The answer is: winning (or, to describe it in a business context, “better business outcomes”).

Research has shown that  better business outcomes produce a higher level of employee engagement.*  That makes sense.  When a group is winning, it boosts the status of its members.  They feel better about themselves because they’re winners.   They are more cooperative with one another, feel more connected to the organization and their fellow members and this further enhances performance.  It creates a spiral up in performance.  In contrast, poor business outcomes bring about stress and, in many individuals, feelings of inferiority.  Mood and cooperation decline, incivility increases, all of which have a negative effect on performance.

We all know that winning is not always lasting.  This year’s Super Bowl champion may or may not make the play-offs next year.  And we also recognize that winning in business is even harder to do in a tough economy.

It is in times like these that boosting employee engagement is even more critical.   In fact, it is essential to counter this downward spiral. With recent research from the Corporate Executive Board showing that 90 percent of employees are not engaged in their jobs or not aligned with strategy, employee engagement should be at the top of every leader’s list of priorities.  Research has shown that employee engagement is positively correlated with business outcomes.   Engaged people persevere through the challenging times and oftentimes the level of employee motivation determines whether an organization lives or dies.

Today, organizations are keeping a close eye on the bottom line and many are not investing in employee engagement at a time when they most need it.  This is unfortunate.  Putting employee engagement and alignment processes in place is a best practice and inexpensive.  Don’t be penny wise and pound foolish.   Every organization should train managers so they know how to engage employees, implement an employee engagement survey, and hold managers accountable for results.  Failing to do so will ensure organizations will not play at the top of their game during good times and will contribute to their underperformance in difficult times like today.

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Michael Lee Stallard speaks, teaches and writes about leadership, employee engagement, productivity and innovation at leading organizations including Google, GE, NASA, Lockheed Martin, General Dynamics and the Darden Graduate School of Business at the University of Virginia. Michael wrote the guest editorial for Talent Management magazine’s February 2010 edition and recently his article on how the force of connection boosts productivity and innovation was featured as the lead article in the UK’s Developing HR Strategy Journal. Click on these links to learn more about Michael and Jason in the media and their speaking engagements.

*Benjamin Schneider, Paul J. Hanges, D. Brent Smith, and Amy Nichole Salvaggio, “Which Comes First: Employee Attitudes or Organizational Financial and Market Performance?” Journal of Applied Psychology 88, No. 5 (2003): 836-51.

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