Employee engagement means organizational success. The mostrecent Gallup poll, which studied about 196,000 American workers,described how companies with the most engaged employees had thebest outcomes. In fact, the companies in the top quartile forengagement reported that on average, 70% of their employees feltengaged. Yet the average for U.S. companies is only 33%. Those inthe top quartile of engagement, when compared to the bottomquartile, had 20% higher comparative sales, 17% higher productivityand 21% higher profitability. They also had 42% lower absenteeismand turnover (59% lower for low-turnover organizations like creditunions).

Looking beyond the 33% group of engaged employees, we findanother 51% who reported that they were not engaged, just“present.” Exceptionally concerning is that 16% are activelydisengaged. This unhappy group diminishes productivity and is adrag on those who are engaged. Imagine how well organizations wouldfunction if the vast majority of employees appreciated their workand wanted to contribute. What if the numbers of “just present” anddisengaged employees were converted to engaged? If yourorganization is not in the top quartile of engagement, it is timeto take action.

A culture of engagement starts at the top. One of the mosteffective methods to increase engagement is a tool that seniorexecutives themselves use: Coaching for enhanced performance. AStanford Business School survey of CEOs, directors and seniorexecutives found that nearly all the CEOs thought that beingcoached would be valuable for themselves. About one-third of theCEOs and half of the senior executives were already receivingcoaching from outside consultants. They felt that coaching couldimprove their skills for team building, leadership, delegation,conflict management, talent development and mentoring.

Forward-looking organizations are applying this C-Suite thinkingto their organizations as a whole to increase engagement and, inturn, reap the productivity and profitability rewards that follow.Following from this model, managers become the internal coaches,and outside experts are often deployed to make them proficient.This investment in time and training gives managers skills theyneed to be effective coaches. Few managers already have effectivecoaching skills. Moreover, employees are generally not experiencedin receiving feedback and are not prepared for interactive coachingconversations. All too often, employees are passive recipients offeedback that is not actionable, usually as part of an annualreview. What's worse, if it's not done well, a superior's feedbackcan contribute to disengagement.

Training your managers to coach and your employees to be activeparticipants in their own development can be among the mostimportant investments you make. Your people can learn theseskills. Tools, templates and processes provided in the trainingwill give managers what they need to do it well. High qualityinstruction allows managers and employees alike to practicecoaching conversations and to receive feedback, thereby honing thisskill.

This approach shifts mentalities to forward-looking performancedevelopment and away from the backward-looking performanceevaluation, which managers too often do as an annual “check thebox” exercise. Coaching conversations replace the annualperformance review with frequent, regular, real-time interactionsthat take place throughout the year, not just at year-end.

These conversations require planning, but they are worth thetime and effort. The manager prepares and uses simple, direct,candid and actionable dialogue aimed at developing employees anddriving performance. They describe to the employee behaviors thatshould be reinforced and built upon, and behaviors that shouldchange. These conversations are characterized by specificity anddetail. Managers identify two or three things the employee doeswell and should keep on doing. Additionally, things that theemployee should do differently or not at all are addressed. Themanager gives plain examples for each of the behaviors, both thestrengths and the weaknesses. People should see themselves in thesehonest descriptions. The manager and employee discuss and identifythe elements that the employee can impact moving forward. Theyjointly check in on a consistent basis, reconfirming and clarifyingpriorities and expectations. When obstacles exist, they identifysolutions.

The end result is that managers ensure employees have the skillsand support they need for effective job performance. Employeeslearn how to make the most of the coaching relationship. Employeesbuild upon their strengths and work to strengthen the areas in needof improvement. They take responsibility for and commit to theirdevelopment.

These ongoing, encouraging, purposeful and rewardingconversations generally mean no surprises. Feedback is immediate,achievements are celebrated, defensiveness is reduced and trust isbuilt. This collaborative approach increases engagement, gives aboost to your employees and provides your organization withresults.

Stuart R. Levine is Chairman and CEO for StuartLevine & Associates and EduLeader LLC. He can be reachedat 516-465-0800 or [email protected].