July, 2005 - Workforce Performance Management

It's not surprising that organizations with effective employees see higher productivity and customer satisfaction and have greater financial returns. It's an end result that makes sense. But to get there, organizations must ensure that their employees are motivated and engaged to reach that end goal, according to the panelists of Workforce Performance Management: The Employee Perspective , a recent Webinar sponsored by Chief Learning Officer magazine.

"The bottom line is employee attitudes matter to a company's bottom line," said Watson Wyatt consultant for organizational effectiveness, James Cortez, Ph.D. According to the Watson Wyatt study, WorkUSA 2004/2005: Effective Employees Drive Financial Results , the financial performance of companies with positive employee attitudes is four times better than organizations with more negative attitudes. In addition, companies with more positive employee attitudes are also better enabled to survive economic challenges as well as other obstacles.

Cortez outlined four factors of employee effectiveness that all impact an organization's financial performance: commitment (employees are motivated to help organizations succeed), line of sight (they know what to do to make organizations successful), integrity (they understand and live up to their organization's values and expect others to do the same) and enablement (they have the resources, training, tools and equipment to do their jobs). Organizations must ensure that all four exist.

To achieve that desired effectiveness, all employees must understand where their organization is headed and how their individual performances lead to the organization's success. Employees are engaged in the process when they trust their leaders, feel they can be successful, and value the rewards they will receive.