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About the Author TABLE OF CONTENTS About the Author ........................................................................................................................................................ 3 Other Related Leadership Roles: ........................................................................................................................ 4 Personal: ................................................................................................................................................................. 4 Contact & Social Media Information ........................................................................................................................ 5 Acknowledgements .................................................................................................................................................... 6 Disclaimers and Terms of Use ................................................................................................................................. 7 Introduction ................................................................................................................................................................. 8 What My Readers Say .............................................................................................................................................. 9 Other Resources ...................................................................................................................................................... 10 How Much Money Are Your "Actively Disengaged" Employees Costing Your Business? ........................... 13 Gallup Management Journal Survey ................................................................................................................. 13 15% OF U.S. Workers are "Actively Disengaged" Costing the U.S. Economy $328 billion ..................... 13 Each "Actively Disengaged" Worker Costs His Company About $15,922.00 ............................................ 14 U. S. Department of Labor Bureau of Labor Statistics Press Release April 16, 2009 .............................. 14 The Median "Actively Disengaged" Worker Costs His Company 41% of His Wages in Lost Productivity ................................................................................................................................................................................ 14 How Much Are Your "Actively Disengaged" Workers Costing You?............................................................ 14 What if You Could Make the 56% of "Not Engaged" Employees You Have More Productive? .............. 15 Stay Tuned ............................................................................................................................................................ 15 Reality Check Quiz # 1 ........................................................................................................................................ 16 Motivational Quote ............................................................................................................................................... 17 Management Success Tip .................................................................................................................................. 17 Stop Your Employees From Taking Your Profits - What to Do About Your “Actively Disengaged” Employees 18 U.S. Dept of Labor Bureau of Labor Statistics Press Release on April 16, 2009 ...................................... 18 The Gallup Management Journal Survey gives the following definition ...................................................... 18 Based on the Above Information It is Clear that Companies Like Yours Have a Problem That is Costing You a Lot of Profits - the Problem is Your "Actively Disengaged" Employees. .......................................... 19 Fire Fast? .............................................................................................................................................................. 19 First Step ............................................................................................................................................................... 20 Motivate "Actively Disengaged" Employee? .................................................................................................... 21 Document! ............................................................................................................................................................. 21 Copyright ©2009 Globebic - Smart Management Now - Lois Moncrief All Rights Reserved 1 2 Special Report – How to Engage Your Employees to Greater Performance and Watch Your Profits Go Up! Step Wise Process............................................................................................................................................... 21 Bottom Line ........................................................................................................................................................... 22 Story of “Actively Disengaged” Employee Who Became an “Engaged” Employee ................................... 22 Reality Check Quiz # 2....................................................................................................................................... 23 Motivational Quote ............................................................................................................................................... 25 Management Success Tips ................................................................................................................................ 25 Hang on to Your Rock Stars, Your Movers, Your Shakers - Your Engaged Employees .............................. 26 So How Are You Going to Keep Your Engaged Employees and Hire More Engaged Employees? ...... 26 How to Keep Your Engaged Employees Who Help Keep YOUR BUSINESS Growing ........................... 27 Consider Hiring More Engaged Employees ..................................................................................................... 28 Reality Check Quiz # 3 ........................................................................................................................................ 29 Motivational Quote ............................................................................................................................................... 30 Management Success Tip .................................................................................................................................. 30 Move Them on Up! – Getting the Most Out of Your “Non-Engaged” Employees .......................................... 31 Concentrate Your Motivational Efforts on Your Non-Engaged Employees (Your "Checked Out", "Sleep Walkers") ............................................................................................................................................................... 32 Reality Check Quiz # 4 ........................................................................................................................................ 33 Motivational Quote ............................................................................................................................................... 34 Management Success Tip .................................................................................................................................. 34 copyright (c) 2009 Lois Moncrief All Rights Reserved About the Author ABOUT THE AUTHOR Lois Moncrief I am the owner of Globebic LLC which I established in 2008. Globebic is a vehicle for me to share my lessons learned from my 29 years of management experience. This ebook is produced by Globebic LLC. Prior to establishing Globebic LLC, I had 29 years of successful management experience managing groups between 17 and 34 employees. My last position, before setting up my own company, was as Assistant Director for the United States Dept of Labor Occupational Safety and Health Administration (OSHA) National Analytical Laboratory (a division) inside the Salt Lake Technical Center. I hold a Masters in Engineering Administration (MEA) from University of Utah. I was admitted into Phi Kappa Phi (a national collegiate scholastic honorary) for my work on my MEA. Masters in Engineering Administration Degrees are technical Masters in Business Administration degrees. I also have many credits for attending management seminar courses over the 29 years. I have received Secretary of Labor Exceptional Achievement Awards for my accomplishments. The most notable was for my contribution on the World Trade Center Emergency Response Team after September 11, 2001. I also played substantial roles in the Hurricane Katrina cleanup, the Cadmium Standard and also the Methyl Isocyanate method development work in response to the Bhopal, India disaster in 1984. Copyright ©2009 Globebic - Smart Management Now - Lois Moncrief All Rights Reserved 3 4 Special Report – How to Engage Your Employees to Greater Performance and Watch Your Profits Go Up! Here I am receiving my Secretary of Labor Exceptional Achievement Award for my work on the World Trade Center Emergency Response Team after the September 11, 2001 disaster. I am receiving the award from then Secretary of Labor, Elaine Chao and then Assistant Secretary of Labor for OSHA, John Henshaw, is standing on my other side. OTHER RELATED LEADERSHIP ROLES: Acting OSHA Technical Data Center (TDC) Director in Washington D.C. where I oversaw the docket for the Indoor Air Standard for part of 1994 and the TDC staff. Acting Assistant Regional Administrator for Technical Support for OSHA's Region V in Chicago for part of 1999, I oversaw the work of the staff of engineers and industrial hygienists. Acting Deputy Director for the Salt Lake Technical Center for 4 months in 2005. American Industrial Hygiene Association (AIHA) Laboratory Accreditation Chairman 1981 overseeing the accreditation of over 200 laboratories - several were international laboratories. American Industrial Hygiene Association (AIHA) Deputy Chair for Registration for the National Conference in 1991 with over 8000 attendees. PERSONAL: I am married to Martin. We have a yellow labrador retriever named Shov (because he likes to play with shovels) who is very intelligent, very athletic, has a great personality, is lots of fun and very cute! Martin found him as a 6 week old puppy abandoned by a country road and we feel very lucky to have him as part of our family. I am also the step mom to Kalindy, Amity, and Brandon. All are adults now. I swim 3 times a week for exercise. copyright (c) 2009 Lois Moncrief All Rights Reserved Contact & Social Media Information CONTACT & SOCIAL MEDIA INFORMATION Email: [email protected] Websites: www.SmartManagementNow.com Blog: http://loismoncrief.wordpress.com : www.twitter.com/LoisMoncrief Copyright ©2009 Globebic - Smart Management Now - Lois Moncrief All Rights Reserved 5 6 Special Report – How to Engage Your Employees to Greater Performance and Watch Your Profits Go Up! ACKNOWLEDGEMENTS My thanks to my mentor, Chris Botterill, who has been very patient with me as he has led me along my journey. My thanks to the teachers I have had the last couple of years: Yanik Silver, Bill Glazer, Dan Kennedy, Ali Brown, Perry Belcher, Mike Filsaime, and Ryan Deiss. My thanks to Eric Ondrick, our Glazer Kennedy Idaho local chapter President, for his inspiring leadership. My thanks to Lauri Moncrief, my husband’s sister, who graciously agreed to be my proof reader even though she is a very busy lady. My thanks to Georgeanne, my mother-in-law, who is always encouraging and positive. My thanks to my dog, Shov, who reminds me that life is supposed to be fun and keeps me very entertained. My thanks to Amity, my step daughter, who is one of the joys in my life. My thanks to my other family members and friends but especially to Melinda, one of the angels in my life. My special thanks to my husband, Martin, who has taught me how great marriage can be and has filled my days with love, peace, happiness, and humor. My thanks to all my subscribers for your interest in my work. Lastly, there is always the fear when making acknowledgements that somehow you will forget to acknowledge someone who should be mentioned. I apologize if I have done that here and it is not intentional. copyright (c) 2009 Lois Moncrief All Rights Reserved Disclaimers and Terms of Use DISCLAIMERS AND TERMS OF USE The author / publisher of this special report has used her best good faith effort to present valuable and useful information on engaging and motivating employees. The author does not intend to represent that this report as a complete and thorough source of information on motivating employees. It is a collection of ideas and ways that have worked in her situation that she offers for your consideration only. She does not and cannot guarantee what your results will be. Your results will be determined by your management and people skills and follow through in applying what you have learned to your situation. The author has presented information based on what has worked in her situation. Depending upon the employment laws and other regulations that may exist in your situation you may be able to apply all, part, or none of these ideas. You should consult your laws and regulations and a lawyer, if needed, to determine what you can do in your situation if you are unsure. In addition, there may be cultural and social differences that exist for you that would influence whether these ideas are applicable in your situation. Copyright ©2009 Globebic - Smart Management Now - Lois Moncrief All Rights Reserved 7 8 Special Report – How to Engage Your Employees to Greater Performance and Watch Your Profits Go Up! INTRODUCTION When I started this special report, I wanted to focus on what I considered the most important ways to engage employees and how to motivate employees to be more motivated. I have addressed each group of engaged employees separately. During the last years I concluded my time working as a manager before starting my own company, a couple of thoughts kept rising to the surface. There seemed to be another part of me that wanted to express itself. That part wanted to be a business owner and maybe even an entrepreneur. I wanted a chance to experience that. There also came a time when I wanted to share my experiences, my lessons learned. This special report is part of that effort. I had very little guidance and help when I started as a manager. There was no one to mentor me. There was no one with 29 years successful managerial experience to say, “Hey this worked for me and that didn’t work for me” Just in case you are in that same boat then I am writing for you. I hope it helps. To Your Success! Lois Moncrief “A smart business person is one who makes a mistake, learns from it, and never makes it again. A wise business person is one who finds a smart business person and learns from him how to avoid the mistakes he made.” Jim Abrams “You must learn from the mistakes of others. You can’t possibly live long enough to make them all yourself.” Sam Levenson copyright (c) 2009 Lois Moncrief All Rights Reserved What My Readers Say WHAT MY READERS SAY "Thank you so much for your resources on motivating employees. I am putting some of your advice in practice and I'm delighted to report that things are already changing." A. Roberts "I do not know how to really thank you but what I can say is you are really making me grow in my profession. Keep the good work up!" N.M. from South Africa "Thanks for giving the opportunity to share your innovative professional thoughts and experiences...Best R those who actualize great thoughts into walking realities. I believe you are one of them." J.G. from Kuwait "Your articles are a great blessing. Thank you very much." Mike from Nigeria "Thank you so much for the articles. I am a VP of Sales at a bank in Pakistan. I just moved here from the US about 5 months ago. I am in process of putting together training for the higher management in order to change the selling and service culture, treatment and motivation of the sales staff. Any kind of help from you is welcomed." Munawar from Pakistan " Your articles are superb, full of information." M. H. from United Kingdom "I am a regular reader of your beautiful articles on motivation. It is great pleasure to hear you are creating a brand new website with a brand new domain. As subscribers we are awaiting global thoughts." Sudhakar "You always send me new articles so I would like to thank you very much. Your articles are good advice for me." C.N. "It's a really great story, and you elaborate it in a very sensible manner, and it teaches a lot to us. I would like to adopt your views to motivate my employees by narrate them this story." S. S. "I sincerely appreciate your devotion to send us articles on motivation. They have sincerely been helpful. May God Bless You." J.M. “Nothing to give you during this Christmas but just a humble word of Thank you for your inspirational and dynamic newsletters that I received all throughout this year. It has helped me a lot as a HR Manager of my organization as I have implemented some of your tips and recommendations and they are working. Once again a thank you from the bottom of my heart. A Merry Christmas and Happy New Year.” Andrew Topo, Papua, New Guinea Copyright ©2009 Globebic - Smart Management Now - Lois Moncrief All Rights Reserved 9 10 Special Report – How to Engage Your Employees to Greater Performance and Watch Your Profits Go Up! OTHER RESOURCES E-Book A collection of some of my best articles that focus on motivating employees without the use of cash awards, bonuses, promotions, etc. Includes: Inspiring True Stories - used as illustrative examples Motivational Quotes – to encourage you and your employees. Management Success Tips – to help you achieve the best results . Periodically available on http://www.SmartManagementNow.com copyright (c) 2009 Lois Moncrief All Rights Reserved Other Resources E-Book 60 Plus Ways to Motivate Your Employees. Includes: 24 Free and Low Cost Ways –to engage and motivate all your employees 8 Rewards and Recognitions – I have not seen these listed elsewhere 8 Perks – so good they won’t want to leave 8 Ways to Create a Sense of Family – when you’re family you work together and help each other. 11 Educational Incentives –increase your employees’ skills and knowledge – a great win-win for your employee, you, and your company. 3 Motivators - Reserved Just for Your Top Performers! You Also Get: The Basics of Motivating Employees How to Implement the 60 Ways to Create the Greatest Success Key Techniques to Make Motivation Last Longer Visit How to Best Motivate Different Types of Employees How to Have Employees Motivating Each Other – and free up your time! Create “Buy In” to Company Goals That Get Your Employees Working Even Harder http://www.SmartManagementNow.com to download your copy. Copyright ©2009 Globebic - Smart Management Now - Lois Moncrief All Rights Reserved 11 12 Special Report – How to Engage Your Employees to Greater Performance and Watch Your Profits Go Up! How to Engage and Motivate Your Employees to Greater Performance and Watch Your Profits Go Up! copyright (c) 2009 Lois Moncrief All Rights Reserved How Much Money Are Your "Actively Disengaged" Employees Costing Your Business? HOW MUCH MONEY ARE YOUR "ACTIVELY DISENGAGED" EMPLOYEES COSTING YOUR BUSINESS? by Lois Moncrief GALLUP MANAGEMENT JOURNAL SURVEY A recent (October 12, 2006) Gallup Management Journal (GMJ) survey of U. S. Workers classified employees into 3 types: "Engaged - Employees work with passion and feel a profound connection to their company. They drive innovation and move the organization forward."(29% of US workers are "engaged" according to the GMJ survey) "Not-Engaged - employees are essentially "checked out". They're sleepwalking through their workday, putting time - but not energy or passion - into their work." (56% of US workers are "notengaged" according to the GMJ survey) "Actively Disengaged - employees aren't just unhappy at work; they're busy acting out their unhappiness. Every day, these workers undermine what their engaged coworkers accomplish." (15% of US workers are "actively disengaged" according to the GMJ survey) 15% OF U.S. WORKERS ARE "ACTIVELY DISENGAGED" COSTING THE U.S. ECONOMY $328 BILLION Further, "GMJ's 2006 Q2 survey found that, of all U.S. Workers 18 or older, about 20.6 million or roughly 15% - are actively disengaged. Gallup estimates that the lower productivity of actively disengaged workers costs the U.S. Economy about $328 billion."The $328 billion were average data points collected quarterly Q4 2000 through Q3 2002 and then every other quarter thereafter from 2003-2006 so the cost is fairly consistent at $328 billion over those quarters from 2000-2006. Source: Gallup Management Journal, “Gallup Study: Engaged Employees Inspire Company Innovation” October 12, 2006. http://gmj.gallup.com/content/24880/Gallup-Study-Engaged-Employees-Inspire-Company.aspx Copyright ©2009 Globebic - Smart Management Now - Lois Moncrief All Rights Reserved 13 14 Special Report – How to Engage Your Employees to Greater Performance and Watch Your Profits Go Up! EACH "ACTIVELY DISENGAGED" WORKER COSTS HIS COMPANY ABOUT $15,922.00 If you take $328 billion and divide it by 20.6 million actively disengaged workers, you find each "actively disengaged" worker costs his company an average of $15,922.00. U. S. DEPARTMENT OF LABOR BUREAU OF LABOR STATISTICS PRESS RELEASE APRIL 16, 2009 According to a recent press release (April 16, 2009) from the U.S. Dept. of Labor Bureau of Labor Statistics, the usual weekly earnings of wage and salary workers for the first quarter of 2009 are: "Median weekly earnings of the nation's 100.2 million full-time wage and salary workers were $738 in the first quarter of 2009." http://www.bls.gov/news.release/wkyeng.nr0.htm $738 x 52 weeks gives $38,376.00 per year for a median salary or wage. THE MEDIAN "ACTIVELY DISENGAGED" WORKER COSTS HIS COMPANY 41% OF HIS WAGES IN LOST PRODUCTIVITY For the actively disengaged worker with a median salary of $38,376.00, $15,922.00 is 41% of his salary or wages. So that worker is costing his company 41% of his salary or wages. HOW MUCH ARE YOUR "ACTIVELY DISENGAGED" WORKERS COSTING YOU? How many actively disengaged workers do you have working for you? What % of their salaries is your company losing every year? How much are they costing your company? copyright (c) 2009 Lois Moncrief All Rights Reserved How Much Money Are Your "Actively Disengaged" Employees Costing Your Business? How long can your company afford to go on before you deal with your actively disengaged workers? What if, instead of costing you $15,922.00 in losses, you could either get that worker to contribute productively his share to the company or if not, he's out the door? In fact, what if you could do that with each of your 15% "actively disengaged" employees? WHAT IF YOU COULD MAKE THE 56% OF "NOT ENGAGED" EMPLOYEES YOU HAVE MORE PRODUCTIVE? What if you could move the 56% of "not engaged" employees you have into the top group of "engaged" employees making the "not engaged" employees more productive? How can you use the top group of your 29% "engaged employees" to bring your other employees' production up? STAY TUNED Although the recession has probably resulted in many workers doing a better job, there is still the factor of human nature. You probably still have employees in all three groups. I am going to give you some tips on how to deal with these situations in the next sections. Just for fun, take the quiz starting on the next page… Copyright ©2009 Globebic - Smart Management Now - Lois Moncrief All Rights Reserved 15 16 Special Report – How to Engage Your Employees to Greater Performance and Watch Your Profits Go Up! REALITY CHECK QUIZ # 1 Print page to fill in answers to quiz Question 1. # of Employees - How many employees do you have? For example, let’s say you have 25 employees working for you. 2. # of “Engaged” Employees – Assuming you have an average organization, how many of your employees are engaged? Your Answer ____________________ ____________________ Following with our example of 25 employees, there would be 29% X 25 = 7.25 or 7 employees who work for you are “engaged” “working with passion, feeling a profound connection to your company, driving innovation, and moving your organization forward.” 7 out of 25 average employees are”engaged”? 3. # of “Non-Engaged” Employees – Assuming you have an average organization, how many of your employees are “nonengaged”? Following with our example of 25 employees, there would be 56% X 25 = 14 employees who work for you are “non-engaged” “essentially checked out, sleepwalking through their workday, putting time but not energy or passion into their work” 14 out of 25 average employees are “nonengaged”? 4. # of Actively Disengaged Employees – Assuming you have an average organization, how many of your employees are “actively disengaged”? Following with our example of 25 employees, there would be 15% x 25 = 3.75 or 4 employees who work for you are “actively disengaged” “aren’t just unhappy at work; they’re busy acting out their unhappiness, undermining what their engaged coworkers accomplish.” 4 out of 25 average employees are “actively disengaged”? copyright (c) 2009 Lois Moncrief All Rights Reserved _______________________ Action Plan (if Needed) How Much Money Are Your "Actively Disengaged" Employees Costing Your Business? MOTIVATIONAL QUOTE “The signs of outstanding leadership appear primarily among the followers.” Max Dupree “If your employees perform well, it is a direct reflection of your ability to successfully manage employees.” Lois Moncrief MANAGEMENT SUCCESS TIP “Success in business as well as life, is directly dependent on the quality of people you surround yourself with.” Phil Hickey “Everyone on your team needs to do his best for you to win against your competitors.” Lois Moncrief Copyright ©2009 Globebic - Smart Management Now - Lois Moncrief All Rights Reserved 17 18 Special Report – How to Engage Your Employees to Greater Performance and Watch Your Profits Go Up! STOP YOUR EMPLOYEES FROM TAKING YOUR PROFITS - WHAT TO DO ABOUT YOUR “ACTIVELY DISENGAGED” EMPLOYEES by Lois Moncrief In the last section, I talked about the Gallup Management Journal Survey from October 12, 2006 http://gmj.gallup.com/content/24880/Gallup-Study-Engaged-Employees-Inspire-Company.aspx The survey mentions 3 types of employees: engaged, not-engaged, and actively disengaged. It further stated that 15% of U.S. Workers (20.6 million) are "actively disengaged" costing the U.S. Economy $328 billion. That is a cost of $15,922.00 for each "actively disengaged" employee. U.S. DEPT OF LABOR BUREAU OF LABOR STATISTICS PRESS RELEASE ON APRIL 16, 2009 (http://www.bls.gov/news.release/wkyeng.nr0.htm ). reports the median wage per worker is $738 per week or $38,376.00 per year. Therefore each median "actively disengaged" employee making $38, 376 per year is costing the U.S. Economy and his company $15,922.00 or 41% of his wages. Please note that the BLS URL listed has been updated to include the second quarter and is now dated July 16, 2009 and the numbers have changed slightly. THE GALLUP MANAGEMENT JOURNAL SURVEY GIVES THE FOLLOWING DEFINITION "Actively Disengaged” - employees aren't just unhappy at work; they're busy acting out their unhappiness. Every day, these workers undermine what their engaged coworkers accomplish." copyright (c) 2009 Lois Moncrief All Rights Reserved Stop Your Employees From Taking Your Profits - What to Do About Your “Actively Disengaged” Employees BASED ON THE ABOVE INFORMATION IT IS CLEAR THAT COMPANIES LIKE YOURS HAVE A PROBLEM THAT IS COSTING YOU A LOT OF PROFITS - THE PROBLEM IS YOUR "ACTIVELY DISENGAGED" EMPLOYEES. So now we know of a big problem - "actively disengaged" employees costing your company a lot of money but what is the solution? I have known managers who would say, “I am too busy - somehow this will take care of itself. I don't have time to deal with it." I have never seen problems like this go away or somehow disappear or resolve themselves without intervention. What is more likely are these types of problems get worse and spread. What once was a "mole hill" becomes a "mountain" sized problem with time. Generally speaking "actively disengaged" employees fall into one or both of two types or problems. The first is a "performance based problem" and the second is a "discipline" based problem. As I said there are some "actively disengaged" employees who are both. FIRE FAST? It is tempting to say just fire them as fast as possible. Maybe. I suggest you assess the situation first. (Depending upon what country you live in and what company you work for your employments laws and options may be different. I am giving you what has worked for me and my circumstances.) This is the time when managers are expected to be part psychologists and part human nature observer. To start you need to answer the following questions for yourself. Is this a new employee or an employee who has been with your company a long time? Is this a new problem or a problem that has existed that you have not dealt with? What is this person's history - have they been a good employee and this is a new problem? Is this a reoccurring problem? Have you documented what has been happening? Copyright ©2009 Globebic - Smart Management Now - Lois Moncrief All Rights Reserved 19 20 Special Report – How to Engage Your Employees to Greater Performance and Watch Your Profits Go Up! FIRST STEP A good first step is to have a one on one talk with the employee that centers on expected results in "performance" and/or "behavior" and how the employee is lacking. Can the employee give you explanations and/ or reason(s) for the problem and what he sees as resolution. This is giving them a chance to save face and deal with the problem before you have to. This conversation requires a lot of tact on your part as you do not want to be seen as advising your employee in areas you are not qualified to do (psychological) or forcing the employee to reveal private information that he does not have to tell you. The bottom line is you may or may not get any information that will help you understand what is going on. If you have a good relationship with the employee that is built on trust then you are more likely to get some answers that shed light on the problem. Remember, you want to focus on the expected results for performance and/or behavior not the person. Example for performance problem: maybe your performance standard requires your employees to make 100 widgets an hour and this "actively disengaged" employee is making only 75 widgets per hour. Making only 75 widgets per hour is what you focus on and not anything else about the employee. Example for discipline problem: Employees are expected to be to work at 8am each day and sign in immediately in a log book recording the time they arrived. Your "actively disengaged" employee does not sign in and you have noticed this person arriving at 8:15 - 8:30am each day. copyright (c) 2009 Lois Moncrief All Rights Reserved Stop Your Employees From Taking Your Profits - What to Do About Your “Actively Disengaged” Employees MOTIVATE "ACTIVELY DISENGAGED" EMPLOYEE? No. In some cases you can encourage the employee to do better and sometimes that will work for a while. Unfortunately, with these cases, more is usually required to get the desired response. DOCUMENT! By the way, if you haven't already done so - Document! Document! Document! Document the performance and/or discipline problems and any conversations you have with the employee relative to either of these problems. Make sure you date these and consider using email to send a copy to the employee of such conversations and what was agreed upon as a way of independently documenting time and what was said. You, as the manager, are going to have to decide are there circumstances surrounding this situation that tell you it may be a short issue and that you can work with the employee to resolve it? Example: The employee's car is in the shop and he does not have reliable transportation to get to work but should have his car back in a week or two. If he is a good employee normally then you probably want to give him some "slack" for a short time. If this is a longer problem and an employee who has been a problem for a while and is disruptive and clearly costing you money then you really do have an "actively disengaged" worker and must do something quickly to resolve it. STEP WISE PROCESS The U.S. government, in its wisdom, has a step wise process for dealing with both performance and disciplinary problems. These steps are of increasing consequences for failure to improve until finally the employee is removed from his position or brings his performance or disciplinary problems up to expected results. I personally agree wholeheartedly with the stepwise process giving the employee several opportunities for change and therefore the employee must own the responsibility for the outcome. Copyright ©2009 Globebic - Smart Management Now - Lois Moncrief All Rights Reserved 21 22 Special Report – How to Engage Your Employees to Greater Performance and Watch Your Profits Go Up! During this stepwise process, act in good faith to help the employee to bring his performance and/or discipline issues up to an acceptable level by giving him frequent feedback on his progress. BOTTOM LINE The bottom line for you as a manager is you can’t afford to ignore the problem. That sends a very bad message to all of your employees. They will lose respect for you and become resentful of you if you do not resolve the issue in a reasonable amount of time. You, as a manager, need to deal as quickly with the problem to resolve it as you can. This "actively disengaged" employee is costing you a lot of money and is probably interferring with your other employee's getting their jobs done because his performance and/or behavior are not acceptable. After you have worked with the employee in good faith to show him what needs to be changed and gone through a step wise process of increasing consequences for failure then the next step should be clear. Either the employee has corrected the situation and can remain in your employment or the employee has not corrected the situation and must be released from employment. STORY OF “ACTIVELY DISENGAGED” EMPLOYEE WHO BECAME AN “ENGAGED” EMPLOYEE In nearly 30 years of management, I have rarely seen this happened but it is possible. To the employee’s credit, he was working 3 jobs in order to support his family and he was frequently tired and physically sick just trying to do it all. He was a low graded government employee. I can’t reveal all of the details but just take my word that he was not a good performer. I encouraged him to find a way to take courses and work toward a degree part time. He did that. I allowed him to work a schedule so he could take the classes. He took enough science classes to qualify as a physical science technician and worked hard and very well once he saw the possibility of promotions and raises. He advanced several grades and became a very good employee. copyright (c) 2009 Lois Moncrief All Rights Reserved Stop Your Employees From Taking Your Profits - What to Do About Your “Actively Disengaged” Employees REALITY CHECK QUIZ # 2 Part I- Print page to fill in answers to quiz Question 1. How many “Actively Disengaged” employees do you have? (For an average, take the total number of employees you have and multiply by 0.15) or if you believe you are confident how many you have just write the number to the right. Your Answer Action Plan (if Needed) _________________ For our example of 25 employees, we had 0.15 x 25 or 4 employees who are “Actively Disengaged”. 2. What is your “actively disengaged” employees’ average salary? or if you are not sure (Assuming your company is average – what is your average employee’s salary?) For our example of 25 employees in our company, with 4 employees who are “Actively Disengaged” with a US average wage of $38,376 which we will call $40,000 per year. __________________ ____$40,000.00_____ 3. What is your sum of “Actively Disengaged” Employees’ salaries = # of “Actively Disengaged” Employees x their average salary. For our example of 4 actively disengaged employees x the average US wage = 4 x $40,000 = $160,000 __________________ ____$160,000.00____ 4. According to the data in the report, each “Actively Disengaged” employee is costing his company 41% of his wages. How much is your “Actively Disengaged” Employees Costing you in lost productivity? __________________ For our example of $160,000 total wages for all of our “Actively Disengaged” employees the Cost of Lost Productivity would be: ____$65,600.00_____ 0.41 x $160,000 = $65,600 Part II Below Print page to fill in answers to quiz Copyright ©2009 Globebic - Smart Management Now - Lois Moncrief All Rights Reserved 23 24 Special Report – How to Engage Your Employees to Greater Performance and Watch Your Profits Go Up! Question 5. What if you could eliminate that loss of 41% of your actively disengaged employees’ wages in lost productivity? Would it be worth it to you to not lose that money in lost productivity? 6. What are you doing to deal with your “actively disengaged” employees? 7. Identify who are your “actively disengaged employees 8. Which of your “actively disengaged” employees fall into the category of disciplinary problem? 10. What actions have you taken to deal with the problems? 11. Which of your “actively disengaged” employees fall into the category of “performance problem? 12. What have you done to resolve the problems? 13. Is it clear to your employees what is expected of them? Are the expectations reasonable? Do you really hold them “accountable”? copyright (c) 2009 Lois Moncrief All Rights Reserved Your Answer Action Plan (if Needed) Stop Your Employees From Taking Your Profits - What to Do About Your “Actively Disengaged” Employees MOTIVATIONAL QUOTE “Ducks Quack, Eagles Soar” Wayne Dyer “Don’t Send Your Ducks to Eagle School” John C. Maxwell Your “Actively Disengaged Employees will likely never be eagles (“engaged employees” – your “movers” and “shakers”). You may be able to get them to “acceptable” productivity so that they are still useful to you but don’t hope for miracles. If they can’t or will not change to acceptable performance and/or behavior, fire them. Cut your losses!” Lois Moncrief MANAGEMENT SUCCESS TIPS “Pull the Weeds Otherwise the Team Just like the Garden Cannot Grow.” John Murphy Copyright ©2009 Globebic - Smart Management Now - Lois Moncrief All Rights Reserved 25 26 Special Report – How to Engage Your Employees to Greater Performance and Watch Your Profits Go Up! HANG ON TO YOUR ROCK STARS, YOUR MOVERS, YOUR SHAKERS - YOUR ENGAGED EMPLOYEES by Lois Moncrief In the last two sections, I have talked about the Gallup Management Journal Survey from October 12, 2006 (http://gmj.gallup.com/content/24880/Gallup-Study-Engaged-EmployeesInspire-Company.aspx ). The survey mentions 3 types of employees: engaged, not-engaged, and actively disengaged. I said I would take the next few weeks to discuss how to deal with each type of employee. This week I want to talk about your engaged employees and how to retain them and seek more. The Gallup Management Journal Survey referenced above defines engaged employees as follows: “Engaged” Employees work with passion and feel a profound connection to their company. They drive innovation and move the organization. They comprise 29% of your workforce. Wow! Your engaged employees drive innovation and move your organization forward! All companies want engaged employees even your competition. SO HOW ARE YOU GOING TO KEEP YOUR ENGAGED EMPLOYEES AND HIRE MORE ENGAGED EMPLOYEES? I have talked about the need to keep your engaged employees as the economy recovers from this recession as these are the people who are going to help power your climb out of the recession hole. I suggested you to take action to make sure you did not lose your engaged employees as your competitors might be trying to hire them away from you. I urged you to sweeten the deal you have with your engaged employees to entice them to stay with you. copyright (c) 2009 Lois Moncrief All Rights Reserved Hang on to Your Rock Stars, Your Movers, Your Shakers - Your Engaged Employees I also suggested that you might be able to pick up some more engaged employees especially any who may be working for your competitors who have been weakened from the recession. Those employees of your competitors may be looking for a better and more stable situation for themselves and your company may be just the ticket. HOW TO KEEP YOUR ENGAGED EMPLOYEES W HO HELP KEEP YOUR BUSINESS GROWING The first place to start is to talk to each of them individually. Each of them has needs and wants that are important to them and may not be the same as what some of your other engaged employees. You want to give them what they want as much as you can. They have earned that. For example, consider the following list of motivators and perks you may be able to offer them: Motivators (some examples). Motivators can also sometimes serve as Recognitions and Rewards: Promotion Raise Attending a professional conference or seminar Perks (some examples): Work from Home Flexible Work Schedule and Work Hours Stock Options What Motivators and/or Perks on the above two lists would each of your engaged employees really like to have and can you give it to him or her? A Word of Caution: Make sure that you give these perks and motivators to the truly deserving. These should not be for "friends" but for your best performers. You are sending a message when you give perks and motivators for engaged employees. Copyright ©2009 Globebic - Smart Management Now - Lois Moncrief All Rights Reserved 27 28 Special Report – How to Engage Your Employees to Greater Performance and Watch Your Profits Go Up! You are recognizing and awarding your best employees and you are also sending a message to the rest of your employees about what it takes to be an engaged employee and what it takes to get these perks and motivators. If done fairly and correctly, you can motivate all your employees by recognizing your outstanding employees. If it appears that it is based on the good old boy or buddy system then you have found a way to demotivate a lot of your employees. Remember: Any investment you make in your "engaged" employees is likely to come back to you multiplied in how they help your company. It is a win-win for all! CONSIDER HIRING MORE ENGAGED EMPLOYEES This is the time as the economy starts to recover to look at opportunities to pick up engaged employees who may be working for your weakened competitor by offering those employees a better deal. copyright (c) 2009 Lois Moncrief All Rights Reserved Hang on to Your Rock Stars, Your Movers, Your Shakers - Your Engaged Employees REALITY CHECK QUIZ # 3 Print page to fill in answers to quiz Question 1. What are you doing to hold on to your “engaged” employees (your company’s future)? Your Answer Action Plan (if Needed) 2a. As you see opportunities to hire more “engaged employees” especially from weakened competitors, are you taking action? Why or why not? 2b. Can you identify some “engaged” employees (movers and shakers) that you would like to hire? 3. Who are your engaged employees you would like to recognize and reward? Name them. 4. What are some rewards and recognitions you could give these engaged employees? 5. What are some “perks” you could give your engaged employees? 6. Can you use your “engaged employees” as team leaders over groups so they can set the example and help motivate your “non-engaged” employees? Note: If you want more information and examples of rewards, recognitions, and perks see my E-book “60 Quick, Easy, Free (or Low Cost) Ways to Motivate Employees Now” at http://www.smartmanagementnow.com Copyright ©2009 Globebic - Smart Management Now - Lois Moncrief All Rights Reserved 29 30 Special Report – How to Engage Your Employees to Greater Performance and Watch Your Profits Go Up! MOTIVATIONAL QUOTE “Ability is what you’re capable of doing. Motivation determines what you do. Attitude determines how well you do it.” Lou Holtz MANAGEMENT SUCCESS TIP “Focus on the Critical Few Not the Insignificant Many” Mac Anderson “If you want to reach the “pinnacles of business success” you need the best people to help you get there.” Lois Moncrief copyright (c) 2009 Lois Moncrief All Rights Reserved Move Them on Up! – Getting the Most Out of Your “Non-Engaged” Employees MOVE THEM ON UP! – GETTING THE MOST OUT OF YOUR “NONENGAGED” EMPLOYEES by Lois Moncrief In the last three sections, I have talked about the Gallup Management Journal Survey from October 12, 2006 (http://gmj.gallup.com/content/24880/Gallup-Study-Engaged-EmployeesInspire-Company.aspx ). The survey mentions 3 types of employees: engaged, not-engaged, and actively disengaged. I said I would take the next few weeks to discuss how to deal with each type of employee. Now I want to talk about your non-engaged employees and how to motivate them to be more productive The Gallup Management Journal Survey referenced above defines non-engaged employees as follows: “Non-Engaged” Employees: employees are essentially "checked out". They're sleepwalking through their workday, putting time but not energy or passion - into their work. According to Gallup this is your "middle" group of employees comprising 56% of 3 types of employees of your workforce. They are between your bottom group of actively disengaged employees (15% of your workforce) and your top performers your engaged employees (29% of your workforce). Your top performers are already "self motivated" and already doing their best for you. Your bottom performers are very difficult to change. This middle group that comprises the majority of your employees has the most potential for change that will benefit your company. So you need to find a way to wake up your "sleepwalkers" and "check them in" so they are not just "putting in time" but become excited and engaged in their work. Copyright ©2009 Globebic - Smart Management Now - Lois Moncrief All Rights Reserved 31 32 Special Report – How to Engage Your Employees to Greater Performance and Watch Your Profits Go Up! CONCENTRATE YOUR MOTIVATIONAL EFFORTS ON YOUR NON-ENGAGED EMPLOYEES (YOUR "CHECKED OUT", "SLEEP WALKERS") In previous articles, I have talked about: empowering employees encouraging ownership and pride in their work educating them to see the big picture helping them to understand their part of the operations holding regular meetings to keep them informed understanding that they need to feel valued, important, appreciated, that you need to say, "Thank You" when they do a good job almost all of your employees are coming from the position of "what's in it for me?". Answer that in a win-win solution and you have them! All of those articles can help you understand some ways you can motivate your employees. I have also mentioned that you need to get to know and build a relationship with your employees and talk to them on a regular basis - individually. During these talks you may discover factors external to work or at the worksite that may be a distraction from their work. This information will help you understand how to approach individual employees to get them more motivated. There is an old saying that "People don't care until they know how much you care." In other words, listening to individual employee problems and showing compassion in dealing with them will usually result in the employee appreciating your support and reciprocating by doing a better job for you. In addition, there are awards, small gifts, recognition, incentives that can be used to motivate your employees. You can have contests, competitions, parties, etc. Think of the impact you could have on your company by getting 56% of your employees (the non-engaged) to work just 10% harder during the day - that would be approximately 5% more effort overall - 5% more product or services that your company is selling and probably 5% more on your bottom line. See also my ebook “60 Quick, Easy, Free (or Low Cost) Ways to Motivate Employees Now” More information at end of this Special Report copyright (c) 2009 Lois Moncrief All Rights Reserved Move Them on Up! – Getting the Most Out of Your “Non-Engaged” Employees REALITY CHECK QUIZ # 4 Print page to fill in answers to quiz Question 1. As an average, 56% of your workforce is “non-engaged” employees. If you could get this group to work just 10% more each day, what would the approximately 5% more profit mean to your bottom line? Your Answer Action Plan (if Needed) 2. How do you answer the question, “What’s in it for them?” for your employees to be willing to put forth more effort? 3. Have you spent time showing them the “big picture” so they understand their part of making the company work and the importance of their job? 4. Have you given your employees “pride and ownership” over their part of the company? 5. Have you “empowered” your employees? 6. Do you keep them informed about the company and its actions so they can see where the company is going? 7. Do you thank them and let them know that they are valued and appreciated? 8. Do you use your “engaged” employees as team leaders, trainers, mentors, & examples for your non-engaged employees? Copyright ©2009 Globebic - Smart Management Now - Lois Moncrief All Rights Reserved 33 34 Special Report – How to Engage Your Employees to Greater Performance and Watch Your Profits Go Up! MOTIVATIONAL QUOTE “The only thing even in this world are the number of hours in a day. The difference in winning or losing is what you do with those hours.” Woody Hayes MANAGEMENT SUCCESS TIP “The bad news is time flies.” “The good news is you’re the pilot.” Michael Altshuler copyright (c) 2009 Lois Moncrief All Rights Reserved Move Them on Up! – Getting the Most Out of Your “Non-Engaged” Employees E-Book 60 Plus Ways to Motivate Your Employees. Includes: 24 Free and Low Cost Ways –to engage and motivate all your employees 8 Rewards and Recognitions – I have not seen these listed elsewhere 8 Perks – so good they won’t want to leave 8 Ways to Create a Sense of Family – when you’re family you work together and help each other. 11 Educational Incentives –increase your employees’ skills and knowledge – a great win-win for your employee, you, and your company. 3 Motivators - Reserved Just for Your Top Performers! You Also Get: The Basics of Motivating Employees How to Implement the 60 Ways to Create the Greatest Success Key Techniques to Make Motivation Last Longer How to Best Motivate Different Types of Employees Visit How to Have Employees Motivating Each Other – and free up your time! Create “Buy In” to Company Goals That Get Your Employees Working Even Harder http://www.smartmanagementnow.com/book to download your copy. Copyright ©2009 Globebic - Smart Management Now - Lois Moncrief All Rights Reserved 35
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