Economic Crisis Impacts Employee Engagement

OMAHA, Neb., Jan. 14 /PRNewswire/ -- Results of a national comparative survey
of US companies between 2007 and 2008 indicate that 66 percent of the firms in
the study saw decreases in their employee engagement, according to Greg
Harris, president, Quantum Workplace, a market research company that surveys
employee engagement.

"Employee engagement is measured by the ability and willingness of individuals
to exert extra effort for the benefit of the company, their tendency to speak
highly of the organization and their intent to stay," according to Mr. Harris.

Best known as the research firm behind Best Places to Work programs in more
than 40 metro areas, Quantum Workplace surveys more than 1.5 million employees
among 5,000 companies nationwide. The surveys are conducted at different
times of the year, but at the same time of the year in each location.

"In the past, our surveys have shown how employers can significantly
influence, if not control, how motivated and satisfied their employees are.
But, we couldn't help but wonder what affect such a significant event beyond
employer's control--an economic crisis--might have on employee feelings and
perceptions of their workplaces.

By an almost two-to-one margin (134 to 76), more employers had lower overall
employee engagement scores in the fall of 2008 than in the fall of 2007. This
result is out of the ordinary from our trends for the last five years, and
strongly suggests that external circumstances regarding the economy may well
be influencing employees' attitudes about their jobs and workplaces," adds Mr.
Harris.

Lessons Learned
"To explore the issue further, we conducted an analysis of the 210 companies;
both those that had higher engagement scores and those whose scores had
dropped off.

Our analysis uncovered five key differentiators that reveal how some employers
are growing and where others may be losing their hold," notes Mr. Harris.

The following five lessons were responsible for a disproportionate share of
the variation among winners and losers:
1. Setting a clear, compelling direction that empowers each employee.
While
the future might look grim to some employers, employees at other
companies are working hand-in-hand with their supervisors to create a
positive future for the company.
2. Open and honest communication. While some employers are hiding bad news
from their employees, other companies are keeping their employees
informed and updated, even if the news isn't always good.
3. Continued focus on career growth and development. While some employers
are cutting jobs or scaling back on promotions, other employers are
helping their associates see opportunity in the midst of the crisis for
their own growth and development.
4. Recognizing and rewarding high performance. While some employers may be
instituting hiring freezes and cutting back on perks, others will
continue to finds ways to reward those who are taking care of customers
and keep them coming back.
5. Employee benefits that demonstrate a strong commitment to employee
well-being. While some employers are scaling back employee benefits,
others are committed to helping maintain the health and vitality of
those
who work for them.

According to Leigh Branham, author of The Seven Hidden Reasons that Employees
Leave, "It may be difficult to implement the five lessons described, but as
Winston Churchill admonished: 'Kites rise highest against the wind--not with
it.' The additional efforts to engage employees, in spite of the economic
currents, can garner significant returns."

"Having a highly engaged workforce certainly doesn't completely insulate an
organization from economic recession. But a more engaged workforce can act as
insulation, a buffer if you will, from the effects of the economic downturn,"
according to Mark D. Hirschfeld, principal, Goldenrod Consulting, Inc.

For additional information on this survey and other employee engagement
issues, please go to www.quantumworkplace.com.

SOURCE Quantum Workplace

Brittany Cash, T.J. Sacks & Associates Inc, +1-212-787-0787,
Brittany@tjsacks.com