The Three Drivers of Engagement
Every organization has seasons in which employees are highly motivated and stretches where personnel lack concern for fulfilling their responsibilities. This makes it challenging to manage business operations, as the ebbs and flows test even the mightiest of corporations.
In spite of these dynamics, Costco, the multibillion dollar global retailer, has been able to consistently get the best out of employees by ensuring all are engaged in their work. They accomplish this by leveraging the three drivers of engagement: serving a valuable purpose, being empowered to deliver results, and working in a fulfilling environment.
Costco employees serve a valuable purpose by being provided the opportunity to make a positive impact. More than just showing up for work, employees have the ability to make important contributions. This is accomplished numerous ways. Most notably, the majority of employees at each warehouse store have direct interaction with customers. This enables them to acquire an immediate appreciation for the service they provide. They are able to see how their actions positively affect the customer experience.
The retail giant empowers employees to deliver results by leaning on their vast knowledge and experience. Rather than treating members of staff as naïve personnel lacking strong insight into the business, leadership routinely consults with members of the team to gain insight into operational activities.1 This occurs in many ways, and consistently comes all the way from the top. Jim Sinegal, who held the title of CEO from inception in 1983 to when he retired in 2012, traveled the countryside 200 days annually to visit Costco locations.2 However, more than just pop into the stores to speak with management, Sinegal personally connected with employees on the floor who were selling his products. He regularly perused the aisles while chatting with staff, learning about their daily activities, and encouraging them to improve the company.3 Knowing that their advice is valued and their actions are appreciated, employees’ interest in making Costco better is strengthened. They are aware that their keen discernment enables continuous improvement.
Finally, the company creates a fulfilling work environment by ensuring employees are capable of performing their best work. Costco prides itself on ensuring employees have the opportunity to grow within the organization and works to create a culture that enables personnel to stay focused on job responsibilities. Specifically, rather than be treated as employees with skills that remain static, personnel have the opportunity to grow in their careers. The company makes a concerted effort to provide promotional opportunities for motivated employees and rewards hard work. This leads to better performance and increased output. Additionally, almost 90 percent of personnel at Costco have company-sponsored health insurance.4 This enables employees to focus less on extraneous circumstances and worrying about their health and well-being, and more on fulfilling their role in the organization.
It is no secret that by ensuring employees are engaged, Costco believes in turn, the company will deliver better business results. This benevolent management style has enabled Costco to boast of the lowest employee turnover rate in retail, more than five times less than Walmart.5
However, while workers love being employed by the retail giant, shareholders are often critical for what they deem as unjustified exceptional treatment of employees. Investors believe policies jeopardize the financial returns that could be achieved if a more conservative approach was used. By spending less time worrying about employee engagement and more time focused on earnings, the ability to grow the company to even greater heights is feasible.
While some companies (and leaders) would have wilted under this pressure, Costco’s approach has been resolute. This has enabled team members to remain engaged, thereby ensuring the company will continue to flourish. Not surprisingly, year after year this business model has proved to be right. From 1995 to 2015, Costco averaged annual returns of 16.5 percent, far superior to almost any other firm in that timeframe.6
The Three Drivers of Engagement
In the past, it was believed money was the ultimate motivator for engagement and served as the driver for improving performance. In essence, if you wanted employees to perform a certain way, you needed to increase their wage, and theoretically, the bigger the pay increase, the better the results. In reality, this approach does not carry weight. The notion that employees will chase after money similar to the way a donkey chases after a carrot on a stick isn’t true. People do not become more engaged in their work simply because of an increase in pay.
While financial compensation is a motivator that can generate specific behavior within an organization, research shows that money is only a driver for engagement when it will provide a lifestyle change. Incremental increases in pay will not provide a deeper level of engagement, they will only generate short-term compliance.7 So, while providing more compensation for a job well done is appreciated, to truly engage employees it is imperative to focus on strategies and practices that instill passion and commitment.
Not surprisingly, employees become captivated by their work various ways. With different cultures, ethnicities, social norms, personalities, and behavioral traits that represent our diverse workforce, there isn’t a one-size-fits-all solution to ensuring people will be engaged in their daily activities. As such, different strategies and practices must be used to improve productivity and optimize workplace performance. However, regardless of the actions taken, employee engagement hinges on three drivers:
Serving a valuable purpose
Being empowered to deliver results
Working in a fulfilling environment
Serving a Valuable Purpose
Serving a valuable purpose naturally engages because of the inherent desire to be involved in something that is greater than oneself. Individuals are energized by the awareness that their actions have a specific benefit and will work to continue providing this value. This transforms potential into productivity and captivates due to the actions one must take for the value they provide to endure.
This can be seen in all types of roles, ranging from doctors saving lives and teachers molding young minds to electricians fixing faulty wiring and chefs cooking gourmet meals. Regardless of the position, serving a valuable purpose pushes employees to reach for greatness. Further, serving a valuable purpose provides employees’ the opportunity to make a positive impact, increases a sense of belonging, and strengthens resilience when facing adversity.8
Positive Impact
The opportunity to make a positive impact inspires people. When employees are able to see how their contributions make a difference at a company, for a project, in the lives of others, or in anything else they are involved, they are drawn in and interested in continuing to add that value. This makes it no longer a chore to carry out tasks, rather an opportunity to make a difference.
Engagement is even more profound when employees’ actions can be directly connected to achieving organizational objectives. Seeing how specific actions create a distinct benefit provides an enriching experience and enables people the opportunity to appreciate the value they deliver and how they are an important piece of the puzzle. This alters the way employees’ work, as individuals are permanently rooted in delivering results.
A prime example of this involves a woman who works for a large regional hospital; her role, cleaning the floors in the cancer center. While some could view her as having minimal impact on the success of the hospital, she sees it in an entirely different way. She knows that the people coming into the hospital and entering the cancer center are experiencing one of the worst days of their life. Because of this, not only do the patients need their doctors to be at the top of their game, the janitor knows they need the hospital to be pristine as well. As such, she performs her role to the best of her ability and delivers a spotless ward each day. The positive impact she has on the patients inspires her to deliver her best work.9
Sense of Belonging
Serving a valuable purpose increases a sense of belonging. As humans, we were built for community and have a yearning to be a part of team and participate in a meaningful endeavor. People are energized and strengthened by others, and appreciate the opportunity to be a part of something great! This sense of belonging creates engagement, knowing that others are counting on you to deliver. Being part of something that extends beyond you, regardless of whether it is formal or informal, creates a sense of unity and togetherness that motivates people to put forth their best effort.
This is evident from soldiers standing in formation to honor the flag, employees working late to meet an important deadline, and parents attending PTA meetings to support the school district. These people have a sense of belonging that extends far beyond merely showing up; they are part of an organization and understand their value, and how delivering their best effort strengthens the unit. They know others are counting on them.
Resilience
Finally, serving a valuable purpose boosts resilience. In any job, it is undeniable that you will face obstacles, with your perseverance in the midst of these challenges being tested. Failing to have purpose, the desire to overcome can be lacking; there is little reason to reach for greatness if the end result has no meaning.
However, when serving a valuable purpose, people have a desire to produce knowing their actions are critical to success. They realize that without their contribution, the end result will suffer. As such, the need for them to fulfill their responsibilities is paramount.
This can be seen in arguably the most difficult job in the world, parenthood. Especially in the early years of being a parent, the importance of having resilience is undeniable. The late nights, early mornings, and endless needs of a newborn can push any parent to the brink. However, because of the remarkable purpose (and love) that parents have, the ability to be resilient is within them.
Bringing It All Together
Regardless of the situation, people that serve a valuable purpose are more engaged. Their opportunity to provide a tangible benefit inspires them to pursue their responsibilities with vigor, which ultimately increases output.
More generally, the desire for purposeful work is increasing. Eighty-four percent of millennials are interested in serving a valuable purpose in the workplace. More than just receiving a paycheck, they want to feel as though they are making a difference. With this generation expected to represent 75 percent of the workforce by 2025, it is imperative to ensure purpose-centered opportunities are available.10
Being Empowered to Deliver Results
Being empowered to deliver results enables people to develop a newfound passion for fulfilling their roles. This instills a sense of freedom that elevates performance while liberating people to pursue goals that extend far beyond what could be achieved otherwise. It is by empowering employees that companies transform from a business with managers and subordinates to an enterprise filled with leaders at every level of the organization. This sense of empowerment promotes autonomy, supports the use of unique skills, and properly challenges employees.
Autonomy
Autonomy is the desire to be self-directed and maintain responsibility for personal actions. While traditional management does a great job of ensuring compliance, employees are more engaged when they have the authority to fulfill their job responsibilities in the way they find most suitable. By providing employees freedom to execute their duties in a way that is most appealing to them, they are more engaged.11
Further, providing employees’ autonomy eliminates the confines jobs can create and releases people from drudging through unfulfilling roles. It is autonomy that opens the doors to creativity, innovation, and continuous improvement, and enables people to discover ways to increase organizational and personal productivity. Research shows that employees who are provided autonomy deliver better results, have higher job satisfaction, and possess increased motivation; there is also less employee turnover, reducing expenses to continually recruit, hire, and train staff.12
Alternatively, when employees lack autonomy, an increase in unrest and frustration typically resonates from within. This translates into a lack of productivity as individuals slowly distance themselves from their work. While it is clear that rules and regulations must be established in every organization (and followed by staff), micromanaging how employees fulfill their daily responsibilities is detrimental to engagement and produces worse results.
Using Unique Skills
Virtually everyone has had the painful experience of being in a job where you simply watched the clock for hours on end until you were finally able to go home. While ready, willing, and able to add value to the company, the opportunity never presents itself. Instead, you grow increasingly discouraged as you wait for your turn to be involved. Initially, you may have been fine with this; however, as time progresses and the situation does not change, your frustrations increase.
This alienating experience leaves employees not only disengaged, but resenting the company and their role. Employees know they are wasting their time by not having the opportunity to participate. This lack of opportunity brings with it a steady stream of bitterness and discontentment, while simultaneously stifling productivity and destroying any resemblance of what could actually be accomplished.13
Alternatively, being empowered to use unique skills is very attractive to all who enter the workforce. Consistently applying talents and abilities that one possesses encourages hard work, increases accountability, and helps employees appreciate the value they provide to their company. Further, by providing the opportunity for employees to actively use their talents regularly, creativity and resourcefulness takes over. Rather than being stuck on the sidelines waiting for their number to be called, immersion in the job instinctively pushes people to put forth effort.
Properly Challenging Employees
Along a similar vein, challenging employees fuels engagement. Regardless of whether it is to cut costs, reduce accidents in the plant, or turn a business unit around, people love having the opportunity to meet a challenge head on.
This improves performance for many reasons, including because of employees’ awareness that their organization has placed confidence in them based on the inherent belief that they can fulfill the responsibilities required to deliver a positive outcome. This confidence strengthens engagement, while simultaneously instilling a sense of duty. When providing employees with a challenging problem and empowering them to deliver a solution, those involved realize it is not acceptable to merely try to meet expectations; with this ownership, employees possess a vested interest in success.
Conversely, when not challenged, employees do not feel connected to their work nor do they possess an inclination to put forth effort. This leads to less than optimal results. While people will typically strive to complete tasks and fulfill the requirements their role comprises, they will instinctively give a less than inspiring performance.
However, it must be known that while providing challenging work to employees is beneficial and increases engagement, if the challenge is too great and extends beyond the skills an employee possesses, lack of engagement can materialize as well. Just as tasks that are too easy will diminish interest, work that greatly surpasses an employee’s capacity will also reduce dedication. If responsibilities extend well beyond an employee’s aptitude, they can become unattached and exert effort to avoid getting involved altogether. This active disengagement enables employees to avoid activities they believe they are inclined to fail.
As such, it is not a question of whether companies should challenge employees, rather it is ensuring they provide the appropriate challenges that will enable their people to flourish. By finding this balance, employees will have the opportunity to work in their sweet spot while acquiring an increased desire to fulfill their duties.
Bringing It All Together
Being a part of a workplace that empowers can be transformational. The freedom and strength that comes from being empowered enables employees to develop in ways one might not dare dream otherwise. This leads to innovation, the development of new skills, and the opportunity to deliver an increased impact to the company.
Further, when employees are empowered and have ownership over their responsibilities, they are in essence, in control of their own destiny. This enables them to maintain excitement for the opportunities they have and ensures they will do a better job due to the personal satisfaction of knowing they are not mindlessly following orders. Rather, they maintain authority over their actions.
Working in a Fulfilling Environment
We’ve all been in a traffic jam on our way to an important meeting, attended a party in which a person you just had an argument with shows up, or sat in line at the supermarket as you impatiently waited for your turn to check out. In these environments, rarely are we at our best. Instead, we act with haste and frustration as we anxiously look to remove ourselves from the infuriating situation.
No longer are we concentrating on the presentation we must give for the important meeting, rather we curse at every car that is in our way; gone is the interest in having a nice time with friends at the party, instead we think about the argument we had with the person who just walked through the door; and absent are thoughts regarding activities we must complete after leaving the grocery store, in their place is anger directed at the slow cashier on the register.
In each of these environments, we are no longer putting forth the best version of ourselves nor maintaining focus on what we were initially interested in accomplishing. Instead, our attention shifts to areas that provide minimal value as we work to overcome the problems that lay in front of us. These situations can be similar to unfulfilling work environments. Unfulfilling work environments take focus away from primary objectives and toward obstacles. This restricts the ability to complete tasks and fulfill responsibilities.
Conversely, fulfilling work environments provide a quality setting in which employees can concentrate on their responsibilities and be engaged in their work. Rather than having to deal with unnecessary challenges, members can focus on delivering results. Specifically, employees are more engaged when workplace culture is strong, they have the right resources to do their job, and there is opportunity to increase skills and grow.
Workplace Culture
When discussion about fulfilling work environments surface, one area that is often thought of is workplace culture. Characteristics of workplace culture can include the way a business looks, management styles, business values, work-life balance, benefits, and how employees interact with customers, to name a few. However, the behaviors and attitudes employees’ display, and how colleagues treat one another are quite often the biggest reasons for a dynamic culture or one that lacks appeal.
Developing a strong workplace culture in which an encouraging community of employees breathes positive energy into one another is inspiring and provides a sense of motivation for everyone who walks through the door. Positive cultures expose the strengths of organizations and lift everyone’s performance, and as one individual achieves success, their accomplishments encourage others to push harder and reach for greatness as well. It is with strong workplace cultures that companies flourish, and move from good to great.
Conversely, the tearing down of colleagues, outward disrespect between employees, and lack of accountability within an organization incapacitates strong work ethic and a desire to achieve. Organizations with poor workplace cultures are easy to spot and are often seen floundering about without clear direction. While in great workplace cultures a collective approach toward success is present, in poor cultures employees maintain focus on personal acclaim over organizational achievement.
It is not surprising employees are more engaged in positive cultures. The encouraging surroundings provide a comfortable atmosphere in which employees can focus on performing. This enables people to free themselves of unnecessary challenges that do not add value.
Having the Right Resources
While having a positive culture is a predominant area of emphasis involving a fulfilling work environment, more is needed than just that. Specifically, employees having the right resources to perform their duties is also important. This can be adequately explained using Herzberg’s Motivation-Hygiene Theory. Herzberg’s Motivation-Hygiene Theory, in a nutshell, states that if certain criteria are not met, job satisfaction will not be present; however, it does not necessarily mean that if the criteria are met, employees will be content.
Applying this to working in a fulfilling environment, this theory can be used in a variety of ways. One of the most tangible involves having access to the appropriate resources to execute one’s responsibilities (equipment, workspace, finances, personnel, and so on). While it is not assured that employees will be captivated by their work when they have the necessary tools to fulfill their duties, the lack of having appropriate resources will create an unfulfilling work environment. Regardless of whether it is an out-of-date computer program that requires excessive manual labor, lack of adequate personnel to complete a project, or inability to acquire a specific tool that necessitates an extra hour on the clock, failing to have the right resources pushes people away from wanting to do their job.
This unsettling, albeit common challenge, curbs employees’ enthusiasm as they must scavenge to find the necessary tools to complete their work. When this transpires, their interest wanes and excitement turns into frustration. Conversely, while it is not a certainty that people will be actively engaged when they possess the proper resources, by eliminating this risk, employees are more able to focus on work and less likely to be distracted by extraneous challenges that lead to disengagement.
Opportunity to Increase Skills and Grow
Having the opportunity to improve yourself and grow within an organization is an important part of working in a fulfilling environment. The prospect of expanding job responsibilities and growing within a company is enticing.
The feel-good stories about how the one-time Administrative Assistant is the current VP of Human Resources or former Line Worker now proudly serves as Plant Manager inspires. In these stories, the individuals involved are not placed into a box nor are they given limited opportunity to grow. Rather, they are recognized as valuable contributors who possess dynamic skills, and when presented with the right opportunity, have the ability to increase the value they provide to the company. Instead of being seen merely as a filler of a particular job that completes specific tasks, the organization views these individuals as valuable team members with knowledge and experience that can serve a greater purpose in the organization.
Further, everyone enjoys being skilled in one form or another, with people often acquiring a sense of accomplishment after becoming an expert in their craft. This is why people go to school to earn a degree, learn innovative techniques for their job, and develop the competence to use a new piece of equipment. It is satisfying to advance one’s abilities and develop new talents that are valued.14
Bringing It All Together
While working in a fulfilling environment incorporates various components and can mean many things to many people, they always create the opportunity for employees to be successful. Fulfilling work environments generate positive energy, foster inspiration, and provide a quality setting in which employees can deliver superior value. Further, with challenges and distractions kept to a minimum, opportunity to optimize performance is present; executing responsibilities can remain the predominant focus.
Leveraging These Drivers to Increase Engagement
By leveraging these three drivers, companies have a platform in which they can provide the best opportunity for employees to be engaged. Further, using these drivers creates a workforce that is dedicated to organizational success over personal glory, as people look for ways to build up their team instead of focusing solely on themselves.