
That statement is from the young man in the embedded video
from a U.K. based movement Engaged for Growth, a national employee engagement
initiative.
http://www.youtube.com/watch?v=xqO3sfRZDAE
I was intrigued by the elegant simplicity of the message; I
was also impressed that the U.K. has recognized the importance of this
phenomenon and strategy in making a difference. The young man quotes the
statistic that only one in three employees in the U.K. are fully engaged, in the U.S. our performance is lower yet, we are
slightly better than one in four.
So what you might say.
My reaction as I have
stated before is that each year the Department of Labor estimates that we lose
$5 trillion dollars to employee turnover. We lose another $200 billion to presenteeism, where as this young man
describes people show up, but contribute less than they are capable of for a
myriad of reasons, mostly dealing with work related stresses or dissatisfaction
with management or other elements of their job.
We spend another $100 billion on training annually, but
studies estimate that the retention of
that training is less than ten percent after 18 months.
So you ask yourself why. The answer is how we view and work
with people. How many times do you hear employees referred to as human resources or human capital? As this young
man clearly states they are neither of those things, they are people.
Some of it goes back to an interesting differentiation that
Seth Godin made recently between industrialists
and capitalists. Industrialists use
systematic solutions. The utilize benchmarks and standards, and best practices
to seek efficiencies- to squeeze more dollars out of the systems.
Capitalists on the other hand seek to expand market
opportunities. They want to grow markets and create new ones. The
characteristic they both share in the American economic model is that the focus
is on the benefit to what they see as the primary stakeholder- the shareholder
or owner.
This isn’t new. I just finished reading the second book in
Ken Follett’s three part trilogy about several families from different economic
classes and countries, following them from pre- World War 1 through at this
stage post World War 2. The upper classes
simply don’t understand how there is anything about the model that is
broken. They have grown up with a sense of entitlement and sense of how things
should be.
I think there is a large dimension of our society that still
embraces this paradigm. If the wealthy and large corporations get the flexibility to do what they need to
maximize shareholder return then everyone will benefit, right? History says not
necessarily. I think there were many who were stunned when the electorate rejected
a return to this paradigm.
Although he would likely disagree I would categorize
Governor Romney as an industrialist. He was and remains and astute businessman,
but his model was building wealth, not capacity. He ran an investment firm
where success was measured strictly in financial terms. Decisions were made on
the basis of optimized financial returns, not social entrepreneurism. People or human capital was an item on the balance sheet. This isn’t a
criticism, merely an observation.
People aren’t embracing that paradigm as readily anymore.
They want to be respected as individuals.
Before anyone sees this as a socialist rant I would tell you
another event that occurred this week that I am supportive of is Michigan’s
conversion to a right to work state.
Again I want to be clear that I am not anti- union or anti
collective bargaining. I think an effort to prevent anyone including public
employee’s from participating in the collective bargaining process is
inherently flawed. I think on the other hand that individual employee’s should
have the opportunity to choose whether or not to participate in that process. I
think that requiring an individual to join a union or a particular union in
order to work for an organization or in an industry is fundamentally flawed.
The union or bargaining agent no matter what they call
themselves; should be required to provide a meaningful value proposition to each prospective member, just as an employer
does in their competition for talent. There shouldn’t be a mandate.
The history of the relationship between labor and
management, especially in the United States, has not been an attractive one.
Employers saw labor as a resource to be utilized and discarded as they saw fit.
In some way collective bargaining in my mind contributed to
the concept of human resources or human capital. Under U.S law employers
with union contracts in place are required to negotiate over wages, hours, and
working conditions. They are not required to negotiate over the means of
production or involve “labor” in those discussions. It is a transactionally
based rather than relationship based model.
We remain unique in that aspect among industrialized
countries. In other countries management is required to negotiate the
introduction of new methods and technologies, not just the effects of those
technologies.
I remember discussing with a Fortune 500 employer their
efforts to fully implement total quality in their organization in the mid
1980’s and their inclusion of their various collective bargaining agencies in
that discussion. They were incredulous that I even asked the question. They
simply saw the unions as an impediment rather than as a stakeholder.
Unions rightfully have taken much criticism for their
insistence on inclusion of guarantees around economic security, pensions, and
health plans that exclude personal responsibility for managing your own health
and levels of benefits that fiscally impossible.
Societally we have treated employees more as kind of
slightly slow grown up children when it comes to things like retirement and the
management of health.
I have expressed my concern that much of the Affordable Care
Act, also known as Obamacare focuses on the delivery of health care and the
provider community rather than a more comprehensive viewpoint including a new
role for employer and employee/consumer.
We spend more on health care than any other industrialized
society for results that are pretty tepid on average. Like the earlier examples
I provided on turnover and presenteeism these provide significant opportunities
for collaboration and improvement.
I guess what I am advocating is a new model where we
understand that collaboration among all the stakeholders can allow us to find
solutions that benefit everybody. The studies already demonstrate that organizations
that have embraced and implemented true engagement strategies enjoy superior
performance as measured by every key performance indicator.
The systematic
models like lean, black belt, etc. have merit as tools and there is certainly
room for improvement in every industry around efficiency and best practices,
but the foundational issues such as congruency
and trust are going to have to be
addressed before we see those tools implemented in a sustainable fashion.
A few years back I posed the question on Linked In as to
whether or not we should have a national engagement
initiative led by a coalition of government,
industry leadership and others. It didn’t get much interest. That was in 2008.
By my calculations if we give some validity to the numbers asserted regarding
the opportunity costs represented by employee turnover and presenteeism we
“gave up” $20.8 trillion in that four year period. I won’t even add in the lost
opportunity in managing health care delivery rather than health. It would seem
to me like those dollars might have had an impact on the fiscal cliff we are facing…
As the young man stated, “I am not a human resource, I am a
person”. Perhaps I overestimate the
significance of exploring a new paradigm where we take him at his word and
begin exploring a new model, but then again maybe I am not overestimating…..