the business case: evaluating employee engagement and alignment with organisation goals

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Serco Internal Rebecca Jeffs Head of Talent and Reward Serco

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Page 1: The Business Case: Evaluating Employee Engagement and Alignment with Organisation Goals

Serco InternalSerco Internal

Rebecca Jeffs

Head of Talent and Reward

Serco

Page 2: The Business Case: Evaluating Employee Engagement and Alignment with Organisation Goals

Serco Internal

Evaluating Employee Engagement and Alignmentwith Organisational Goals

• Understanding the correlation between engagement levels and businessperformance

• How to establish employee engagement as a critical driver of business success• Ensuring alignment throughout different phases and layers within the business• Moving Engagement from an add-on activity to core business driver

The Business case: Serco

Page 3: The Business Case: Evaluating Employee Engagement and Alignment with Organisation Goals

Serco Internal

Who is Serco?Our Worldwide ServicesAviationPassenger TransportationDefenseNuclear Power GenerationHealthcareEducationScienceHome AffairsInsurance

Our CustomersOver 700 Contracts in morethan 30 countries around theworld

Our PeopleOver 120,000 employees

Our Middle East Regional ServicesAviationFacilities ManagementTechnology SolutionsPassenger TransportationDefenseHealthcareEducation

Our People in the Middle EastOver 3000 employees in ME54 Nationalities in ME

Zayed University

Sowwah SquareDubai Metro

Dubai Airport

Page 4: The Business Case: Evaluating Employee Engagement and Alignment with Organisation Goals

Serco Internal

The Barriers

4

Engagement Barriers

• Engagement was just a survey• No senior leader buy-in• No accountability – it’s HR!• No internal evidence• No resources• No sharing best practice – suspicion

The Journey so far…

2010

Page 5: The Business Case: Evaluating Employee Engagement and Alignment with Organisation Goals

Serco Internal

The Barriers

5

Things had to change!INCREASEDOUTPUTS

Customer satisfactionProductivityProfitabilityGrievances

AttritionAccident RatesAbsenteeism

HighEmployee

Engagement

LowEmployee

Engagement

ButWHY??

Page 6: The Business Case: Evaluating Employee Engagement and Alignment with Organisation Goals

Serco Internal

The BarriersCustomer SatisfactionSerco has found that where engagement is high, more customers promote Serco

At Serco, trend analysis suggests highemployee engagement predicts futurecustomer satisfaction. The reverserelationship of customer satisfactionpredicting future employee engagement isnot as strong.

Page 7: The Business Case: Evaluating Employee Engagement and Alignment with Organisation Goals

Serco Internal

The BarriersOperating ProfitHigh engagement contractsproduced DOUBLE theoperating profits ofrisk/destructive engagementcontracts.

14%

11%

7%

0%2%4%6%8%

10%12%14%16%

High employeeengagement (65%+)

Opportunity employeeengagement (45-64%)

Risk / Destructiveemployee engagement

(<45%)

Operating Profit (EBIT) as a % of revenues

Page 8: The Business Case: Evaluating Employee Engagement and Alignment with Organisation Goals

Serco Internal

The BarriersAttrition

Contracts in the High Performanceengagement range had 20% loweremployee turnover, on average (comparedto Destructive range).

In practical terms this meant they had 260fewer people to replace over the year,saving them circa £2.6M in replacementcosts.

Significant links between employee engagement and attrition.

Evidenced across 47 matched contracts suitablefor analysis, covering 3 Divisions.

Page 9: The Business Case: Evaluating Employee Engagement and Alignment with Organisation Goals

Serco Internal

The BarriersAccident RatesPeople taking more ownership for their work, better communicationand compliance, and ultimately better safety records.

Page 10: The Business Case: Evaluating Employee Engagement and Alignment with Organisation Goals

Serco Internal

The BarriersHow – critical and core business driver?• Business Linkage analysis• Clear definition of what Engagement is to Serco• Create an Engagement Strategy, included in the Business Strategy• Include Engagement within the Balanced Scorecard, Performance Management and

regular reporting (inc. Risk register, audit evaluations)• Develop case studies• Redesign and reposition the survey• Set up a Global Engagement network• Create resources to support managers• Creation of Engagement Managers Handbook• Develop an Engagement Master Class• Utilise internal social media platform• Build strong links with key stakeholders – internal and external

Page 11: The Business Case: Evaluating Employee Engagement and Alignment with Organisation Goals

Serco Internal

The BarriersHAS to start from the top!Great leadership and employee engagement are inextricably bound.Effective leaders are the guardians of the culture and exemplars in living the organisations’values. Therefore the output of great leadership is engaged employees.

‘ One thing I have learnt inthe thirty years in business,it is that the quality,motivation andcommitment of peoplethat makes or breakscompanies.’

‘If you want your colleagues to be energetic,enthusiastic, committed, turn up on time … set theexample yourself. Do as you would be done by; behaveas you would like your colleagues to behave. Above all,engage yourself with everyone; a “good morning”,“please”, “thank you”, knowing peoples’ names, justsitting down for a natter, and showing interest inpeoples’ lives. All these things matter.’

Page 12: The Business Case: Evaluating Employee Engagement and Alignment with Organisation Goals

Serco Internal

The BarriersClearly defined roles and responsibilities

Senior Leader /ContractDirector

Managers

HR

• Set the tone for Engagement• Make Engagement a strategic priority• Make engagement a key objective for your managers• Communicate the results• Own the results and the engagement improvement plan• Understand the complexities of engagement and the behaviours that underpin it• Remove barriers to acting on results• Set mid-to long term plans, identify the link with business goals• Coach and support people managers to lead engagement in their areas• Pro-actively tackle behaviour that are negatively impacting on engagement

• Own the results and the engagement improvement plan• Understand the behaviours which underpin engagement and how they can influence engagement• Take action on the feedback• Deliver on the commitments made in the engagement action plan• Keep team members informed on progress of the action plan

• Be a recognised authority on employee engagement• Educate senior leaders, coach to action• Be a catalyst for change• Encourage an awareness of engagement issues across business and best practice ideas via the Serco

case studies and resources on the Viewpoint Tool• Collaborate with others to act on results of survey

Page 13: The Business Case: Evaluating Employee Engagement and Alignment with Organisation Goals

Serco Internal

The BarriersWhat impact has this had in Serco?

7% Increase inEmployee

EngagementGlobally

2013-2014

7% Increase inEmployee

EngagementGlobally

2013-2014

9% Increase inEmployee

Engagement inMiddle East2013-2014

9% Increase inEmployee

Engagement inMiddle East2013-2014

30% Increase inLeadership

Engagement inMiddle East

Apr-Sep 2014

30% Increase inLeadership

Engagement inMiddle East

Apr-Sep 2014

Page 14: The Business Case: Evaluating Employee Engagement and Alignment with Organisation Goals

Serco InternalSerco Internal