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Tele2 NL on ESS.

The Power of Indexes

and How ESS Helped

us Overcome High

Employee Turnover

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Quick One:

Can you have high employee satisfaction and a high employee turnover

at the same time?

Can you have high employee satisfaction and very few ambassadors in

your company?

Can you have a low score on leadership and low employee turnover?

Do we agree that high employee turnover and very few ambassadors in

your company hurt the business?

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What is remarkable about these numbers?

5.3

>32%

-18

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So: “Yes We Can”

5.3 = Employee Satisfaction 2007 on a

scale of 7

>32% = Employee turnover 2007

>40%<1year tenure

-18 = Nett Promotor Score 2007

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The Compelling Business Reason

Turnover is averagely estimated at

SEK 304.685,- a head

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The Compelling Business Event

Turnover is averagely estimated at

SEK 304.685,- a head

So when 1/3 of 800 employees leave a year

costs are approaching 80Mio SEK !

An attainable 30% improvement yields 24Mio

SEK cost savings.

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The Compelling Business Reason

Turnover is averagely estimated at

SEK 304.685,- a head

So when 1/3 of 800 employees leave a year

costs are approaching 80Mio SEK !

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Reasons for High Turnover

Obvious aftermath of acquiring Versatel

Analysis showed Three reasons why people leave the company

Number 1: LACK OF ATTENTION BY MY MANAGER

Number 2 & 3 respectively: Perspective & Salary

Number 2 & 3 are issues that many companies deal with

Salary is easy to copy so not a differentiator one can compete on and

not one we will and want to compete on (plus hardly a reason why

people leave in their first two years of service)

In terms of importance the survey group weighted the number 1 reason

with 60% and 2&3 respectively with 20% and 20%.

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Low Performance on LSI & NPS

In addition to high employee turnover and its indicators

Low Performance on LSI:

Overall 56 (/100)

50% of managers (70) <green treshold score of 63

NPS of -12

Overall a lot of ‘yellow’

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LSI is „King‟

We decided to embark on a mission

(1) Increasing overall LSI

(2) Increasing individual LSI

(3) Positive NPS

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The Measures Taken

All managers to go through Situational Leadership Training

All managers to organize ESS workshops

All managers to have an individual LSI target (part of bonus)

An intensive Corporate Communications campaign on ‘Ambassadors’

In interim Barometer survey yielding interim LSI / NPS scores

CEO organizing ‘All Mgrs’ meeting with LSI themes

Tele2 Learning Center launching ‘LSI development paths’

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LSI development paths

Development path 1

Communicate goals & Performance

Development path 2

Coaching & Feedback

Development path 1

Communicate goals & Performance

Development path 3

Handling Conflicts

Development path 4

Building Trust

Development path 5

Team Communication

Development path 2

Coaching & Feedback

Has your immediate manager clearly communicated the goals for

your work group?

Do you regularly get to know how you are doing in your work?

Do you think your performance review talks are productive?

Do you think your immediate manager can handle conflicts?

Does your immediate manager show you respect?

Do you get sufficient information from your immediate manager?

Do you think your work group is managed in a satisfactory way?

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Space for text

More text

- More text

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What is remarkable about these numbers?

5.4

<15%

+12

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Question

What do you think ‘leavers’ indicate now as the

number one reason for their exit?

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Question

What do you think ‘leavers’ indicate now as the

number one reason for their exit?

“Perspective”

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Necessary Conditions for Succes

Compelling Business Reason

CEO that firmly believes in ESS but more importantly

in the indexes (in that he doesn’t let his direct reports

get away with ‘circumstantial’ indicators’)

Structural embedding leaving very little room for

escape

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