“Good leaders make people feel that they’re at the very heart of things, not at the periphery. Everyone feels that he or she makes a difference to the success of the organization. When that happens people feel centered and that gives their work meaning.”
– Warren G. Bennis

Today’s economy threatens businesses of all sizes in every industry. If you’re a business owner or leader, you’re probably losing sleep over declining sales, shrinking profits, the prospect of laying off employees, and perhaps even the very survival of your business.

One thing you may not be worried about is retaining your best employees. After all, in the current environment of layoffs and hiring freezes, your employees have nowhere to go. Perhaps you’ve put your employee retention and development programs on hold to save money until times are better.

Sorry to compound your worries, but if you’re not working to keep your best employees, your best employees may go work for someone else once the economy starts to turn around. In fact, one recent survey found that 25% of employees are considering changing jobs once the economy improves. Among dissatisfied employees, 41 percent plan to jump ship. Many companies that are doing well or are anticipating a turnaround are scouting for top players from competitors. Makes you wonder who might be looking at your “A” players.
Now more than ever, it’s essential to create a culture of employee engagement – an atmosphere in which employees feel informed, involved and enthusiastic about their work and the company. Not only do engaged employees want to see the company succeed, they’re ready and willing to go the extra mile to make it happen.

Nurturing employee engagement pays both short- and long-term dividends. Studies have shown that highly engaged employees are significantly more productive than their peers. When headcounts are down and budgets are restricted, this increased productivity can make the difference between business failure and survival. And when the economy starts to turn around and job openings abound, employees who are engaged won’t be lured away from your company.

Creating a culture of employee engagement

The good news is that creating a culture of engagement doesn’t have to cost a lot of money. Much of it has to do with how leadership communicates and works with employees on a day-to-day basis:

1. Developing trust: Trust in the company leadership is one of the foundations for employee engagement. Building trust starts with articulating a clear vision for your organization. Day-to-day consistency is essential. Sudden changes in direction or actions that are inconsistent with your company’s vision, values and goals can destroy trust. (You do lead your employees with your vision, values and objectives, don’t you?)

2. Sharing decision making: The idea of involving employees in decision making is threatening for some managers. It shouldn’t be. Giving employees input into decision making not only gives them a sense of empowerment, but allows management to tap into their combined knowledge and creativity to solve problems. Most companies find that shared decision making not only increases employee engagement, but results in better decisions, as well. If you don’t feel you have employees who can think well enough to participate in good decisions, ask yourself who hired them and who is teaching them.

3. Linking employee roles to company success: It isn’t always obvious to employees how their job contributes to the overall success of the company. Employees who have no direct contact with customers can find it especially difficult to understand why their job matters. When managers help employees understand the consequences of their work and how they can make the company more successful, employees not only feel more engaged, but work harder and more efficiently.

4. Helping employees grow and develop: Employees feel more engaged when they know they can work their way up the ladder in the company. It starts with a commitment to hiring from within and an ongoing employee development program. Managers must encourage employees to develop their talents and acquire new skills through regular coaching and training programs. Too many managers do not have open conversations with employees about their career paths.

5. Nurturing two-way communications: Business leaders sometimes forget that true communications is a two-way process. Conveying information to employees is only half of it. The other half — listening to employee reactions and feedback – often doesn’t happen. It’s not enough to assume that middle managers and first-line supervisors will convey employee comments back up to senior management. Employees need channels to communicate directly with senior management. Old-fashioned suggestion boxes still work well. Formal and informal meetings with management can also be very effective.

Does your company culture nurture employee engagement? If not – or if you’re not sure – you’re at risk of losing your best employees when the economy comes out of recession. Start taking steps today to build trust, open up two-way communications and let your employees know they’re a critical part of the company’s success.