EMPLOYEE ENGAGEMENT IN 2019

IMPSA

2

Who is Emergence Growth?

Emergence Growth is Africa’s premier Human Capital and Reward

Consultancy, with offices in a number of African countries. All

interventions combine local knowledge with global good practice. We tailor solutions to meet

the specific requirements of our clients. We have consulted to over 2500 organisations both

locally and globally.

Emergence Learning Academy is a world class learning institution

which provides high-quality learning opportunities, designed around

individual and organisational needs. We provide end-to-end learning solutions, from the

design of appropriate materials, to the delivery and ultimately qualifications to learners.

Origins Of Employee Engagement

It is not just about attracting the crème-de-la-crème and retaining them, but

also keeping them motivated to achieving the organization goals.

Alexander (356 BC – 323 BC) conquered unknown lands by battling for years

across continents, miles away from home, because he had an engaged

army…..BUT…He lost the plot. Ego and greed.

3

What is

Employee Engagement?

“ The psychological commitment an

Employee has to the organization “Employees who really care about the organization, go the extra mile and

deliver discretionary effort.

4

“There are only three measurements that tell you nearly

everything you need to know about your organization’s overall

performance: Employee Engagement, Customer Satisfaction and

Cash Flow” – Jack Welch (Ex-CEO, General Electric)

50 % of the working population will be…

MILLENNIALS

Africa in 2020…

Millennials are informed, connected, willing to work if given learning opportunities.

Personal growth, opportunities to learn and explore is becoming a primary driver.

Fairness - more than pay – is the driving force

Millennials

6

Millennials are not pursuing job satisfaction

― they are pursuing development.

Most millennials don't care about fancy

latte machines and free food that

companies offer to try to create job

satisfaction.

Giving out toys and entitlements is a

leadership mistake, and worse, it's

condescending.

Retaining Millennial talent

Millennials don't want bosses ―

they want coaches, not old-style

command and control.

Millennials care about having

managers who can coach them,

and value them as both people and

employees

Retaining Millennial talent

Millennials don't want annual reviews ― they

want ongoing conversations and

communication.

This dramatically affects the workplace -

millennials are accustomed to constant

communication and feedback by texting,

tweeting, Skype, etc.

Annual performance reviews no longer work.

Retaining Millennial talent

Millennials don't want to fix their weaknesses ― they

want to develop their talents/strengths.

Weaknesses never develop into strengths, while strengths

develop infinitely.

Organisations shouldn't ignore weaknesses. Rather, they

should minimise weaknesses and maximise strengths.

Retaining Millennial talent

Millennials don't just work for a

paycheque ― they want purpose

and meaning. Research shows

Millennials are 171% more

productive when they understand

how their contribution impacts the

organization. (Prof Grant – Warton)

Millennials - compensation is

important and must be fair, but it's

no longer the only driver

Retaining Millennial talent

LOCAL MOTORS –CROWD DESIGNED ELECTRIC CAR by MILLENNIALS

12

SOON IT WILL BE COMPANIES VS COMMUNITIES

13

EXTRINSIC MOTIVATION

FOR THE MONEY

GENERAL MOTORS

INTRINSIC MOTIVATION

FOR A GREATER PURPOSE

LOCAL MOTORS 3D

VS

How do you attract and retain

millennials?

Employment brand – How will you compete with the opposition?

Compelling and differentiated EVP

On-line - > 60% look on line

You’re selling – they’re consumers

They want an opportunity to learn and grow – real-time-on-line

They want SUPPORT – managers need to be coaches

14

Where are you fishing for your talent?

15

< 2% of millennials read

newspaper & magaziness

The majority of the workforce will freelance

by 2027 Today, more than 57 million US workers (36% of the US workforce) freelance. By

2027 over 50 % will freelance. Almost half the millennials in the USA are

freelancing already.

Simultaneously, there will be large-scale adoption of freelance talent by

companies looking to fill talent gaps. How will you keep your millennial

freelancers engaged?

If your answer is ….not my problem….then, welcome to obscurity.

16

Process of Employee Engagement

Employee Engagement is not a one-time process.

There is a clear link between organisational performance and employee

engagement.

17

Prepare

and

Design

Employee

Engagement

Survey

Results

AnalysisAction

Planning

Action

Follow up

Process of Employee Engagement

Prepare and Design:

Employee Engagement Survey:

Result Analysis:

Action Planning:

FIT Scores

Action Follow Up:

Communication and project management are the backbone of the entire

employee engagement process.

18

Cost of Employee Engagement

Effect of Disengaged Workforce

On Work – evade work, struggle to meet deadlines, reluctant to accept responsibility

On Co-workers – affects team morale

On Customers – all employees are brand ambassadors. Disengaged employees de-sell

the organisation, create disengaged customers

On Productivity – seldom meet organisational goals, evade completing tasks

On Company performance – delayed completion of tasks costs the company which

impacts on the bottom line and customer service

On Personal life – unable to shake off lethargy in order to perform or get another job.

Frustration will affect personal and family life

19

Benefits of an Engaged workforce

Goes the extra mile

Innovates

Attracts and retains customers and employees

Evangelists of the company, its products and processes

Infuses energy and positivity at the workplace

20

Does employee engagement affect financial performance?

21

Does employee engagement affect financial performance?

INCREASED PRODUCTIVITY

Engaged workforce are 40% more productive than those not engaged

LOWER EMPOYEE TURNOVER

Main reasons for looking for other jobs are, employees are not interested in what they

are doing, or not happy with the organisation/leadership. When people stay this

decreases the cost of finding new employees and training them

IMPROVED CUSTOMER SATISFACTION

When an employee loves their job, they will go the extra mile to assist customers.

They happily resolve all customer queries. This establishes long term relationships with

customers, which increases the number of loyal customers.

22

23

Characteristics of Engaged workforce

Mutual trust

Job and career satisfaction

Credible leadership

Focused staff and keen to take up challenges

Better performance

Problem solving attitude

24

What is your Engagement strategy?

It should be short and focused

25

26

This 1 question will make every decision in your life easier

BENJAMIN P. HARDY APRIL 7, 2019

The British rowing team used this single question — a profound

implementation intention — to quickly escalate their unity, skills,

conditioning, and training.

The British rowing team had not won a gold medal since 1912. By all measures, they didn’t have a good rowing program. Then something changed. In anticipation of the 2000 Sydney Olympics, the team developed a useful strategy that changed everything. They went from being an average rowing team to winning Olympic Gold.

Put simply…they sucked

Keep it short and focused

27

What makes this idea so powerful is that — in addition to visualizing the achievement of a goal, you’re also visualizing the process. You’re thinking of all the ways it could go wrong. And you have a simple and triggered response to overcome any obstacle. The best example I’ve ever heard of the use of implementation intentions was the British rowing team of the 2000 Sydney Olympics. They developed a one-question response to EVERY SINGLE DECISION they made. This one question allowed them to measure every situation, decision, and obstacle — and to not get derailed where most people do. With every decision or opportunity, every member of the team asked themselves: WILL IT MAKE THE BOAT GO FASTER?

Game over

Example: you get invited to a late night party the night before training. WILL IT MAKE THE BOAT GO FASTER? If the answer is no… then the decision is no. Tempted to eat a doughnut? WILL IT MAKE THE BOAT GO FASTER? The British rowing team used this single question — a profound implementation intention — to quickly escalate their unity, skills, conditioning, and training. They destroyed their competition and won GOLD.

All in

search of

a GOLD

MEDAL

29

It is not a sprint …it’s a marathon!

Employee engagement improvement is NOT about trying to do EVERYTHING right

IT IS ABOUT…… doing SOME of them RIGHT, OVER AND OVER AGAIN. ….BUT….

DO SOMETHING…..ONE INCH AT A TIME

30

2018/19 Africa survey

Engagement Surveys identify practices

within the organization which affect the

level of employee engagement &

satisfaction. Improved engagement leads

to improved employee retention and

higher productivity levels.

The research includes aggregated

feedback from over 3500 organizations

across Africa. This is regarded as the

premier Employee Engagement survey in

Africa.

In order to achieve a valid data set, countries were grouped into 5 regions as shown in the map. South Africa has further been separated from Southern Africa as sample size allowed for this separation.

Percentage of responses captured, per region:

RegionNorth

AfricaWest Africa

Southern

AfricaEast Africa

South

Africa

Total Percentage 0.16% 0.94% 21.01% 24.90% 53.00%

North Africa

East Africa

West Africa

Southern Africa

South Africa

33

Emergence Growth Engagement ModelThe value of any survey data lies with the validity of its underpinning model and approach to what is being surveyed. This engagement survey is based on Emergence Growth’s engagement model, which has been validated over 7 years, from over 3,500 organizations. Our engagement model follows:

Work Outputs

• Teamwork

• Equipment

• Organizational support

• Performance Management

Employee Growth

• Learning & Development

• Career Paths

• Opportunities for growth

Total Reward

• Remuneration

• Benefits

• Incentives

• Recognition

• Performance related pay

People Philosophy

• Senior Leadership

• Relationship with manager

• Ongoing Feedback

Business Alignment

• Reputation / brand

• Employee Value Proposition

• People practices

• Values

Wellbeing .

• Work-life balance

• Work environment

• Cultural acceptance

• Social responsibility

Finding 1: Engagement Scores: Africa vs South African MunicipalitiesOverall Africa Engagement Scores

EngagedNot EngagedDisengaged

*This Engaged score

is approximately 2%

lower than last year

Overall South African Municipalities Engagement Scores

*This Engaged score

is approximately 5%

lower than last year

35

Employee Growth

Employee Growth refers to career development, training and succession planning within an organization.

Organizations who fail to provide career growth opportunities run the risk of lower employee engagement. By failing to implement

initiatives, such as Coaching and Personal Development Plans, organizations run the risk of losing high-performing talent and critical

skills. Attraction is a key organizational necessity within each organization in order to attract key skills in the market.

13%

19%

17%

13%

14%

29%

33%

37%

40%

30%

25%

27%

24%

24%

27%

10%

6%

6%

13%

10%

16%

10%

13%

6%

13%

8%

5%

3%

5%

6%

My organization offers good career opportunities to employeeswho are strong performers

My organization strongly supports the learning and developmentof its employees

My Manager encourages my personal development

I have received sufficient training to perform my role effectively

My organization allows me to regularly focus on my talents

Employee Growth

Strongly Agree Agree Slightly Agree Slightly Disagree Disagree Strongly Disagree

36

Reward and Recognition

Total Reward (Reward & Recognition) refers to all elements of pay, benefits and incentives utilized by an organization. These elements are

essentially used to remunerate employees related to skill, market stance and job level. Elements of remuneration also enforce

engagement, performance and recognition for the individual which in turn feeds an organization’s succession plan. Reward and recognition

refers to all elements of remuneration, benefits and incentives offered by an organization.

5%

3%

5%

16%

24%

37%

21%

35%

21%

27%

29%

11%

14%

11%

19%

22%

25%

10%

17%

11%

16%

13%

10%

My organization communicates our reward offering effectively

I receive appropriate recognition (beyond pay and benefits) for mycontributions

I am paid fairly for the contributions I make

The incentives here motivate me to perform at a higher level

Reward & Recognition

Strongly Agree Agree Slightly Agree Slightly Disagree Disagree Strongly Disagree

37

Importance Vs Satisfaction

0%

20%

40%

60%

80%

100%Performance Bonuses / Incentives

Performance related increases

Salary

Study Assistance

Long Service Awards

Car / Travel allowance

Mobile data connectivity

Medical Aid / HealthcareRetirement Fund

Cellphone allowance

Wellness / Employee Assistance Program

Life / Funeral Cover

Family responsibility / Compassionate leave

Maternity benefits

Token gifts (T-shirts, coffee mugs, etc.)

Importance vs Satisfaction of Benefits

Importance

Satisfaction

Respondents were also asked to rate their level of satisfaction in relation to various reward elements. The diagram below provides a description of the difference between the respondents’ level of satisfaction in relation to the importance of the various pay elements:

38

Employee Value Proposition (EVP) – WIIFM (What’s in it for me)• The values, conditions of employment and benefits that employers offer employees. • Used as a magnet to attract new employees & engage and retain existing employees

Benefits

Time Off

Holidays, annual leave

Insurance

Retirement

Education

Family Responsibility

Medical Aid /

Healthcare

Total reward

Salary

Increases and

promotions

Timeliness

Fairness

Job Evaluation system

Recognition

Career

Ability to progress and

develop

Training and education

Career development

Evaluation/feedback of

performance

Work

Environment

Personal

Achievements

Work- Life Balance

Understanding of

one’s role and

responsibility

Culture

Understanding

organizations’ goals

and plans

Leaders and Managers

Support (Management

Style)

Collaboration & team

spirit

Social Responsibility

Trust

Millennials and Benefits

Reward ElementImportance of Benefits Satisfaction of Benefits

Overall

Importance

Baby

Boomer

Generation

XMillennial

Overall

Satisfaction

Baby

Boomer

Generation

XMillennial

Performance related

increases96% 95% 96% 98% 47% 58% 46% 46%

Performance Bonuses /

Incentives95% 92% 94% 95% 51% 55% 47% 44%

Medical Aid / Healthcare 93% 86% 92% 90% 54% 65% 60% 51%

Long Service Awards 85% 91% 91% 95% 53% 65% 57% 66%

Salary 98% 97% 98% 98% 66% 65% 60% 54%

Study Assistance 91% 89% 93% 96% 62% 68% 67% 67%Mobile data connectivity 82% 65% 79% 78% 54% 50% 47% 42%

Car / Travel allowance 77% 76% 80% 76% 48% 52% 42% 42%

Retirement Fund 94% 95% 96% 97% 67% 65% 72% 67%

Wellness / Employee Assistance Program 89% 88% 93% 94% 64% 74% 77% 76%

Cellphone allowance 75% 65% 72% 69% 53% 58% 43% 42%

Life / Funeral Cover 84% 94% 92% 94% 63% 74% 71% 66%

Family responsibility /

Compassionate leave95% 97% 96% 98% 76% 70% 75% 75%

Maternity benefits 81% 83% 85% 92% 63% 67% 66% 72%

Token gifts (T-shirts, coffee mugs, etc.) 58% 79% 72% 76% 51% 65% 59% 58%

40