Good governance will improve employee engagement
It’s no secret that corporate governance significantly impacts a company’s bottom line. But what is often overlooked is good governance’s role in employee engagement. Open communication, transparent decision-making, and accountability can all lead to increased employee engagement and productivity.
Defining corporate governance
Corporate governance is the process of setting and achieving organisational objectives while simultaneously maintaining an organisation’s accountability, integrity, and transparency. It’s based on a set of rules and procedures designed to promote performance, stability, fair dealing, and internal controls in an organisation by ensuring all significant stakeholders have a voice in strategic decision-making and oversight.
Corporate governance activities include strategy formation, risk management, monitoring financial and business performance, compliance with industry regulations, auditing financial statements, appointing board directors and senior executives, and enhancing employee satisfaction.
The main objectives of corporate governance are to:
• Protect investor rights to information so they can make informed decisions about their investments
• Assure that companies comply with relevant laws
• Create an equitable marketplace for the exchange of goods and services
• Build trust between investors, management, and the organisation’s governing bodies
Read more: Become the expert in governance with a professional Diploma in Corporate Governance. Download the course brochure today.
The benefits of good governance for employees
Good governance can have a significant impact on businesses and their employees. It involves a set of principles, systems, and processes that ensure that decisions are made effectively and ethically. This could include establishing company policies, setting goals for the business, developing ethical codes of conduct, and creating a positive work environment.
All of these actions help to build trust between employers and employees and improve satisfaction at work.
Moreover, when managed effectively, good governance helps to ensure financial stability, which benefits the company and its staff as it mitigates job losses due to deteriorating business performance. As such, companies should be aware of the benefits of good governance.
How to create a Corporate Governance Framework that promotes employee engagement
A corporate governance framework that promotes employee engagement should emphasise transparency and communication. Companies should prioritise employee satisfaction to create a positive working environment where employees feel valued and motivated to contribute to the company’s success.
Leaders and managers should actively seek employee input on job satisfaction, salary and benefits, career development, integrity, and fairness of decision-making processes. They can also use regular surveys to get specific employee feedback on how they deem the workplace culture and their overall experience.
Leaders can better understand each team member’s unique contributions and concerns by consistently engaging with them.
Case studies of firms with successful employee engagement initiatives
These companies have successfully implemented employee engagement initiatives.
1. LEGO is a Danish toy company with a solid employee engagement commitment. The company has many initiatives to support its employees, including flexible work arrangements, opportunities for professional development, and a strong focus on work-life balance.
2. John Lewis is a British department store chain with a strong emphasis on employee engagement. The company has many initiatives to support its employees, including flexible work arrangements, opportunities for professional development, and a strong focus on work-life balance. John Lewis also has a “Partnership Council” that gives employees a voice in decision-making processes and allows them to shape the company’s direction.
3. Audi is a German automaker that is committed to employee engagement. The company has flexible work arrangements, opportunities for professional development, and a strong focus on work-life balance. Audi also has a “diversity and inclusion” program that promotes a culture of inclusivity and respect among its employees.
Technology can enhance employee engagement
In today’s world, technology is a significant player in corporations’ ability to boost employee engagement with their corporate governance policies. By utilising advanced tools like Artificial Intelligence (AI) and Machine Learning (ML), businesses can quickly access critical data about employees and analyse it to gauge potential responses to different initiatives. For example, organisations can use AI-based tools to measure employee engagement levels and identify areas where they could improve.
Additionally, companies can use cloud computing networks to streamline administration processes, allowing more time for direct communication with teams and further building morale.
With the vast array of digital tools actively driving employee engagement at every level, it’s no wonder that tech has become integral to successful corporate governance practices.
In summary
- Corporate governance is the system by which businesses are directed and controlled.
- The main objectives of corporate governance are to protect and enhance shareholder value and promote organisational efficiency, accountability, and fairness.
- Good governance practices can benefit businesses by improving employee engagement and increasing transparency and accountability.
- To create a corporate governance framework that promotes employee engagement, companies should consider implementing technology solutions that increase communication and collaboration between employees and management.
Read more: Become the expert in governance with a professional Diploma in Corporate Governance. Download the course brochure today.
