Are you placing an emphasis in 2013 on building a member centric culture? At Allegacy, we continue to do so and recognize that this must include having our employees engaged in the process. Why is employee engagement so important? Well, there are lots of statistics about the importance of employee engagement and, according to Gallup, over 23 million US workers are actively disengaged. These are record levels and will impede business results. Therefore, there are a number of reasons to invest and continue your organization’s focus on employee engagement. The list below is derived from an article by Stan Phelps, “Ten statistics reveal why employee engagement is more important than ever.”
Throughout our member experience project, I’ve noted that ‘culture drives results.’ This can be validated in Phelps first stat that “If organizations increased investment in a range of good workplace practices which relate to engagement by just 10%, they would increase profits by $2,400 per employee.” What are we doing at Allegacy to invest in workplace practices? A couple of examples include a strong wellness program, competitive pay and benefits, and a focus on employee development and training.
The second stat is “Engagement and involvement are critical in managing change at work. 9 out of 10 of the key barriers to the success of change programs are people related. 75% of leaders have no engagement plan or strategy even though 90% say engagement impacts business success.” At Allegacy, we are mitigating the barriers to change by focusing on improved internal communication and building a very robust project management process.
The third stat is “Engaged organizations grew profits as much as three times faster than their competitors. They report that highly engaged organizations have the potential to reduce staff turnover by 87% and improve performance by 20%.” Employee turnover has been a key measurement for Allegacy for a number of years. We are focused to ensure we are maintaining a healthy turnover rate and focused on understanding the root cause of an employee’s decision to leave.
Exit interviews tie into the fourth stat on employee engagement. A barrier to employee engagement is the issue of “I’ve got a problem with my boss.” Did you know that 75-80% of employees leave their employer because of relationship issues? We’ve often heard that, most often, people do not voluntarily leave their jobs; instead, they quit their bosses. According to Phelps’ article, this is true 75% of the time.
The last stat we will cover today is the question of ignorance or apathy. 69% of employees are ‘not engaged’ or ‘actively disengaged.’ Do you have employees who have expressed (verbally or non-verbally) ‘I don’t know and I don’t care?’ If so, you may want to ‘coach up or coach out’ as these employees are impacting your organization’s success and member experience.
In the next blog, we’ll focus on the remaining five reasons your credit union should keep a focus on employee engagement.