According to a recent Gallup poll over $300 billion is lost annually due to low productivity; and, over 70% of employees are disengaged or “actively disengaged” (deliberate intent to sabotage the company’s efforts) as a result of corporate catabolism.
A relatively new term that describes the negative environment, decline in employee engagement and morale, and the underlying reason so many organizations are losing productivity and employees is corporate catabolism.
Corporate Catabolism is seen in the culture of an organization in the form of recurring stress or being in a constant reactive mode. Meaning, the needs of the organization rely on its strongest resources (its employees) on a regular basis to counteract the negative stress. Prolonged corporate catabolism results in significant drops in leader and employee engagement, drains the organization of creativity, halts innovation, and leaves little to no reserve energy for the workforce to counteract unexpected challenges. All of this results in a significant reduction in performance and profits.
Often times people can find themselves stuck or trapped by the identity they have assumed in their role and simply go through the motions in order to make it through the day; they just “play the game”. Some are much better at this than others, although the long-term effects (stress, poor health, strained relationships etc.) often outweigh the short-term gains.
How does this show up in business? A quote in a recent Financial Post article states that being able to identify “the gaps between how leaders see themselves and how others see them” can be the key to re-engaging the company’s employees.
It’s no secret in business that maintaining a positive culture is critical to retaining the number one asset- employees. With declining employee engagement combined with the uncertainties of the economy, job security, the housing market and so many other external factors, more business owners and senior leadership teams are looking to new resources to give their company an edge.
Executive coaching is one of the solutions companies are implementing to encourage employee re-engagement. But what is an executive coach? When referring to a coach in the world of sports, the role is clear. But when there is a mention of executive coaching, business coaching and life coaching, there is need for more clarity. The purpose of a professional coach is to assist the individual in identifying — and then removing — the barriers that are holding them back. A professional coach is not there to tell the client what to do, solve business problems or give worldly advice. In fact, the coach is there to empower the employees to find the answers and offer ways to think differently, feel differently and therefore behave differently. All of this results in increased productivity and a boost in personal and professional morale.
What businesses are finding is that by developing their staff at the core, they are achieving higher levels of performance and success as an organization. Eric Schmidt, chairman and chief executive of Google, said his best advice to new CEOs is to have a coach. Which is why so many are turning to this resource as a potential solution for employee dis-engagement and corporate catabolism.
One essential way executive coaching is working so well for businesses is that each coach tailors the program according the employee’s needs. It is important for those in a leadership role specifically, to take advantage of coaching so their learnings can trickle down to the rest of the staff. Once an intital assessment is made a plan is crafted to help individuals, and the business, learn to think differently, apply new strategies, and pull from the latent potential that has been repressed.
Over the last five years executive coaching has begun to play a larger role in business life as fortune 50 and small business owners struggle to retain employees and keep them engaged. It is predicted that this type of leadership improvement strategy will continue to grow as more business owners observe the benefits. Though it may seem like executive coaching is a fix-it solution to current problems, this service can benefit companies in all phases, as the program teaches individuals to grow, reach the goals they’ve set for themselves, and become more productive. The service is not strictly a solution to gain employee rentention and boost morale, but can, and should be, utilized as a pre-emptive strike and a tool to help employee growth.