people engagement - pmbs.ac.idpmbs.ac.id/ibtalk/files/2._materi_presentasi_suryantoro_waluyo.pdf ·...
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PEOPLE ENGAGEMENT
brief theory & practices
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What Scholars has Said?
What Survey has Found?
Hows the Practice?
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What Scholars has Said?
What Survey has Found?
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Employee engagement has become a top business priority for
senior executives. In this rapid cycle economy, business leaders
know that having a high performing workforce is essential for
growth and survival. They recognize that a highly engaged
workforce can increase innovation, productivity, and bottom line
performance while reducing costs related to hiring and retention
in highly competitive markets.
But while most executives see a clear need to improve employee
engagement, many have yet to develop tangible ways to measure
and tackle this goal. However, a growing group of best-in-class
companies says they are gaining competitive advantage through
establishing metrics and practices to effectively quantify and
improve the impact of their engagement initiatives on overall
business performance.
71% - Employee engagement as very
important to
achieving overall
organizational
success
72% - recognition given for high
performers as
having a significant
impact on employee
engagement
24% - employees in their organization
are highly engaged
Based on survey
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Employee engagement has become a top business priority for
senior executives. In this rapid cycle economy, business leaders
know that having a high performing workforce is essential for
growth and survival. They recognize that a highly engaged
workforce can increase innovation, productivity, and bottom line
performance while reducing costs related to hiring and retention
in highly competitive markets.
But while most executives see a clear need to improve employee
engagement, many have yet to develop tangible ways to measure
and tackle this goal. However, a growing group of best-in-class
companies says they are gaining competitive advantage through
establishing metrics and practices to effectively quantify and
improve the impact of their engagement initiatives on overall
business performance.
71% - Employee engagement as very
important to
achieving overall
organizational
success
72% - recognition given for high
performers as
having a significant
impact on employee
engagement
24% - employees in their organization
are highly engaged
engagement
has become Top
business priority
highly engaged
workforce can increase
innovation, productivity,
many have yet to
develop tangible ways to
measure and tackle
Based on survey
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71% - Employee engagement as very
important to
achieving overall
organizational
success
72% - recognition given for high
performers as
having a significant
impact on employee
engagement
24% - employees in their organization
are highly engaged
ASPECT RESPONSE
High level of customer service 80%
Effective communications 73%
High level of employee engagement 71%
Strong executive leadership 71%
Efficient productivity 68%
Continuous quality improvement 59%
Ability to innovate 59%
Strong sales and marketing capabilities 58%
Factors Most Likely
to Bring Success
Based on survey
ASPECT RESPONSE
Recognition given for high performers 72%
Individuals have clear understanding of how job contributes to strategy
70%
Senior leadership continually updates/communicates strategy
70%
Business goals communicated company wide and understood
69%
Individual Staff goals aligned with corporate goals 67%
Assessments and performance reviews aligned with corporate goals
64%
Some or all staff pay linked to corporate goal achievement 54%
Training and development organized around corporate goals
52%
Most Impactful
Employee
Engagement Drivers
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GALLUP SURVEY
Identify
Strengths
The Right
Fit
Great
Managers
Engaged
Employees
Engaged
Customers
Sustainable
Growth
Real Profit
Increase
Stock
Increase
The Gallup Path
Focus on strengths
ability to provide
consistent, near
perfect performance
in a given activity of
every employee
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99th percentile of Gallup engagement database have nearly 5x of having
above average performance at their jobs as those in the 1st percentile.
Compared with bottom quartile business units, top quartile units have;
-12% higher customer metrics
- 18% higher productivity
-16% higher profitability
- 37% lower absenteeism
- 25% lower turnover (in high turnover organizations)
- 49% lower turnover (in low turnover organizations)
- 27% less theft
- 49% fewer safety incidents
- 60% fewer product defects
199 research studies
across 152 org.
in 44 industries
in 26 countries
32,394 work units
955,905 employees
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GALLUP SURVEY
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53%
28%
19% not engaged
engaged
activey disengaged
Engaged best colleagues, creative force, performance
Not Engaged just here, killing time, thinking about lunch break, dont care
Actively Disengaged there to destroy, exhaust managers, negativity
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GALLUP SURVEY
Understand
employees who are
sitting in
organizations
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High Engagement = Individual Behavior + Organizational Conditions
Individual Behavior Organizational
Conditions
Sustainable
High Engagement
Take primary
responsibility for
their own
engagement
Feels the
least entitled
Engage customers
Remain highly
engaged almost
everywhere
Apply six
behavioral drivers:
connect, shape,
learn, stretch,
achieve, contribute
HOW ARE HIGHLY ENGAGED EMPLOYEES DIFERENT?
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Hay Group Research
- Clear & Promising direction
- Confidence in Leaders
- Quality & Customer Focus
- Respect & Recognition
- Development Opportunities
- Pay & Benefits
- Performance Management
- Authority & Empowerment
- Resources
- Training
- Collaboration
- Work, Structure & Process
Drivers
Employee Engagement
- Commitment
- Discretionary Effort
Employee Enablement
- Optimized Roles
- Supportive Environment
Employee
Effectiveness
Productivity
Financial
Performance
Attraction &
Retention of Talent
Customer Loyalty
Innovation
Enhanced Corporate
Reputation
Employee Effectiveness Framework
not only to
motivate but also
to enable employees
to channel extra
efforts productively
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Hay Group Research
DETACHED EFFECTIVE
INEFFECTIVE FRUSTRATED H
igh
L
ow
Em
plo
ye
e E
nab
lem
en
t
Employee Engagement
High Low High performers motivation contribute to ability to be
successful
Aligned with organization
directions, but held back by roles
that dont suit them
Suit with the roles and
environments, but the
engagement levels insufficient
Struggle with their
job roles,
Lack of enablement for the employee who is engaged
may be a bigger problem than
the lack of engagement for the enabled employee
Need to take action on this part; lack
of training, inefficient workflow, poor
communication, inadequate
performance feedback
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not only to
motivate but also
to enable employees
to channel extra
efforts productively
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Career development is a critical driver for getting and keeping employee, also base salary and work location
ATTRACTION
Base salary Work location
Career opportunities Learn new skills opportunities
Healthcare & wellness benefits
RETENTION
Base salary Relationship with Manager
Career advancement opportunities
Retirement benefits Work location
23%
42%
35%
Disagree
Agree
Neutral
I have to join another organization in order to advance to a job at a higher level
87% high performer 63% age under 40 49% willing to relocate globally
Towers Watson
Survey
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What managers believe about reasons employees leave and
why employees say they leave?
11%
89%
What Managers Believe
Other Reasons
More Money
12%
88%
What Employees Say
More Money
Other Reasons
19%
30%
51%
Employee Engagement Survey Results
Actively Engaged
Engaged
Disengaged
Saratoga &
Gallup
Survey
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Being passed over for promotion Realizing that the job is not as
promised Transfer to undesired different
role Having the hiring boss replaced by
new boss the employee doesnt like
Being assigned to a new region
Being asked to do something unethical
Learning that the company is
doing something unethical
Earning enough money to retire or
pursue new life choice
Favoritism in organization
One paid higher than others, but
less responsibilities
Unfair promotion
Attitude of co-worker or boss
Receiving sudden outside
job offer
Ideas not welcomed
Getting much more complicated
work process Excessive workload
Disagreeing with the boss
Having conflict with co-worker
Receiving low or no pay increase
Events That
Trigger
Employee
Disengagement
Push Factors?
Pull Factors?
Inadequate benefit
Long working hours
No career growth clarity
Poor communication
Lack of teamwork
Unfair pay increases
Too many changes
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Many managers dont care or notice if their people are bored or unchallenged
Many managers dont delegate enough to make jobs more interesting or
challenging
Employees do not know their own strengths and the kind of work that would fit
them best
Many organizations have no way of effectively assessing the talent of their
employees
Employees are reluctant to discuss their dissatisfaction with their managers
Many jobs are so overly defined and narrowly drawn that almost anyone placed
in those jobs would be underemployed
Managers are in such a hurry to hire that they end up just hiring warm bodies
Some organizations are simply inept or oblivious when it comes to evaluating
talent and matching people to the right job
For many managers, helping their employees grow and use new talents is not a
high priority
Employee
testimony on
routine
relationship
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Hows the Practice?
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Engagement Drivers & Indicators
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CULTURE
Leadership Behavior
Living Values
Transparency
Communication
Employee Survey
Work Life Balance
Corporate Social Responsibility
DEVELOPMENT
Learning Concept & Program
Succession Plan
Career Plan
Promotion Ratio
External Hiring
Internal Placement
Job Rotation
ORGANIZATION
Recruitment process
Job Design
Turnover Ratio
Productivity Ratio
Reward System
Business Performance
Competitor Analysis
Job Profile
Service Year Average
HR Business Partner
RECOGNIZE
UNDERSTAND
SENSITIVE
CONSISTENT
FOLLOW UP
REVISIT
REVIEW
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What Might Work?
RECOGNIZE
UNDERSTAND
SENSITIVE
CONSISTENT
FOLLOW UP
REVISIT
REVIEW
CLEAR EMPLOYEE VALUE PROPOSITION?
REWARD COMPETITIVENESS?
EMPLOYEE SURVEY?
ANALYTIC CLIMATE REVIEW?
WHO ARE COMPETITOR?
ORGANIZATION DESIGN REGULAR REVIEW?
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FINANCIAL RECOGNITION WORK PROCESS
Structured Reward System
Transparent Reward Systems
Salary Range
Differentiate Performers
Performers to Median
Incentives/Bonus
Long-term Incentives
Share Options
Work-Life Balance
Learning Environment
Career Development
Mentoring/Coaching
Routine gathering
Family gathering
Performance Differentiation
Flexi Working Hours
Work-from-Home
Transit Office
Health Care
Child Education
Child Care
Sports-club
Pilgrimage Assistance
Medical Coverage
Staff Formal Education
Employee Soft Loans
Well-being Programs
Mobility Programs
CSR Programs
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What Might Work?
RECOGNIZE
UNDERSTAND
SENSITIVE
CONSISTENT
FOLLOW UP
REVISIT
REVIEW
High performance culture
Clear job process flow
Organization Communication
Business Communication
Proper Tools
Clear Stakeholder Management
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SUGGESTED
FLOW
Analyze
Climate
Review
Rationale
Visit the
Symptom
Solution
Options
Solution
Implement
ation
Evaluate
Management
Commitment
People Forum
Consistent rituals
Engagement indicators
Union/Informal
Leaders feedback
At least 2x/year
Detail
Analytical
Pragmatic
Out of the box
FGD
External feedback
Involve business/
functions
Cost
Leadership
Major changes
Minor changes
Scope
Acceptance
Return
Major changes
Minor changes
Scope levels
Long term
Medium term
Short term
Efficient
Organization
Business
Monthly monitoring
FGD
Engagement
indicators
Union/Informal
Leaders feedback
Revisit the flow
Maximum Business Performance Consistent Growth
Employee Positive Contribution Employee Pride and Happiness - Self and Family
Respected Organization - Communities
objective
Corporate Culture Management Vision Corporate Positioning Respect Listen
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DO YOU HAVE ANY QUESTION?
DO YOU WANT TO SHARE YOUR EXPERIENCE?
PLEASE SHARE WITH US
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- The Coming Jobs War, Jim Clifton (Chairman of Gallup), 2011
- The Employee Engagement Mindset, Timothy R. Clark, 2012
- The Enemy of Engagement, Mark Royal & Tom Agnew (Hay Group), 2012
- The 7 Hidden Reasons Employee Leave, Leigh Branham, 2012
- The Impact of Employee Engagement on Performance, Harvard Business Review, 2013
- Trend in Talent and Career Management, Towers Watson, 2013
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LITERATURE