In South Africa, this trend has also been evident in the past few months despite market optimism that the country is past the worse of the recession - the latest figures from Stats SA, for example, show job losses are continuing as the unemployment rate for the first quarter of 2010 increased to 25.2%.
Samantha Crous, GM of the CRF Institute, the employer brand research and marketing organisation that conducts the annual SA's Leading Managers Campaign, says that in the context of anxiety, managers are required to step up to improve employee engagement as one of the key drivers to help organisations turn the corner.
The report revealed that high levels of employee engagement are linked to business leaders who inspire confidence in the future; exciting work and the opportunity to develop; and organisations that demonstrate a genuine responsibility to their employees and communities.
"These are all critical factors for South African organisations as they endeavour to get back to stability and pursue growth," says Crous. She adds that managers who participate in the campaign are those committed to employee engagement and that this is evident in their strong employer brands. The overarching aim of the campaign is to increase the visibility and promote South African managers who demonstrate exceptional leadership qualities.
Crous is seeking more top leaders to step forward and share their leadership success stories in the 2010 campaign, which culminates in an annual multimedia marketing campaign that showcases high performing companies under sound, robust leadership - leadership that will take South African business into the future.
Sizwe Nxasana, CEO of FirstRand and one of the leaders featured in SA Leading Managers, agrees that in difficult times one has to increase staff engagement.
"These are times in which many companies are struck by a decrease in financial performance; they may have to restructure divisions and in some cases even have to retrench people. This clearly creates anxiety - in this context it is vital for leadership to communicate effectively. This needs leadership that has vision and can articulate that vision effectively and robustly - more so than in good times," he says.
With 44 000 employees in the group, Nxasana says that strong engagement is critical to the organisation's success. This is done through a number of strategic practices, including creating a culture of employee empowerment, regular two-way communication sessions both at management levels and with all staff, and ensuring that the overall FirstRand strategy and philosophy is continually and articulately communicated throughout all its divisions.
"Having more engaged employees we believe is a competitive edge relative to peers. We are able to attract and retain key people because they feel recognised and valued and we have the right career opportunities for them," he says.
Achieving high-levels of engagement, he adds, means leaders must have more than just technical skills. "At the level of senior leadership, technical skills are taken as a given, but what is critical is their character and their ability to lead. Leaders we seek are humble, honest and listen, and they understand how to give power away."
Bertina Engelbrecht, group HR director at Clicks Group, also featured in the campaign, agrees that tough times call for a different type of leadership which is much more inclusive and motivational.
"It is important during these times that leaders continue to invest in the development, reward and recognition of employees as a way of demonstrating they care. It calls for a leader who engages personally, paints a picture of a better tomorrow and continues to communicate with staff - even about the issues that might be considered 'troublesome'. In this way, the leader minimises uncertainty, keeps people focused on the delivery of the vision and inspires them to their own personal best. This gives people hope for the future - and a sense that despite bleak times, the sun will shine again," she says.
Engelbrecht agrees that there is a strong correlation between engagement, performance and retention. "This is because engaged employees bring their heads (intellectual capability), hands (physical capability) and hearts (emotional capability) to work."
She highlights that the group has achieved employee engagement through a number of practices.
"We have consistently communicated the company vision and our short and medium-term strategic objectives throughout the organisation. Moreover, we have focused on visible performance management, cascading the aligned delivery of these objectives to the lowest level of the organisation. Our remuneration - both our annual increases and incentive programmes - reward performance at the individual and team level. We also invested in what is now a double award winning Employee Wellness Programme that holistically supports employees and their families 24/7."
Organisations wishing to participate in the campaign can contact Billy Elliott on +27 (0) 21 425 0320.
