If the saying, a team is only as good as its weakest link holds true, the club industry, and the U.S. economy as a whole, may be in danger. This is because currently, 70 percent of American employees are not working to their fullest potential.
Picture your pro shop or club grill, where you’re likely to have at least 10 employees. Seven of these 10 employees you’ve entrusted to serve members are showing up to work without the commitment to perform to the best of their ability.
A two-year study by Gallup, the “State of the American Workplace: 2010-2012 Report,” divides today’s workforce into three categories of employees: engaged, not engaged and actively disengaged. Only 30 percent of U.S. employees fit into the engaged employee category, while 52 percent are not engaged and another 18 percent are in the danger zone of actively disengaged.
Engaged employees are passionate about their work and actively contribute to their employer’s progress and success, while non-engaged employees aren’t invested in their work and simply slog through the workday putting in time, but not effort. Worse yet are actively disengaged employees. These “weak links” reach beyond being unhappy at work, to actually harming or undermining the mission of their company or organization. They are less productive than their colleagues, negatively influence their coworkers, miss workdays, actively drive customers away, and possibly even steal from their employer.
The club industry consistently faces uncertain times. Clubs have no room for losses in productivity that, in actuality, translate to lost dollars. Gallup estimates that actively disengaged employees cost the U.S. $450-550 billion each year.
On the other hand, recruiting, maintaining and stimulating engaged employees can translate to big bucks for a company (or club). Companies with nine engaged employees for every actively disengaged employee (in 2010-2011) experienced 147 percent higher earnings per share on average, according to the study. Companies with an average of 2.6 engaged employees for every actively disengaged employee experienced 2 percent lower earnings per share rates. These numbers can’t be ignored.
Unfortunately, this workplace conundrum is not unique to today. The engaged employee figure of 30 percent actually ties the all-time high since Gallup began tracking employee engagement in 2000. This is not a new issue, but perhaps one that could be remedied by inspired, new solutions.
What then, are some of the steps clubs can take to get employees, and thus the member experience and bottom line, back on track?
The Gallup Business Journal offers several suggestions that management can, and should, incorporate into every day employee-employer relations.
Use an Employment Engagement Survey to its Fullest Potential, and Follow Up! – Employees expect their survey answers to lead to action. If asked irrelevant questions that have little chance at enacting a solution, it will only discourage employees further. Ask specific, relevant and actionable questions.
Address Engagement from the Top and the Bottom – Change occurs most often at the smaller, work-group level. However, this is only possible when top leaders make engagement initiatives a priority. Managers and employees must feel empowered to make a difference in their immediate environment.
Select the Right Managers, Coach Them and Hold them Accountable for Their Employee’s Engagement – Clubs, whether hiring from the outside or hiring from within, should give a little more attention to selecting its managers. Management should not just be about the next step in the line of promotion. They should have the talent to support, empower and engage their team. Be sure to coach managers, but also hold them accountable if engagement is slipping.
Define Realistic, Measurable Engagement Goals – Leaders at the top may set broad-reaching engagement aspirations, but what will be most meaningful are manageable every-day goals.
Make Personal Connections – Leaders and managers should find ways to connect with employees on an individual level. These interactions are likely to influence engagement and even drive an employee to go above and beyond because they feel recognized for individual talents.
NCA’s comprehensive publication HR Management: Best Practices for Private Clubs includes even more pointers for upping engagement, specifically through strategic performance management. Top tips include:
- Linking employee work efforts with the club’s mission
- Setting performance expectations
- Establishing objectives, standards and performance metrics that help streamline the work process
- Incorporating career development and job-mastery goals into performance objectives
- Conducting regular, informal meetings with employees to discuss performance and engagement
Managing performance and engagement is an important slice of the pie when it comes to creating a workforce that puts the club’s best face forward. And, looking at the grim statistics put forth by Gallup, there is clearly room for improvement. NCA’s HR Management: Best Practices for Private Clubs can serve as a roadmap for charting the challenging course ahead.
To learn more about employee engagement programs and other aspects of human resource planning, see NCA’s newest publication, HR Management: Best Practices for Private Clubs, available at the NCA online store.
Laura Hayes is NCA’s communications manager.