Data from Hewitt Associates’ 2010 Best Employers in Canada study indicate that average employee engagement is higher than it was a year ago—69% versus 65%. The fact that employee engagement increases during an economic downturn is not unexpected, since one of the determinants of engagement is a willingness to remain with one’s current employer. When there are fewer options, many employees are glad to stay put and hold on to the jobs they have.
However, the “stay” factor is only one of three behaviours that determines the level of employee engagement. The other two are how positively employees speak about their employer to others, and how well the company motivates them to go above and beyond to contribute to the success of the business. When employees respond positively to questions relating to all three factors, then they are considered engaged. The average engagement score for the organizations that rank among this year’s 50 Best Employers is 80%, up from 76% in 2009.
Engagement During Tough Times
Intuitively, it makes sense that having all three factors in place would be beneficial for business—particularly during a recession. Findings from the Best Employers in Canada study confirm this theory. Those organizations with high engagement stated that their employees exhibited the following behaviours during the recent downturn.
Support for improving productivity – Employers reported, for instance, that employees endorsed the introduction of new technologies and processes to help improve business.
Willingness to make trade-offs – For example, in several cases, employees opted for reduced work hours for all staff rather than having some co-workers laid off.
High trust and confidence in leaders – Employees truly believed that their leaders were the right people to confront and overcome the issues faced in a challenging environment.
There was one trait common to all high-engagement workplaces: open, transparent, complete and timely two-way communication. Employees were aware of the challenges that the organization was facing, understood the possible solutions, proactively offered input and committed to the course of action that the organization’s leaders decided to follow.
Theory in Action
Exactly how does having high employee engagement help an organization recover from a recession? Several of this year’s Best Employers in Canada weighed in on how having a highly engaged workforce has benefited them during a difficult period.
Cisco Canada is one of the 50 Best Employers in Canada for 2010. Willa Black, vice-president, corporate marketing, has worked at Cisco for the last decade, describing the work environment as “energized, collaborative and fun.” And communication is key. “Our discussions are from the top down, from the bottom up and from the middle out,” says Black. “Our employees have a very good idea of what they need to do to help us achieve our goals. But our leaders don’t micromanage; employees figure out themselves how to get there. This allows good ideas to rise to the top.”
The ability of employees to control their own destiny stood Cisco Canada in good stead during the recession, according to David Clarkson, director, HR. “The economic downturn was a serious time of reassessment for our company,” he says. “We’d experienced a downturn in 2000 and knew the impact it could have on our business. However, we didn’t dwell on the negative in our communication with employees. Rather, our leaders focused on how to turn that negative into a positive—how we could gain market share even during a recession.” Cisco employees rose to the challenge. “Our employees have great faith in Cisco as an innovator, and our culture is very results-oriented,” Clarkson adds. “‘I can’t’ isn’t part of our DNA.”
High employee engagement also pays off through indirect financial benefits. “Turnover is negligible at Cisco Canada,” states Clarkson. “Employees are almost apologetic if they decide that they want to pursue another avenue and leave the company.” After two or four years, those who stay may get an unusual message: it’s time to move to another role within the company. “We talk to our employees about a career at Cisco,” adds Black. “Managers provide opportunities for job shadowing, mentoring and virtual learning. As a result, 60% to 70% of our open positions are filled by internal candidates.”
Meyers Norris Penny (MNP) found it important to stay the course in a time of economic uncertainty. This national firm of chartered accountants and business advisors did so by remaining true to its values as a firm, continuing to focus on maintaining team member engagement and providing great service.
“There’s no doubt that the downturn was a challenging time for us and our clients, but we didn’t let that affect any of our usual HR programs,” says Bob Twerdun, vice-president, human capital, with MNP. “For instance, we continued to provide developmental opportunities—an area where some organizations made cutbacks. Doing so enabled us to reinforce the message to our employees that they are valued, even if compensation increases were lower than in past years.” The firm also provides financial assistance for continuing education courses, as well as its own training through “MNP University” (a formal mentorship program) and a leadership development program.
Given their expertise, MNP employees were highly attuned to the state of the economy. “We were concerned that being so aware of all of the implications of a recession might result in added stress or despondency,” Twerdun remarks. “Our team members continued to make use of our Balance@MNP program—a wellness program that provides financial support for activities that relate to physical, mental or emotional wellness. In addition, we closely monitored our employee assistance plan usage but were happy to see that there was no increase.”
“You can’t fake passion, and our employees are passionate about their work and helping our clients,” he adds. “By continuing to provide HR programs that help fuel that passion throughout the recession, our team has remained engaged. We’re ready for economic recovery.”
Scotiabank prides itself on a 177-year history as a successful and ethical organization. According to Cory Garlough, vice-president, global employment strategies, Scotiabank’s strong commitment to its values supported the company when other financial organizations around the world faltered during the recession, enabling it to maintain high employee engagement and customer loyalty.
High employee engagement is very important at Scotiabank. “Employee engagement is an integral part of the profitability cycle,” explains Garlough. “By focusing on maintaining and even increasing engagement, we know there will be a positive impact on customer satisfaction and on our revenues.”
Despite six consecutive years of recognition as one of the Best Employers in Canada, Scotiabank doesn’t believe it has employee engagement down pat. “Engagement levels can vary from one year to the next as a result of the economy or demographic changes,” says Garlough. “But if high employee engagement is at the core of an organization’s people strategy, it is better able to identify evolving needs and make adjustments accordingly.”
Garlough wasn’t surprised that overall employee engagement at Scotiabank increased over the last year. He acknowledges that part of that rise is undoubtedly due to the fact that many people were glad just to have a job. “It wasn’t enough for us to simply rest on the fact that engagement had gone up; we wanted to know why. The answer has confirmed that we have the right programs in place to keep good talent as the economy rebounds.”
Garlough adds, “Scotiabank is a complex organization with 39,000 employees in Canada and 68,000 globally. Our workforce is diverse in many ways, including functionally and geographically dispersed. Nevertheless, we want all of our employees to have the same positive work experience, and we have taken steps to drive engagement in all areas of our business.”
LoyaltyOne found that achieving success during the recession did not require a revamping of workforce disciplines; it was more a matter of applying them with greater intensity. “We stepped up our employee communication efforts during the downturn to address increased uncertainty,” says Sofia Theodorou, vice-president, HR. “But we were careful to balance ‘straight talk’—the facts about what the company was doing and why—with inspiration, so that employees would be motivated to reach higher.”
It was essential to provide employees with more opportunities to voice their opinions and share their ideas. “If managers were going to ask more of them, our employees needed the flexibility to suggest action that would improve results,” Theodorou says. “That meant empowering our employees to think like owners.” At the same time, stronger performance management became a priority, giving employees more clarity around their roles. “We wanted employees not only to come up with ideas but also to be able to execute them where it made sense to do so,” she adds.
Throughout the recession, LoyaltyOne kept its eye on recovery—knowing that if it didn’t respond to employee feedback, employees would look for new jobs elsewhere as soon as the economic downturn was over. “For that reason, we continued to offer training and development opportunities and kept up our strong commitment to corporate social responsibility,” Theodorou explains.
The corporate social responsibility (CSR) program is a source of employee pride at LoyaltyOne. “It was important to show them that the company wasn’t going to drop its environmental and social responsibilities just because we were facing challenging economic times,” she adds. “Our employees told us that these programs are important to them. We know these CSR initiatives differentiate us and engage our employees. That means, they’re not only good for the planet, but they also help with attraction and retention now that we’re past the recession.”
For the best employers, the recent economic difficulties have not altered efforts to maintain a positive relationship with employees. If anything, these challenges have provided an opportunity to renew the organization’s focus on employee engagement and build a sense of loyalty that will last beyond the downturn.
Neil Crawford is a principal with Hewitt Associates and leader of the Best Employers in Canada study. Todd Mathers is a principal with Hewitt Associates.
neil.crawford@hewitt.com
todd.mathers@hewitt.com
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© Copyright 2010 Rogers Publishing Ltd. This article first appeared in the January 2010 edition of BENEFITS CANADA magazine.