decsionwise: employee engagement and the hourly employee

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Based on our research with hundreds of organizations, we have found that while hourly employees have different expectations of the employment contract than exempt employees, the fundamental drivers of engaged performance are the same. Engagement is largely based on the activation of basic human motivations--no matter the job status or responsibilities. Learn key factors in creating an environment where your best hourly employees want to stay and are engaged in their work. What are the differences in expectations for non-exempt employees? What are the drivers of satisfaction and engagement for hourly employees? What are the differences in employee engagement exempt and non-exempt employees? How can managers engage their hourly workforce to improve performance?

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©2013. DecisionWise, Inc. All Rights Reserved. www.decision-wise.com | 1

Employee Engagement and the Hourly Employee

Charles Rogel Dir. Business Development

DecisionWise

Paul Warner Dir. Consulting Services

DecisionWise

©2013. DecisionWise, Inc. All Rights Reserved. www.decision-wise.com | 2

About DecisionWise

360-Degree Feedback

Employee Engagement

Leadership Development & Coaching

Organization Change

Awareness | Action | Accountability

Clients

©2013. DecisionWise, Inc. All Rights Reserved. www.decision-wise.com | 3

Hourly Employees are Critical…

Hourly employees are on the front-lines of:

Production

Quality

Customer Experience

Advocates and supporters of operational performance

©2013. DecisionWise, Inc. All Rights Reserved. www.decision-wise.com | 4

Satisfaction

Engagement

Hearts, Hands, & Minds

Contractual

Tra

nsfo

rmatio

nal

Tra

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Meaning Autonomy Growth Impact Connection

The Engagement Experience

©2013. DecisionWise, Inc. All Rights Reserved. www.decision-wise.com | 5

Employment Contract

Exempt

1. Compensation

2. Benefits

3. Advancement

4. Positive work Environment

Hourly

1. Compensation

2. Benefits

3. Tools and Resources

4. Positive work environment

5. Advancement

©2013. DecisionWise, Inc. All Rights Reserved. www.decision-wise.com | 6

Case Study: Retail

Source: Harvard Business Review Jan/Feb 2012

©2013. DecisionWise, Inc. All Rights Reserved. www.decision-wise.com | 7

Case Study: Retail

Walmart Costco

Low Labor Budgets

Low Quality and/or Quantity

of Labor

Poor Operational Execution

Low Sales and Profits

High Labor Budgets

Good Quality and/or Quantity

of Labor

Good Operational Execution

High Sales and Profits

©2013. DecisionWise, Inc. All Rights Reserved. www.decision-wise.com | 8

Case Study: Manufacturing

Multinational manufacturing organization

Locations: 30

Market Share: 30%

Annual Revenues: 1 Billion

Employee Count: over 2,500

©2013. DecisionWise, Inc. All Rights Reserved. www.decision-wise.com | 9

Top 5 Drivers of Engagement

Exempt/Salaried Employees

1. Challenge in Job

2. Advancement

3. Coaching/Mentoring

4. Autonomy

5. Pride in company

Hourly Employees Employees

1. Respect

2. Rewards/Incentives

3. Voice

4. Challenge in Job

5. Advancement

©2013. DecisionWise, Inc. All Rights Reserved. www.decision-wise.com | 10

Case Study: Manufacturing

Employee Voice Only 51% of hourly employees believed that they had a voice compared to 70% of salaried/exempt employees. Career Opportunities Only 39% of hourly employees reported that they received counseling on their careers (compared to 54 percent of exempts) even though 70% of hourly employees felt that there were career opportunities within the company.

©2013. DecisionWise, Inc. All Rights Reserved. www.decision-wise.com | 11

Engaging Hourly Employees

1. Treat with dignity and respect

2. Communicate total compensation package

3. Promote advancement opportunities

4. Train

5. Provide needed tools and resources

Satisfaction

Contractual

Tra

nsactio

nal

©2013. DecisionWise, Inc. All Rights Reserved. www.decision-wise.com | 12

1. MEANING: Articulate clear and compelling vision and goals

2. AUTONOMY: Delegate-coach-support

3. GROWTH: Foster personal mastery experiences

4. IMPACT: Provide feedback, information, and recognition

5. CONNECTION: Establish a collaborative environment and personal working alliance with group members

Engaging Hourly Employees

Engagement

Hearts, Hands, & Minds

Tra

nsfo

rmatio

nal

Meaning Autonomy Growth Impact Connection

©2013. DecisionWise, Inc. All Rights Reserved. www.decision-wise.com | 13

How Managers Inhibit Engagement

Negative mood and affect

Negative attitudes about subordinates (mistrust)

Over- or under-manage

Create fear of speaking up

Fail to connect individual contributions to larger goals and objectives

©2013. DecisionWise, Inc. All Rights Reserved. www.decision-wise.com | 14

Paul Warner pwarner@decision-wise.com Charles Rogel crogel@decision-wise.com Tel. 1.801.960.1400 www.decision-wise.com

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