Friday, October 23, 2009

How to improve employees' engagement?


Employee engagement faces challenges in a workplace in pursuit of ever higher productivity metrics, with limited resources and the necessities of a politically correct society. We can easily make up a directory of excuses why it can't be done. In most managed workplaces, there is no agenda for employee engagement or not enough concern for it.

In truth, it is a matter of leadership. If leadership is the set of abilities and skills that gives someone the vision and charisma to influence a group of individuals towards a common goal, then leadership fails when employees' engagement fails.

In the restaurant industry, for instance, there is a definite lack of leadership at the unit level. Managers concern themselves with food cost, liquor cost, ... and labor cost, when in fact they should be more focused on employee engagement for three main reasons.

First, if they truly paid attention to their costs in order of importance, labor cost should come to the first place. If they add up direct wages, indirect wage expenses and training expenses, they would realize that labor mounts up to half their sales and more. So if they were to spend their time in proportion of their cost structure, employees’ engagement would certainly become a priority.

Second, other costs such as food, supplies, non-ingredients, risk management and even energy costs can be related in function of labor. A qualified and motivated cook is more likely than not to operate a clean and efficient kitchen. But this requires proper interviewing and selection procedures, complete orientation and training programs and, an engaged leadership with a vested interest beyond metrics. All of this is about the employee. And the same goes with theft, waste, breakage and other leaks than mount up to 5%-8% of annual sales. But if managers were to become relationship-oriented leaders, they would ripe long term profits in terms of cost savings.

Finally, if leadership concerned itself with their connection with employees, it would better understand their frustrations and motivations. This presupposes a good dosage of emotional intelligence; which is the ability to read, interpret and act upon non-verbal communication clues. And with that emotional intelligence, leadership would have a better grasp on how Maslow's hierarchy of needs applies to their own employees' motivations and sense of purpose within the organization.

So, as we understand that management leadership is essential in prioritizing labor related cost, in total cost containment and, in staff motivation and sense of purpose within the organization, we can grasp how leadership is the common denominator in all solutions to employees' engagement.

But leadership skills, when they don't figure in the manager's total performance evaluation, don't compute in his own work ethics. Furthermore, since leadership values are not taught in this specific environment, how could we expect managers to behave as leaders?

I view the solution, to improving employees' engagement, as the teaching of leadership skills to front line managers. If it is expected of them, they will come though. Make them understand that the measure to which they treat their employees, their employees will treat the customers.
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