Employee Engagement Does Not Equal Employee Effectiveness

We hear a lot today about employee engagement. But according to the Hay Group, “engagement alone does not drive employee effectiveness.” Employees also need to be enabled.

In other words, employees need to be in the right role and given a supportive environment with no significant barriers to performance.”1 To measure and manage employee effectiveness, organizations need:

  • Operational dashboards that aggregate performance data from across the organization for better decision making.
  • Individual and team scorecards that provide data-driven performance metrics to focus employees on the right behaviors and drive accountability.
  • Access to coaching and eLearning to identify and rectify knowledge and skill gaps that help ensure employees have what they need to perform their jobs.
  • An employee feedback program that gathers feedback from employees to increase employee engagement, effectiveness and retention.

Here are some steps you can take to improve employee effectiveness in your operations.

  1. Conduct an employee skills and proficiency inventory.
  2. For each role, identify the key performance metrics/indicators (KPIs) that tie to desired business outcomes and company priorities.
  3. Identify the data sources to feed the KPIs and gaps where no data source is available or accessible.
  4. Create a standardized performance management framework across all groups with multiple views that are role- and function-specific: individual scorecards, team, group/department and enterprise dashboards
  5. Establish new managerial processes that use performance data to identify opportunities sooner and increase the effectiveness of employee coaching.

Most operations managers lack visibility into what employees are doing—and when, and for how long. A modest first step would be to understand what percent of time employees are spending on production vs. non-production activities.

Many organizations have found a 10 percent increase in productivity just by capturing this metric. A leading online higher education provider increased productivity from 5 to 15 percent by giving frontline staff visibility into their performance scorecards that measure their actual performance against activity standards.

Employee effectiveness is one of the five key components of an optimized back-office management process. To learn how your organization ranks against our Back-Office Management Process Maturity model, take the self-assessment survey.


1 “Employee Effectiveness – employee engagement and enablement survey,” The Hay Group website.


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