Press ReleaseStrategic direction = engaged employees = competitive advantageUK, December 11, 2007 - Companies with clear strategic direction are the most successful at engaging their employees, according research involving nearly 14,000 employees across Europe by leading global consulting firm Watson Wyatt.
Engaged employees are not only highly committed but understand how they can make a positive contribution. According to Watson Wyatt research, highly engaged employees work at organisations with superior financial performance measured by total shareholder return, market premium and employee productivity. Employee engagement combines commitment with focus and direction, so providing employees with a clear 'line of sight'.
While Watson Wyatt's latest WorkEurope survey found that the most important driver for ensuring employee engagement is strategic direction, other drivers of engagement include employer communication, the attention given to customer focus within the organisation, performance management, and pay and other rewards.
"Business leaders who articulate the business strategy give employees a clear 'line of sight' to how they can best contribute to the performance of their company," said Andrew Cocks, a senior consultant at Watson Wyatt. "But the benefit goes beyond this. It helps to build trust in the company and its management and creates a positive environment where all employees have well understood shared goals."
The research involved segmenting employees into five segments that reflect varying levels of commitment and line of sight:
- Value creators (score highly for both commitment and line of sight, 13 per cent of employees in the survey)
- Core contributors (medium to high commitment and/or medium to high line of sight, but not high for both, 51 per cent)
- Aligned sceptics (medium to high for line of sight but low on commitment, 12 per cent)
- Lost believers (medium to high on commitment but low on line of sight, 12 per cent)
- Disengaged (low for both commitment and line of sight, 12 per cent)
"Segmenting employees in this way is important because considering the differences among segments when companies design employee programmes helps ensure that their retain the right people and get the best return on their investment," said Andrew Cocks. "The key to engaging employees comes from targeting the right employees with the right programmes. Companies that segment employees based on commitment and 'line of sight' can find the right drivers that will retain and motivate their most valuable employees. Programmes that increase trust, empowerment and customer focus increase engagement and therefore provide a competitive advantage."
Watson Wyatt's 2007 WorkEurope is one of the largest statistically representative surveys on the attitudes of workers in Europe. It involved nearly 14,000 full-time employees in medium and large private sector organisations. The survey covered all major employment sectors in Belgium, France, Germany, Ireland, Italy, the Netherlands, Russia, Spain, Sweden and the UK. It included some 60 questions focused on commitment, communication, compensation and benefits, customer focus, hiring and advancement, line of sight, performance management, strategic direction and leadership, training and development, trust and ethics, values, work environment and team, and work/life balance. The study is part of an ongoing series of studies by Watson Wyatt into employee attitudes around the globe.
For more information please contact:
Andrew Cocks
Senior Consultant
Watson Wyatt
+44 (0) 20 7598 2874
andrew.cocks@watsonwyatt.com
Bruce Wraight
Head of Public Relations, Europe
Watson Wyatt
+44 (0) 1737 273370
+44 (0) 7771 765154
bruce.wraight@watsonwyatt.com
Visit Watson Wyatt's online press office: www.watsonwyatt.com/europe/news/journalists.
Watson Wyatt Worldwide
Watson Wyatt (NYSE, NASDAQ: WW) is the trusted business partner to the world's leading organizations on people and financial issues. The firm’s global services include: managing the cost and effectiveness of employee benefit programs; developing attraction, retention and reward strategies; advising pension plan sponsors and other institutions on optimal investment strategies; providing strategic and financial advice to insurance and financial services companies; and delivering related technology, outsourcing and data services. Watson Wyatt has 7,000 associates in 31 countries and is located on the web at www.watsonwyatt.com.
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