Employee engagement strategies and practices

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A report by i4cp into the strategies used to deliver high employee engagement at high performing organisations

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  • 1.GlobaEmployee Engagement:Strategies & PracticesAn i4cp ReportStrategy Leadership Talent Culture Market

2. Employee Engagement: Strategies & PracticesThe five domains ofhigh-performance organizationsAbout i4cpi4cp focuses on the people practices that make high-performance organizations unique. Years of researchmake it clear that top companies approach their workforces differently. At i4cp, we work with our network oforganizations to: Reveal what high-performance organizationsare doing differently. Identify best and next practices for all levelsof management. Provide the resources to show how workforceimprovements have bottom-line impact.Through our exclusive, vendor-free network in which peerscollaborate to drive strategic research and share tools andinsights i4cp provides a unique, practical view of how humancapital practices drive high-performance.Visit i4cp.com to learn more.About this reportHaving an engaged workforce has a high correlation with market performance. This fact drives high-performance organizations to manage engagement much the same as they measure and monitorfinancial and operational performance. By combining data with on-the-ground initiatives from some ofthe worlds top organizations, this report clearly shows where the critical connections between employeeengagement and business performance should be made. It also provides actionable strategies forimplementing the practices that will put your organization on the road to a more engaged andproductive future.About the Market Performance Index (MPI)i4cps Market Performance Index, or MPI, is based on self-reported ratings of organizationalperformance in four key areasmarket share, revenue growth, profitability and customer satisfactionas compared to the levels achieved five years previously. The average of the four ratings determinesMPI score. 3. ContentsAligning culture, strategy and performance ...................................................................................................................1Promote a culture in which employees understand organizational goals and are empowered toachieve them .......................................................................................................................................................................2Trust is the foundation of engagement at 3M..........................................................................................................3Measure the impact of engagement on the business...................................................................................................4Rio Tinto links engagement to business results ......................................................................................................6Include engagement in managers performance reviews............................................................................................7Jack in the Box links engagement to profits.............................................................................................................8Ensure prompt, focused follow through by managers ..................................................................................................9Conclusions and recommendations.............................................................................................................................. 10Recommendations for conducting employee engagement surveys ................................................................. 1010 Steps for increasing employee engagement ................................................................................................... 11Authors and contributors ................................................................................................................................................ 15References ........................................................................................................................................................................ 152013 Institute for Corporate Productivity (i4cp)Use of all results, analysis and findings requires explicit permission from i4cp. 4. www.i4cp.com Page 1 | ProprietaryTime-to-full-productivityEmployee Engagement: Strategies & Practices2013 Institute for Corporate Productivity (i4cp)EXECUTIVE SUMMARYAligning culture, strategy and performancei4cps research on employee engagement confirms that in high-performing organizations (HPOs) engagementis much more than a periodic survey followed by activity-planning. Engagement is about aligning culture,strategy and performance, and re-thinking the ways in which these connect. It is the result of a series ofactivities that need to be embedded into every step of theemployee life cycle process from the employer brandportrayed, recruiting and onboarding, to leadership, learningand development, and reward and recognition. A criticalelement of this alignment is a culture that makes engagementthe responsibility of frontline managers and top leadershiprather than an activity wholly owned by human resources.Having an engaged workforce has a high correlation with market performance. HPOs excel at practices thatincrease engagementfar out-performing lower-performing organizations (LPOs). These practices include: Maintaining cultures in which employees understand organizationalgoals and are empowered to achieve them. Measuring the impact of engagement on the business. Including engagement in manager performance appraisals anddevelopment plans. Emphasizing prompt and focused follow through on engagement issueswith frequent and regular communications on the impact to the business.i4cps 2012 survey on employee engagement revealed that 35% of HPOs actively measure and regularlymonitor the impact of engagement on the business and act quickly to respond compared to 21% of lowperformers. HPOs manage engagement much the same as they measure and monitor financial andoperational performance. The most commonly used metrics for analysis are customer satisfaction, profitabilityand revenue growth, with HPOs much more likely to use these metrics in all three areas.HPOs describe difficulty defining engagement across global workforces, identifying the right metrics to use indifferent markets, sustaining focus on engagement during difficult periods, and effectively tackling the action-planning elementmuch the same as LPOs. However, HPOs persevere through these issues to realize resultsby recognizing that not following up in meaningful ways can be more counter-productive than not surveyingemployees at all.Some organizations have yet to begin to connect operating and financial information with employeeinformation. The good news is that it can begin with small, incremental steps working with basic metrics thatcan be refined over time. Making those critical connections between employee engagement and businessperformance may be challenging at first, but prove well worth the investment.Engagement is aboutaligning culture, strategy andperformance, and re-thinking theways in which these connect. 5. Employee Engagement: Strategies & PracticesProprietary | Page 2 2013 Institute for Corporate Productivity (i4cp) www.i4cp.comPromote a culture in which employees understandorganizational goals and are empowered to achieve themEmployees in high-performing organizations understand their companys business strategy and operatinggoals, and most importantly, what they need to do to contribute to their success. Equally important is that theygenuinely wantand are able totake ownership of challenges and find solutions.HPOs recognize the importance of creating andsustaining an environment that aligns their businessobjectives with a culture that empowers theiremployees. HPOs also use employee surveys as onlyone method of identifying how well they are doing.Additionally, they monitor and manage performance,individually and collectively, to ensure it is successfuland aligned to the key business performanceobjectives.Over two-thirds of respondents from high-engagementorganizations (HEOs) agreed to a high or very highextent that there is a clear understanding in theirorganization of what the company stands for, what itwants to achieve and how employees contribute tothat success.This reinforces the importance of clear and consistentcommunication by all levels of leadership throughoutthe organization. Messages employees receive aboutthe organization and their contributions to plans andstrategies are absolutely critical to engagement.When asked about the extent to which they agreed with the statement that their organizations leadershiphelps employees see and feel how they are contributing to the organizations success and future, over a thirdof the overall (aggregate) respondents agreed to a high or very extent, but respondents from HEOs (47%) weretwice as likely to agree as those from LEOs (21%). This finding had significant correlations with both marketperformance (r =.21**) and engagement (r=.42**).High-Engagement Organizations (HEOs)Respondents to the survey indicating >70%of their workforce is highly engaged(96 of 334 survey respondents).Low-Engagement Organizations (LEOs)Respondents to the survey indicating

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