Tag Archives: Employee Engagement

Why Putting Employees First and Customers Second Works

GUEST POST from David Burkus

What if your company announced that, moving forward, it would be place customers second on its list of priorities?

Sounds crazy. The customer is always right. Surely the customer is always first as well.

But that’s exactly what Vineet Nayar, CEO of HCL Technologies did over a decade ago. He announced that the company’s senior leaders would be placing the needs of employees first, and customers second. And the results have been spectacular.

How The Employees First Strategy Started

In 2006, Vineet Nayar, CEO of HCL, a digital engineering company based in India, boldly told his clients they were no longer the company’s top priority. Instead, the focus would be put on employees first. His belief was simple: happy employees make happy customers. Nayar labeled employees who actually interacted with customers as the “value zone,” where the real business magic happens — and any employee in the value zone received the dedicated focus of managers and support functions.

To bring this to life, he flipped the traditional management structure. He made the organizational chart look like an upside-down pyramid. Turning the hierarchy upside down required making managers accountable to front-line employees and ensuring that those in the support functions actually supported those front-line employees, instead of just insisting that they follow the hierarchy’s rigid systems.

Nayar focused his attention on two areas to ensure that the management and support functions served the front-line: reversing accountability and building transparency. Specifically, 360-degree feedback evaluations were expanded to include more front-line workers’ feedback for managers and senior level executives (that’s the accountability), and crucially those evaluations were made public so everyone who contributed to the survey could see the results (there’s your transparency). In addition, when problems occurred for front-line workers, they could create and own support tickets that their managers would have to address (usually, it’s the other way around in top to bottom organizations).

It’s important to note that HCL Technologies wasn’t a little start up in a garage or even a 50-person company. This was done at a 55,000 person, multinational organization. And, spoiler alert, it’s now grown to over 200,000 employees. Pulling off this flip was no small feat, but the results speak for themselves. Employee satisfaction soared, customer service improved, and revenues nearly tripled. By 2009, HCL was named India’s best employer.

Contrast this story with an example of what can go wrong when employee experience is overlooked. In 2001, Robert Nardelli was the newly minted CEO of Home Depot. Expectations were high given his track record at his old job at General Electric, where he had led several successful manufacturing operations.

At Home Depot, Nardelli noticed the stores were staffed with knowledgeable, full-time employees, and in his opinion, a bit too many. What do new leaders, wrongfully, do when they want to make waves and save money?

Yep, he downsized to optimize costs.

He decided to hire more part-timers, many of whom had less expertise in home improvement. The results were not what he expected. Customers quickly noticed the absence of their favorite employees and the decline in service quality. It turned out that managing a service organization like Home Depot was very different from managing a manufacturing operation.

This story underscores a critical point: leading a service organization requires a different approach — one that prioritizes employee engagement and expertise.

“Employees first, customers second” is still about serving the customer, but it’s about serving the customer through the employees whose job it is to serve the customer. Weird how that works, isn’t it? Understand that helping your employees helps your customers. These two parties are intrinsically tied together.

Research On Employees First

Nayar’s success story isn’t an isolated incidence of dumb luck. There’s research behind this. Researchers at Harvard University found a link between employee satisfaction and profitability. They took aim at a long-standing assumption in the business world that market share is the primary driver of profitability. If a company can increase market share, the thinking went, it will increase sales while taking advantage of economies of scale to lower costs and thus increase profits.

However, when they examined a variety of companies and the existing research, they found that market share is one factor in profitability. But that another factor better explains the most profitable companies: customer loyalty.

Based on their research, they estimated that a mere 5 percent increase in customer loyalty can yield a 25 to 85 percent increase in profitability.

Here’s how it works in practice: Profits are driven by customer loyalty. Customer loyalty is driven by employee satisfaction. And employee satisfaction is driven by putting employees first. They called this The Service-Profit Chain and managers who understand this can create a thriving cycle where employee and customer satisfaction drive each other, ultimately leading to greater business success.

In simple terms, if your business provides a service that your employees have front-line participation in, they are in essence an embodiment of the company, not you or the CEO. The entire brand, the experience, the service rests on those front-line employees. If they aren’t taken care of — if they aren’t satisfied — the customer tends to notice.

How Employees First Creates Customer Loyalty

Employee loyalty is a deep indicator of future performance for service organizations. It’s worth noting that there is a subtle difference between employee satisfaction and employee loyalty. Satisfaction derives from how happy employees are in their role. Loyalty comes from having a real stake in the success of the business. Without loyalty, employees leave for better opportunities, then high turnover rates drive up recruitment and training costs, disrupt productivity, and can negatively impact customer experiences. When employees stay longer, companies save on hiring costs, maintain productivity gains, and create a more positive environment for customers.

Simply put, loyal employees lead to loyal customers.

Great service leaders recognize that improving employee retention involves providing opportunities for growth and advancement. This approach keeps talented employees closer to the customer for longer periods, which directly impacts customer satisfaction and loyalty.

Take Whole Foods Market, for example. They have crafted their entire system — from their rigorous selection process to compensation methods — to encourage front-line employees to stay and thrive. Teams at Whole Foods are responsible for setting key metrics, making decisions on how to meet these targets, and even choosing what food items to buy locally. They’re rewarded with bonuses based on team performance, which often includes finding creative ways to boost sales to balance out labor costs. After three years on the job, employees receive stock options, which further incentivizes them to stay.

Additionally, Whole Foods allows employees to vote every three years on various aspects of the benefits package, from community service pay to health insurance provisions. All these factors contribute to Whole Foods’ remarkably low turnover rate of less than 10 percent for full-time employees after the probationary period — far below the industry average.

The results speak for themselves: Whole Foods is regularly rated as one of the best places to work, known for excellent customer service, and boasts some of the highest profits per square foot in the grocery retail industry.

This success is a testament to the power of employee loyalty in driving exceptional service. Great service leadership isn’t just about managing day-to-day operations — it’s about creating an environment where employees feel valued, empowered, and committed. By focusing on employee loyalty, service leaders can build stronger customer relationships and achieve sustainable success.

Employees First For All Leaders

You may not have the power in your organization to completely flip the hierarchy. But there’s still an important lesson for leaders at all levels: Flip the accountability. This can look like bringing in more feedback from front-line employees or just seeing the structure of your team differently. You work for your team. Don’t squeeze your team; foster them to do well.

In addition, give your employees real stakes and invest in them. Prioritize training and growth opportunities for your employees so they know you’re committed to not just their output, but their career. Parties, gift certificates, awards, summer Fridays, bonuses — all of these are great. Do those things. But those are more employee appreciation, not real development. Development looks like sending your rising stars to conferences, workshops, night school even, if you have the budget. Things you think will help them grow as employees, spark innovation, and create future leaders.

Conclusion

If I could put a message on a billboard in front of every Fortune 500 company, it would be this:

People don’t work for you.

Smart leaders know that employees work with them, and ultimately, leaders work for their people. Embracing the “employees first, customers second” philosophy means prioritizing the well-being and growth of employees, enabling them to deliver outstanding service. Happy, engaged employees create satisfied customers. When leaders invest in their teams’ success and happiness, they cultivate a culture where customers feel valued, leading to long-term loyalty and a thriving business.

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Image credit: David Burkus

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Top 10 Human-Centered Change & Innovation Articles of August 2025

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Top 10 Human-Centered Change & Innovation Articles of August 2025 Drum roll please…

At the beginning of each month, we will profile the ten articles from the previous month that generated the most traffic to Human-Centered Change & Innovation. Did your favorite make the cut?

But enough delay, here are August’s ten most popular innovation posts:

The Nordic Way of Leadership in Business — by Stefan Lindegaard
Science Says You Shouldn’t Waste Too Much Time Trying to Convince People — by Greg Satell
A Manager’s Guide to Employee Engagement — by David Burkus
Decoding the Code of Life – Human-Centered Innovation in Synthetic Biology — by Art Inteligencia
Why Innovators Can’t Ignore the Quantum Revolution — by Art Inteligencia
Performance Reviews Don’t Have to Suck — by David Burkus
Why Explainable AI is the Key to Our Future – The Unseen Imperative — by Art Inteligencia
Goals Require Belief to be Achievable — by Mike Shipulski
The Future is Rotary – Human-Centered Innovation in Rotating Detonation Engines — by Art Inteligencia
The Killer Strategic Concept You’ve Never Heard Of – You Really Need to Know About Schwerpunkt! — by Greg Satell

BONUS – Here are five more strong articles published in July that continue to resonate with people:

Do We Really Need Managers? — by David Burkus
Building Psychological Safety – Team Dynamics Explained — by Stefan Lindegaard
3 Reasons Why Bad Business Thinking Exists — by Greg Satell
Turning Around Declining Customer Satisfaction — by Shep Hyken
Three Executive Decisions for Strategic Foresight Success or Failure — by Robyn Bolton

If you’re not familiar with Human-Centered Change & Innovation, we publish 4-7 new articles every week built around innovation and transformation insights from our roster of contributing authors and ad hoc submissions from community members. Get the articles right in your Facebook, Twitter or Linkedin feeds too!

Have something to contribute?

Human-Centered Change & Innovation is open to contributions from any and all innovation and transformation professionals out there (practitioners, professors, researchers, consultants, authors, etc.) who have valuable human-centered change and innovation insights to share with everyone for the greater good. If you’d like to contribute, please contact me.

P.S. Here are our Top 40 Innovation Bloggers lists from the last four years:

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A Manager’s Guide to Employee Engagement

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A Manager's Guide to Employee Engagement

GUEST POST from David Burkus

We need to talk about employee engagement surveys. It’s great news that organizations are paying attention to engagement and its impact on performance. The bad news is that senior leaders seem to want a clear metric to judge how satisfied and motivated their people are. Management requires metrics, after all. Decisions require data.

Employee engagement surveys are the tool of choice to measure a company’s employee experience, motivation, and overall culture. Gallup research suggests that employee engagement is linked to many other important organization metrics like productivity, employee retention, and profitability. Unfortunately, Gallup has also found engagement is on the decline across the United States, particularly among remote, hybrid, and younger workers.

Ultimately, the reasons for the recent employee engagement decline and the inability to turn it around stem from a few problems with how most leaders treat engagement as a concept and engagement surveys as a tool. In this article, we’re going to review the top three problems with employee engagement surveys and offer a solution for each one that will not only boost engagement scores…but will engage your people.

Employee Engagement Problem #1: People don’t take the surveys seriously

Employee engagement surveys are only as important as leadership says they are, and the reliability can be a little flawed. No, don’t throw out surveys completely because the data might be flawed, but it’s important to know the context of how this engagement data is collected.

Your employee gets an email. It typically goes something like this:

“Dear Valued Employees, Our company has brought in “GloboEngage360”, to survey different aspects of the company according to the point of view of its employees. This survey is not mandatory, but your feedback is greatly appreciated and will remain anonymous.” Sincerely, Management

Put yourself in an employee’s shoes. They have meetings all day. They have tasks to do and people to coordinate with. If it isn’t mandatory, something like this is going right to the bottom of the list of things to do, or just put into the trash immediately.

And most employee’s gut reaction to a message from leadership or outside consultants saying this is anonymous is, “This is definitely not anonymous.” So, will employees take this survey seriously at all? Hard to say. Is there some value to be had from collecting the data this way? A little, but it’s best used as a starting point into your own investigation into engagement.

But we also must consider leadership’s point of view. Survey goes out. The survey consultancy collects the data, makes a nice packet of insights, and boils down your people’s performance, happiness, and productivity all into nice little percentages. But the data is only as serious as the seriousness of the people who filled out the survey, and their seriousness is determined by how seriously they think leaders care about the survey.

Seriously.

Employee Engagement Solution #1: Share the results

This should be an easy thing to do. And it’s the easiest way to communicate that you’re serious about employee feedback and improving the employee experience. It’s a mystery why companies don’t typically share the results with those who took the survey. By not sharing, people can only speculate, and they’re probably going to go to draw the worst-case scenarios like “The company is going to restructure” or “My job is in jeopardy.”

So, share the results. You may not have gotten an accurate and serious picture of engagement in the results you’re sharing, but when employees see that you considered their responses and you’re making changes as a result, they’ll give these questions more consideration next time a survey is sent around.

To articulate that these surveys matter to your team, you don’t need to send them the entire data file or even the summary report the consulting firm created for you. It can be way simpler than that. Just take the time to share:

What positive results you’re proud of.
Why you’re so proud of those results.
What unexpected results you received.
And what you’ll be changing as a result.

That’s it. Just a simple email, memo, or quick video on what senior leadership learned from the survey and what they’ll be building upon or changing completely because of the survey.

Employee Engagement Problem #2: Leaders Interpret Data Wrong

After a survey is taken, the team from human resources or the consulting firm administering the survey will compile everything and prepare a summary report. And this is where things can go really wrong. Often the report is broken down by the different questions asked, and the lower scoring the question the more attention it gets. If one item is particularly low, then we start a company-wide initiative to improve on that one item. Because when leaders only look at the company-wide data, they tend to make decisions that impact everyone… company-wide.

But if your company has issues, there’s a chance it’s not in every single department or every single team. Most people’s experience of work isn’t reflective of the entire company. It’s a commentary on the parts of the company they work with. Company culture is the average of the culture on each individual team.

You know what happens next. Now your top performing teams are subject to mandatory programs that will slow them down, confuse them, and ultimately make them feel punished. Those top performing teams need to be protected!

Employee Engagement Solution #2: Look team-by-team, not company-wide

When you look at the data, don’t just take the overall metrics and run with them. If you have direct contact with the agency you used, ask them, or ask your HR or culture team, to get the metrics broken down to the team level, or as much functional or regional separation as you can get.

And then use those metrics to isolate the teams that are under-performing in whatever areas you measured and cater a solution to that team. Talk to that manager. Talk to the people on that team. See what’s going on.

The solution for that individual team is not going to be solved by a company-wide solution. Big initiatives that touch every team in a company with the intent to weed out a problem often are too broad and diluted to fix the issue.

So, break those numbers down to the team level. Then, help the team leaders that are dragging the overall numbers down-and reward the team leaders who are serving their people well. Building a company culture is about building strong team cultures. It takes time, effort, and more than just the numbers and one big solution.

Employee Engagement Problem #3: Surveys are too infrequent

Employee engagement surveys are typically done once a year. Maybe twice. Remember, people don’t want to be inundated with surveys all year, and leadership and HR teams know that. So, companies will concentrate on that one survey ask a year. And companies will rely on HR and culture teams to implement a workplace environment that is inclusive, sparking innovation, and motivates and engages people.

It makes sense not to administer formal surveys too frequently throughout the year. HR should be very judicial when sending out surveys. But just because you’re not surveying people regularly, doesn’t mean you can’t be monitoring employee engagement regularly.

Employee Engagement Solution #3: Keep the conversation going on the team level

Managers can do their own anecdotal surveys, better known as a “conversation” with their team.

You, as a leader of your team, are ultimately responsible for your employees’ engagement and for fostering a purposeful culture. A company’s culture is the aggregate of all the teams’ cultures. This work really falls to you. Have ongoing conversations with your team and in your individual check-ins. Ask them what projects are going well. Ask them what they’re energy levels are like. Ask them how they’re interacting with their teams. And most importantly, ask them if there’s anything you can help with.

If you keep an open dialogue with your team about how things are going, the metrics from a yearly survey will not surprise or shock you. If you’re good, you’ll know before the survey.

Conclusion

Remember, a company’s culture is the sum of its team cultures. Invest in your teams, have open communication, and the engagement numbers will take care of themselves.

There’s a tendency to treat employee engagement like the score of a game, and so we shouldn’t be surprised when people try to game the system and improve the score. But the point of collecting all that data isn’t to learn how to improve a number. It’s to know where we need to pay more attention to our people and how we can help them feel more connected to their work and to the team they work with.

Image credit: Pexels

Originally published at https://davidburkus.com on May 16, 2024.

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Optimizing Employee One-On-Ones

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Optimizing Employee One-On-Ones

GUEST POST from David Burkus

One-on-one meetings with employees are a crucial aspect of effective leadership. Organizations spent countless hours, money, and other resources trying to find the most qualified talent on board, and then spent more money to keep that talent motivated and engaged. And yet, the single most time time-efficient and effective way to invest in the growth and development of employees is a simple feedback session with their direct supervisor.

In this article, we will delve into the three main sections that make up a successful one-on-one meeting: expectations, feedback, and growth and development. By following this structure, you can ensure that your meetings are productive and meaningful, leading to improved performance and employee satisfaction.

Expectations

The first part of your one-on-one meetings with employees should focus on expectations. Setting clear objectives and expectations is the foundation of any successful working relationship. During one-on-one meetings, it is essential to discuss and align on these expectations to ensure that everyone is on the same page. By doing so, you can monitor progress, celebrate achievements, and identify any factors that may be affecting performance.

By setting clear objectives and roles, you provide your employees with a sense of direction and purpose. This clarity allows them to focus their efforts on the most important tasks and prioritize their work effectively. Monitoring progress and celebrating achievements not only boosts morale but also provides an opportunity to recognize and reward outstanding performance. Additionally, by identifying factors that may be affecting performance, you can work together to find solutions and remove any obstacles that may hinder progress.

Feedback

The second part of your one-on-one meetings with employees should focus on feedback. Feedback is a powerful tool for growth and improvement. During one-on-one meetings, it is crucial to provide fair feedback that highlights both areas of high performance and areas for improvement. By acknowledging and appreciating the employee’s strengths, you motivate them to continue excelling in those areas. Simultaneously, by providing constructive feedback, you help them identify areas where they can grow and develop.

This section is also meant to be a two-way conversation. This is a time for employees to give you feedback as well. How are you doing as their manager? What resources do they need that you can provide? Encourage your employees to share their thoughts and ideas, and actively listen to their feedback. By fostering a safe and supportive environment, you can build trust and strengthen the relationship with your team members.

Growth and Development

The final part of your one-on-one meetings with employees should discuss the employees’ growth and development. Take the time to discuss their long-term career goals, the skills they want to develop, and potential future roles they aspire to. Understanding your employees’ career aspirations allows you to tailor their development plans and provide them with the necessary resources and opportunities to achieve their goals. By identifying the skills and knowledge they need to grow, you can offer targeted training and development programs. Additionally, supporting employees in their current roles by assigning challenging projects or providing mentorship opportunities can facilitate their growth and prepare them for future roles within the organization.

This section should focus on the real and accurate career objectives of employees. Unfortunately, too often employees who lack trust in their boss or the company invent false ambitions (“I want to be a manager” or “I’m here for the long-term.”) It’s okay if some employees decide their long-term goals will take them away from the organization. Leaders can still invest in their growth, and they can still be high performers in the meantime.

One-on-one meetings with employees are a valuable investment of time and effort. By following the threefold structure of expectations, feedback, and growth and development, you can create a supportive and engaging work environment. Candid and honest conversations in these meetings can lead to faster growth and better results than formal annual reviews or performance improvement plans.

Remember, the order of the three sections is important, as ending on growth and development helps make the conversation forward-looking and motivating. By setting clear expectations, providing constructive feedback, and supporting your employees’ growth, you can foster a culture of continuous improvement and help everyone on your team do their best work ever.

Image credit: Pexels

Originally published at https://davidburkus.com on September 18, 2023.

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9 of 10 Companies Requiring Employees to Return to the Office in 2024

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9 of 10 Companies Requiring Employees to Return to the Office in 2024

GUEST POST from Shep Hyken

Happy employees mean more engaged and productive employees. I’ve written many times that what’s happening inside an organization will be felt on the outside by customers. A good employee experience (EX) will positively impact the customer experience (CX). And of course, the opposite is true. A “ripple effect” of employee satisfaction or dissatisfaction will inevitably reach your customers, impacting their overall experience.

As a result of the Covid-19 pandemic, which forced a shutdown, many companies and organizations realized—or at least thought—their employees could work remotely. Many companies walked away from their offices and didn’t renew their leases. This shift in the traditional in-office, five-day-a-week schedule was either eliminated or modified, and many workers discovered they enjoyed working from home. However, it looks as if this “experiment” didn’t work out as planned, and many companies will start requiring RTO (return to office) in a schedule that looks similar to pre-pandemic office hours and attendance requirements.

In August, ResumeBuilder surveyed 1,000 corporate decision-makers about their RTO plans. Here are the main results:

- 90% of companies will return to the office by 2024.

- only 2% say their company never plans to require employees to return to work in person.

- 72% say RTO has improved revenue.

- 28% will threaten to fire employees who don’t comply with RTO policies.

The Opportunity

Why return to the traditional office environment? The answer is something we already know. Because companies potentially make more money.

The move to return to the office started in 2021, just after the lockdown. That year, 31% of companies required employees to return to their offices, 41% in 2022 and 27% in 2023. Most of the respondents to the survey claimed they saw an improvement in revenue, productivity and worker retention.

And for those companies that plan to demand RTO in 2024, 81% say it will improve revenue, 81% believe it will improve the company culture and 83% say it will improve worker productivity.

These decision-makers aren’t making an arbitrary determination. They recognize the negative impact an RTO policy can have. Many of them (72%) said their company would offer commuter benefits, 57% would help with child-care costs and 64% would provide catered meals. But are the perks enough?

The Danger

There is concern that a shift back to full-time office hours could cause a company to lose good employees in a hiring environment in which candidates are “calling the shots” and working for companies that not only give them a steady paycheck and traditional benefits, but also a work schedule and in-office policy that aligns with their need for work/life balance. Even so, according to the survey, 28% of the decision-makers surveyed claimed they would fire employees for not complying with their RTO policies.

As we navigate the complexities of a post-pandemic working world, companies face a tough choice that will shape and impact both the employee and customer experiences. Suppose a company decides to require a 100% return to the office. It must recognize and weigh the opportunities—primarily, increased productivity and revenue—with the negatives—less-than-enthusiastic employees and the potential (even probable) loss of employees.

This article originally appeared on Forbes.com

Image Credits: Shep Hyken

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Measuring Employee Engagement Accurately

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Measuring Employee Engagement Accurately

GUEST POST from David Burkus

Employee engagement has been a hot topic for several decades. And for good reason. Business teams with highly engaged employees have a 59 percent lower turnover rate than those with less engaged staff. Highly engaged teams are 17 percent more productive. Engaged teams receive 10 percent higher customer reviews. And yes, businesses with engaged employees have higher profit margins than non-engaged competitors.

But getting employees to feel engaged is no small feat. Even how to measure employee engagement can be a difficult question to answer for many leaders. But there are good reasons to try. Measuring employee engagement helps identify cultural strengths for the organization. Done well measuring employee engagement builds trust through the company. And measuring employee engagement helps understand and respond to potential trends, both in the organization and across the industry.

In this article, we’ll outline how to measure employee engagement through the most commonly used method and offer the strengths and weaknesses of each method.

Surveys

The first method used to measure employee engagement is surveys. And this is also the most commonly used method as well—mostly for commercial reasons. After the Gallup Organization launched their original Q12 survey of engagement, dozens of competing companies with competing surveys sprung up all promising a different and better way to measure employee engagement. Most of these surveys present a series of statements and ask participants to rate how much they agree or disagree on a 5- or 7-point “Likert” scale. Some include a few open-ended questions as well.

The biggest strength of the survey method is that it scales easily. For an organization with hundreds or thousands of employees, emailing out a survey invitation and letting the system do the rest of the work saves a lot of time. In addition, surveys allow for objective comparisons between teams and divisions, or between the company and an industry benchmark. But while the comparisons may be objective, the data itself may not be. That’s the biggest weakness of surveys, they most often rely on self-reported data. And as a result, those taking the survey may not be completely honest, either because they want to feel more engaged or because they don’t trust the survey to be truly anonymous.

Proxies

The second method used to measure employee engagement is proxies—meaning other metrics that serve as a proxy for engagement. Because we know that employee engagement correlates to other measurements, we can assume a certain level of engagement based off those measurements. For example, productivity has a strong correlation to employee engagement when looking at teams or entire organizations. So, if productivity is high, it’s safe to assume employee engagement isn’t low. Likewise, absenteeism and turnover tend to rise as employee engagement falls, so changes over time on those metrics point to changes over time in engagement. (And comparisons between engagement in departments/teams can sometimes be made based on these proxies.)

The big strength of proxies is that they’re usually measurements that are already being captured. Larger organizations are already tracking productivity, turnover, and more and so the data are already there. The weaknesses of proxy measurements, however, are that they’re not a perfect correlation. It’s possible to be productive but not engaged, and there are often other reasons certain roles have higher turnover than others beyond employee engagement. In addition, some of these proxies are lagging indicators—if turnover is increasing than engagement has already fallen—and so they don’t provide leaders a chance to respond as fast.

Interviews

The third method used to measure employee engagement is interviews. And this method is the least common one but it’s growing in usage. Sometimes these are called “stay” interviews, in contrast to the exit interviews that are common practice in organizations. The idea is to regularly interview employees who are staying about how the company (and leaders) are doing and how things could be improved. While the questions used should provide some structure, the open-ended nature allows leaders to discover potentially unknown areas for improvement.

The biggest strength of stay interviews is that they’re a useful method for team leaders who may not have senior leader support for measuring engagement. Conducting stay interviews with ones’ team doesn’t require senior leadership approval or data from Human Resources. So, it’s available to leaders at all levels. And while that’s true, the weakness of stay interviews is that they’re hard to scale. Training thousands of managers on conducting a stay interview isn’t as easy as emailing out a survey. Moreover, because different managers would conduct these interviews differently, cross-comparison would be subject to bias. Stay interviews are a powerful way to measure engagement on a team, but they’re most potent when they’re used by managers who truly want the feedback their team provides (and not merely because they were told to conduct interviews).

Conclusion

While all three methods are a way to measure employee engagement, it’s not enough to merely measure. We measure things so we can improve them. So once the measurement is done, leaders need to have a plan in place make progress. That plan should include sharing out the results of the measurement and sharing the lessons learned from analyzing those results. In addition, leaders should share what changes are planned based on those lessons. And while it doesn’t need to be shared, it’s worth thinking ahead of time how the effects of those changes will be themselves be measured.

Done well, these measurements and the resulting plans will create an environment where everyone can do their best work ever.

Image credit: Pixabay

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The Real Reasons Employees Stay Or Leave

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Hint: It’s about more than money

The Real Reasons Employees Stay Or Leave

GUEST POST from Shep Hyken

What if every great employee you (or your company) hired never left? Of course, that’s unrealistic … or is it? Joey Coleman is one of the brightest authors and speakers on the planet. His first book, Never Lose a Customer Again, is one of the very best books I’ve read on how to keep your customers coming back. He’s now taken some of the same ideas that worked for customer retention and written a second book, just as brilliant, Never Lose an Employee Again.

Coleman studied and researched organizations worldwide, and he found that 50% of hourly employees quit before their 100-day anniversary. For non-hourly or salaried employees, it’s 20%. I interviewed Coleman on Amazing Business Radio to learn how we can keep good employees.

“How we onboard employees and make them feel part of our community can differentiate whether they will be long-time employees or leave almost as fast as they came,” Coleman said. “The first 100 days are the most important time in the entire relationship with an employee because this is where the foundation is laid.”

So, why do employees leave? Contrary to popular belief, the No. 1 reason an employee leaves to work elsewhere is not money. In the traditional exit interview, where an employee talks to their employer face-to-face, money is the easiest and safest excuse for an exit. The true reasons for leaving are more telling—and can help prevent an employee from going, even if offered more money somewhere else. Coleman cites the Work Institute employee retention study, sharing the top five reasons employees leave:

No clear career path — This is the top reason employees leave. Nearly one-quarter (24%) don’t see future opportunities in the organization. Most employees want to advance their careers and learn new skills. Laying out a potential path for an employee from the very beginning of their employment with you can have long-term benefits.
Stress or lack of resources — Not providing employees with the tools they need or giving them too heavy of a workload can impact their emotional health, which could lead them to find work at another company.
Health and family matters — As much as an employee may love working with your organization, personal health, a sick child or an aging parent can interfere with their ability to work. Regarding the latter, Coleman says, “Just as some employers provide daycare for young children, some employers in the future will also provide an eldercare program.”
Work/life balance — The job has to fit the employee’s lifestyle. Something as seemingly insignificant as a long commute can negatively impact the employee’s personal life so much that they leave.
Money — Almost one in 10 (9%) leave because of money. That means nine out of 10 leave for other reasons, often within our control.

After reading the reasons listed above, here is Coleman’s top advice:

Affirm the employee made the right decision to come to work at your organization — The concept of affirm is one of the eight phases of the first 100 days Coleman covers in his book. There is a scientifically proven emotional reaction in which a new employee begins to doubt their decision to accept your job offer. It is called “new hire’s remorse,” which happens between when they accept the job offer and their first day. Reaffirm your new employee’s decision to accept your job offer. Establish a personal and emotional connection even before their first day.
On-boarding must be practiced at a higher level — Don’t just onboard the first day or two (or even a week or two). Coleman says, “If you’re not painting a clear path for your people but expecting them to manage and figure out their careers on their own, then you deserve to lose them.” The amount of time you spend with employees over the first 100 days directly correlates to how long they will stay.
The employee’s personal life is important — Notice that three of the five reasons people leave the organization are personal. Coleman says, “You need to know what’s going on between 5 p.m. and 9 a.m. as much as you are interested in what’s happening between 9 a.m. and 5 p.m. What are your people doing and dealing with when they are not at work?”

I’ve often said that you won’t have a business without customers. Coleman makes the case that the same applies to employees. Much of what gets customers to come back is a great customer experience. You can’t deliver a great CX without a great employee experience on the inside of your organization. Coleman says, “People think that customer experience and employee experience are two different silos. The better way to look at this is that they are two sides of the same coin. We must work on both!”

This article originally appeared on Forbes.com

Image Credits: Shep Hyken

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Making Employees Happy At Work

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GUEST POST from David Burkus

As long as people remain the center of organizations, attracting, retaining, and motivating those people—keeping them happy at work—will be one of the most important elements of a leader’s job. Work is central to our lives. For most adults, work occupies the majority of waking hours. And being happy at work can make a big difference in whether those hours are a drain or not. And, by extension, whether those hours are productive or not.

But that job as become more and more difficult over time.

In recent years some of the circumstances around job satisfaction and happiness at work have been outside of leaders’ control—global pandemics and being always on the verge of a recession come to mind. But there are a few adjustments inside of leaders’ control that can dramatically effect happiness. In particular, research from Mark Mortensen and Amy Edmondson suggests four specific components effect the “employee value proposition” and hence their happiness at work.

In this article, we’ll review those four elements of employee happiness and offer suggestions on how to leverage each to make employees happy at work.

Material Offerings

The first element that makes employees happy at work is material offerings. Material offerings include compensation, bonuses, and perks, the office and individual workspace, location, and even schedule and flexibility. This is what most leaders think about when they think about satisfaction and happiness at work. But unless you’re a senior leader or business owner, there’s not a lot you can change—and even if you are, some of those changes will take a lot of time. If you’re a front-line leader or middle manager, then your options are even more limited.

However, there’s always some room inside the organizational/industry constraints you might be able to find. You may not be able to move offices, but you could give the team more autonomy over the design of their workspace. You might not be able to set the working hours, but you can work with the team to find a little more flexibility inside of those hours. And it’s worth considering any area you do have control over. Even if you can’t make big changes, your team will appreciate that you’re making the effort.

Opportunity to Grow

The second element that makes employees happy at work is opportunity to grow. This refers to an organization’s opportunities to develop and grow employees, which include assigning new roles, implementing job rotations, and offering training aimed at helping them acquire new skills. Humans are intrinsically motivated by progress—they want to know they’re growing in their knowledge, skills, and abilities. In addition, they want to know they work in an organization that has room for them to grow into new roles and take on new challenges.

And leaders at all levels can help create (or increase awareness) of opportunities to grow. So long as the organization isn’t shrinking, there will be opportunities for individuals to get promoted or take on new challenges. But often those opportunities don’t present themselves fast enough to be salient. So as a leader, it’s vital to get to know the people on your team—their career goals and their development needs—and create opportunities to learn for them. You may not be able to promote them immediately. But you can help them feel growth by assigning them new tasks or projects that will help them prepare for that desired promotion.

Connection and Community

The third element that makes employees happy at work is connection and community. This refers to an employee’s sense of being appreciated and valued for their identity, experiencing mutual accountability, building social relationships, and being supported by an energizing culture that encourages candid expression and fosters a sense of belonging. Humans are social creatures. And as social creatures, the people we work with have a significant effect on our satisfaction and happiness. People want to feel they belong and that they’re appreciated.

And connection and community is where middle managers and front-line leaders make the most difference in employees being happy at work. Because most people’s experience of work—and connection and community—is actually a reflection of the team they work with or the location the work at. If you take time to connect with each of your people and hold space for group conversations and experiences unrelated to work, that will help amplify your team’s feelings of connection. If you take the time to celebrate small wins, and encourage others to do the same, you’ll help increase everyone’s feeling of appreciation and belonging.

Meaning and Purpose

The fourth element that makes employees happy at work is meaning and purpose. This refers to the organization’s aspirational reasons for existing and employees desire to see their contribution to work that makes the world better. Many organizations attempt create a sense of meaning and purpose through mission statements or vision statements. But just like connection and community, meaning and purpose is felt more strongly on the individual and team level. Which means leaders at all levels need to create a direct connection between the larger mission and the individual purpose of their specific team.

People want to do work that matters, and to work for leaders who tell them they matter. And as a leader, one of the most powerful ways you can do that is by helping people answer the question “who is served by the work that we do?” And then reminding them of that answer on a regular basis. This not only creates a more motivated team, but it also creates a team that feels more meaning and purpose as well.

It’s important to look at these elements both individually and collaboratively. Individually, you may have noticed a specific element which your team lacks. But these elements work together to create an overall experience. Material offerings are great, but there is a diminishing return on their increase in happiness. It takes all four to create an environment where employees feel happy at work and hence feel like they can do their best work ever.

Image credit: Pixabay

Originally published at https://davidburkus.com on May 15, 2022.

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How to Measure and Improve Employee-Driven Innovation

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The Value of Engagement

How to Measure and Improve Employee-Driven Innovation

GUEST POST from Art Inteligencia

In the relentless pursuit of competitive advantage, companies often look outward—to new markets, emerging technologies, and disruptive business models. While these are all valid areas for exploration, the single most powerful and often overlooked engine of innovation lies within: your engaged employees. Innovation is not a top-down mandate; it is a grassroots, human-centered activity. When employees are fully engaged—when they feel a sense of ownership, purpose, and psychological safety—they become a perpetual source of new ideas, process improvements, and breakthrough solutions. As a human-centered change and innovation thought leader, I am here to argue that the true measure of a company’s innovative capacity is not its R&D budget, but the level of its employee engagement. Furthermore, we must move beyond simply measuring engagement and learn to measure and nurture the innovation that it produces.

The link between engagement and innovation is not a coincidence; it is a direct causal relationship. Engaged employees are more likely to take risks, share dissenting opinions, and go above and beyond their job descriptions to solve problems. They are the eyes and ears on the ground, a direct conduit to customer frustrations and operational inefficiencies that leadership teams often miss. However, for this energy to be harnessed effectively, we need a new framework. We need to go beyond the traditional engagement survey and create a system that actively encourages, measures, and rewards employee-driven innovation.

Measuring the Innovation That Engagement Fuels

Traditional metrics for innovation—such as patent counts or new product launches—are often lagging indicators and don’t tell the full story. We need leading indicators that show us the health of our employee-driven innovation pipeline. Here are four key areas to measure:

Idea Velocity & Quality: Track the number of ideas submitted by employees across different teams or departments. More importantly, measure the quality and diversity of these ideas. Are they addressing key strategic challenges or just incremental fixes?
Experimentation Rate: How many employee-led experiments or pilot projects are being initiated? A high experimentation rate signals a culture where it’s safe to try new things and fail fast. This is a powerful proxy for psychological safety.
Cross-Functional Collaboration: Use tools and surveys to measure the frequency and quality of collaboration across different teams. Innovation often happens at the intersections of departments, and a lack of collaboration is a clear red flag.
Impact & Implementation: Measure the number of employee ideas that are actually implemented and the tangible business impact they have (e.g., cost savings, revenue increase, customer satisfaction scores). This closes the loop and shows employees that their contributions matter.

“An engaged workforce doesn’t just work harder; it thinks smarter. The role of leadership is to create the ecosystem that turns that thinking into tangible value.”

How to Turn Engagement into a Predictable Innovation Engine

Measuring innovation is only the first step. The real work lies in building the systems and culture that consistently generate new ideas. Here’s how to improve employee-driven innovation:

Empower Ideation: Implement a clear, simple system for employees to submit ideas. This could be an internal platform, a regular brainstorm session, or a dedicated “Innovation Sprint” team.
Provide Resources & Autonomy: Give employees the time, budget, and authority to test their ideas. A small “innovation fund” or a policy of allowing employees 10% of their time to work on personal projects can be a game-changer.
Celebrate Learning, Not Just Success: When an employee idea fails, don’t punish them. Celebrate the learning gained from the experiment. This reinforces psychological safety and encourages future risk-taking.
Create a Feedback Loop: Ensure that every idea, whether implemented or not, receives thoughtful feedback. This shows respect for the employee’s contribution and helps them grow as an innovator.

Case Study 1: Google’s “20% Time” and the Birth of Gmail

The Challenge:

In the early 2000s, Google was a rapidly growing search engine company, but it was at risk of becoming a single-product company. To foster a culture of continuous innovation and keep its employees engaged and creative, leaders faced the challenge of how to formalize a process that would encourage risk-taking and intrapreneurship.

The Engagement-Driven Innovation Model:

Google famously implemented the “20% Time” policy, which allowed engineers to spend 20% of their work week on personal projects that they believed would benefit the company. This was a radical act of trust and empowerment that fundamentally linked employee engagement to innovation. The program was designed to:

Encourage Autonomy: Engineers had the freedom to work on whatever they were passionate about, without a top-down mandate.
Foster Serendipity: It created an environment where unexpected connections and breakthroughs could occur naturally, outside of a rigid project plan.
Signal Trust: The policy sent a powerful message that Google trusted its employees to be responsible for their own innovative contributions.

The Result:

The “20% Time” policy became a legendary driver of some of Google’s most successful products. Gmail, for instance, was famously created by engineer Paul Buchheit during his 20% time. Google Maps and AdSense also have roots in this program. While the formal policy has evolved, the mindset of encouraging employee autonomy and internal entrepreneurship remains a core part of Google’s culture. This case study perfectly illustrates that when you empower employees to follow their curiosity, you can turn engagement into a powerful engine for breakthrough innovation and sustained growth.

Case Study 2: Toyota’s Kaizen – Continuous Improvement at the Grassroots

The Challenge:

Toyota’s success has long been tied to its renowned production system. However, the true genius of their system lies not in its technology, but in its human-centric approach. The challenge was to create a system where every employee, from the factory floor to the boardroom, felt responsible for continuous improvement, thereby keeping the company’s operational processes lean and innovative.

The Engagement-Driven Innovation Model:

Toyota’s solution was the Kaizen philosophy, which translates to “change for the better” or “continuous improvement.” This is a perfect example of employee-driven innovation at scale. Unlike a one-off suggestion box, Kaizen is a deeply embedded cultural practice where every employee is encouraged to identify and propose small, incremental improvements to their daily work. This approach is built on trust and a fundamental belief in the intellectual capacity of every team member.

Universal Empowerment: Every employee is a designated innovator, with the authority and encouragement to improve their own work processes.
Small, Constant Changes: The focus is not on grand, revolutionary ideas, but on a perpetual stream of small improvements that collectively lead to massive gains in efficiency and quality.
Respect for People: The foundation of Kaizen is respect for the employee, recognizing that the person doing the work is the one best equipped to find a better way to do it.

The Result:

The Kaizen system has yielded millions of employee-submitted ideas over the years, many of which have been implemented. These small, incremental innovations have led to significant improvements in quality, safety, and productivity, solidifying Toyota’s position as a global leader. This case study proves that when you democratize innovation and give every employee a voice, you create a powerful, self-sustaining engine of continuous improvement that is incredibly difficult for competitors to replicate.

Conclusion: The Strategic Imperative of Engagement

The future of innovation is not a secret blueprint held by a few executives; it is a collaborative effort fueled by the collective intelligence and passion of your entire workforce. Engaged employees are not just more productive; they are the wellspring of your company’s future. By creating a culture that nurtures curiosity, empowers autonomy, and measures the impact of grassroots ideas, you can transform your organization from a passive recipient of change into a powerful creator of it.

As leaders, our most critical role is to stop seeing employee engagement as a mere HR metric and start seeing it for what it truly is: the ultimate strategic imperative for building a resilient, innovative, and future-ready enterprise. Invest in your people’s curiosity, and they will, in turn, innovate your way to a more prosperous and sustainable future.

Extra Extra: Futurology is not fortune telling. Futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futurology themselves.

Image credit: Pixabay

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People Cannot Work Forever

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People Cannot Work Forever

GUEST POST from Mike Shipulski

When cars run out of gas, they can no longer get the job done until their tanks are filled up. And it’s the same with people, except people are asked to keep on truckin’ even though their tanks are empty.

When machines are used for a certain number of hours, they are supposed to be given rest and routine maintenance. If the maintenance isn’t completed as defined in the operator’s manual, the warranty is voided.

Maybe we could create a maintenance schedule for people. And if it’s not done, we could be okay with reduced performance, like with a machine. And when the scheduled maintenance isn’t performed on time, maybe we could blame the person who prevented it from happening.

If your lawnmower could tell you when you were using it in a way that would cause it damage, would you listen and change your behavior? How about if a person said a similar thing to you? To which one would you show more compassion?

When your car’s check engine light comes on, would you pretend you don’t see it or would you think that the car is being less than truthful? What if a person tells you their body is throwing a warning light because of how you’re driving them? Would you believe them or stomp on the accelerator?

We expect our machines to wear out and need refurbishment. We expect our cars to run out of gas if we don’t add fuel. We expect our lawnmowers to stall if we try to mow grass that’s two feet tall. We expect that their capacities and capabilities are finite. Maybe we can keep all this in mind when we set expectations for our people.

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