As the nation continues to struggle with a major economic downturn, we continue to look at its ever-growing impact on the workplace.  Because we believe honest communication is one of the hallmarks of great workplaces, we thought it might be a good time to revisit the results of a survey conducted by the Corporate Executive Board last year.  Michael Griffin, its author and Executive Director of the CEB, in his article entitled “Open-Door Policy, Closed-Lip Reality” reveals two disheartening survey conclusions:

1. Nearly half of executive teams fail to receive negative news that is material to firm performance in a timely manner because employees are afraid of being tainted by the bad news.
2. Only 19% of executive teams are always promptly informed of bad news that is material to firm performance.

“Unfiltered, honest feedback becomes increasingly scarce as it moves from the bottom to the top of the organization”, concludes Griffin.  The CEB survey of more than 300,000 employees reveals that “companies that break down two key barriers to honest feedback can deliver peer-beating shareholder returns by a substantial margin.”  They identified two factors which stood out when it came to increasing 10-year TSR (long-term total shareholder return) from 1998-2008:

1. Openness of Communication—Employee perceptions of the extent to which managers encourage two-way dialogue matters.  The CEB found that “…companies rated by their employees in the top quartile in terms of openness of communication have delivered TSR (10-year TSR 1998–2008) of 7.9% compared with 2.1% at other companies.  They also had materially lower levels of observed fraud and misconduct.”
2. Fear of Retaliation (and Willingness to Speak Up)—The CEB tracks 12 key indicators in their cultural diagnostic.  The one that is most strongly correlated with 10-year TSR is employee comfort in speaking up.  “The most important driver of this comfort is a lack of fear of retaliation.  As with openness of communication, we found that companies that excel on this dimension also had materially lower levels of observed fraud and misconduct.”

The CEB has also found that fear is a particularly powerful inhibitor.  In another recent survey of 100 clients, the CEB asked them to ‘estimate the amount of harm that would have to be present to share honest (negative) feedback at risk to their careers’.  Their conclusions?

• Fifty-nine percent estimated that more than $1 million worth of harm to the company would have to be at stake for employees to share honest (negative) feedback.

• Twenty-nine percent estimated that more than $10 million would have to be at stake.

Our conclusion is that there is a lot of room in these numbers for employees to think it might just be better to ‘keep some thoughts to themselves’.  When corporate performance may be negatively impacted (or could be seriously improved), both management and contributors ‘lose’…

We believe a free-flow of communication is now important more than ever to achieve corporate goals, encourage innovation, maintain team engagement and retain great employees.  When was the last time you reviewed your own ‘open-door policy’?  How well is it working?  How do you plan to find out?

If you’ve been focusing on getting more work done with fewer employees over the past few months, you may only now find yourself thinking about the impact our economic recession may be having on those employees who have been shouldering the load.  You’re not alone.

In his recent ‘Losing Lifeblood’ article in Workforce Management[1], Garry Kranz outlines several recent surveys with engagement results we found troubling.  Note that survey results indicate that middle managers and executives are also feeling less and less engaged:

BlessingWhite, Inc., NJ – January, 2011

• In North America, only 33% of employees identified themselves as engaged.

• 1% of engaged employees say there is ‘no way’ they will stay with their organizations during the next 12 months.

• 18%  say they ‘probably’ will stay.

LeadershipIQ, Washington DC – June, 2011 (Results based on 102,311 responses from employees and managers in 130 organizations, primarily in the U.S.)

• 69% of North American workers said they are either disengaged or ‘underengaged’

• More than half of frontline supervisors report being either disengaged (8%) or ‘underengaged’ (44%)

• Fully one-third of middle managers and 30% of executives voiced similar sentiments

Kenexa Research Institute, Minn – Preliminary 2011 Report (Global Survey of nearly 30,000 employees)

• Employee engagement index score for U.S. workers – 58%

• Employee engagement index score for global workers – 53%

(See “The Last Word Cultural Awareness.”)

Jack Wiley, the Institute’s executive director, says that employees began to despair as a worsening economy triggered more and more layoffs.  However, he also says there may be light at the end of this tunnel—at least for some organizations.

According to Wiley, some employers say they have managed to sustain engagement levels during the prolonged recession.  How?  They made it a priority to systematically gather feedback from employees, analyze responses and implement changes as needed—“They measure engagement with the same rigor they apply to customer service or financial data.”

We think that’s the appropriate start.  Ultimately, we also know that employee engagement also involves career advancement and compensation—not necessarily in that order.  However, if you’ve asked your employees about their aspirations and priorities in the past—and followed through on some of their suggestions, all you need to do is make it a priority to ask again.  They will let you know what’s really on their minds.

On the other hand, if this will be your first employee engagement survey, welcome!  You’re embarking on an interesting and, what could possibly be, a very productive time…

Now, there’s a thought…  In a survey of 468 job-seekers conducted by Monster.com and employee benefits provider Unum, the top-rated item on would-be employees’ wish lists was a company ‘that truly cares about the well-being of its employees’.  Eight-seven percent of those surveyed rated that quality ‘very important’ in their job hunt—and the result was nearly identical for both the employed and unemployed respondents.

Other ‘very important’ priorities for people seeking employment were:

• A challenging and fulfilling position –  84%

• Job security – 82%

• Benefits package – 74%

Coming in lower in the rankings were questions of dollars and cents:  A high base salary was very important to 66 percent, and bonuses were very important to a little more than half of those surveyed.

The survey, which also polled human resources leaders, showed a strong connection between caring for the well-being of employees and financial protection beyond the paycheck:

• 86 percent of HR leaders indicated that making sure employees and their families are taken care of should something happen to them is an important reason for providing financial protection benefits.

• 82 percent of workers agreed that being offered financial protection benefits shows that a company cares about the well-being of its employees.

“Employees, job-seekers and human resources leaders understand the importance of a caring corporate culture in recruiting and keeping a talented workforce,” said Mike Simonds, senior vice president for Unum.  “Benefits play an important role in supporting that culture.”

The research is consistent with findings of a recent survey of nearly 400 human resources decision-makers commissioned by Unum in partnership with Harvard Business Review Analytic Services.

That study found that the role of corporate culture is perceived as critical to driving engagement, recruitment and retention of a quality workforce:

An attractive benefits package and an ethical, transparent culture were more likely to be viewed as very important in attracting and retaining staff than were a high starting salary and job security.

Being a company that cares about the well-being of its staff was twice as likely to be viewed as very important in attracting and retaining staff as providing a high base salary.

“An engaged workforce is crucial to any company’s success, especially at a time when businesses are striving to recover from the economic crisis,” Simonds said.  “A supportive corporate culture and benefits that help protect the financial stability of employees help build that engagement.”

How do you think your employees would respond?  When was the last time you asked them?

About the survey

Monster.com completed research with 196 employed workers and 272 unemployed workers, all of whom were seeking new employment opportunities through its online employment services.  In addition, Monster.com interviewed 190 HR decision makers from a diverse set of industries and company sizes again drawn from among customers of its website services.

Surveys were fielded and completed in October 2010.  Nineteen percent of jobseekers were under the age of 35, while 52% were between 35 and 54, and another 29% were age 55 or older.  Almost half of fulltime workers (45%) and unemployed workers (44%) reported their current or most recent annual job income as being greater than $50,000.  Among HR executives included in the research, 21% represented large companies with 2,000 or more employees, while 39% worked for small businesses with fewer than 100 employees.  Another 40% were at medium?size companies with between 100 and 1,999 employees.

In the recent issue of Workforce Management, the authors presented 200 questions which may be asked by today’s job seekers.  When you can find a moment, we think they’re worth some time.

We particularly liked the questions which may be posed by some of today’s top candidates.  We grouped them into a few broad categories.  Note how many of these questions pertain to their work group, your culture and how you think they will ‘fit’…

Questions Stars May Ask

About your company…

Lots of your competitors have great products and people programs. What is the deciding factor that makes this opportunity superior? Are you able to say any things that you will do to make this a great experience for me if I accept the position?

When top performers leave the company, why do they leave and where do they usually go?

When was the last significant layoff? What criteria were used to select those to stay?

How many days will it take for you (and the company) to make a hiring decision for this position?

About your product and services…

What’s your company’s “killer application”? What percentage of the market share does it have? Will I be working on it?

Does the company have a program to significantly reward individuals who develop patents/great products? Is there a program to help individuals “start” their own firms or subsidiary? Will I be required to fill out noncompete agreements?

How many approvals would it take (and how long) to get a new $110,000 project idea of mine approved? What percentage of employee-initiated projects in this job were approved last year?

About their work group…

What’s the gross profit margin of the division I will be working in? What percentage of the total profit from the company does it generate? Is it increasing or decreasing?

Who are the “coolest” people on my team? What makes them cool? Can I meet them? Who is the best and worst performer on the team, and what was the difference in their total compensation last year? Sell me on this team and the individuals on it that I get to work with. What makes my closest coworkers fun great people to work with?

Which individual in the department can I learn the most from? What can he or she teach me? Can I meet that person? Does the company have a specific program to advance my career?

How many hours a week do you expect the average person on your team to work? How many hours does the average person in fact work? Are there work-life programs in place to promote a healthy work-life balance?

Give me some examples of the decisions I could make in this job without any approvals. Can you show me the degree of autonomy and control I have in this position?

What is the first assignment you intend to give me? Where does that assignment rank on the departmental priorities? What makes this assignment a great opportunity?

If I were frustrated about my job, what specific steps would you take to help me overcome that frustration? How about if you were frustrated with me? Can you show me examples of what you have done for others in your group in the past year to overcome any frustration?

What are the “wows!” of this job? What are the worst parts? And what will you do to maximize the former and minimize the latter? If I asked the incumbent what stinks about the job, what would he or she say? Can I talk to him or her?

Could I get a chance to see the team in action? Can I sit in on a team meeting? Shadow someone for a day?

What are the biggest problems facing this department in the next six months and in one year? What key competencies have you identified that I will need to develop in the next six months to be successful?

About your company culture…

Can you give me some examples of the best and worst aspects of the company’s culture?

What makes this company a great place to work? What outside evidence (rankings or awards) do you have to prove this is a great place to work? What is the company going to do in the next year to make it better?

What would I see if I stood outside the front door at five o’clock? Would people be smiling? Staying late or leaving early? Would everyone be taking work home?

Can you show me that the company has a diverse workforce and that it is tolerant of individual differences? Does it have affinity groups or similar programs that I might find beneficial? Is there a dress code? Can you give me an example of any “outrageous conduct” this firm tolerates the competitors would not?

Does your company offer any “wow!” benefits? Does it pay for advanced degrees? Does it offer paid sabbaticals? On-site child care?  Relocation packages?  Mentor programs? How are these superior to those of your competitors? What about job sharing? Flex-time arrangements?  Telecommuting?  Workout facilities?

What is your “learning plan” for me for my first six months? What competencies do you propose I will develop that I don’t currently have?

Could I miss a day without your advance permission? What percentage of the people in this position telecommute?  Has anyone in the group been allowed to take a month off (unpaid) to fulfill a personal interest?

How will my performance be evaluated? What are the top criteria you use? What percentage of my compensation is based on my performance? Is there a process where the employees get to assess their supervisor?  If I do a great/bad job in the first 90 days, how, specifically, will you let me know? What are the steps you would take to help me improve? How do you discipline team members?

How many hours of your time can I expect to get each week for the first six months on the job? How often will we have scheduled meetings?

What will make my physical work environment a fun and stimulating place to spend time?

What inputs do employees get in departmental decisions? In hiring and assessing coworkers?

About job fit…

What do you see in me? What are my strongest assets and possible weaknesses? Do you have any concerns that I need to clear up in order to be the top candidate? What is the likelihood — maybe in percentage terms — that I’ll get an offer?

You can see the entire list of 200 questions your company may be asked here—in case you’d like to brush up on a few more answers…