According to a case study detailed in AIM’s publication “Management Today”, Luxottica discovered three years ago a significant disconnection between the way customers and employees viewed their organisation. They had a dominant market position and world class brands but a low level of staff engagement and an unacceptably high level of staff turnover. They set about changing this and within 18 months of a 3 year program they had made significant improvements.
Rhonda Brighton, the Group General Manager of Human Resources reported that the successful implementation of a staff engagement program led to an increase in both top and bottom line growth and an increased market share. A fourfold increase in learning and development spending also contributed significantly to an 8% drop in the annual staff attrition rate, a 15% improvement in engagement and a 30% reduction in recruitment costs. In the article by Mark Story, Brighton stresses that simplicity was at the heart of the process.
The September issue of Management Today is a great read. Other AIM (Australian Institute of Management) resources can be found at www.aim.com.au. Enjoy.