What is Employee Empowerment?
Employee empowerment is a transformative management approach that grants employees the autonomy, authority, and resources necessary to take ownership of their work and make independent decisions. Unlike traditional hierarchical structures where decision-making power is concentrated at the top, empowerment distributes this power throughout the organization. This shift enables employees to think critically, innovate, and solve problems independently, leading to increased job satisfaction, productivity, and engagement. When employees feel empowered, they are more likely to be motivated and committed to their roles, driving the organization’s success.
How to Build Sustainable Workplace Change with Employee Empowerment?
The process of leading change is different to other supervisory functions which most managers have undertaken. Yet organizations often make the mistake of selecting an executive to lead change based upon his or her recognized management abilities. Such abilities are mostly disassociated from those required in change management.
Change is difficult for most people. They fear it. People who fear change become disengaged from it. When this happens, change fails.
Leading change requires a skillset which includes understanding how to empower employees in the workplace. By empowering people in the process of change, you accept that change is not simply a process. It requires a new way of thinking, a new way of acting, and a greater ambition to collaborate, engage, and innovate. When employees are empowered to change, the future vision is given new meaning. The vision becomes a shared goal, and empowerment enables the goal to become a sustainable reality. Employee engagement is crucial in this context, as it directly impacts the success of the change process.
To successfully lead change, it is essential to encourage employees to take ownership and initiative in their work. This fosters a culture where employees feel empowered to tackle tasks autonomously, communicate openly, and engage in problem-solving, thereby enhancing their productivity and creativity within the organization.
In this article, you’’ll learn to leverage empowerment in change management. As we compare the fortunes of two largescale organizational change projects, you’’ll discover how the chief executives of JC Penney and Telstra took very different approaches when their companies were suffering from declining revenues.
A Failure to Empower Employees Leads to a Failure to Change
In the mid-to-late 2000s, JC Penney was suffering. Its traditional base of customers was being targeted by increasingly competitive low-cost retailers. Its sales had slumped, and in 2011 it turned to Ron Johnson to lead a resurgence.
Johnson came with a formidable track record. He’d been the vice president of merchandising at Target, where he had been responsible for launching the successful Michael Graves product line. Taken on by Apple, it had been Johnson who had led the company’s charge into brick-and-mortar stores. He oversaw record growth in the now iconic Apple Stores.
Johnson seemed to be a perfect fit for the ailing JC Penney.
Johnson’s strategy was simple: move out of the low-cost space, and compete with high-end retailers. His approach to this massive change was to try to force it through. He commanded his troops, rather than inspired them. He created his strategy without regard for history, nor with the collaboration of JC Penney ‘lifers’. He failed to understand the culture of the firm, its employees, managers and customers.
Predictably, the results were disastrous and are still being felt today, four years after he was fired in 2013. Sales fell through the floor. Revenues collapsed, as did profits. Major shareholders deserted the company. So, too, did key workers and floor staff. The company has never recovered its poise with customers.
When Johnson was hired as CEO in 2011, the JC Penney stock price stood at around $35. By the time Johnson and JC Penney parted ways in April 2013, the stock price had more than halved. Today, many analysts believe JC Penney is on the brink of bankruptcy. The enormous failures of the Johnson era have not been shaken off. Customers lost during his tenure have not returned.
The benefits of employee empowerment are evident in many successful companies. Organizations that prioritize employee well-being and autonomy often see enhanced motivation, collaboration, and overall better business outcomes.
Benefits of Empowering Employees
Empowering employees offers a multitude of benefits for both individuals and organizations. Here are some key advantages:
- Increased job satisfaction and engagement:
- Empowered employees feel more invested in their work, leading to higher levels of motivation and commitment.
- Improved productivity
- When employees have the autonomy to make decisions and take ownership of their tasks, they tend to be more productive and efficient.
- Enhanced creativity and innovation
- Empowered employees are encouraged to think outside the box and develop innovative solutions to challenges.
- Better decision-making
- Employees who are empowered are more likely to make informed decisions that align with the organization’s goals and objectives.
- Increased employee retention
- Feeling valued and respected, empowered employees are more likely to stay with the organization, reducing turnover rates.
- Improved customer satisfaction
- Empowered employees are more likely to provide excellent customer service, leading to higher levels of customer satisfaction.
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Communicating change to empower employees at Telstra
While Johnson was attempting to force through change at JC Penney, David Thodey at Telstra was taking a wholly different approach. The Australian telecoms company was suffering from declining sales amid stiffening competition when Thodey was appointed CEO in 2009.
Immediately he recognized that the organization needed to change. But, instead of seeing himself as the sole commissioner of change, he recognized that all of Telstra’s executives, employees and customers were pivotal to change success. He set about empowering his 300 senior executives to work with Telstra’s employees, engaging all in the change project to promote employee empowerment.
Together, they developed training and one-on-one coaching courses, inviting feedback, managing expectations, and evolving people’s beliefs and values in line with those of the organization. He put in place new recognition programs, which rewarded individuals and teams. He encouraged people to participate in a shared future.
To support employee empowerment, Thodey emphasized setting clear expectations, providing training, encouraging autonomy, and fostering open communication.
By the time Thodey considered his job was complete when he retired from the CEO position at Telstra in 2015, the company’s stock market value had trebled.
What can we learn from David Thodey’s approach to change management?
David Thodey realized that it is imperative to support employee empowerment throughout the process of change. He ensured that he first empowered his senior managers, and then challenged them to empower their employees. He ensured that there was clarity in all communication about the transformational changes taking place. He created the environment where open communication was encouraged, and understood that people need to know that their fears and concerns are being listened to, understood, and dealt with.
Organizations that prioritize employee empowerment not only drive creativity and innovation but also improve talent retention, ultimately leading to greater business success.
Specifically, Thodey instigated change management in which:
- Stakeholders were treated responsibly, as part of the future of the business. They were given opportunities to discuss change and be part of it.
- Employees were provided the opportunities and tools to understand how the change would affect them. They, too, were given the opportunity to be part of the change, rather than a target of change.
- All stakeholders were encouraged to realize the benefits of change.
- Through his process, employees were fully empowered to become owners of the change, and did not see themselves as victims of change.
5 Strategies to Empower Employees
Providing training and development programs
Investing in employees’ skills and knowledge is crucial for empowerment. Offering regular training, mentorship, and development opportunities not only enhances their competence but also boosts their confidence in their roles. Employees who feel equipped with the necessary tools and knowledge are more likely to take initiative, contribute innovative ideas, and stay engaged. By focusing on continuous learning, organizations signal that they value growth and are committed to helping their people succeed.
Encouraging autonomy and decision-making
Empowerment flourishes when employees are given the freedom to make decisions and take ownership of their work. Encouraging autonomy helps build trust and shows employees that their input and judgment are respected. This can be achieved by involving them in decision-making processes, allowing them to solve problems creatively, and trusting them to manage their tasks independently. When employees feel they have control over their work, it not only increases job satisfaction but also drives higher performance.
Fostering a positive company culture
A company culture that values, respects, and supports its employees is essential for empowerment. Creating a positive environment where open communication, collaboration, and inclusivity are encouraged helps employees feel connected to the organization’s mission. This sense of belonging fosters greater motivation and engagement, as employees feel their contributions are meaningful and appreciated.
Recognizing and rewarding employees
Regularly acknowledging and rewarding employees for their efforts is a powerful way to make them feel valued. Whether through formal recognition programs, bonuses, or simple expressions of gratitude, recognizing individual and team achievements reinforces a culture of appreciation. This not only boosts morale but also encourages employees to continue performing at a high level, knowing their hard work is noticed and rewarded.
Providing opportunities for growth and development
Offering clear pathways for career growth and development is key to empowering employees to reach their full potential. When employees see opportunities for advancement within the organization, they are more likely to stay motivated and focused on personal and professional growth. This can be facilitated through promotions, leadership training, or cross-functional projects that challenge them to expand their skill set. Empowered employees are more likely to contribute to the long-term success of the organization, knowing they have room to grow and evolve.
Overcoming Challenges to Employee Empowerment
Empowering employees can be challenging, especially in traditional or hierarchical organizations. Common challenges include:
- Employees may resist changes to their roles or responsibilities, particularly if they are accustomed to a more traditional structure.
- Managers may struggle to trust employees with more autonomy and decision-making authority, especially if they are used to a more controlling management style.
- Empowering employees may require additional resources, such as training and development programs, which can be a challenge for organizations with limited budgets.
- Employees may be hesitant to take on more responsibility or make decisions if they fear making mistakes.
To overcome these challenges, organizations can:
- Communicate clearly and transparently about the benefits of empowerment and the expectations for employees.
- Provide training and development programs to help employees build their skills and confidence.
- Foster a positive company culture that values and respects employees.
- Recognize and reward employees for their contributions and achievements.
- Provide opportunities for growth and development to help employees feel more empowered and motivated.
By addressing these challenges head-on, organizations can create an empowered workplace where employees feel valued, motivated, and engaged, ultimately driving the company’s success.
Employee empowerment as a tool of change management
Employee empowerment is a key factor in producing sustainable change in any organization. If your people feel isolated, unloved, and not listened to, resistance to change will snowball. Our change coaching and training programs have been designed to help break down communication barriers, and increase engagement through the process of change.
To discover how a Change Agent Bootcamp and coaching to empower your people will help your organization and leaders produce lasting change, contact Primeast today.
