{"id":904684,"date":"2018-07-10T13:01:12","date_gmt":"2018-07-10T20:01:12","guid":{"rendered":"http:\/\/customerthink.com\/?p=904684"},"modified":"2018-07-11T20:38:27","modified_gmt":"2018-07-12T03:38:27","slug":"employee-engagement-requires-an-authentic-contract-with-leadership-two-standout-cases-in-energy-and-insurance","status":"publish","type":"post","link":"https:\/\/customerthink.com\/employee-engagement-requires-an-authentic-contract-with-leadership-two-standout-cases-in-energy-and-insurance\/","title":{"rendered":"Employee Engagement Requires an Authentic Contract with Leadership: Two standout cases in Energy and Insurance"},"content":{"rendered":"

\"Employee
Photo courtesy of Freepix<\/figcaption><\/figure>
\nEmployees want to feel a sense of commitment to their work. And in return for that sense of real, authentic meaning, they will be willing to give more of themselves, aspire to higher productivity, spiraling innovation, and off-the-charts customer satisfaction. <\/p>\n

Of these three rewards, the highest correlation exists between employee engagement and customer satisfaction. These two are more closely linked than sleeping pills with sleep, or ibuprofen with pain reduction (Moore and Humphrey, \u201cThe link between customer engagement and employee engagement\u201d). What is more, sustainably high customer satisfaction rates are highly correlated with revenue growth, as I have pointed out elsewhere. This chain reaction, from employee to revenue growth, leaves little doubt that engagement is highly desirable.<\/p>\n

So how do the best companies develop employee engagement? What sets the best, most inspiring engagement programs apart from lacklustre lip service? I have compiled and analyzed a short list of case studies, taken from six Fortune 500 companies, so that we can answer these questions. The results are inspiring.<\/p>\n

My office has identified 5 best practices; this article will deal with just two things leadership must do in order to create an environment where engagement is possible. Leadership needs to: 1) Make a commitment to employees; and 2) Let go of real responsibility, acknowledging that employees are responsible for fulfilling an important role in the company.<\/p>\n

Employees and Leaders Commit to Each Other \u2014 DTE Energy<\/h2>\n

Engaging leaders do not expect commitment without making a commitment themselves. Some leaders have so much energy around them that their commitment might not need to be expressed in words (I am thinking about Steve Jobs), but many leaders need to search for an authentic connecting point between themselves and employees. <\/p>\n

In 2008, Detroit, DTE Energy CEO Gerard M. Anderson made an important announcement to employees, which forged that connective tissue. In the middle of the economic crisis, he and employees were fearful of the stability of the business \u2014 from two different perspectives. Employees feared they would be laid off; Anderson and the C-suite feared that profitability and revenues would drop. <\/p>\n

His answer was to make a commitment. He pledged to keep employment secure through the economic crisis; he also asked employees to help keep the company stable and profitable. <\/p>\n

This simple statement signified the beginning of an authentic relationship between DTE workers and leadership, which continues to generate value for the company today. DTE reported continuous profits through the crisis, despite watching neighboring companies shut their doors. Success was attributed to the commitment and determination of the workers who helped keep the company afloat with nothing but good, hard work. No one was laid off, and DTE is still in the top 29% of its industry as of 2018 (DNA of Engagement, 2018). <\/p>\n

Assuredly, the CEO\u2019s commitment was meaningful because the terms of the deal increased job security at the very moment when job security was questioned. But at the same time, Anderson delivered responsibility back to employees, acknowledging them as the primary value drivers. He empowered them with a direct stake in their own financial security. Suddenly, there was something to lose, and something to gain. <\/p>\n

Customer Experience consultants have seen the same pattern elsewhere. Some of the world\u2019s most profitable, fastest growing companies are experimenting with holacracy and other self-organizing modes of governance, which decentralize authority and deliver real responsibility to middle managers and customer-facing workers. I suspect these models work not only in terms of organizational agility, but also on a psychological level to create that sense of commitment, having a stake in the business. <\/p>\n

Our next case study will refine this idea even further by showing a multifaceted approach to commitment. <\/p>\n

Driving Employee Retention at the Point of Influence – USAA<\/h2>\n

\u201cOur member experience can\u2019t be any greater than our employee experience because our employees serve our members.\u201d Cecilia Pardo AVP, Employee Experience, USAA<\/p><\/blockquote>\n