The link between business performance and excellent employee well-being or great employee engagement has been well established by now. A variety of positive figures are regularly quoted to demonstrate this link, for example;
- 13% increase in productivity (Oxford University)
- 19% increase in overall business performance (Deloitte)
- 21% increase in profitability (Gallup)
- 27% increase above the average for annual net earnings per employee (Morgan Redwood)
Many organisations invest in well-being initiatives, and this is laudable, whether it’s social committees, well-being officers or in house counselling services. These can all play a role in improving employee well-being.
What is often missed though is the fundamental part, that the job role and the managing of someone within that job role, can play a large part in employee well-being and engagement. In my experience employees are more engaged in their work and have a more positive mental attitude when three fundamental questions are addressed.
- How well do they know what is expected of them in the role. This is beyond job descriptions, beyond their duties; it’s knowing what their boss or their colleagues and others expect from them?
- How well trained are they to deliver the role. From induction, through to on the job training, to bespoke competency development programmes?
- How well are they performance managed within that role. What level of feedback do they receive from their line manager or supervisor; how often are their KPI’s measured and reported against; how do they know that they are on track to deliver the expectations that the business has of them?
As I’ve said it’s laudable that organisations have a focus on well-being, well-being initiatives and well-being officers, but I wonder how many organisations would benefit if they put a greater focus on the fundamentals of performance management, and on the three questions posed above.
In world class employee engagement and motivation these three questions just represent the foundation. For further growth, I would look at the work of Doshi and MacGregor who reference the intrinsic motivation factors of Play, Purpose and Potential.
Play can be seen as how creative my job role might be, or it could simply be how much influence I have on decision making within my role or what autonomy I have to act on my own initiative within my role.
For Purpose, I would pose the question, does the behaviour within my employer align with my values and my inner purpose?
Potential is about answering the question, how far can I go in my career and in developing my personal capabilities within this role.
While these last three are vital for excellence in motivation, well-being, and engagement; without the foundation of excellent performance management, I believe most of the efforts in these areas will come unstuck.
What’s the performance management culture like in your organisation?
