Scenario
Employee engagement is a longstanding “hot topic” in our industry and a key concern for corporations during trying economic times. Towers Watson’s World at Work 2009/2010 U.S. Strategic Rewards Survey results showed:
• A nine percent decline in employee motivation since 2008
• 36 percent of top performers said their employer’s situation had worsened
• 20 percent fewer people would recommend their company as a place to work
Despite the heightened focus, companies still struggle with these questions: Why invest in employee engagement? Where do you invest for the greatest impact? What’s the tangible business value of internal communication?
To address these questions, companies frequently establish basic perception measures (e.g. awareness, understanding). But those measures do not demonstrate a causal link between public relations programs and business metrics e.g. productivity, customer service, profit, market share. By public relations, we mean the development of communications strategies and tactics designed to foster relationships between an organization and its publics, in order to achieve mutually beneficial outcomes.
Northwestern Mutual’s pioneering work addresses this challenge. Emerging from the global financial crisis, at a time requiring elevated employee performance, the company launched the “Motivated Workforce Pilot.” Using research and analytics, we identified a set of leadership behaviors- “soft” performance measures- that predict productivity at Northwestern Mutual. We tested and proved this link through a controlled pilot, making a case for the company’s future investment in employee engagement. This approach arms PR practitioners with a compelling example, demonstrating the impact of internal communications on business performance.
Source: https://instituteforpr.org/wp -content/uploads/10Winner_McDonald.pdf
Task 1
Critically discuss the importance of investing on employee engagement and relations in light of current situation and future challenges of Northwestern Mutual. [20 Marks]
Task 2
Critically discuss the main factors driving the need for employee engagement and relations strategy within an organisation. [20 Marks]
Task 3
Identify and critically analyse the challenges of managing employee engagement and relations in an organisation. [20 Marks]
Task 4
Propose employee engagement and relations strategies to improve long-term business performance and productivity of Northwestern Mutual. Provide valid rationale for your proposal.
Solution
1.0 Introduction
Employee engagement is an effective strategy to create long-term relationships with employees in an organisation for a long run. The company has to identify the changing needs and arrange appropriate investments. Appropriate investment at the right time is mandatory to enhance the visibility of satisfaction and employee retention. Of course, organisational productivity and performance can also be improved through better employee engagement.
1.1 Northwestern Mutual
Northwestern Mutual is a prominent financial consulting company in the United States of America. The company is providing services such as retirement planning, education planning, income and asset protection, long-term insurance, and business planning. However, the internal business environment of the company has become a big challenge for the management. It has been revealed that the employee motivation decreased with time. In the United States, 36% of employees said that their employer’s situation had worsened. The firm is facing an increase in employee turnover
1.2 The concept of Employee engagement
The employee engagement is an emotional commitment of employees to the organisation and its objectives. It seems a fundamental idea to observe the nature of the relationship between employees and the organisation (Bingham, 2016).
1.3 Aim and structure of this report
The report aims to describe the need for investment in employee engagement, and it’s essential in an organisation along with several organisational theories and concepts. After introducing the concept, Importance of investment will be illustrated along with appropriate theories. Also, task 2 will elaborate factors driving the need for employee engagement. Some challenges of managing employee engagement and relations will also be a part of the report. Finally, the report will propose employee engagement and relations strategies along with some conclusive statements and recommendations.
2.0 Task 1 – Importance of investing in employee engagement and relations
Spending on employee engagement is essential for an organisation. Northwestern Mutual can get many business benefits, especially in the internal business environment. The investment is significant because it can help to streamline the efforts of its best employees at the workplace and retain them for the long term. Containing emotional and sentimental attachments with employees in every aspect of the business will increase the employee assertiveness to work for the company effectively. Investing in employee engagement and relationships can enhance the visibility of employee satisfaction, productivity, and organisational profitability (Kaliannan and Adjovu, 2015). Well-engaged employees will work as a family in this company. Investing in good relations with employees will decrease absenteeism, and it will create a positive impact on work, performance, and profitability. The most important thing is to achieve the loyalty of the best employees, and pertinent investments can do it for the company (Williams, 2014).
2.1 Self-determination theory (SDT) and employee engagement
The self-determination theory is associated with employee engagement in an organisation. Self-determination theory indicates the internal forces of an individual to behave in a certain way. Interestingly, the employee can be motivated without external interference and influence. It has been revealed that employees need personal growth and fulfilment top to depict motivation, satisfaction, and loyalty. This theory is integrated with employee engagement, as Northwestern Mutual can assess internal needs and expectations of employees to engage with them effectively and increase the motivation (Lee and Michael, 2015). Employee engagement can be done by creating the culture of appreciation, mutual understanding, and well-organised delegation to justify the internal needs of the employee. The most important thing for the company is to assess the needs of an employee beyond rewards and the momentary benefits (Gennard et al., 2016).
2.1.1 Individual outcomes
Individual outcomes are in the limelight in any organisation. Employee engagement is a crucial source of motivation, satisfaction, loyalty, and emotional attachments. The organisation can create different opportunities for employees through employee engagement to enhance career growth and become a prominent contributor to the success of the company. One of the most prominent individual outcomes is the career growth of an individual in the company (Lee and Michael, 2015). If an employee sustains good relation to the management and it can boost confidence and increase the capability to communicate well. Employee engagement is to be combined with the self-determination theory in the company to make individuals relevant to personal and organisational needs. A making employee top performer is one of the primary goals of employee management. It can bring interest and passion for their jobs, and ultimately, it can bring innovation (Abadi and Chegini, 2013).
2.1.2 Organization outcomes
The top organisational outcome is organisational profitability. It has been observed that companies with active employee engagement experience revenue growth, which creates an impact on corporate profitability. The management of the company generally contains some vital goals and objectives regarding the work and employees. Interestingly, employee and organisation outcomes are significant concerns for the administration. A well engaged group of employees has to work according to expectations, goals, and objectives of the company. Organisational efficiency and productivity are priorities of the management in the employee engagement process. Improved employee efficiency and productivity, associated with employee engagement, can make an organisation lucrative and competitive in the competitive era (Bingham, 2016).
3.0 Task 2 – Factors driving the need for employee engagement
Organisations have perceived many drivers regarding employee engagement. The primary driver is the intention of the leadership team of the company. For Instance, the leadership team may intend to make the organisation a great place to work for employees. The great place can be created by enhancing employee interactions and facilitating them to meet personal and organisational needs (Robinson, Perryman and Hayday, 2017). The company needs meaningful work in the financial industry. It is a prominent factor that drives the need for employee engagement. The organisation has to engage employees in every business activity to reduce uncertainties. Meaningful or pertinent work on time is a need of the organisation, which prominently drives the employee engagement need. The firm wants to gain and sustain a competitive advantage in the competitive financial industry. Improving the internal business process seems mandatory to attain this goal. It is possible through improving the work performance of employees. Thus, to enhance work performance, the firm has to engage employees (Glintinc, 2018).
3.1 Organisation culture and meaningfulness
Contemporary business needs the organisational culture’s associations with employee engagement. The administration creates a high-performance corporate culture to derive employee engagement as a key output. By directing behaviours and norms in the company, the employee usually perceives the intention of the organisation or management and contains a specific behaviour. In the high-performance culture, the firm makes an employee feel involved and connected. The best thing that this company can do is to improve the culture of the company to enable employee engagement. Culture streamlines how an organisation performs and behaves in a particular environment. To engage employees effectively and derive meaningful work, the firm needs to cultivate the culture, which streamlines the long-term value (Park, 2012).
3.2 Participative leadership styles
The participative leadership style, often called the democratic leadership style has also emerged as a critical driver of employee engagement. Participative leadership streamlines people’s efforts, ideas, opinions, thoughts, and reservations. The participative management involves employees in the decision-making process to make the final call in the best interest of the company. When making critical decisions and designing strategies for both short and long, there is a need to engage employees in working on several alternatives. Employee’s participation in decision making and strategic planning process can justify the employee engagement. The participative approach brings the culture of togetherness, and it can be observed at the top level and the bottom-line of the company (Gennard et al., 2016).
3.3 Development opportunities and pay and reward
Northwestern Mutual is struggling to create employee growth and development opportunities, and it is due to lack of employee engagement. For Instance, in Northwestern Mutual, employees perceive career advancement and promotions as growth opportunities. Lack of employee engagement restrains the company to analyse the potential and capabilities of employees. Pay, rewards, and promotions are based on employee performance and capabilities. These aspects can be improved by engaging with employees and increasing their potential to become a great contributor (Zwick, 2004).
4.0 Task 3 – Challenges of managing employee engagement and relations
Enabling effective communication has become a significant challenge for the company in managing employee engagement and relationships. Critically, Northwestern Mutual does not have an adequate communication infrastructure, which impairs the communication process. The active flow of information triggers employee engagement. Thus, before setting the employee engagement goals, a clear communication vision is to be created. Maintaining trust is also a key challenge. It looks like a two-way street, and Northwestern Mutual fails to build a relationship on trust. Creating the space for employee growth is a big challenge. Critically, the firm is intended to enhance employee engagement, but integrating with career growth needs more investment and effort. Thus, when making employee engagement strategies, these challenges are to be considered (Bingham, 2016).
5.0 Task 4 -Proposing employee engagement and relations strategies
5.1 Bottom-up Approach
The best employee engagement strategy for Northwestern Mutual is to use the bottom-up approach. It refers to giving value to employees at the bottom- line of the company to drive the organisational process. Northwestern mutual must streamline the decision process at the bottom level. An employee can come up with better ideas, opinions, and approaches. The participative management or leadership approach can be practised at the bottom-line.
5.2 Cognitive Approach
Northwestern Mutual can implement a cognitive approach to engage employees and sustain better relationships. For Instance, it can enable the effective knowledge management process along with the well-directed work delegation. It may increase the employee’s cognition. In decision making and strategy formation, employees can come up with better knowledge than managers or supervisors. Increasing the cognitive capability of employees can improve their assertiveness to propose solutions or alternatives. On the other hand, the management, due to the capability of the employees, will show a willingness to work with employees. It can create a healthy working relationship with employees at the end (Park, 2012).
5.3 Employee Engagement Pulse Program
Northwestern Mutual should implement the employee engagement pulse programs. All five components of this program will create a positive impact on business improvement and productivity. For Instance, the pulse program includes alignment with business strategies, transforming roles and responsibilities, interpreting results with confidence, coaching leaders and managers, and keeping the momentum alive throughout the year (Glint, 2018).
In the first step, the firm has to set engagement goals, which can be aligned with business or corporate strategies. The firm cannot afford the poor-quality or any disruption in different financial services. Thus, it can keep the business performance and improve it with time. The second step or trait is to transform the roles of employees. For Instance, Northwestern Mutual will make different employee teams along with several assigned roles. These employees have to work with managers. It seems a salient tough point for the management to engage or cooperate with employees. Interpreting the result with confidence is an essential trait for the administration. In a team, it can share results and work with employees to improve the job activities. Teaming up employees creates better relations, and it increases the assertiveness to learn more to improve the process. Coaching leaders or managers can be a big move, as far as employee engagement and its association with the business performance is concerned. For Instance, leaders or managers have to integrate with the intrinsic values of people in the internal business environment. It will help us to come closer to employees and work on the same agenda. Keeping the momentum alive throughout the year is a useful trait. Northwestern Mutual can arrange monthly or quarterly celebrations with employees (Glint, 2018).
5.4 Evaluation of the effectiveness of employee engagement strategies
Employee performance is a primary measure to evaluate employee strategies. If the company finds improved behaviour and performance, it indicates the workability and successful execution of these engagement strategies. Also, productivity is also a great measure. The firm can expect an increase in revenue each quarter. High quality work, enabled by employee engagement, will lead to the high return on investment. Thus, performance and productivity are essential measures to rationalise engagement strategies (Bingham, 2016).
6.0 Conclusion and recommendation
In the end, it is to conclude that the employee engagement strategies are necessary to implement in Northwestern Mutual Company to increase business performance and productivity. The culture of the company has to play a vital role in this regard. Shaping the pertinent culture is the right approach to meet objectives. Instead of driving the culture through employee engagement, the form must contain required cultural considerations. After describing the concept of employee engagement, importance, and need for investment and engagement strategies have been elaborated. Several theories such as self-determination theory and participative leadership are used in this report.
Northwestern Mutual must have to create the urgency before forming and implementing the engagement strategies. It has to rationalise the goals of business improvement, productivity, and personal growth to reduce possible employee resistance. Also, the change is highly recommended. With time, Northwestern Mutual has to evolve to adopt new work trends. These are the best strategies for employee engagement. However, the firm must create a flexible culture, which can absorb new employee and work trends in future to be relevant and productive. Through making the strong internal employee force, Northwestern Mutual can put in a position to gain and sustain the competitive advantage.
7.0 References
Abadi, M.V.N.A. and Chegini, M.G. (2013) ‘Process of employee engagement (Concepts and Dimensions)’, Arabian Journal of Business and Management Review, vol. 2, no. 11.
Bingham, C. (2016) Employee Relations: Fairness and Trust in the Workplace, Sage.
Gennard, J., Judge, G., Bennett, T. and Saundry, R. (2016) Managing Employee Relations, CIPD.
Glint (2018) The Step-by-Step Guide to Creating Your Employee Engagement Pulse Program, 1st edition, Redwood: Glint.
Glintinc (2018) Whitepaper: Seven Habits That Are Stalling Your Employee Engagement Programs, 1st edition, Redwood: Glint.
Kaliannan, M. and Adjovu, S.N. (2015) ‘Effective employee engagement and organizational success: a case study’, Global Conference on Business & Social Science, vol. 172, no. 2015, pp. 161-168.
Lee, J.J. and Michael, C. (2015) ‘Drivers of work engagement: An examination of core self-evaluations and psychological climate among hotel employees’, International Journal of Hospitality Management, vol. 44, no. 2015, pp. 84-98.
Park, R. (2012) ‘Cognitive and affective approaches to employee participation: Integration of the two approaches’, Journal of World Business, vol. 47, no. 3, pp. 450–458.
Robinson, D., Perryman, S. and Hayday, S. (2017) The Drivers of Employee Engagement, IES Research Network.
Williams, S. (2014) Introducing Employment Relations: A Critical Approach, Oxford University Press.
Zwick, T. (2004) ‘Employee participation and productivity’, Labour Economics, vol. 11, no. 6, pp. 715– 740.
