For over a decade now there has been research that has indicated that the average organization is doing an abysmal job at engaging their workforce, while the highest performing organizations are performing at those levels precisely because they are engaging a higher number of their employees. According to a recently released whitepaper by Resource Development Systems, an organizational performance research and consulting firm, their research reveals that the average organization has only one out of every four of their employees who are engaged and highly committed to achieving the goals of the organization. The rest are doing just what they have to do to get by and not get in trouble, or worse.
“In some organizations as many as one out of every 5 employees are upset with the organization, and could be out to hurt it,” says Gary Lear, President and CEO of Resource Development Systems. “It doesn’t have to be overt. It can be something as simple as not taking good care of your customers in just enough of a way as to insure that the customer probably won’t come back.”
Many researchers of employee engagement, including Resource Development Systems, Gallup, Towers Watson, and others, indicate that as much as one-third of an organization’s payroll can be wasted due to the lack of employee engagement levels. The problem is that for most business owners, executives and managers, this concept is a bit hard to grasp.
“When you are managing an average organization and that’s the only kind of organization you have experience with, then those levels of performance seem normal to most managers, but they aren’t,” says Lear. “Clearly, employees can perform at higher levels, as exemplified by your best employees. If they can perform at higher levels, then why can’t others in the organization?”
In their recently released whitepaper The Cost of Being “Good Enough,” Resource Development Systems shares a new concept, the Payroll Efficiency Factor™, which allows an organization to calculate how much work it is getting out of its payroll based on the employee engagement levels in the organization. While the Payroll Efficiency Factor™ isn’t the entire impact that employee engagement has on organizational performance, it is a start at quantifying some of the financial impact that mediocre employee engagement levels have.
“Yes, the Payroll Efficiency Factor™ does demonstrate that the average organization indeed does waste one-third of its payroll because of mediocre employee engagement levels. Just think what kind of impact it would have on the organization’s performance if the average organization could increase employee engagement, and as a result, increase the amount of work that it gets done by 7 to 10 percent, or even more. And the best thing is that it didn’t cost the organization any more to get that extra work than what it is already investing in the payroll,” Lear stated. “That kind of possibility is exciting, I think.” Most business owners and CEO’s would probably think so, as well.
The Cost of Being “Good Enough” whitepaper is available as a free download in the Resource Section of the Resource Development Systems website.
About Resource Development Systems, LLC
Founded in 1997, Resource Development Systems, LLC (ResourceDevelopmentSystems.com) is an organizational performance research and consulting firm dedicated to helping its clients increase performance by being more successful at Managing the Human Side of BusinessSM. RDS is a premiere provider of leadership development and executive teambuilding programs. RDS is the developer of the Seven Elements of High Performance™, a research-based model that describes what sets the best organizations apart from the rest. The Seven Elements of High Performance™ model has been adopted by the US Navy’s Center for Naval Leadership, and has been taught at many other organizations. RDS is also an Authorized Inscape Publishing Distributor, the publishers of the original DiSC® behavioral styles profile.