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The Super Secret Weapon of High-Growth Companies

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2 The Super Secret Weapon of High-Growth Companies | Gallup's 2012 Q12 engagement survey also found that companies that enjoyed 90 percent employee engagement delivered 147 percent higher earnings per share than their competition. When organizations fail to adequately invest in engagement, they are missing out on a huge opportunity to impact returns. It turns out that employee engagement is not just a nice to have, or a talent development initiative, but a key component of a company's financial success. Leader-Led Coaching: The Heart of Employee Engagement The good news is companies are beginning to see the important connection between employee engagement and financial impact. Where they struggle, is not in identifying how to improve the employee work experience, but rather acting on the tactics they've identified. When they invest in engagement, it tends to be in HR-driven "silver bullets"—often related to benefits and compensation—that give lip service to engagement while leaving employees disenchanted, disconnected, and ultimately dissatisfied. The answer to what kind of investment will improve engagement seems to lie in hands-on performance management. The Aon Hewitt study identified career opportunity as the top engagement driver, with performance management a close second. In fact, in study after study, performance issues such as hands- on performance management and growth opportunity have been identified as key differentiators that drive engagement. Those companies in which leaders and managers are personally engaged and directly involved in development of a culture of engagement have "significantly higher operating incomes" than the other organizations in the study. What does it look like when leaders are directly involved in ongoing performance management? Frequent conversations where feedback is the norm and problem solving is expected. In other words, leader-led coaching. It's a myth that coaching is formal or complicated. Simply stated, it is the framework for the mindset and tools leaders use to impact the decisions and actions of others. When a leader takes the time to provide feedback and coaching, he or she is participating in the one activity that is proven to have the most significant impact on engagement. With engagement being one of the primary drivers of financial health, it stands to reason that coaching should be the #1 priority for every manager. When a leader takes the time to provide feedback and coaching, he or she is participating in the one activity that is proven to have the most significant impact on engagement.

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