Employees working for best employers are engaged only because the company is producing better business results. True or false? Hewitt has the answer.

Julia Smith, Hewitt’s Singapore country leader, says that’s one of the most common myths about “best employers”. Another myth is only hotels can be best employers as they are more people-oriented. In fact, the opposite is true. “Employee engagement is the lead factor. That is engaged employees produce better business results.”

How much better? Smith says, “Well during normal times, research shows engaged employees produced total shareholder return that on average is 40% higher than their competition.”

The results are even more “stunning” during difficult economic times, adds Smith. The stock prices of three Singapore-based companies on the Hewitt Best Employer in Asia 2009 list - Federal Express, McDonalds and Ritz Carlton - had outperformed their industry average by three to six times over the past 12 months.

And it seems most companies do have the potential and the right programmes in place to be a best employer even in the current economy. The differentiation between a best employer and a potential employer of choice is “commitment to execution that drives real competitive advantage”, explains Smith. “The key question is how to move beyond having the right words written on the board room walls to bringing the values to life for each and every employee.

Needless to say, being a best employer is hard work. Smith says it “takes huge commitment” to apply the values “on a daily basis”. To start, organisations need to “take an objective look and assess where they are today, identify priorities and clear action plans”. Getting the facts right is key to focusing limited resources on the most important activities, she adds.

All best employers also do well in creating both an emotional and intellectual connection with employees, says Smith. Here’s how.

1) Inspire employees with a higher order of purpose

2) Each and every employee knows their role in bringing the corporate strategy to life. “It’s about making it meaningful for everyone.”

3) Build a high performance culture where employees can win and create an environment where people can reconnect in a social setting.

“Release that passion. Involve everyone, not just high potentials to the corporate strategy,” Smith says. “Do this right and you will harness the true potential of your people and ensure your company emerges quick and strong in this new economy.”

Sources and references: Sandbox Advisors, Hewitt, HRM