The second key idea is social capital or Know-who. We tend to value Know-how more than Know-who but the latter is equally valuable. First, Know-who is not just knowing someone, but it is a reciprocal relationship build on trust and value. If I have a question about a problem at work, I will go to someone who I know can contribute value, add new insights and help resolve the issue. That person is a Know-who. Likewise, hopefully you can add value in the same way for others. So this is not just knowing someone, it is based on value exchanged. These individuals become part of social capital., and what is interesting is that social capital becomes a more enduring asset than Know-how.
This data is from Watson Wyatt and it shows that there is still a lot of improvement in terms of engagement that can be realized. Other research (from CCL) actually shows a much larger neutral area of up to 50 to 60%. There is room for improvement at the company level. It is important, however, to move beyond group data and look at top talent engagement, and then each person’s engagement factors.
Speaker’s Notes: Across recent months, Council members have cited increased focus on the issue of employee engagement. Many organizations worry about the state of workforce commitment given the environment of the past few years of staff cutbacks, the requirement to do “more with less,” outsourcing, and offshoring. Regardless of whether we will see a war for talent to mirror that of the late 1990s, organizations are concerned that an economic recovery will lead both to increased turnover and demands for heightened productivity. And, as illustrated on this slide, the Council’s research has demonstrated the central role of workforce engagement and commitment in promoting employee productivity and retention. That is, the Council has found that there are real business outcomes produced by increasing employee engagement. These business outcomes are illustrated on this slide. Based on a survey of 50,000 employees at 59 organizations in 27 countries and 10 industry groups, the Council’s research team found that highly committed employees perform up to 20 percentile points better and are 87% less likely to leave their organizations than employees with low levels of commitment. To help organizations further conceptualize the potential gains to be made by promoting employee engagement, the Council’s analysts derived the following two “rules” described on this page: The 10:6:2 rule of the impact of engagement on employee performance, which is that every 10% improvement in engagement leads to a 6% improvement in employees’ effort levels, which, in turn, leads to a 2 percentile point improvement in performance. The 10:9 rule of the impact of engagement on intent to stay, which means that every 10% improvement in engagement leads to a 9% improvement in employee intent to stay at the organization over the next 12 months. So, what did the Council find was the engagement level of the surveyed workforce?