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Engaging for success: Enhancing performance through employee engagement Case Study Google Google has grown from an idea generated by two students at Stanford University in 1998 to one of the world’s most well known and successful companies. Liane Hornsey, Director of People Operations for Europe, the Middle East and Africa says that the company “would not have been able to innovate as quickly as it has, nor create the products it has in such a short space of time without highly valuing employee engagement.” As Google has grown rapidly over the last decade, one of its main challenges has been to retain the ‘small-company feel’. In order to do this, Google firstly takes recruiting very seriously. Well-being of employees is also high on the agenda, and a large amount of money and effort is invested in social activities intended to foster a sense of belonging, a team culture and a sense that there is a psychological contract between employer and employee, not just a transactional one. For example, in the London office, the canteen is free to employees, and tables are designed so that people have to sit together and communicate. Google believe that creating the right culture will mean that employees get a buzz from working there, will want to help Google stay a market leader, and will always strive to deliver for the company as well as they possibly can. Just as Google has focused on providing the best user experience possible online, so it also puts its employees first when it comes to daily life. There is an emphasis on team achievements and pride in individual accomplishments that contribute to the company’s overall success. Ideas are traded, tested and put into practice with an enthusiasm that can make you dizzy. Meetings that would take hours elsewhere are frequently little more than a conversation in the lunch queue and not many walls separate those who write the code from those who write the cheques. This highly communicative environment fosters productivity and camaraderie fuelled by the realisation that millions of people rely on Google results. The ethos at Google is, give the proper tools to a group of people who like to make a difference, and they will. 48
Chapter 2: The Case for Employee Engagement – The Evidence Case Study Malmaison MWB, the owner of Malmaison, acquired Hotel du Vin in 2004, bringing together the two hotel chains under the same ownership. Although the brands remain separate, the company was keen to initiate greater integration of the workforce and support services. The two hotel chains had very different cultures which had to be brought together, while maintaining the engagement of staff during a period of expansion. Good people management and practices were seen as key to maintaining good service standards. The hospitality sector has traditionally suffered from a long hours culture and a high turnover of staff, which can be barriers to engagement. As part of the acquisition and expansion plans, the company put in place new performance management systems, greater learning and development opportunities, new management development programmes, employee recognition schemes, and new rotas and flexible working practices. The result has been increased retention and more senior positions being filled from within, which has also reduced costs for recruitment; 70 per cent of general managers have made their way through the company’s ranks, as have 90 per cent of head chefs and deputies. The average working week has been reduced and staff turnover has reduced significantly. These changes have led to steadily improving scores in the employee survey, and sales and profit targets at each chain have been achieved for the last two years. 49
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