June 10, 2011
An actively engaged employee is a productive member of your organization. They care, they’re motivated and they are actively contributing. In fact, a large part of your company’s success is the direct result of their accomplishments, creativity, drive and talent.
A 2006 Gallup poll found that higher performing companies have a significant difference in the ratio of engaged versus disengaged employees than lower performing organizations. That’s 8:1 for the best, and just 2:1 at the average companies. If yours is one of those high-performing companies, that’s very good news.
But, according to a 2010 survey by global consulting firm BlessingWhite, only 31 percent of the global work force is actively engaged. Overall, they found that 52 percent of the work force is not engaged. That means they come to work and do what’s expected or less. If that isn’t an eye opener; it turns out 17 percent of the workforce is actively disengaged: they show up when they feel like it, and continually undermine and work against you.
This is important because employees who aren’t engaged lower overall productivity and add to turn over and that costs you. Before the recession, the cost of replacing an employee averaged $17,000 and those who made more than $60,000 per year cost more than $38,000 to replace. Now human resource managers tell us to look at an employee’s annual salary and figure 100 to 150 percent is what it will cost you to replace them. This includes lost productivity, recruitment and training. When you consider managerial and C-suite compensation packages, the total cost is sobering.
It turns out that the best predictor of high performance is that ratio of actively engaged employees at every level of the company. And employee engagement is most positively impacted when managers have excellent people skills. Managers who have great relationships with their direct reports out-perform those who rely solely on management actions.
This leads me to conclude that mentorship skills (people skills) and a mentoring environment (learning and support) are important tools for improving employee engagement at all levels of your organization. Once you have hired the best and brightest, mentoring is one of the most effective ways to ensure they stay engaged and committed to your organization. Mentoring enhances loyalty by placing high potential employees on the fast track with the extraordinary benefit of high quality senior level guidance.
Mentoring programs deliver three proven outcomes:
• While the best skills training can produce a bump in productivity of 33 percent, training combined with effective professional mentoring improves productivity up to 88 percent.
• Mentees form stronger bonds with you and your company because they can see a worthwhile future that includes them.
• Mentors experience a stronger sense of purpose and satisfaction when they use their knowledge and expertise to cultivate and develop another person.
Costly employee turnover will be reduced because employees in an effective mentoring relationship feel appreciated, have the opportunity to give and grow. Mentees get personal coaching, sponsorship and encouragement, enhance their skills, and increased levels of confidence. Both sides of the mentoring partnership experience a greater sense of satisfaction in their careers and often in their personal lives.
Here’s where you can see the complete study: http://www.blessingwhite.com/eee__report.asp
The people skills employees need in order to have effective mentoring partnerships can be learned and Odyssey Mentoring provides the training that empowers effective mentorship.