Leaders around the world are under pressure for results than ever before. As a result of the economic downturn businesses worldwide are feeling the intense pressure of customers and shareholders becoming more demanding. Increasingly, it is to their people and not just technology that they have to turn for answers.

According to a Gallup survey, only 29 per cent of employees are actively engaged in their jobs, 54 per cent are not engaged, and 17 per cent are actively disengaged. That's bad news as the vast majority of disengaged employees drag down the overall organisation performance and success.

The good news is that employers can significantly influence how engaged and therefore motivated their employees are. The challenge is for them to switch these employees to engage their talents in serving customers and the organisation.

Actively engaged employees usually not only make more money for the organisation but contribute to a healthy working environment. They have more commitment and stay longer in organisations. Engaged employees also need the least amount of attention from their managers.

Employee engagement is therefore critical to the success of organisations. Not only does it help achieve organisational goals it provides the cutting edge in times of crisis. It contributes to creating a healthy and productive work environment and eventually leads to enhanced "customer engagement".

So what should be done to strengthen employee engagement?

Explain the big picture. Setting a clear, compelling direction that empowers each employee is vital. Senior leaders are privy to what their organisation does and how it impacts customers, stakeholders and employees. Employees don't know this information unless they read all company communication. It's the leader's responsibility to talk as to what the company does and how the employee's role impacts the lives of customers, employees and stakeholders.

Communicate. Open, sincere and continuous communication with employees at all times is a must. Suggestions should be invited from employees for improvement areas. Also the channels of communication should be open at all times making it a real two-way communication.

Develop. Continued focus on career growth and development of employees should be there. Leaders should provide opportunity for employees to develop their potential. Also they should be provided with adequate resources to solve problems and do a job well. Effective leaders should also take time out to have a face to face dialogue about employee strengths and how these can channelled to design and achieve goals, targets and milestones.

Reward and recognition. High performance should be given real recognition and/or reward. While employers may be freezing pays and cutting back on perks, they should continue to find ways to reward those who are treating customers well and generating repeat business. This way the employee shall feel valued.

Celebrate as a team. When important milestones are achieved it is important to celebrate together as a team. It gives the employees a sense of progress even in trying times and generates bonding leading to higher "engagement".

- Sanjiv Anand is the Managing Director and Amit Khare is Engagement Manager at Cedar Management Consulting International.