LEAD MAGAZINE | 2019
is equal to the number of hours worked
in their organisation. Recent studies in
Norway and Sweden proof that average
productivity rates are around 45% per
hour and show that this can increase
by up to 20% when employees are fully
engaged. Engagement then appears to
be the key to both organisational growth
and employee happiness.
Profitability and employee
development
All of this suggests that work has to be
‘profitable’ in the widest possible context
and not just measured in terms of
‘money in the bank’. Employers should
take care of employees as rounded
human beings and not just human
resources. This means incorporating
social, environmental and ecological
factors (among others) into the overall
measure of profitability. It was Henry
Mintzberg who reminded us that:
“A robust enterprise is
a community of human
beings, not a collection
of human resources.”
The degree of linkage between the
unwritten ground rules and the
published mission and vision statements
give a good measure as to the degree
of employee engagement in an
organisation. Gallup’s recent Employee
Engagement report reveals the startling
conclusion that employee engagement is
a meagre 13%.
It’s all of the above that I drew together
into the Value-to-Profit model, so as
to produce one management model
that could link the value of investing
in employees directly to the profitability
of the organisation.
The Value-to-Profit Model
The value to profit model starts by
linking culture, behaviour and core
values at both an organisational and
personal level.
A clear understanding of personal
and organisational core values leads
to a better understanding of personal
motivation and corporate goals: a
better understanding of the degree
of alignment between an employee’s
personal motivation and the employer’s
corporate goals.
Personal motivation and corporate goals
have to be kept in balance (alignment)
for a mutually beneficial and productive
environment to flourish over the long-
term. Employees with clear personal
motivation can bring their own personal
resources to bear for the benefit of
the organisation, while their employer
contributes by providing the resources
needed to do the job itself. categories of job demands and job
resources identified by the JD-R model.
It’s my experience that these non-
negotiables of personal resources
is frequently overlooked, which is
a great shame as this oversight is
damaging organisational and personal
productivity.
Those things together
are connected as the
common: Purpose. The vital point to make is that this
truly can be a win-win situation.
Good alignment of personal and
corporate values (: Purpose), coupled
with the autonomy suggested by the
ABC of Engagement and appropriate
resources results in a happier and more
productive workplace as reported by
Gallup Consulting.
With the ABC of Engagement, the linkage
of autonomy, belonging and competence
connected to both engagement and
profit, employees can top their personal
resources ‘battery’.
If well matched with equivalent job
resources, then the job will be done
effectively and efficiently. If job demands
increase to an unacceptable level, or
without a matching increase in job
resources this leads to a draining of the
employee’s personal resources battery.
Continued over the long term, this can
result in burnout.
“Enthusiastic employees
excel in their work
because they maintain
the balance between the
energy they give and the
energy they receive.”
- Prof Arnold Bakker
This JD-R model identifies the two
categories of job demands and job
resources as having an overarching
impact on employee engagement and by
association, organisational performance.
Paul ter Wal, LMM CSP FPSA
November 2018
Paul ter Wal is an
International Human
Capital Consultant,
Professional Speaker (CSP),
and Author in the field of
employability, engagement
and accountability. He is
the owner of Team Andare
and founder of the Value-
To-Profit model, which
provides scientific workplace
architecture to CEO’s, CFO’s
and HR Directors. Paul is
qualified as a lawyer and the
upcoming President of the
Global Speakers Federation
(GSF)
www.paulterwal.com
The Value-to-Profit model adds personal
core values or better non-negotiables
to the personal resources to the two
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