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Losing Interest

More than half of top executives feel a "less than ideal emotional connection and alignment" to their organizations, according to a recent survey. With a clear link between executive engagement and organization success, HR needs to take an active role to reverse that situation.

By Mark McGraw

If the results of a recent survey are any indication, HR professionals are among the most engaged employees in North America.

According to a survey of 7,508 respondents from a cross-section of job titles, functions and industries in North America, the HR and sales departments have the most engaged employees, at 36 percent each.

Additionally, HR consulting and training was the industry with the largest proportion of engaged workers, at 46 percent, according to the study, conducted by Skillman, N.J.-based consulting firm Blessing White.

The report, the State of Employee Engagement 2008, also found that North American employees were among the most engaged globally, just behind India.

The engagement level of senior executives, however, may be another matter.

More than 50 percent of senior executives polled said they have a "less than ideal emotion connection and alignment" to their organization, according to the survey.

So why are more than half of senior executives feeling disengaged? What does a lack of senior-level engagement mean to a company's success, and what can HR do to foster engagement among upper management?

As with employees at other levels, key drivers of engagement for executives are opportunities within the organization, the work they do, quality of life, total rewards and the people they work with, says Ray Baumruk, a principal in the communication practice of Lincolnshire, Ill.-based Hewitt Associates.

For upper-level employees however, factors such as status, the ability to influence decisions and outcomes, alignment of personal and company values, and staff support are additional drivers of engagement, he says.

The unique challenges facing executives in the current corporate environment may contribute to an overall feeling of disengagement, Baumruk says.

"Executive engagement has been under pressure from an ever-increasing demand and activism from shareholders ... negative attention on executive pay and pay differentiation, and the pace of change both within companies as well as the industries and geographies in which they operate," he says.

"We have also seen the time span of executives remaining in their roles declining, especially with CEOs," Baumruk says, "which increases the uncertainty of their futures and jobs, and therefore has a negative impact on engagement. Executives are human and not immune to the stress of the growing pace of change and job security concerns."

It stands to reason that disengaged leaders can have a potentially negative impact on the company as a whole, says Stephen Parker, vice president of consulting at Blessing White.

"Their attitude and behavior can be contagious, and can bring down the morale, initiative and productivity of the employees around them," he says.

There is indeed a clear link between the level of executive engagement and organizational success, and low levels of executive engagement can be damaging to a company's performance in two primary ways, says Baumruk.

"First, it creates uncertainty and turnover," he says, "Second, lower executive engagement often drives lower engagement in the general employee population, which we have shown can negatively impact key value drivers; measures such as productivity, customer service, quality and innovation."

The HR department must keep a close eye on the engagement level of senior executives within the organization, and help prevent senior management from becoming disconnected, says Parker.

"HR professionals need to first pay attention to the engagement levels of senior executives," he says. "Too often, leaders at the top are bypassed as HR focuses on engaging the workforce at large."

HR should be advocates for leadership development, Parker says. "Executives get so wrapped up in day-to-day business that they don't make the time to reflect on what's important to them personally, or remember what is inspiring about their role or their organizations.

"HR professionals can provide that reminder," he says, but must also ensure that senior leaders are accountable for the engagement levels of the people around them and the workforce at large, for the benefit of all concerned, Parker says.

"Too often, engagement is delegated to HR," he says. "When executives feel personal accountability for engagement, they will naturally start to assess and actively manage their relationship with work."


May 1, 2008

Copyright 2008© LRP Publications