Why Worker Engagement is Integral to Corporate Governance

Supported workforces often lead to happy, productive, and successful employees. It is also one of the fundamental contributors to a robust corporate governance strategy. One of the key ways to gain insights into the corporate culture of a company and the problems/issues that affect it is by engaging directly with employees.

This may seem very obvious but so many companies do not do it. A report, called, “Workforce Engagement and the UK Corporate Governance Code: A Review of Company Reporting and Practice” by the Royal Holloway, University of London, found that in many cases, the boards of companies made decisions on workforce engagement without consulting the actual workforce on the right processes.

 Firstly, let us discuss good corporate governance 

This definition can vary from industry and company, but generally, it refers to the framework of oversight and support to facilitate the critical thinking of the Executives and Management, who were responsible for driving the success of the company. 

What are the benefits of Worker Engagement to Corporate Governance?

Often, businesses, both locally and internationally, do not align or even communicate their company goals and strategies with their employees. In order for employees to contribute to achieving organizational goals, it is imperative that they understand what is expected of them, that a culture of “speak out” is encouraged and buy-in facilitated.

Discussions with employees during the decision-making process ensure that the goals for the company and the strategy to achieve them are clear and understandable to everyone within the organization. This leads to enormous benefits such as higher productivity, increased profit, job growth, employee retention and so much more. For reference, Smarp reported that in 2021, 71% of executives said that employee engagement was critical to their company’s overall success.  

How Can it be Implemented within an Organization? 

Implementing an effective employee engagement process within a company’s corporate governance framework is a complex venture. Each business and its employees will have different needs. Therefore it is important for companies to have a well-thought-out and thorough employee engagement strategy. Some factors to consider:

-       Have an engagement survey that does not only have generic questions but one that also includes questions that pertain to issues that are specific to the organization, its culture and its processes;

-       Create an environment that is open to continuous listening. Truly succeeding at employee engagement is consistently listening to employees and their input;

-       Have qualified managers and continue to invest in their training and development to aid in the overall improvement of employee development; and

-       Define and specify employee engagement goals for operational, tactical and strategic goals. The more specific the better and equally important is including a time period and a way to measure the success of these goals.

These are just some benefits and ideas to consider. I am interested to know what other factors you think should be considered for an employee engagement strategy and how this can benefit the role of Corporate Governance in your organization. I would love to hear your suggestions.