Empowering employees - strengthening everyone's entrepreneurial spirit!

According to the latest Gallup study (2024), around 80% of employees in Swiss companies do not reach their full potential and fall short of their potential in terms of productivity, performance and motivation. But how can companies change this? The answer lies in empowerment.

A look into the past shows that charismatic leaders such as Nicolas Hayek once steered the fortunes of entire industries. Hayek led the Swiss watch industry out of the crisis in the 1980s with visionary and charismatic leadership and turned the Swatch Group into a global success. But the days of the "great man" style of leadership, in which everything depended on a strong leader, are long gone.

In today's complex global economy, companies rely on the active involvement and initiative of all their employees. Whereas ideas used to come primarily from top management and were then implemented by employees, today many valuable ideas are generated directly in the operational areas, for example through direct customer contact. This is where the principle of employee empowerment comes in. It creates a framework in which employees at all levels and in all functions are motivated to contribute their ideas and act independently.

What is empowerment?

Empowerment means giving employees the opportunity to shape their work independently and creatively instead of working rigidly according to regulations. Many studies show that empowered employees develop innovative ideas, which increases the company's competitiveness.

The concept of empowerment also takes into account the changing expectations of the modern working world. Empowerment is a central element of a modern management philosophy - it ensures that employees perceive their work as meaningful and enriching. The role of managers is changing as a result: Away from controlling, towards empowering.

Developing potential through empowerment

The formula for developing potential can be summarized simply: Potential = Skills x Will x Empowerment. The full potential of a capable and motivated employee can only unfold in an environment that enables this development. Empowerment creates this necessary environment by giving employees the opportunities they need.

Avoid misunderstandings: More freedom of choice is not enough

The term "empowerment" is often misunderstood and interpreted as freedom of choice. But empowerment is more complex. More decision-making and creative freedom alone does not automatically lead to more motivated and productive employees. Instead, the working environment must be designed in such a way that employees can develop their full potential.

In order to achieve genuine empowerment, four levers must work together in the working environment. In addition to decision-making and creative freedom, incentives, information transparency and resources also play a decisive role. These include not only time resources, but also qualified feedback, advice and the willingness of colleagues and superiors. These elements must work together for empowerment to have the desired effect. We call this approach "structural empowerment" because the focus is on the design of organizational structures.

Four levers of structural empowerment

1. Access to information and information transparency: Ensure that your employees have the relevant information they need to perform their tasks effectively. Promote communication and information transparency through internal communication systems such as intranet portals and regular meetings.
2. Freedom of decision and autonomy: Allow your employees to make decisions within a defined framework. A decentralized decision-making structure enables them to manage projects independently or make budget decisions, but within clearly defined guidelines.
3. Resources: Provide the necessary resources to successfully fulfill their tasks. Organize training, mentoring and development programs to develop employees' skills.
4. Incentives: Use financial rewards such as bonuses and non-monetary incentives such as recognition, promotions or development opportunities. Performance-based reward systems based on team performance are a good example.

Empowerment is more than just a buzzword. It is a comprehensive concept that requires careful design of the organizational framework. By offering their employees not only the freedom to make decisions, but also access to information, resources and targeted incentives, companies create an environment in which personal responsibility and creativity can flourish. This not only leads to an increase in productivity, but also to employees identifying more strongly with their work and the company.

Tip - Avoid this mistake when implementing empowerment: freedom of choice alone is not enough

A common misconception when introducing empowerment is that it is simply about granting freedom of choice. In fact, empowerment is much more than that. It requires a comprehensive understanding of the four basic levers of structural empowerment: access to relevant information, freedom of choice, provision of resources and targeted incentives. Check whether all these elements are present in your company. A simple questionnaire can help you identify gaps. Remember: empowerment will only be fully effective if all four areas are equally considered and implemented.

This article was published in the HR magazine Penso on September 5, 2024. It is the first article in a four-part series.