hria 2014 conference presentation - employee engagement
DESCRIPTION
The importance of employee engagement and building executive and senior management buy into effective employee engagement programs. Focus on using Employee Engagement survey to drive positive workplace change.TRANSCRIPT
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Show 50s-80s and now
Meaning has changes
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3
23% to 67% expect meaningful work
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Why? 5
6
7
1 in 5
Human Capital – Top CEO Challenge Globally for 2014
http://www.ft.com
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Human Capital #2 – Top CEO Challenge USA for 20149
Engagement is even starting to be regulated
Excellent Care for All Act,
became law in June of 2010
Satisfaction is Not the Same as Engagement
ENGAGED
EMPLOYEES feel a sense of:
Focus Urgency
Intensity
Enthusiasm
Persistence Adaptability
The focus is ondesiring to “give”
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TalentMap’s Focus
Heart Hands
Logical Emotional Behavioural
Head
Employee engagement is a heightened emotional and intellectual
connection that an employee has for his/her job, organization, manager, or
coworkers that, in turn, influences him/her to apply additional
discretionary effort to his/her work.
Career & Financial Goals Achieved
Values Align with Peers,Management and Leaders
DiscretionaryEffort
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Engagement Matters
Revenue
Customer Satisfaction
Safety
Productivity
Attendance
Retention
Public Confidence
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SERVICE• Employees’ customer service productivity scores and their employee engagement scores
had a correlation of .51. (Source: Linking People Measures to Strategy. The Conference
Board)
• Companies with high employee engagement scores had twice the customer loyalty
(repeat purchases, recommendations to friends) than companies with average employee
engagement levels. (Source: Are They Really ‘On the Job’?, Pont)
• In a major department store chain, customers scored higher in customer engagement
measures when they were serviced in departments with employees who had high levels
of employee engagement. (Source: Getting Engaged, Bates)
• Teams classified as “high performance zone for engagement” had a 37% net promoter
score (NPS) versus 10% NPS for teams “outside of high performance zone for
engagement.” (Source: Aon Hewitt European Manager Survey 2011. Aon Hewitt)
• Morrison Management Specialists increased client satisfaction by 1 percentage point for
every 2 percentage point increase in employee engagement (Source: Engagement Leads
to Growth at Morrison, Talent Management)
SALES• Fabick CAT improved “percent of industry net sales” by 300% (Source: A Caterpillar
Dealer Unearths Employee Engagement, Gallup Business Journal)
Engagement Matters
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QUALITY• Unnamed Fortune 100 manufacturing company reduced quality errors from 5,658
parts per million to 52 parts per million. (Source: Employee Engagement: The Key
To Realizing Competitive Advantage, Development Dimensions International)
SAFETYMolsonCoors, it was found that engaged employees were five times less likely than
non-engaged employees to have a safety incident and seven times less likely to have
a lost-time safety incident. (Source: Effective practice guidelines: Employee
engagement and commitment. SHRM)
RETENTION & ABSENTEEISM
…
REVENUE, PROFIT AND SHAREHOLDER RETURNS
…
ROLE OF FRONT-LINE MANAGERS…
Engagement Matters
Impact on the individual
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University of Canberra: a job that we hate is
as bad for our health sometime worse than
not having a job at all
University College of London 2011
not recognized at work have more
heart disease
Whitehall study: Sr. Exec live longer than lower level employees,
not a small discrepancy
Boston College child’s sense of well being
effected by parents that enjoy their work
Engagement Matters – The Magic
How To Respond via Texting
1. Standard texting rates only (most free - worst case US $0.20)
2. We have no access to your phone number
3. Capitalization doesn’t matter, but spaces and spelling do
Tips
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19
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Why No/Limited Executive Buy In? 21
1. Don’t think it can be
measured.
3. Don’t get presented with a
clear business case for engagement
2. Don’t believe its
all that important.
+/- Client A
2012*
+/- TM
Benchmark
It Absolutely Can Be Measured Through Proxy
3
1
4
4
1
2
5
13
6
9
17
15
13
18
84
93
88
79
84
84
77
0% 20% 40% 60% 80% 100%
Overall Engagement
I am proud to tell others I work for myorganization.
I am optimistic about the future of myorganization.
My organization inspires me to do mybest work.
I would recommend my my organizationto a friend as a great place to work.
My job provides me with a sense ofpersonal accomplishment.
I can see a clear link between my workand my organization's long-term
objectives.
% Frequency
Unfavourable Neutral Favourable
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Data is rounded to the nearest whole number
* Number indicates % Favourable score
+1 +4
+2 +4
+8 +8
-2 +2
+5 +10
-3 -1
-2 +1
Not only Engagement but the Drivers can be measured
#2 Innovation
#1 Teamwork
#3 Professional
Growth
Employee
Engagement
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Employee
Engagement
InnovationCustomer
Focus
Work/life
Balance
Information &
CommunicationsTeamwork
CompensationWork
Environment
Performance
Feedback
Professional
Growth
Immediate ManagementOrganizational Vision Senior Leadership
Dependent
Variable
Independent
Variables
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And Improved Over Time 24
56%
58%
60%
62%
64%
66%
68%
70%
72%
74%
76%
78%
80%
2006 2007 2008 2009 2010 2011 2012
% F
avo
ura
ble
Engagement Score of 500 person Technology Company
Why No/Limited Executive Buy In? 25
1. Don’t think it can be
measured.
3. Don’t get presented with a
clear business case for engagement
2. Don’t believe its
all that important.
Talk To Him/Her In Their Terms 26
1. Data – statistics
2. Link engagement to business objectives
3. Show case studies of competitors
4. Use split samples
5. Link engagement to his/her personal
goals & objectives
6. Leave a legacy
Service Profit Chain 27
Internal
Service
Quality
Employee
Engagement
Employee
Retention
Employee
Productivity
External
Service
Value
Customer
Satisfaction
Customer
Loyalty
Revenue
Growth
Profitability
• Workplace design
• Job design
• Employee selection and development
• Employee rewards and recognition
• Tools for serving customers
• Service concept:
results for
customers
• Service designed and delivered to
meet targeted customers’ needs
• Retention
• Repeat business
• Referral
28High-engaged stores out-performed the other stores in almost every aspect.
•Met or exceeded quarterly financial targets 40 percent more often;
•Customer loyalty increased by 5.3 percent;
•4.5 percent higher technician productivity
•60 percent lower technician related re-work;
•Three times fewer accidents reported/”
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Wonder Drug For Customer Satisfaction
Chemotherapy and breast cancer survival: r = .03
Antibiotics and the cure for pediatric ear pain: r = .08
Smoking and incidence of lung cancer within 25 years: r = .08
Effect of ibuprofen on pain reduction: r = .14
Alcohol and aggressive behavior: r = .23
Sleeping pills and improvement in insomnia: r = .30
Viagra and improved male sexual functioning: r = .38
Employee engagement and customer satisfaction: r = .43
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Why No/Limited Executive Buy In? 31
1. Don’t think it can be
measured.
3. Don’t get presented with a
clear business case for engagement
2. Don’t believe its
all that important.
CEO Needs a Business Case
Questions they have
What is driving engagement in our
organization?
How does engagement impact our bottom
line?
How do we measure up with competitors?
What are my employees saying, and why
does it matter?
Why is the employee engagement initiative
being conducted—what the ultimate purpose?
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Typical CEO’s Questions
Who will see the results?
How will they be used?
How will the results be presented
to senior, middle, and frontline leaders (large group sessions,
webinars, department meetings).
How will leaders be trained
to interpret results and facilitate the action planning process
What types of developmental resources will be available to facilitate
the completion of action plans.
How will confidentiality will be handled
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More Time Building The Business Case
1. Prepare for Action
2. Develop Questionnaire
3. Pre-survey Communication
4. Deploy Survey5. Analyze,
Interpret & Report
6. Discuss, Clarify & Plan
7. Communicate & Act
Training/ Workshops
Action Planning Framework
Focus Groups & Interviews
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Project Logistics
Executive & Management Buy In
Build a Clear Business Case 35
1.Executive Summary
2.Problem Statement
3.Analysis
4.Solution Options
5.Preferred Solution
6.Cost-Benefit Analysis
7.Recommendations
8.Implementation Plan
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1. Highly flexible
and fluid workforce,
with high turnover
2. Stable workforce
with low
engagement and
low productivity
Help Your CEO Connects the Dots 37
Logical Connection
The extent to which
employees believe that
they can achieve their
goal (career, financial,
developmental)
Emotional Connection
The extent to which
employees feel their
values align with the
values of their jobs,
managers, teams, or
organisations.
Two commitment types Four focal
points of
commitment
Day-to-
day work
Team
Direct
manager
Organisation
Discretionary effort
Employee willingness to go
above and beyond the call of
duty, such as helping others
with heavy workloads,
volunteering for additional
duties, and looking for ways to
perform the job more
effectively.
Intent to stay
Employee desire to stay with
the organisation, based on
whether they intend to look for
a new job within a year,
whether they are frequently
thinking of quitting, whether
they are actively looking for a
job, or have begun to take
tangible steps like placing
phone calls or sending out
résumés.
The outputs of
commitment
Performance
Retention
90% of engaged employees say they are
less likely to leave the
organization Suggestion: you need to help
your leaders to ‘get it’
71% of engaged staff
know what the customer
wants
Help Your CEO Connects the Dots
Engaging Workplace
Compensation
Work Environment
Performance Feedback
Professional Growth
Work/Life balance
Teamwork
Communication
Innovation
Customer Focus
Immediate Management
Organizational Vision
Senior Leadership
Engaged Attitudes
Proud
Focused
Optimistic
Determined
Resilient
Flexible
Connected
Motivated
Inspired
Emotionally Invested
Engaged Behaviours
Goes Extra Mile
Persistent
Helpful
Collaborative
“Can-do” Approach
Takes Initiative
Ambassador
Business Results
Employee Retention
Stakeholder Satisfaction
Improved Productivity
Customer Satisfaction
Growth
Risk Mitigation
39Help Your CEO Connects the Dots
40Show your CEO The Complete Plan,
41Project On Track for June Deployment
May Jun Jul Aug
Prepare for Action
Questionnaire Design
Pre-Survey
Communication
Deployment, Initial
Analysis and Reporting
Leadership
training/Support
Discuss Clarify and
Report
Steering Committee
LoB/
LoB
Company-wide
Action Teams
LoB
Local Action Teams
FG
LoB
Steering Committee Chair (member of
Executive Committee)
FG
Steering Committee Conceptual Framework
Executive
Committee
Cross-unit Action
Teams
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Governance for Engagement Improvement
CEO
Executive Committee
Survey Respondents
Focus Group Participants
Local or Company Action Plan Teams
Steering Committee
Feedback & Action Plans Cascade Up
Impact on
engagement
Action Plan
Approval /
Implementation
Input &
Feedback
Action
Plans
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http://www.talentmap.com/hria2014 45
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