According to recent Gallup research, two-thirds of employees in the U.S. are not engaged in their work. They aren’t satisfied with their organization, they’re not connected to the company’s mission, and they don’t feel like management cares about them. Therefore, they approach their work with relatively low motivation, energy, and focus. Regrettably, employee disengagement costs the U.S. economy $500 billion in lost revenue every year.

On the other hand, companies with a high level of employee engagement on average benefit from:

• 22% higher productivity
• 81% lower absenteeism
• 43% less turnover
• 41% higher quality
• 64% fewer safety incidents
• 23% higher profitability

So, the obvious question is: How can you increase employee engagement?

The Three R’s for Higher Engagement

1. Role Clarity. Gallup’s research found that this is the main driver of high employee engagement. Ensuring your people know what’s expected of them is critical.

2. Recognition. Forty percent of employees in the U.S. say they would put more energy into their work if they were recognized for their contributions more often.

3. Rewards. Eighty-five percent of employees say they are more motivated to perform well when offered financial incentives.

How to Implement the Three R’s

1. Role Clarity

Gallup’s research further highlights five underlying drivers of role clarity:

1) A clear understanding of the company’s mission and purpose

2) Clear goals and priorities

3) Feeling like they’re part of the team

4) Regular, meaningful feedback on their performance

5) Feeling like management cares about their well-being

With these factors in mind, consider the following three tools that can be game-changers for creating higher employee engagement.

A. Leader’s Intent

The first tool is a leader’s intent to cast vision, set goals, and clarify expectations. Think of this as written guidance to your team that answers six questions:

• Mission: What do we need to accomplish, and why?
• Vision: What does success look like?
• Values: What values will we hold ourselves accountable to?
• Goals: What our primary goals over the next year?
• Priorities: In order to achieve our goals, where will we need to focus our efforts and resources?
• Expectations: What can my team expect from me as a leader, and what do I expect from them?

B. Role Cards

The second tool is role cards to clarify roles and responsibilities for your team members while highlighting how their role is connected to your company’s mission and purpose. For each of your direct reports, create a one-page outline describing:

• Title: The name of the role
• Purpose: A brief summary of why the role exists and why it’s important
• Context: How the role is connected to your company’s mission and purpose
• Responsibilities: Key tasks they’re expected to perform
• Authority: Types of decisions they’re authorized to make
• Key relationships: The key internal and external stakeholders they need to interact with
• Success criteria: Outcomes by which their performance will be measured

C. Feedback Sessions

Third, schedule regular one-on-one sessions with your direct reports to discuss how they’re doing both personally and professionally, and to provide feedback on their performance. Studies show that a culture of feedback at every level is crucial for high-performing companies. Over 80 percent of employees appreciate positive and negative feedback. Forty percent deliberately disengage when they get little or no feedback. And nearly half of highly-engaged employees receive feedback at least once per week.

How should you provide the feedback? Think of it as an opportunity to coach and develop your people. Plan the session. Initiate the discussion with the right tone, focusing on a foundation of trust and an overall mindset of helping them reach their full potential. Show a genuine interest in them both personally and professionally. Ask questions, listen, paraphrase, synthesize, and problem-solve together. Pay attention to nonverbal cues. Develop an action plan for next steps, then follow up. Scheduling a consistent 30-minute weekly session for coaching and feedback with each of your direct reports will significantly enhance their engagement and performance. Moreover, cascading these sessions throughout your entire company by encouraging your direct reports to coach and develop their people in a similar way can have a transformative effect on your culture.

2. Recognition

Create a culture where recognition is part of your company’s DNA. Here are some best practices for giving employees recognition to improve engagement:

• Public praise and shout-outs: Acknowledge employees’ achievements publicly through company-wide announcements, meetings, or social media. This visibility boosts morale and sets a positive example.
• Public awards or certificates: Create formal recognition programs with awards or certificates for outstanding performance.
• Feature employees on company platforms: Highlight team members on the company website or internal communications.
• Personal thank you notes: A sincere, handwritten note of appreciation can be very meaningful and shows personal attention.
• One-on-one recognition: Take time to privately acknowledge an employee’s efforts and contributions during individual meetings.
• Team celebrations: Organize team lunches, outings, or activities to celebrate group achievements.
• Offer growth opportunities: Recognize high performers by offering them challenging projects, professional development, or learning opportunities.
• Celebrate milestones and achievements: Acknowledge work anniversaries, project completions, and other significant accomplishments.
• Peer-to-peer recognition: Encourage team members to recognize each other’s contributions, fostering a culture of appreciation.
• Flexible work arrangements: Recognize employees by offering flexible hours or remote work options as a reward for their dedication.
• Provide additional time off: Offer extra paid time off as a reward for hard work or completing intensive projects.

The key to effective recognition is to make it timely, frequent, specific, visible, inclusive, and aligned with company values. It’s also important to tailor recognition to individual preferences and to create an atmosphere where appreciation is a regular part of the work environment.

3. Rewards

Combining financial incentives with non-monetary rewards creates a comprehensive and engaging incentive program.

The design of incentive programs is crucial. Rewards should be aligned with organizational goals, easy to understand, and realistic to achieve. Here are some common rewards that boost employee engagement:

• Bonuses: Cash bonuses for achieving specific goals or exceptional performance can be highly motivating.
• Profit sharing: Distributing a portion of company profits to employees fosters a sense of ownership and collective achievement.
• Salary increases or raises: Recognizing employee contributions through pay increases can boost engagement and retention.
• Commission-based rewards: Particularly effective for sales roles, commissions directly tie performance to compensation.
• Employee stock options: Offering ownership in the company can align employee interests with organizational success.
• Cash rewards: Immediate financial recognition for specific achievements or milestones.
• Gift cards or vouchers: While not direct cash, these can be tailored to employee preferences and interests.
• Referral programs: Financial incentives for successful employee referrals can engage current employees in recruitment efforts.
• Extra allowances: Additional compensation for specific responsibilities or circumstances.

Incentives work best when tailored to individual preferences. What motivates one employee may not motivate another, so knowing your people and understanding their preferences are key to creating effective incentive programs. Simultaneously, transparency and fairness in distributing financial incentives are essential for maintaining engagement.

Conclusion

Improving employee engagement is essential for the success and growth of any organization. By focusing on the three R’s – Role Clarity, Recognition, and Rewards – companies can significantly boost employee satisfaction and performance. Clear communication of roles and expectations ensures employees understand their responsibilities and the company’s mission, fostering a sense of purpose and belonging. Regular recognition, both public and private, helps employees feel valued and motivated to contribute their best work. Lastly, well-structured rewards, including both financial incentives and career development opportunities, can drive higher engagement and retention. By investing in these three R’s, you can create a more dynamic, productive, and committed team, ultimately driving greater success and profitability.

Need help improving your employee engagement? Let’s talk.

Sources

Gallup: In New Workplace, U.S. Employee Engagement Stagnates

HR Cloud: 20 Employee Engagement Statistics You Need to Know

Gallup: The Benefits of Employee Engagement

Harvard Business Review: Employee Engagement Does More than Boost Productivity

Forbes: Feedback – You Need to Lead It

Harvard Business Review: Recognizing Employees Is the Simplest Way to Improve Morale

Forbes: Employee Recognition Ideas for 2024

Harvard Business Review: A Better Way to Recognize Your Employees

Forbes: Monetary Incentives In The Workplace (2024 Guide)