Employee Engagement
February 26, 2014
Presentation Covers
• What is Employee Engagement
• Evolution of Employee Engagement
• Importance of Employee Engagement
• Employee Engagement at Engro
What is Employee Engagement?
Engagement as a psychological state in which employees feel a vested interest in the company’s success and are both willing and motivated to perform to levels that exceed the stated job requirements.
Engaged Employees
bring positive energy and
commitment
Increased Discretionar
y Efforts
Stronger Intent to
stay
Employee Engagement Evolution
- Enjoys the job
- Is not dissatisfied with terms and conditions
- Not necessarily a team player
Satisfaction
- Strives to achieve personal goals
- Contributes energetically
-Values achieving personal goals more than team/ organizational goals
Motivation
-Proactively seeks opportunities to serve the mission of the organization
-Willing to go the “extra mile”
-Is willing to withhold criticism and/or be constructively critical for the good of the organization
Commitment
-Loyal to organization, optimistic for the future
-Collaborates to achieve team goals
-Has a sense of belonging to organization
Engagement
What it is and What its not....
IS not about Is about
Pleasing all people all time How we treat and relate to people
A catch phrase for all HR programs Shared responsibility for creating future together
Having the best of every amenity Opportunities for performer
Continuous communication
EMPLOYEE ENGAGEMENT IS NOT A PROGRAM …… IT’S A CULTURE!!
Category of Engagement
Impact of Employee Engagement
Productivity and Performance
Profitability
Low Turnover
Innovation
Customer Satisfaction and Loyalty
Physical and Psychological well being
Less quality defects
Your customer tell your
friend
Their friends call
you and want to buy
You get business results!
1. You treat your people
well
2. Your people
treat your customers
well
Impact of Employee Engagement..cntd.
Similar businesses engagement level checked, data points: 681,799 employees,
23,910 independent business units in 125 companies
Fully engaged employees are:
62% less likely to be involved in an accident on the job
18% more productive
12% more profitable
51% less likely to leave the organization
12% better at engaging customers
27% less prone to absenteeism
Employee Engagement & Business Results
Data: 2002-2004 performance of 89 publically traded companies were compared to their actual competitors (7.3 competitors on average per
company)
18% higher EPS than competitors
15.6% increase from baseline
Growth rate of high engagement companies was 2.6 times the growth rate
of the low engagement companies
Need for Employee Engagement for Engro
• Performance
• Business Results
• High voluntary turn over
1. Overall engagement
level
2. Identifying pain points
3. Strategy to address pain points
4. Execution
Process for Initiating Employee Engagement
1. Identification
of problem
2. Made part of
the objectives
3. Vender Selection
4. Report Generation
4. Action Plan
1. Data Driven approach to gauge effectiveness of HR & leadership practices
2. Input for HR strategy & initiatives
3. Employee engagement to be the KPI in Corp Board dashboard
4. Target from Board.
Employee Engagement Survey
• Launched for the first time in 2011.
• Mercer methodologies was selected based on proper valuation by a cross functional HR team.
• CEO message was sent to all as a launch.
• Branding was done to create impact.
What’s next……
Results presente
d to Manage
ment
Special Session
were held with
Departments
Employee’s
feedback
communicated to the
DMs
Departmental
EEI
Target
Setting
Employee’s
feedback
communicated to the DMs
Unit
EEI
Action plans
reviewed
Execution and close
monitoring
Results Communication
Action Plan
Target Setting
HR Dimension
Quality and Customer Focus
Ethics and Integrity
Teamwork and Cooperation
Comm. and Info. Exchange
Leadership and Direction
Infrastructure and Support
Immediate Manager
Career Growth
Performance Management
Compensation & Benefit
Training and Development
Work - Life Balance
Key Enablers Acquire Bond Comprehend Defend
Outcome
Advocacy Overall
Satisfaction Discretionary
efforts Boundary less
Talent
Business Results Business Focus Performance Low Attrition
Employees clearly know their role, have what they need to fulfill their role, and can see the connection between their role and the overall
organizational purpose
Employee Engagement Framework
Improvement made resulted in…
• Performance – increase in Production of products (PVC, EDC, Caustic)
• Business Results –from losses to profits
• High voluntary turn over- 4% drop in the attrition over the past three years
“Connect the dots between individual roles and the goals of the organization. When people see that connection, they get a lot of energy out of work. They feel the importance, dignity, and meaning in their job.” -Ken Blanchard and Scott Blanchard, Do People Really Know What You Expect from Them? Fast Company
Thank you!
ANNEXURE
Employee Engagement Survey Evaluation
No. Criterion Description Wt.
Score on the relative scale of 5, 5 being the best among options
Q12 Hay Mercer Engage
HR Nerejo
HR
1 Level of analysis
How well the survey links the outcome on various engagement criteria to root cause? Does it help in selecting key focus areas that, if improved, will result in significant enhancement in employee engagement levels? Is the analysis statistically valid?
35% 5 4 4 2 3
2 Subsidiary specifics Does the survey give the option of adding few subsidiary specific questions?
10% 5 5 5 5 5
3 Support Services &
Trainings
Quality of customer support service and training mechanism? Capability of the service provider to support us in developing and implementing post survey strategy?
25% 2 2 3 1 2
4 Alignment with internal systems
Alignment of survey with the terminology and systems currently being used in the organization?
10% 1 5 3 1 1
5 Benchmarking Does the survey allow to benchmark results with local and international organizations?
20% 3 3 5 1 1
Overall Score 3.45 3.5 3.95 1.75 2.35
Criteria of Evaluation
Why Mercer?
Validity of tool
Depth of analysis
Local presence of Mercer’s team
Local benchmarks – LOTPTA, Coke, Nestle, Telenor
International benchmarking with similar business possible
Facilitation in action planning process
Affordability
Employee Engagement Levels
Dissatisfied
Drivers of Engagement – Input Variables
1. Work Organization
2. Quality & Customer Focus
3. Communication
4. Work/Life Balance
5. Job Security & Career Growth
6. Teamwork & Cooperation
7. Ethics & Integrity
8. Immediate Manager
9. Performance Management
10. Compensation
11. Leadership & Direction
12. Training & Development
13. Engro specific dimensions etc; Safety & Security
How does it work??
Action Planning – Organization and Divisional Segmentation
Focus Areas –Drilling Down the Dimensions with High Correlation with EEI and Low Ratings by Employees to Identify Pain Point
Analysis – Correlation with 12 HR Dimensions
Outcome – Employee Engagement Index (EEI)
89%
76%
82%
77% 73%
76% 72%
62%
57%
62% 65%
83%
66% 69%
61% 60% 58%
64%
42%
47%
35%
40%
30%
40%
50%
60%
70%
80%
90%
AIMA
Engagement Drivers