Item 5.2 in the Baldrige Criteria asks key questions about how you engage, compensate, and reward employees to achieve high performance. The following processes, best practices, and problem areas look at critical issues in this part of the Baldrige model.

Your organization needs processes for:

• Determining the key factors that affect employee engagement
• Creating a culture and a performance management system that promotes open communication, high-performance work, and an engaged workforce
• Assessing employee engagement and correlating the findings of these assessments with business results to identify opportunities for improvement
• Developing a learning and development system that serves the needs of the organization and the development needs of all employees
• Managing effective career progression and succession planning

Best practices to consider:

• The organization uses employee data from a number of sources including employee surveys, turnover rates, and exit interviews to determine and prioritize employee requirements and then validates those requirements with employees.
• An effective performance management system supports both individual and organizational performance, aligns individual goals/objectives with the organization’s mission and vision, and addresses individual development.
• Employee satisfaction/engagement surveys are done more frequently than the typical annual survey, often with a statistically-valid sample of employees.
• Every employee has a development plan that supports both personal and organizational improvement.

Common problems areas:

• Organizations tend to assume they know what employees require or they rely on generic employee satisfaction surveys to provide a list, but they fail to validate their assumptions.
• No performance management system has been developed.
• Employee surveys are conducted annually and do not address the key factors that affect employee satisfaction and engagement.
• Annual performance reviews do not include planning or encourage employee development.

To read more about employee engagement, click on these articles:

• The 3 Factors That Motivate Employees
• Employee Engagement Boosts Organizational Performance
• Employee Engagement and Innovation
• Evaluating Training Effectiveness
• Succession Planning at P&G
• Why HR Needs Baldrige

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