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Research report
January 2010




   CREATING AN ENGAGED
   WORKFORCE
CREATING AN ENGAGED
WORKFORCE
FINDINGS FROM THE KINGSTON EMPLOYEE
ENGAGEMENT CONSORTIUM PROJECT




This report has been written by:
Kerstin Alfes, Kingston Business School
Catherine Truss, Kingston Business School
Emma C. Soane, London School of Economics and Political Science
Chris Rees, Royal Holloway, University of London
Mark Gatenby, University of Surrey
Contents

   Executive summary                                                                             2
 1 Introduction                                                                                  4
 2 The research study                                                                            5
 3 Employee engagement in the UK                                                                 6
   Case Study: ServiceCo                                                                         8
 4 Engagement across different organisational contexts                                       12
   Engagement strategies across the public and private sectors                               12
   Case Study: LocalGov                                                                      13
   Engagement levels across the public and private sectors                                   16
   Case Study: GovDep                                                                        18
 5 Engaging different employees                                                              21
 6 Strategies for engagement                                                                 23
   Meaningfulness                                                                            23
   Case Study: ScienceCo                                                                     25
   Management and leadership approaches                                                      28
   Perceptions of line managers                                                              28
   Perceptions of senior managers and employee engagement                                    29
   Case Study: PlasticCo                                                                     30
   Employee voice, involvement and communication                                             34
   HR policies and practices                                                                 36
   Case Study: EnvironmentCo                                                                 38
 7 Outcomes of engagement                                                                    42
   For organisations                                                                         42
   Individual performance                                                                    42
   Innovative work behaviour                                                                 43
   Intention to stay                                                                         43
   Case Study: NorthTrust                                                                    45
   For individuals                                                                           49
   Well-being                                                                                49
   Sustainability                                                                            49
   Case Study: ConstructionCo                                                                51
 8 Conclusions and management implications                                                   55
 9 References                                                                                57
10 Appendix                                                                                  58
   Methodology                                                                               58
   Participants                                                                              59
   Data analysis                                                                             60




                                                                 CREATING AN ENGAGED WORKFORCE       1
Executive summary

    EMPLOYEE ENGAGEMENT IN THE UK                                   •	Respondents rate their line managers more positively
    •	We carried out research in eight organisations across the       compared with their senior managers, with 56% indicating
      UK resulting in a dataset of 5,291 questionnaires and           that they have a good relationship with their line manager.
      around 180 interviews.                                        • Employee voice is a strong driver of engagement.
    •	Our measure of engagement incorporates three                  •	Just 34% of employees are the ‘vocal-involved’, who
      dimensions: emotional or affective engagement; intellectual     perceive their work as meaningful and have opportunities
      or cognitive engagement; and social engagement, each            to voice their views, yet this category of workers is the
      measured in terms of extent and frequency.                      most engaged.
    •	Overall, 8% of respondents in our sample are strongly         •	Most employees have negative views about their
      engaged with their work, with the majority falling into an      organisation’s HR policies and practices.
      intermediate category.                                        •	HR practices do not impact directly on engagement;
    •	With respect to the frequency of engagement, 18% are            the relationship is mediated by person–job fit and line
      engaged on a daily basis.                                       management style.
    •	Comparisons across the three dimensions reveal that levels
      of social engagement are lowest.                              OUTCOMES OF ENGAGEMENT
                                                                    •	Employee engagement is associated with a range of
    ENGAGEMENT ACROSS DIFFERENT                                       positive outcomes at the individual and organisational
    ORGANISATIONAL CONTExTS                                           levels.
    •	Many organisations measure engagement and have                •	Engaged employees perform better.
      specific engagement strategies across the public and          •	The majority of our respondents were rated ‘good’ in their
      private sectors.                                                last appraisal.
    •	Public sector employees are more strongly but less            •	Engaged employees are more innovative than others.
      frequently engaged than in the private sector.                •	Engaged employees are more likely to want to stay with
    •	Public sector employees show higher levels of social and        their employer.
      intellectual engagement, whereas private sector employees     •	In our sample, 35% indicate that they would like to
      are more engaged affectively.                                   continue working for their employer for five or more years,
                                                                      compared with 17% who want to leave within the next
    ENGAGING DIFFERENT EMPLOYEES                                      two years.
    •	Comparisons across employee groups reveal a variety of        •	Engaged employees enjoy greater levels of personal
      interesting differences with respect to demographics and        well-being.
      job types.                                                    •	Engaged employees perceive their workload to be more
    •	Women are more engaged than men.                                sustainable than others.
    •	Younger workers are less engaged than older workers.          •	One-third of employees are ‘fit-performers’, enjoying high
    •	Those on flexible contracts are more engaged.                   levels of personal well-being and performing well.
    •	Managers are more engaged than non-managers.                  •	Our data indicate that excessively high levels of
                                                                      engagement might lead to ill-health and burnout.
    STRATEGIES FOR ENGAGEMENT
    •	Organisations can implement a range of workplace              CASE STUDIES
      strategies that impact upon levels of engagement.             •	In our two-year research project we analysed levels of
    •	Meaningfulness is the most important driver of                  engagement across eight different organisations, which are
      engagement for all employee groups.                             included as case studies in this report.
    •	Two-thirds of all respondents in our study find meaning in    •	ServiceCo is a support services partner company with
      their work.                                                     around 9,000 employees. An important factor influencing
    •	Senior management vision and communication is a key             levels of engagement is the extent to which employees
      driver of engagement, whereas senior management                 are given a platform to communicate their opinion
      effectiveness is negatively related to employee engagement.     about work-related topics. Further challenges include
    •	Positive perceptions of one’s line manager are strongly         the integration of employees working remotely and the
      linked with engagement.                                         engagement of manual workers.




2     CREATING AN ENGAGED WORKFORCE
•	LocalGov is one of the largest local authorities in the       MANAGEMENT IMPLICATIONS
  UK, employing more than 50,000 employees. In 2006,            •	The main drivers for engagement in our study
  LocalGov initiated a programme to empower employees             are meaningful work, voice, senior management
  and increase their levels of engagement, which runs very        communication style and vision, supportive work
  successfully. However, further improvements can be made         environment, person–job fit and line management style.
  in terms of communicating with employees, especially          •	Understanding your workforce engagement profile is the
  during change initiatives.                                      first step to determining how to drive up engagement levels.
•	GovDep is a large government department that has been         •	Engagement is clearly associated, both in our report and
  interested in employee engagement for several years. One        in other studies, with high levels of performance, reduced
  of the major strengths in this organisation is work–life        intent to quit and raised levels of personal well-being. It
  balance and the opportunities to work flexibly. An area for     is therefore legitimate from a corporate perspective to
  improvement is the way leadership capacity is developed         prioritise improving levels of employee engagement.
  within GovDep.                                                •	There is a clear need to help create meaning for employees
•	ScienceCo is a public sector organisation, supplying            in their work; this can be achieved intellectually by
  scientific information in the UK. Changes in the economic       articulating the links between individual jobs and the
  climate prompted ScienceCo to launch a new initiative to        broader organisational aims, and emotionally through
  move from a very stable to a more dynamic workforce.            sharing an understanding of deeper levels of the purpose
  Employees at ScienceCo find their jobs highly meaningful;       of the organisation.
  however, senior management attitudes and behaviour            •	Employees need to be given opportunities to express
  could be improved to further raise levels of engagement.        their views and to know that their opinions will be taken
•	PlasticCo is a leading plastics manufacturer with a             seriously. This is an activity that needs to involve both
  workforce of around 650 employees. Following the results        senior and line managers. Our case studies provide some
  from their engagement survey, PlasticCo undertook a             examples of how organisations in the consortium have
  major effort to change the culture and move towards a           achieved this.
  more open and integrative management style.                   •	Senior managers have an important role to play in
•	EnvironmentCo is a leading recycling and waste                  creating a vision for the organisation and sharing this
  management company in the UK, employing almost                  with employees, and in being open, transparent and
  12,500 people in the UK. A major strength within                approachable.
  EnvironmentCo is the clarity of objectives, as the vast       •	Engagement levels are affected by the working
  majority of employees feels that they are clear about the       environment. Where employees can see that they have
  tasks they have to perform to achieve their goals. An           support from others to help them do their job, there is a
  important area for improvement are HR practices, as many        sense of teamwork and they can safely express themselves,
  respondents express their dissatisfaction, especially with      then engagement will be higher.
  training and development opportunities, and the career        •	Matching people to jobs is a critical driver of engagement.
  and performance appraisal systems.                              This is one area where HR professionals can play an
•	NorthTrust is an NHS foundation trust providing healthcare      important role helping line managers design jobs
  to a population of over 300,000 people. A consistently          effectively, and develop selection processes that match
  positive finding is that employees are generally satisfied      individual skills to jobs.
  working for the NHS. Future challenges for NorthTrust are     •	Line managers act as the interface between the
  communication and leadership style.                             organisation and the employee, and can do much to
•	ConstructionCo is an international consultancy and              impact on engagement. Another key HR role is therefore
  construction firm. The company benefits from its                to pay close attention to the selection, development and
  entrepreneurial culture and the fair and consistent             performance management of line managers to ensure they
  management style. An area for improvement is work–life          maximise their potential to be engaging leaders.
  balance as many employees feel compelled to work long
  hours due to the sheer amount of work.




                                                                             CREATING AN ENGAGED WORKFORCE                  3
1 Introduction

     The findings of the UK Government’s 2009 MacLeod Review            based in the Centre for Research in Employment, Skills and
     into employee engagement (MacLeod and Clarke 2009) have            Society (CRESS) at Kingston University. Working with the
     underlined the critical role played by an engaged workforce        CIPD and the ten members of the consortium, we have
     in both organisational success and individual well-being.          undertaken a very thorough and detailed exploration of
     The study corroborates the findings of the earlier report          employee engagement, its antecedents and consequences,
     commissioned by the CIPD into employee engagement                  in a variety of different settings. Through this research, we
     (Gatenby et al 2009). This highlighted the relatively low levels   have developed a new definition and conceptualisation of
     of engagement in the UK workforce generally, together              employee engagement that builds on prior academic studies
     with evidence demonstrating the impact of engagement               but extends them in important ways, and we have studied
     on performance, quality, innovation, levels of absenteeism,        the processes through which engagement levels can be
     turnover and organisational advocacy. Engagement would             raised or lowered through the actions taken by managers.
     seem to be beneficial to both employers and employees, as
     those with the highest levels of engagement also appear to
     enjoy greater personal well-being.

     However, despite these and other studies, it remains true
     that, in theoretical, conceptual and empirical terms, we in
     fact know relatively little about the concept of employee
     engagement. Largely, this is because academic research has
     lagged significantly behind the wealth of interest shown
     by practitioners, HR professionals and consultants, who
     have been much quicker to note the importance of this
     relatively new concept. Consequently, many management
     consultancies and survey firms have developed a definition of
     employee engagement and associated measurement index,
     while their academic colleagues have been much slower
     off the mark and have thus far not agreed on a single,
     theoretically derived and empirically validated definition
     of engagement. In particular, we note one significant
     discrepancy. Most consultancies and survey firms regard
     engagement as something that is done to employees, in
     other words, ‘a workplace approach designed to ensure that
     employees are committed to their organisation’s goals and
     values, motivated to contribute to organisational success,
     and are able at the same time to enhance their own sense of
     well-being’ (MacLeod and Clarke 2009). In contrast, however
     they may actually define engagement, academics tend to
     agree that engagement is experienced by individuals, a state
     of being that may be affected by management strategies
     and approaches, but is not, in and of itself, such a strategy
     (May et al 2004).

     It is the latter view of engagement as a state experienced by
     employees that has informed the work undertaken over the
     past two years by the Employee Engagement Consortium




 4      CREATING AN ENGAGED WORKFORCE
2 The research study

  We took as our starting point the first report we wrote on     Thus, an engaged employee is someone who thinks hard
  engagement for the CIPD in 2006 (Truss et al 2006). In this    about their work, feels positive when they do a good job and
  study, we were able to survey the views of 2,000 working       discusses work-related matters and improvements with those
  adults from across the UK. This investigation yielded some     around them.
  important insights into engagement. However, we felt
  that there were still some unanswered questions. Most          This definition of engagement derives from the work of
  particularly, although the measure of engagement we used       earlier theorists and commentators such as Kahn (1990),
  in that report was helpful (May et al 2004), we wanted to      May et al (2004) and Schaufeli and Bakker (2004), all
  develop this conceptualisation further, drawing on wider       of whom regard engagement as a psychological state
  academic studies and empirical evidence. We also wanted to     experienced by employees in relation to their work,
  explore, in more depth, how the engagement process works       together with associated behaviours. Engagement therefore
  across different sectors and types of organisation.            has intellectual, emotional and behavioural dimensions.
                                                                 Our definition of engagement draws specifically on the
  The following year, in 2007, with support from the CIPD, we    work of Kahn (1990) in its incorporation of the concept
  founded the Kingston Employee Engagement Consortium            of social engagement, and suggests that the willingness
  project in collaboration with ten public and private sector    of employees to discuss work-related improvements
  members. We set out to answer the following five questions:    with those around them is an important dimension of
  1 What does engagement mean?                                   engagement and which serves to differentiate engagement
                                                                 from other, similar constructs such as job satisfaction,
  2 How can engagement be managed?
                                                                 organisational citizenship behaviour and ‘flow’. It is
  3 What are the consequences of engagement for                  important to note that, following earlier theorists, our
    organisations?                                               concern is with an individual’s engagement with their
  4 How does engagement relate to other individual               specific job, rather than with their organisation as a whole.
    characteristics?                                             We would argue that these notions of organisational
  5 How is engagement related to employee voice and              commitment and advocacy are generally associated with
    representation?                                              high levels of engagement, but are distinct from it.

   We define employee engagement as: ‘being positively           Between 2007 and 2009, we collected data from eight
   present during the performance of work                        organisations. Our preliminary findings were published by
   by willingly contributing intellectual effort, experiencing   the CIPD in early 2009 (Gatenby et al 2009). In this, our final
   positive emotions and meaningful connections to others.’      report, we extend our interim report and present the overall
                                                                 findings from this research project in the form of eight
  We see engagement as having three core facets:                 detailed case studies, together with an analysis of our entire
                                                                 dataset. Overall, we report on the findings of a study that
  •	 intellectual engagement, or thinking hard about the         has involved 5,291 questionnaire respondents and around
     job and how to do it better                                 180 interviews.
  •	 affective engagement, or feeling positively about doing
     a good job                                                  First, we explore differences in engagement across
  •	 social engagement, or actively taking opportunities to      organisational contexts and examine how different types
     discuss work-related improvements with others at work.      of employee (for example, men/women; managers/non-
                                                                 managers) engage in their work. In the following section,
  We also differentiate between the extent of engagement         we explain the key drivers of engagement, before we
  – the strength of feeling engaged – and the frequency of       analyse the main outcomes of employee engagement at
  engagement – that is, how often individuals experience         an individual and organisational level. Finally, we introduce
  engagement. This approach has been used in studies of          our overarching model of engagement and highlight the
  other psychological constructs such as burnout.                management implications arising from our findings. In the
                                                                 Appendix, we explain the methodology used in our study.




                                                                              CREATING AN ENGAGED WORKFORCE                      5
3 Employee engagement in the UK

     We measured and analysed levels of engagement in a                If we plot extent of engagement versus frequency, we find
     number of different ways. Individuals were asked a series of      that just 5% of the sample overall can be described as very
     questions that were designed to evaluate how engaged they         highly engaged (scoring a very high 4.51 or over on both
     are with their work, each using a five-point response scale.      extent and frequency). Conversely, just 4% report extremely
     These questions combine to create three separate scales each      low levels of engagement (scoring 2.99 or below on the
     measuring social, affective and intellectual engagement.          extent and frequency scales).
     We measured these facets of engagement in terms of both
     extent – that is how engaged the person is – and frequency        Looked at in another way, the mean score for engagement
     – that is how often they are engaged. We also analysed            extent is 3.8 and for frequency 3.9 out of a possible 5.
     our data in terms of the overall extent and frequency of          Consequently, it would be true to say that the vast majority
     engagement, combining the three scales into an aggregate          of employees can be described as falling into an intermediate
     measure of engagement. This means that we are able to talk        category of engagement, which is largely what would be
     about engagement from various angles.                             expected. This suggests that there is still considerable scope
                                                                       for organisations to raise levels of engagement overall.
     In terms of the overall extent of engagement, if we divide
     our respondents into five categories corresponding to our         We can break this down further by looking at the three
     five-point response scale, we found that 8% of respondents        facets of engagement (see Table 1).
     are ‘strongly engaged’ with their work (that is, scoring 4.5 or
     over on the scale out of a possible 5). A further 70% can be      These findings comparing across the three facets of
     described as ‘moderately’ or ‘somewhat’ engaged (scoring          engagement provide an interesting insight into how
     between 3.5 and 4.5 on the scale), and just 1% as very            engagement operates in practice. Scores for social
     weakly engaged, with the remaining 21% neither engaged            engagement are the lowest, which was reflected within each
     nor disengaged.                                                   of the organisations individually, both in terms of extent and
                                                                       frequency. Levels of affective engagement are highest, with
     Our study is the first that has explored the frequency            intellectual engagement occupying an intermediate position.
     with which people are engaged with their work, which              The relatively low level of social engagement in terms of both
     is an interesting addition to our understanding of how            extent and frequency is of concern. Social engagement is a
     engagement works in practice. We found that fewer than            measure of how much people at work participate in constructive
     one in five, 18%, are engaged on a daily basis. Fifty-nine        dialogue with those around them about their work or how to
     per cent report being engaged ‘once a week’, and 22% ‘a           improve working methods or skills. This is closely linked with
     few times a year’ or ‘once a month’, and just 1% report           notions of organisational social capital, which suggests that one
     ‘never’ being engaged. These findings suggest that a              of the most important resources at an organisation’s disposal
     substantial majority of employees are not engaged with            is the network of relationships both within the organisation
     their work on a daily basis but, equally, only a very small       and beyond. Where levels of social engagement are low, this
     number are never engaged.                                         may mean that organisations are not capitalising on the unique
                                                                       strengths and knowledge of their workforce.


      Table 1: Engagement extent and frequency (%)

                                                                   Extent                                 Frequency
                                                                   strong                             daily/once a week
                                                             (over 4.0 out of 5)                      (over 4.0 out of 5)

      Social engagement                                                38                                        29

      Affective engagement                                             58                                        77

      Intellectual engagement                                          41                                        65




 6      CREATING AN ENGAGED WORKFORCE
However, overall, our findings broadly suggest that levels        rather than focus on long working hours. It is perfectly
of engagement are moderate–high in the sample of                  possible to be engaged with one’s work during working
organisations participating in our research. Of course, our       hours, but not work excessive overtime. Long working
sample is self-selected and chose to be members of the            hours may be indicative of other factors, such as a culture
Employee Engagement Consortium, and so it is perhaps to           of presenteeism in the workplace. Whereas engagement is
be expected that the overall level of engagement in these         associated with positive benefits for the individual, such as
organisations would be higher than average.                       enhanced well-being, workaholism has been found to be
                                                                  linked with negative health outcomes.
Nevertheless the findings are encouraging and compare
favourably with other studies into engagement levels. For         The second reason that studies report differing levels of
example, Truss et al (2006) found that 35% of employees           engagement is that different scales are used to record
are actively engaged, with 57% moderately engaged.                employees’ views and the data are analysed and coded
Another study found that 29% of workers are engaged               in different ways. Here, we use a standard approach
and 17% disengaged (Seijts and Crim 2006). A study by             recommended for academic research, giving respondents five
the Corporate Leadership Council (2004) found that just           possible responses to each question. This is one of the most
24% of staff are highly engaged. The conclusion from the          common ways of recording and coding employees’ views.
MacLeod Review (2009) is that levels of engagement in the
UK workforce generally need to be raised. Although our            These divergent approaches to conceptualising, measuring
findings are more positive, it is still the case that levels of   and reporting on engagement can create a confusing
engagement could be higher.                                       picture for managers wishing to understand engagement
                                                                  and develop strategies for raising levels of engagement
Why do studies of engagement reveal such a different              amongst their workforce. Everyone will form their own
picture? There are two main reasons for this. First,              views as to how best to measure the engagement levels of
different studies use different questions to assess levels of     their own employees based on what is important to them.
engagement, based on how engagement is defined and                It is, however, interesting that whatever the measure of
operationalised. Measures of engagement that incorporate          engagement used, the range of drivers and outcomes of
questions around employees’ understanding and awareness           engagement tend to be quite similar across different studies,
of organisational strategic objectives, for example, will         and the general conclusion is that the majority of employees
always yield a more negative response as many employees           are moderately engaged with scope to raise levels of
lack this knowledge. However, it could be argued that this        engagement overall.
does not reflect the psychological state of engagement per
se. Other studies, such as our report for the CIPD in 2006
                                                                   KEY FINDINGS
(Truss et al – in this report we used the May et al (2004)
measure of employee engagement), include questions on              • Eight per cent are strongly engaged with their work,
employees’ willingness to work overtime and take work                with the majority falling into an intermediate category.
home with them. However, we did not include questions              • Eighteen per cent are engaged ‘daily’.
such as these in this current measure, which is based on           • Our measure of engagement incorporates three
work we have undertaken since 2006 on the topic of                   dimensions: emotional or affective engagement;
engagement that extends prior understanding. We wanted               intellectual or cognitive engagement; and social
to include questions capturing the extent to which people            engagement, each measured in terms of extent and
engage socially with their colleagues, feel positively about         frequency.
their work and think hard about how to do their jobs better,       • Levels of social engagement are lowest.




                                                                               CREATING AN ENGAGED WORKFORCE                      7
CASE STUDY:

    ServiceCo

    ServiceCo is a support services partner in the UK providing    ENGAGEMENT LEvELS
    business solutions for clients across the local government,    The results of the survey suggest that employees at
    transport, education, health and defence sectors. As a part    ServiceCo generally have very high levels of engagement.
    of a large European infrastructure and services group, the     Nine per cent are very strongly engaged and 77% are
    company employs around 10,500 employees and is present         strongly engaged. Fourteen per cent have a moderate level
    in over 200 locations within the UK. In 2008, ServiceCo had    of employee engagement.
    a turnover of £1.49 billion and a profit of £86.5 million.
                                                                   ‘I think on the whole most people would generally care
    ServiceCo’s vision is about transforming the nature of         about what they do and the company they work for. I think
    services to the public. A strategy has been developed to       in my experience and the people I know and I work with,
    implement this vision, which focuses on being engaged          it’s not just a salary, it’s not just a job, they do believe in
    throughout all work processes. Hence, ServiceCo encourages     the company and their division and the work that they do.’
    employees to take every opportunity to ‘go the extra           Development manager
    mile’ for the customer. ServiceCo has been interested in
    engagement for several years. The company launched its         Overall engagement frequency is even higher among
    first employee engagement survey in 2006 and has been          employees at ServiceCo, with 19% being engaged on a daily
    conducting engagement surveys once a year since then. The      basis and 66% being engaged once a week. Fourteen per
    surveys have been supported by action plans around the         cent are engaged once a month and only 1% said they are
    key issues arising. ServiceCo joined the Kingston University   engaged only a few times a year. A director reflects upon the
    Employee Engagement Consortium to get a more detailed          high levels of engagement and at the same time points out
    understanding of levels of engagement across different         that it is important to continuously strive for higher levels.
    groups of the diverse workforce.
                                                                   ‘ServiceCo does have an engaged workforce but you can
    A total of 2,500 employees working for ServiceCo in the        always engage more.’ Director
    UK were encouraged to participate in the study. Those with
    email access (1,500 employees) were invited to complete        In the next sections we will consider three areas that are
    an online questionnaire survey. A further 1,000 employees      contributing to high levels of engagement in ServiceCo –
    without Internet access were given a paper version of          employee voice, supportive environment and commitment – and
    the questionnaire. A total of 1,157 questionnaires were        three areas where there is still some room for improvement –
    returned, providing a response rate of 46%. Additionally, 33   engagement among manual workers, integration of workers
    interviews with managers and employees were carried out.       working remotely and well-being in some roles.


    Figure 1: Extent and frequency of employee engagement at ServiceCo (%)

      80

      70

      60

      50

      40

      30

      20

      10

       0

                 Very weak/              Weak/               Moderate/               Strong/               Very strong/
                   Never            A few times a year      Once a month           Once a week                Daily

                                    Overall engagement extent                    Overall engagement frequency



8     CREATING AN ENGAGED WORKFORCE
EMPLOYEE vOICE                                                    ‘Everybody is easy to get on with. Everybody works as a
One of the most important factors impacting upon the high         team; we’re all trying to achieve common goals. From other
levels of employee engagement at ServiceCo is the extent          organisations I’ve worked in there was what I call politicking
to which employees participate in meetings and decisions          but there’s very little politicking within ServiceCo. Everybody
that are directly related to their job and are given a platform   has got a common objective, common understanding and
to communicate their opinion about work-related topics.           people work in different ways and you need to understand
Most employees feel highly involved in work-related matters,      that but it’s very friendly, very approachable.’ Director
could give their opinion and are listened to by management.
                                                                  ‘I think there’s a real teamwork ethos on a number of the
‘I think that culture encourages upward communication,            contracts.’ Director
because I think people are very approachable.’ Director
                                                                  Most employees also feel very comfortable saying that they
‘We can always come up with something and it’s taken              could ‘be themselves’ at work.
through and it’s dealt with. I certainly know on the projects
they have regular meetings with the side teams where              ‘I’ve always found it a very, very comfortable working
anyone who comes up with any initiatives or ideas, they are       environment with people I can actually get on with.’
always received and welcomed.’ Supply chain manager               Manager

ServiceCo has implemented an innovation library as one            ‘Within my department, we’re almost like a family, we look
initiative to foster engagement across the organisation.          after each other, we’re very good at making sure everybody’s
The programme encourages employees to share success               okay.’ Supply chain manager
stories and ideas for improvement and relies on innovation
champions who capture new ideas and feed them back                ‘I think the energy and the commitment that you get from
into the innovation library. The innovation library is well       individuals from being part of a team far outweighs the
received among office-based staff; however, as the following      energy of the individuals as individual parts as it were.’
manager points out, ServiceCo could make even more use            Manager
of this tool if operational roles could be informed about the
innovation library and encouraged to use it more frequently.      COMMITMENT
                                                                  Following the positive comments above it is not surprising to
‘We have got a best practice library with a lot of information.   find that ServiceCo employees have high levels of commitment
I think office-based staff probably [use it] because they know    to their department. Many employees indicate that they
about it. I would query if operatives knew that we had an         experience a strong sense of belonging to their department and
innovation forum to put their ideas forward to.’                  would be happy to spend the rest of their career there. The high
Marketing manager                                                 levels of commitment are closely associated with the good levels
                                                                  of teamwork and clearly contribute to the organisation’s high
SUPPORTIvE ENvIRONMENT                                            levels of engagement. Many employees are committed to do a
Another great strength at ServiceCo is the level of support       good job and put a lot of effort into their work.
in the working environment. This refers to the level of
teamwork. As many employees at ServiceCo work in teams,           ‘You go to any of our schools and you will find the cleaners
a supportive working environment is important as it enables       are all very, very committed; if they can’t do something to
employees to feel comfortable at work and therefore               the best of the quality that they want they get concerned
has a major impact on levels of engagement. Employees             about it.’ Director
at ServiceCo are very satisfied with the support they get
from their colleagues in carrying out their jobs. They feel       ‘Generally, we have a very committed workforce who will
that colleagues help each other out whenever someone              stay here as long as there is a job to be done.’ Manager
is experiencing a problem, and that generally all team
members are committed to achieving common team goals.




                                                                               CREATING AN ENGAGED WORKFORCE                     9
Commitment levels with respect to ServiceCo as a whole are       ‘[I would like] to learn more skills.’ Manual worker
     slightly lower, but still on a satisfactory level. A good part
     of the workforce feels emotionally attached to ServiceCo         ‘To better me for the job the organisation should provide me
     and are proud to work for the organisation. Therefore,           with regular training in health and safety, new techniques of
     many employees do recommend ServiceCo as a good place            machinery and IT literacy.’ Manual worker
     to work to friends and family. This is mainly attributed to
     the development opportunities available and because they         Further topics arose around the quality of the equipment,
     consider ServiceCo a ‘very dynamic and exciting place to be’.    the role of line managers and better work–life balance. As
     Manager                                                          a result of the lower levels of engagement among manual
                                                                      workers, ServiceCo has put an action plan in place to
     Hence, related to the high commitment, employees show a          improve the work experience of manual workers.
     very good level of advocacy for their company.
                                                                      EMPLOYEES WORKING REMOTELY
     ‘I think there are currently five people who are working in      A second area for improvement, which is closely related to
     ServiceCo that I have recommended.’ Director                     the previous topic, is about employees working remotely. As
                                                                      ServiceCo is present in over 200 locations across the UK, many
     ‘People who work here will get people into the business,         employees work in small teams at some distance from the
     either friends or family even. I have a father and son team      head office. In the survey, many remotely working employees
     working for me within my team.’ Manager                          feel that they received little attention and information from
                                                                      the head office. They indicate a strong preference to see their
     MANUAL WORKERS                                                   managers more often to increase mutual understanding of
     Although engagement levels at ServiceCo are generally very       work objectives and work environment, raise awareness of
     high, manual workers are significantly less engaged than other   problems occurring on remote jobs, and discuss new ideas or
     employee groups within the company. This finding is consistent   areas for improvement.
     with other companies employing manual workers and
     ServiceCo are ready to address this within the coming months.    ‘We’re out on a limb in the north of England and we very
     Manual workers at ServiceCo indicated some major points of       rarely have senior management come and visit so we don’t
     dissatisfaction. When asked about what could be improved         feel part of the whole with ServiceCo. It would be nice to see
     in their working life, they expressed a need to improve          more engagement from the senior management.’ Manager
     communication between the workforce and management.
                                                                      ‘You do hear of people who don’t get communicated to and
     ‘[The one thing which would help improve my working              feeling left out and I don’t know whether it’s the barriers
     life is] better communications between employees and             or it’s the managers or whether they’re not given the talks,
     managers.’ Manual worker                                         which may be the case. It’s especially in remote areas it could
                                                                      be that there’s more work to do there.’ Manager
     ‘Communications with my line manager and project
     manager are very good, communications with higher                The implication of having employees working remotely and
     management are less effective.’ Manual worker                    the difficulties in managing them are also recognised by
                                                                      some top managers.
     ‘It would be nice for the senior management to meet the
     staff.’ Manual worker                                            ‘Communication is not a challenge but something we have
                                                                      to work very hard at because we employ 8,500 people
     ‘Understanding by senior managers of how difficult the job       within the group and many of those are part-timers that are
     can be would improve my working life.’ Manual worker             very remote from head office and quite remote from their
                                                                      contract bases.’ Director
     Manual workers at ServiceCo also indicated that they would
     like to get involved more in decision-making and also would
     like to get more training to improve the way they are working.




10       CREATING AN ENGAGED WORKFORCE
‘I encourage face-to-face meetings. I have two senior             ‘I think people are willing to go the extra mile to put in the
managers that work for me and even though the teams               bid, they can be very hectic and very time-consuming and
are quite remote they will meet with them on a face-to-           a lengthy process and I think that when push comes to
face basis as regularly as possible, given the constraints of     shove people are willing to help out, step in and do what’s
travelling of course.’ Director                                   needed for the company and their team and for themselves.’
                                                                  Manager
‘I just think it’s down to the simple kind of human need
for that kind of contact and it is more difficult if you are      ‘The work–life balance sometimes goes wrong, particularly
managing remotely. It requires people to be more mature in        around bids going in, you know they get very intense when
their attitude and more self-contained and not everybody is       there are very significant bids going in, so the work–life
like that.’ Director                                              balance probably goes the wrong way.’ Director

However, although individual top managers are aware of            ‘We have gone through a period where we have been
these challenges and take necessary steps to integrate            extremely stretched with the amount of bids that we’ve
remote workers by making efforts to meet them regularly,          done and last year I think I’ve been involved with six, seven
ServiceCo would benefit from organisation-wide processes          bids and some of these have been long days, long weeks,
considering the management of remote workers.                     long months. Not only that, in my area I’ve had one contract
                                                                  that was not performing terribly well so we’ve been looking
WELL-bEING                                                        to improve the performance of that during the last year.’
In general, employees at ServiceCo experience high levels of      Director
personal well-being. A large majority of staff feel that their
work is highly sustainable and they are therefore able to         ‘When there’s a lot of bidding it’s really poor, you have no
continue working at their current pace. However, comparing        life.’ Manager
the levels of well-being across different groups at ServiceCo
reveals that contract managers experience significantly higher    ServiceCo should therefore monitor these roles more closely
levels of stress. They feel burned out more often and also have   to ensure that contract managers can cope with work
a less favourable work–life balance. The reason for the high      demands, and measures such as stress management training
workload is that on top of being involved in managing their       courses and health initiatives should be considered where
own contract, especially the most experienced and hard-           potential problems arise.
working contract managers are often drawn into bidding for
new contracts. Although employees generally like the team
effort and the atmosphere during bidding periods, which they
describe as motivating and exciting, the work–life balance
goes wrong when they are involved in too many bids during
the year.




                                                                              CREATING AN ENGAGED WORKFORCE                      11
Engagement across different
4 organisational contexts

      Fifty years ago, the American political scientist Wallace Sayre    of engagement based on the ‘say, stay and strive’ model.
      (1958) argued that public and private organisations are            Related survey questions focus on employee advocacy
      ‘fundamentally alike in all unimportant respects’. Since then,     and whether employees are happy to remain with their
      organisations have been transformed by new technologies,           organisation for the foreseeable future. Many organisations
      financial systems and management methods. In recent                in the private sector are also incorporating measures of
      years, public organisations have been encouraged to                engagement into annual surveys. We have seen evidence
      become more ‘business-like’ by adopting the management             of this in small, medium and large companies and across
      style and processes used in private organisations (Boyne           different industries.
      et al 1999). Research conducted by the CIPD has shown
      that work practices, such as carefully planned recruitment         Second, ‘engagement’ has been used within organisations
      and selection, targeted training and equitable rewards, are        as a more general term to describe workplace approaches
      significant drivers for organisational success. These practices    to improvement. For example, several private companies
      are increasingly being implemented by managers in both the         we studied used suggestion schemes under the banner of
      public and private sectors.                                        engagement. A local authority we studied is using an ambitious
                                                                         programme of employee involvement to engage staff. Often,
      As this report shows, employee engagement has emerged as           engagement initiatives are linked to training and mentoring.
      a useful way to measure the relationship between employee
      and employer. In this section, we compare the engagement           Our research suggests that there are no consistent or
      levels of employees across the public and private sectors.         distinctive differences between public and private sector
      We draw on the evidence from three public organisations            strategies around employee engagement. In some cases,
      – an NHS trust, local authority and central government             there are more similarities between sectors than within
      agency – and five private sector organisations – including         them. Particular initiatives depend on senior management
      manufacturing and service industries. In particular, we            style and corporate strategy, but also on the size of the
      consider similarities in the experience of work and explore        organisation, the type of workforce (for example skill level)
      how organisational context may contribute to differences in        and the type of work (for example work environment and
      engagement levels.                                                 location). Furthermore, external assistance is often provided
                                                                         by management consultancy and research organisations,
      ENGAGEMENT STRATEGIES ACROSS THE PUbLIC                            in which case, particular approaches in both the public and
      AND PRIvATE SECTORS                                                private sectors reflect the preferred method of the consulting
      Our research reveals that organisations in many parts of the       firm. Individual organisations have tended to give their
      UK economy are actively pursuing strategies to raise levels of     employee engagement strategies distinctive branding, but
      employee engagement. The management initiatives we have            the details and underlying initiatives are often very similar.
      observed take many different forms, paralleling the diversity of   One difference we did find was that public organisations are
      organisational needs. As the MacLeod Review recommended,           more likely to share and collaborate with the development of
      organisations need to find their own definition and approach       engagement methods. We found examples of groups being
      contingent with organisational context (MacLeod and Clarke         set up within local government, the NHS and the civil service,
      2009). We have observed two broad trends across the public         where managers are coming together to discuss employee
      and private sectors (Boyne 2002).                                  engagement and sharing ideas for improvement. This has
                                                                         tended not to be the case in the private sector, where
      First, we found that many organisations now regard                 competitive pressures mean companies are more likely to
      measures of engagement as the most significant measure of          pursue their own approach, often at considerable cost.
      employee attitudes or experience. Based on either a single
      question or several questions to make a composite measure,
      engagement has been incorporated into annual employee
      attitude surveys. For example, the NHS annual survey
      includes questions such as ‘I am enthusiastic about my
      job’, ‘time passes quickly when I am working’ and ‘I often
      do more than is required’. The Civil Service has a measure




 12       CREATING AN ENGAGED WORKFORCE
CASE STUDY:

LocalGov

With more than 50,000 employees, LocalGov is one                     Following the launch of the BEST programme, LocalGov
of the largest local authorities in the UK. Many local               decided to join the Kingston University Employee
services are managed in ten geographic constituencies                Engagement Consortium to further strengthen their
and decentralisation of duties is supposed to continue in            knowledge about engagement and identify areas that could
the future. In collaboration with the community and local            be further improved to strengthen levels of engagement
strategic partners, LocalGov has developed a strategic               across the workforce.
vision for the city, which centres around ‘being a global city
with a local heart’. LocalGov has identified several areas of        All employees working for LocalGov in the UK were invited
improvement to turn the vision into reality and works closely        to participate in the engagement survey. A total of 1,198
with its partners to achieve this.                                   questionnaires were returned, providing a response rate
                                                                     of 2.4%. Additionally, 21 face-to-face interviews were
The council has undergone significant changes and                    conducted with different managers, including HR managers,
restructuring initiatives in the past. A major change involved       team managers and service area managers.
the revision and alignment of pay structures in accordance
with new national guidelines following the Single Status             ENGAGEMENT LEvELS
Agreement, which was signed between local government                 The results of the survey indicate that LocalGov generally
and trade unions in 1997 to streamline all pay scales into           has an engaged workforce. Seventy-five per cent of the
one. Further changes will follow over the next few years.            respondents indicate that they are strongly engaged and
                                                                     7% are very strongly engaged. Seventeen per cent have a
In 2006, internal employee surveys indicated that employees          moderate level with respect to the engagement extent. In
at LocalGov felt disempowered and were not very motivated.           terms of engagement frequency, the results are similarly
As a response to these findings, LocalGov became interested          positive, with 17% being engaged daily and 65% being
in the topic of employee engagement and decided to initiate          engaged on a weekly basis.
the BEST (Belief – Excellence – Success – Trust) programme.
This council-wide initiative aimed at involving employees            ‘Oh most of them would go the extra mile, there’s probably a
in change management and decision-making by running                  couple who wouldn’t but the majority of them would always
workshops and empowering teams. The central idea behind              go the extra mile.’ Team manager
BEST is to give employees a voice and provide them with a
platform where they can give their opinion and share ideas           ‘Eighty per cent [really care about job]. I know that for some
for improvement. The initiative is generally well received           of them, if we’d have been high up on that list of closures,
from the employees; however, they also point out areas that          it would have really affected them, particularly some of the
still need more development.                                         older ones who just want to get to retirement now and enjoy
                                                                     the job they’re doing and do it quite well.’ Team manager
‘The BEST team are really, really working hard to do it, because
things have come and gone before. So I think it is starting to       The high levels of engagement in LocalGov are closely
embed itself. There’s still a huge amount of cynicism out there      related to the nature of work and the ethos of being a local
and it’s so important to get it seen as something that’s integral    government employee. As one manager puts it: ‘It’s the
as opposed to yet another thing we’ve got to tick the box on.        nature of the work as well, if you’re dealing face to face with
But I think it’s moving that way but then you see I’m closer to it   the public or you’re a social worker or a childcare worker, so
than other people.’ Policy manager                                   there’s that element.’

‘If you’ve got enthusiastic leaders then it seems to work. Last      In this case study we will consider which engagement-related
year we had a leader that wasn’t particularly enthusiastic           aspects LocalGov is managing well – job-related skills and
and nothing seemed to be carried forward from that. I think          flexible working opportunities – but also discuss which other
it is very indicative of who you’ve got doing the team leader        engagement strategies could be implemented to further
role.’ Team manager                                                  raise levels of employee engagement among the workforce –
                                                                     communication, appraisal process.




                                                                                 CREATING AN ENGAGED WORKFORCE                    13
Figure 2: Extent and frequency of employee engagement at LocalGov (%)

         80

         70

         60

         50

         40

         30

         20

         10

          0

                     Very weak/                Weak/                  Moderate/               Strong/               Very strong/
                       Never              A few times a year         Once a month           Once a week                Daily

                                          Overall engagement extent                       Overall engagement frequency




     JOb-RELATED SKILLS                                                    FLExIbLE WORKING OPPORTUNITIES
     One of the biggest strengths within LocalGov that clearly             Flexible working opportunities have been linked to high
     contributes to the level of engagement is a close match               levels of engagement in many studies. LocalGov offers a
     between the content of the individual roles and their                 variety of opportunities for their employees to work flexibly.
     level of skills. Almost two-thirds of respondents feel                As one HR manager explained, LocalGov tries to comply
     that they possess the necessary skills to carry out their             with all employee requests within the limits set by the need
     job at the required standards. Employees appreciate the               for service within the council. Flexi-time is the most popular
     amount of training they are provided with, which they                 working arrangement employees apply for and about
     feel is exceptionally high compared to other organisations,           two-thirds of the respondents have the possibility to work
     especially in a difficult economic climate.                           under a flexi-time arrangement. Other popular working
                                                                           arrangements include homeworking, shorter working weeks,
     ‘Yes, most of them [are right for their job], they’re quite           annualised or compressed hours and term-time contracts.
     good. What we find though is that as technology moves on
     we need to keep up to date you know and as new things                 ‘The head-office-based staff, we try and fit in with what
     come out, in the IT world that’s very regular and so people           people want. If they want to do a nine-day fortnight, we try
     need to be acquiring skills. So for us training is quite a critical   and arrange that.’ Head of service
     thing.’ Service manager
                                                                           ‘I think generally we encourage flexible working. There’s
     ‘Training is offered, it must be one of the few organisations         nothing about what I see that doesn’t realise that people
     that still places a great emphasis on training its employees          need to be flexible.’ Manager
     because the first thing in a recession that goes is the training
     budget, isn’t it?’ Head of service                                    ‘Flexible working arrangements for people who need it,
                                                                           they’re quite sympathetic to people’s needs.’ Manager
     ‘The training opportunities, I wouldn’t have got them
     anywhere else.’ Head of unit




14       CREATING AN ENGAGED WORKFORCE
But also within the regular set of working hours, managers          ‘I think a lot needs to be done on trust, working on trust.
have some discretion to give employees some flexibility if          In fact we had a conversation about that this morning at
needed, which is also appreciated by the employees.                 one of the meetings we had, you know that there’s still
                                                                    huge amounts to do to actually empower and build the
‘If ever my son is ill and I ring up and say “look we’re taking     self-esteem of the staff, you know it’s a uphill battle really
him to the doctor,” I would never get a “well, that’s not           and particularly when messages are coming out from the
acceptable.” I’ve always, always had a positive response in         leadership about, you know, flex systems, getting rid of
that regard and I likewise would do the same with my staff.’        middle management, sloth, getting rid of sloth, you know,
Manager                                                             so I think there’s messages that are not about trust.’
                                                                    Policy manager
‘If they want to take some of their time owed, time in lieu I
always try and help them, so I guess there’s flexibility there.’    APPRAISAL PROCESS
Manager                                                             Although HR practices and policies are perceived well within
                                                                    LocalGov, the appraisal process is a concern throughout
COMMUNICATION                                                       the organisation. Almost half of the respondents indicate
There are many changes and restructuring initiatives                that they are either dissatisfied or very dissatisfied with
going on at LocalGov. In general, employees feel that               their appraisal process. One of the major concerns is
communication processes around these changes do not                 that objectives are often abstract and not broken down
always function optimally. For example, a major change had          adequately to the individual level.
been reported in the media before the news of the change
had been given to the workforce, so that the staff got their        ‘The council has very aspirational, abstract objectives which
information from a local newspaper. Employees indicate that         I don’t really know what they mean. We’re going to have a
they often were not informed thoroughly about the details           “greener city”, well what does that mean? They’re sound-
of the change and were only given information sporadically          bites, they’re political sound-bites. From a practical point of
instead of on a regular basis. Also, employees perceive             view, to convert that into something that’s meaningful to
communication as inconsistent across different teams                the staff, that’s very difficult. So I think one big improvement
depending on the level of information and communication             would be to have clearer meaningful objectives set by the
abilities of their respective line manager.                         council that can be more easily interpreted and adopted by,
                                                                    you know, as this thing cascades down. So that’s a practical
‘We’ve all had a briefing that explained why the restructure        problem I find.’ Manager
was taking place. The only problem is the length of time, I
mean we’re talking about April and this was October time            Managers are unhappy with the appraisal process as well.
that this was communicated to us. And it’s a long time to           They feel that it was too rigid and does not allow for enough
have in the back of your mind – “what’s going to happen,            flexibility. They also respond that they do not have enough
what’s going to happen?”’ Team manager                              time to effectively conduct an appraisal with all team
                                                                    members.
‘So you’d report back and I know some managers just didn’t
report back to their staff, didn’t tell them what was going on at   ‘Performance management is not very successful because it’s
all and didn’t make any attempt to interpret it.’ Unit manager      very prescriptive at the moment, although again it’s going
                                                                    through a review at the moment so it may improve. But at
Consequently, communication processes around the                    the moment it’s very prescriptive, you have to have done x, y,
restructuring and downsizing of the workforce have a                z by this time and if you haven’t there’s no leeway whereas
somewhat negative effect on the relationship between                everybody develops at different levels, at different speeds
managers and employees. Trust between both has worsened             and in different ways and if you could be more flexible in
considerably following the changes, which impacts levels of         the way that you can develop the members of staff then it
engagement among the workforce.                                     would be more effective.’ Team manager




                                                                                CREATING AN ENGAGED WORKFORCE                    15
ENGAGEMENT LEvELS ACROSS THE PUbLIC AND                              Although public organisations display higher levels of social
     PRIvATE SECTORS                                                      engagement than their private sector counterparts, this
     We now consider what our research can tell us about                  does not mean public organisations are all highly effective
     differences in engagement levels across public and private           at socially engaging their staff. We saw instances of low
     organisations. Here we distinguish between engagement                take-up of involvement initiatives among some employees
     ‘extent’ – the overall strength of experience – and engagement       in both local and central government. In particular,
     ‘frequency’ – how often employees feel engaged at work. The          managers reported that because of the permeability of some
     results suggest that public sector employees are slightly more       government workplaces, employees had become apathetic
     engaged on the extent measure, with 72% being engaged                to the influence of involvement initiatives. Organisations in
     compared with 69% in the private sector. However, the                the public sector have more formal procedures for decision-
     difference is small. When looking at the frequency measure,          making, and are less flexible and more risk-averse than their
     there is a more pronounced difference, with private sector           private sector counterparts. Conversely, private organisations
     employees being engaged more often. Twenty per cent of               are less likely to place significant emphasis on knowledge-
     private sector employees say they are engaged every day,             and idea-sharing but, in the pockets where this is occurring,
     whereas 16% of public sector employees feel this way. We can         it is often more successful due to the flexibility and control of
     look into these findings in more detail by considering how the       senior managers.
     different dimensions of engagement – social, intellectual and
     affective – compare between the two sectors.                         The findings for affective engagement suggest that private
                                                                          sector employees are more strongly and more frequently
     Our findings for social engagement suggest that employees            emotionally connected to their work. This finding may
     in public organisations experience a stronger connection             stand in contrast to theoretical predictions of ‘public service
     to work colleagues and with more frequency than those                motivation’ – the idea that public sector employees are
     in the private sector. For instance, public organisations are        intrinsically motivated by a concern to serve public citizens.
     more likely to have cross-department meetings to discuss             For example, we might expect the prime motivation for
     problems and potential solutions. Government organisations           clinical staff working in the NHS to be the immediate
     at both local and central levels are keen to get teams and           health needs of patients under their care. While public
     departments actively thinking about solving local problems           sector employees do show a strong emotional attachment
     through improvement initiatives such as ‘lean’.                      to their work, private employees appear to experience
                                                                          a stronger connection. A possible explanation for this is
     One possible reason for this is the inherent ‘openness’ and          again the competitive pressure of private sector working
     ‘permeability’ of public organisations. In contrast to private       environments. Rather than through a concern for service
     organisations, where it is possible to create a relatively direct    users, private sector employees must face constant pressures
     organisational hierarchy in which senior managers enjoy              to survive economically in the marketplace, which can place
     considerable decision-making power, public organisations             a psychological burden on them. We spoke to employees
     must keep their boundaries open to the scrutiny of politicians       who felt a persistent emotional pressure to take work home
     and the public. We found that it is often the role of public         because of work demands and the competitive culture of
     managers to promote organisational communication and                 their organisation.
     knowledge-sharing, frequently through the use of IT. Public
     organisations are increasingly looking to consult and involve        Our interviews with staff suggested that workloads are
     their employees in a way that is enhancing the transparency of       increasing in many areas of the public and private sectors,
     organisational processes. Furthermore, the interdependence of        with particular strain being placed on first-line managers.
     many public organisations, such as civil service agencies, may       The time-frame of our research has picked up the effects of
     create a need for public organisations to collaborate more           the economic recession on employee experiences. This has
     than private organisations. Although there has been a move           had a more immediate effect in the private sector over the
     towards targets, league tables and public ‘choice’ throughout        last few years but is likely to have increasing ramifications for
     English public services in particular, there is significantly less   public employees in the near future.
     competition than in the private sector, where companies
     compete for limited market share.




16       CREATING AN ENGAGED WORKFORCE
The results suggest, on average, that public sector employees
are more strongly and frequently intellectually engaged than
private sector employees. This measure varies widely in both
sectors depending on the type of work and the seniority of
staff. Senior managers are almost always more intellectually
engaged than junior staff. We found that employees in
manufacturing and administrative roles are often the least
engaged on the extent measure and that professional
groups, such as hospital physiotherapists or accountants,
tend to be more engaged.

This research has suggested that employee experiences
across public and private organisations are becoming
increasingly alike. There are few consistent differences
in engagement strategies and initiatives between the
two sectors, and survey evidence shows that the overall
engagement levels are comparable. If Wallace Sayre
could comment today, he might argue that public and
private organisations are becoming alike in all important
respects. Nevertheless, we have found some differences
in the dimensions of engagement. In particular, public
organisations are more likely to engage their staff socially
whereas private organisations provide an environment where
employees are more likely to be emotionally engaged.

In the next section, we explore the relationship between
individual factors, such as age, gender, job status and
contractual arrangements, and employee engagement.


 KEY FINDINGS
 • Many organisations measure engagement and have
   specific engagement strategies across the public and
   private sectors.
 • Public sector employees are more strongly but less
   frequently engaged than private sector employees.




                                                                CREATING AN ENGAGED WORKFORCE   17
CASE STUDY:

     GovDep

     GovDep is a large government department that covers                GovDep joined the Kingston Business School Employee
     several customer-facing business areas. This case study is         Engagement Consortium to help develop new initiatives
     based on one of the larger agencies within the department.         around employee engagement as part of recent changes
     The agency has offices in various locations across England,        in the agency. The department already has a policy on
     including the south-east, the midlands and the north. Core         engagement and this research process is intended to feed
     values of the agency include ensuring an accurate, rapid and       into that work. The engagement research was conducted in
     joined-up service based around customer need; improving            two stages. First, a sample of 1,400 employees was invited
     value for money for the taxpayer; and reducing levels of           to complete an online questionnaire. From this sample,
     service error. At the time of the survey, the agency employed      571 online questionnaires were returned, providing a total
     over 16,000 people and their services are used by around           response rate of 41%. Second, 20 face-to-face interviews
     15 million customers in the UK.                                    were conducted with a range of managerial staff.

     The agency has recently undergone considerable change as a         There are standardised management grades across the
     result of a merger between two previously separate business        agency, including: Executive Officer (EO), which is the first
     units. This has led to a new management structure and              management level responsible for teams of operational staff;
     around 1,000 job cuts. Like many areas of the civil service,       Higher Executive Officer (HEO), which is the next level up
     there is an efficiency drive with overall reduction in financial   from EO and has responsibility for groups of operations or
     allocation for the next three years.                               decision-making teams; Senior Executive Officer (SEO), which
                                                                        has responsibility for wider units of operation; and Grade 7,
     The department has been interested in employee                     which is a middle management grade.
     engagement for several years. This interest stems from
     a drive to renew employment practices and processes as             ENGAGEMENT LEvELS
     part of a wider agenda of government modernisation. The            The results of the survey suggest that GovDep has a generally
     agency now conducts an annual staff survey that feeds              engaged workforce. Seventy per cent are ‘highly’ or ‘very highly’
     into improvement activities and has an increased focus             engaged overall. Twenty-nine per cent are moderate or unsure,
     on employee involvement initiatives. The majority of the           while very few people had low levels of engagement. Findings
     agency’s employees work in an office environment. There            with respect to engagement frequency are similar. Almost 70%
     is an emphasis on employee development, coaching and               are engaged on a regular basis; however, 28% engage only
     teamwork. There is also careful attention paid to diversity        once a month. These results may in part reflect the uncertainty
     and equal opportunities. Sickness absence rates have been          at this time of change within the organisation. Early analysis of
     relatively high in the agency over recent years and a new          the data from GovDep uncovered two main areas of strength
     performance standard for sickness has been put in place            that contribute to engagement – work–life balance and a
     with the aim to reduce sickness absence to fewer than 8.3          supportive social environment – and two areas that could benefit
     average working days.                                              from some attention to improve engagement – leadership
                                                                        development and employee involvement uptake.

     Figure 3: Extent and frequency of employee engagement at GovDep (%)

       70

       60

       50

       40

       30

       20

       10

        0

                   Very weak/               Weak/                Moderate/                Strong/                Very strong/
                     Never             A few times a year       Once a month            Once a week                 Daily

                                       Overall engagement extent                      Overall engagement frequency

18       CREATING AN ENGAGED WORKFORCE
WORK–LIFE bALANCE                                                     LEADERSHIP AND PERFORMANCE
Work–life balance is a considerable strength in the                   MANAGEMENT
organisation. This was praised by many managers and scored            An issue of concern at GovDep is the way leadership
highly in the employee survey. The flexi-time system is the           capacity is developed. There is a feeling that often individuals
jewel in the crown of employee practices at GovDep. Staff             are promoted into EO or HEO positions without having the
can accrue up to four days of flexi per month within the              core set of management skills, particularly interpersonal and
core hours of 7am–7pm. Interviewees felt that this is a main          mentoring skills.
attraction for staying at the organisation, particularly for
people with family responsibilities such as childcare:                ‘Give them the managers’ skills to manage people and make
                                                                      them people-focused, they need to be able to see that they
‘I think that’s one of the plusses really in the civil service, the   can get more done by involving the staff…We do need
work–life balance. The flexi is something that I think most           technical experts but not in management. Look at what
people would be lost without and that’s one of the things             management training we’re actually giving to them, not this
that maybe they look for from other things really, the flexi          e-learning as it goes on.’ HEO
and I mean I think it’s 37 hours a week we work, which is
not that bad really and with flexi, that you can have flexi,          A common concern is the type of training people were
afternoons off, you know, a day off.’ EO                              given. GovDep makes use of ‘e-learning’ techniques for
                                                                      training where individuals can take a course on topics such
Research participants report that the attention to work–life          as coaching or appraisals from the comfort of their work
balance meant that individual workers could create a work             desks. However, this is seen as an ineffective way to learn
pattern that was most appropriate to them. For example,               new skills because it lacked people interaction and what
one manager said that some staff prefer a late start, so they         people called a ‘learning environment’. One manager
work an 11am–7pm pattern, whereas others like getting in              commented that you can put a sticker on your chair to show
at 7am every day.                                                     people that you are training, but this does not take you
                                                                      out of the busy and distracting office environment. They
SUPPORTIvE SOCIAL ENvIRONMENT                                         reflected that it was very difficult to learn management skills
Another main strength at GovDep is the level of social                from the computer screen. The agency does provide other
support in the working environment. If employees are                  types of training, including face-to-face classroom training,
struggling with their workload, then their team members               as part of an overall ‘blended learning’ approach.
and immediate line manager will pick this up and try
to provide them with the help needed to improve their                 A related problem is the lack of performance management
confidence.                                                           skills at some management levels and the ability of managers
                                                                      to deal with underperformance. Although, as discussed
‘I mean most managers who I’ve worked for have been                   above, there are good levels of support within the office
supportive. I think the support you get with regards to, sort         environment, there is a reluctance or lack of ability to make
of like, meeting targets and things…you know, I’ve worked             difficult decisions and motivate consistent underperformers.
a lot in the outside industry and I think as an employer, I can
only think of one employer that was better than [GovDep].’            ‘So I don’t know whether or not even the team leaders have
HEO – operations                                                      succumbed to the personality of the team members within
                                                                      the team and I suspect there’s a little bit of that because
Most interviewees feel that there is a strong sense of                there seems to be a lot of…rather than leading the team,
teamwork in the organisation. However, there are some                 being part of the team, too many soft decisions are made to
signs of change in this respect due to the job cuts across            keep the peace.’ HEO
the agency. With the threat that some people within teams
will lose their jobs or be relocated, individual team members         Some feel that this is symptomatic of the wider culture
were behaving more competitively towards their colleagues             within the agency of not dealing with poor performance.
and not helping them out as much as they would normally.




                                                                                  CREATING AN ENGAGED WORKFORCE                    19
‘I think a small percentage of staff were moved and moved       EMPLOYEE INvOLvEMENT
     and moved, moved on, moved on, moved on where they              A further challenge for GovDep is encouraging the take-up
     should have addressed the problems. So they were moved          of involvement and improvement initiatives. The majority of
     on because they weren’t doing very well in their previous       managers feel that there are many opportunities for staff to
     role but then it still carried on? Yes, just being moved on.’   feed ideas to managers and share ideas among teams, most
     HEO                                                             commonly through team meetings. However, the take-up
                                                                     from staff, particularly at the lower levels, is not very strong.
     As the words from the HEO above suggest, there is a             Some managers feel that the type of work many operational
     tendency at times to just move bad performers into other        staff are undertaking means that they do not have time
     roles, thereby making it another manager’s problem without      away from their usual routines to take part in improvement.
     tackling the underlying problems of the underperformance.
     This is also seen to occur in performance appraisals in the     ‘I think to a certain degree people are just busy churning out
     past but was improving with the introduction of a new           the work and there isn’t always the time to [come up with
     appraisal system.                                               ideas]. I think you try to do that and certainly in our team
                                                                     we try to share ideas and have a regular team meeting with
     ‘What happened was that in previous years managers…it’s         our manager, usually once every fortnight, where we all get
     easier for the manager to give people a higher box marking      together and we put any items we want on the agenda and
     because it shuts them up really and therefore when this new     often we have quite long discussions because we all have
     system came in a few years ago people who were getting          different ideas and we try to come to a consensus.’ EO
     box ones and twos suddenly were down and the majority
     had three.’ EO                                                  ‘I would say my people have got opportunities; like it doesn’t
                                                                     stop, it’s continuous.’ HEO
     It is important to note that the issue of leadership
     development is not simply a problem with management             ‘If you are asking me – do people naturally come up with
     practice but is also an issue of how willing staff are to       suggestions and ideas to improve things – it’s a simple “no”.
     engage with development opportunities. In some areas,           Team leaders do but the people on the teams don’t.’ HEO
     managers suggested there was an apathetic reaction,
     or even resistance, from staff towards taking on more           One HEO talked about helping his or her staff with filling out
     responsibility and developing leadership skills.                a suggestion form with ideas for improvement. However,
                                                                     there was some cynicism as to the extent to which these
     ‘Yet as a manager, trying to get my staff to take on            improvement mechanisms really fed into the management
     development opportunities is like pulling teeth, they just      decision-making chain.
     don’t want to do it, they just want to come in, do the job
     and go home. So I actually find [GovDep] quite frustrating      ‘[The suggestion form] was a practical thing that she could
     with all the…I think they do too many staff surveys and         do – [I said] “look, we can do it now, come on let’s get on
     we…not being funny but I think we mollycoddle the staff a       with it and get it done” – and so that was great because it
     little bit.’ HEO                                                made her feel involved and things. She probably hasn’t got
                                                                     a hope in hell of changing it really but you never know, but
     ‘When you work in an organisation and you ask [almost one       she’s feeling that she’s contributing.’ HEO
     hundred] people “does anybody want to team lead” and
     none of them says “yes”, that says a lot, doesn’t it?’ HEO      A final opportunity for improvement is around cross-
                                                                     functional working. Several senior managers feel that
                                                                     there is scope for more learning across business units, both
                                                                     within the agency and more widely across the government
                                                                     department. For example, one manager had the ideas that
                                                                     groups could meet every quarter based on geographical area
                                                                     to discuss changes and ideas for improvement.




20       CREATING AN ENGAGED WORKFORCE
5 Engaging different employees

  Through our data we were able to explore whether there            ‘Yeah, too routine, they’ve been doing it for years. I would
  are any differences between the engagement levels of              be very surprised if you found they were satisfied, I’d say
  various employee groups. First, we considered demographic         they were not satisfied. The only thing that keeps them is
  variables.                                                        probably the money. That’s not being cynical but the jobs are
                                                                    quite well paid and that’s why a lot of them are still here.’
  We found some interesting variations. For instance, we            Manager, public sector, speaking of their direct reports
  discovered that women are significantly more engaged
  overall than men: while 74% of women report being                 ‘Working here? It’s very varied. I like that with the
  moderately engaged and 9% strongly engaged, 68%                   department and it’s busy, you know, I mean I’m never going
  of men are moderately engaged and 7% strongly                     to be bored, ever, which is great, I like that aspect of it.’
  engaged. This reflects the findings of our previous report        Manager, public sector, speaking of their own job
  (Truss et al 2006).
                                                                    Employees on flexible contracts emerge as being more
  In terms of caring responsibilities, it was interesting to note   engaged than others in terms of both extent and
  that employees with dependent children report significantly       frequency of engagement. Again, these findings broadly
  higher levels of engagement than those without. Eighty per        reflect those from our previous report (Truss et al 2006).
  cent of people with children report being moderately or           However, tensions can arise within flexible roles as people
  strongly engaged, compared with 77% of others.                    sometimes struggle to manage a heavy workload within
                                                                    restricted hours:
  We also explore the link between age and engagement.
  Younger people below the age of 25 are significantly              ‘I filled out a job satisfaction survey this morning and I think
  less engaged in terms of both extent and frequency of             I would have scored – oh my god, why are you working at
  engagement. This corroborates the findings of our earlier         all?…ask me when everybody is back at work and I’m not
  research (Truss et al 2006).                                      covering for people. There are a few weeks when I think –
                                                                    yup, I can cope with this, and there are other weeks when I
  Next, we explored associations between working patterns           think – oh my god, I’m glad I’m only job-share – but I think
  and engagement. Full-time employees are significantly more        that might be part of my problem...I try not to take work
  engaged with their work than part-timers in terms of both         home, I did it this week.’ Manager, public sector
  extent of engagement and frequency. Those on permanent
  contracts are similarly significantly more engaged (78%)          Generally, however, we found that senior managers
  than temporary workers (74%). The quote below illustrates         appreciate the importance of work–life balance and flexibility
  the destabilising impact that temporary contracts and             and try to set a personal example for their staff:
  continuous change can have on employees:
                                                                    ‘I think over the years I’ve toned the number of hours down.
  ‘[The frequent change] feeds people’s cynicism about when         I think it’s important for people like myself to set an example
  the organisation has changed like – we’ve done this before,       there, and as I say, I try to influence others and I feel that if
  we’ve had this, we’ve had that, we’ve had the other – and I       they’re going…or they’re travelling, they’re coming to work
  think it would help if it [the change programme] was sort of      and they’re travelling at night, and I say, “oh no, you’re not
  longer term.’ Manager, public sector                              doing that.”’ Senior manager, construction

  Managers are significantly more engaged than non-                 Looking broadly at our data on individual differences
  managers and, in general, we found that those in                  and engagement, it seems that there is a link between
  professional or managerial roles are the most engaged.            job type and engagement. Younger workers typically
  While 88% of managers report being moderately or strongly         have less interesting and involving work to do than their
  engaged, this is true for 71% of others. The quote below          older counterparts, which may explain their lower levels
  illustrates the way that job content may impact on people’s       of engagement overall. Similarly, managers may be
  attitudes towards their work:                                     more involved in decision-making processes within their
                                                                    organisations and experience greater autonomy than non-




                                                                                CREATING AN ENGAGED WORKFORCE                     21
managers, which may explain why their engagement levels
     are significantly higher. It is difficult to explain why women
     are more engaged in their work than men. Further research
     is needed to explore these issues in more depth. In the next
     section, we consider which managerial strategies have the
     most impact on levels of engagement.


      KEY FINDINGS
      • Women are more engaged than men.
      • Younger workers are less engaged than older workers.
      • Those on flexible contracts are more engaged.
      • Managers are more engaged than non-managers.




22       CREATING AN ENGAGED WORKFORCE
6 Strategies for engagement

  Previous research has identified a range of workplace            ‘I am providing an essential service for several hundred
  strategies that impact upon levels of engagement. We ran         thousand people, in fact probably for half a million
  statistical tests to find out whether we could see a similar     people. So in that context, my job is very meaningful in
  pattern across our organisations and analysed the associations   terms of my customers, my client. I provide a meaningful
  between meaningfulness, perceptions of managers, employee        service to them. And I think it carries with it a social and
  involvement, HR practices and engagement.                        environmental and corporate responsibility which makes it
                                                                   meaningful as well.’ Manager, EnvironmentCo
  MEANINGFULNESS
  The extent to which employees find meaning in their work         The above quotation shows that where people can see the
  has a substantial impact on how they feel about their            impact of their work on other people or society in general
  working life in general. Employees who believe that their        then their jobs are seen as more meaningful.
  work is important and that they can make a difference have
  much more positive perceptions about their work and their        The nature of the organisation might facilitate this process
  work environment. Previous studies have demonstrated             and help employees find their jobs meaningful. Traditionally,
  the positive impact of meaningfulness on employee                public sector employees have been regarded as having
  engagement (Cohen 2008, Kahn 1990, May et al 2004).              a distinctive work ethos that stands in contrast to the
  The data in our study largely confirm these findings by          profit motive of private organisations. Our analysis shows
  demonstrating that having a meaningful job is the most           that individuals working for public sector organisations
  important factor influencing levels of engagement. This is       find greater meaning in their jobs, compared with their
  true for all types of worker in all kinds of jobs.               counterparts in the private sector.

  Our study demonstrates that about two-thirds of all              ‘Local authorities are not in the game that people are
  respondents find meaning in their work, compared with 8%         running off doing all sorts of things on their own. The work
  who do not find their job personally meaningful. Employees       has to have some meaning and some purpose, it can’t be
  who are able to relate their tasks to a broader context and      just somebody “Oh I fancy doing this task this week.”
  feel that they can make a difference have higher levels of       We’re in the wrong job for that kind of thing.’
  motivation and are more likely to be engaged.                    Team manager, LocalGov




  Figure 4: Meaningfulness (%)

    70

    60

    50

    40

    30

    20

    10

     0

                Very low                 Low                  Moderate                High                  Very high




                                                                              CREATING AN ENGAGED WORKFORCE                       23
Moreover, meaningfulness is largely attached to the type of
     work individuals are asked to carry out in an organisation.
     Our analysis reveals that managers find it easier to see the
     importance of their work compared with non-managers; and
     professionals and senior line managers perceive their jobs to
     be highly important, whereas process, plant and machine
     operators and other low-skilled workers less frequently relate
     to their jobs on a personal level.

     Besides these contextual factors, managers are essential in
     helping individuals find meaning in their work. One way to
     facilitate this is through regular communication about the
     organisation’s vision and future objectives. Creating a common
     framework helps employees to see a bigger picture in their
     daily work. Moreover, managers play a crucial role in designing
     jobs in such a way that individuals are enabled to experience
     positive feelings during their work. Job enrichment is just
     one of the effective techniques that enable organisations to
     create meaningful jobs, even for more routine tasks. However,
     independently from the type of work, it is important to match
     people to their jobs according to their qualifications and skill
     levels to raise their level of engagement.


      KEY FINDING
      • Meaningfulness is the most important driver of
        engagement for all employee groups.




24       CREATING AN ENGAGED WORKFORCE
CASE STUDY:

ScienceCo

As a public sector organisation, ScienceCo is an important     As part of its changing careers initiative, the HR department
supplier of scientific information in the UK. More than 700    aims to develop a range of new HR practices and policies.
employees are employed at ScienceCo, a large proportion of     Employee engagement provides the company with a
whom are scientists researching topics such as sustainable     framework to integrate these policies and evaluate their
use of natural resources, impact of environmental change       effect on ScienceCo employees. The participants in our
and spatial modelling. ScienceCo is partially funded by the    study were 798 employees working for ScienceCo. All
Government but also receives income through commissioned       employees were invited to complete an online questionnaire
research from the private and public sectors. ScienceCo is     survey. From this sample, 240 questionnaires were returned,
currently undergoing a period of considerable change. For      providing a total response rate of 30%. Additionally,
the previous decades, ScienceCo had experienced a very         two face-to-face interviews were conducted with senior
stable workforce that effectively met its needs. Typically,    managers working for ScienceCo.
employees would join the company as graduates and stay
with ScienceCo for a long time. Turnover rates were very low   ENGAGEMENT LEvELS
and many employees were given opportunities for training       The overall results reveal that employees at ScienceCo
that meant they were able to meet business needs whenever      demonstrate particularly high levels of engagement.
ScienceCo had to move into a different area of research.       Seventy-seven per cent of all respondents are strongly
                                                               engaged overall and an additional 8% report being very
Changes in the economic climate and demands from               strongly engaged. The values for the frequency dimensions
major stakeholders prompted the HR department within           are slightly lower, with 65% indicating that they are engaged
ScienceCo to launch new initiatives that encouraged a          once a week and 6% on a daily basis. However, 26% say
different career pattern to move towards a more dynamic        they are engaged once a month only.
workforce. Instead of hiring employees for a lifetime,
ScienceCo now aims to attract an increasing number of          Employees score very high on affective engagement, with
graduates and postgraduates who want to be part of the         40% indicating that they are very frequently engaged on this
organisation for three to five years, then go away to work     dimension.
for a different organisation and then maybe come back
when they have developed other skills: ‘The career path that   ‘On the scientific side it is very much the case that they live
we are describing for the future is more come to us, learn     and breathe it, so it’s not just a job, it’s a major part of life.’
some things, gain some skills, go somewhere else, move on      Manager
and maybe rejoin us later in your career as a senior leading
scientist.’ HR manager




Figure 5: Extent and frequency of employee engagement at ScienceCo (%)

  80

  70

  60

  50

  40

  30

  20

  10

   0

             Very weak/              Weak/               Moderate/                Strong/                 Very strong/
               Never            A few times a year      Once a month            Once a week                  Daily

                                Overall engagement extent                     Overall engagement frequency

                                                                            CREATING AN ENGAGED WORKFORCE                        25
‘I think the scientists are absorbed in what they’re doing and   HR PRACTICES
     greatly dislike anything that stops them being absorbed in       An important area of improvement within ScienceCo is the
     it.’ Manager                                                     sophistication of HR practices and policies. A considerable
                                                                      number of respondents indicate that they are dissatisfied
     Levels of intellectual engagement are also very convincing.      with HR practices and policies and the majority group is
     The majority of participants (66%) feel ‘strongly’ engaged       moderate on this aspect. When analysing each HR practice
     on this measure and most employees think about ways to           separately, our study finds that employees are highly satisfied
     improve their job at least on a weekly basis.                    with their training and development opportunities and also
                                                                      feel that they have a high level of job security. However,
     In the following sections we will consider factors that are      employees rate career management and opportunities for
     associated with engagement. We will point out a major            promotions more negatively and are especially dissatisfied
     strength at ScienceCo, meaningfulness of work, but also          with the appraisal system. They also feel that the rewards
     talk about important aspects that could be improved to raise     they receive are not related to their performance at work.
     engagement levels with the organisation, HR practices and
     attitudes towards managers. Furthermore, we analyse two          Although our research study overall indicates that HR
     challenges at ScienceCo: person–job fit and organisational       practices are not directly associated with engagement,
     advocacy. Challenges are aspects related to engagement,          HR practices influence levels of engagement indirectly via
     where employees currently score very highly, but that are        management behaviour and a supportive work environment.
     likely to be subject to change in the near future.               Improving the above-mentioned practices could therefore
                                                                      help to further increase engagement levels at ScienceCo.
     MEANINGFULNESS
     A major strength within ScienceCo is the value employees         ATTITUDES TOWARDS MANAGERS
     place on their work. Almost four-fifths of the respondents       The relationship between management and employees is a
     indicate that they find their work meaningful. A lot of this     very important aspect of an individual’s working experience
     comes down to the nature of the job many employees carry         and it directly impacts upon engagement levels across
     out at ScienceCo. A large proportion of the workforce is         the workforce. Assessing employees’ perceptions of their
     employed as scientists who do research on environmental          line and senior management is a good indicator of this
     subjects, and many find that the work they do in their jobs is   relationship. To get a detailed picture of the dynamics
     worthwhile. A vast majority of respondents also indicate that    underlying the relations between managers and employees,
     their job activities are personally meaningful and significant   we measured three different scales. The line management
     to them. These results are reflected in the interviews, with     scale encompassed questions concerning communication,
     managers pointing out that for some employees work is            fair and respectful relationships and whether line managers
     their hobby.                                                     listened to employees’ ideas and suggestions. Additionally,
                                                                      two separate sets of questions were asked for perceptions
     ‘You know for many of our employees, if they weren’t being       of the senior management: first, communication and vision,
     paid to do their work here it would be their hobby. They are     that is, how employees rate communication from their
     absolutely involved in the study of their respective subjects.   senior managers and feel that they are listened to; second,
     It’s their life.’ Manager                                        overall effectiveness, that is, the degree to which employees
                                                                      feel that their senior managers have an effective and fair
     ‘We are an organisation that’s involved in environmental         management style.
     research and anyone who is working for us is passionate
     about the life of the planet and the state of the planet. They   At ScienceCo, 69% of respondents perceive their line
     are keen to pursue whatever end necessary to advance the         management in a positive or very positive way. In contrast
     cause.’ Manager                                                  only 5% express negative or very negative perceptions of
                                                                      their line managers, and 26% are unsure about how to rate
                                                                      their line management. The scores drop significantly when
                                                                      respondents were asked to rate their senior management
                                                                      and a considerable portion of the respondents, one-third,




26       CREATING AN ENGAGED WORKFORCE
Figure 6: Attitudes towards managers at ScienceCo (%)



    Senior management
                                  3              26                                  51                                    17           3
communication and vision




     Senior management
            effectiveness         3              26                                  49                                   20            2




                               1

       Line management             4             26                                  54                                          15




                              0             10        20          30   40       50         60         70         80         90          100


                            Very negative              Negative             Neither/Nor              Positive                    Very positive



   judge senior management communication and overall                    ORGANISATIONAL ADvOCACY
   effectiveness negatively. The vast majority of respondents           Employees at ScienceCo demonstrate very high levels of
   are unsure about their senior management and only about              organisational advocacy. Almost 90% of respondents would
   a fifth feel positive about the way senior management                recommend ScienceCo as a good place to work to family
   communicate and work. The results indicate that there                and friends. This compares with a small minority who would
   is room for improvement regarding senior management                  not want to recommend ScienceCo to friends and family.
   behaviour and visibility, which might also help to further           Following from this positive finding it is not surprising that
   increase engagement levels at ScienceCo.                             many employees have been working at ScienceCo for a very
                                                                        long time and turnover rates are generally very low.
   PERSON–JOb FIT
   A major strength within ScienceCo is the extent to which             ‘It is a low turnover rate. We’ve looked at this fairly recently
   employees feel that their skills are a good match with their         and certainly over the past 10 or 15 years the turnover
   jobs. Person–job fit has been identified in previous research        rate has been in the order of 4% or 5%. This last year, it’s
   as one of the important factors impacting upon levels of             actually been 2%.’ Manager
   engagement. At ScienceCo almost 85% of respondents
   feel that their job is right for them compared with only 2%          ‘We certainly have a very large number of over-50-year-old
   who indicate a low fit between the job they were asked to            employees. That follows on from a lot of recruitment in the
   carry out and their skills. More than four-fifths say that their     mid to late 1970s, and many of those employees are still
   abilities fit well with the demands of their jobs and a similar      with us.’ Manager
   number of respondents feel that their personality is a good
   match for their job.                                                 As can be seen from these findings, employees at ScienceCo
                                                                        demonstrate exceptionally high levels of loyalty, which clearly
   This excellent feedback from ScienceCo employees is likely           contribute to the positive engagement levels. However, similar
   to change due to the changes in career management                    to the positive findings on person–job fit, changes are likely to
   approach described above. The decision to move towards               occur with respect to high tenure and low turnover rates with
   a more dynamic workforce has major implications for the              ScienceCo introducing its dynamic workforce concept.
   organisation, which have to be managed and evaluated
   carefully.                                                           We would like to thank Jasleen Lonial for her help in
                                                                        collecting the data upon which this case study is based.


                                                                                     CREATING AN ENGAGED WORKFORCE                       27
MANAGEMENT AND LEADERSHIP APPROACHES                                    respondents rate their line management positively, compared
     There is considerable evidence from prior research that                 with 15% who have a more negative view of their line
     perceptions of managerial processes impact on engagement                managers. Our study further reveals that positive perceptions
     (De Mello e Souza Wildermuth and Pauken 2008).                          of line managers were associated significantly with extent
     Evidence suggests that employees’ level of engagement                   of employee engagement. This result indicates that line
     and other work responses are affected by their perceptions              managers may have a significant role to play in raising levels
     of management style. For example, opportunities for                     of engagement.
     upward feedback increase engagement through greater
     participation, which, in turn, relates to greater understanding         ‘My perception of what’s actually wrong with this
     of wider organisational issues as well as personal                      organisation is that we have a lot of very good people who
     involvement (Robinson et al 2004). The belief that managers             are not good people managers. The problem this creates is
     are interested in employee well-being is also relevant since            that people at the bottom, who probably have most of the
     perceived reciprocation of effort is an important motivator of          ideas, can’t communicate those upwards because the people
     engagement and related behaviours. Effective leadership also            in the middle over-filter or don’t bother at all.’
     encompasses individual-level feedback, which can increase               Accountant, PlasticCo
     both engagement and performance (Alimo-Metcalfe and
     Alban-Metcalfe 2006).                                                   Relating to the quotation above, we identified several
                                                                             aspects of the line manager’s role that can enhance
     In our study, we asked employees to rate their line and                 employee engagement. Starting with recruitment and
     senior managers. For senior management, we focused on                   selection, line managers need to ensure that the right people
     effectiveness and asked respondents to rate the degree to               are placed in jobs that are appropriate for their skills and
     which employees feel that their senior managers have an                 abilities. Line managers need to communicate goals and
     effective and fair management style. Questions about line               objectives clearly, so that employees can focus their effort
     managers focused on communication, fairness and trust.                  and engagement on specific tasks. These objectives can
                                                                             encompass helping employees to see how their role fits with,
     PERCEPTIONS OF LINE MANAGERS                                            and contributes to, the bigger picture of the organisational
     Line managers have a critical role to play since they are the           strategy. Finally, there needs to be a clear cycle of reciprocity
     interface between employees and senior managers. This is                where effort, engagement and reward are mutually positive
     particularly important in large organisations where there is            and reinforcing. This cycle should include opportunities for
     typically little contact between the senior management team             development and promotion so employees can see their
     and employees. Our data show that 56% of our                            future trajectory within their organisation.




     Figure 7: Management perceptions (%)




        Line management            4         11                29                                      46                              10




      Senior management
                                       8          20                              40                                      29                3
             effectiveness



                               0             10        20          30   40             50      60           70       80         90          100


                             Very negative              Negative               Neither/Nor               Positive                    Very positive




28       CREATING AN ENGAGED WORKFORCE
PERCEPTIONS OF SENIOR MANAGERS AND                                  perceptions of managers alongside a generally much more
EMPLOYEE ENGAGEMENT                                                 positive perspective could encourage employees to work
Respondents in our study rate senior management lower               harder, become more engaged and see a range of benefits of
than their line managers. Only about a third believe that their     doing so. These employees might seek managerial positions
senior managers are effective leaders and the majority, 40%,        themselves, and such ambitions can be positive for the
are unsure about how to evaluate their senior managers.             individuals as well as the wider organisation. However, the
Questions included items such as ‘senior managers treat             general recommendation is that positive attitudes towards
employees with respect’, and ‘senior managers are fair in           managers are important to achieve, and more likely to have
their treatment of me’.                                             considerable and broad benefits than the specific influences
                                                                    that some negative perceptions might have. We would not
  In the questionnaire surveys across the eight organisations we    wish to suggest that senior managers should actively seek
  included the open-ended question: ‘What is the one thing          out negative views from their employees! In contrast with
  which would improve your working life?’ Many employees            the findings on senior management effectiveness, our scale
  commented about their senior managers. Example comments           capturing communication between senior managers and
  are listed below:                                                 employees, visibility and senior managers’ vision for their
                                                                    organisation is positively related to engagement; in fact, this
  •	more open and effective communications from senior              emerged as the third most significant driver of high levels of
    management                                                      engagement.
  •	improve information-sharing within the organisation,
    especially from senior management to lower levels               Senior managers have a significant role in creating an optimal
    within the organisation                                         working environment and helping line managers to achieve
  •	better communications all round would be a vast                 this for their employees. Two critical components are the
    improvement on how things are at present, especially            design of jobs and the organisation of work. As noted above,
    between line workers and senior management.                     people need to be in the right jobs with appropriate targets to
                                                                    channel their engagement. The corollary is that the jobs must
The evidence from earlier studies reviewed above, as well           be designed to ensure that they have appropriate breadth and
as our own research, shows that positive perceptions of line        depth. Where jobs are limited, such as production line tasks,
managers have a positive impact on engagement. Our data             then jobs can be enriched through additional responsibilities.
regarding perceptions of senior managers and, specifically,         Such job enrichment leads to a range of positive outcomes
their effectiveness, reveal a different pattern. We found that      such as enhanced performance, reduced turnover and
perceptions of senior managers’ effectiveness are negatively        increased engagement (Parker et al 2006).
associated with engagement. That is, low ratings of senior
managers’ effectiveness are associated with high levels of
employee engagement. At first glance, this might appear to
be a counterintuitive result. Certainly, it does not fit with our     KEY FINDINGS
general pattern of positive relationships between perceptions         • Senior management effectiveness is negatively related
of work and engagement. Yet, there are some similar                     to employee engagement.
findings in other studies. For example, some research has             • Senior management vision and communication is a key
suggested that a moderate level of dissatisfaction could be             driver of engagement.
a powerful motivator (Frese 2008). It is possible that a small        • Positive perceptions of line managers are strongly
degree of negative responses to work could have a role in               linked with engagement.
driving need for change. In this case, having some negative




                                                                                CREATING AN ENGAGED WORKFORCE                   29
CASE STUDY:

     PlasticCo

     PlasticCo is a leading plastics manufacturer producing             Considering the challenges in the manufacturing setting and
     blow-moulded plastic bottles for the UK food and drink             traditional management approach at the company, it was a
     industry. The company grew in the 1990s from the merger            bold move from the senior managers to attempt to change
     between several medium-sized manufacturing businesses.             towards a more participative approach. One of the first steps
     The company operates from eight sites across the UK and            the managing director took was to create an ‘Employee
     has a turnover in excess of £100 million. It currently has         Engagement Steering Group’ involving key managers from
     a workforce of around 650 employees and is part of a               across the organisation. A leadership and development
     multinational packaging group of companies.                        manager was also appointed with the specific role of
                                                                        increasing the engagement of the workforce. The incumbent
     The leadership style at PlasticCo has traditionally been           to this role described the company as being at a crossroads:
     described as ‘top–down’ with an autocratic approach                ‘we either go on as before, or we take some risks, involve
     to problem-solving. However, recent changes in senior              and let go gradually.’ She also stressed that the change is
     management have led to a new strategic direction for               ‘not about driving employees to work harder, but about
     the company. A new managing director was appointed                 providing the conditions under which they will work smarter
     in 2007, bringing a more participative vision. With full           and to offer their opinions, ideas and solutions to problems
     board support, a business case was made for a three-year           that they encounter.’
     transition towards an involvement-orientated culture. At the
     heart of this approach are people development, teamwork,           Demonstrating the new participative approach, all PlasticCo
     communication and a more open leadership style. The                employees were included in the employee engagement
     new management team made clear that the company was                questionnaire conducted for this project. A total of 650
     profitable and performing well and that the change was             questionnaires were distributed and 484 were returned,
     part of a new strategy of continuous improvement towards           providing a high response rate of 75%. Thirty-four
     greater performance. PlasticCo joined the Kingston Business        interviews were also conducted with managers from various
     School Employee Engagement Consortium at the start of              departments and levels. Finally, two focus groups were held
     this transition to help assess the levels of engagement in the     with 11 shop-floor workers across the sites. Employees were
     company and identify potential avenues for improvement.            given paid time on their shift to complete the questionnaire,
                                                                        and help was offered to employees for whom English was
     The majority of PlasticCo employees work within the                not a first language.
     bottle-producing factories operating the blow-moulding
     machinery. There are head office functions such as                 ENGAGEMENT LEvELS
     personnel, managerial and administrative roles outside of          The results of the survey suggest that at the start of the
     the factory, but these are relatively small in number. The         change process the company had a generally ‘high’ level
     factory work setting presents many challenges for managers         of engagement in the workforce, with 60% of employees
     trying to increase employee engagement. Many of the jobs           in this category. However, only 7% of employees were
     require a relatively low level of skill and are repetitive, with   ‘very’ engaged and 3% had a ‘low’ level of engagement.
     tasks including transporting materials around the factory          This outcome was not a huge surprise for the senior
     and operating particular parts of the machinery. Employees         management team but gave a measure of the work that
     generally have few qualifications. A further challenge is the      was needed to create a highly engaged workforce. Levels
     shift pattern on which the factory process is based. Around        of engagement frequency were slightly higher. Forty-nine
     80% of factory employees work a strict 12-hour shift               per cent of the respondents indicated that they are engaged
     pattern, with four days on followed by four days off. Shifts       once a week and another 26% are engaged on a daily basis.
     either run through the day (8am–8pm) or night (8pm–8am).           In contrast, 7% said they are rarely engaged.
     The production process runs 24 hours a day, 365 days a year,
     including all bank holidays and Christmas Day. Employees
     have to adjust their home lives to the system and adapt to
     unsociable working hours. A further potential challenge is
     the factory working environment, which is noisy and hot.




30       CREATING AN ENGAGED WORKFORCE
Figure 8: Extent and frequency of employee engagement at PlasticCo (%)

  70

  60

  50

  40

  30

  20

  10

    0

              Very weak/               Weak/                  Moderate/               Strong/               Very strong/
                Never             A few times a year         Once a month           Once a week                Daily

                                   Overall engagement extent                      Overall engagement frequency




Analysis of the data from PlasticCo uncovered three main            ‘Very little at the moment, very little I would think. As far
areas that need addressing to improve engagement –                  as people actively talking about [ways to improve their job]
decision-making, people management and organisational               instead of talking about the weather or the traffic or the
advocacy.                                                           newspaper or TV, do they then say “how can I do my job
                                                                    better?” I doubt it.’ Senior manager
DECISION-MAKING
A common problem identified by managers across the                  Perhaps the biggest opportunity for the future at PlasticCo
organisation was that problem-solving tended to be                  was the survey finding that employees really care about their
‘reactive’ rather than ‘proactive’. In practice, this meant there   work and want to do a good job. However, because in the
was little effort to come up with ideas for improvement, but        past they were given little opportunity to contribute to the
rather issues were resolved only when problems arose. A             improvement of work processes, their interest had gradually
plant manager summarised this:                                      declined:

‘I think it’s probably more based around problems rather            ‘I do realise working in places that you are just a number...
than them sitting around and asking how am I going to               if they didn’t need you, you wouldn’t be here. I do feel as
improve my job? It’s very much if there’s an issue – how can        well, when I’m in my job I give it 110% but I used to give it
we improve it? So I think it’s more reactive problem-solving.’      130%.’ Shift manager
Plant manager
                                                                    To respond to these considerable barriers to engagement,
This problem linked into how decisions were made more               the recently established employee engagement steering
generally in the factories. Control and responsibility tended       group introduced a number of measures to increase
to be concentrated with a few managers who made changes             employee involvement and a more participative decision-
on an ad hoc basis. There was very little encouragement             making process. First, an initiative was set up that would
from managers for shift workers to become involved in               allow all employees to feed back their views and ideas
decision-making. With little chance of influencing decisions,       directly to the managing director. In break periods, the
workers tended to ignore issues unless they were told               managing director invited the employees from each team
directly by managers about them. This problem was picked            and shift to meet with him and ‘challenge’ him. This was
up by one senior manager who reflected on the level of              a strong signal of change to the workforce and produced
involvement in the factories:                                       some early enthusiasm from employees. A second initiative
                                                                    also showing new commitment to listening to employee




                                                                                CREATING AN ENGAGED WORKFORCE                   31
views was being involved in the Kingston Business School          To attempt to overcome the problems of people
     Employee Engagement Consortium and survey. After                  management, senior managers at PlasticCo introduced some
     receiving the results, the leadership and development             new initiatives for managers to think about their style and
     manager visited all factory sites to report back the results      start to develop new ways of working. Management groups
     direct to staff. A third initiative in the area of decision-      were set up to identify areas of skills shortage and staff
     making was to set up cross-functional problem-solving             development needs. Formal HR practices, such as appraisals
     groups that would meet periodically to discuss ideas for          and training, were discussed as important avenues for the
     improvement.                                                      future.

     PEOPLE MANAGEMENT STYLE                                           Following the results from the engagement survey,
     The management style at PlasticCo was traditionally left to       PlasticCo made a conscious effort to improve relationships
     the proclivities of individual managers. In most factories, the   between employees and managers within the company. A
     leadership style was described as performance-focused and,        performance review process was introduced to encourage
     in some, the culture was seen as ‘hard-nosed’, to quote one       employees to talk to their line managers about their day-
     manager. In essence, little attention had been paid to people     to-day targets, personal objectives and development plans
     management in the past. Before the strategic redirection,         as well as their career aspirations. A new task set for line
     there were few HR practices in place. Training was limited        managers was to engage with their team members to find
     and there was little emphasis on teamwork.                        out each individual’s motivator and to ensure that they
                                                                       stayed committed to PlasticCo.
     When comparing the employee engagement levels against
     the performance of the factories, there is generally a positive   Many of the line managers that were interviewed for the
     correlation between engagement and performance. It is             research said how they thrive on the challenge of their work:
     interesting to note that factories tend to perform well or
     badly across all employee attitudes. The most surprising          ‘I enjoy the role. I think there’s a challenge of something
     result comes from one factory that is performing very well        different every day. There are things that you get frustrated
     by many measures, including productivity, efficiency and          with but I enjoy it. I’m still motivated for it, I’m determined
     unplanned downtime. However, workers in the factory are           for the site to get better so for me personally I find it quite a
     amongst the least engaged from the employee sample.               challenging role and an enjoyable role.’ Plant manager
     This clearly contradicts the idea that engagement and
     high performance are always related. An important piece           An important consideration for shaping people management
     of information that may help to explain this is that the          in PlasticCo is to be realistic about the scope for new ways of
     factory was recently reconfigured with new machinery that         working. The nature of manufacturing work often leads to
     increased automation of the production process. While             highly automated, repetitive tasks and a clear performance
     management saw this as an excellent investment, shift             focus on efficiency and productivity. For example, some of
     workers were less satisfied with the change because they          the lowest-skilled job roles are seen as too restrictive to be
     saw this as another snub of them and their interests. They        able to foster job satisfaction and engagement by managers.
     felt that all management attention was put into improving         Conversely, we might argue that because there is a highly
     the production process with no investment in the people.          mechanised work environment, it is more important for
     It only reduced the opportunities to contribute to the            managers to make a concerted effort to consider their
     improvement of the production process. The plant manager          team’s needs because these do not flow naturally from work
     admitted:                                                         processes. A key challenge for the senior management team
                                                                       is to explore how people management and development can
     ‘All the sites were very much driven on running better,           become a key focus for first-line managers at PlasticCo.
     running lean, running light, we’re all very focused on that
     and I think maybe sometimes we forget the people side of
     things.’ Plant manager




32       CREATING AN ENGAGED WORKFORCE
ORGANISATIONAL ADvOCACY                                              EvOLUTION OF A NEW CULTURE
A final area that needs careful attention at PlasticCo is            There have been some recent changes at PlasticCo with
the findings of very low levels of employee advocacy for             the aim of improving communication and advocacy. An
the organisation. Most employees said they would not                 experienced learning and development professional has been
recommend the company as an employer to their friends and            hired and promoted to director within 12 months. Moreover,
family. Improving decision-making and people management              a new HR strategy has been implemented focusing on the
style will be two clear avenues for improving advocacy.              key aspects of attraction, development, retention, and
Another suggestion is to put more effort into celebrating            reward and recognition.
what the organisation already does well. One such area
mentioned during interviews was opportunities for career             One group of employees had taken responsibility for a two-
development and promotion within the business. There was             day recruitment event that they ran without the involvement
recognition that, if employees wanted to stand out and               of HR or senior managers and that had been a huge
work hard, their efforts would be recognised and there were          success. This gave shift workers the chance to talk about
opportunities for promotion:                                         what they liked about their jobs and promote this to the
                                                                     public. A company magazine had also been introduced to
‘I started 15 years ago driving a forklift. So I can see that it’s   communicate news and celebrate success in the organisation
a very encouraging business for people, developing people            – feeding into a more positive work climate.
and I’m a prime example. I’ve obviously got through various
roles within our business to get to a senior management              Much emphasis has been put on leadership development.
position.’ Senior manager                                            A programme has been initiated to identify and develop
                                                                     high-performing leaders across the business. All these
                                                                     changes contributed to the evolution of a new culture within
                                                                     PlasticCo and first results from the company’s management
                                                                     survey indicate an increase in levels of engagement across
                                                                     PlasticCo’s workforce.




                                                                                CREATING AN ENGAGED WORKFORCE                 33
EMPLOYEE vOICE, INvOLvEMENT AND                                  Fundamental to the concept of employee engagement is
     COMMUNICATION                                                    the idea that all employees can make a contribution to the
     In terms of the key levers that managers can activate to         successful functioning and continuous improvement of
     raise levels of engagement, our research indicates the           organisational processes. Clearly, employee involvement
     importance of providing meaningful work, as well as              mechanisms are central to this endeavour. Our study
     leadership. The third key driver that emerges in our study       considered the extent to which employees participate in
     is effective employee voice, in other words, opportunities       decisions that directly affect their job and attend meetings
     for employees to input into decisions affecting their work       where they can make suggestions related to their work. As
     and their organisations, and to be properly consulted and        our data reveal, about two-fifths feel that they are highly or
     communicated with over workplace issues that affect              very highly involved in decisions that affect their job; however,
     them. Our data suggest that employee involvement and             the majority of respondents only feel moderately involved. A
     management communication have a positive association             considerable number, one-fifth, indicate that they do not get
     with both the extent and frequency of engagement.                involved in work-related matters on a regular basis.

     In recent years, there has been a renewed interest in            We can further illustrate these data by three particular
     various forms of employee voice, and it is often argued that     case studies – PlasticCo, ConstructionCo and NorthTrust
     employee involvement and communication are linked with           – all of which have made efforts to improve the extent
     benefits such as lower absenteeism, fewer exits and higher       of communication and involvement but face different
     levels of commitment, efficiency and performance. Research       challenges in ensuring that these efforts are reflected in
     suggests that so-called high-involvement work practices can      heightened levels of engagement.
     develop the positive beliefs and attitudes associated with
     employee engagement and that these practices can generate        At PlasticCo shift workers have historically had little
     the kinds of discretionary behaviours that lead to enhanced      encouragement from managers to become involved in
     performance (Konrad 2006). Work by the Institute of              decision-making, and problem-solving has tended to be
     Employment Studies also points to a ‘sense of feeling valued     reactive rather than proactive. However, a management
     and involved’ as a major driver of engagement (Robinson          team traditionally perceived as having an autocratic and
     et al 2004). Similarly, while Purcell et al (2003) found a       hard-nosed leadership style is now committed to developing
     number of factors to be strongly associated with high levels     a more participative organisational culture. The results
     of employee engagement, the one thing all of these factors       suggest there are a significant number of employees who
     had in common was that they were connected with an               feel moderately involved, but there are also a good number
     employee’s involvement in a practice related to their work.      who are unsure, or feel that they are not particularly involved




     Figure 9: Involvement (%)

       70

       60

       50

       40

       30

       20

       10

        0

                   Very low                 Low                   Moderate                High                  Very high




34       CREATING AN ENGAGED WORKFORCE
in managerial processes. The factory work setting, shift            However, there were issues raised about communication
patterns and lack of training opportunities present severe          at NorthTrust. A number of matrons said that they feel
challenges. Given the initiatives that are being put in place, it   senior managers sometimes send out a negative message,
is likely that engagement levels will rise over coming months.      particularly around infection control and targets, while
                                                                    others think key operational issues are not effectively
ConstructionCo is a relatively young company with a strong          communicated:
entrepreneurial culture, and this context feeds into positive
employee experiences, creating a dynamic and intellectually         ‘My biggest beef with [NorthTrust] is the lack of downward
challenging work climate. There are several ways in which           flow of information. I hear from a lot of other managers
ConstructionCo is attempting to involve employees.                  around the Trust…[saying] we get a team briefing and we
These include: annual communication, ‘Good to Great’                get [NorthTrust] News, but the actual nitty-gritty of what
workshops, a regularly updated intranet, staff surveys, team        is going on doesn’t always filter down.’ Middle manager,
meetings and suggestion schemes. Some employees are                 NorthTrust
very positive about these, but others see the situation as
letting ‘a thousand flowers bloom’ with little clarity over         In summary, involvement initiatives have been met with a
which initiatives are most important or useful. Linked to           mixed response by employees. Across the organisation, there
this, an area that is acknowledged as needing attention is          is concern with the kind of messages that senior managers
the extent of collaborative idea-sharing. The company is            are sending to staff as these are sometimes perceived
forward-looking, but sometimes this means that teams and            as being negative. The trust is already in the process of
departments do not share knowledge and ideas about how              creating a new post of Director of Communications. Their
things are working and how they might be improved. As one           main role will be to redesign communication channels,
manager noted:                                                      encompassing top–down communications, news, electronic
                                                                    communication, idea-sharing, continuous improvement
‘There’s a real apathy for collaboration, for sharing, for          and emergency planning. This is a very positive initiative
knowledge transfer. It’s a shame because that’s what the            in response to employee feedback that is likely to yield
business is about.’ Senior manager, ConstructionCo                  significant benefits in terms of raising levels of engagement.

So there are various involvement initiatives in the                 It is also notable that at both of the unionised organisations
organisation for staff to interact with managers but, in            (PlasticCo and NorthTrust), employees generally feel that
some respects, these are not strategically coherent or widely       the union is successful in representing employee interests
understood.                                                         and this is also associated with higher levels of engagement.
                                                                    Clearly, the goal of improving and increasing employee
At NorthTrust, the HR department has developed a wide               engagement is not without its challenges, given wider macro-
range of practices and policies designed to widen the               environmental pressures facing many organisations. Success
involvement of employees, including a ‘lean programme’              may require organisations to avoid adopting a ‘piecemeal’,
set up to make improvements in outpatients, non-elective            ad hoc approach and instead focus on the development
admissions and emergency care. Interviewees report that             of a more strategic and holistic approach, which aims not
the major benefit of this programme is not necessarily              only to establish clear employee involvement mechanisms,
the economic or process efficiency gains but, instead, the          but also to build a culture that promotes active listening,
investment in people by giving them the opportunity to              involvement, consultation and participation. Moreover, our
think about their work more carefully and produce ideas for         research reaffirms the contention well established in the
improvement:                                                        literature that genuine employee engagement depends upon
                                                                    long-established principles, namely that employees feel the
‘Lean has given people a lot. There are a lot of positives that     organisational climate is based upon fairness and justice, that
have come out of Lean. I think people who have gone working         managers treat employees with respect and that effective
on Lean projects have loved it, and they’ve come back really        voice mechanisms exist for the expression of both individual
enthused.’ Clinical business manager, NorthTrust                    and collective concerns.




                                                                                CREATING AN ENGAGED WORKFORCE                   35
Looking at our sample overall, statistical tests revealed
     that the two most important drivers of engagement                  KEY FINDINGS
     are meaningfulness of work and employee voice.                     • Employee voice is a strong driver of engagement.
     Meaningfulness is measured by a set of items including,            • Just 34% of employees are the vocal-involved,
     for instance, ‘the work I do on this job is worthwhile’ and          who perceive their work as meaningful and have
     ‘the work I do on this job is very important to me.’ Voice is        opportunities to voice their views, yet this category of
     similarly measured by a series of items including, ‘I develop        workers is the most engaged.
     and make recommendations concerning issues that affect
     my workgroup’, and ‘I get involved in issues that affect
     the quality of work life here in my group’. Statistical tests     HR POLICIES AND PRACTICES
     showed that these two factors are the major drivers for all       There is good evidence in previous research that HR policies
     types of employees, for example in terms of age, gender and       and practices play a critical role in shaping the relationship
     job role.                                                         between employers and employees (Gould-Williams 2007).
                                                                       Our analysis reveals that only about a quarter of employees
     Plotting meaningfulness versus voice provides an insight into     are satisfied with the HR practices in their organisation. The
     the proportion of employees who have positive perceptions         majority of all respondents, 38%, are neither satisfied nor
     of these two important factors. We found that only one-           dissatisfied and a considerable number, 35%, indicate their
     third of our sample, 34%, fall into the category of the ‘vocal-   dissatisfaction with HR practices.
     involved’, those who find their work meaningful and feel
     they can express their views openly. The vocal-involved are       Respondents indicate several areas for improvement, such
     those who are in the setting most conducive to high levels        as performance appraisal systems, training and development
     of engagement. It is positive, however, to note the very small    opportunities and career management systems.
     numbers falling into the other categories, with the exception
     of the 51% of ‘fence-sitters’, who clearly have the potential     ‘We get PDP [professional development plan] once a year
     to be converted into the vocal-involved or lapse into the         and that’s meant to be a face-to-face but this year I got sent
     other categories.                                                 an email – this is your PDP.’ Manager, EnvironmentCo




     Figure 10: Meaningfulness vs voice (%)

        High



                           Vocal-uninvolved                                  Vocal-involved
                                  (1)                                             (34)
     Voice




                                                     Fence-sitters
                                                         (51)




                           Silent-uninvolved                                Silent-involved
                                   (4)                                            (10)


        Low

                Low                                                                                  High
                                                    Meaningfulness




36           CREATING AN ENGAGED WORKFORCE
Figure 11: Satisfaction with HR policies and practices (%)

  40

  35

  30

  25

  20

  15

  10

   5

   0

           Very dissatisfied        Dissatisfied             Moderate              Satisfied           Very satisfied




‘I haven’t had any formal sort of training as such, I’ve not      In contrast to what we expected, we do not find a
had any management training, I haven’t had any training at        direct association between HR policies and practices and
all, whatsoever, [...] so I’m just assuming that what I’m doing   employee engagement. Rather, our analysis reveals that
is right and hopefully it is.’ Engineering manager, PlasticCo     the relationship between HR practices and engagement
                                                                  is indirect. HR practices impact on two key factors: the
Previous studies have demonstrated that individuals’              behaviour of line managers and person–job fit, or the match
perceptions of HR practices positively impact upon employee       between individuals and their jobs. It is these two factors
outcomes, such as organisational commitment and job               that have the most important impact on engagement and
satisfaction (Conway and Monks 2009, Kinnie et al 2005).          not HR practices in and of themselves.
We therefore aimed to assess whether HR practices are also a
significant predictor of employee engagement by analysing the
relationship between both variables through statistical tests.     KEY FINDINGS
                                                                   • Most employees have negative views about their
                                                                     organisation’s HR policies and practices.
                                                                   • HR practices do not impact directly on engagement;
                                                                     the relationship is mediated by person–job fit and line
                                                                     management style.




                                                                             CREATING AN ENGAGED WORKFORCE                     37
CASE STUDY:

     EnvironmentCo

     EnvironmentCo is a leading recycling and waste                  choice. EnvironmentCo decided to join the Kingston Business
     management company in the UK and part of a global               School Employee Engagement Consortium to find out more
     environmental services company that consists of four            about the workforce’s levels of engagement and get detailed
     divisions, encompassing water, energy, waste management         information about which aspects to improve in order to raise
     and transport. The company employs almost 12,500 people         engagement levels within the company.
     and 2008 revenues were above £1.2 billion. In the UK,
     EnvironmentCo provides integrated waste management              The participants in the engagement survey were 2,217
     and environmental services to local authorities and industry,   employees working for EnvironmentCo. The research
     including refuse collection, recycling, hazardous and non-      consisted of two main stages. First, 757 employees
     hazardous waste treatment, disposal, energy recovery, street    with email access were invited to complete an online
     cleansing and landscaping and landfill contracts.               questionnaire survey. A further 1,460 employees without
                                                                     Internet access were given a paper version of the
     EnvironmentCo places a strong emphasis on operating             questionnaire. From this sample, 1,029 questionnaires were
     in a responsible and sustainable manner. The company            returned, providing a total response rate of 46%. Second,
     is committed to the preservation and protection of the          20 face-to-face interviews were conducted with a range of
     environment through the provision of professional waste         managerial staff.
     and recycling management services to communities
     and businesses. The access to top-quality research and          ENGAGEMENT LEvELS
     international innovation and expertise allows EnvironmentCo     The overall result of the study is very positive. Seventy-five
     to promote innovative recycling and recovery solutions          per cent of employees at EnvironmentCo are strongly or
     to its clients and champion innovative waste treatment          very strongly engaged. About 24% are moderately engaged
     technologies.                                                   and only 1% of respondents indicate that they are weakly
                                                                     engaged. Levels of engagement frequency are even higher,
     EnvironmentCo has set itself the objective of becoming an       with 78% indicating that they are engaged on a regular
     employer of choice within the UK. To achieve this objective,    basis, 19% even on a daily basis.
     EnvironmentCo has been reappraising a range of practices
     and policies within the company. EnvironmentCo also made        Employees at EnvironmentCo especially show very high levels
     a substantial effort to change its culture towards a more       of affective engagement, which reflects that respondents
     flexible and open working style. Engaging employees was         generally care about doing a good job.
     seen as a major step towards becoming an employer of



     Figure 12: Extent and frequency of employee engagement at EnvironmentCo (%)

       70

       60

       50

       40

       30

       20

       10

        0

                   Very weak/              Weak/                Moderate/              Strong/               Very strong/
                     Never            A few times a year       Once a month          Once a week                Daily

                                      Overall engagement extent                    Overall engagement frequency




38       CREATING AN ENGAGED WORKFORCE
‘Everybody is working hard because they care about the          EMPLOYEE vOICE
company, you know they all want to make sure that they          A second strong point at EnvironmentCo is the extent to
save the company money and it stays a successful company.’      which employees are given opportunities to get involved in
Manager                                                         discussions about work-related matters and communicate
                                                                their opinion about aspects of their job. Almost two-thirds
‘I’d say 90% of our workforce is conscientious; they want to    of the respondents in our study feel highly or even very
drive the business forward.’ Senior manager                     highly involved in work-related matters. The management
                                                                style at EnvironmentCo is described as open, democratic and
In the following sections we will explain which aspects         honest, where employees can talk to their managers about
contribute to the high levels of engagement at                  issues that affected their work.
EnvironmentCo – clarity of objectives, employee voice,
corporate social responsibility – and also give some advice     ‘The management style is one of creating a communicative
as to which areas could be improved to further raise levels     culture, ie communication downstream and upstream.’
of engagement among EnvironmentCo employees – HR                Director
practices and systems and processes within EnvironmentCo.
                                                                ‘Most managers sit there with their door open and it’s a
CLARITY OF ObJECTIvES                                           fairly open management style and most of them have come
Clarity of objectives has been shown in previous research to    up through the ranks as well, so most of them have come
be an important factor impacting upon levels of engagement.     from either a driving or from an admin type role anyway so
At EnvironmentCo, the vast majority of employees feel that      they know what everybody is doing.’ Manager
they know what is expected of them and are clear about the
tasks they had to perform to achieve their goals.               ‘I think it’s quite an open management style. I think it’s quite
                                                                direct but I would say reasonably diplomatic.’ Manager
‘Our people are competent, able to work within teams,
understanding [...] the company’s strategic objectives.’        To further encourage employees to get involved with their
Senior manager                                                  job, EnvironmentCo has implemented a suggestion scheme to
                                                                foster ideas across the organisation. Every quarter employees
‘It’s really key that employees understand what the business    are encouraged to put down their ideas on a specific topic,
objectives are, what the company objectives are and the         such as health and safety, customer service or efficiency.
reasons why. I think if they understand that and someone        At the end of each quarter, three ideas get picked out and
sits and explains that to them then they will absolutely work   the winners are given vouchers as rewards for their ideas.
for us without a shadow of a doubt.’ Senior manager             Managers in our study complimented employees for the
                                                                number of valuable ideas they put into the suggestion scheme.
An impressive number of interviewees talk about
EnvironmentCo’s strategic objectives in the next few years,     ‘We’re really getting a lot of suggestions. We had a recent
which reflects the fact that strategic goals and objectives     conference and we had over 100 suggestions in one day
had been communicated very well at management level.            from the assembled group, which is fantastic.’
Occasionally, employees indicate that they would prefer to      Senior manager
receive more information about EnvironmentCo’s future
direction.                                                      ‘One which was a really simple idea but great was that all
                                                                the drivers should have a name badge so that when they are
‘Improved information-sharing within the organisation           talking to their customer the customer sees their name, gets
[would make my working life easier], especially from senior     familiar with the driver, they are the point of contact at the
management to lower levels within the organisation. Too much    end of the day.’ Senior manager
information isn’t accessible, eg Strategy 2012.’ Employee

However, overall clarity of objectives is a major strength at
EnvironmentCo, which clearly contributes to the high levels
of engagement.



                                                                           CREATING AN ENGAGED WORKFORCE                      39
CORPORATE SOCIAL RESPONSIbILITY                                      HR PRACTICES
     A third important strength in EnvironmentCo is its                   One area for improvement at EnvironmentCo is the
     commitment to being a socially responsible member of                 development of more sophisticated HR policies and practices.
     society. EnvironmentCo’s aim to protect the environment              A considerable number of respondents (19%) in our study
     by investing in innovative and state-of-the-art techniques is        are dissatisfied with HR.
     highly appreciated by many employees. Fifty-one per cent
     of respondents believe that EnvironmentCo is a socially              At EnvironmentCo, employees specifically express their
     responsible member of society, compared with only 9% who             dissatisfaction with training and development opportunities,
     disagree with this statement.                                        and the career and performance appraisal systems.

     ‘I would say the values and what we aspire to do are                 ‘The training for HR, for managers, is horrendous. I’ve never
     laudable in the environmental space. I would say definitely          had any training on it. You just learn the processes and the
     yes.’ Manager                                                        policies, you just go on the intranet and have a look and we
                                                                          sort of make it up as you go along.’ Manager
     ‘I think everything that I hear from the highest level is that
     that is our intention and that we will make every effort to          ‘Everybody talks about training and likes to be trained and
     reduce our impact on the environment and it seems to be a            we’ve got a very good training department. [...] But I think
     consistent message.’ Manager                                         it’s underutilised and the reason for that is that the training
                                                                          culture from the top is weak.’ Manager
     Many respondents indicate that working for a socially
     responsible company is important to them and some                    ‘The career management is really about who knows who at
     respondents indicate that they cannot imagine themselves             the moment. There’s no real formal structure to the career
     working for a company that they would consider irresponsible.        management.’ Senior manager

     ‘We are in a world that is getting smaller, diminishing resources,   On the positive side, several respondents indicate that HR
     increasing population. At most we all have a social conscience       practices have been identified as a weakness within the
     and how we are affecting the environment, other people and           company by the HR department already and appreciate that
     so forth. So it is the most important thing. And if you have got     the HR department is currently working on new policies and
     children you are going to worry about that.’ Director                processes across several HR areas.

     ‘Yes, corporate social responsibility is important for               ‘We have a performance development plan process and
     me because I consider myself to be fairly socially and               that’s management levels. We’re in the middle of changing
     environmentally responsible anyway.’ Manager                         the process at the moment because we’re investing in
                                                                          an intranet-based system because we’ve found with the
     ‘I would be very uncomfortable working for a company that            manual-based in such a big organisation, it’s really hard for
     I thought was unethical or didn’t think was responsible.’            us to track the output.’ Manager
     Manager
                                                                          ‘The performance appraisal system is embryonic. It had an
                                                                          initiative a few years ago and went badly wrong, but the
                                                                          current HR director is relaunching it.’ Senior manager




40       CREATING AN ENGAGED WORKFORCE
SYSTEMS AND PROCESSES
Another challenge for EnvironmentCo is the systems and
processes in place across the company. Several interviewees
commented that the systems and processes within
EnvironmentCo are not developed to a level appropriate to a
business of EnvironmentCo’s size. This is a major frustration,
especially for managers, which impacts upon levels of
engagement.

‘Reporting mechanisms have been very poor, very, very poor
because we work on different systems.’ Manager

‘Because we’ve got all sorts of systems out there, the
company runs on about 25 different systems, each different
division has got a different system.’ Manager

‘You’ve just got a system that’s very laborious, the system
that we’ve inherited to use is not as efficient as other
systems might be so we’ve had to adapt that but resource is
really tight.’ Senior manager

Interviewees especially feel that the intranet needs much
more development, as communication and collaboration
opportunities are missed. Collaboration and talking to peers
about ways to improve a job is part of our conceptualisation
of social engagement and interviewees indicated that one
means of increasing levels of social engagement would be
providing a more sophisticated intranet.

‘The current intranet is terrible, just a place where people
put documents and we want to turn it around, we want to
make it a tool for online collaboration, so that people can
have electronic forums...blogs, we want the CEO to do a
blog every week.’ Director

‘One of the big communication opportunities we’re missing
is the intranet. Our intranet is just poor, it’s static.’ Manager




                                                                    CREATING AN ENGAGED WORKFORCE   41
7 Outcomes of engagement

      Employee engagement has been associated with a range of                include job skills (that is, the extent to which employees have
      positive outcomes at the individual and organisational levels,         the knowledge and ability to carry out their job); social skills
      for example, engaged employees are more likely to perform              (for example leadership and interpersonal skills); willingness
      better and are less likely to seek a new job elsewhere. In this        to take on extra work; and the rating they received in their
      section, we consider how all the factors in our model impact           most recent performance appraisal.
      on a range of outcomes at both levels, including individual
      performance, intention to leave and individual well-being.             We first asked people whether they feel that they have the
                                                                             right skills to carry out their work effectively. Fifty per cent
      FOR ORGANISATIONS                                                      feel their job skills are very good and an encouraging 22%
      We consider three important outcomes of engagement:                    feel they are excellent. For social skills, the scores are just
      performance, innovative work behaviour – or the extent to              slightly lower, with 41% feeling they are very good and
      which people innovate in their jobs – and intent to quit.              22% excellent. On both scales, very few employees rate
                                                                             themselves as having a poor or fair skill level.
      INDIvIDUAL PERFORMANCE
      The process of engagement that we have seen so far involves            We also asked employees whether they are willing to take
      a positive cycle of perceptions of work, satisfaction with             on extra work and go beyond the call of duty. Fifty-nine
      work, involvement in and engagement with work. These                   per cent indicate that they were willing to take on extra work
      behaviours and the psychological processes that underpin               on a regular basis. We then asked people to let us know the
      them lead to enhanced performance. Engaged employees                   rating they received in their last performance appraisal.
      perform better than their less engaged counterparts because            Forty-three per cent of all employees received a good
      they are more involved with their work, they think more                performance appraisal, 36% were rated very good and
      about their work, which helps them to develop better                   another 9% excellent. In contrast, 12% received a poor or
      solutions, and they are socially connected with their work.            fair rating in their last performance appraisal.
      There is also considerable empirical evidence for a positive
      association between engagement and performance, and our                These performance data are positive across the whole
      study fits well with prior evidence.                                   sample; however, we can find some statistically significant
                                                                             differences across employee groups.
      Although individual performance would ideally be measured
      by asking someone else, such as a line manager, about an               Although these data are not objective measures of
      individual’s performance, this is not possible in a survey             performance, they provide a barometer of employees’
      of this nature, so we asked employees to self-rate their               understanding of their own performance in relation to that
      perceptions of a range of performance measures. These                  of their peers.



      Figure 13: Levels of self-rated job skills and social skills (%)




  Social skills            6              32                                       41                                20




       Job skills      2            25                                       50                                     22




                      0        10        20      30        40           50          60         70         80         90          100


                    Poor                  Fair                  Good                          Very good                   Excellent




 42        CREATING AN ENGAGED WORKFORCE
Figure 14: Rating of the last performance appraisal (%)             Figure 15: Innovative work behaviour (%)

  50                                                                   50


  40                                                                   40


  30                                                                   30


  20                                                                   20


  10                                                                   10


   0                                                                    0



          Poor         Fair           Good                              Never          A few times a year   Once a month

          Very good           Excellent                                  Once a week         Daily



INNOvATIvE WORK bEHAvIOUR                                         INTENTION TO STAY
For a subset of our organisations, we analysed whether            A third important outcome of engagement is the intent to
higher levels of engagement lead to innovative work               remain with the organisation. Intent to stay is important
behaviour. Across the three organisations included in our         for organisations since it ensures that human capital is
subsample, a quarter of respondents say that they never           maintained, morale is good and recruitment costs are
engage in innovative work behaviour, such as creating new         reduced. Conversely, people’s intention to leave is a close
ideas for difficult issues or generating original solutions       proxy for actual leaving behaviour and gives a good
for problems. The vast majority of our respondents, 38%,          indication of how employees generally feel about their work
indicate that they develop innovative ideas a few times a year,   and their working environment.
whereas only 15% show innovative work behaviour on a
weekly or daily basis.                                            ‘I have been in the company for almost 20 years. I never
                                                                  thought about working for another company. I love working
Although respondents certainly rate their innovative              with EnvironmentCo. EnvironmentCo has been very good
work behaviour much lower compared with their in-role             to me. I try to repay the trust they put in me. Whenever I
performance, we ran statistical tests to determine whether        have been approached by any other company I’m just not
engaged employees are more likely to engage in innovative         interested. I am happy with EnvironmentCo, I’m delighted
work behaviour than their less engaged counterparts. Our          with what I am doing, and I work with fantastic colleagues.
data show a strong association between engagement and             My boss is great with me; my CEO is great so I am absolutely
innovative work behaviour. Engaged employees are more             delighted.’ Senior manager, EnvironmentCo
likely to search out new methods, techniques or instruments,
make important company members enthusiastic for                   Similar to the senior manager of EnvironmentCo, many of
innovative ideas, and transform innovative ideas into useful      our interviewees express a high level of satisfaction and
applications. However, more research is needed in the future      loyalty to their companies. In our study, more than a third,
to explore these relationships in more depth and analyse          36%, say they would like to stay with their respective
the different behaviours of engaged versus non-engaged            organisation for at least five years, compared with 17% who
employees when it comes to being innovative and creating          want to leave their organisation within the next two years.
new ideas.                                                        The majority of employees, 40%, do not indicate how long
                                                                  they want to continue working for their current employer.




                                                                             CREATING AN ENGAGED WORKFORCE                 43
Figure 16: Intention to stay (%)

                                                                       9
                                                                                 8
                                            40                                         7




                                                                         36




                Less than one year      One or two years       Three or four years     Five or more years        Unsure


     The data from our study show that engaged employees                organisations in our sample use recognition schemes to give
     are significantly more likely to want to stay with their           employees public acknowledgement of their achievements.
     organisation compared with those who are less engaged.             Another opportunity for increasing engagement and
     These data, combined with our other data on engagement,            productivity is the use of suggestion schemes. One of the
     suggest that it is not the case that people who are not            organisations in this consortium has recently started an
     engaged and quit would be no loss to the organisation.             initiative that involves team discussions of suggestions
     Rather, most people have the potential to be engaged, but          whereby the most popular suggestion is acted upon and
     the working environment must be right for engagement to            changes are made within two months, and then another
     be initiated and sustained.                                        suggestion will be selected and put into practice. Another
                                                                        way that retention can be enhanced is through the design
     For those intending to leave their company, the main reasons       of work. Line and senior managers have a responsibility
     given are listed in Table 3.                                       to ensure that jobs are suitable, support is available and
                                                                        employees are enabled to craft meaningful roles, as
     These data show that there are two main reasons for                discussed earlier in this report.
     wanting a new job. The first is to achieve higher pay in a
     similar job elsewhere. The second is to find a more satisfying
     job in a different organisation. Pay is, of course, a perennial
                                                                           KEY FINDINGS
     issue and one that goes beyond the scope of this report.              • Engaged employees perform better and are more likely
     However, while pay rises are not typically feasible, other              to want to stay with their employer.
     forms of reward are possible and these alternatives can be            • Engaged employees are more innovative than others.
     successful in raising engagement. For example, some of the


     Table 3: Main reasons for wanting to leave organisation

     Reason                                                                                                 %

     Better pay/benefits elsewhere                                                                          21

     Job satisfaction                                                                                       17

     Opportunities for promotion                                                                            16

     To find a different job within the organisation                                                        13

     To find another similar job in a different organisation                                                13

     To do a different type of work                                                                         13


44       CREATING AN ENGAGED WORKFORCE
CASE STUDY:

NorthTrust

NorthTrust is an NHS foundation trust based in the north          involvement policy. The HR department in the trust has
of England. It is a large public organisation providing acute     developed a wide range of practices and policies to support
healthcare to a population of over 300,000 people. The            the diverse needs of the workforce. These are described by the
immediate catchment covers some 33 square miles, which is         HR team as initiatives that ‘value staff’. In addition to policy
largely an urban area. It has foundation trust status, which      documents relating to partnership and involvement, they
means it has increased independence from government               include schemes such as ‘Employee of the Month’, ‘Team of
regulation and can reinvest any surpluses back into               the Year’, long service awards, staff suggestion scheme/zone,
improving service delivery. Annual income is in the region of     health walks, cycle scheme, pamper days, flexible working,
£225 million.                                                     nursery and childcare vouchers, and gym discounts.

The trust is also a teaching hospital and a tertiary centre       The engagement research was conducted in two stages.
providing specialist services to a wider population of around     First, a stratified sample of 2,000 employees was invited
1.5 million people. The population served by the trust            to complete an online questionnaire. A further 100
includes some of the most socially deprived communities in        without Internet access were sent a paper version of the
the UK, with high rates of heart disease and cancer creating      questionnaire. From this sample, 381 online questionnaires
considerable demand for hospital-based care. The trust is         and 39 paper copies were returned, providing a total
one of the largest employers in the area with 4,500 staff. It     response rate of 20%. The second part of the research
has been accredited with Investor in People recognition for       was conducting 20 face-to-face interviews with a range of
all workplace policies and practices.                             clinical and managerial staff – including clinical business
                                                                  managers, general support, matrons and consultants. Further
The hospital has a bed complement of 860 inpatient and            insights were gained through site visits and secondary
105 day case beds. In 2007, the trust handled over 76,500         documentation.
episodes of inpatient and day cases, over 280,000 outpatient
attendances and nearly 87,000 emergency visits. The trust’s       Three occupational groups made up the bulk of survey
services are organised into 15 clinical business units, grouped   respondents – administrative and clerical, registered allied
by three main divisions: medicine and emergency, surgery          health professionals and registered nurses. There are a
and support services.                                             wide range of administrative jobs in the NHS, including
                                                                  medical records staff, call handlers, clerks, patient liaison
The vision of the trust is ‘to provide high-quality, patient-     administrators and receptionists. They serve important roles
centred healthcare and proactively enhance the Trust’s local,     in organising appointments and maintaining patient records.
national and international reputation’. The central aim of        Allied health professionals include people working within
the HR strategy is for the trust to be an employer of choice      a variety of health treatment areas such as physiotherapy,
for the area. Recent trends have included an increased            dietetics, orthopaedics and radiography. Practitioners within
workload of around 9% during 2007–08, perhaps reflecting          these roles are registered with a professional body that
an increase in patients choosing to be treated at the hospital    regulates professional conduct and development. Registered
under new NHS arrangements. The organisation has recently         nurses are responsible for various roles around patient care.
invested £2 million in ward-based nursing and made a              They may specialise in a specific medical area or serve a more
financial surplus of £1.1 million in 2007–08 to be reinvested     general role.
in the following financial year. The trust has also recently
begun an ambitious £7.5 million reconfiguration of radiology      ENGAGEMENT LEvELS
facilities. In terms of service performance, the trust has        The overall results of the survey are positive, with 85%
delivered the 18-week waiting list targets and cancer targets     being ‘highly’ or ‘very highly’ engaged. Thirteen per cent
set by the Department of Health.                                  are moderate and only 1% have a low level of engagement.
                                                                  Levels of engagement frequency are similarly positive.
NorthTrust joined the Kingston Business School Employee           Eighty-three per cent of respondents indicate that they are
Engagement Consortium as an opportunity to learn from             engaged on a daily or weekly basis, and only about 2%
other organisations and feed the results into other HR            engage less than once every month. We will consider three
initiatives, such as the annual staff survey and employee         areas that are contributing to high levels of engagement in




                                                                              CREATING AN ENGAGED WORKFORCE                    45
NorthTrust – involvement initiatives, satisfied workforce and       Despite the warm reviews by most staff, a few point to the
     clarity of objectives – and three areas that are less successful    danger of this kind of initiative. There is the possibility that
     in this context – recruitment and retention in some roles,          changes to work processes can be made too hastily without
     leadership style and communication.                                 proper consideration for the implication of making the
                                                                         changes. The process-mapping exercise and planning stage
     INvOLvEMENT INITIATIvES                                             do not always pick up important scenarios that occur in the
     Certain involvement initiatives the trust initiated or joined are   day-to-day operation of work:
     positively received by employee groups. The main example
     given here is the ‘Lean programme’, which was set up to             ‘[Changes to work processes] are very frustrating and
     make improvements in outpatients, non-elective admissions           sometimes confusing because things can change from
     and emergency care. One matron summed up this initiative:           week to week. One week, it’s a good idea, but usually what
                                                                         happens is someone comes up and says “that’s a great idea”
     ‘One sign of successful involvement in the trust is the “Lean       so we introduce it, we haven’t got time to get it tested and
     programme”. This is an initiative organised by an external          when it’s introduced, of course, there’s a fundamental flaw
     consultant that seeks to remove redundant work processes            and somebody picks that up and so you have to change it
     and increase the “flow” in organisational systems. Many             again or you scrap it.’ Matron
     respondents reported how this was a rewarding experience.
     We have facilitators...and then we invite a selection of            The engagement survey results show that there are pockets
     people – clinicians, junior doctors, senior nurses, junior          of employees, such as those participating in Lean, who
     nurses, porters – a cross-section...they would map out the          feel very involved in organisational decision-making and
     current processes step by step...so by the end of that week         improvement. However, there are also other areas where
     we will have a plan of improvement to implement. I think it’s       people are less positive. The senior HR team is disappointed
     been beneficial.’ Matron                                            with this finding because they feel they have put a lot of
                                                                         work into organisational involvement through outputs such
     Other interviewees reported that the major benefit of this          as the staff involvement policy, staff involvement group and
     programme is not necessarily the economic or process                partnership forum. They plan to respond to this finding by
     efficiency gains but, instead, the investment in people by          making efforts to ensure involvement initiatives are spread
     giving them the opportunity to think about their work more          more widely throughout the trust.
     carefully and produce ideas for improvement.




     Figure 17: Extent and frequency of employee engagement at NorthTrust (%)

       80

       70

       60

       50

       40

       30

       20

       10

        0

                   Very weak/               Weak/                 Moderate/                Strong/                Very strong/
                     Never             A few times a year        Once a month            Once a week                 Daily

                                        Overall engagement extent                      Overall engagement frequency




46       CREATING AN ENGAGED WORKFORCE
SATISFIED WORKFORCE                                                  ‘Targets are a good idea – aspiration, you work towards it
A consistently positive finding across NorthTrust is that            and achieve an end. But some of the targets aren’t realistic.
employees are satisfied working for the NHS. Employees are           ...If you can’t actually achieve them with the resources
slightly more satisfied with aspects supporting their job, such      you’ve got all you’re doing is putting pressure on people for
as pay and benefits, rather than core work tasks, but both           no reason.’ Consultant
are positive. Employees are also very positive and satisfied
with NorthTrust as a hospital and place of health care. Many         RECRUITMENT AND RETENTION
said they would be happy to let their close family and friends       Recruitment and retention of staff is an issue in some areas
be treated in the trust’s services.                                  of the trust. Generally, across the organisation there is a
                                                                     feeling that employee skills match their roles well. However,
‘Health service jobs are good – everyone thinks we’re poor           there are a few areas characterised by high employee
nurses but no, we’re not poor, nurses are paid very well             turnover and low attendance. More specifically, there are
and managers are paid very well too. We can afford a good            some administrative roles within the trust that appear to
standard of living I think. All in all it’s a satisfying career in   have a challenging work situation due to low pay, lack of
the health service.’ Clinical business manager                       training, demanding work and little social support. The
                                                                     recruitment process in the NHS is seen as bureaucratic by
Employees also score very highly on the extent to which they         managers wanting to fill roles quickly. Yet this is difficult to
care about their jobs. Even groups that are less engaged in          overcome in the health sector due to prudent regulations
other aspects are engaged on an emotional level. This ‘public        and legal checks such as the Criminal Records Bureau (CRB)
sector ethos’ is often found in public sector organisations.         and Right to Work:

‘It’s a satisfying career because the one thing is that you’re       ‘The recruitment process takes a very long time because of
doing something for the public, aren’t you? You’re doing             the standard procedures and things like CRB checks, which
something that makes a difference and that’s probably why I          add a further bureaucratic burden.’ Middle manager
like my job.’ Clinical business manager
                                                                     Linked to the problem of retaining people in some roles,
CLARITY OF ObJECTIvES                                                another challenge in NorthTrust is developing teamwork in
An important component of employee engagement is clarity             some areas. This is identified as a particular problem for larger
in what individuals and teams are trying to achieve at work.         departments, where team relationships are less personal.
This is particularly important for the intellectual aspects of
engagement. In NorthTrust employees are confident that               ‘Some roles don’t get an opportunity for social engagement
they know what they are trying to achieve and how this               because they are working independently away from
contributes to organisational performance. Sixty-seven               colleagues and managers. They are then not given
per cent of respondents feel that they know what they have           opportunities to interact at meetings either.’
to do to complete their work tasks and how this contributes          General manager
to performance. NHS trusts have strict performance targets
set by central government’s Department of Health. These              It was also an issue in other areas; for example, some
relate to issues such as waiting times and infection control.        receptionists are required to be fixed to a particular desk
Meeting targets is one of highest priorities for NHS staff –         with no other employees in the same work area. This can be
from senior executives to consultants to nurses. Discussion of       a very isolating experience.
targets featured heavily during the engagement research:
                                                                     LEADERSHIP STYLE
‘The problem is of course that you can’t go back, and no             There is a huge amount of change going on in the NHS and
one would want to go back [to pre-target days]. To be fair           this is impacting NorthTrust in important ways. For example,
to the Government they’ll say “well surely you don’t want to         there are implications for leadership style within the
go back to the days when people in accident and emergency            organisation due to frequent changes in the management
spent, you know, in extreme cases 24 hours waiting to be             structure:
seen”, and we clearly don’t want that.’ Matron




                                                                                 CREATING AN ENGAGED WORKFORCE                      47
‘Yeah I mean the management have actually changed a lot           COMMUNICATION
     over the last year and we’ve got a new general manager...         Style of communication is also perceived to be very
     and his style will determine a lot of our workload and the        important for senior managers. The allied health
     priorities that we’ve got.’ Clinical business manager             professionals (for example physiotherapists, occupational
                                                                       therapists, radiographers) are traditionally seen to be very
     The style of management will affect how important priorities      good at communicating with their staff as part of their
     such as meeting targets are approached and controlled.            professional culture.
     With the NHS focus on targets and high-profile issues of
     ward infection control, some managers pointed out that            However, more generally across the organisation, there is
     poor performance had to be dealt with strongly, as there          concern with the kind of message that senior managers are
     were severe health consequences for patients. Disciplinary        sending to staff. For example, if the end-of-year message
     action would undoubtedly affect the perception of support         to staff from the chief executive is perceived to have an
     in the work environment, but this was an unavoidable              overriding negativity this does not go down very well with
     consequence of the priorities of the hospital.                    nursing staff because they feel they have worked very
                                                                       hard all year. Other senior managers are noted for being
     ‘Sometimes people are wrong and, if you’re wrong, you’re          autocratic and distrusting of middle manager capabilities and
     wrong, so you can’t say that’s a blame culture. That’s like,      this again impacts on the way they communicate to staff.
     you know, you didn’t deliver what you should have delivered
     so therefore your role isn’t suitable for you, so that’s          To overcome these issues, the trust has created a new
     acceptable.’ Clinical business manager                            post for Director of Communications. Their main role
                                                                       will be to redesign communication channels in the trust,
     The trust has to take action in relation to complaints, serious   encompassing top–down communications, news, electronic
     untoward incidents and infection control issues.                  communication, idea-sharing, continuous improvement and
                                                                       emergency planning.




48       CREATING AN ENGAGED WORKFORCE
FOR INDIvIDUALS                                                       ‘There seem to be people suffering with stress and I think
The recent interest in positive organisational behaviour has          that maybe we’re pushing people so hard that sometimes
included an emphasis on positive outcomes for individuals             we don’t recognise it.’ Manager, EnvironmentCo
(Bakker and Schaufeli 2008). In the following two sections,
we will therefore consider how engagement might lead to               ‘There was one bloke when I first joined and he was
positive results at an individual level, such as higher well-         staying until like 11:00 at night and he was here at 9:00 in
being and sustainability.                                             the morning. So I think there is actually quite a lot within
                                                                      the rest of the company as well, there’s quite a culture of
WELL-bEING                                                            working long hours.’ Manager, ConstructionCo
There is good evidence that high levels of engagement are
negatively related to burnout and positively associated with          Looking at our dataset as a whole, we compared levels of
well-being (Bakker et al 2008, Schaufeli and Bakker 2004). Our        individual well-being with performance to find out how
data confirms these findings by demonstrating that engaged            many employees experience both high levels of well-being
employees show higher levels of well-being. This means that           and perform highly. It was gratifying to discover that only
engaged individuals are more likely to enjoy their work activities,   a tiny number, 1%, fall into the category of ‘unfit non-
are able to cope with work-related problems and are less              performers’. However, one-third, 32%, can be described as
likely to lose sleep over work-related issues. Three-fifths of our    ‘fit performers’, while the majority, 59%, are ‘fence-sitters’.
respondents indicate that they have high levels of well-being
and a further 7% said that their level of well-being is very high,    SUSTAINAbILITY
compared with only 4% who express low levels of well-being.           Highly engaged employees are more likely to feel that their
                                                                      workload is manageable and that they can cope with their
These are very positive findings that confirm that engagement         current workload. Sensing that work is sustainable in the
has positive outcomes for individuals themselves. However,            longer term is important from an individual’s perspective,
especially in our more recent case studies, managers express          as unsustainable work is detrimental to the health and
warnings that levels of well-being might decrease with the            safety of the workforce. In our study, almost three-fifths of
mounting pressures due to the current economic climate.               respondents consider their work highly sustainable; however,
                                                                      about a third are unsure about whether they could continue
‘I do think we possibly have a bit of an issue with work              to work at their current pace in the future and almost 10%
pressures and a long hours culture but I think there’s a little       clearly indicate that their workload is not sustainable.
bit of pressure for people to work hard, work smart and
work fast and I think it does sometimes get a bit challenging         Although our study revealed that engagement generally
for people and I think everybody can understand the reasons           leads to higher sustainability, our qualitative and quantitative
for it.’ Manager, ServiceCo                                           data also demonstrate that this relationship does not




Figure 18: Levels of well-being (%)

  70

  60

  50

  40

  30

  20

  10

   0

                Very low                   Low                   Moderate                 High                  Very high



                                                                                  CREATING AN ENGAGED WORKFORCE                      49
Figure 19: Individual performance vs well-being (%)

       High


                            Fit non-performers (6)                                    Fit performers (32)
 Well-being




                                                            Fence-sitters (59)




                           Unfit non-performers (1)                                  Unfit performers (2)



        Low
                   Low                                                                                             High
                                                              Performers

     hold for very high levels of engagement. Employees at                           Similar to this quote from a manager in ServiceCo, other
     the extreme ends of engagement show lower levels of                             interviewees told us about incidents from their working
     sustainability. Constantly thinking about work, taking                          experience where people have become too engaged. This has
     extra work home on a regular basis and not switching off                        had serious effects on their health, but also impacted on their
     from work at any time during the day has a serious impact                       personal life and their ability to concentrate and focus, which
     on individuals and might lead to ill-health and burnout                         in turn affected their productivity. Managers have a critical
     symptoms, as these individuals are more likely to become                        role to play in ensuring that the engagement levels of their
     ‘workaholics’ with the associated risks.                                        team members are sustainable. Additionally, it is important to
                                                                                     prevent organisational cultures from developing that reward
     ‘I had a guy who used to be full-on and he had a heart attack,                  working long hours and encourage 24/7 availability.
     one of my sales managers, lovely guy, quite young, 31. When
     he was in hospital, he starts emailing, “I spent the weekend in
                                                                                       KEY FINDINGS
     hospital, they’ve done all these tests on me, I’m just on down
     for an ECG, but I thought I’d just copy an email to you, I hope                   • Engaged employees enjoy greater levels of personal
                                                                                         well-being.
     you’re alright”...I was virtually the same. When I was in hospital
     last year, they didn’t have an Internet connection, so I asked my                 • Engaged employees perceive their workload to be
     wife to bring my laptop. She would bring it to the hospital, I                      more sustainable than others.
     sent her back home so she could upload and send the emails,                       • One-third of employees are ‘fit-performers’, enjoying
     collect the new ones and bring it back.’ Manager, ServiceCo                         high levels of personal well-being and performing well.


     Figure 20: Sustainability (%)

              70

              60

              50

              40

              30

              20

              10

              0

                         Very low                     Low                        Moderate                   High               Very high



50             CREATING AN ENGAGED WORKFORCE
CASE STUDY:

ConstructionCo

ConstructionCo is an international consultancy and              has in place a progressive set of HR practices and a team
construction firm. Founded in 1990, the organisation            with responsibility for facilitating employee engagement.
has experienced rapid growth to a turnover in excess of         Participation in the Kingston Business School Employee
£500 million in 2007. The firm has been responsible for         Engagement Consortium was therefore to feed into
several high-profile construction projects in the UK, Asia      existing initiatives rather than to kick-start a redirection.
and the Middle East. The company employs close to 2,900         Further sources of information include an annual staff
people and operates in 28 countries around the world.           survey, Investors in People feedback and Sunday Times Best
                                                                Companies feedback. The employee engagement survey
The company offers services that span the entire property       was distributed to employees working in the UK. An online
lifecycle, including planning and building, maintenance         questionnaire was distributed to 346 employees and was
and facilities management, waste management and ICT             returned by 180, providing a response of 52%. Twenty
consultancy. Senior management have set ambitious growth        interviews were also conducted with a range of managerial
targets to have a £1 billion turnover by 2012. Around 63%       staff.
of current turnover comes from consultancy and 37% from
construction. The workforce is currently 70% male and has a     ENGAGEMENT LEvELS
relatively young age composition.                               The results from the survey are very positive, with 77% of
                                                                employees being ‘highly’ engaged and 12% ‘very highly’
The company is particularly proud of its relationships with     engaged. Less than 1% fall into low engagement categories.
clients and suppliers; over 70% of contracts come from          Levels of engagement frequency are even higher. Almost
returning clients. The company has also established a good      90% of all respondents are engaged on at least a weekly
reputation for employee experience. It has been listed in the   basis and only 2% are engaged only once a year. The
‘Sunday Times Best Companies to Work For’, been named in        general results clearly suggest that ConstructionCo is a very
the top 50 in Building magazine’s ‘Good Employers Guide’        engaging company to work for.
and holds Investor in People recognition across the UK
business.                                                       What do these results mean for engagement initiatives
                                                                within the organisation? During one research meeting the
ConstructionCo has a simple vision: ‘to be the best at what     employee engagement manager reflected, ‘Maybe this
we do’. Feeding into the vision are a number of core values,    means I am out of a job! There is nothing for me to do.’
which include – respecting people, listening to views of        We will consider whether this is the case by looking at three
all staff, delivering with trust, honesty and integrity, and    things the organisation is currently doing well – creating an
promoting positive collaboration. The company already           entrepreneurial culture, fair and consistent management

Figure 21: Extent and frequency of employee engagement at ConstructionCo (%)

  80

  70

  60

  50

  40

  30

  20

  10

   0

             Very weak/              Weak/                Moderate/               Strong/               Very strong/
               Never            A few times a year       Once a month           Once a week                Daily

                                 Overall engagement extent                    Overall engagement frequency




                                                                            CREATING AN ENGAGED WORKFORCE                   51
practices and high levels of organisational advocacy – and       that can form the bedrock on which to build more
     three areas where the organisation is not doing so well –        entrepreneurial, client-focused activities.
     sharing ideas for improvement, work–life balance and staff
     perceptions of senior managers.                                  ‘I think the sort of fundamentals upon which we should rely
                                                                      with engaging people are basic things like – are people very
     ENTREPRENEURIAL CULTURE                                          clear about what their job is, what’s expected of them, how
     ConstructionCo is a relatively young company and is              they are to be measured, trusting their line manager, all of
     growing rapidly. The organisation has an entrepreneurial         those issues, I think, whilst they might be fairly boring, and
     culture based on a record of successful performance. This        we have been talking about them for years, actually they are
     context feeds into positive employee experiences and at          the true drivers of engagement.’ Senior HR manager
     the workplace level this creates a dynamic and intellectually
     challenging work climate.                                        Despite the core focus on traditional management concerns,
                                                                      ConstructionCo does have a set of what might be called
     ‘[ConstructionCo] has a very entrepreneurial feel about it so    ‘progressive’ HR practices. These include the employee
     there is always that intellectual challenge.’ Middle manager     referral scheme mentioned earlier, a graduate training
                                                                      programme and a mentoring process. However, in each of
     The organisational culture also creates a buzz of excitement     these initiatives fairness and equity in their implementation
     and opportunity for staff. With recent growth, many new          are stressed throughout. This in turn flows into the kind of
     starters have been employed through staff recommendations        trusting relationship with clients that is so important in the
     from their network of personal contacts. This means that         consultancy sector.
     staff can make a real contribution to the growth of the
     organisation and shape the type of workforce they are            ‘You save money, you save grief, you save people’s emotion,
     growing into. Survey results suggest that employee–job fit       you save risk, you save all of these things if you treat your
     and staff quality are high as a result. The entrepreneurial      employees fairly.’ Senior HR manager
     culture is based on the drive and ambition of staff and the
     willingness to succeed. This is supported by letting people      There is one main caveat with the management approach
     take responsibility and ownership of their own performance,      at ConstructionCo. The relative informality of management
     development and career. At the same time, it should              processes, coupled with a flat management structure, has
     be recognised that not all employees will, or should, be         the potential to create some uncertainty of job role and
     highly driven as this can create an overly individualistic and   responsibility.
     competitive culture. Instead, there needs to be a balance of
     drive and enterprise on one hand, and stability and cohesion     ‘We don’t have formulated, formal, typed job descriptions…
     on the other.                                                    [and these] sort of issues actually cause us, now we are a
                                                                      large company, quite a headache in terms of making sure
     ‘We have this thing about managing your own career, so the       that we know what people are doing and that they’re
     way you manage your own career is that you actually have         working in accordance and being measured accordingly.’
     to communicate with your line manager what it is you want        Senior HR manager
     to do.’ Senior manager
                                                                      Over the coming year, ConstructionCo will need to
     In general, the entrepreneurial culture in the company is a      pay careful attention to job design and the creation of
     great strength and asset towards engaging staff.                 management responsibilities that are unambiguous and,
                                                                      more fundamentally, still carry the underlying tenets of
     FAIR AND CONSISTENT MANAGEMENT                                   fairness and consistency.
     The words ‘fairness’ and ‘consistency’ feature repeatedly in
     the HR strategy for ConstructionCo. The HR team does not         ORGANISATIONAL ADvOCACY
     have a secret formula or elaborate programme of initiatives      Following the positive commentary above, it is not surprising
     for managing people. Instead, they feel it is important          that organisational advocacy is high at ConstructionCo.
     to focus on the traditional core aspects of management           This feeds from the consistent approach to people




52       CREATING AN ENGAGED WORKFORCE
management and the flexibility and opportunity inherent          ‘Some departments have a great team spirit but in others it’s
in the entrepreneurial culture. Questionnaire responses          like, if someone wants to organise a ten pin bowling night,
suggested that employees are very proud to work for the          you know something local, down the pub, a quiz night, all
firm. Employees have an emotional connection to their work       the ideas have been floated but people don’t seem willing to
and find their tasks intellectually stimulating.                 do it and it’s a great shame because it really does bond the
                                                                 team, creates friendships, new relationships, if people are
‘I think the majority of people passionately care about what     willing to do it but they just don’t seem willing.’
they do in our business. They wouldn’t go the extra mile         Senior manager
quite as often as they do if they didn’t passionately care
about what they do…that’s what I would call emotional            To overcome this issue, the HR department was leading by
attachment.’ Senior manager                                      example by starting a reorganisation of the HR function to
                                                                 explore how idea-sharing could be improved.
‘You’ve got to remember what a great company it is, what
great people there are within the organisation, what it has      WORK–LIFE bALANCE
achieved, it’s been excellent.’ Middle manager                   Employee work–life balance is a challenging HR
                                                                 consideration at ConstructionCo. In the engagement
The high-profile nature of some of the company’s projects        survey this was generally perceived to be good, but many
reinforces the pride and willingness of employees to             employees had a more moderate view. Many staff feel
broadcast the benefits of their company. Everyone wants to       compelled to work long hours due to the sheer amount of
work for a successful and reputable organisation; it is clear    work going on. The highly interactive nature of relationships
that ConstructionCo employees feel their company is both of      with clients is a source of increased pressure. Furthermore,
these things and they are proud to call it their own.            with such ambitious growth targets for the company, this
                                                                 problem is likely to increase in the future.
SHARING IDEAS
One surprising area that needs attention in ConstructionCo       ‘What came out of last year’s staff survey was that people
is the extent of collaborative idea-sharing. The company is      wanted more work–life balance and that they perceived that
forward-looking but sometimes this means that teams and          there was a long-hours culture.’ HR manager
departments do not share knowledge and ideas about how
things are working and how they might be improved. As one        The HR team is aware of this problem and is trying to tackle
manager noted:                                                   it through the staff appraisal process. Managers are being
                                                                 encouraged to consult with their staff about what would
‘We probably don’t talk about improvements enough, is            make their work–life balance better. However, this is likely
the honest answer. Part of our culture is about inwardly         to be one of the downsides of a fast-moving organisation
challenging but inevitably sometimes it’s easier to do the job   during business growth.
the way you did it last time.’ Senior manager
                                                                 Following the engagement survey, the HR team at
There are various involvement initiatives in the organisation    ConstructionCo decided to address the low work–life
for staff to interact with managers but they are not             balance amongst the workforce. Two days’ extra leave were
strategically coherent or widely understood. For example,        added to staff holiday allowances, and health checks, a
some employees said there was a suggestion scheme                dental plan and employee assistance programme have been
in place, but others said that it has been discontinued.         introduced to help ensure employees do not burn out.
Confusion like this could benefit from some attention.
Although employees felt they worked in a supportive
environment, there was some mismatch in expectation over
social activities outside work.




                                                                            CREATING AN ENGAGED WORKFORCE                     53
PERCEPTIONS OF SENIOR MANAGEMENT
     A final issue that could be improved in ConstructionCo is the
     impression employees have of senior managers, particularly
     in terms of their visibility and quality of communication. This
     issue was somewhat frustrating for the senior management
     team because they felt they had put a huge amount of
     effort into improving this over recent years.

     ‘We have a bi-annual manager conference…we have a
     newsletter called HR Matters, which is something that goes
     out with the payslips…. We put different posters up on a
     weekly basis…we have the most amazing intranet…we
     have [ConstructionCo] Matters, which is a quarterly glossy
     magazine that goes out to all employees.’
     Senior HR manager

     Surveys often find that employees’ views of senior managers
     are less favourable than their perceptions of immediate line
     managers. However, in ConstructionCo, senior managers
     are vitally important for setting the strategic direction. The
     management structure is relatively flat and, therefore, in
     theory there should be less distance between non-managers
     and senior managers. The senior management team will
     be responding to this following a management conference
     in the coming year. They are also planning to increase the
     emphasis on activities such as directors’ surgeries – where
     staff are given the opportunity to meet senior managers;
     and by offering staff training and e-learning so that non-
     managers can appreciate the role of managers while also
     learning important leadership skills.

     Going back to the reflection of the employee engagement
     manager at ConstructionCo, the company is already doing
     many things well and currently has an elevated level of
     engagement. However, there are areas of weakness that need
     attention. Careful attention is needed to shape engagement
     initiatives around the future growth of the company.




54       CREATING AN ENGAGED WORKFORCE
Conclusions and management
8 implications

  In our research, we have collected data from over 5,200             However, it is positive to note that the proportion of engaged
  employees across eight different organisations. The picture         employees overall is somewhat higher than has been
  that has emerged about engagement is rich and complex.              found in previous surveys. In part, this may be due to the
  Extent of engagement is higher in the public sector                 self-selected nature of our sample of organisations, which
  compared with the private, but private sector employees are         joined the Kingston Engagement Consortium project out of
  more frequently engaged. Women are more engaged than                an interest in engagement and where it might reasonably
  men, whereas younger workers are less engaged than older            be supposed that engagement strategies would be further
  workers, and those on flexible contracts are more engaged           advanced than in other organisational settings. Despite this,
  than others, reflecting the findings of our earlier report (Truss   we did find quite wide variations in levels of engagement
  et al 2006). Those with managerial responsibilities emerge as       and in strategies and approaches to manage engagement,
  being more engaged than other employees.                            as emerges strongly from our case studies. These show that
                                                                      engagement can be managed effectively in different ways,
  For all these different employee groups, we have run                and that although there are some general prescriptions
  statistical tests to uncover what the key drivers of                of best practice relevant to everyone, the nuances and
  engagement are. It has emerged very strongly from this              implementation will vary from setting to setting.
  analysis that two factors are more important than any
  others in driving up levels of engagement for all groups:           Our engagement journey has led to some fascinating
  meaningfulness of work and employee voice. The way in               insights into employee engagement over the past three
  which senior managers communicate with employees is                 years. We are about to embark upon a new phase, where we
  the third most important driver. Other important factors            set about trying to answer some of the questions that have
  are person–job fit, supportive work environment and                 arisen out of the consortium project that we still feel remain
  management style.                                                   unanswered, using different methodologies and different
                                                                      approaches to tap into engagement at an even deeper level.
  DRIvERS OF ENGAGEMENT
  •	meaningfulness of work                                            Our management recommendations are:
  •	voice, being able to feed your views upwards
  •	senior management communication and vision                        •	Understanding your workforce engagement profile is the
  •	supportive work environment                                         first step to determining how to drive up engagement
  •	person–job fit                                                      levels.
  •	line management style                                             •	Engagement is clearly associated, both in our report and
                                                                        in other studies, with high levels of performance, reduced
  Taken together, these factors create a virtuous cycle of              intent to quit and raised levels of personal well-being. It
  engagement processes that employers can reinterpret in                is therefore legitimate from a corporate perspective to
  ways that fit with their own organisational context and               prioritise improving levels of employee engagement.
  circumstances. We note in our study that around one-third of        •	There is a clear need to help create meaning for employees
  respondents, 34%, can be classified as the ‘vocal-involved’,          in their work; this can be achieved intellectually by
  working in jobs they find meaningful and able to express their        articulating the links between individual jobs and the
  views. Since these are the two key drivers of engagement, it is       broader organisational aims, and emotionally through
  concerning that this figure is so low, and suggests that there is     sharing an understanding of deeper levels of the purpose
  much that employers can do to create a more engaging work             of the organisation.
  environment for their staff. Similarly, 32% can be described        •	Employees need to be given opportunities to express
  as ‘fit performers’, enjoying high levels of personal well-being      their views and to know that their opinions will be taken
  and performing to a high standard. Employers would generally          seriously. This is an activity that needs to involve both
  wish to raise this proportion of their workforce and putting in       senior and line managers. Our case studies provide some
  place a range of engagement initiatives would help to address         examples of how organisations in the consortium have
  this problem.                                                         achieved this.




                                                                                 CREATING AN ENGAGED WORKFORCE                   55
•	Senior managers have an important role to play in           •	Matching people to jobs is a critical driver of engagement.
       creating a vision for the organisation and sharing this       This is one area where HR professionals can play an
       with employees, and in being open, transparent and            important role helping line managers design jobs
       approachable.                                                 effectively, and develop selection processes that match
     •	Engagement levels are affected by the working                 individual skills to jobs.
       environment. Where employees can see that they have         •	Line managers act as the interface between the
       support from others to help them do their job, there is a     organisation and the employee, and can do much to
       sense of teamwork and they can safely express themselves,     impact on engagement. Another key HR role is therefore
       then engagement will be higher.                               to pay close attention to the selection, development and
                                                                     performance management of line managers to ensure they
                                                                     maximise their potential to be engaging leaders.




     Figure 22: Employee engagement model




                                                       Meaningfulness
                                                          of work



                                                                                    Supportive
                               Person–job                                             work
                                   fit                                             environment



                                                        Engagement


                                                                                      Senior
                             Voice, being                                          management
                           able to feed your                                      communication
                            views upwards                                           and vision


                                                           Line
                                                        management




56       CREATING AN ENGAGED WORKFORCE
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  BAKKER, A.B. and SCHAUFELI, W.B. (2008) Positive organizational     KINNIE, N., HUTCHINSON, S. and PURCELL, J. (2005) Satisfaction
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                                                                                  CREATING AN ENGAGED WORKFORCE                      57
10 Appendix

       METHODOLOGY                                                        For each of the organisations, online and/or paper versions
       The data collection for this research has been carried out         of the questionnaire were created by the Kingston Business
       over two years and the data reported come from a variety           School research team. They were distributed to our contact
       of sources, such as research evidence, questionnaire surveys,      person at the respective organisation (usually the head of HR
       face-to-face interviews and focus groups.                          or the head of engagement), who organised the distribution
                                                                          of the survey to the staff. Employees were encouraged to
       Early stages of the project included reviewing the academic        participate in the engagement survey and asked to complete
       and practitioner literature and developing research questions.     the questionnaires within two weeks. The online version of
       A research strategy was devised for conducting a series of         the survey was created on SurveyMonkey, a software tool
       in-depth case studies, each involving a questionnaire survey       that facilitates the development and administration of online
       and a number of face-to-face interviews. A rigorous process of     surveys. The data from SurveyMonkey were copied into the
       questionnaire development was undertaken using the academic        statistical software package, SPSS, by the research team at
       literature, previous research by Kingston University and a pilot   Kingston University. The hard-copy questionnaires were sent
       study. Focus groups were also used in some organisations.          back to the research team at Kingston University, where the
                                                                          data were entered manually into SPSS for analysis.
       In addition to the CIPD, ten organisations joined as members
       of the Kingston Employee Engagement Consortium, which              The items in the questionnaire were derived from three
       has operated as a research and networking group over the           sources:
       two-year period. Out of the ten member organisations,
       seven participated in the research and data collection, and a      •	the previous CIPD employee attitude survey, Working Life:
       partial dataset was collected from an additional organisation        Employee attitudes and engagement 2006 (Truss et al
       in collaboration with a master’s student at Kingston                 2006)
       University. The identity of participating organisations is         •	Kingston Job Engagement Inventory (KJEI)©, which was
       confidential, but they are generally well-known names from           developed by the research team and validated through a
       the following sectors:                                               pilot study involving 200 respondents
                                                                          •	academic research, sourced by the Kingston Business
       •	government department          •	manufacturing                     School research team.
       •	NHS                            •	environmental services
       •	local government               •	construction                    Two types of item were used in the survey. The first
       •	government agency              •	consultancy.                    requested information about the individual respondent,
                                                                          such as age, gender and education. The second type of item
       The first set of case studies was conducted during 2008;           asked respondents how they think or feel about an issue.
       the first taking place in March, the second in April, the          Each of these items followed the same format using a ‘Likert
       third in June and the fourth in October. The questionnaire         scale’. This gives respondents the opportunity to choose one
       was standardised across the case studies to allow reliable         outcome from a range of five. For example:
       comparative analysis. Depending on the type of workforce
       being surveyed, the questionnaire was completed online             Please tell us the extent to which you agree or disagree with
       or in paper format. An interview schedule of work-related          the following statement:
       questions was also developed to guide the interview process
       in each organisation. An interim report on the preliminary         My line manager is an effective leader
       findings from the first case studies was published with the
       CIPD in 2009 (Gatenby et al 2009).                                 Strongly disagree
                                                                          Disagree
       These findings, along with further questions that they raised,     Neither agree nor disagree
       fed into phase two of the research. During 2009, phase two         Agree
       of our research was conducted, involving the second set of         Strongly agree
       case studies, the first taking place in January, the second in
       March, the third in August and the fourth in September.




  58       CREATING AN ENGAGED WORKFORCE
Each response was scored in the following way:                  and take the average score for each person, that is, the total
                                                                score for that person divided by the total number of items.
Response                                       Score            For example, if we want to measure a particular factor using
Strongly disagree                                1              two questions, a participant might respond ‘strongly agree’
Disagree                                         2              to one question (a) and ‘agree’ to another (b). This gives
Neither agree nor disagree                       3              them a score for the factor of 5 + 4 = 9. Their average score
Agree                                            4              is the sum of the scores divided by the number of items (2),
Strongly agree                                   5              so 9/2 = 4.5. The 4.5 value is that person’s scale score. This
                                                                process is used to create composite scales that have a scale
The score was stored in the database to be used for analysis.   score for each individual respondent.

A number of the factors that were measured in the               PARTICIPANTS
questionnaire, for example employee engagement, are not         Across the eight organisations, 5,291 employees participated
easily assessed using only one item. A more effective way to    in the engagement survey. Table 4 shows a breakdown of
measure employee engagement is to use a set of items            the sample by a range of sociodemographic criteria.




 Table 4: Sample information
                                                                                                      %
 Gender
 Male                                                                                                58
 Female                                                                                              42
 Working status
 Full-time                                                                                           92
 Part-time                                                                                            8
 Age
 Less than 25                                                                                         6
 25–34                                                                                               21
 35–44                                                                                               29
 45–54                                                                                               29
 55 and over                                                                                         15
 Ethnicity
 White                                                                                               90
 Mixed                                                                                                2
 Asian or Asian British                                                                               2
 Black or Black British                                                                               3
 Chinese                                                                                              1
 Other ethnic group                                                                                   2
 Management role
 Managing employees                                                                                  43
 Not managing employees                                                                              57



                                                                           CREATING AN ENGAGED WORKFORCE                    59
Union membership
     Union member                                                                                          42
     Non-union member                                                                                      58
     Working hours
     Less than 37.5                                                                                        31
     37.5–46                                                                                               49
     47–50                                                                                                 13
     More than 50                                                                                           7
     Educational qualifications
     No qualifications                                                                                      8
     Other job-related qualifications                                                                       6
     GCSE or equivalent                                                                                    21
     A-levels or equivalent                                                                                13
     Other higher education below degree level                                                             16
     Degree or equivalent and above                                                                        36
     Organisation
     PlasticCo                                                                                              9
     ConstructionCo                                                                                         3
     NorthTrust                                                                                             8
     GovDep                                                                                                11
     LocalGov                                                                                              23
     ServiceCo                                                                                             22
     EnvironmentCo                                                                                         20
     ScienceCo                                                                                              4


     DATA ANALYSIS                                                     Statistical testing enables researchers to examine for real,
     Mean comparisons                                                  or statistically significant, differences between groups. As
     Mean comparisons are used to segment a dataset so that            a guide, please note that results for different sub-groups
     differences between subgroups can be examined, for example        generally need to differ by a certain number of percentage
     the mean levels of engagement for men as compared with            points for the difference to be statistically significant,
     women. Comparisons can then be made to see whether                although this will depend on the size of the sub-group
     there are important differences, such as whether women            sample and the percentage finding itself. The tests were
     are significantly more highly engaged than men. The data          performed with a 5% significance level, which means that
     for mean comparisons were examined to see whether the             95% of the time when we find a significant difference there
     differences between each group were statistically significant.    is an actual difference in the population. Where differences
     Differences in results for any two groups can be:                 between two groups are reported, this is because we found
                                                                       them to be significant in this way.
     •	real differences that are unlikely to have occurred by chance
     •	differences that have occurred by chance
     •	small or no differences at all.



60       CREATING AN ENGAGED WORKFORCE
CORRELATION ANALYSIS                                             These variables were examined in relation to engagement
Correlation analyses were used to examine the strength and       with work. Engagement was measured using the Kingston
direction of association between two variables. For example,     Job Engagement Inventory, which has three components:
age and engagement are significantly and positively
associated – engagement increases with age.                      •	social engagement
                                                                 •	affective engagement
REGRESSION ANALYSIS                                              •	intellectual engagement.
Another form of analysis that was used is regression analysis.
This enables us to explore the relationship between two sets     In this report, these components were aggregated into an
of variables: input or predictor variables, and outcome or       overall measure of engagement. Moreover, our measure
dependent variables. We wanted to know which variables           of engagement also included two dimensions, extent and
best predict outcomes such as engagement and performance.        frequency.

The predictor variables are nine of the scales that assessed     Next, analysis focused on the relationship between the
perceptions of work and work environment:                        nine organisational and management scales, and employee
                                                                 engagement (the input variables) and five dependent, or
•	employees’ satisfaction with HR policies and practices         outcome, variables:
•	senior managers’ style of communication
•	senior managers’ effectiveness                                 •	individual performance
•	line managers’ respect for and treatment of employees          •	innovative work behaviour
•	having opportunities to get involved in matters that affect    •	intention to quit
  individuals’ work                                              •	work sustainability
•	feeling that the job is personally meaningful                  •	employee well-being.
•	having clear objectives
•	getting the right support from colleagues and supervisors      Regression analysis examines the likelihood of association
•	feeling of being in the right job.                             between variables, that is, the degree to which the relationship
                                                                 is likely to have occurred by chance. A significant relationship
The nine scales were chosen because they have been               is one that is highly unlikely to have occurred by chance and
identified in previous research as the key factors associated    is therefore important. Regression also shows the direction of
with engagement. Each scale is itself representative of          association between variables. A positive association is when
several issues. For example, managers’ respect for and           a high score on one variable is associated with a high score
treatment of employees encompasses whether a manager             on the second variable, for example high levels of perceived
listens to ideas and suggestions, whether they make              meaningfulness of work being associated with high levels of
employees feel valued and whether they communicate               engagement with work. A negative association is when a high
effectively. The breadth of each scale needs to be considered    score on one variable is associated with a low score on the
when looking at the results of the regression analyses.          other variable, for example high levels of perceived engagement
                                                                 with work being associated with lack of intention to leave an
                                                                 organisation. In sum, regression equations show which of the
                                                                 input variables best predict the value of the dependent variable.




                                                                             CREATING AN ENGAGED WORKFORCE                     61
Issued: January 2010 Reference: 5097 © Chartered Institute of Personnel and Development 2010




Chartered Institute of Personnel and Development
151 The Broadway London SW19 1JQ
Tel: 020 8612 6200 Fax: 020 8612 6201
Email: cipd@cipd.co.uk Website: www.cipd.co.uk

Incorporated by Royal Charter Registered charity no.1079797

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Creating Engaged Workforce

  • 1. Research report January 2010 CREATING AN ENGAGED WORKFORCE
  • 2. CREATING AN ENGAGED WORKFORCE FINDINGS FROM THE KINGSTON EMPLOYEE ENGAGEMENT CONSORTIUM PROJECT This report has been written by: Kerstin Alfes, Kingston Business School Catherine Truss, Kingston Business School Emma C. Soane, London School of Economics and Political Science Chris Rees, Royal Holloway, University of London Mark Gatenby, University of Surrey
  • 3. Contents Executive summary 2 1 Introduction 4 2 The research study 5 3 Employee engagement in the UK 6 Case Study: ServiceCo 8 4 Engagement across different organisational contexts 12 Engagement strategies across the public and private sectors 12 Case Study: LocalGov 13 Engagement levels across the public and private sectors 16 Case Study: GovDep 18 5 Engaging different employees 21 6 Strategies for engagement 23 Meaningfulness 23 Case Study: ScienceCo 25 Management and leadership approaches 28 Perceptions of line managers 28 Perceptions of senior managers and employee engagement 29 Case Study: PlasticCo 30 Employee voice, involvement and communication 34 HR policies and practices 36 Case Study: EnvironmentCo 38 7 Outcomes of engagement 42 For organisations 42 Individual performance 42 Innovative work behaviour 43 Intention to stay 43 Case Study: NorthTrust 45 For individuals 49 Well-being 49 Sustainability 49 Case Study: ConstructionCo 51 8 Conclusions and management implications 55 9 References 57 10 Appendix 58 Methodology 58 Participants 59 Data analysis 60 CREATING AN ENGAGED WORKFORCE 1
  • 4. Executive summary EMPLOYEE ENGAGEMENT IN THE UK • Respondents rate their line managers more positively • We carried out research in eight organisations across the compared with their senior managers, with 56% indicating UK resulting in a dataset of 5,291 questionnaires and that they have a good relationship with their line manager. around 180 interviews. • Employee voice is a strong driver of engagement. • Our measure of engagement incorporates three • Just 34% of employees are the ‘vocal-involved’, who dimensions: emotional or affective engagement; intellectual perceive their work as meaningful and have opportunities or cognitive engagement; and social engagement, each to voice their views, yet this category of workers is the measured in terms of extent and frequency. most engaged. • Overall, 8% of respondents in our sample are strongly • Most employees have negative views about their engaged with their work, with the majority falling into an organisation’s HR policies and practices. intermediate category. • HR practices do not impact directly on engagement; • With respect to the frequency of engagement, 18% are the relationship is mediated by person–job fit and line engaged on a daily basis. management style. • Comparisons across the three dimensions reveal that levels of social engagement are lowest. OUTCOMES OF ENGAGEMENT • Employee engagement is associated with a range of ENGAGEMENT ACROSS DIFFERENT positive outcomes at the individual and organisational ORGANISATIONAL CONTExTS levels. • Many organisations measure engagement and have • Engaged employees perform better. specific engagement strategies across the public and • The majority of our respondents were rated ‘good’ in their private sectors. last appraisal. • Public sector employees are more strongly but less • Engaged employees are more innovative than others. frequently engaged than in the private sector. • Engaged employees are more likely to want to stay with • Public sector employees show higher levels of social and their employer. intellectual engagement, whereas private sector employees • In our sample, 35% indicate that they would like to are more engaged affectively. continue working for their employer for five or more years, compared with 17% who want to leave within the next ENGAGING DIFFERENT EMPLOYEES two years. • Comparisons across employee groups reveal a variety of • Engaged employees enjoy greater levels of personal interesting differences with respect to demographics and well-being. job types. • Engaged employees perceive their workload to be more • Women are more engaged than men. sustainable than others. • Younger workers are less engaged than older workers. • One-third of employees are ‘fit-performers’, enjoying high • Those on flexible contracts are more engaged. levels of personal well-being and performing well. • Managers are more engaged than non-managers. • Our data indicate that excessively high levels of engagement might lead to ill-health and burnout. STRATEGIES FOR ENGAGEMENT • Organisations can implement a range of workplace CASE STUDIES strategies that impact upon levels of engagement. • In our two-year research project we analysed levels of • Meaningfulness is the most important driver of engagement across eight different organisations, which are engagement for all employee groups. included as case studies in this report. • Two-thirds of all respondents in our study find meaning in • ServiceCo is a support services partner company with their work. around 9,000 employees. An important factor influencing • Senior management vision and communication is a key levels of engagement is the extent to which employees driver of engagement, whereas senior management are given a platform to communicate their opinion effectiveness is negatively related to employee engagement. about work-related topics. Further challenges include • Positive perceptions of one’s line manager are strongly the integration of employees working remotely and the linked with engagement. engagement of manual workers. 2 CREATING AN ENGAGED WORKFORCE
  • 5. • LocalGov is one of the largest local authorities in the MANAGEMENT IMPLICATIONS UK, employing more than 50,000 employees. In 2006, • The main drivers for engagement in our study LocalGov initiated a programme to empower employees are meaningful work, voice, senior management and increase their levels of engagement, which runs very communication style and vision, supportive work successfully. However, further improvements can be made environment, person–job fit and line management style. in terms of communicating with employees, especially • Understanding your workforce engagement profile is the during change initiatives. first step to determining how to drive up engagement levels. • GovDep is a large government department that has been • Engagement is clearly associated, both in our report and interested in employee engagement for several years. One in other studies, with high levels of performance, reduced of the major strengths in this organisation is work–life intent to quit and raised levels of personal well-being. It balance and the opportunities to work flexibly. An area for is therefore legitimate from a corporate perspective to improvement is the way leadership capacity is developed prioritise improving levels of employee engagement. within GovDep. • There is a clear need to help create meaning for employees • ScienceCo is a public sector organisation, supplying in their work; this can be achieved intellectually by scientific information in the UK. Changes in the economic articulating the links between individual jobs and the climate prompted ScienceCo to launch a new initiative to broader organisational aims, and emotionally through move from a very stable to a more dynamic workforce. sharing an understanding of deeper levels of the purpose Employees at ScienceCo find their jobs highly meaningful; of the organisation. however, senior management attitudes and behaviour • Employees need to be given opportunities to express could be improved to further raise levels of engagement. their views and to know that their opinions will be taken • PlasticCo is a leading plastics manufacturer with a seriously. This is an activity that needs to involve both workforce of around 650 employees. Following the results senior and line managers. Our case studies provide some from their engagement survey, PlasticCo undertook a examples of how organisations in the consortium have major effort to change the culture and move towards a achieved this. more open and integrative management style. • Senior managers have an important role to play in • EnvironmentCo is a leading recycling and waste creating a vision for the organisation and sharing this management company in the UK, employing almost with employees, and in being open, transparent and 12,500 people in the UK. A major strength within approachable. EnvironmentCo is the clarity of objectives, as the vast • Engagement levels are affected by the working majority of employees feels that they are clear about the environment. Where employees can see that they have tasks they have to perform to achieve their goals. An support from others to help them do their job, there is a important area for improvement are HR practices, as many sense of teamwork and they can safely express themselves, respondents express their dissatisfaction, especially with then engagement will be higher. training and development opportunities, and the career • Matching people to jobs is a critical driver of engagement. and performance appraisal systems. This is one area where HR professionals can play an • NorthTrust is an NHS foundation trust providing healthcare important role helping line managers design jobs to a population of over 300,000 people. A consistently effectively, and develop selection processes that match positive finding is that employees are generally satisfied individual skills to jobs. working for the NHS. Future challenges for NorthTrust are • Line managers act as the interface between the communication and leadership style. organisation and the employee, and can do much to • ConstructionCo is an international consultancy and impact on engagement. Another key HR role is therefore construction firm. The company benefits from its to pay close attention to the selection, development and entrepreneurial culture and the fair and consistent performance management of line managers to ensure they management style. An area for improvement is work–life maximise their potential to be engaging leaders. balance as many employees feel compelled to work long hours due to the sheer amount of work. CREATING AN ENGAGED WORKFORCE 3
  • 6. 1 Introduction The findings of the UK Government’s 2009 MacLeod Review based in the Centre for Research in Employment, Skills and into employee engagement (MacLeod and Clarke 2009) have Society (CRESS) at Kingston University. Working with the underlined the critical role played by an engaged workforce CIPD and the ten members of the consortium, we have in both organisational success and individual well-being. undertaken a very thorough and detailed exploration of The study corroborates the findings of the earlier report employee engagement, its antecedents and consequences, commissioned by the CIPD into employee engagement in a variety of different settings. Through this research, we (Gatenby et al 2009). This highlighted the relatively low levels have developed a new definition and conceptualisation of of engagement in the UK workforce generally, together employee engagement that builds on prior academic studies with evidence demonstrating the impact of engagement but extends them in important ways, and we have studied on performance, quality, innovation, levels of absenteeism, the processes through which engagement levels can be turnover and organisational advocacy. Engagement would raised or lowered through the actions taken by managers. seem to be beneficial to both employers and employees, as those with the highest levels of engagement also appear to enjoy greater personal well-being. However, despite these and other studies, it remains true that, in theoretical, conceptual and empirical terms, we in fact know relatively little about the concept of employee engagement. Largely, this is because academic research has lagged significantly behind the wealth of interest shown by practitioners, HR professionals and consultants, who have been much quicker to note the importance of this relatively new concept. Consequently, many management consultancies and survey firms have developed a definition of employee engagement and associated measurement index, while their academic colleagues have been much slower off the mark and have thus far not agreed on a single, theoretically derived and empirically validated definition of engagement. In particular, we note one significant discrepancy. Most consultancies and survey firms regard engagement as something that is done to employees, in other words, ‘a workplace approach designed to ensure that employees are committed to their organisation’s goals and values, motivated to contribute to organisational success, and are able at the same time to enhance their own sense of well-being’ (MacLeod and Clarke 2009). In contrast, however they may actually define engagement, academics tend to agree that engagement is experienced by individuals, a state of being that may be affected by management strategies and approaches, but is not, in and of itself, such a strategy (May et al 2004). It is the latter view of engagement as a state experienced by employees that has informed the work undertaken over the past two years by the Employee Engagement Consortium 4 CREATING AN ENGAGED WORKFORCE
  • 7. 2 The research study We took as our starting point the first report we wrote on Thus, an engaged employee is someone who thinks hard engagement for the CIPD in 2006 (Truss et al 2006). In this about their work, feels positive when they do a good job and study, we were able to survey the views of 2,000 working discusses work-related matters and improvements with those adults from across the UK. This investigation yielded some around them. important insights into engagement. However, we felt that there were still some unanswered questions. Most This definition of engagement derives from the work of particularly, although the measure of engagement we used earlier theorists and commentators such as Kahn (1990), in that report was helpful (May et al 2004), we wanted to May et al (2004) and Schaufeli and Bakker (2004), all develop this conceptualisation further, drawing on wider of whom regard engagement as a psychological state academic studies and empirical evidence. We also wanted to experienced by employees in relation to their work, explore, in more depth, how the engagement process works together with associated behaviours. Engagement therefore across different sectors and types of organisation. has intellectual, emotional and behavioural dimensions. Our definition of engagement draws specifically on the The following year, in 2007, with support from the CIPD, we work of Kahn (1990) in its incorporation of the concept founded the Kingston Employee Engagement Consortium of social engagement, and suggests that the willingness project in collaboration with ten public and private sector of employees to discuss work-related improvements members. We set out to answer the following five questions: with those around them is an important dimension of 1 What does engagement mean? engagement and which serves to differentiate engagement from other, similar constructs such as job satisfaction, 2 How can engagement be managed? organisational citizenship behaviour and ‘flow’. It is 3 What are the consequences of engagement for important to note that, following earlier theorists, our organisations? concern is with an individual’s engagement with their 4 How does engagement relate to other individual specific job, rather than with their organisation as a whole. characteristics? We would argue that these notions of organisational 5 How is engagement related to employee voice and commitment and advocacy are generally associated with representation? high levels of engagement, but are distinct from it. We define employee engagement as: ‘being positively Between 2007 and 2009, we collected data from eight present during the performance of work organisations. Our preliminary findings were published by by willingly contributing intellectual effort, experiencing the CIPD in early 2009 (Gatenby et al 2009). In this, our final positive emotions and meaningful connections to others.’ report, we extend our interim report and present the overall findings from this research project in the form of eight We see engagement as having three core facets: detailed case studies, together with an analysis of our entire dataset. Overall, we report on the findings of a study that • intellectual engagement, or thinking hard about the has involved 5,291 questionnaire respondents and around job and how to do it better 180 interviews. • affective engagement, or feeling positively about doing a good job First, we explore differences in engagement across • social engagement, or actively taking opportunities to organisational contexts and examine how different types discuss work-related improvements with others at work. of employee (for example, men/women; managers/non- managers) engage in their work. In the following section, We also differentiate between the extent of engagement we explain the key drivers of engagement, before we – the strength of feeling engaged – and the frequency of analyse the main outcomes of employee engagement at engagement – that is, how often individuals experience an individual and organisational level. Finally, we introduce engagement. This approach has been used in studies of our overarching model of engagement and highlight the other psychological constructs such as burnout. management implications arising from our findings. In the Appendix, we explain the methodology used in our study. CREATING AN ENGAGED WORKFORCE 5
  • 8. 3 Employee engagement in the UK We measured and analysed levels of engagement in a If we plot extent of engagement versus frequency, we find number of different ways. Individuals were asked a series of that just 5% of the sample overall can be described as very questions that were designed to evaluate how engaged they highly engaged (scoring a very high 4.51 or over on both are with their work, each using a five-point response scale. extent and frequency). Conversely, just 4% report extremely These questions combine to create three separate scales each low levels of engagement (scoring 2.99 or below on the measuring social, affective and intellectual engagement. extent and frequency scales). We measured these facets of engagement in terms of both extent – that is how engaged the person is – and frequency Looked at in another way, the mean score for engagement – that is how often they are engaged. We also analysed extent is 3.8 and for frequency 3.9 out of a possible 5. our data in terms of the overall extent and frequency of Consequently, it would be true to say that the vast majority engagement, combining the three scales into an aggregate of employees can be described as falling into an intermediate measure of engagement. This means that we are able to talk category of engagement, which is largely what would be about engagement from various angles. expected. This suggests that there is still considerable scope for organisations to raise levels of engagement overall. In terms of the overall extent of engagement, if we divide our respondents into five categories corresponding to our We can break this down further by looking at the three five-point response scale, we found that 8% of respondents facets of engagement (see Table 1). are ‘strongly engaged’ with their work (that is, scoring 4.5 or over on the scale out of a possible 5). A further 70% can be These findings comparing across the three facets of described as ‘moderately’ or ‘somewhat’ engaged (scoring engagement provide an interesting insight into how between 3.5 and 4.5 on the scale), and just 1% as very engagement operates in practice. Scores for social weakly engaged, with the remaining 21% neither engaged engagement are the lowest, which was reflected within each nor disengaged. of the organisations individually, both in terms of extent and frequency. Levels of affective engagement are highest, with Our study is the first that has explored the frequency intellectual engagement occupying an intermediate position. with which people are engaged with their work, which The relatively low level of social engagement in terms of both is an interesting addition to our understanding of how extent and frequency is of concern. Social engagement is a engagement works in practice. We found that fewer than measure of how much people at work participate in constructive one in five, 18%, are engaged on a daily basis. Fifty-nine dialogue with those around them about their work or how to per cent report being engaged ‘once a week’, and 22% ‘a improve working methods or skills. This is closely linked with few times a year’ or ‘once a month’, and just 1% report notions of organisational social capital, which suggests that one ‘never’ being engaged. These findings suggest that a of the most important resources at an organisation’s disposal substantial majority of employees are not engaged with is the network of relationships both within the organisation their work on a daily basis but, equally, only a very small and beyond. Where levels of social engagement are low, this number are never engaged. may mean that organisations are not capitalising on the unique strengths and knowledge of their workforce. Table 1: Engagement extent and frequency (%) Extent Frequency strong daily/once a week (over 4.0 out of 5) (over 4.0 out of 5) Social engagement 38 29 Affective engagement 58 77 Intellectual engagement 41 65 6 CREATING AN ENGAGED WORKFORCE
  • 9. However, overall, our findings broadly suggest that levels rather than focus on long working hours. It is perfectly of engagement are moderate–high in the sample of possible to be engaged with one’s work during working organisations participating in our research. Of course, our hours, but not work excessive overtime. Long working sample is self-selected and chose to be members of the hours may be indicative of other factors, such as a culture Employee Engagement Consortium, and so it is perhaps to of presenteeism in the workplace. Whereas engagement is be expected that the overall level of engagement in these associated with positive benefits for the individual, such as organisations would be higher than average. enhanced well-being, workaholism has been found to be linked with negative health outcomes. Nevertheless the findings are encouraging and compare favourably with other studies into engagement levels. For The second reason that studies report differing levels of example, Truss et al (2006) found that 35% of employees engagement is that different scales are used to record are actively engaged, with 57% moderately engaged. employees’ views and the data are analysed and coded Another study found that 29% of workers are engaged in different ways. Here, we use a standard approach and 17% disengaged (Seijts and Crim 2006). A study by recommended for academic research, giving respondents five the Corporate Leadership Council (2004) found that just possible responses to each question. This is one of the most 24% of staff are highly engaged. The conclusion from the common ways of recording and coding employees’ views. MacLeod Review (2009) is that levels of engagement in the UK workforce generally need to be raised. Although our These divergent approaches to conceptualising, measuring findings are more positive, it is still the case that levels of and reporting on engagement can create a confusing engagement could be higher. picture for managers wishing to understand engagement and develop strategies for raising levels of engagement Why do studies of engagement reveal such a different amongst their workforce. Everyone will form their own picture? There are two main reasons for this. First, views as to how best to measure the engagement levels of different studies use different questions to assess levels of their own employees based on what is important to them. engagement, based on how engagement is defined and It is, however, interesting that whatever the measure of operationalised. Measures of engagement that incorporate engagement used, the range of drivers and outcomes of questions around employees’ understanding and awareness engagement tend to be quite similar across different studies, of organisational strategic objectives, for example, will and the general conclusion is that the majority of employees always yield a more negative response as many employees are moderately engaged with scope to raise levels of lack this knowledge. However, it could be argued that this engagement overall. does not reflect the psychological state of engagement per se. Other studies, such as our report for the CIPD in 2006 KEY FINDINGS (Truss et al – in this report we used the May et al (2004) measure of employee engagement), include questions on • Eight per cent are strongly engaged with their work, employees’ willingness to work overtime and take work with the majority falling into an intermediate category. home with them. However, we did not include questions • Eighteen per cent are engaged ‘daily’. such as these in this current measure, which is based on • Our measure of engagement incorporates three work we have undertaken since 2006 on the topic of dimensions: emotional or affective engagement; engagement that extends prior understanding. We wanted intellectual or cognitive engagement; and social to include questions capturing the extent to which people engagement, each measured in terms of extent and engage socially with their colleagues, feel positively about frequency. their work and think hard about how to do their jobs better, • Levels of social engagement are lowest. CREATING AN ENGAGED WORKFORCE 7
  • 10. CASE STUDY: ServiceCo ServiceCo is a support services partner in the UK providing ENGAGEMENT LEvELS business solutions for clients across the local government, The results of the survey suggest that employees at transport, education, health and defence sectors. As a part ServiceCo generally have very high levels of engagement. of a large European infrastructure and services group, the Nine per cent are very strongly engaged and 77% are company employs around 10,500 employees and is present strongly engaged. Fourteen per cent have a moderate level in over 200 locations within the UK. In 2008, ServiceCo had of employee engagement. a turnover of £1.49 billion and a profit of £86.5 million. ‘I think on the whole most people would generally care ServiceCo’s vision is about transforming the nature of about what they do and the company they work for. I think services to the public. A strategy has been developed to in my experience and the people I know and I work with, implement this vision, which focuses on being engaged it’s not just a salary, it’s not just a job, they do believe in throughout all work processes. Hence, ServiceCo encourages the company and their division and the work that they do.’ employees to take every opportunity to ‘go the extra Development manager mile’ for the customer. ServiceCo has been interested in engagement for several years. The company launched its Overall engagement frequency is even higher among first employee engagement survey in 2006 and has been employees at ServiceCo, with 19% being engaged on a daily conducting engagement surveys once a year since then. The basis and 66% being engaged once a week. Fourteen per surveys have been supported by action plans around the cent are engaged once a month and only 1% said they are key issues arising. ServiceCo joined the Kingston University engaged only a few times a year. A director reflects upon the Employee Engagement Consortium to get a more detailed high levels of engagement and at the same time points out understanding of levels of engagement across different that it is important to continuously strive for higher levels. groups of the diverse workforce. ‘ServiceCo does have an engaged workforce but you can A total of 2,500 employees working for ServiceCo in the always engage more.’ Director UK were encouraged to participate in the study. Those with email access (1,500 employees) were invited to complete In the next sections we will consider three areas that are an online questionnaire survey. A further 1,000 employees contributing to high levels of engagement in ServiceCo – without Internet access were given a paper version of employee voice, supportive environment and commitment – and the questionnaire. A total of 1,157 questionnaires were three areas where there is still some room for improvement – returned, providing a response rate of 46%. Additionally, 33 engagement among manual workers, integration of workers interviews with managers and employees were carried out. working remotely and well-being in some roles. Figure 1: Extent and frequency of employee engagement at ServiceCo (%) 80 70 60 50 40 30 20 10 0 Very weak/ Weak/ Moderate/ Strong/ Very strong/ Never A few times a year Once a month Once a week Daily Overall engagement extent Overall engagement frequency 8 CREATING AN ENGAGED WORKFORCE
  • 11. EMPLOYEE vOICE ‘Everybody is easy to get on with. Everybody works as a One of the most important factors impacting upon the high team; we’re all trying to achieve common goals. From other levels of employee engagement at ServiceCo is the extent organisations I’ve worked in there was what I call politicking to which employees participate in meetings and decisions but there’s very little politicking within ServiceCo. Everybody that are directly related to their job and are given a platform has got a common objective, common understanding and to communicate their opinion about work-related topics. people work in different ways and you need to understand Most employees feel highly involved in work-related matters, that but it’s very friendly, very approachable.’ Director could give their opinion and are listened to by management. ‘I think there’s a real teamwork ethos on a number of the ‘I think that culture encourages upward communication, contracts.’ Director because I think people are very approachable.’ Director Most employees also feel very comfortable saying that they ‘We can always come up with something and it’s taken could ‘be themselves’ at work. through and it’s dealt with. I certainly know on the projects they have regular meetings with the side teams where ‘I’ve always found it a very, very comfortable working anyone who comes up with any initiatives or ideas, they are environment with people I can actually get on with.’ always received and welcomed.’ Supply chain manager Manager ServiceCo has implemented an innovation library as one ‘Within my department, we’re almost like a family, we look initiative to foster engagement across the organisation. after each other, we’re very good at making sure everybody’s The programme encourages employees to share success okay.’ Supply chain manager stories and ideas for improvement and relies on innovation champions who capture new ideas and feed them back ‘I think the energy and the commitment that you get from into the innovation library. The innovation library is well individuals from being part of a team far outweighs the received among office-based staff; however, as the following energy of the individuals as individual parts as it were.’ manager points out, ServiceCo could make even more use Manager of this tool if operational roles could be informed about the innovation library and encouraged to use it more frequently. COMMITMENT Following the positive comments above it is not surprising to ‘We have got a best practice library with a lot of information. find that ServiceCo employees have high levels of commitment I think office-based staff probably [use it] because they know to their department. Many employees indicate that they about it. I would query if operatives knew that we had an experience a strong sense of belonging to their department and innovation forum to put their ideas forward to.’ would be happy to spend the rest of their career there. The high Marketing manager levels of commitment are closely associated with the good levels of teamwork and clearly contribute to the organisation’s high SUPPORTIvE ENvIRONMENT levels of engagement. Many employees are committed to do a Another great strength at ServiceCo is the level of support good job and put a lot of effort into their work. in the working environment. This refers to the level of teamwork. As many employees at ServiceCo work in teams, ‘You go to any of our schools and you will find the cleaners a supportive working environment is important as it enables are all very, very committed; if they can’t do something to employees to feel comfortable at work and therefore the best of the quality that they want they get concerned has a major impact on levels of engagement. Employees about it.’ Director at ServiceCo are very satisfied with the support they get from their colleagues in carrying out their jobs. They feel ‘Generally, we have a very committed workforce who will that colleagues help each other out whenever someone stay here as long as there is a job to be done.’ Manager is experiencing a problem, and that generally all team members are committed to achieving common team goals. CREATING AN ENGAGED WORKFORCE 9
  • 12. Commitment levels with respect to ServiceCo as a whole are ‘[I would like] to learn more skills.’ Manual worker slightly lower, but still on a satisfactory level. A good part of the workforce feels emotionally attached to ServiceCo ‘To better me for the job the organisation should provide me and are proud to work for the organisation. Therefore, with regular training in health and safety, new techniques of many employees do recommend ServiceCo as a good place machinery and IT literacy.’ Manual worker to work to friends and family. This is mainly attributed to the development opportunities available and because they Further topics arose around the quality of the equipment, consider ServiceCo a ‘very dynamic and exciting place to be’. the role of line managers and better work–life balance. As Manager a result of the lower levels of engagement among manual workers, ServiceCo has put an action plan in place to Hence, related to the high commitment, employees show a improve the work experience of manual workers. very good level of advocacy for their company. EMPLOYEES WORKING REMOTELY ‘I think there are currently five people who are working in A second area for improvement, which is closely related to ServiceCo that I have recommended.’ Director the previous topic, is about employees working remotely. As ServiceCo is present in over 200 locations across the UK, many ‘People who work here will get people into the business, employees work in small teams at some distance from the either friends or family even. I have a father and son team head office. In the survey, many remotely working employees working for me within my team.’ Manager feel that they received little attention and information from the head office. They indicate a strong preference to see their MANUAL WORKERS managers more often to increase mutual understanding of Although engagement levels at ServiceCo are generally very work objectives and work environment, raise awareness of high, manual workers are significantly less engaged than other problems occurring on remote jobs, and discuss new ideas or employee groups within the company. This finding is consistent areas for improvement. with other companies employing manual workers and ServiceCo are ready to address this within the coming months. ‘We’re out on a limb in the north of England and we very Manual workers at ServiceCo indicated some major points of rarely have senior management come and visit so we don’t dissatisfaction. When asked about what could be improved feel part of the whole with ServiceCo. It would be nice to see in their working life, they expressed a need to improve more engagement from the senior management.’ Manager communication between the workforce and management. ‘You do hear of people who don’t get communicated to and ‘[The one thing which would help improve my working feeling left out and I don’t know whether it’s the barriers life is] better communications between employees and or it’s the managers or whether they’re not given the talks, managers.’ Manual worker which may be the case. It’s especially in remote areas it could be that there’s more work to do there.’ Manager ‘Communications with my line manager and project manager are very good, communications with higher The implication of having employees working remotely and management are less effective.’ Manual worker the difficulties in managing them are also recognised by some top managers. ‘It would be nice for the senior management to meet the staff.’ Manual worker ‘Communication is not a challenge but something we have to work very hard at because we employ 8,500 people ‘Understanding by senior managers of how difficult the job within the group and many of those are part-timers that are can be would improve my working life.’ Manual worker very remote from head office and quite remote from their contract bases.’ Director Manual workers at ServiceCo also indicated that they would like to get involved more in decision-making and also would like to get more training to improve the way they are working. 10 CREATING AN ENGAGED WORKFORCE
  • 13. ‘I encourage face-to-face meetings. I have two senior ‘I think people are willing to go the extra mile to put in the managers that work for me and even though the teams bid, they can be very hectic and very time-consuming and are quite remote they will meet with them on a face-to- a lengthy process and I think that when push comes to face basis as regularly as possible, given the constraints of shove people are willing to help out, step in and do what’s travelling of course.’ Director needed for the company and their team and for themselves.’ Manager ‘I just think it’s down to the simple kind of human need for that kind of contact and it is more difficult if you are ‘The work–life balance sometimes goes wrong, particularly managing remotely. It requires people to be more mature in around bids going in, you know they get very intense when their attitude and more self-contained and not everybody is there are very significant bids going in, so the work–life like that.’ Director balance probably goes the wrong way.’ Director However, although individual top managers are aware of ‘We have gone through a period where we have been these challenges and take necessary steps to integrate extremely stretched with the amount of bids that we’ve remote workers by making efforts to meet them regularly, done and last year I think I’ve been involved with six, seven ServiceCo would benefit from organisation-wide processes bids and some of these have been long days, long weeks, considering the management of remote workers. long months. Not only that, in my area I’ve had one contract that was not performing terribly well so we’ve been looking WELL-bEING to improve the performance of that during the last year.’ In general, employees at ServiceCo experience high levels of Director personal well-being. A large majority of staff feel that their work is highly sustainable and they are therefore able to ‘When there’s a lot of bidding it’s really poor, you have no continue working at their current pace. However, comparing life.’ Manager the levels of well-being across different groups at ServiceCo reveals that contract managers experience significantly higher ServiceCo should therefore monitor these roles more closely levels of stress. They feel burned out more often and also have to ensure that contract managers can cope with work a less favourable work–life balance. The reason for the high demands, and measures such as stress management training workload is that on top of being involved in managing their courses and health initiatives should be considered where own contract, especially the most experienced and hard- potential problems arise. working contract managers are often drawn into bidding for new contracts. Although employees generally like the team effort and the atmosphere during bidding periods, which they describe as motivating and exciting, the work–life balance goes wrong when they are involved in too many bids during the year. CREATING AN ENGAGED WORKFORCE 11
  • 14. Engagement across different 4 organisational contexts Fifty years ago, the American political scientist Wallace Sayre of engagement based on the ‘say, stay and strive’ model. (1958) argued that public and private organisations are Related survey questions focus on employee advocacy ‘fundamentally alike in all unimportant respects’. Since then, and whether employees are happy to remain with their organisations have been transformed by new technologies, organisation for the foreseeable future. Many organisations financial systems and management methods. In recent in the private sector are also incorporating measures of years, public organisations have been encouraged to engagement into annual surveys. We have seen evidence become more ‘business-like’ by adopting the management of this in small, medium and large companies and across style and processes used in private organisations (Boyne different industries. et al 1999). Research conducted by the CIPD has shown that work practices, such as carefully planned recruitment Second, ‘engagement’ has been used within organisations and selection, targeted training and equitable rewards, are as a more general term to describe workplace approaches significant drivers for organisational success. These practices to improvement. For example, several private companies are increasingly being implemented by managers in both the we studied used suggestion schemes under the banner of public and private sectors. engagement. A local authority we studied is using an ambitious programme of employee involvement to engage staff. Often, As this report shows, employee engagement has emerged as engagement initiatives are linked to training and mentoring. a useful way to measure the relationship between employee and employer. In this section, we compare the engagement Our research suggests that there are no consistent or levels of employees across the public and private sectors. distinctive differences between public and private sector We draw on the evidence from three public organisations strategies around employee engagement. In some cases, – an NHS trust, local authority and central government there are more similarities between sectors than within agency – and five private sector organisations – including them. Particular initiatives depend on senior management manufacturing and service industries. In particular, we style and corporate strategy, but also on the size of the consider similarities in the experience of work and explore organisation, the type of workforce (for example skill level) how organisational context may contribute to differences in and the type of work (for example work environment and engagement levels. location). Furthermore, external assistance is often provided by management consultancy and research organisations, ENGAGEMENT STRATEGIES ACROSS THE PUbLIC in which case, particular approaches in both the public and AND PRIvATE SECTORS private sectors reflect the preferred method of the consulting Our research reveals that organisations in many parts of the firm. Individual organisations have tended to give their UK economy are actively pursuing strategies to raise levels of employee engagement strategies distinctive branding, but employee engagement. The management initiatives we have the details and underlying initiatives are often very similar. observed take many different forms, paralleling the diversity of One difference we did find was that public organisations are organisational needs. As the MacLeod Review recommended, more likely to share and collaborate with the development of organisations need to find their own definition and approach engagement methods. We found examples of groups being contingent with organisational context (MacLeod and Clarke set up within local government, the NHS and the civil service, 2009). We have observed two broad trends across the public where managers are coming together to discuss employee and private sectors (Boyne 2002). engagement and sharing ideas for improvement. This has tended not to be the case in the private sector, where First, we found that many organisations now regard competitive pressures mean companies are more likely to measures of engagement as the most significant measure of pursue their own approach, often at considerable cost. employee attitudes or experience. Based on either a single question or several questions to make a composite measure, engagement has been incorporated into annual employee attitude surveys. For example, the NHS annual survey includes questions such as ‘I am enthusiastic about my job’, ‘time passes quickly when I am working’ and ‘I often do more than is required’. The Civil Service has a measure 12 CREATING AN ENGAGED WORKFORCE
  • 15. CASE STUDY: LocalGov With more than 50,000 employees, LocalGov is one Following the launch of the BEST programme, LocalGov of the largest local authorities in the UK. Many local decided to join the Kingston University Employee services are managed in ten geographic constituencies Engagement Consortium to further strengthen their and decentralisation of duties is supposed to continue in knowledge about engagement and identify areas that could the future. In collaboration with the community and local be further improved to strengthen levels of engagement strategic partners, LocalGov has developed a strategic across the workforce. vision for the city, which centres around ‘being a global city with a local heart’. LocalGov has identified several areas of All employees working for LocalGov in the UK were invited improvement to turn the vision into reality and works closely to participate in the engagement survey. A total of 1,198 with its partners to achieve this. questionnaires were returned, providing a response rate of 2.4%. Additionally, 21 face-to-face interviews were The council has undergone significant changes and conducted with different managers, including HR managers, restructuring initiatives in the past. A major change involved team managers and service area managers. the revision and alignment of pay structures in accordance with new national guidelines following the Single Status ENGAGEMENT LEvELS Agreement, which was signed between local government The results of the survey indicate that LocalGov generally and trade unions in 1997 to streamline all pay scales into has an engaged workforce. Seventy-five per cent of the one. Further changes will follow over the next few years. respondents indicate that they are strongly engaged and 7% are very strongly engaged. Seventeen per cent have a In 2006, internal employee surveys indicated that employees moderate level with respect to the engagement extent. In at LocalGov felt disempowered and were not very motivated. terms of engagement frequency, the results are similarly As a response to these findings, LocalGov became interested positive, with 17% being engaged daily and 65% being in the topic of employee engagement and decided to initiate engaged on a weekly basis. the BEST (Belief – Excellence – Success – Trust) programme. This council-wide initiative aimed at involving employees ‘Oh most of them would go the extra mile, there’s probably a in change management and decision-making by running couple who wouldn’t but the majority of them would always workshops and empowering teams. The central idea behind go the extra mile.’ Team manager BEST is to give employees a voice and provide them with a platform where they can give their opinion and share ideas ‘Eighty per cent [really care about job]. I know that for some for improvement. The initiative is generally well received of them, if we’d have been high up on that list of closures, from the employees; however, they also point out areas that it would have really affected them, particularly some of the still need more development. older ones who just want to get to retirement now and enjoy the job they’re doing and do it quite well.’ Team manager ‘The BEST team are really, really working hard to do it, because things have come and gone before. So I think it is starting to The high levels of engagement in LocalGov are closely embed itself. There’s still a huge amount of cynicism out there related to the nature of work and the ethos of being a local and it’s so important to get it seen as something that’s integral government employee. As one manager puts it: ‘It’s the as opposed to yet another thing we’ve got to tick the box on. nature of the work as well, if you’re dealing face to face with But I think it’s moving that way but then you see I’m closer to it the public or you’re a social worker or a childcare worker, so than other people.’ Policy manager there’s that element.’ ‘If you’ve got enthusiastic leaders then it seems to work. Last In this case study we will consider which engagement-related year we had a leader that wasn’t particularly enthusiastic aspects LocalGov is managing well – job-related skills and and nothing seemed to be carried forward from that. I think flexible working opportunities – but also discuss which other it is very indicative of who you’ve got doing the team leader engagement strategies could be implemented to further role.’ Team manager raise levels of employee engagement among the workforce – communication, appraisal process. CREATING AN ENGAGED WORKFORCE 13
  • 16. Figure 2: Extent and frequency of employee engagement at LocalGov (%) 80 70 60 50 40 30 20 10 0 Very weak/ Weak/ Moderate/ Strong/ Very strong/ Never A few times a year Once a month Once a week Daily Overall engagement extent Overall engagement frequency JOb-RELATED SKILLS FLExIbLE WORKING OPPORTUNITIES One of the biggest strengths within LocalGov that clearly Flexible working opportunities have been linked to high contributes to the level of engagement is a close match levels of engagement in many studies. LocalGov offers a between the content of the individual roles and their variety of opportunities for their employees to work flexibly. level of skills. Almost two-thirds of respondents feel As one HR manager explained, LocalGov tries to comply that they possess the necessary skills to carry out their with all employee requests within the limits set by the need job at the required standards. Employees appreciate the for service within the council. Flexi-time is the most popular amount of training they are provided with, which they working arrangement employees apply for and about feel is exceptionally high compared to other organisations, two-thirds of the respondents have the possibility to work especially in a difficult economic climate. under a flexi-time arrangement. Other popular working arrangements include homeworking, shorter working weeks, ‘Yes, most of them [are right for their job], they’re quite annualised or compressed hours and term-time contracts. good. What we find though is that as technology moves on we need to keep up to date you know and as new things ‘The head-office-based staff, we try and fit in with what come out, in the IT world that’s very regular and so people people want. If they want to do a nine-day fortnight, we try need to be acquiring skills. So for us training is quite a critical and arrange that.’ Head of service thing.’ Service manager ‘I think generally we encourage flexible working. There’s ‘Training is offered, it must be one of the few organisations nothing about what I see that doesn’t realise that people that still places a great emphasis on training its employees need to be flexible.’ Manager because the first thing in a recession that goes is the training budget, isn’t it?’ Head of service ‘Flexible working arrangements for people who need it, they’re quite sympathetic to people’s needs.’ Manager ‘The training opportunities, I wouldn’t have got them anywhere else.’ Head of unit 14 CREATING AN ENGAGED WORKFORCE
  • 17. But also within the regular set of working hours, managers ‘I think a lot needs to be done on trust, working on trust. have some discretion to give employees some flexibility if In fact we had a conversation about that this morning at needed, which is also appreciated by the employees. one of the meetings we had, you know that there’s still huge amounts to do to actually empower and build the ‘If ever my son is ill and I ring up and say “look we’re taking self-esteem of the staff, you know it’s a uphill battle really him to the doctor,” I would never get a “well, that’s not and particularly when messages are coming out from the acceptable.” I’ve always, always had a positive response in leadership about, you know, flex systems, getting rid of that regard and I likewise would do the same with my staff.’ middle management, sloth, getting rid of sloth, you know, Manager so I think there’s messages that are not about trust.’ Policy manager ‘If they want to take some of their time owed, time in lieu I always try and help them, so I guess there’s flexibility there.’ APPRAISAL PROCESS Manager Although HR practices and policies are perceived well within LocalGov, the appraisal process is a concern throughout COMMUNICATION the organisation. Almost half of the respondents indicate There are many changes and restructuring initiatives that they are either dissatisfied or very dissatisfied with going on at LocalGov. In general, employees feel that their appraisal process. One of the major concerns is communication processes around these changes do not that objectives are often abstract and not broken down always function optimally. For example, a major change had adequately to the individual level. been reported in the media before the news of the change had been given to the workforce, so that the staff got their ‘The council has very aspirational, abstract objectives which information from a local newspaper. Employees indicate that I don’t really know what they mean. We’re going to have a they often were not informed thoroughly about the details “greener city”, well what does that mean? They’re sound- of the change and were only given information sporadically bites, they’re political sound-bites. From a practical point of instead of on a regular basis. Also, employees perceive view, to convert that into something that’s meaningful to communication as inconsistent across different teams the staff, that’s very difficult. So I think one big improvement depending on the level of information and communication would be to have clearer meaningful objectives set by the abilities of their respective line manager. council that can be more easily interpreted and adopted by, you know, as this thing cascades down. So that’s a practical ‘We’ve all had a briefing that explained why the restructure problem I find.’ Manager was taking place. The only problem is the length of time, I mean we’re talking about April and this was October time Managers are unhappy with the appraisal process as well. that this was communicated to us. And it’s a long time to They feel that it was too rigid and does not allow for enough have in the back of your mind – “what’s going to happen, flexibility. They also respond that they do not have enough what’s going to happen?”’ Team manager time to effectively conduct an appraisal with all team members. ‘So you’d report back and I know some managers just didn’t report back to their staff, didn’t tell them what was going on at ‘Performance management is not very successful because it’s all and didn’t make any attempt to interpret it.’ Unit manager very prescriptive at the moment, although again it’s going through a review at the moment so it may improve. But at Consequently, communication processes around the the moment it’s very prescriptive, you have to have done x, y, restructuring and downsizing of the workforce have a z by this time and if you haven’t there’s no leeway whereas somewhat negative effect on the relationship between everybody develops at different levels, at different speeds managers and employees. Trust between both has worsened and in different ways and if you could be more flexible in considerably following the changes, which impacts levels of the way that you can develop the members of staff then it engagement among the workforce. would be more effective.’ Team manager CREATING AN ENGAGED WORKFORCE 15
  • 18. ENGAGEMENT LEvELS ACROSS THE PUbLIC AND Although public organisations display higher levels of social PRIvATE SECTORS engagement than their private sector counterparts, this We now consider what our research can tell us about does not mean public organisations are all highly effective differences in engagement levels across public and private at socially engaging their staff. We saw instances of low organisations. Here we distinguish between engagement take-up of involvement initiatives among some employees ‘extent’ – the overall strength of experience – and engagement in both local and central government. In particular, ‘frequency’ – how often employees feel engaged at work. The managers reported that because of the permeability of some results suggest that public sector employees are slightly more government workplaces, employees had become apathetic engaged on the extent measure, with 72% being engaged to the influence of involvement initiatives. Organisations in compared with 69% in the private sector. However, the the public sector have more formal procedures for decision- difference is small. When looking at the frequency measure, making, and are less flexible and more risk-averse than their there is a more pronounced difference, with private sector private sector counterparts. Conversely, private organisations employees being engaged more often. Twenty per cent of are less likely to place significant emphasis on knowledge- private sector employees say they are engaged every day, and idea-sharing but, in the pockets where this is occurring, whereas 16% of public sector employees feel this way. We can it is often more successful due to the flexibility and control of look into these findings in more detail by considering how the senior managers. different dimensions of engagement – social, intellectual and affective – compare between the two sectors. The findings for affective engagement suggest that private sector employees are more strongly and more frequently Our findings for social engagement suggest that employees emotionally connected to their work. This finding may in public organisations experience a stronger connection stand in contrast to theoretical predictions of ‘public service to work colleagues and with more frequency than those motivation’ – the idea that public sector employees are in the private sector. For instance, public organisations are intrinsically motivated by a concern to serve public citizens. more likely to have cross-department meetings to discuss For example, we might expect the prime motivation for problems and potential solutions. Government organisations clinical staff working in the NHS to be the immediate at both local and central levels are keen to get teams and health needs of patients under their care. While public departments actively thinking about solving local problems sector employees do show a strong emotional attachment through improvement initiatives such as ‘lean’. to their work, private employees appear to experience a stronger connection. A possible explanation for this is One possible reason for this is the inherent ‘openness’ and again the competitive pressure of private sector working ‘permeability’ of public organisations. In contrast to private environments. Rather than through a concern for service organisations, where it is possible to create a relatively direct users, private sector employees must face constant pressures organisational hierarchy in which senior managers enjoy to survive economically in the marketplace, which can place considerable decision-making power, public organisations a psychological burden on them. We spoke to employees must keep their boundaries open to the scrutiny of politicians who felt a persistent emotional pressure to take work home and the public. We found that it is often the role of public because of work demands and the competitive culture of managers to promote organisational communication and their organisation. knowledge-sharing, frequently through the use of IT. Public organisations are increasingly looking to consult and involve Our interviews with staff suggested that workloads are their employees in a way that is enhancing the transparency of increasing in many areas of the public and private sectors, organisational processes. Furthermore, the interdependence of with particular strain being placed on first-line managers. many public organisations, such as civil service agencies, may The time-frame of our research has picked up the effects of create a need for public organisations to collaborate more the economic recession on employee experiences. This has than private organisations. Although there has been a move had a more immediate effect in the private sector over the towards targets, league tables and public ‘choice’ throughout last few years but is likely to have increasing ramifications for English public services in particular, there is significantly less public employees in the near future. competition than in the private sector, where companies compete for limited market share. 16 CREATING AN ENGAGED WORKFORCE
  • 19. The results suggest, on average, that public sector employees are more strongly and frequently intellectually engaged than private sector employees. This measure varies widely in both sectors depending on the type of work and the seniority of staff. Senior managers are almost always more intellectually engaged than junior staff. We found that employees in manufacturing and administrative roles are often the least engaged on the extent measure and that professional groups, such as hospital physiotherapists or accountants, tend to be more engaged. This research has suggested that employee experiences across public and private organisations are becoming increasingly alike. There are few consistent differences in engagement strategies and initiatives between the two sectors, and survey evidence shows that the overall engagement levels are comparable. If Wallace Sayre could comment today, he might argue that public and private organisations are becoming alike in all important respects. Nevertheless, we have found some differences in the dimensions of engagement. In particular, public organisations are more likely to engage their staff socially whereas private organisations provide an environment where employees are more likely to be emotionally engaged. In the next section, we explore the relationship between individual factors, such as age, gender, job status and contractual arrangements, and employee engagement. KEY FINDINGS • Many organisations measure engagement and have specific engagement strategies across the public and private sectors. • Public sector employees are more strongly but less frequently engaged than private sector employees. CREATING AN ENGAGED WORKFORCE 17
  • 20. CASE STUDY: GovDep GovDep is a large government department that covers GovDep joined the Kingston Business School Employee several customer-facing business areas. This case study is Engagement Consortium to help develop new initiatives based on one of the larger agencies within the department. around employee engagement as part of recent changes The agency has offices in various locations across England, in the agency. The department already has a policy on including the south-east, the midlands and the north. Core engagement and this research process is intended to feed values of the agency include ensuring an accurate, rapid and into that work. The engagement research was conducted in joined-up service based around customer need; improving two stages. First, a sample of 1,400 employees was invited value for money for the taxpayer; and reducing levels of to complete an online questionnaire. From this sample, service error. At the time of the survey, the agency employed 571 online questionnaires were returned, providing a total over 16,000 people and their services are used by around response rate of 41%. Second, 20 face-to-face interviews 15 million customers in the UK. were conducted with a range of managerial staff. The agency has recently undergone considerable change as a There are standardised management grades across the result of a merger between two previously separate business agency, including: Executive Officer (EO), which is the first units. This has led to a new management structure and management level responsible for teams of operational staff; around 1,000 job cuts. Like many areas of the civil service, Higher Executive Officer (HEO), which is the next level up there is an efficiency drive with overall reduction in financial from EO and has responsibility for groups of operations or allocation for the next three years. decision-making teams; Senior Executive Officer (SEO), which has responsibility for wider units of operation; and Grade 7, The department has been interested in employee which is a middle management grade. engagement for several years. This interest stems from a drive to renew employment practices and processes as ENGAGEMENT LEvELS part of a wider agenda of government modernisation. The The results of the survey suggest that GovDep has a generally agency now conducts an annual staff survey that feeds engaged workforce. Seventy per cent are ‘highly’ or ‘very highly’ into improvement activities and has an increased focus engaged overall. Twenty-nine per cent are moderate or unsure, on employee involvement initiatives. The majority of the while very few people had low levels of engagement. Findings agency’s employees work in an office environment. There with respect to engagement frequency are similar. Almost 70% is an emphasis on employee development, coaching and are engaged on a regular basis; however, 28% engage only teamwork. There is also careful attention paid to diversity once a month. These results may in part reflect the uncertainty and equal opportunities. Sickness absence rates have been at this time of change within the organisation. Early analysis of relatively high in the agency over recent years and a new the data from GovDep uncovered two main areas of strength performance standard for sickness has been put in place that contribute to engagement – work–life balance and a with the aim to reduce sickness absence to fewer than 8.3 supportive social environment – and two areas that could benefit average working days. from some attention to improve engagement – leadership development and employee involvement uptake. Figure 3: Extent and frequency of employee engagement at GovDep (%) 70 60 50 40 30 20 10 0 Very weak/ Weak/ Moderate/ Strong/ Very strong/ Never A few times a year Once a month Once a week Daily Overall engagement extent Overall engagement frequency 18 CREATING AN ENGAGED WORKFORCE
  • 21. WORK–LIFE bALANCE LEADERSHIP AND PERFORMANCE Work–life balance is a considerable strength in the MANAGEMENT organisation. This was praised by many managers and scored An issue of concern at GovDep is the way leadership highly in the employee survey. The flexi-time system is the capacity is developed. There is a feeling that often individuals jewel in the crown of employee practices at GovDep. Staff are promoted into EO or HEO positions without having the can accrue up to four days of flexi per month within the core set of management skills, particularly interpersonal and core hours of 7am–7pm. Interviewees felt that this is a main mentoring skills. attraction for staying at the organisation, particularly for people with family responsibilities such as childcare: ‘Give them the managers’ skills to manage people and make them people-focused, they need to be able to see that they ‘I think that’s one of the plusses really in the civil service, the can get more done by involving the staff…We do need work–life balance. The flexi is something that I think most technical experts but not in management. Look at what people would be lost without and that’s one of the things management training we’re actually giving to them, not this that maybe they look for from other things really, the flexi e-learning as it goes on.’ HEO and I mean I think it’s 37 hours a week we work, which is not that bad really and with flexi, that you can have flexi, A common concern is the type of training people were afternoons off, you know, a day off.’ EO given. GovDep makes use of ‘e-learning’ techniques for training where individuals can take a course on topics such Research participants report that the attention to work–life as coaching or appraisals from the comfort of their work balance meant that individual workers could create a work desks. However, this is seen as an ineffective way to learn pattern that was most appropriate to them. For example, new skills because it lacked people interaction and what one manager said that some staff prefer a late start, so they people called a ‘learning environment’. One manager work an 11am–7pm pattern, whereas others like getting in commented that you can put a sticker on your chair to show at 7am every day. people that you are training, but this does not take you out of the busy and distracting office environment. They SUPPORTIvE SOCIAL ENvIRONMENT reflected that it was very difficult to learn management skills Another main strength at GovDep is the level of social from the computer screen. The agency does provide other support in the working environment. If employees are types of training, including face-to-face classroom training, struggling with their workload, then their team members as part of an overall ‘blended learning’ approach. and immediate line manager will pick this up and try to provide them with the help needed to improve their A related problem is the lack of performance management confidence. skills at some management levels and the ability of managers to deal with underperformance. Although, as discussed ‘I mean most managers who I’ve worked for have been above, there are good levels of support within the office supportive. I think the support you get with regards to, sort environment, there is a reluctance or lack of ability to make of like, meeting targets and things…you know, I’ve worked difficult decisions and motivate consistent underperformers. a lot in the outside industry and I think as an employer, I can only think of one employer that was better than [GovDep].’ ‘So I don’t know whether or not even the team leaders have HEO – operations succumbed to the personality of the team members within the team and I suspect there’s a little bit of that because Most interviewees feel that there is a strong sense of there seems to be a lot of…rather than leading the team, teamwork in the organisation. However, there are some being part of the team, too many soft decisions are made to signs of change in this respect due to the job cuts across keep the peace.’ HEO the agency. With the threat that some people within teams will lose their jobs or be relocated, individual team members Some feel that this is symptomatic of the wider culture were behaving more competitively towards their colleagues within the agency of not dealing with poor performance. and not helping them out as much as they would normally. CREATING AN ENGAGED WORKFORCE 19
  • 22. ‘I think a small percentage of staff were moved and moved EMPLOYEE INvOLvEMENT and moved, moved on, moved on, moved on where they A further challenge for GovDep is encouraging the take-up should have addressed the problems. So they were moved of involvement and improvement initiatives. The majority of on because they weren’t doing very well in their previous managers feel that there are many opportunities for staff to role but then it still carried on? Yes, just being moved on.’ feed ideas to managers and share ideas among teams, most HEO commonly through team meetings. However, the take-up from staff, particularly at the lower levels, is not very strong. As the words from the HEO above suggest, there is a Some managers feel that the type of work many operational tendency at times to just move bad performers into other staff are undertaking means that they do not have time roles, thereby making it another manager’s problem without away from their usual routines to take part in improvement. tackling the underlying problems of the underperformance. This is also seen to occur in performance appraisals in the ‘I think to a certain degree people are just busy churning out past but was improving with the introduction of a new the work and there isn’t always the time to [come up with appraisal system. ideas]. I think you try to do that and certainly in our team we try to share ideas and have a regular team meeting with ‘What happened was that in previous years managers…it’s our manager, usually once every fortnight, where we all get easier for the manager to give people a higher box marking together and we put any items we want on the agenda and because it shuts them up really and therefore when this new often we have quite long discussions because we all have system came in a few years ago people who were getting different ideas and we try to come to a consensus.’ EO box ones and twos suddenly were down and the majority had three.’ EO ‘I would say my people have got opportunities; like it doesn’t stop, it’s continuous.’ HEO It is important to note that the issue of leadership development is not simply a problem with management ‘If you are asking me – do people naturally come up with practice but is also an issue of how willing staff are to suggestions and ideas to improve things – it’s a simple “no”. engage with development opportunities. In some areas, Team leaders do but the people on the teams don’t.’ HEO managers suggested there was an apathetic reaction, or even resistance, from staff towards taking on more One HEO talked about helping his or her staff with filling out responsibility and developing leadership skills. a suggestion form with ideas for improvement. However, there was some cynicism as to the extent to which these ‘Yet as a manager, trying to get my staff to take on improvement mechanisms really fed into the management development opportunities is like pulling teeth, they just decision-making chain. don’t want to do it, they just want to come in, do the job and go home. So I actually find [GovDep] quite frustrating ‘[The suggestion form] was a practical thing that she could with all the…I think they do too many staff surveys and do – [I said] “look, we can do it now, come on let’s get on we…not being funny but I think we mollycoddle the staff a with it and get it done” – and so that was great because it little bit.’ HEO made her feel involved and things. She probably hasn’t got a hope in hell of changing it really but you never know, but ‘When you work in an organisation and you ask [almost one she’s feeling that she’s contributing.’ HEO hundred] people “does anybody want to team lead” and none of them says “yes”, that says a lot, doesn’t it?’ HEO A final opportunity for improvement is around cross- functional working. Several senior managers feel that there is scope for more learning across business units, both within the agency and more widely across the government department. For example, one manager had the ideas that groups could meet every quarter based on geographical area to discuss changes and ideas for improvement. 20 CREATING AN ENGAGED WORKFORCE
  • 23. 5 Engaging different employees Through our data we were able to explore whether there ‘Yeah, too routine, they’ve been doing it for years. I would are any differences between the engagement levels of be very surprised if you found they were satisfied, I’d say various employee groups. First, we considered demographic they were not satisfied. The only thing that keeps them is variables. probably the money. That’s not being cynical but the jobs are quite well paid and that’s why a lot of them are still here.’ We found some interesting variations. For instance, we Manager, public sector, speaking of their direct reports discovered that women are significantly more engaged overall than men: while 74% of women report being ‘Working here? It’s very varied. I like that with the moderately engaged and 9% strongly engaged, 68% department and it’s busy, you know, I mean I’m never going of men are moderately engaged and 7% strongly to be bored, ever, which is great, I like that aspect of it.’ engaged. This reflects the findings of our previous report Manager, public sector, speaking of their own job (Truss et al 2006). Employees on flexible contracts emerge as being more In terms of caring responsibilities, it was interesting to note engaged than others in terms of both extent and that employees with dependent children report significantly frequency of engagement. Again, these findings broadly higher levels of engagement than those without. Eighty per reflect those from our previous report (Truss et al 2006). cent of people with children report being moderately or However, tensions can arise within flexible roles as people strongly engaged, compared with 77% of others. sometimes struggle to manage a heavy workload within restricted hours: We also explore the link between age and engagement. Younger people below the age of 25 are significantly ‘I filled out a job satisfaction survey this morning and I think less engaged in terms of both extent and frequency of I would have scored – oh my god, why are you working at engagement. This corroborates the findings of our earlier all?…ask me when everybody is back at work and I’m not research (Truss et al 2006). covering for people. There are a few weeks when I think – yup, I can cope with this, and there are other weeks when I Next, we explored associations between working patterns think – oh my god, I’m glad I’m only job-share – but I think and engagement. Full-time employees are significantly more that might be part of my problem...I try not to take work engaged with their work than part-timers in terms of both home, I did it this week.’ Manager, public sector extent of engagement and frequency. Those on permanent contracts are similarly significantly more engaged (78%) Generally, however, we found that senior managers than temporary workers (74%). The quote below illustrates appreciate the importance of work–life balance and flexibility the destabilising impact that temporary contracts and and try to set a personal example for their staff: continuous change can have on employees: ‘I think over the years I’ve toned the number of hours down. ‘[The frequent change] feeds people’s cynicism about when I think it’s important for people like myself to set an example the organisation has changed like – we’ve done this before, there, and as I say, I try to influence others and I feel that if we’ve had this, we’ve had that, we’ve had the other – and I they’re going…or they’re travelling, they’re coming to work think it would help if it [the change programme] was sort of and they’re travelling at night, and I say, “oh no, you’re not longer term.’ Manager, public sector doing that.”’ Senior manager, construction Managers are significantly more engaged than non- Looking broadly at our data on individual differences managers and, in general, we found that those in and engagement, it seems that there is a link between professional or managerial roles are the most engaged. job type and engagement. Younger workers typically While 88% of managers report being moderately or strongly have less interesting and involving work to do than their engaged, this is true for 71% of others. The quote below older counterparts, which may explain their lower levels illustrates the way that job content may impact on people’s of engagement overall. Similarly, managers may be attitudes towards their work: more involved in decision-making processes within their organisations and experience greater autonomy than non- CREATING AN ENGAGED WORKFORCE 21
  • 24. managers, which may explain why their engagement levels are significantly higher. It is difficult to explain why women are more engaged in their work than men. Further research is needed to explore these issues in more depth. In the next section, we consider which managerial strategies have the most impact on levels of engagement. KEY FINDINGS • Women are more engaged than men. • Younger workers are less engaged than older workers. • Those on flexible contracts are more engaged. • Managers are more engaged than non-managers. 22 CREATING AN ENGAGED WORKFORCE
  • 25. 6 Strategies for engagement Previous research has identified a range of workplace ‘I am providing an essential service for several hundred strategies that impact upon levels of engagement. We ran thousand people, in fact probably for half a million statistical tests to find out whether we could see a similar people. So in that context, my job is very meaningful in pattern across our organisations and analysed the associations terms of my customers, my client. I provide a meaningful between meaningfulness, perceptions of managers, employee service to them. And I think it carries with it a social and involvement, HR practices and engagement. environmental and corporate responsibility which makes it meaningful as well.’ Manager, EnvironmentCo MEANINGFULNESS The extent to which employees find meaning in their work The above quotation shows that where people can see the has a substantial impact on how they feel about their impact of their work on other people or society in general working life in general. Employees who believe that their then their jobs are seen as more meaningful. work is important and that they can make a difference have much more positive perceptions about their work and their The nature of the organisation might facilitate this process work environment. Previous studies have demonstrated and help employees find their jobs meaningful. Traditionally, the positive impact of meaningfulness on employee public sector employees have been regarded as having engagement (Cohen 2008, Kahn 1990, May et al 2004). a distinctive work ethos that stands in contrast to the The data in our study largely confirm these findings by profit motive of private organisations. Our analysis shows demonstrating that having a meaningful job is the most that individuals working for public sector organisations important factor influencing levels of engagement. This is find greater meaning in their jobs, compared with their true for all types of worker in all kinds of jobs. counterparts in the private sector. Our study demonstrates that about two-thirds of all ‘Local authorities are not in the game that people are respondents find meaning in their work, compared with 8% running off doing all sorts of things on their own. The work who do not find their job personally meaningful. Employees has to have some meaning and some purpose, it can’t be who are able to relate their tasks to a broader context and just somebody “Oh I fancy doing this task this week.” feel that they can make a difference have higher levels of We’re in the wrong job for that kind of thing.’ motivation and are more likely to be engaged. Team manager, LocalGov Figure 4: Meaningfulness (%) 70 60 50 40 30 20 10 0 Very low Low Moderate High Very high CREATING AN ENGAGED WORKFORCE 23
  • 26. Moreover, meaningfulness is largely attached to the type of work individuals are asked to carry out in an organisation. Our analysis reveals that managers find it easier to see the importance of their work compared with non-managers; and professionals and senior line managers perceive their jobs to be highly important, whereas process, plant and machine operators and other low-skilled workers less frequently relate to their jobs on a personal level. Besides these contextual factors, managers are essential in helping individuals find meaning in their work. One way to facilitate this is through regular communication about the organisation’s vision and future objectives. Creating a common framework helps employees to see a bigger picture in their daily work. Moreover, managers play a crucial role in designing jobs in such a way that individuals are enabled to experience positive feelings during their work. Job enrichment is just one of the effective techniques that enable organisations to create meaningful jobs, even for more routine tasks. However, independently from the type of work, it is important to match people to their jobs according to their qualifications and skill levels to raise their level of engagement. KEY FINDING • Meaningfulness is the most important driver of engagement for all employee groups. 24 CREATING AN ENGAGED WORKFORCE
  • 27. CASE STUDY: ScienceCo As a public sector organisation, ScienceCo is an important As part of its changing careers initiative, the HR department supplier of scientific information in the UK. More than 700 aims to develop a range of new HR practices and policies. employees are employed at ScienceCo, a large proportion of Employee engagement provides the company with a whom are scientists researching topics such as sustainable framework to integrate these policies and evaluate their use of natural resources, impact of environmental change effect on ScienceCo employees. The participants in our and spatial modelling. ScienceCo is partially funded by the study were 798 employees working for ScienceCo. All Government but also receives income through commissioned employees were invited to complete an online questionnaire research from the private and public sectors. ScienceCo is survey. From this sample, 240 questionnaires were returned, currently undergoing a period of considerable change. For providing a total response rate of 30%. Additionally, the previous decades, ScienceCo had experienced a very two face-to-face interviews were conducted with senior stable workforce that effectively met its needs. Typically, managers working for ScienceCo. employees would join the company as graduates and stay with ScienceCo for a long time. Turnover rates were very low ENGAGEMENT LEvELS and many employees were given opportunities for training The overall results reveal that employees at ScienceCo that meant they were able to meet business needs whenever demonstrate particularly high levels of engagement. ScienceCo had to move into a different area of research. Seventy-seven per cent of all respondents are strongly engaged overall and an additional 8% report being very Changes in the economic climate and demands from strongly engaged. The values for the frequency dimensions major stakeholders prompted the HR department within are slightly lower, with 65% indicating that they are engaged ScienceCo to launch new initiatives that encouraged a once a week and 6% on a daily basis. However, 26% say different career pattern to move towards a more dynamic they are engaged once a month only. workforce. Instead of hiring employees for a lifetime, ScienceCo now aims to attract an increasing number of Employees score very high on affective engagement, with graduates and postgraduates who want to be part of the 40% indicating that they are very frequently engaged on this organisation for three to five years, then go away to work dimension. for a different organisation and then maybe come back when they have developed other skills: ‘The career path that ‘On the scientific side it is very much the case that they live we are describing for the future is more come to us, learn and breathe it, so it’s not just a job, it’s a major part of life.’ some things, gain some skills, go somewhere else, move on Manager and maybe rejoin us later in your career as a senior leading scientist.’ HR manager Figure 5: Extent and frequency of employee engagement at ScienceCo (%) 80 70 60 50 40 30 20 10 0 Very weak/ Weak/ Moderate/ Strong/ Very strong/ Never A few times a year Once a month Once a week Daily Overall engagement extent Overall engagement frequency CREATING AN ENGAGED WORKFORCE 25
  • 28. ‘I think the scientists are absorbed in what they’re doing and HR PRACTICES greatly dislike anything that stops them being absorbed in An important area of improvement within ScienceCo is the it.’ Manager sophistication of HR practices and policies. A considerable number of respondents indicate that they are dissatisfied Levels of intellectual engagement are also very convincing. with HR practices and policies and the majority group is The majority of participants (66%) feel ‘strongly’ engaged moderate on this aspect. When analysing each HR practice on this measure and most employees think about ways to separately, our study finds that employees are highly satisfied improve their job at least on a weekly basis. with their training and development opportunities and also feel that they have a high level of job security. However, In the following sections we will consider factors that are employees rate career management and opportunities for associated with engagement. We will point out a major promotions more negatively and are especially dissatisfied strength at ScienceCo, meaningfulness of work, but also with the appraisal system. They also feel that the rewards talk about important aspects that could be improved to raise they receive are not related to their performance at work. engagement levels with the organisation, HR practices and attitudes towards managers. Furthermore, we analyse two Although our research study overall indicates that HR challenges at ScienceCo: person–job fit and organisational practices are not directly associated with engagement, advocacy. Challenges are aspects related to engagement, HR practices influence levels of engagement indirectly via where employees currently score very highly, but that are management behaviour and a supportive work environment. likely to be subject to change in the near future. Improving the above-mentioned practices could therefore help to further increase engagement levels at ScienceCo. MEANINGFULNESS A major strength within ScienceCo is the value employees ATTITUDES TOWARDS MANAGERS place on their work. Almost four-fifths of the respondents The relationship between management and employees is a indicate that they find their work meaningful. A lot of this very important aspect of an individual’s working experience comes down to the nature of the job many employees carry and it directly impacts upon engagement levels across out at ScienceCo. A large proportion of the workforce is the workforce. Assessing employees’ perceptions of their employed as scientists who do research on environmental line and senior management is a good indicator of this subjects, and many find that the work they do in their jobs is relationship. To get a detailed picture of the dynamics worthwhile. A vast majority of respondents also indicate that underlying the relations between managers and employees, their job activities are personally meaningful and significant we measured three different scales. The line management to them. These results are reflected in the interviews, with scale encompassed questions concerning communication, managers pointing out that for some employees work is fair and respectful relationships and whether line managers their hobby. listened to employees’ ideas and suggestions. Additionally, two separate sets of questions were asked for perceptions ‘You know for many of our employees, if they weren’t being of the senior management: first, communication and vision, paid to do their work here it would be their hobby. They are that is, how employees rate communication from their absolutely involved in the study of their respective subjects. senior managers and feel that they are listened to; second, It’s their life.’ Manager overall effectiveness, that is, the degree to which employees feel that their senior managers have an effective and fair ‘We are an organisation that’s involved in environmental management style. research and anyone who is working for us is passionate about the life of the planet and the state of the planet. They At ScienceCo, 69% of respondents perceive their line are keen to pursue whatever end necessary to advance the management in a positive or very positive way. In contrast cause.’ Manager only 5% express negative or very negative perceptions of their line managers, and 26% are unsure about how to rate their line management. The scores drop significantly when respondents were asked to rate their senior management and a considerable portion of the respondents, one-third, 26 CREATING AN ENGAGED WORKFORCE
  • 29. Figure 6: Attitudes towards managers at ScienceCo (%) Senior management 3 26 51 17 3 communication and vision Senior management effectiveness 3 26 49 20 2 1 Line management 4 26 54 15 0 10 20 30 40 50 60 70 80 90 100 Very negative Negative Neither/Nor Positive Very positive judge senior management communication and overall ORGANISATIONAL ADvOCACY effectiveness negatively. The vast majority of respondents Employees at ScienceCo demonstrate very high levels of are unsure about their senior management and only about organisational advocacy. Almost 90% of respondents would a fifth feel positive about the way senior management recommend ScienceCo as a good place to work to family communicate and work. The results indicate that there and friends. This compares with a small minority who would is room for improvement regarding senior management not want to recommend ScienceCo to friends and family. behaviour and visibility, which might also help to further Following from this positive finding it is not surprising that increase engagement levels at ScienceCo. many employees have been working at ScienceCo for a very long time and turnover rates are generally very low. PERSON–JOb FIT A major strength within ScienceCo is the extent to which ‘It is a low turnover rate. We’ve looked at this fairly recently employees feel that their skills are a good match with their and certainly over the past 10 or 15 years the turnover jobs. Person–job fit has been identified in previous research rate has been in the order of 4% or 5%. This last year, it’s as one of the important factors impacting upon levels of actually been 2%.’ Manager engagement. At ScienceCo almost 85% of respondents feel that their job is right for them compared with only 2% ‘We certainly have a very large number of over-50-year-old who indicate a low fit between the job they were asked to employees. That follows on from a lot of recruitment in the carry out and their skills. More than four-fifths say that their mid to late 1970s, and many of those employees are still abilities fit well with the demands of their jobs and a similar with us.’ Manager number of respondents feel that their personality is a good match for their job. As can be seen from these findings, employees at ScienceCo demonstrate exceptionally high levels of loyalty, which clearly This excellent feedback from ScienceCo employees is likely contribute to the positive engagement levels. However, similar to change due to the changes in career management to the positive findings on person–job fit, changes are likely to approach described above. The decision to move towards occur with respect to high tenure and low turnover rates with a more dynamic workforce has major implications for the ScienceCo introducing its dynamic workforce concept. organisation, which have to be managed and evaluated carefully. We would like to thank Jasleen Lonial for her help in collecting the data upon which this case study is based. CREATING AN ENGAGED WORKFORCE 27
  • 30. MANAGEMENT AND LEADERSHIP APPROACHES respondents rate their line management positively, compared There is considerable evidence from prior research that with 15% who have a more negative view of their line perceptions of managerial processes impact on engagement managers. Our study further reveals that positive perceptions (De Mello e Souza Wildermuth and Pauken 2008). of line managers were associated significantly with extent Evidence suggests that employees’ level of engagement of employee engagement. This result indicates that line and other work responses are affected by their perceptions managers may have a significant role to play in raising levels of management style. For example, opportunities for of engagement. upward feedback increase engagement through greater participation, which, in turn, relates to greater understanding ‘My perception of what’s actually wrong with this of wider organisational issues as well as personal organisation is that we have a lot of very good people who involvement (Robinson et al 2004). The belief that managers are not good people managers. The problem this creates is are interested in employee well-being is also relevant since that people at the bottom, who probably have most of the perceived reciprocation of effort is an important motivator of ideas, can’t communicate those upwards because the people engagement and related behaviours. Effective leadership also in the middle over-filter or don’t bother at all.’ encompasses individual-level feedback, which can increase Accountant, PlasticCo both engagement and performance (Alimo-Metcalfe and Alban-Metcalfe 2006). Relating to the quotation above, we identified several aspects of the line manager’s role that can enhance In our study, we asked employees to rate their line and employee engagement. Starting with recruitment and senior managers. For senior management, we focused on selection, line managers need to ensure that the right people effectiveness and asked respondents to rate the degree to are placed in jobs that are appropriate for their skills and which employees feel that their senior managers have an abilities. Line managers need to communicate goals and effective and fair management style. Questions about line objectives clearly, so that employees can focus their effort managers focused on communication, fairness and trust. and engagement on specific tasks. These objectives can encompass helping employees to see how their role fits with, PERCEPTIONS OF LINE MANAGERS and contributes to, the bigger picture of the organisational Line managers have a critical role to play since they are the strategy. Finally, there needs to be a clear cycle of reciprocity interface between employees and senior managers. This is where effort, engagement and reward are mutually positive particularly important in large organisations where there is and reinforcing. This cycle should include opportunities for typically little contact between the senior management team development and promotion so employees can see their and employees. Our data show that 56% of our future trajectory within their organisation. Figure 7: Management perceptions (%) Line management 4 11 29 46 10 Senior management 8 20 40 29 3 effectiveness 0 10 20 30 40 50 60 70 80 90 100 Very negative Negative Neither/Nor Positive Very positive 28 CREATING AN ENGAGED WORKFORCE
  • 31. PERCEPTIONS OF SENIOR MANAGERS AND perceptions of managers alongside a generally much more EMPLOYEE ENGAGEMENT positive perspective could encourage employees to work Respondents in our study rate senior management lower harder, become more engaged and see a range of benefits of than their line managers. Only about a third believe that their doing so. These employees might seek managerial positions senior managers are effective leaders and the majority, 40%, themselves, and such ambitions can be positive for the are unsure about how to evaluate their senior managers. individuals as well as the wider organisation. However, the Questions included items such as ‘senior managers treat general recommendation is that positive attitudes towards employees with respect’, and ‘senior managers are fair in managers are important to achieve, and more likely to have their treatment of me’. considerable and broad benefits than the specific influences that some negative perceptions might have. We would not In the questionnaire surveys across the eight organisations we wish to suggest that senior managers should actively seek included the open-ended question: ‘What is the one thing out negative views from their employees! In contrast with which would improve your working life?’ Many employees the findings on senior management effectiveness, our scale commented about their senior managers. Example comments capturing communication between senior managers and are listed below: employees, visibility and senior managers’ vision for their organisation is positively related to engagement; in fact, this • more open and effective communications from senior emerged as the third most significant driver of high levels of management engagement. • improve information-sharing within the organisation, especially from senior management to lower levels Senior managers have a significant role in creating an optimal within the organisation working environment and helping line managers to achieve • better communications all round would be a vast this for their employees. Two critical components are the improvement on how things are at present, especially design of jobs and the organisation of work. As noted above, between line workers and senior management. people need to be in the right jobs with appropriate targets to channel their engagement. The corollary is that the jobs must The evidence from earlier studies reviewed above, as well be designed to ensure that they have appropriate breadth and as our own research, shows that positive perceptions of line depth. Where jobs are limited, such as production line tasks, managers have a positive impact on engagement. Our data then jobs can be enriched through additional responsibilities. regarding perceptions of senior managers and, specifically, Such job enrichment leads to a range of positive outcomes their effectiveness, reveal a different pattern. We found that such as enhanced performance, reduced turnover and perceptions of senior managers’ effectiveness are negatively increased engagement (Parker et al 2006). associated with engagement. That is, low ratings of senior managers’ effectiveness are associated with high levels of employee engagement. At first glance, this might appear to be a counterintuitive result. Certainly, it does not fit with our KEY FINDINGS general pattern of positive relationships between perceptions • Senior management effectiveness is negatively related of work and engagement. Yet, there are some similar to employee engagement. findings in other studies. For example, some research has • Senior management vision and communication is a key suggested that a moderate level of dissatisfaction could be driver of engagement. a powerful motivator (Frese 2008). It is possible that a small • Positive perceptions of line managers are strongly degree of negative responses to work could have a role in linked with engagement. driving need for change. In this case, having some negative CREATING AN ENGAGED WORKFORCE 29
  • 32. CASE STUDY: PlasticCo PlasticCo is a leading plastics manufacturer producing Considering the challenges in the manufacturing setting and blow-moulded plastic bottles for the UK food and drink traditional management approach at the company, it was a industry. The company grew in the 1990s from the merger bold move from the senior managers to attempt to change between several medium-sized manufacturing businesses. towards a more participative approach. One of the first steps The company operates from eight sites across the UK and the managing director took was to create an ‘Employee has a turnover in excess of £100 million. It currently has Engagement Steering Group’ involving key managers from a workforce of around 650 employees and is part of a across the organisation. A leadership and development multinational packaging group of companies. manager was also appointed with the specific role of increasing the engagement of the workforce. The incumbent The leadership style at PlasticCo has traditionally been to this role described the company as being at a crossroads: described as ‘top–down’ with an autocratic approach ‘we either go on as before, or we take some risks, involve to problem-solving. However, recent changes in senior and let go gradually.’ She also stressed that the change is management have led to a new strategic direction for ‘not about driving employees to work harder, but about the company. A new managing director was appointed providing the conditions under which they will work smarter in 2007, bringing a more participative vision. With full and to offer their opinions, ideas and solutions to problems board support, a business case was made for a three-year that they encounter.’ transition towards an involvement-orientated culture. At the heart of this approach are people development, teamwork, Demonstrating the new participative approach, all PlasticCo communication and a more open leadership style. The employees were included in the employee engagement new management team made clear that the company was questionnaire conducted for this project. A total of 650 profitable and performing well and that the change was questionnaires were distributed and 484 were returned, part of a new strategy of continuous improvement towards providing a high response rate of 75%. Thirty-four greater performance. PlasticCo joined the Kingston Business interviews were also conducted with managers from various School Employee Engagement Consortium at the start of departments and levels. Finally, two focus groups were held this transition to help assess the levels of engagement in the with 11 shop-floor workers across the sites. Employees were company and identify potential avenues for improvement. given paid time on their shift to complete the questionnaire, and help was offered to employees for whom English was The majority of PlasticCo employees work within the not a first language. bottle-producing factories operating the blow-moulding machinery. There are head office functions such as ENGAGEMENT LEvELS personnel, managerial and administrative roles outside of The results of the survey suggest that at the start of the the factory, but these are relatively small in number. The change process the company had a generally ‘high’ level factory work setting presents many challenges for managers of engagement in the workforce, with 60% of employees trying to increase employee engagement. Many of the jobs in this category. However, only 7% of employees were require a relatively low level of skill and are repetitive, with ‘very’ engaged and 3% had a ‘low’ level of engagement. tasks including transporting materials around the factory This outcome was not a huge surprise for the senior and operating particular parts of the machinery. Employees management team but gave a measure of the work that generally have few qualifications. A further challenge is the was needed to create a highly engaged workforce. Levels shift pattern on which the factory process is based. Around of engagement frequency were slightly higher. Forty-nine 80% of factory employees work a strict 12-hour shift per cent of the respondents indicated that they are engaged pattern, with four days on followed by four days off. Shifts once a week and another 26% are engaged on a daily basis. either run through the day (8am–8pm) or night (8pm–8am). In contrast, 7% said they are rarely engaged. The production process runs 24 hours a day, 365 days a year, including all bank holidays and Christmas Day. Employees have to adjust their home lives to the system and adapt to unsociable working hours. A further potential challenge is the factory working environment, which is noisy and hot. 30 CREATING AN ENGAGED WORKFORCE
  • 33. Figure 8: Extent and frequency of employee engagement at PlasticCo (%) 70 60 50 40 30 20 10 0 Very weak/ Weak/ Moderate/ Strong/ Very strong/ Never A few times a year Once a month Once a week Daily Overall engagement extent Overall engagement frequency Analysis of the data from PlasticCo uncovered three main ‘Very little at the moment, very little I would think. As far areas that need addressing to improve engagement – as people actively talking about [ways to improve their job] decision-making, people management and organisational instead of talking about the weather or the traffic or the advocacy. newspaper or TV, do they then say “how can I do my job better?” I doubt it.’ Senior manager DECISION-MAKING A common problem identified by managers across the Perhaps the biggest opportunity for the future at PlasticCo organisation was that problem-solving tended to be was the survey finding that employees really care about their ‘reactive’ rather than ‘proactive’. In practice, this meant there work and want to do a good job. However, because in the was little effort to come up with ideas for improvement, but past they were given little opportunity to contribute to the rather issues were resolved only when problems arose. A improvement of work processes, their interest had gradually plant manager summarised this: declined: ‘I think it’s probably more based around problems rather ‘I do realise working in places that you are just a number... than them sitting around and asking how am I going to if they didn’t need you, you wouldn’t be here. I do feel as improve my job? It’s very much if there’s an issue – how can well, when I’m in my job I give it 110% but I used to give it we improve it? So I think it’s more reactive problem-solving.’ 130%.’ Shift manager Plant manager To respond to these considerable barriers to engagement, This problem linked into how decisions were made more the recently established employee engagement steering generally in the factories. Control and responsibility tended group introduced a number of measures to increase to be concentrated with a few managers who made changes employee involvement and a more participative decision- on an ad hoc basis. There was very little encouragement making process. First, an initiative was set up that would from managers for shift workers to become involved in allow all employees to feed back their views and ideas decision-making. With little chance of influencing decisions, directly to the managing director. In break periods, the workers tended to ignore issues unless they were told managing director invited the employees from each team directly by managers about them. This problem was picked and shift to meet with him and ‘challenge’ him. This was up by one senior manager who reflected on the level of a strong signal of change to the workforce and produced involvement in the factories: some early enthusiasm from employees. A second initiative also showing new commitment to listening to employee CREATING AN ENGAGED WORKFORCE 31
  • 34. views was being involved in the Kingston Business School To attempt to overcome the problems of people Employee Engagement Consortium and survey. After management, senior managers at PlasticCo introduced some receiving the results, the leadership and development new initiatives for managers to think about their style and manager visited all factory sites to report back the results start to develop new ways of working. Management groups direct to staff. A third initiative in the area of decision- were set up to identify areas of skills shortage and staff making was to set up cross-functional problem-solving development needs. Formal HR practices, such as appraisals groups that would meet periodically to discuss ideas for and training, were discussed as important avenues for the improvement. future. PEOPLE MANAGEMENT STYLE Following the results from the engagement survey, The management style at PlasticCo was traditionally left to PlasticCo made a conscious effort to improve relationships the proclivities of individual managers. In most factories, the between employees and managers within the company. A leadership style was described as performance-focused and, performance review process was introduced to encourage in some, the culture was seen as ‘hard-nosed’, to quote one employees to talk to their line managers about their day- manager. In essence, little attention had been paid to people to-day targets, personal objectives and development plans management in the past. Before the strategic redirection, as well as their career aspirations. A new task set for line there were few HR practices in place. Training was limited managers was to engage with their team members to find and there was little emphasis on teamwork. out each individual’s motivator and to ensure that they stayed committed to PlasticCo. When comparing the employee engagement levels against the performance of the factories, there is generally a positive Many of the line managers that were interviewed for the correlation between engagement and performance. It is research said how they thrive on the challenge of their work: interesting to note that factories tend to perform well or badly across all employee attitudes. The most surprising ‘I enjoy the role. I think there’s a challenge of something result comes from one factory that is performing very well different every day. There are things that you get frustrated by many measures, including productivity, efficiency and with but I enjoy it. I’m still motivated for it, I’m determined unplanned downtime. However, workers in the factory are for the site to get better so for me personally I find it quite a amongst the least engaged from the employee sample. challenging role and an enjoyable role.’ Plant manager This clearly contradicts the idea that engagement and high performance are always related. An important piece An important consideration for shaping people management of information that may help to explain this is that the in PlasticCo is to be realistic about the scope for new ways of factory was recently reconfigured with new machinery that working. The nature of manufacturing work often leads to increased automation of the production process. While highly automated, repetitive tasks and a clear performance management saw this as an excellent investment, shift focus on efficiency and productivity. For example, some of workers were less satisfied with the change because they the lowest-skilled job roles are seen as too restrictive to be saw this as another snub of them and their interests. They able to foster job satisfaction and engagement by managers. felt that all management attention was put into improving Conversely, we might argue that because there is a highly the production process with no investment in the people. mechanised work environment, it is more important for It only reduced the opportunities to contribute to the managers to make a concerted effort to consider their improvement of the production process. The plant manager team’s needs because these do not flow naturally from work admitted: processes. A key challenge for the senior management team is to explore how people management and development can ‘All the sites were very much driven on running better, become a key focus for first-line managers at PlasticCo. running lean, running light, we’re all very focused on that and I think maybe sometimes we forget the people side of things.’ Plant manager 32 CREATING AN ENGAGED WORKFORCE
  • 35. ORGANISATIONAL ADvOCACY EvOLUTION OF A NEW CULTURE A final area that needs careful attention at PlasticCo is There have been some recent changes at PlasticCo with the findings of very low levels of employee advocacy for the aim of improving communication and advocacy. An the organisation. Most employees said they would not experienced learning and development professional has been recommend the company as an employer to their friends and hired and promoted to director within 12 months. Moreover, family. Improving decision-making and people management a new HR strategy has been implemented focusing on the style will be two clear avenues for improving advocacy. key aspects of attraction, development, retention, and Another suggestion is to put more effort into celebrating reward and recognition. what the organisation already does well. One such area mentioned during interviews was opportunities for career One group of employees had taken responsibility for a two- development and promotion within the business. There was day recruitment event that they ran without the involvement recognition that, if employees wanted to stand out and of HR or senior managers and that had been a huge work hard, their efforts would be recognised and there were success. This gave shift workers the chance to talk about opportunities for promotion: what they liked about their jobs and promote this to the public. A company magazine had also been introduced to ‘I started 15 years ago driving a forklift. So I can see that it’s communicate news and celebrate success in the organisation a very encouraging business for people, developing people – feeding into a more positive work climate. and I’m a prime example. I’ve obviously got through various roles within our business to get to a senior management Much emphasis has been put on leadership development. position.’ Senior manager A programme has been initiated to identify and develop high-performing leaders across the business. All these changes contributed to the evolution of a new culture within PlasticCo and first results from the company’s management survey indicate an increase in levels of engagement across PlasticCo’s workforce. CREATING AN ENGAGED WORKFORCE 33
  • 36. EMPLOYEE vOICE, INvOLvEMENT AND Fundamental to the concept of employee engagement is COMMUNICATION the idea that all employees can make a contribution to the In terms of the key levers that managers can activate to successful functioning and continuous improvement of raise levels of engagement, our research indicates the organisational processes. Clearly, employee involvement importance of providing meaningful work, as well as mechanisms are central to this endeavour. Our study leadership. The third key driver that emerges in our study considered the extent to which employees participate in is effective employee voice, in other words, opportunities decisions that directly affect their job and attend meetings for employees to input into decisions affecting their work where they can make suggestions related to their work. As and their organisations, and to be properly consulted and our data reveal, about two-fifths feel that they are highly or communicated with over workplace issues that affect very highly involved in decisions that affect their job; however, them. Our data suggest that employee involvement and the majority of respondents only feel moderately involved. A management communication have a positive association considerable number, one-fifth, indicate that they do not get with both the extent and frequency of engagement. involved in work-related matters on a regular basis. In recent years, there has been a renewed interest in We can further illustrate these data by three particular various forms of employee voice, and it is often argued that case studies – PlasticCo, ConstructionCo and NorthTrust employee involvement and communication are linked with – all of which have made efforts to improve the extent benefits such as lower absenteeism, fewer exits and higher of communication and involvement but face different levels of commitment, efficiency and performance. Research challenges in ensuring that these efforts are reflected in suggests that so-called high-involvement work practices can heightened levels of engagement. develop the positive beliefs and attitudes associated with employee engagement and that these practices can generate At PlasticCo shift workers have historically had little the kinds of discretionary behaviours that lead to enhanced encouragement from managers to become involved in performance (Konrad 2006). Work by the Institute of decision-making, and problem-solving has tended to be Employment Studies also points to a ‘sense of feeling valued reactive rather than proactive. However, a management and involved’ as a major driver of engagement (Robinson team traditionally perceived as having an autocratic and et al 2004). Similarly, while Purcell et al (2003) found a hard-nosed leadership style is now committed to developing number of factors to be strongly associated with high levels a more participative organisational culture. The results of employee engagement, the one thing all of these factors suggest there are a significant number of employees who had in common was that they were connected with an feel moderately involved, but there are also a good number employee’s involvement in a practice related to their work. who are unsure, or feel that they are not particularly involved Figure 9: Involvement (%) 70 60 50 40 30 20 10 0 Very low Low Moderate High Very high 34 CREATING AN ENGAGED WORKFORCE
  • 37. in managerial processes. The factory work setting, shift However, there were issues raised about communication patterns and lack of training opportunities present severe at NorthTrust. A number of matrons said that they feel challenges. Given the initiatives that are being put in place, it senior managers sometimes send out a negative message, is likely that engagement levels will rise over coming months. particularly around infection control and targets, while others think key operational issues are not effectively ConstructionCo is a relatively young company with a strong communicated: entrepreneurial culture, and this context feeds into positive employee experiences, creating a dynamic and intellectually ‘My biggest beef with [NorthTrust] is the lack of downward challenging work climate. There are several ways in which flow of information. I hear from a lot of other managers ConstructionCo is attempting to involve employees. around the Trust…[saying] we get a team briefing and we These include: annual communication, ‘Good to Great’ get [NorthTrust] News, but the actual nitty-gritty of what workshops, a regularly updated intranet, staff surveys, team is going on doesn’t always filter down.’ Middle manager, meetings and suggestion schemes. Some employees are NorthTrust very positive about these, but others see the situation as letting ‘a thousand flowers bloom’ with little clarity over In summary, involvement initiatives have been met with a which initiatives are most important or useful. Linked to mixed response by employees. Across the organisation, there this, an area that is acknowledged as needing attention is is concern with the kind of messages that senior managers the extent of collaborative idea-sharing. The company is are sending to staff as these are sometimes perceived forward-looking, but sometimes this means that teams and as being negative. The trust is already in the process of departments do not share knowledge and ideas about how creating a new post of Director of Communications. Their things are working and how they might be improved. As one main role will be to redesign communication channels, manager noted: encompassing top–down communications, news, electronic communication, idea-sharing, continuous improvement ‘There’s a real apathy for collaboration, for sharing, for and emergency planning. This is a very positive initiative knowledge transfer. It’s a shame because that’s what the in response to employee feedback that is likely to yield business is about.’ Senior manager, ConstructionCo significant benefits in terms of raising levels of engagement. So there are various involvement initiatives in the It is also notable that at both of the unionised organisations organisation for staff to interact with managers but, in (PlasticCo and NorthTrust), employees generally feel that some respects, these are not strategically coherent or widely the union is successful in representing employee interests understood. and this is also associated with higher levels of engagement. Clearly, the goal of improving and increasing employee At NorthTrust, the HR department has developed a wide engagement is not without its challenges, given wider macro- range of practices and policies designed to widen the environmental pressures facing many organisations. Success involvement of employees, including a ‘lean programme’ may require organisations to avoid adopting a ‘piecemeal’, set up to make improvements in outpatients, non-elective ad hoc approach and instead focus on the development admissions and emergency care. Interviewees report that of a more strategic and holistic approach, which aims not the major benefit of this programme is not necessarily only to establish clear employee involvement mechanisms, the economic or process efficiency gains but, instead, the but also to build a culture that promotes active listening, investment in people by giving them the opportunity to involvement, consultation and participation. Moreover, our think about their work more carefully and produce ideas for research reaffirms the contention well established in the improvement: literature that genuine employee engagement depends upon long-established principles, namely that employees feel the ‘Lean has given people a lot. There are a lot of positives that organisational climate is based upon fairness and justice, that have come out of Lean. I think people who have gone working managers treat employees with respect and that effective on Lean projects have loved it, and they’ve come back really voice mechanisms exist for the expression of both individual enthused.’ Clinical business manager, NorthTrust and collective concerns. CREATING AN ENGAGED WORKFORCE 35
  • 38. Looking at our sample overall, statistical tests revealed that the two most important drivers of engagement KEY FINDINGS are meaningfulness of work and employee voice. • Employee voice is a strong driver of engagement. Meaningfulness is measured by a set of items including, • Just 34% of employees are the vocal-involved, for instance, ‘the work I do on this job is worthwhile’ and who perceive their work as meaningful and have ‘the work I do on this job is very important to me.’ Voice is opportunities to voice their views, yet this category of similarly measured by a series of items including, ‘I develop workers is the most engaged. and make recommendations concerning issues that affect my workgroup’, and ‘I get involved in issues that affect the quality of work life here in my group’. Statistical tests HR POLICIES AND PRACTICES showed that these two factors are the major drivers for all There is good evidence in previous research that HR policies types of employees, for example in terms of age, gender and and practices play a critical role in shaping the relationship job role. between employers and employees (Gould-Williams 2007). Our analysis reveals that only about a quarter of employees Plotting meaningfulness versus voice provides an insight into are satisfied with the HR practices in their organisation. The the proportion of employees who have positive perceptions majority of all respondents, 38%, are neither satisfied nor of these two important factors. We found that only one- dissatisfied and a considerable number, 35%, indicate their third of our sample, 34%, fall into the category of the ‘vocal- dissatisfaction with HR practices. involved’, those who find their work meaningful and feel they can express their views openly. The vocal-involved are Respondents indicate several areas for improvement, such those who are in the setting most conducive to high levels as performance appraisal systems, training and development of engagement. It is positive, however, to note the very small opportunities and career management systems. numbers falling into the other categories, with the exception of the 51% of ‘fence-sitters’, who clearly have the potential ‘We get PDP [professional development plan] once a year to be converted into the vocal-involved or lapse into the and that’s meant to be a face-to-face but this year I got sent other categories. an email – this is your PDP.’ Manager, EnvironmentCo Figure 10: Meaningfulness vs voice (%) High Vocal-uninvolved Vocal-involved (1) (34) Voice Fence-sitters (51) Silent-uninvolved Silent-involved (4) (10) Low Low High Meaningfulness 36 CREATING AN ENGAGED WORKFORCE
  • 39. Figure 11: Satisfaction with HR policies and practices (%) 40 35 30 25 20 15 10 5 0 Very dissatisfied Dissatisfied Moderate Satisfied Very satisfied ‘I haven’t had any formal sort of training as such, I’ve not In contrast to what we expected, we do not find a had any management training, I haven’t had any training at direct association between HR policies and practices and all, whatsoever, [...] so I’m just assuming that what I’m doing employee engagement. Rather, our analysis reveals that is right and hopefully it is.’ Engineering manager, PlasticCo the relationship between HR practices and engagement is indirect. HR practices impact on two key factors: the Previous studies have demonstrated that individuals’ behaviour of line managers and person–job fit, or the match perceptions of HR practices positively impact upon employee between individuals and their jobs. It is these two factors outcomes, such as organisational commitment and job that have the most important impact on engagement and satisfaction (Conway and Monks 2009, Kinnie et al 2005). not HR practices in and of themselves. We therefore aimed to assess whether HR practices are also a significant predictor of employee engagement by analysing the relationship between both variables through statistical tests. KEY FINDINGS • Most employees have negative views about their organisation’s HR policies and practices. • HR practices do not impact directly on engagement; the relationship is mediated by person–job fit and line management style. CREATING AN ENGAGED WORKFORCE 37
  • 40. CASE STUDY: EnvironmentCo EnvironmentCo is a leading recycling and waste choice. EnvironmentCo decided to join the Kingston Business management company in the UK and part of a global School Employee Engagement Consortium to find out more environmental services company that consists of four about the workforce’s levels of engagement and get detailed divisions, encompassing water, energy, waste management information about which aspects to improve in order to raise and transport. The company employs almost 12,500 people engagement levels within the company. and 2008 revenues were above £1.2 billion. In the UK, EnvironmentCo provides integrated waste management The participants in the engagement survey were 2,217 and environmental services to local authorities and industry, employees working for EnvironmentCo. The research including refuse collection, recycling, hazardous and non- consisted of two main stages. First, 757 employees hazardous waste treatment, disposal, energy recovery, street with email access were invited to complete an online cleansing and landscaping and landfill contracts. questionnaire survey. A further 1,460 employees without Internet access were given a paper version of the EnvironmentCo places a strong emphasis on operating questionnaire. From this sample, 1,029 questionnaires were in a responsible and sustainable manner. The company returned, providing a total response rate of 46%. Second, is committed to the preservation and protection of the 20 face-to-face interviews were conducted with a range of environment through the provision of professional waste managerial staff. and recycling management services to communities and businesses. The access to top-quality research and ENGAGEMENT LEvELS international innovation and expertise allows EnvironmentCo The overall result of the study is very positive. Seventy-five to promote innovative recycling and recovery solutions per cent of employees at EnvironmentCo are strongly or to its clients and champion innovative waste treatment very strongly engaged. About 24% are moderately engaged technologies. and only 1% of respondents indicate that they are weakly engaged. Levels of engagement frequency are even higher, EnvironmentCo has set itself the objective of becoming an with 78% indicating that they are engaged on a regular employer of choice within the UK. To achieve this objective, basis, 19% even on a daily basis. EnvironmentCo has been reappraising a range of practices and policies within the company. EnvironmentCo also made Employees at EnvironmentCo especially show very high levels a substantial effort to change its culture towards a more of affective engagement, which reflects that respondents flexible and open working style. Engaging employees was generally care about doing a good job. seen as a major step towards becoming an employer of Figure 12: Extent and frequency of employee engagement at EnvironmentCo (%) 70 60 50 40 30 20 10 0 Very weak/ Weak/ Moderate/ Strong/ Very strong/ Never A few times a year Once a month Once a week Daily Overall engagement extent Overall engagement frequency 38 CREATING AN ENGAGED WORKFORCE
  • 41. ‘Everybody is working hard because they care about the EMPLOYEE vOICE company, you know they all want to make sure that they A second strong point at EnvironmentCo is the extent to save the company money and it stays a successful company.’ which employees are given opportunities to get involved in Manager discussions about work-related matters and communicate their opinion about aspects of their job. Almost two-thirds ‘I’d say 90% of our workforce is conscientious; they want to of the respondents in our study feel highly or even very drive the business forward.’ Senior manager highly involved in work-related matters. The management style at EnvironmentCo is described as open, democratic and In the following sections we will explain which aspects honest, where employees can talk to their managers about contribute to the high levels of engagement at issues that affected their work. EnvironmentCo – clarity of objectives, employee voice, corporate social responsibility – and also give some advice ‘The management style is one of creating a communicative as to which areas could be improved to further raise levels culture, ie communication downstream and upstream.’ of engagement among EnvironmentCo employees – HR Director practices and systems and processes within EnvironmentCo. ‘Most managers sit there with their door open and it’s a CLARITY OF ObJECTIvES fairly open management style and most of them have come Clarity of objectives has been shown in previous research to up through the ranks as well, so most of them have come be an important factor impacting upon levels of engagement. from either a driving or from an admin type role anyway so At EnvironmentCo, the vast majority of employees feel that they know what everybody is doing.’ Manager they know what is expected of them and are clear about the tasks they had to perform to achieve their goals. ‘I think it’s quite an open management style. I think it’s quite direct but I would say reasonably diplomatic.’ Manager ‘Our people are competent, able to work within teams, understanding [...] the company’s strategic objectives.’ To further encourage employees to get involved with their Senior manager job, EnvironmentCo has implemented a suggestion scheme to foster ideas across the organisation. Every quarter employees ‘It’s really key that employees understand what the business are encouraged to put down their ideas on a specific topic, objectives are, what the company objectives are and the such as health and safety, customer service or efficiency. reasons why. I think if they understand that and someone At the end of each quarter, three ideas get picked out and sits and explains that to them then they will absolutely work the winners are given vouchers as rewards for their ideas. for us without a shadow of a doubt.’ Senior manager Managers in our study complimented employees for the number of valuable ideas they put into the suggestion scheme. An impressive number of interviewees talk about EnvironmentCo’s strategic objectives in the next few years, ‘We’re really getting a lot of suggestions. We had a recent which reflects the fact that strategic goals and objectives conference and we had over 100 suggestions in one day had been communicated very well at management level. from the assembled group, which is fantastic.’ Occasionally, employees indicate that they would prefer to Senior manager receive more information about EnvironmentCo’s future direction. ‘One which was a really simple idea but great was that all the drivers should have a name badge so that when they are ‘Improved information-sharing within the organisation talking to their customer the customer sees their name, gets [would make my working life easier], especially from senior familiar with the driver, they are the point of contact at the management to lower levels within the organisation. Too much end of the day.’ Senior manager information isn’t accessible, eg Strategy 2012.’ Employee However, overall clarity of objectives is a major strength at EnvironmentCo, which clearly contributes to the high levels of engagement. CREATING AN ENGAGED WORKFORCE 39
  • 42. CORPORATE SOCIAL RESPONSIbILITY HR PRACTICES A third important strength in EnvironmentCo is its One area for improvement at EnvironmentCo is the commitment to being a socially responsible member of development of more sophisticated HR policies and practices. society. EnvironmentCo’s aim to protect the environment A considerable number of respondents (19%) in our study by investing in innovative and state-of-the-art techniques is are dissatisfied with HR. highly appreciated by many employees. Fifty-one per cent of respondents believe that EnvironmentCo is a socially At EnvironmentCo, employees specifically express their responsible member of society, compared with only 9% who dissatisfaction with training and development opportunities, disagree with this statement. and the career and performance appraisal systems. ‘I would say the values and what we aspire to do are ‘The training for HR, for managers, is horrendous. I’ve never laudable in the environmental space. I would say definitely had any training on it. You just learn the processes and the yes.’ Manager policies, you just go on the intranet and have a look and we sort of make it up as you go along.’ Manager ‘I think everything that I hear from the highest level is that that is our intention and that we will make every effort to ‘Everybody talks about training and likes to be trained and reduce our impact on the environment and it seems to be a we’ve got a very good training department. [...] But I think consistent message.’ Manager it’s underutilised and the reason for that is that the training culture from the top is weak.’ Manager Many respondents indicate that working for a socially responsible company is important to them and some ‘The career management is really about who knows who at respondents indicate that they cannot imagine themselves the moment. There’s no real formal structure to the career working for a company that they would consider irresponsible. management.’ Senior manager ‘We are in a world that is getting smaller, diminishing resources, On the positive side, several respondents indicate that HR increasing population. At most we all have a social conscience practices have been identified as a weakness within the and how we are affecting the environment, other people and company by the HR department already and appreciate that so forth. So it is the most important thing. And if you have got the HR department is currently working on new policies and children you are going to worry about that.’ Director processes across several HR areas. ‘Yes, corporate social responsibility is important for ‘We have a performance development plan process and me because I consider myself to be fairly socially and that’s management levels. We’re in the middle of changing environmentally responsible anyway.’ Manager the process at the moment because we’re investing in an intranet-based system because we’ve found with the ‘I would be very uncomfortable working for a company that manual-based in such a big organisation, it’s really hard for I thought was unethical or didn’t think was responsible.’ us to track the output.’ Manager Manager ‘The performance appraisal system is embryonic. It had an initiative a few years ago and went badly wrong, but the current HR director is relaunching it.’ Senior manager 40 CREATING AN ENGAGED WORKFORCE
  • 43. SYSTEMS AND PROCESSES Another challenge for EnvironmentCo is the systems and processes in place across the company. Several interviewees commented that the systems and processes within EnvironmentCo are not developed to a level appropriate to a business of EnvironmentCo’s size. This is a major frustration, especially for managers, which impacts upon levels of engagement. ‘Reporting mechanisms have been very poor, very, very poor because we work on different systems.’ Manager ‘Because we’ve got all sorts of systems out there, the company runs on about 25 different systems, each different division has got a different system.’ Manager ‘You’ve just got a system that’s very laborious, the system that we’ve inherited to use is not as efficient as other systems might be so we’ve had to adapt that but resource is really tight.’ Senior manager Interviewees especially feel that the intranet needs much more development, as communication and collaboration opportunities are missed. Collaboration and talking to peers about ways to improve a job is part of our conceptualisation of social engagement and interviewees indicated that one means of increasing levels of social engagement would be providing a more sophisticated intranet. ‘The current intranet is terrible, just a place where people put documents and we want to turn it around, we want to make it a tool for online collaboration, so that people can have electronic forums...blogs, we want the CEO to do a blog every week.’ Director ‘One of the big communication opportunities we’re missing is the intranet. Our intranet is just poor, it’s static.’ Manager CREATING AN ENGAGED WORKFORCE 41
  • 44. 7 Outcomes of engagement Employee engagement has been associated with a range of include job skills (that is, the extent to which employees have positive outcomes at the individual and organisational levels, the knowledge and ability to carry out their job); social skills for example, engaged employees are more likely to perform (for example leadership and interpersonal skills); willingness better and are less likely to seek a new job elsewhere. In this to take on extra work; and the rating they received in their section, we consider how all the factors in our model impact most recent performance appraisal. on a range of outcomes at both levels, including individual performance, intention to leave and individual well-being. We first asked people whether they feel that they have the right skills to carry out their work effectively. Fifty per cent FOR ORGANISATIONS feel their job skills are very good and an encouraging 22% We consider three important outcomes of engagement: feel they are excellent. For social skills, the scores are just performance, innovative work behaviour – or the extent to slightly lower, with 41% feeling they are very good and which people innovate in their jobs – and intent to quit. 22% excellent. On both scales, very few employees rate themselves as having a poor or fair skill level. INDIvIDUAL PERFORMANCE The process of engagement that we have seen so far involves We also asked employees whether they are willing to take a positive cycle of perceptions of work, satisfaction with on extra work and go beyond the call of duty. Fifty-nine work, involvement in and engagement with work. These per cent indicate that they were willing to take on extra work behaviours and the psychological processes that underpin on a regular basis. We then asked people to let us know the them lead to enhanced performance. Engaged employees rating they received in their last performance appraisal. perform better than their less engaged counterparts because Forty-three per cent of all employees received a good they are more involved with their work, they think more performance appraisal, 36% were rated very good and about their work, which helps them to develop better another 9% excellent. In contrast, 12% received a poor or solutions, and they are socially connected with their work. fair rating in their last performance appraisal. There is also considerable empirical evidence for a positive association between engagement and performance, and our These performance data are positive across the whole study fits well with prior evidence. sample; however, we can find some statistically significant differences across employee groups. Although individual performance would ideally be measured by asking someone else, such as a line manager, about an Although these data are not objective measures of individual’s performance, this is not possible in a survey performance, they provide a barometer of employees’ of this nature, so we asked employees to self-rate their understanding of their own performance in relation to that perceptions of a range of performance measures. These of their peers. Figure 13: Levels of self-rated job skills and social skills (%) Social skills 6 32 41 20 Job skills 2 25 50 22 0 10 20 30 40 50 60 70 80 90 100 Poor Fair Good Very good Excellent 42 CREATING AN ENGAGED WORKFORCE
  • 45. Figure 14: Rating of the last performance appraisal (%) Figure 15: Innovative work behaviour (%) 50 50 40 40 30 30 20 20 10 10 0 0 Poor Fair Good Never A few times a year Once a month Very good Excellent Once a week Daily INNOvATIvE WORK bEHAvIOUR INTENTION TO STAY For a subset of our organisations, we analysed whether A third important outcome of engagement is the intent to higher levels of engagement lead to innovative work remain with the organisation. Intent to stay is important behaviour. Across the three organisations included in our for organisations since it ensures that human capital is subsample, a quarter of respondents say that they never maintained, morale is good and recruitment costs are engage in innovative work behaviour, such as creating new reduced. Conversely, people’s intention to leave is a close ideas for difficult issues or generating original solutions proxy for actual leaving behaviour and gives a good for problems. The vast majority of our respondents, 38%, indication of how employees generally feel about their work indicate that they develop innovative ideas a few times a year, and their working environment. whereas only 15% show innovative work behaviour on a weekly or daily basis. ‘I have been in the company for almost 20 years. I never thought about working for another company. I love working Although respondents certainly rate their innovative with EnvironmentCo. EnvironmentCo has been very good work behaviour much lower compared with their in-role to me. I try to repay the trust they put in me. Whenever I performance, we ran statistical tests to determine whether have been approached by any other company I’m just not engaged employees are more likely to engage in innovative interested. I am happy with EnvironmentCo, I’m delighted work behaviour than their less engaged counterparts. Our with what I am doing, and I work with fantastic colleagues. data show a strong association between engagement and My boss is great with me; my CEO is great so I am absolutely innovative work behaviour. Engaged employees are more delighted.’ Senior manager, EnvironmentCo likely to search out new methods, techniques or instruments, make important company members enthusiastic for Similar to the senior manager of EnvironmentCo, many of innovative ideas, and transform innovative ideas into useful our interviewees express a high level of satisfaction and applications. However, more research is needed in the future loyalty to their companies. In our study, more than a third, to explore these relationships in more depth and analyse 36%, say they would like to stay with their respective the different behaviours of engaged versus non-engaged organisation for at least five years, compared with 17% who employees when it comes to being innovative and creating want to leave their organisation within the next two years. new ideas. The majority of employees, 40%, do not indicate how long they want to continue working for their current employer. CREATING AN ENGAGED WORKFORCE 43
  • 46. Figure 16: Intention to stay (%) 9 8 40 7 36 Less than one year One or two years Three or four years Five or more years Unsure The data from our study show that engaged employees organisations in our sample use recognition schemes to give are significantly more likely to want to stay with their employees public acknowledgement of their achievements. organisation compared with those who are less engaged. Another opportunity for increasing engagement and These data, combined with our other data on engagement, productivity is the use of suggestion schemes. One of the suggest that it is not the case that people who are not organisations in this consortium has recently started an engaged and quit would be no loss to the organisation. initiative that involves team discussions of suggestions Rather, most people have the potential to be engaged, but whereby the most popular suggestion is acted upon and the working environment must be right for engagement to changes are made within two months, and then another be initiated and sustained. suggestion will be selected and put into practice. Another way that retention can be enhanced is through the design For those intending to leave their company, the main reasons of work. Line and senior managers have a responsibility given are listed in Table 3. to ensure that jobs are suitable, support is available and employees are enabled to craft meaningful roles, as These data show that there are two main reasons for discussed earlier in this report. wanting a new job. The first is to achieve higher pay in a similar job elsewhere. The second is to find a more satisfying job in a different organisation. Pay is, of course, a perennial KEY FINDINGS issue and one that goes beyond the scope of this report. • Engaged employees perform better and are more likely However, while pay rises are not typically feasible, other to want to stay with their employer. forms of reward are possible and these alternatives can be • Engaged employees are more innovative than others. successful in raising engagement. For example, some of the Table 3: Main reasons for wanting to leave organisation Reason % Better pay/benefits elsewhere 21 Job satisfaction 17 Opportunities for promotion 16 To find a different job within the organisation 13 To find another similar job in a different organisation 13 To do a different type of work 13 44 CREATING AN ENGAGED WORKFORCE
  • 47. CASE STUDY: NorthTrust NorthTrust is an NHS foundation trust based in the north involvement policy. The HR department in the trust has of England. It is a large public organisation providing acute developed a wide range of practices and policies to support healthcare to a population of over 300,000 people. The the diverse needs of the workforce. These are described by the immediate catchment covers some 33 square miles, which is HR team as initiatives that ‘value staff’. In addition to policy largely an urban area. It has foundation trust status, which documents relating to partnership and involvement, they means it has increased independence from government include schemes such as ‘Employee of the Month’, ‘Team of regulation and can reinvest any surpluses back into the Year’, long service awards, staff suggestion scheme/zone, improving service delivery. Annual income is in the region of health walks, cycle scheme, pamper days, flexible working, £225 million. nursery and childcare vouchers, and gym discounts. The trust is also a teaching hospital and a tertiary centre The engagement research was conducted in two stages. providing specialist services to a wider population of around First, a stratified sample of 2,000 employees was invited 1.5 million people. The population served by the trust to complete an online questionnaire. A further 100 includes some of the most socially deprived communities in without Internet access were sent a paper version of the the UK, with high rates of heart disease and cancer creating questionnaire. From this sample, 381 online questionnaires considerable demand for hospital-based care. The trust is and 39 paper copies were returned, providing a total one of the largest employers in the area with 4,500 staff. It response rate of 20%. The second part of the research has been accredited with Investor in People recognition for was conducting 20 face-to-face interviews with a range of all workplace policies and practices. clinical and managerial staff – including clinical business managers, general support, matrons and consultants. Further The hospital has a bed complement of 860 inpatient and insights were gained through site visits and secondary 105 day case beds. In 2007, the trust handled over 76,500 documentation. episodes of inpatient and day cases, over 280,000 outpatient attendances and nearly 87,000 emergency visits. The trust’s Three occupational groups made up the bulk of survey services are organised into 15 clinical business units, grouped respondents – administrative and clerical, registered allied by three main divisions: medicine and emergency, surgery health professionals and registered nurses. There are a and support services. wide range of administrative jobs in the NHS, including medical records staff, call handlers, clerks, patient liaison The vision of the trust is ‘to provide high-quality, patient- administrators and receptionists. They serve important roles centred healthcare and proactively enhance the Trust’s local, in organising appointments and maintaining patient records. national and international reputation’. The central aim of Allied health professionals include people working within the HR strategy is for the trust to be an employer of choice a variety of health treatment areas such as physiotherapy, for the area. Recent trends have included an increased dietetics, orthopaedics and radiography. Practitioners within workload of around 9% during 2007–08, perhaps reflecting these roles are registered with a professional body that an increase in patients choosing to be treated at the hospital regulates professional conduct and development. Registered under new NHS arrangements. The organisation has recently nurses are responsible for various roles around patient care. invested £2 million in ward-based nursing and made a They may specialise in a specific medical area or serve a more financial surplus of £1.1 million in 2007–08 to be reinvested general role. in the following financial year. The trust has also recently begun an ambitious £7.5 million reconfiguration of radiology ENGAGEMENT LEvELS facilities. In terms of service performance, the trust has The overall results of the survey are positive, with 85% delivered the 18-week waiting list targets and cancer targets being ‘highly’ or ‘very highly’ engaged. Thirteen per cent set by the Department of Health. are moderate and only 1% have a low level of engagement. Levels of engagement frequency are similarly positive. NorthTrust joined the Kingston Business School Employee Eighty-three per cent of respondents indicate that they are Engagement Consortium as an opportunity to learn from engaged on a daily or weekly basis, and only about 2% other organisations and feed the results into other HR engage less than once every month. We will consider three initiatives, such as the annual staff survey and employee areas that are contributing to high levels of engagement in CREATING AN ENGAGED WORKFORCE 45
  • 48. NorthTrust – involvement initiatives, satisfied workforce and Despite the warm reviews by most staff, a few point to the clarity of objectives – and three areas that are less successful danger of this kind of initiative. There is the possibility that in this context – recruitment and retention in some roles, changes to work processes can be made too hastily without leadership style and communication. proper consideration for the implication of making the changes. The process-mapping exercise and planning stage INvOLvEMENT INITIATIvES do not always pick up important scenarios that occur in the Certain involvement initiatives the trust initiated or joined are day-to-day operation of work: positively received by employee groups. The main example given here is the ‘Lean programme’, which was set up to ‘[Changes to work processes] are very frustrating and make improvements in outpatients, non-elective admissions sometimes confusing because things can change from and emergency care. One matron summed up this initiative: week to week. One week, it’s a good idea, but usually what happens is someone comes up and says “that’s a great idea” ‘One sign of successful involvement in the trust is the “Lean so we introduce it, we haven’t got time to get it tested and programme”. This is an initiative organised by an external when it’s introduced, of course, there’s a fundamental flaw consultant that seeks to remove redundant work processes and somebody picks that up and so you have to change it and increase the “flow” in organisational systems. Many again or you scrap it.’ Matron respondents reported how this was a rewarding experience. We have facilitators...and then we invite a selection of The engagement survey results show that there are pockets people – clinicians, junior doctors, senior nurses, junior of employees, such as those participating in Lean, who nurses, porters – a cross-section...they would map out the feel very involved in organisational decision-making and current processes step by step...so by the end of that week improvement. However, there are also other areas where we will have a plan of improvement to implement. I think it’s people are less positive. The senior HR team is disappointed been beneficial.’ Matron with this finding because they feel they have put a lot of work into organisational involvement through outputs such Other interviewees reported that the major benefit of this as the staff involvement policy, staff involvement group and programme is not necessarily the economic or process partnership forum. They plan to respond to this finding by efficiency gains but, instead, the investment in people by making efforts to ensure involvement initiatives are spread giving them the opportunity to think about their work more more widely throughout the trust. carefully and produce ideas for improvement. Figure 17: Extent and frequency of employee engagement at NorthTrust (%) 80 70 60 50 40 30 20 10 0 Very weak/ Weak/ Moderate/ Strong/ Very strong/ Never A few times a year Once a month Once a week Daily Overall engagement extent Overall engagement frequency 46 CREATING AN ENGAGED WORKFORCE
  • 49. SATISFIED WORKFORCE ‘Targets are a good idea – aspiration, you work towards it A consistently positive finding across NorthTrust is that and achieve an end. But some of the targets aren’t realistic. employees are satisfied working for the NHS. Employees are ...If you can’t actually achieve them with the resources slightly more satisfied with aspects supporting their job, such you’ve got all you’re doing is putting pressure on people for as pay and benefits, rather than core work tasks, but both no reason.’ Consultant are positive. Employees are also very positive and satisfied with NorthTrust as a hospital and place of health care. Many RECRUITMENT AND RETENTION said they would be happy to let their close family and friends Recruitment and retention of staff is an issue in some areas be treated in the trust’s services. of the trust. Generally, across the organisation there is a feeling that employee skills match their roles well. However, ‘Health service jobs are good – everyone thinks we’re poor there are a few areas characterised by high employee nurses but no, we’re not poor, nurses are paid very well turnover and low attendance. More specifically, there are and managers are paid very well too. We can afford a good some administrative roles within the trust that appear to standard of living I think. All in all it’s a satisfying career in have a challenging work situation due to low pay, lack of the health service.’ Clinical business manager training, demanding work and little social support. The recruitment process in the NHS is seen as bureaucratic by Employees also score very highly on the extent to which they managers wanting to fill roles quickly. Yet this is difficult to care about their jobs. Even groups that are less engaged in overcome in the health sector due to prudent regulations other aspects are engaged on an emotional level. This ‘public and legal checks such as the Criminal Records Bureau (CRB) sector ethos’ is often found in public sector organisations. and Right to Work: ‘It’s a satisfying career because the one thing is that you’re ‘The recruitment process takes a very long time because of doing something for the public, aren’t you? You’re doing the standard procedures and things like CRB checks, which something that makes a difference and that’s probably why I add a further bureaucratic burden.’ Middle manager like my job.’ Clinical business manager Linked to the problem of retaining people in some roles, CLARITY OF ObJECTIvES another challenge in NorthTrust is developing teamwork in An important component of employee engagement is clarity some areas. This is identified as a particular problem for larger in what individuals and teams are trying to achieve at work. departments, where team relationships are less personal. This is particularly important for the intellectual aspects of engagement. In NorthTrust employees are confident that ‘Some roles don’t get an opportunity for social engagement they know what they are trying to achieve and how this because they are working independently away from contributes to organisational performance. Sixty-seven colleagues and managers. They are then not given per cent of respondents feel that they know what they have opportunities to interact at meetings either.’ to do to complete their work tasks and how this contributes General manager to performance. NHS trusts have strict performance targets set by central government’s Department of Health. These It was also an issue in other areas; for example, some relate to issues such as waiting times and infection control. receptionists are required to be fixed to a particular desk Meeting targets is one of highest priorities for NHS staff – with no other employees in the same work area. This can be from senior executives to consultants to nurses. Discussion of a very isolating experience. targets featured heavily during the engagement research: LEADERSHIP STYLE ‘The problem is of course that you can’t go back, and no There is a huge amount of change going on in the NHS and one would want to go back [to pre-target days]. To be fair this is impacting NorthTrust in important ways. For example, to the Government they’ll say “well surely you don’t want to there are implications for leadership style within the go back to the days when people in accident and emergency organisation due to frequent changes in the management spent, you know, in extreme cases 24 hours waiting to be structure: seen”, and we clearly don’t want that.’ Matron CREATING AN ENGAGED WORKFORCE 47
  • 50. ‘Yeah I mean the management have actually changed a lot COMMUNICATION over the last year and we’ve got a new general manager... Style of communication is also perceived to be very and his style will determine a lot of our workload and the important for senior managers. The allied health priorities that we’ve got.’ Clinical business manager professionals (for example physiotherapists, occupational therapists, radiographers) are traditionally seen to be very The style of management will affect how important priorities good at communicating with their staff as part of their such as meeting targets are approached and controlled. professional culture. With the NHS focus on targets and high-profile issues of ward infection control, some managers pointed out that However, more generally across the organisation, there is poor performance had to be dealt with strongly, as there concern with the kind of message that senior managers are were severe health consequences for patients. Disciplinary sending to staff. For example, if the end-of-year message action would undoubtedly affect the perception of support to staff from the chief executive is perceived to have an in the work environment, but this was an unavoidable overriding negativity this does not go down very well with consequence of the priorities of the hospital. nursing staff because they feel they have worked very hard all year. Other senior managers are noted for being ‘Sometimes people are wrong and, if you’re wrong, you’re autocratic and distrusting of middle manager capabilities and wrong, so you can’t say that’s a blame culture. That’s like, this again impacts on the way they communicate to staff. you know, you didn’t deliver what you should have delivered so therefore your role isn’t suitable for you, so that’s To overcome these issues, the trust has created a new acceptable.’ Clinical business manager post for Director of Communications. Their main role will be to redesign communication channels in the trust, The trust has to take action in relation to complaints, serious encompassing top–down communications, news, electronic untoward incidents and infection control issues. communication, idea-sharing, continuous improvement and emergency planning. 48 CREATING AN ENGAGED WORKFORCE
  • 51. FOR INDIvIDUALS ‘There seem to be people suffering with stress and I think The recent interest in positive organisational behaviour has that maybe we’re pushing people so hard that sometimes included an emphasis on positive outcomes for individuals we don’t recognise it.’ Manager, EnvironmentCo (Bakker and Schaufeli 2008). In the following two sections, we will therefore consider how engagement might lead to ‘There was one bloke when I first joined and he was positive results at an individual level, such as higher well- staying until like 11:00 at night and he was here at 9:00 in being and sustainability. the morning. So I think there is actually quite a lot within the rest of the company as well, there’s quite a culture of WELL-bEING working long hours.’ Manager, ConstructionCo There is good evidence that high levels of engagement are negatively related to burnout and positively associated with Looking at our dataset as a whole, we compared levels of well-being (Bakker et al 2008, Schaufeli and Bakker 2004). Our individual well-being with performance to find out how data confirms these findings by demonstrating that engaged many employees experience both high levels of well-being employees show higher levels of well-being. This means that and perform highly. It was gratifying to discover that only engaged individuals are more likely to enjoy their work activities, a tiny number, 1%, fall into the category of ‘unfit non- are able to cope with work-related problems and are less performers’. However, one-third, 32%, can be described as likely to lose sleep over work-related issues. Three-fifths of our ‘fit performers’, while the majority, 59%, are ‘fence-sitters’. respondents indicate that they have high levels of well-being and a further 7% said that their level of well-being is very high, SUSTAINAbILITY compared with only 4% who express low levels of well-being. Highly engaged employees are more likely to feel that their workload is manageable and that they can cope with their These are very positive findings that confirm that engagement current workload. Sensing that work is sustainable in the has positive outcomes for individuals themselves. However, longer term is important from an individual’s perspective, especially in our more recent case studies, managers express as unsustainable work is detrimental to the health and warnings that levels of well-being might decrease with the safety of the workforce. In our study, almost three-fifths of mounting pressures due to the current economic climate. respondents consider their work highly sustainable; however, about a third are unsure about whether they could continue ‘I do think we possibly have a bit of an issue with work to work at their current pace in the future and almost 10% pressures and a long hours culture but I think there’s a little clearly indicate that their workload is not sustainable. bit of pressure for people to work hard, work smart and work fast and I think it does sometimes get a bit challenging Although our study revealed that engagement generally for people and I think everybody can understand the reasons leads to higher sustainability, our qualitative and quantitative for it.’ Manager, ServiceCo data also demonstrate that this relationship does not Figure 18: Levels of well-being (%) 70 60 50 40 30 20 10 0 Very low Low Moderate High Very high CREATING AN ENGAGED WORKFORCE 49
  • 52. Figure 19: Individual performance vs well-being (%) High Fit non-performers (6) Fit performers (32) Well-being Fence-sitters (59) Unfit non-performers (1) Unfit performers (2) Low Low High Performers hold for very high levels of engagement. Employees at Similar to this quote from a manager in ServiceCo, other the extreme ends of engagement show lower levels of interviewees told us about incidents from their working sustainability. Constantly thinking about work, taking experience where people have become too engaged. This has extra work home on a regular basis and not switching off had serious effects on their health, but also impacted on their from work at any time during the day has a serious impact personal life and their ability to concentrate and focus, which on individuals and might lead to ill-health and burnout in turn affected their productivity. Managers have a critical symptoms, as these individuals are more likely to become role to play in ensuring that the engagement levels of their ‘workaholics’ with the associated risks. team members are sustainable. Additionally, it is important to prevent organisational cultures from developing that reward ‘I had a guy who used to be full-on and he had a heart attack, working long hours and encourage 24/7 availability. one of my sales managers, lovely guy, quite young, 31. When he was in hospital, he starts emailing, “I spent the weekend in KEY FINDINGS hospital, they’ve done all these tests on me, I’m just on down for an ECG, but I thought I’d just copy an email to you, I hope • Engaged employees enjoy greater levels of personal well-being. you’re alright”...I was virtually the same. When I was in hospital last year, they didn’t have an Internet connection, so I asked my • Engaged employees perceive their workload to be wife to bring my laptop. She would bring it to the hospital, I more sustainable than others. sent her back home so she could upload and send the emails, • One-third of employees are ‘fit-performers’, enjoying collect the new ones and bring it back.’ Manager, ServiceCo high levels of personal well-being and performing well. Figure 20: Sustainability (%) 70 60 50 40 30 20 10 0 Very low Low Moderate High Very high 50 CREATING AN ENGAGED WORKFORCE
  • 53. CASE STUDY: ConstructionCo ConstructionCo is an international consultancy and has in place a progressive set of HR practices and a team construction firm. Founded in 1990, the organisation with responsibility for facilitating employee engagement. has experienced rapid growth to a turnover in excess of Participation in the Kingston Business School Employee £500 million in 2007. The firm has been responsible for Engagement Consortium was therefore to feed into several high-profile construction projects in the UK, Asia existing initiatives rather than to kick-start a redirection. and the Middle East. The company employs close to 2,900 Further sources of information include an annual staff people and operates in 28 countries around the world. survey, Investors in People feedback and Sunday Times Best Companies feedback. The employee engagement survey The company offers services that span the entire property was distributed to employees working in the UK. An online lifecycle, including planning and building, maintenance questionnaire was distributed to 346 employees and was and facilities management, waste management and ICT returned by 180, providing a response of 52%. Twenty consultancy. Senior management have set ambitious growth interviews were also conducted with a range of managerial targets to have a £1 billion turnover by 2012. Around 63% staff. of current turnover comes from consultancy and 37% from construction. The workforce is currently 70% male and has a ENGAGEMENT LEvELS relatively young age composition. The results from the survey are very positive, with 77% of employees being ‘highly’ engaged and 12% ‘very highly’ The company is particularly proud of its relationships with engaged. Less than 1% fall into low engagement categories. clients and suppliers; over 70% of contracts come from Levels of engagement frequency are even higher. Almost returning clients. The company has also established a good 90% of all respondents are engaged on at least a weekly reputation for employee experience. It has been listed in the basis and only 2% are engaged only once a year. The ‘Sunday Times Best Companies to Work For’, been named in general results clearly suggest that ConstructionCo is a very the top 50 in Building magazine’s ‘Good Employers Guide’ engaging company to work for. and holds Investor in People recognition across the UK business. What do these results mean for engagement initiatives within the organisation? During one research meeting the ConstructionCo has a simple vision: ‘to be the best at what employee engagement manager reflected, ‘Maybe this we do’. Feeding into the vision are a number of core values, means I am out of a job! There is nothing for me to do.’ which include – respecting people, listening to views of We will consider whether this is the case by looking at three all staff, delivering with trust, honesty and integrity, and things the organisation is currently doing well – creating an promoting positive collaboration. The company already entrepreneurial culture, fair and consistent management Figure 21: Extent and frequency of employee engagement at ConstructionCo (%) 80 70 60 50 40 30 20 10 0 Very weak/ Weak/ Moderate/ Strong/ Very strong/ Never A few times a year Once a month Once a week Daily Overall engagement extent Overall engagement frequency CREATING AN ENGAGED WORKFORCE 51
  • 54. practices and high levels of organisational advocacy – and that can form the bedrock on which to build more three areas where the organisation is not doing so well – entrepreneurial, client-focused activities. sharing ideas for improvement, work–life balance and staff perceptions of senior managers. ‘I think the sort of fundamentals upon which we should rely with engaging people are basic things like – are people very ENTREPRENEURIAL CULTURE clear about what their job is, what’s expected of them, how ConstructionCo is a relatively young company and is they are to be measured, trusting their line manager, all of growing rapidly. The organisation has an entrepreneurial those issues, I think, whilst they might be fairly boring, and culture based on a record of successful performance. This we have been talking about them for years, actually they are context feeds into positive employee experiences and at the true drivers of engagement.’ Senior HR manager the workplace level this creates a dynamic and intellectually challenging work climate. Despite the core focus on traditional management concerns, ConstructionCo does have a set of what might be called ‘[ConstructionCo] has a very entrepreneurial feel about it so ‘progressive’ HR practices. These include the employee there is always that intellectual challenge.’ Middle manager referral scheme mentioned earlier, a graduate training programme and a mentoring process. However, in each of The organisational culture also creates a buzz of excitement these initiatives fairness and equity in their implementation and opportunity for staff. With recent growth, many new are stressed throughout. This in turn flows into the kind of starters have been employed through staff recommendations trusting relationship with clients that is so important in the from their network of personal contacts. This means that consultancy sector. staff can make a real contribution to the growth of the organisation and shape the type of workforce they are ‘You save money, you save grief, you save people’s emotion, growing into. Survey results suggest that employee–job fit you save risk, you save all of these things if you treat your and staff quality are high as a result. The entrepreneurial employees fairly.’ Senior HR manager culture is based on the drive and ambition of staff and the willingness to succeed. This is supported by letting people There is one main caveat with the management approach take responsibility and ownership of their own performance, at ConstructionCo. The relative informality of management development and career. At the same time, it should processes, coupled with a flat management structure, has be recognised that not all employees will, or should, be the potential to create some uncertainty of job role and highly driven as this can create an overly individualistic and responsibility. competitive culture. Instead, there needs to be a balance of drive and enterprise on one hand, and stability and cohesion ‘We don’t have formulated, formal, typed job descriptions… on the other. [and these] sort of issues actually cause us, now we are a large company, quite a headache in terms of making sure ‘We have this thing about managing your own career, so the that we know what people are doing and that they’re way you manage your own career is that you actually have working in accordance and being measured accordingly.’ to communicate with your line manager what it is you want Senior HR manager to do.’ Senior manager Over the coming year, ConstructionCo will need to In general, the entrepreneurial culture in the company is a pay careful attention to job design and the creation of great strength and asset towards engaging staff. management responsibilities that are unambiguous and, more fundamentally, still carry the underlying tenets of FAIR AND CONSISTENT MANAGEMENT fairness and consistency. The words ‘fairness’ and ‘consistency’ feature repeatedly in the HR strategy for ConstructionCo. The HR team does not ORGANISATIONAL ADvOCACY have a secret formula or elaborate programme of initiatives Following the positive commentary above, it is not surprising for managing people. Instead, they feel it is important that organisational advocacy is high at ConstructionCo. to focus on the traditional core aspects of management This feeds from the consistent approach to people 52 CREATING AN ENGAGED WORKFORCE
  • 55. management and the flexibility and opportunity inherent ‘Some departments have a great team spirit but in others it’s in the entrepreneurial culture. Questionnaire responses like, if someone wants to organise a ten pin bowling night, suggested that employees are very proud to work for the you know something local, down the pub, a quiz night, all firm. Employees have an emotional connection to their work the ideas have been floated but people don’t seem willing to and find their tasks intellectually stimulating. do it and it’s a great shame because it really does bond the team, creates friendships, new relationships, if people are ‘I think the majority of people passionately care about what willing to do it but they just don’t seem willing.’ they do in our business. They wouldn’t go the extra mile Senior manager quite as often as they do if they didn’t passionately care about what they do…that’s what I would call emotional To overcome this issue, the HR department was leading by attachment.’ Senior manager example by starting a reorganisation of the HR function to explore how idea-sharing could be improved. ‘You’ve got to remember what a great company it is, what great people there are within the organisation, what it has WORK–LIFE bALANCE achieved, it’s been excellent.’ Middle manager Employee work–life balance is a challenging HR consideration at ConstructionCo. In the engagement The high-profile nature of some of the company’s projects survey this was generally perceived to be good, but many reinforces the pride and willingness of employees to employees had a more moderate view. Many staff feel broadcast the benefits of their company. Everyone wants to compelled to work long hours due to the sheer amount of work for a successful and reputable organisation; it is clear work going on. The highly interactive nature of relationships that ConstructionCo employees feel their company is both of with clients is a source of increased pressure. Furthermore, these things and they are proud to call it their own. with such ambitious growth targets for the company, this problem is likely to increase in the future. SHARING IDEAS One surprising area that needs attention in ConstructionCo ‘What came out of last year’s staff survey was that people is the extent of collaborative idea-sharing. The company is wanted more work–life balance and that they perceived that forward-looking but sometimes this means that teams and there was a long-hours culture.’ HR manager departments do not share knowledge and ideas about how things are working and how they might be improved. As one The HR team is aware of this problem and is trying to tackle manager noted: it through the staff appraisal process. Managers are being encouraged to consult with their staff about what would ‘We probably don’t talk about improvements enough, is make their work–life balance better. However, this is likely the honest answer. Part of our culture is about inwardly to be one of the downsides of a fast-moving organisation challenging but inevitably sometimes it’s easier to do the job during business growth. the way you did it last time.’ Senior manager Following the engagement survey, the HR team at There are various involvement initiatives in the organisation ConstructionCo decided to address the low work–life for staff to interact with managers but they are not balance amongst the workforce. Two days’ extra leave were strategically coherent or widely understood. For example, added to staff holiday allowances, and health checks, a some employees said there was a suggestion scheme dental plan and employee assistance programme have been in place, but others said that it has been discontinued. introduced to help ensure employees do not burn out. Confusion like this could benefit from some attention. Although employees felt they worked in a supportive environment, there was some mismatch in expectation over social activities outside work. CREATING AN ENGAGED WORKFORCE 53
  • 56. PERCEPTIONS OF SENIOR MANAGEMENT A final issue that could be improved in ConstructionCo is the impression employees have of senior managers, particularly in terms of their visibility and quality of communication. This issue was somewhat frustrating for the senior management team because they felt they had put a huge amount of effort into improving this over recent years. ‘We have a bi-annual manager conference…we have a newsletter called HR Matters, which is something that goes out with the payslips…. We put different posters up on a weekly basis…we have the most amazing intranet…we have [ConstructionCo] Matters, which is a quarterly glossy magazine that goes out to all employees.’ Senior HR manager Surveys often find that employees’ views of senior managers are less favourable than their perceptions of immediate line managers. However, in ConstructionCo, senior managers are vitally important for setting the strategic direction. The management structure is relatively flat and, therefore, in theory there should be less distance between non-managers and senior managers. The senior management team will be responding to this following a management conference in the coming year. They are also planning to increase the emphasis on activities such as directors’ surgeries – where staff are given the opportunity to meet senior managers; and by offering staff training and e-learning so that non- managers can appreciate the role of managers while also learning important leadership skills. Going back to the reflection of the employee engagement manager at ConstructionCo, the company is already doing many things well and currently has an elevated level of engagement. However, there are areas of weakness that need attention. Careful attention is needed to shape engagement initiatives around the future growth of the company. 54 CREATING AN ENGAGED WORKFORCE
  • 57. Conclusions and management 8 implications In our research, we have collected data from over 5,200 However, it is positive to note that the proportion of engaged employees across eight different organisations. The picture employees overall is somewhat higher than has been that has emerged about engagement is rich and complex. found in previous surveys. In part, this may be due to the Extent of engagement is higher in the public sector self-selected nature of our sample of organisations, which compared with the private, but private sector employees are joined the Kingston Engagement Consortium project out of more frequently engaged. Women are more engaged than an interest in engagement and where it might reasonably men, whereas younger workers are less engaged than older be supposed that engagement strategies would be further workers, and those on flexible contracts are more engaged advanced than in other organisational settings. Despite this, than others, reflecting the findings of our earlier report (Truss we did find quite wide variations in levels of engagement et al 2006). Those with managerial responsibilities emerge as and in strategies and approaches to manage engagement, being more engaged than other employees. as emerges strongly from our case studies. These show that engagement can be managed effectively in different ways, For all these different employee groups, we have run and that although there are some general prescriptions statistical tests to uncover what the key drivers of of best practice relevant to everyone, the nuances and engagement are. It has emerged very strongly from this implementation will vary from setting to setting. analysis that two factors are more important than any others in driving up levels of engagement for all groups: Our engagement journey has led to some fascinating meaningfulness of work and employee voice. The way in insights into employee engagement over the past three which senior managers communicate with employees is years. We are about to embark upon a new phase, where we the third most important driver. Other important factors set about trying to answer some of the questions that have are person–job fit, supportive work environment and arisen out of the consortium project that we still feel remain management style. unanswered, using different methodologies and different approaches to tap into engagement at an even deeper level. DRIvERS OF ENGAGEMENT • meaningfulness of work Our management recommendations are: • voice, being able to feed your views upwards • senior management communication and vision • Understanding your workforce engagement profile is the • supportive work environment first step to determining how to drive up engagement • person–job fit levels. • line management style • Engagement is clearly associated, both in our report and in other studies, with high levels of performance, reduced Taken together, these factors create a virtuous cycle of intent to quit and raised levels of personal well-being. It engagement processes that employers can reinterpret in is therefore legitimate from a corporate perspective to ways that fit with their own organisational context and prioritise improving levels of employee engagement. circumstances. We note in our study that around one-third of • There is a clear need to help create meaning for employees respondents, 34%, can be classified as the ‘vocal-involved’, in their work; this can be achieved intellectually by working in jobs they find meaningful and able to express their articulating the links between individual jobs and the views. Since these are the two key drivers of engagement, it is broader organisational aims, and emotionally through concerning that this figure is so low, and suggests that there is sharing an understanding of deeper levels of the purpose much that employers can do to create a more engaging work of the organisation. environment for their staff. Similarly, 32% can be described • Employees need to be given opportunities to express as ‘fit performers’, enjoying high levels of personal well-being their views and to know that their opinions will be taken and performing to a high standard. Employers would generally seriously. This is an activity that needs to involve both wish to raise this proportion of their workforce and putting in senior and line managers. Our case studies provide some place a range of engagement initiatives would help to address examples of how organisations in the consortium have this problem. achieved this. CREATING AN ENGAGED WORKFORCE 55
  • 58. • Senior managers have an important role to play in • Matching people to jobs is a critical driver of engagement. creating a vision for the organisation and sharing this This is one area where HR professionals can play an with employees, and in being open, transparent and important role helping line managers design jobs approachable. effectively, and develop selection processes that match • Engagement levels are affected by the working individual skills to jobs. environment. Where employees can see that they have • Line managers act as the interface between the support from others to help them do their job, there is a organisation and the employee, and can do much to sense of teamwork and they can safely express themselves, impact on engagement. Another key HR role is therefore then engagement will be higher. to pay close attention to the selection, development and performance management of line managers to ensure they maximise their potential to be engaging leaders. Figure 22: Employee engagement model Meaningfulness of work Supportive Person–job work fit environment Engagement Senior Voice, being management able to feed your communication views upwards and vision Line management 56 CREATING AN ENGAGED WORKFORCE
  • 59. 9 References ALIMO-METCALFE, B. and ALBAN-METCALFE, J. (2006) More KAHN, W.A. (1990) Psychological conditions of personal (good) leaders for the public sector. International Journal of engagement and disengagement at work. Academy of Public Sector Management. Vol 19, No 4. pp293–315. Management Journal. Vol 33, No 4. pp692–724. BAKKER, A.B. and SCHAUFELI, W.B. (2008) Positive organizational KINNIE, N., HUTCHINSON, S. and PURCELL, J. (2005) Satisfaction behavior: engaged employees in flourishing organizations. Journal with HR practices and commitment to the organisation: why of Organizational Behavior. Vol 29, No 2. pp147–154. one size does not fit all. Human Resource Management Journal. Vol 15, No 4. pp9–29. BAKKER, A.B., SCHAUFELI, W.B. and LEITER, M.P. (2008) Work engagement: An emerging concept in occupational health KONRAD, A.M. (2006) Engaging employees through high- psychology. Work and Stress. Vol 22, No 3. pp187–200. involvement work practices. Ivey Business Journal. March/April. pp1–6. BOYNE, G.A. (2002) Public and private management: what’s the difference? Journal of Management Studies. Vol 39, No 1. MACLEOD, D. and CLARKE, N. (2009) Engaging for success: pp97–122. enhancing performance through employee engagement. London: Office of Public Sector Information. BOYNE, G.A., JENKINS, G. and POOLE, M. (1999) Human resource management in the public and private sectors: an MAY, D.R., GILSON, R.L. and HARTER, L.M. (2004) The empirical comparison. Public Administration. Vol 77, No 2. psychological conditions of meaningfulness, safety and pp407–420. availability and the engagement of the human spirit at work. Journal of Occupational & Organizational Psychology. Vol 77, COHEN, G.M. (2008) Connecting with the larger purpose of No 1. pp11–37. our work. Journal of Pharmaceutical Sciences. Vol 97, No 3. pp1041–1046. PARKER, S., WILLIAMS, H. and TURNER, N. (2006). Modeling the antecedents of proactive behavior at work. Journal of Applied CONWAY, E. and MONKS, K. (2009) Unravelling the complexities Psychology. Vol 91, No 3. pp636–652. of high commitment: an employee-level analysis. Human Resource Management Journal. Vol 19, No 2. pp140–158. PURCELL, J., KINNIE, N. and HUTCHINSON, S. (2003) Understanding the people and performance link: unlocking the CORPORATE LEADERSHIP COUNCIL. (2004) Driving performance black box. London: CIPD. and retention through employee engagement: a quantitative analysis of effective engagement strategies. Arlington, VA: ROBINSON, D., PERRYMAN, S. and HAYDAY, S. (2004) The Corporate Executive Board. drivers of employee engagement. Brighton: Institute for Employment Studies. DE MELLO E SOUZA WILDERMUTH, C. and PAUKEN, P.D. (2008) A perfect match: decoding employee engagement. Part I: SAYRE, W. (1958) Premises of public administration: past and engaging cultures and leaders. Industrial & Commercial Training. emerging. Public Administration Review. Vol 18, No 2. pp102– Vol 40, No 3. pp122–128. 105. FRESE, M. (2008) The word is out: we need an active SCHAUFELI, W.B. and BAKKER, A.B. (2004) Job demands, job performance concept for modern workplaces. Industrial and resources, and their relationship with burnout and engagement: Organizational Psychology. Vol 1, No 1. pp67–69. a multi-sample study. Journal of Organizational Behavior. Vol 25, No 3. pp293–315. GATENBY, M., REES, C., SOANE, E.C. and TRUSS, K. (2009) Employee engagement in context. London: CIPD. SEIJTS, G.H. and CRIM, D. (2006) What engages employees the most or: the ten C’s of employee engagement. Ivey Business GOULD-WILLIAMS, J. (2007) HR practices, organizational Journal. Vol 70, No 4. pp1–5. climate and employee outcomes: evaluating social exchange relationships in local government. International Journal of TRUSS, K., SOANE, E. C. and EDWARDS, C. (2006) Working life: Human Resource Management. Vol 18, No 9. pp1627–1647. employee attitudes and engagement 2006. London: CIPD. CREATING AN ENGAGED WORKFORCE 57
  • 60. 10 Appendix METHODOLOGY For each of the organisations, online and/or paper versions The data collection for this research has been carried out of the questionnaire were created by the Kingston Business over two years and the data reported come from a variety School research team. They were distributed to our contact of sources, such as research evidence, questionnaire surveys, person at the respective organisation (usually the head of HR face-to-face interviews and focus groups. or the head of engagement), who organised the distribution of the survey to the staff. Employees were encouraged to Early stages of the project included reviewing the academic participate in the engagement survey and asked to complete and practitioner literature and developing research questions. the questionnaires within two weeks. The online version of A research strategy was devised for conducting a series of the survey was created on SurveyMonkey, a software tool in-depth case studies, each involving a questionnaire survey that facilitates the development and administration of online and a number of face-to-face interviews. A rigorous process of surveys. The data from SurveyMonkey were copied into the questionnaire development was undertaken using the academic statistical software package, SPSS, by the research team at literature, previous research by Kingston University and a pilot Kingston University. The hard-copy questionnaires were sent study. Focus groups were also used in some organisations. back to the research team at Kingston University, where the data were entered manually into SPSS for analysis. In addition to the CIPD, ten organisations joined as members of the Kingston Employee Engagement Consortium, which The items in the questionnaire were derived from three has operated as a research and networking group over the sources: two-year period. Out of the ten member organisations, seven participated in the research and data collection, and a • the previous CIPD employee attitude survey, Working Life: partial dataset was collected from an additional organisation Employee attitudes and engagement 2006 (Truss et al in collaboration with a master’s student at Kingston 2006) University. The identity of participating organisations is • Kingston Job Engagement Inventory (KJEI)©, which was confidential, but they are generally well-known names from developed by the research team and validated through a the following sectors: pilot study involving 200 respondents • academic research, sourced by the Kingston Business • government department • manufacturing School research team. • NHS • environmental services • local government • construction Two types of item were used in the survey. The first • government agency • consultancy. requested information about the individual respondent, such as age, gender and education. The second type of item The first set of case studies was conducted during 2008; asked respondents how they think or feel about an issue. the first taking place in March, the second in April, the Each of these items followed the same format using a ‘Likert third in June and the fourth in October. The questionnaire scale’. This gives respondents the opportunity to choose one was standardised across the case studies to allow reliable outcome from a range of five. For example: comparative analysis. Depending on the type of workforce being surveyed, the questionnaire was completed online Please tell us the extent to which you agree or disagree with or in paper format. An interview schedule of work-related the following statement: questions was also developed to guide the interview process in each organisation. An interim report on the preliminary My line manager is an effective leader findings from the first case studies was published with the CIPD in 2009 (Gatenby et al 2009). Strongly disagree Disagree These findings, along with further questions that they raised, Neither agree nor disagree fed into phase two of the research. During 2009, phase two Agree of our research was conducted, involving the second set of Strongly agree case studies, the first taking place in January, the second in March, the third in August and the fourth in September. 58 CREATING AN ENGAGED WORKFORCE
  • 61. Each response was scored in the following way: and take the average score for each person, that is, the total score for that person divided by the total number of items. Response Score For example, if we want to measure a particular factor using Strongly disagree 1 two questions, a participant might respond ‘strongly agree’ Disagree 2 to one question (a) and ‘agree’ to another (b). This gives Neither agree nor disagree 3 them a score for the factor of 5 + 4 = 9. Their average score Agree 4 is the sum of the scores divided by the number of items (2), Strongly agree 5 so 9/2 = 4.5. The 4.5 value is that person’s scale score. This process is used to create composite scales that have a scale The score was stored in the database to be used for analysis. score for each individual respondent. A number of the factors that were measured in the PARTICIPANTS questionnaire, for example employee engagement, are not Across the eight organisations, 5,291 employees participated easily assessed using only one item. A more effective way to in the engagement survey. Table 4 shows a breakdown of measure employee engagement is to use a set of items the sample by a range of sociodemographic criteria. Table 4: Sample information % Gender Male 58 Female 42 Working status Full-time 92 Part-time 8 Age Less than 25 6 25–34 21 35–44 29 45–54 29 55 and over 15 Ethnicity White 90 Mixed 2 Asian or Asian British 2 Black or Black British 3 Chinese 1 Other ethnic group 2 Management role Managing employees 43 Not managing employees 57 CREATING AN ENGAGED WORKFORCE 59
  • 62. Union membership Union member 42 Non-union member 58 Working hours Less than 37.5 31 37.5–46 49 47–50 13 More than 50 7 Educational qualifications No qualifications 8 Other job-related qualifications 6 GCSE or equivalent 21 A-levels or equivalent 13 Other higher education below degree level 16 Degree or equivalent and above 36 Organisation PlasticCo 9 ConstructionCo 3 NorthTrust 8 GovDep 11 LocalGov 23 ServiceCo 22 EnvironmentCo 20 ScienceCo 4 DATA ANALYSIS Statistical testing enables researchers to examine for real, Mean comparisons or statistically significant, differences between groups. As Mean comparisons are used to segment a dataset so that a guide, please note that results for different sub-groups differences between subgroups can be examined, for example generally need to differ by a certain number of percentage the mean levels of engagement for men as compared with points for the difference to be statistically significant, women. Comparisons can then be made to see whether although this will depend on the size of the sub-group there are important differences, such as whether women sample and the percentage finding itself. The tests were are significantly more highly engaged than men. The data performed with a 5% significance level, which means that for mean comparisons were examined to see whether the 95% of the time when we find a significant difference there differences between each group were statistically significant. is an actual difference in the population. Where differences Differences in results for any two groups can be: between two groups are reported, this is because we found them to be significant in this way. • real differences that are unlikely to have occurred by chance • differences that have occurred by chance • small or no differences at all. 60 CREATING AN ENGAGED WORKFORCE
  • 63. CORRELATION ANALYSIS These variables were examined in relation to engagement Correlation analyses were used to examine the strength and with work. Engagement was measured using the Kingston direction of association between two variables. For example, Job Engagement Inventory, which has three components: age and engagement are significantly and positively associated – engagement increases with age. • social engagement • affective engagement REGRESSION ANALYSIS • intellectual engagement. Another form of analysis that was used is regression analysis. This enables us to explore the relationship between two sets In this report, these components were aggregated into an of variables: input or predictor variables, and outcome or overall measure of engagement. Moreover, our measure dependent variables. We wanted to know which variables of engagement also included two dimensions, extent and best predict outcomes such as engagement and performance. frequency. The predictor variables are nine of the scales that assessed Next, analysis focused on the relationship between the perceptions of work and work environment: nine organisational and management scales, and employee engagement (the input variables) and five dependent, or • employees’ satisfaction with HR policies and practices outcome, variables: • senior managers’ style of communication • senior managers’ effectiveness • individual performance • line managers’ respect for and treatment of employees • innovative work behaviour • having opportunities to get involved in matters that affect • intention to quit individuals’ work • work sustainability • feeling that the job is personally meaningful • employee well-being. • having clear objectives • getting the right support from colleagues and supervisors Regression analysis examines the likelihood of association • feeling of being in the right job. between variables, that is, the degree to which the relationship is likely to have occurred by chance. A significant relationship The nine scales were chosen because they have been is one that is highly unlikely to have occurred by chance and identified in previous research as the key factors associated is therefore important. Regression also shows the direction of with engagement. Each scale is itself representative of association between variables. A positive association is when several issues. For example, managers’ respect for and a high score on one variable is associated with a high score treatment of employees encompasses whether a manager on the second variable, for example high levels of perceived listens to ideas and suggestions, whether they make meaningfulness of work being associated with high levels of employees feel valued and whether they communicate engagement with work. A negative association is when a high effectively. The breadth of each scale needs to be considered score on one variable is associated with a low score on the when looking at the results of the regression analyses. other variable, for example high levels of perceived engagement with work being associated with lack of intention to leave an organisation. In sum, regression equations show which of the input variables best predict the value of the dependent variable. CREATING AN ENGAGED WORKFORCE 61
  • 64. Issued: January 2010 Reference: 5097 © Chartered Institute of Personnel and Development 2010 Chartered Institute of Personnel and Development 151 The Broadway London SW19 1JQ Tel: 020 8612 6200 Fax: 020 8612 6201 Email: cipd@cipd.co.uk Website: www.cipd.co.uk Incorporated by Royal Charter Registered charity no.1079797