EMPLOYEE ENGAGEMENTIS IT A POSSIBILITY OR A PIPE DREAM?

Cindy Gordon CPA, CA (Canada License only) CPCCCulture Shock Coaching, LLC

© 2014 Culture Shock Coaching, LLC

What Engagement is Not

Happiness – engaged employees are considered happy at work, however happy employees are not necessarily engaged

Satisfaction – a satisfied employee may show up at work without a complaint but they won’t likely go the extra distance for the company

What is Engagement?

The emotional commitment an employee has to their organization and its goals resulting in the use of discretionary effort

Organizations with high employee engagement experience

65% greater share-price 26% less employee turnover 100% more unsolicited employment

applications 20% less absenteeism 15% greater employee productivity Up to 30% greater customer satisfaction levels(2013 survey by the Queen's School of Business - Centre for Business

Venturing (QCVB) and Aon Hewitt)

WHAT’S IN IT FOR ME?

W I I F M

Can you relate?

Putting a dollar value on the impact of engagement on productivity

The Financial Impact

Categorize your workforce Fully engaged employees are passionate about their work and

the organization; will do whatever it takes to deliver the results; perform beyond expectation; look for new opportunities to personally and professional grow

Engaged employees are solid, dependable performers; focused on deliverables, projects and individual responsibilities; master their responsibilities but don’t expand outside of it

Somewhat engaged employees are selective about where they put their energy; deliver when they have to; are masters at distracting others; benefits they receive from the organization are the main reasons they stay

Disengaged employees only work when they have to; perform at below expected levels; spread negative feedback about the organization and leaders

Financial Impact

ABC Company20% highly engaged35% engaged35% somewhat engaged10% disengagedAnnual payroll of $1,000,000

(Allocation based on Jack Welsh theory of employee engagement)

Financial Impact – Scenario 1Level of Engagement

% within Organization

(A)

% Performance Level

(B)

Performance Impact(A x B)

Highly 20% 125% 25%

Engaged 35% 100% 35%

Somewhat 35% 75% 26%

Disengaged 10% 50% 5%

CURRENT PERFORMANCE POTENTIAL (C) 91%

% OF LOST PERFORMANCE (100% – C) 9%

TOTAL ANNUAL WAGES $1,000,000

VALUE OF LOST PRODUCTIVITY DUE TO ENGAGEMENT

$90,000

Implementing Employee Engagement Strategies

Shift of engagement level within the engaged and someone engaged population

20% of the 35% engaged employees become highly engaged (shift of 7%)

20% of the 35% somewhat engaged employees become engaged (shift of 7%)

Improvement on Productivity

Level of Engagement

% within Organization

(A)

% Performance Level

(B)

Performance Impact(A x B)

Highly 27% 125% 34%

Engaged 35% 100% 35%

Somewhat 28% 75% 21%

Disengaged 10% 50% 5%

CURRENT PERFORMANCE POTENTIAL (C) 95%

% OF LOST PERFORMANCE (100% – C) 5%

TOTAL ANNUAL WAGES AND SALARIES $1,000,000

VALUE OF LOST PRODUCTIVITY DUE TO ENGAGEMENT

$50,000

VALUE OF PRODUCTIVITY IMPROVEMENT $40,000

How many would be people?Assuming -15 employees:

Scenario 1 Scenario 2Highly engaged 3 4Engaged 5 5Somewhat engaged 5 4Disengaged 2

2 Total employees 15 15

Creating a high engagement environment

How To….

Corporate culture

Corporate culture represents the behaviors and beliefs of what the company stands for

The perceptions of the employees about culture will impact their level of engagement

“You can be the architect of your culture or you can be the victim of it” – Len Gaby, Sleep America

Key Components of Engagement

Processes - Do the processes in your organization enable your employees to effectively get their work done easily?

Tools - Does each employee have the tools available to allow them to get their job done in an efficient manner?

People - How well do we know our people and what motivates them?

Employee Needs

Adapted from Dr. Abraham Maslow’s Hierarchy of Needs

Security and Safety

Emotional – trust, threat of job loss, passive aggressive behavior, immoral or illegal activity

Physical – physical abuse, threat of injury, limited access to premises by stranger

Financial Security

Salary – wages are perceived as fair in relation to responsibilities, peers and market

Benefits – are benefits provided relevant to the employee

Relationship and Belonging

People don’t leave companies, they leave bosses

Relationships with peers vs direct boss vs senior leader

Type of communication – does the employee feel heard and how does boss react to their feedback?

Recognition

Verbal and material recognition that shows a direct acknowledgement of a person

Organizations with sophisticated recognition practices are 12 times more likely to have strong business outcomes. (Bersin by Deloitte, The State of Employee Recognition, 2012)

When companies spend 1% or more of payroll on recognition, 85% see a positive impact on engagement.  (SHRM/Globoforce Employee Recognition Survey, 2012)

Personal Growth and Fulfillment

Understanding the “WHY” of the business

http://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action

Requires the codification and consistent modelling of a conscious corporate culture (mission, values, behaviors)

Employee Engagement Strategies Create strategies based on employee

needs

Don’t focus on one size fits all

Create strategies that align with your intended corporate culture

Take-Aways?

EMPLOYEE ENGAGEMENT IS POSSIBLE!