(a.k.a. Are You Helping to Improve Strategy Execution Where It’s Most Needed?)
For decades HR has been searching for the right ways to make strategic contributions to the business. I have my own opinions about how HR can do that, some of which are detailed below and in previous posts (for example, on HR scorecards and on measuring ROI). But even more important than what it should do is what it should not do. HR needs to stop obsessing over making HR processes world class.
We know from decades of research and practice that performance leads to job satisfaction. When people are productive, accomplish their objectives, get good feedback on their performance, and are rewarded for being productive, they usually are satisfied with their jobs.
The counter argument – employee engagement causes performance – makes intuitive sense yet does not necessarily hold empirically. The easiest way to make most employees happy is to keep their compensation the same and cut their responsibilities in half. However, doing so would completely destroy profits. Thus employee engagement does not always “cause” improved organizational performance.