According to new research by Gallup, a lack of engagement during a downturn not only puts business performance on the line but could mean the difference between survival and failure.

In the good times, lapses in productivity caused by disengagement slip under the radar, but come the bad times there’s really no place to hide.

The Gallup results show that business units in the top quartile of employee engagement have 18 per cent higher productivity, and a 12 per cent hike in profitability.

On the other hand, business units in the bottom quartile have 51 per cent more inventory shrinkage and 31 to 51 per cent more turnover compared to those in the top quartile (The Economic Crisis: A Leadership Challenge).

What’s more, organisations that choose not to recognise what drives their people during times of slowdown risk losing them when economic conditions stabilise and employees review their options.

In fact, the Gallup research indicates the more leaders or managers know about their individual employees, the higher the level of performance. When leaders distance themselves from people, employees are inclined to become detached rather than feel involved and valued in their workplace.

In the 1990s, Gallup identified the 12 elements of great managing and during difficult times, managers must stay focused on employees’ needs.

Specifically, employees must feel that:

• They know what is expected of them at work;
• They have the materials and equipment they need to do their work right;
• They have the opportunity at work to do what they do best every day;
• In the previous seven days, they have received recognition or praise for doing good work;
• Their supervisor, or someone at work, seems to care about them as a person; and
• There is someone at work who encourages their development.