Global Firms in [Location]: Boosting Growth Through Employee Engagement
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In today’s fiercely competitive business landscape, the relentless pursuit of productivity dominates boardroom discussions. However, many organizations cling to an outdated definition, focusing solely on cost reduction through budget cuts and headcount reductions. While efficiency remains important, a new productivity paradigm is emerging, emphasizing capability expansion and value creation as the true drivers of success in the digital age. This shift necessitates a fundamental rethinking of how businesses approach productivity, moving beyond simply working harder or cutting deeper, and instead focusing on working smarter.
A recent article by Arinya Talerngsri, Senior Vice President and Managing Director at BTS Thailand (formerly SEAC), a global strategy implementation firm, highlights three crucial factors driving this new paradigm: people, technology, and organizational agility.
The Human Factor: Igniting Engagement
Talerngsri argues that disengaged employees, not inefficiency, represent the biggest productivity killer. A 2024 Gallup study revealed that companies with highly engaged workforces are 23% more profitable than their disengaged counterparts. Investing in employee well-being and fostering a positive work environment is paramount.
Talerngsri cites Microsoft’s transformation under Satya Nadella as a prime example. Assuming the CEO role in 2014, Nadella prioritized cultural change, shifting from a cutthroat environment to one that fostered collaboration and innovation. This strategic move propelled Microsoft’s resurgence, resulting in a remarkable 700% stock price increase over the following decade. Furthermore, Google’s Project Aristotle underscores the significance of psychological safety—where employees feel empowered to share ideas and take risks without fear of reprisal—as a key driver of team performance.
Technology: Amplifying Human Potential
While technology has traditionally been employed for cost reduction, leading companies are now leveraging its potential to enhance human capabilities. Unilever’s AI-driven talent management system exemplifies this approach. By using artificial intelligence to match employees with internal opportunities based on their skills, Unilever fosters internal mobility, reduces hiring costs, and maintains employee engagement. Similarly, JPMorgan Chase employs AI-powered fraud detection to process millions of financial transactions in seconds, freeing up employees to focus on higher-value tasks. The crucial lesson: technology should empower, not replace, human talent.
Organizational Agility: Removing Bottlenecks
Internal organizational issues—excessive meetings, cumbersome approval processes, and siloed teams—often masquerade as productivity problems. These inefficiencies hinder decision-making and stifle innovation. Spotify’s “Squad” model, comprised of small, autonomous teams empowered to make rapid decisions without bureaucratic hurdles, illustrates the power of organizational agility. Netflix, too, embraces this approach, granting employees significant autonomy and responsibility, enabling swift decision-making and rapid adaptation to market changes. A 2024 McKinsey Global Survey reinforces the importance of agility, demonstrating that companies with streamlined processes and faster decision-making achieve a 30–50% faster time-to-market for new products, translating into a significant competitive advantage.
The New Productivity Formula: A Holistic Approach
Talerngsri advocates for a shift from the traditional cost-cutting approach to a more holistic model focused on engaging employees, embracing smart technology, and eliminating internal bottlenecks. Future success hinges on building a culture of innovation, not merely striving for efficiency.
The challenge for today’s leaders lies in measuring the right metrics, moving beyond cost savings to assess employee engagement, the effective use of technology, and the organization’s overall agility. By embracing this new productivity paradigm, businesses can not only survive but thrive in the ever-evolving landscape of the future.
