human capital_employee engagement
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Employee Engagement What it is all about ?
INTRODUCTION
A professor in a recent executive education program on leadership elicited a lot of laughs by
telling the following joke: A CEO was asked how many people work in his company: About
half of them!" he responded#$ After the session! several participants put a more serious face on
the problem when! while chatting! they bemoaned the fact that! in their organi%ation! a significant
number of people had mentally checked out#$
&uite clearly! CEOs and managers should be very concerned about a waste of time! effort and
resources in their organi%ations# 'he reason is simple: (f people are not engaged! how can these
same leaders attain those business objectives that are critical to improving organi%ational
performance)
E*+,O-EE E./A/E*E.' E0+,A(.E1
2Pleasure in the job puts perfection in the work2Aristotle
'his 3uote sums up in 4 words why leaders should be concerned with the 2happiness2 of their
employees at work# (f people feel valued! if they feel listened to! if they feel their work is
meaningful###then this will be reflected in their work#
This is what employee engagement is about.
Kahn 564478! who can be credited with conceptuali%ing as well as theoretically deriving the
dimensions of employee engagement in organi%ational studies! held that an employee can be
physically! emotionally or cognitively engaged# Kahnconceptuali%ed engagement as the
harnessing of organi%ational members" selves to their work roles"#
(n a study entitledDriving Employee Performance and Retention Through Engagement! the
Copoate !ea"eship Coun#il5977! p# xii8 defines engagement 2as the extent to which
employees commit;both rationally and emotionally;to something or someone in their
organi%ation! how hard they work! and how long they stay as a result of that commitment#2
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@AC'O= ,EA1(./ 'O E./A/E*E.'
tudies have shown that there are some critical factors which lead to Employee engagement!
5a%irani! 977D8 as shown in the diagram below:
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(E" 5(.'(''E O@ E*+,O-*E.' '1(E8 1(A/.O'(C 'OO,
'he diagnostic tool
ource: (E urvey! 977F
'he diagnostic tool can be used to derive organi%ation?specific drivers from attitude survey data#
(E"s findings suggest that many of the drivers of engagement will be common to all
organi%ations! regardless of sectorG however! some variability is likely! and the relative strength
of each driver is also likely to be contingent upon the organi%ation being studied#
*EA=E*E.' O@ E./A/E*E.'
'o measure employee engagement! companies need to ask for employee opinions and feedback
in multiple ways# tandardi%ed engagement metrics can be derived from employee opinion
surveys# 'hese can be used in conjunction with formal and informal meetings! employee focus
groups! and managerHsupervisor interviews! along with performance measures to continually
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assess progress toward employee engagement# (t is however important to keep in mind that
feedback taken and ignored is far worse than not taking it at all#
According to the /allup the Consulting organi%ation there are F different types of people:?
Engage"??2Engaged2 employees are builders# 'hey want to know the desired expectations for
their role so they can meet and exceed them# 'hey>re naturally curious about their company and
their place in it# 'hey perform at consistently high levels# 'hey want to use their talents and
strengths at work every day# 'hey work with passion and they drive innovation and move their
organi%ation forward#
Not Engage"???.ot?engaged$ employees tend to concentrate on tasks rather than the goals and
outcomes they are expected to accomplish# 'hey want to be told what to do just so they can do it
and say they have finished# 'hey focus on accomplishing tasks vs# achieving an outcome#
Employees who are not?engaged tend to feel their contributions are being overlooked! and their
potential is not being tapped# 'hey often feel this way because they don>t have productive
relationships with their managers or with their coworkers#
(#ti&ely Disengage"??'he 2actively disengaged2 employees are the 2cave dwellers#2 'hey>re
2Consistently against irtually Everything#2 'hey>re not just unhappy at workG they>re busy
acting out their unhappiness #'hey sow seeds of negativity at every opportunity# Every day!
actively disengaged workers undermine what their engaged coworkers accomplish# As workers
increasingly rely on each other to generate products and services! the problems and tensions that
are fostered by actively disengaged workers can cause great damage to an organi%ation>s
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O=CE: '
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E)*!O+EE EN,(,E)ENT *R(CTICE-
Engaged employees are not just committed. They are not just passionate or proud. They have
a line-of-sight of their future and on the organizations mission and goals. They are enthused
and in gear, using their talents and discretionary effort to make a difference in their
employers quest for sustainable business success.
'hese are the key findings of the 2! "tate of Employee Engagement research conducting by
Blessing Jhite! through interviews with
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)(RRIOTT INTERN(TION(!2 INC.
Company ;a#4goun"
*arriott (nternational (nc#! is a leading lodging company with nearly 9!477 lodging properties in
the nited tates and NI countries around the world# (ts heritage can be traced to a root beer
stand opened in Jashington! 1C in 649D#
As a leader in the competitive hospitality industry! *arriott understands the importance of
employee health and productivity# *arriott believes its associates are its greatest assetG and as a
leader in the service industry! *arriott knows that its success rests upon engaging those
associates# *arriott"s robust health benefits package seeks to engage associates by meeting the
needs of their families# ill Berger! ice +resident of *arriott"s
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'o educate beneficiaries on the importance of preventive care! *arriott designed a preventive
health education and communication campaign: Pnow -our .umbers#$ 'he program! launched
in 977D! encourages all beneficiaries to visit a primary care provider and be assessed for four key
health indicators: glucose level! blood pressure! lipids profile! and body mass index 5B*(8#
'hese four numbers give a snapshot of a person"s health status and can predict hisHher risk of
diabetes! cardiovascular disease! and obesity# *arriott developed the Pnow -our .umbers
program in order to encourage beneficiaries to take charge of their health! know their health
risks! and address chronic conditions as early as possible#
'he program has three objectives:
6# Educate beneficiaries on the importance of health assessmentG
9# *otivate beneficiaries to visit a provider for preventive careG and
F# Encourage beneficiaries to form a relationship with a primary care provider#
'he program was championed by the benefits department at *arriott"s corporate head3uarters in
Jashington! 1C# Beneficiaries were mailed an informational postcard and brochure! and
*arriott"s newsletter also included stories on the program#
'o ensure that program materials were consumer?friendly! *arriott followed its health literacy
guidelines:
Q
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each year they review the ## +reventive ervices 'ask @orce 5+'@8 recommendations and
American *edical Association 5A*A8 guidelines on clinical preventive services and set their
reimbursement algorithms accordingly#
Results
Because the program is so new! reliable outcome data is not yet available# (n a few years!
*arriott expects its claims data will show that the program led to an:
Q (ncrease in preventive care 5office visits! procedures! and medicationsHimmuni%ations8G
Q 1ecrease in E= visitsG and an
Q (ncrease in the number of associates who select a primary care provider and see that provider at
least once per year# Employee feedback has been positive# Associates like the way *arriott has
communicated the programG they feel it is easy to understand! straightforward! and actionable#
'hey particularly like the case?study approach that features the stories of real people who went to
the doctor! identified a risk or problem! and prevented serious illness through relatively simple
lifestyle changes#
Unanti#ipate" Challenges
As could be expected with any complex benefit change! *arriott encountered challenges in
administration and implementation# ill Berger notes! Administering the program has been a bit
challenging# @or years! co pays went up and up and now they are going away# (t"s a culture
change! not just for us and for our associates! but for the health plans and providers as well#$
*arriott instructs its beneficiaries on what to say and do when a provider balks at the R7?copay
for preventive services# Aetna! one of the first *arriott?sponsored plans to promote the Pnow
-our .umbers program! redesigned their standard beneficiary identification card# +reventive
service office visit co pay: R7$ is clearly marked on the front of the card# *arriott hopes that as
more employers adopt %ero cost?sharing policies for preventive care! health plans and providers
can resolve the administrative hurdles#
CostE%%e#ti&eness
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*arriott considered cost?savings and cost?offsets in its decision to launch the Pnow -our
.umbers program and the %ero cost?sharing policy! and expects to see a positive return on
investment in just a few years time#
Ne$t on the =oi'on
'he Pnow -our .umbers program is just one of many innovative benefit programs at *arriott#
Q (n .ovember! 977N! *arriott released a comprehensive! free smoking cessation program for
associates and dependents#
Q (n 977D! *arriott introduced a personal health record 5+
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9# Contract with health plans that are willing to support your healthcare strategies#
F# 1evelop a business case for investing in prevention and health promotion# se your own data
and look to the literature to estimate cost?savings#
# 1on"t forget about administration# ometimes the most difficult challenges are administrativeG
be sure to coach your plans to advise and educate providers and facilities on benefit changes#
T=E -ITU(TION IN INDI(
(ndia has a lot to cheerS 'he recent JorkAsiaresearch study5977N?977D8 by Jatson Jyatt
Jorldwide indicates that (ndia has the highest percentage of highly engaged workers at DIM in
Asia as compared to apan! which has the lowest employee engagement level at F4M#
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development! work environment! leadership! performance management! workHlife balance!
communication! compensation! benefits! and engagement#
Employee engagement is no more just about the employee"s intent to leave# 'he employee"s
commitment to the organi%ation and motivation to contribute to the organi%ation"s success plays
a significant role# 'he top three drivers in (ndia are trust in senior management! how the
organi%ation is perceived for customer service and fair pay# urprisingly! from an (ndian context!
the least valued factors in the continuum were benefits! compensation and performance
management#
(n (ndia! having a long?term career is considered positive and stable# @re3uent job changes are
viewed negatively and therefore the high scores around the commitment count are in line with
the mindset#
(nternal communication and
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@or Britons and Americans it is all about respect# @or workers in @rance and (ndia it is the type of
work they are doing# @or /ermans it is who they work with# And for the apanese! it is pay#
Employee engagement! it is clear! takes many different forms around the world#
As rightly said by *r# ohn *c@arlane! A.L CEO! .o individual chief executive or divisional
manager can make each of the millions of the transactions we do with customers every day live
up to our brand promise# Only a culture of fully engaged employees can do that#$
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