employee engagement: “are we engaged or just going...

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Employee Engagement: “Are We Engaged or Just Going Steady?”

Joseph Marth, PhD

Vice President of Business Solutions


Session Overview

• Foundation in understanding Employee Engagement

– Definition and background of Employee Engagement

– The national averages

• Engagement at the Individual Level

– Engaged employee behaviors

– The 8 Drivers

• Engagement at the Organizational Level

– The organizational outcomes of engagement

– Ties to Organizational Culture

– The common elements of Highly Engaged Organizations


Remember when…

• Recall a time in your career when you were highly satisfied and engaged in your job.

• What were the reasons you were so happy?

• In your pair/triad:

• Have each member describe their experience and the supporting reasons

• Identify common themes


Remember when…

• Recall a time in your career when you were highly dissatisfied and disengaged in your job.

• What were the reasons you were so unhappy?

• In your pair/triad:

• Have each member describe their experience and the supporting reasons

• Identify common themes


Will They Leave?

• Job Searching –

– 51% of employees are searching for new jobs

– 63% of employees believe that t is “very likely” or “somewhat likely” that they will find a job as good as the one they have

• Voluntary Quits – 91% of employees say that the last time they changed jobs, they left their company to do so;

• Managers are trending out – 31% are looking for other opportunities

• National unemployment rate: 4.3%

• The Question: not if, but when?


Employee Engagement at the Foundation Level


Employee Engagement

Employee Engagement Defined:

• “A heightened emotional and intellectual connection that an employee has with his/her job, organization, manager, or co-workers that influences the amount of discretionary effort that employee puts into his/her job.” – John M Gibbons, Employee Engagement: A Review of Current Literature and Its Implications, (2006)

• Concept of Engagement:

– First introduced by William Kahn in 1990 in academia, later refined by Alan Saks, Wilmar Schaufeli, and others

– Proliferation of non-academic sourced research and tools to measure it in the 2000s (Gallup, Aon Hewitt, Towers Watson, Blessing White, The Conference Board, etc)


Employee Engagement

Video link: https://youtu.be/y4nwoZ02AJM

https://youtu.be/y4nwoZ02AJM


Where are workers today?

Source: Gallup, 2017

Engaged32%

Disengaged52%

Actively Disengaged

16%

EMPLOYEE ENGAGEMENT


Comparisons & Contrasts

• 2016 Engagement by Management Level: 45% Executives vs. 29% Managers

• 2016 Engagement by Gender: 36% Females vs. 30% Males

• 2016 Engagement by Generations: Millennials: 31% vs. 33% Gen Xers vs. 35% Baby Boomers

• 2016 Engagement by Occupation: Professional Workers 34%vs. 25% Manufacturing Workers

• 2016 Engagement by Company Size: 41% if less than 25 employees vs. 29% if 5,000 or more employees


Employee Engagement Model

The Conference Board, 2014


Engagement at the Individual Level


Engaged Employee Behaviors

• Demonstrate high levels of effort

• Persist at difficult tasks over time

• Help others

• Go beyond the norms or expectations

• Voice recommendations for changes and improvements

• Expand their role or responsibilities in response to a team or organizational need

• Adapt to or facilitate change to improve work, the workplace, and the organization’s effectiveness

Source: Schneider, Macey, Barbera, Young, Lee (2006)


Eight Primary Drivers

1. Trust and Integrity

2. Nature of the Job

3. Line-of-Sight Between Individual Performance & Company Performance

4. Career Growth Opportunities

5. Pride About the Company

6. Coworkers/Team Members

7. Employee Development

8. Relationship with One’s ManagerSource: The Conference Board, “Employee Engagement: A review of Current Research

and It Implications” by John Gibbons (2006)



1. Trust and Integrity – perception that management cares about employee well-being, is truthful, communicates difficult messages well, listens, follows through, and demonstrates values through their own behavior.

2. Nature of the Job – degree to which employee derives emotional/mental stimulation from the job, has opportunities for autonomy and participation in decisions affecting the job.


3. Line-of-Sight Between Individual Performance and Company Performance – how well employees understand company goals and overall performance, and know how individual contributions impact company performance.

4. Career Growth Opportunities – perception that future opportunities for career growth and promotion within the company exist; clearly defined career path.



5. Pride About the Company – enhanced self esteem from being associated with the company. Likely to recommend the company to prospective customers and employees.

6. Coworkers/Team Members – recognizes the significance of the influence that colleagues have on employee’s level of engagement.




7. Employee Development – the degree to which an employee feels that specific efforts are made by the company or manager to develop the employee’s skills.

8. Relationship with One’s Manager – the degree to which an employee values the relationship with his/her direct manager. Also relates to the degree to which the employee sees his/her manager as competent.


Engagement at the Organizational Level


Employee Engagement and Organizational Outcomes

• Positive link between employee satisfaction and engagement and organizational outcomes:

• Higher Customer Satisfaction

• Higher Productivity

• Higher Profit

• Higher Employee Retention

• Higher Safety

• Higher Quality



• Employees who are more engaged in their work:

– more satisfied with their jobs

– less likely to leave their companies

– more likely to attain their performance objectives

• Transformation of workforce from low to high engagement translates into a $4,200 per employee annual impact in increased performance.– Source: DDI (2005), “Employee Engagement: They Key to Realizing Competitive Advantage”



According to Gallup (2013)…

• Organizations with an average of 9 engaged workers for 1 actively disengaged employee (9:1) experienced 147% higher earnings per share compared with their competition.

• In contrast, those organizations with an average of 3 engaged employees for 1 actively disengaged employees (3:1) experienced 2% lower earnings per share compared with their competition.


The Magic Formula

(Strategy x Processes x Infrastructure)Engagement


The Magic Formula

(Strategy x Processes x Infrastructure)

Engagement

Where 1=Poor, 2=Okay, and 3=Great

(2 x 2 x 2)1 = 8

(3 x 3 x 2)1 = 18

(3 x 3 x 2)2 = 324

(3 x 3 x 2)3 = 5,832


Building human

capability, ownership,

and responsibility

“Are our people

aligned and engaged?”

Adaptability

Pattern, Trends, &

Market

Mission

Direction, Purpose,

& Blueprint

Defining a meaningful

long-term direction

for the Company

“Do we know where

we are going?”

Translating the demands

of the business

environment into action

“Are we listening

to the marketplace?”

Involvement

Commitment,

Ownership, &

Responsibility

Consistency

Systems, Structures,

& Processes

Defining the values

& systems that are the

basis of a strong culture

“Does our system

create leverage?”

Denison Culture Model


11th Percentile ENGAGEMENT FACTOR 83rd Percentile

Bottom 10 Top 10DOCS OVERALL

Organizational Cultureand Employee Engagement


Strongest Predictorsof Employee Engagement


Highly Engaged Organizations

Common Elements

1. Alignment of business and engagement strategies

2. Emphasis on Core Purpose

3. Engagement programs and policies

4. Open communication about engagement

5. Structure that promotes collaboration and inclusion

6. Regular assessment and follow-up

7. Leaders who build engagement

8. Engagement data correlated to business outcomes

Source: The Conference Board, “The DNA of Engagement: How Organizations Create and Sustain Highly Engaging Cultures” by Rebecca Ray et al. (2014)


Strategy Alignment

73% of the high engagement companies…

• Integrate engagement in business decisions

• Expect organization members to embrace it

• Weave it throughout the business

• Recognize how engagement brings tangible benefits


What Does It Look Like?

Whole Foods Market…

• Everyone is responsible for engagement

• Team members are expected to work well together and so they decide collectively who gets hired

– After a new hire works for a 30 to 90 day trial period, the team takes a vote on whether or not to continue their employment


Core Purpose

More than half of high engagement companies…

• Describe their engagement culture as being heavily defined by their values, mission and vision



Quicken Loans…

• New employees attend an 8-hour session on company values and behaviors, led by the Company founder and chairman and the CEO.

Zappos…

• “We have 10 core values, and when we hire people, we make sure they have similar values. For example, one of our values is to be humble. If someone comes in and is really egotistical, even if they are the greatest, most talented person technically and we know they could do a lot for our top or bottom line, we won’t hire them, because they’re not a culture fit.”

– Tony Hsieh CEO, Zappos.com


The Value of Values


The Value of Values

Video link: https://youtu.be/5CcLIPaUz3E

https://youtu.be/5CcLIPaUz3E


Policies and Programs


• Promote engagement in programs and policies throughout the employment lifecycle

• Integrate engagement practices with leadership development, and diversity and inclusion programs

• One size does not fit all…

• no common programs or policies across all companies

• programs are tailored to unique cultures and engagement strategies



Development Dimensions International (DDI)…

• Culture fit is a key determinant during candidate selection

• Immediately following orientation, new hires create a development plan for their first 6 weeks

• After 6 weeks, the supervisor works with them to create a performance/development plan for the year

• Plan is aligned with at least one DDI strategic priority


Open Engagement Communication

All of the high engagement companies…

• Are diligent about keeping employees at all levels informed about organizational priorities and objectives

• Keep communication about engagement at the forefront

• Share specific plans for organizational improvements that will increase engagement



Alcoa

• The CEO at Alcoa holds regular town hall meetings to share engagement survey results

US Patent and Trademark Office (USPTO)

• Provides a variety of methods: blogs, town halls, Q&A sessions

Whole Foods Market…

• Annual wage disclosure report is available to any employee who wants to review it


Structure for Collaboration and Inclusion


• Recognize the profound impact of the physical work space on behavior, productivity and engagement

• Those with geographically dispersed teams know the importance of an engaging virtual work environment



Deloitte

• Their Leadership Center built to provide a space for dispersed workforce to come together for connection and learning

Quicken Loans

• Work space designed for “fun and functionality”

• Colorful décor

• Materials that dampen sound

• Spaces to go relax


Regular Assessment and Follow-up

Over 80% the high engagement companies…

• Have formal processes for surveying engagement

• Those without formal processes still track engagement

• All have defined practices for making the data actionable



Alcoa…

• Annual Global Voices Survey (GVS)

• Voluntary, anonymous participation

• “Survey Champions” communicate survey results to business managers, promote participation, encourage action planning and follow through

• GVS results from 100’s of locations become location-specific action plans for improving engagement


Leader Expectations


• Hold executives and senior management accountable for acting on survey results


• Require managers and front-line supervisors to hold forums to share results with their employees and collaboratively create action plans



DDI…

• Analyzes data for themes and trends

• Generates business unit and team reports

• Distributes detailed plan from the President describing expectations for sharing/acting upon results

• Department managers submit action plans to the President


Engagement Data Correlates to Business Impact


• Use employee feedback and engagement data to drive their business results

• Track engagement scores year over year

• Measure impact on specific performance indicators:

– Turnover and retention

– Diversity and inclusion

– Business unit performance

– Brand and reputation

– Well being

– Customer satisfaction



Whole Foods

• Uses data from annual survey to identify specific aspects of morale that correlate to performance outcomes such as higher productivity and sales

US Patent and Trademark Office (USPTO)

• Leader in teleworking programs

– Avoided in excess of $30 million real estate costs

– Inclement weather has no effect on office hours

– Saved 6 million gallons of gas / 27,000 tons of emission into the atmosphere


Leadership is Key

Leaders are the enablers of highly engaged cultures

• Authorize programs and practices

• Approve award systems

• Articulate the Vision

• Decide on strategy

• Are accountable for business success


Q &A


Thank You!

Contact Information:

• Joseph Marth, PhD – Vice President

• [email protected]

• 206.664.7165

mailto:[email protected]

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