow of excellent human resources? The concept of rescuing Japanese companies with such problems may be engagement. Now that the words such as teal organization and horacracy organization are walking alone and their essence is becoming ambiguous, this book returns to the starting point of creating an organization that can strive to achieve its vision.
It's packed with insights that are useful to everyone involved in running the team, not to mention executives and executives. Especially when individuals and organizations reach a turning point, the effects of engagement can be realized.
The main points of this book
By increasing engagement, it becomes possible for people to work vigorously, demonstrate their true potential, and create an organization that produces results.
Engagement is directly linked to corporate performance. It has also been demonstrated that as employee engagement increases, so does customer satisfaction. For this reason, more and more companies around the world are adopting engagement as a management indicator for their company.
To increase engagement, you need to “visualize” your engagement. Nine key driver measurements are useful for finding improvements.
What is Engagement
At Japanese companies, 70% of unmotivated employees!
According to a survey by the global research company Gallup, "unmotivated employees" account for 70% of all Japanese companies. In Japan, the percentage of "enthusiastic employees" is only 6%. It is the lowest class with 132nd place out of 139 countries. Although the Japanese have been regarded as a hard-working national character, most of the office workers are now "unmotivated". According to other surveys, Japan's confidence in the company and its boss is also lower than in other developed countries.
In recent years, the outflow of human resources has been regarded as a problem at major Japanese companies. There are many voices that leak when the more excellent young people quit earlier. The challenge of low productivity still lies. Engagement is the key to overcoming this serious situation.
Definition of engagement
According to consulting firm Willis Towers Watson, the definition of engagement is: "Each employee is willing to contribute by properly understanding the strategy and goals of the company and voluntarily demonstrating his or her strength."
The word engagement has many meanings, such as promises, contracts, and engagements. The core concepts of both are "relationship" and "relationship." From this, it can be said that engagement cannot be achieved simply by the organization setting up a strategy and the individual exerting their strength.
Engagement here also includes both attachment to the organization and the members with whom it works, and independence in the content of the work itself. By increasing engagement, it becomes possible for people to work vigorously, demonstrate their true potential, and create an organization that produces results.
How is it different from employee satisfaction? Comparison with similar concepts
Words similar to engagement include words such as "employee satisfaction," "motivation," and "loyalty." Let's sort out the differences from these.
First, employee satisfaction is a quantification of "how satisfied employees are with the company or workplace." The main items are salary, benefits, relationships, etc. However, just because each employee is highly satisfied does not mean that he or she is "voluntarily and voluntarily working on the job." In other words, increasing employee satisfaction does not increase corporate profitability or individual productivity.
Next, motivation means "motivation" to motivate people to work on things. High motivation and high engagement often correlate. However, the former is an individual motivation. If individuals cannot "collaborate", it does not necessarily lead to organizational results.
Furthermore, loyalty has the meaning of loyalty and loyalty, and refers to the sense of belonging of employees to the company and the spirit of loyalty. It is similar to engagement in the sense of a relationship-based concept. However, the word loyalty has a nuance that presupposes a master-slave relationship and a hierarchical relationship. Engagement, on the other hand, sees individuals and organizations as equals. In that sense, it can be said that there is a difference.
Knowing the differences between these similar concepts will give you a deeper understanding of the implications of engagement.
[Must read point!] Why engagement is important
Introduced one after another by the world's growing companies
Engagement is attracting attention in growing companies around the world. Increasingly, the score that diagnoses the strength of engagement is used as a management index of a company. Why are good companies so focused on engagement?
There are the following two phenomena in the background. One is that the mobilization of human resources has progressed and job changes have become commonplace. Another background is that now that traditional methods are no longer valid, there is a growing demand for creativity in the business. Members' willingness to contribute, that is, engagement, is important for demonstrating creativity.
Engagement is directly linked to corporate performance
Engagement is directly linked to corporate performance. Highly engaged teams are 22% more profitable, 21% more productive, and 47% more EPS (price-earnings ratio) than low-engagement teams, according to a Gallup study. In addition, the turnover rate is significantly low and there are few absenteeism. Other studies have found that working with low-engagement employees to improve their engagement reduces turnover potential by 87%.
In addition, former Harvard Business School professor James Hesket and colleagues have demonstrated that increasing employee engagement increases customer satisfaction. This is called the "specular effect". As businesses become more serviceable, the benefits of such engagement will become even more important.
Relationship between organizational shape and engagement
In Japan in recent years, the form of a new organization has been actively discussed. A flat organization with no hierarchy, "holaclassy organization". A "teal organization" centered on "independent management," "purpose of existence," and "wholeness." Such an organizational model is also drawing attention.
So, if a highly engaged organization is a flat and open organization, that is not always the case. There is no correlation between the strength of engagement and the morphology of the organization. At the extreme, even top-down hierarchies can be highly engaged.
The important thing is to choose the right organizational structure that fits your vision. At that time, the following three points should be considered. The first is the "environment," which refers to the environment in which the company and its industry are located, the maturity of the market, and the fierce competition. The second is "business," which refers to the content and characteristics of work, such as the importance of accuracy and creativity. And it is "human resources" that represent the level and type of human resources that are sought, such as those who have strong aspirations or those who want to be managed properly. It is necessary to take an organizational structure that suits the company's environment, operations, and human resources.
Key driver to increase engagement
How to "visualize" engagement?
The first step to increasing engagement is to “visualize” your company's engagement. An easy way is to ask the following question. "Do you want to recommend your current workplace to close friends and family?" In response to this question, ask them to rate how much they would like to recommend on a scale of 10 points. The number obtained by subtracting the ratio of "critics" (0 to 6 points) from the ratio of "recommendants" (9 to 10 points) indicates the degree of engagement. This indicator is called the eNPS (Employee Net Promoter Score).
Apple, for example, is applying this approach to store staff engagement diagnostics and is working to improve itself based on the results.
So what exactly can we improve to increase engagement? This is different for each company, and the organizational improvement platform "wevox" developed by Atrae can be used as a measurement tool. Anonymously conduct online questionnaires to employees and observe the state of engagement at fixed points.
The following nine items are specifically measured. These were discovered by Atrae as drivers of engagement, based on discussions with experts.
・ Job: Are you satisfied with your job, such as rewarding and discretionary?
・ Self-growth: Do you feel that you are growing through your work?
・ Health: Are employees feeling excessive stress or fatigue at work?
・ Support: Do you receive work or self-growth support from your boss or colleagues?
・ Relationships: Do you have good relationships with your boss and colleagues?
・ Approval: Do you feel that you are recognized by the employees around you?
・ Philosophy Strategy: Do you agree with and sympathize with the company's philosophy, strategy, and business content?
・ Organizational culture: Is the organizational culture of the company in good condition for employees?
・ Environment: Are you satisfied with the environment surrounding employees such as salary, benefits, and work environment?
Engagement is determined by the combined influence of these drivers. Also, the nine drivers correlate with each other. Knowing the correlation reveals points that should be prioritized when multiple drivers suggest issues.
Practice! Engagement management
Examples of initiatives by leading companies
There is no single correct answer to an attempt to increase engagement. However, knowing various practical cases can be a hint for your own efforts. In this book, action examples are introduced for each of the nine key drivers. This summary covers some of them.
"Self-growth": SmartHR, Inc. creates growth opportunities for members through diverse feedback. It is encouraged to output work progress and results, improvement examples, impressions, etc. and share them with internal tools so that individual efforts can be well communicated throughout the company. We also get feedback from other team members, which leads to opportunities for self-growth.
"Health": Sansan Co., Ltd., which develops the cloud business card management service "Sansan" for corporations and the business card application "Eight". The company attaches great importance to capturing the state of the organization as "lines" rather than "dots." And we started to measure engagement regularly.
In response to the result that the number of "health" among the key drivers is low, "charge leave" was newly established. In order to heal daily fatigue, recharge energy and increase productivity, they are asked to take three consecutive days off. What is characteristic is the creation of a system with the intention of business growth. Therefore, if you go to Sansan Lab in Kamiyama Town, Tokushima Prefecture on vacation, transportation expenses will be subsidized. From this, we can see the intention of the company not only to have them take a rest, but also to improve their productivity by taking a rest.
In addition, for drivers of "human relations", and factory Co., Ltd. has introduced "shuffle 1on1" in which employees go to lunch with the management team. Such unique and highly applicable cases are introduced. Also, please refer to the media "DIO" that shares case studies of companies using "wevox".
The most important thing to increase engagement
Engagement is a management issue that should be addressed company-wide. And it can be said that the most important thing to increase engagement is to know each member. What did you want to do and what did you find rewarding? By grasping these, you can entrust the work that makes the best use of your strengths and support the relief of anxiety.
And in order to achieve this, a culture that anyone can say any opinion is indispensable. The future should be born by ensuring the psychological safety of members and fostering a culture in which they can speak freely.
Recommendation of reading
Engagement management that will support universal corporate value. This book can be said to be a "book of beginnings" that describes its effects and methods for practice.
Atrae has been conscious of engagement management since its establishment in 2003. The efforts are also carefully introduced. A system that abolishes titles, allows children to come to work, and makes all employees shareholders. Readers will be able to learn the effects of these engagement improvement measures.
In work style reform, the summarizer wants measures that also focus on the quality of "working" such as engagement and happiness. The concept of engagement will be of great help as a basis for discussion. I can't help but hope that the concept of engagement will permeate not only managers and management, but all business people.