Conducting successful 360-Degree Feedback

When used correctly multi source assessment, or 360-degree feedback, is a most useful personal development tool that can be used not just for personal development but also for talent and performance management in a positive sense.  If it is not undertaken independently and confidentially, the process can result in a destructive situation from which it can take some time to recover.

Multi source assessments, 360 degree feedback as the process is more often called, are where feedback is sought by an individual from themselves, his/her peers, customers, stakeholders, superiors and subordinates or any combination. The assessee must always be one of the respondents because their opinion of themselves is at the very heart of the assessment.

Multi-source assessment is a very sensitive activity that touches people to the very core of their personality. As such, it should be completed sensitively and empathically.

In our experience  of conducting multi source assessment for our clients, these are some of the factors that have resulted in a successful outcome.

CULTURE

Organisations that have used multi source assessment successfully have a positive culture, where openness and trust is a given and honest feedback is part of a constructive continuous improvement strategy, in terms of both the organisation and the individual.

CONFIDENTIALITY

Multi Source assessment is best undertaken in a situation where confidentiality can be guaranteed and maintained. The main reason that organisations have come to us to conduct their 360 feedback is that we can provide an external, impartial and anonymous service. This encourages candid responses from all participants.

QUESTIONNAIRE

The questionnaire itself is a major factor in the success of the multi source assessment process. It’s vital that the questions are written in a clear manor, with no element of ambiguity at all. It’s always helpful to include open ended comments, as these often provide excellent insight into the reason for the answers given as well as giving the participant a chance to add their own views. We would recommend that these are optional though, as having to make personal comments can make some people feel uncomfortable.

COMMUNICATION

Organisations should have a clear communication strategy for disseminating the purpose aims and intentions of the multi source assessment project. Crucially, when considering the process, organisations should make sure they have buy-in from all the participants involved before the process is started. We often conduct assessments from the top down, with the senior leadership team undergoing 360 reviews first then rolling out the process to middle managers. This shows everyone in the organisation that the leadership team are leading by example.

SUPPORT

Be supportive of individuals post assessment. Give the assesse time to digest and accept the feedback and ensure they have the opportunity to discuss it in confidence at a time and place to suit them. There may some difficult aspects, but focus on opportunities for the assessee to develop and improve their skills, behaviours and working relationships. Assessees should be able to agree a personal, needs led development plan as a result of the process.

Finally, here are a few ‘Don’ts’ which should go without saying every time…

  • Don’t conduct a 360 for anyone who isn’t fully on-board
  • Don’t link the outcome of the process to merit, pay or reward
  • Don’t use any negative feedback punitively towards the assesse
  • Don’t use the 360 process in isolation, without follow up actions or post-assessment support
  • Don’t compromise confidentiality
  • Don’t produce excessively long, wordy outcome reports that lack clarity

Find out more…

INSPIRING offers a huge range of options when it comes to feedback, from a full 360-degree assessment to a more focused approach. This enables you to choose the option that is best for your business needs, helping you to get the feedback you require. Call us on 0800 612 3098 or email info@inspiring.uk.com for more information.

Want to increase productivity? An Employee Engagement Strategy is a good place to start.

Businesses with an effective employee engagement strategy will be rewarded with greater levels of innovation; increased commitment from employees and, ultimately, better productivity that will impact directly on business performance.

Examples of positive employee engagement practices include:

  • Shared decision-making
  • The opportunity for all people to influence the planning process
  • A robust approach to communicating
  • An open flow of information
  • The development of effective leaders and managers

For this article we thought we would focus a bit more on the people aspect and look at how workplace behaviours and relationships impact on employee engagement levels, which in turn affect the productivity of your team. Here are some of our thoughts on the fundamentals that lie behind a great employee engagement strategy.

Reciprocity

At the heart of the employment relationship is reciprocity. If employees believe that they are supported by their employer (and their line manager) in getting what they want out of work beyond just money, they will respond with positive behaviour.

The right person for the right job

Creating a fit between the needs of the role and the needs of the individual person will help to build a culture which is driven by supportive behaviours that are good for performance and productivity.

Competence & Capability

Make sure that managers have a good understanding of what their team members’ individual competencies and capabilities are. Giving individuals the opportunity to use their skills to the best of their ability will give them great satisfaction whilst the business will gain value by making the lost of them.

Encourage Self-determination

Enable your people to make decisions for themselves at a level appropriate to their role and responsibilities.  Allow individuals to initiate and regulate their own actions whilst ensuring line managers step up to their role of supporting their team members.  It’s about creating a good level of trust within your business, i.e. does the manager trust the team member to do the job?  Does the team member feel trusted?

Impact

Make sure that your people understand the impact they have on business performance as a whole.  At all levels they should be able to describe the contribution they make and the important part they play in the success of the organisation.

 

If you’ve recently started to develop your employee engagement strategy or are looking to revive your existing one the main thing to remember is that it doesn’t need to involve expensive investment or developing a whole new set of policies and procedures. It does however need wholehearted support from your Leadership Team through their leadership and strategic vision, and the active buy-in of effective line managers.

At INSPIRING, we’ve helped thousands of organisations with Employee Engagement issues over the last 15 years and we’d be happy to share our experience with you.

Call us on 0800 612 3098 to find out more or email info@inspiring.uk.com or get in touch using the form.

4 ways to encourage better teamwork in your business

In a teamwork culture, team members work collaboratively to further their team’s objectives, perhaps even placing these objectives ahead of their own individual goals. Organisations where employees work alone or in silos will arguably become less productive over time compared to organisations that encourage teamwork.

The message should come from the top, with your Senior leadership team communicating the clear expectation that teamwork and collaboration are expected. However, there are some key issues which should be dealt with as a team leader or line manager, in order to maintain a positive teamwork culture. We’ve highlighted 4 ways that you can encourage better teamwork, based on both our experience of working with organisations on their employee engagement and leadership development strategies and by looking at trends within the employee surveys that we’ve conducted for our clients.

Leaders are only as good as their teams (and vice versa!)

As a leader or manager, you are setting the tone for the rest of the employees in the workplace and your positive attitude and energy will help to motivate and inspire your team. There is lots of good advice out there on how to be a good team leader but I’ll highlight a couple of issues that often come up in our clients’ survey results.

  1. Try to adopt a coaching approach rather than a ‘do as I do’ attitude, allowing team members to demonstrate what they can do without constant interference. Giving clear instruction without micro-managing will prove to your team members that you believe in their abilities and efforts.
  2. Consistency is key when it comes to managing your team. It’s impossible to build trust amongst your team is there’s perceived favouritism. Make sure team members feel they are treated fairly and equally, and take care not to exclude anyone from group decisions or activities. It seems obvious, but conduct team meetings on a regular basis and allow your team members the opportunity to volunteer or get involved with special projects or tasks.

Encourage open communication

Encouraging a culture of open communication will help develop great teamwork and will undoubtedly have a positive on your team’s overall performance. Communication is often an area which scores poorly in the Employee Surveys we conduct. In our experience, many employees often feel that they aren’t being listened to, whether it’s by their immediate managers or the senior leadership team. Your team should be confident in sharing their ideas, points of view, and feelings and not be afraid of doing so.

Let employees know their contribution is valued by introducing rewards for feedback and suggestions. Encouraging contributions from teams rather than individuals will help get team members working together more closely so make sure you offer rewards for collaborative efforts as much as recognising individual contributions and achievements.

Define and share responsibilities

The more clearly you define your team members’ roles and responsibilities, the more effectively they can meet expectations. The team as a whole, as well as individual team members, must have clearly defined responsibilities and objectives in order to focus their efforts. Your team should be encouraged to recognise each other’s role on the team, helping one another when needed. No one completely owns a work area or process all by themselves. As a manager, make sure your team members have opportunities to cross-train others in the team so that the team’s contribution to the business and service to customers is reliable and consistent. This inspirational quote sums up the point perfectly: “The strength of the team is each individual member. The strength of each member is the team.” (Phil Jackson)

Resolve Conflicts

You spend many hours of your life at work, so getting along with your colleagues is very important. Conflict and ‘politics’ amongst team members is a major cause of stress at work. For example, our clients surveys have revealed instances such as team members arguing in public, others giving each other the silent treatment and where one person was left to do all the work while their team members allegedly ‘slacked off’. As a manager or team leader you’ll need to make sure that any tension is resolved as quickly as possible to prevent long-term damage to your team dynamic. Put in place a clear process for employees to raise and resolve issues, so they know they are being listened to, taken seriously and that issues will be dealt with fairly. Teams which include people that do not get along with one another will quickly collapse, become inefficient and unproductive.

 

Team up with INSPIRING…

At INSPIRING, we’ve helped thousands of organisations with Employee Engagement issues over the last 15 years and we’d be happy to share our experience with you. We are also an approved CMI centre providing leadership and management training at different levels with the option of CMI qualifications.

Call us on 0800 612 3098 to find out more or email info@inspiring.uk.com or get in touch using the form.

The Happy Employee: Transparency

When it comes to the workplace environment it can be difficult to ensure total transparency. The phrase ‘you are the face of the company’ is something that employees often hear, and whilst this is designed to encourage employees to represent the company as best as they can, it is also true.

As an employee, you are responsible for various company procedures, as well as client interactions – acting as a major part of the company. Which is why transparency in business is important; how can you represent your company without total understanding of how the business runs? By implementing transparency in the workplace, you can effectively increase overall employee productivity.

Information

Some companies limit the information that they provide to employees; both client related and internal. By including employees in communication about the company’s profits and achievements, a positive connection is forged – as employees can understand how their hard work contributes to the company’s success. The same can also be applied to losses and any setbacks, as employees will feel invested and increase their efforts to ensure the company gets back on track.

Authority

By providing authority to employees, you can motivate them to become empowered. Employees who are given authority become more inspired to be decisive and take responsibility for their actions, both of which are strong elements in great employee performance. This also reduces time wasted on waiting for approval from a higher authority, and allows employees to continue with the work that they are given at their own pace.

Communication

Giving your employees an opportunity to discuss ways for the company to move forward, improve operations or point out areas that require development, allows you to establish a connection with your team. Show them that management appreciates and values employee thoughts and suggestions. Consider implementing the changes and requests your employees offer, where applicable, as this further cements your relationship with your employees and demonstrates that they are an important part of the business.

Deliver on your promises

As management, it can be easy to offer incentives to your employees to encourage them to work harder and more productively. Whilst these incentives can be an effective tool, often we can forget what we have promised – or put it to the side so we can focus on more important things. However, by not delivering on your promises to your employees, they can become unhappy, resulting in a lower standard of employee performance. By ensuring incentives are given to employees, big or small, and providing everyone with the chance to receive these bonuses, you are ultimately encouraging employees to work harder to receive these benefits.

 

Ultimately, transparency provides your employees with a clear and happy path to success, allowing them to feel valued, supported and involved, whilst ensuring any grievances can be swiftly and effectively handled.

Help your employees beat the January blues

Most people agree January is a pretty miserable month. This year, Monday 20th January is Blue Monday – scientifically (or not as the case may be!) the most depressing day of 2020. But in all seriousness, business should recognise the risks associated with not managing employees health and well-being effectively. We’re sharing our thoughts about three subjects that contribute to stress in the workplace and have a negative impact on the well-being of your staff.

MINIMISE STRESS THROUGH A HEALTHY WORKPLACE CULTURE

It’s no surprise that stress is the number one cause of long-term absence. According to HSE statistics, in 2018/19 there were 0.6 million new or long-standing reported cases of work-related stress, depression or anxiety in the UK.  In 2018/19,  12.8 million working days lost due to work-related stress, depression or anxiety.

Pressures and stresses can come from both work and home. At work there are often heavy workloads and long working hours, while at home there can be financial stresses, lifestyle pressures and general family concerns, all of which have an impact on the way people feel and act at work.

Employers should consider the mental, as well as physical, wellbeing of their employees, focusing on prevention rather than reacting to some of the possible outcomes such as high staff turnover, high absenteeism rates and the associated business costs with both of these.

The introduction of flexible working or flexi-time can help employees deal with stress by allowing them to balance their work and personal lives more effectively and reducing the need to take time off. Businesses should also ensure managers at all levels of an organisation are supportive and empathic. Awareness, encouragement and recognition are important, as feeling valued and appreciated provides a key extrinsic motivator which can have a positive impact on a person’s well-being.

Visit the HSE website for more information about dealing with workplace stress: http://www.hse.gov.uk/stress/

LIMIT OUT OF HOURS COMMUNICATIONS

Just about everyone is contactable all of the time these days. Often it’s hard to ignore those emails and messages when they come in, even if it can wait until Monday morning. As an employer or manager, it might be worth taking a moment to think about how sending emails out of hours might affect the recipient and put them under unnecessary pressure. If you don’t require an immediate response but just want to tick it off your ‘things to do’ list, consider setting up a time delay or create a draft to send early the next working day instead.

DISCOURAGE PRESENTEEISM

Presenteeism, where employees continue to come into work when they are unwell, can be a big issue for employers. A member of staff who is not fully fit enough to engage at work may be physically present but will not be making a proper contribution to the business, impacting not only the quality and quantity of the work they produce but affecting the overall working atmosphere, including for the people around them.

‘Presenteeism’, or people coming into work when they are ill, has more than tripled since 2010, according to the latest CIPD/Simplyhealth Health and Wellbeing Survey. The survey reports that 86% of over 1,000 respondents said they had observed presenteeism in their organisation over the preceeding 12 months, compared with 72% in 2016 and just 26% in 2010. Having unhealthy people at work could create a vicious cycle, with more employees falling ill after catching a cold or illness from sick colleagues.

Presenteeism is more likely to occur there is a culture of working long hours and where the demands of the business take priority over employee wellbeing. Employers should take action to make sure that the culture of the business supports employees as recognising the importance of healthy, happy staff will lead to business performance improvement across the board.

Do something about the wellbeing of employees in your organisation…

INSPIRING provide a range of support for organisations looking to improve their Health and Wellbeing culture, including Employee Surveys, Leadership and Management Development and consultancy services to help implement BS 76000 – Valuing People standard.

How to Create Effective Learning Within Your Organisation

Providing effective learning within an organisation is a necessity, both for employees to help them reach their potential and for the organisation to grow as a whole.

To ensure effective learning is taking place, organisations should consider reviewing what is on offer for each employee and the different methods of learning available. You will not want to waste time and resources trying to teach employees in ways that are not going to be the most beneficial. Creating effective learning enables the right learning techniques to be applied to the right employees to make learning as efficient as possible.

How to Determine Effective Learning Techniques

One of the best-known learning techniques is from Kolb’s Learning Cycle (1984).

Effective Learning

The Learning Cycle claims that effective learning happens when the individual being trained has experienced the training either in a hands-on capacity or within a training course. They then have interpreted this for themselves and gone onto digest it and understand what they have been taught. The last step is implementing their new knowledge.

To understand this cycle more clearly an example is when a child learns that a fire is hot. They learn by putting their hand near to a fire and it will hurt them and therefore they will not do this again. Thereby effectively completing the Learning Cycle.

Learning Styles

Understanding that different individuals have different preferences is key to Honey and Mumford’s (1982) Learning Styles theory. They developed the idea that as individuals, we prefer one of the four stages of Kolb’s Learning Cycle more than the others. This is to say that we are more receptive to training in our preferred element.

Theorist

These individuals like the theory behind things. They need to draw upon concepts and facts to fully engage with learning. They prefer to be challenged intellectually by information and create their own theory or conclusions.

Methods of Learning

  • Models
  • Quotes
  • Facts
  • Statistics
  • Theories
  • Background Information

Reflector

These people like to learn by watching others. They prefer a back-seat role where they can see what others are doing. They like to be at the edge of activities to observe, this allows them to collect multiple pieces of data and draw their own conclusions from watching activities from different perspectives.

Methods of Learning

  • Self-analysis
  • Observation
  • Feedback
  • Coaching

Activist

These learners like to be thrown into the deep end. They love to be put straight into activities. They have an open-minded approach and are open to new experiences and different ways of working. They often find success in crisis situations.

Methods of Learning

  • Problem Solving
  • Puzzles
  • Role play
  • Group Activities

Pragmatist

Pragmatists need to see how things work in the real world. They find it hard to relate to activities that are not true to life. They constantly seek an opportunity to put what they are learning into practise to see if it holds up. They focus on outputs and implementation.

Methods of Learning

  • Problem Solving
  • Ability to test the training
  • Case Studies
  • Discussion

Using learning styles to facilitate effective learning

Effective learning is the result of identifying what learning style suits an individual and allowing them to learn in that way. There are many free online Learning Style Questionnaires. It would be beneficial before starting any training within the organisation to discover how your employees learn the most efficiently. The Learning Styles are a very good indicator for how well employees will respond to certain training methods. Despite this, just because they have a preference does not mean they are incapable of learning through other methods. When conducting training, the focus should always be on the training and trying to effectively deliver it to employees. Sometimes training cannot be delivered in a way that some employees will enjoy that is just a fact of life. But, for the most effective learning it is beneficial to try and alternate learning styles.

10 Alternatives to Training Courses for SMEs

With the business world being as competitive as it is, employers are discovering that the main thing that can help differentiate them is their people. Developing, or ‘up-skilling’, employees is now more important than ever. Gone are the days where training courses focused upon just the necessities and regulations of the job role; we are now seeing more forward-thinking employers who are looking to uncover talent within their people which, in time, will give them the advantage over their competitors.

We know that making sure your employees are up to speed with what is required of them is vital, so training in that respect will always be a necessity. However, with some training courses coming in at a high cost, SMEs could find it hard to find the budget for broader training and development, often having to weigh up the cost of training courses against other necessities in their annual budget.

With this in mind, we’ve put together some alternatives to training courses that SMEs could investigate that might help implement learning and development and nurture talent at a lower cost.

Coaching

This is effective if the employee has a specific objective or area of development that they need to target.

Mentoring

An effective technique when there is already an individual within the organisation with the expertise to develop potential. This enables transfer of knowledge and ways of working.

Shadowing

A great way of helping an employee explore different aspects of the business. It is beneficial to watch someone else demonstrating what is required of them, then reflecting on what they have learned. They can then discover the effectiveness of their ways of working and even make suggestions for improvements, which could be mutually beneficial. This could be a reciprocal arrangement whereby one colleague shadows another in turn, allowing for feedback on both.

Expanding Roles

By expanding an employee’s current role, they are likely to develop longer term aspirations and invest more into the organisation. Also, they will come to realise what areas they need to improve in and, given the opportunity and with support, can start to address these.

Project Roles

Putting an individual forward for different project roles helps to broaden their perspective, whilst encouraging interaction with new areas of the business can aid their development. It may even result in hidden skills being identified.

Practical Learning

If an individual has been given a new task or responsibility, they may be able to learn on the job providing they are properly supported. It is important however that they have the confidence to ask managers and colleagues for support and advice whilst they are learning.

Distance and E-Learning

There are specific college and online courses, some of which are free, where the individual learns in their own time and at their own pace. These can include accredited courses, which build towards a qualification.

Volunteering

Giving employees the opportunity and time off to volunteer may help to develop existing skills and learn new ones. Volunteering could help people build their confidence, as it is a less pressurised environment. It may also lead to networking opportunities.

Blended Learning

This is where the focus is not on one development area but a variety. By using Blended Learning, it gives the employee a mixture of different activities to develop many skills over a short space of time.

Media

There is a wealth of information available on platforms such as YouTube and watching specific programmes can help gain useful knowledge.

Books and publications

In the modern world there is a neglect of written texts. These books and other resources hold a valuable knowledge and theories that can help employees develop. However, for convenience and accessibility, there are often PDF copies of these resources available.

Other Notables

Membership of professional bodies, work placements, sabbaticals, sideways moves and job swaps.

 

People development will always be needed if SMEs are to stay ahead of their competition. But we also know that funding for all these development activities is often limited, therefore thinking outside the box and using alternative methods of learning and development are definitely worth looking into.

Satisfied staff equals satisfied customers equals business growth

There has been extensive research over the years that sets out to prove that improving employee satisfaction impacts directly on organisational performance and, ultimately, organisational success. It's certainly true that satisfied staff are likely to result in a satisfied customer base, and satisfied customers directly impact on the bottom line.  

If employees believe that they are and will be supported by the employer, especially  their line manager, in getting what they want out of work, beyond just money, they will respond with positive behaviour – high employee engagement levels. Specific employee engagement practices include:

  • Shared decision-making
  • The opportunity for all people to influence the planning process
  • A robust approach to communicating
  • An open flow of information
  • The development of effective leaders and managers

What’s the impact of Employee Engagement on the bottom line?

Past research has thrown up many different finding in terms of putting the impact of employee engagement into figures. Aon Hewitt’s 2014 Engagement Report examined the link between engagement and its impact on a business’ bottom line, finding that organisations in the top quartile for engagement, where more than 70% of employees are engaged, saw a 4% increase in sales growth compared to an average company. By contrast, sales growth in bottom quartile engagement companies was down 1%.

In  a recent article for Forbes, Kevin Kruse points out the argument that “Maybe employees are just more engaged when their companies are growing, bonuses are big, and stock prices are climbing.”. However, this viewpoint has been investigated in a research paper by Silvan Winkler, Cornelius König and Martin Kleinmann.  New insights into an old debate: Investigating the temporal sequence of commitment and performance at the business unit level  looked at the organisational commitment of 755 retail bank employees from 2005—2008, along with financial performance and customer satisfaction of the business units they worked in. The study provides insight into the relationship between job attitude and job performance, finding that while the impact of business performance on attitudes diminishes after 1 year, the impact of employee attitudes on business performance lasts much longer, in fact up to 3 years.

Organisations that place effective employee engagement at the heart of their business strategy will be rewarded with greater levels of innovation; increased commitment from employees; improved customer satisfaction and, ultimately, better productivity that will help gain competitive advantage. It does not require complex or expensive investment in new ways of working but it does need wholehearted support from senior managers through their leadership and strategic vision, and the active buy-in of effective line managers.

INSPIRING Business Performance provides valuable, practical advice for organisations who want to improve employee engagement or look more generally at achieving performance improvements.

 

Why people choose to leave your business

Understanding why people leave your business and having the strategies in place to deal with issues effectively is crucial if you want to retain your best employees. We're looking at the most common reasons why people choose to move on and how you can ensure your organisation is a place where people can see themselves working long term.

The culture within your organisation impacts on the happiness and satisfaction of your employees. It also strengthens, or weakens, employee retention and affects how your business attracts new talent. We’ve given three factors that have a huge impact on employee retention rates and suggested how practices in these areas can be improved.

LACK OF MANAGER SUPPORT

Unsupportive managers are a key reason for people leaving. It’s a common saying that people leave their manager, not their job.

The skills and behaviours required for leaders and managers are different. An inspiring leader has a clear and compelling vision for the organisation, engaging their team and encouraging increased productivity. An Inspiring Manager will be able to set objectives and communicate effectively to their team, helping them to work together and achieve their goals.

John Telfer, Managing Director of Inspiring says “Many businesses experience the problem of Accidental Managers: people who are promoted to management positions due to their technical skills, but who don’t have the people skills to manage a team effectively.”

Honesty and openness from managers is key to effective people management. Managers should communicate with their teams regularly regarding action plans and progress against them; operational activities and milestones. Make sure all managers are arranging regular, documented team meetings or one to ones to ensure that everyone is being given the opportunity to give and receive feedback or express any concerns.

NOT FEELING VALUED

Employees will leave if they are disengaged and don’t feel appreciated. Reward and recognition isn’t always about money. Of course, everyone would like to get paid more for what they do, but other important factors for job satisfaction include opportunities to:

  • grow and learn new skills;
  • to progress their career;
  • to work on challenging and stimulating projects;
  • to feel that they are an important a part of the overall business; and
  • to be acknowledged and praised for their efforts.

People can change the culture of an organisation by recognising each other’s contribution.  Employees who take the time to acknowledge and praise other employees for their good work will often find their praise is returned.  Why not ask for suggestions from your team for new ways to celebrate success?

LIMITED CAREER PROSPECTS

You will have a better chance of holding on to your employees if you have plans in place for talent management, succession planning and learning and development. Spotting employees with leadership potential and helping them to develop their skills and behaviours will reap big rewards for both the individual and your organisation. Have a look at our article ‘How to identify future leaders in your organisation’ for more about this.

Taking the time to talk to people and find out the areas that they want and need to develop will not only assist you in planning effective training development programs, but also shows that you value your people by making an effort to create the best learning environment for them.

It may be that opportunities are limited for climbing the promotional ladder, in which case you could implement a mentoring programme to help retain your best people and demonstrate that your organisation is investing in their career.

 

Team up with INSPIRING…

The best way to find out why people choose to leave your organisation is to ask them! Conducting Exit Surveys will help you understand why employees leave, enabling you to identify any problem areas. INSPIRING’s bespoke exit surveys, with reports tailored to your business, will help you to understand and reduce staff turnover.

Want more sales? Have happy employees

An unhappy workforce is something your customers will pick up on and will undoubtedly impact your sales. In addition, unhappy employees usually unproductive employees. It’s therefore crucial to dedicate resources to ensuring your employees are happy in their work.

Happy, productive employees

There’s plenty of evidence around relating to the link between employee engagement and productivity. A study from the University of Warwick suggested that happy employees were 12% more productive. The research was carried out by Professor Andrew Oswald, Dr Eugenio Proto and Dr Daniel Sgroi from the Department of Economics at the University of Warwick. Professor Oswald said: “Companies like Google have invested more in employee support and employee satisfaction has risen as a result. For Google, it rose by 37%, they know what they are talking about. Under scientifically controlled conditions, making workers happier really pays off.” Dr Sgroi added: “The driving force seems to be that happier workers use the time they have more effectively, increasing the pace at which they can work without sacrificing quality.”

Happiness and your bottom line

When it comes to the impact of employee happiness on sales, research by the Hay Group found that organisations scoring within the top 25% for employee engagement achieve 2.5 times the revenue growth of organisations in the bottom 25%. The Hay Group reported more evidence of the positive impact of employee engagement, finding that high engagement levels can reduce employee turnover by 4%, which reduces recruitment costs. It also found a direct link between employee engagement and customer satisfaction, suggesting that employees who are happy at work will often go the extra mile when it comes to customer service (backing up the theory behind the title of this blog!).

Valuing your people

The key to employee happiness is balancing the value that you place on your employees with the value that they get out of working for your organisation. If your business plan includes a strategy for valuing people and ensuring the happiness of employees, the benefits could be huge. For example, more ideas, greater commitment, improved customer service and, ultimately, better productivity that will help to gain a competitive advantage.

If working for your organisation creates a valuable experience for your employees, they are more likely to remain loyal and put in extra effort.  The result of that extra effort is an employee whose value to your organisation far outweighs their cost.

This may sound like the holy grail of employee relations, but it really doesn’t require complex or expensive investment in new ways of working. What it does rely on is wholehearted support from your senior leadership team, through their vision, leadership and communication.

Team up with INSPIRING

INSPIRING provides valuable, practical advice for organisations who want to improve employee engagement or look more generally at achieving performance improvements. Take a look at our employee surveys, leadership programmes or find out more about BS 76000 – the British Standard for Valuing People. Get in touch using the form on the left, email us or call us free on 0800 612 3098.