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Employee Engagement in Organisations: The first days for ambitious HR functions ‘Think HR. Think Human Capital.’ Tour 2013 Employee Engagement Conference Osney Media London UK September 2013 Nicholas J Higgins, DrHCMI MSc Fin (LBS) MBA (OBS) MCMI CEO, VaLUENTiS Ltd & Dean, International School of Human Capital Management (‘ISHCM’)

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Presentation of Employee Engagement in Organisations containing results from recent global survey and forthcoming VaLUENTiS report 'Employee Engagement in Organisations: State of the Notion' 2013

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Page 1: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

Employee Engagement in Organisations:

The first days for ambitious HR functions

‘Think HR. Think Human

Capital.’ Tour 2013

Employee Engagement Conference Osney Media

London UK September 2013

Nicholas J Higgins, DrHCMI MSc Fin (LBS) MBA (OBS) MCMI

CEO, VaLUENTiS Ltd & Dean, International School of Human Capital Management (‘ISHCM’)

Page 2: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

© 2013

All rights reserved.

Please e-mail [email protected] regarding any matters of reproduction/ organisational distribution.

Page 3: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

‘Celebrating ten years 2003-13’

Page 4: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

• First British firm to introduce Employee Engagement model (known as the ‘5D’)

• First to publish live client HR scorecard linking with employee engagement

• First to introduce CQ&Q people management evaluation tool (‘Management Pathfinder’ and ‘VB-HR Rating’)

• First to introduce global value-based HR function (VB-HR™) profiler

• First to comprehensively evaluate the value of the Investors in People framework

• First to publish global Human Capital Reporting Standards (GHCRS2006 open source)…

• Globally, first to set-up dedicated, practitioner-based Business School on Human Capital Management

• First to introduce Masters in Human Capital Management

• First British business school to offer dedicated people management qualifications online (HCMI)

• Globally, first School to offer Masters qualification with CMAS® technology

Page 5: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

Source: The Enterprise-wide Application of Human Capital Intelligence (HCMi), N J Higgins & G Cohen ,VaLUENTiS white paper

When leading edge means leading edge…

HCM Intelligence – ‘The Full Monty’

HC Measurement & evaluation

•Absenteeism

•Turnover (voluntary)

•Turnover (involuntary)

•Recruitment cost per FTE

•Time to fill

•Training days per FTE

•Training spend per FTE

•Revenue per FTE

•Profit per FTE

•HR FTE: FTE

•Employee costs per FTE

•HR costs per FTE

•% females in senior management roles

5.2%

8.6%

1.8%

£12,569

38 days

3.5

£871

£365,121

£67,119

1:112

£27,469

£1356

23%

•HCI (used with revenue per FTE to calculate HCIR per FTE)

•HR budget (adjusted using standard template)

•MD spend

•Internal/external management position fill ratio

•No of industrial tribunals

•% union membership

•HR service delivery (IT mix)

Plus portfolio of tertiary indicators which are more context/organisation specific

•HR spend per FTE

(adjusted using standard template)

•Formal job offer success

Plus portfolio of tertiary indicators which are more

context/organisation specific

•HC leverage

•HCIR per FTE

•HC Investment ratio

•Employee engagement

•Voluntary turnover1

•Absenteeism1

•Accident/injury rate

•VB-HR™

Rating

•HC Performance

•HCI (used with revenue per FTE to calculate HCIR per FTE)

•HR budget (adjusted using standard template)

•MD spend

•Internal/external management position fill ratio

•No of industrial tribunals

•% union membership

•HR service delivery (IT mix)

Plus portfolio of tertiary indicators which are more context/organisation specific

•HR spend per FTE

(adjusted using standard template)

•Formal job offer success

Plus portfolio of tertiary indicators which are more

context/organisation specific

•HC leverage

•HCIR per FTE

•HC Investment ratio

•Employee engagement

•Voluntary turnover1

•Absenteeism1

•Accident/injury rate

•VB-HR™

Rating

•HC Performance

DIVERSITY

EMPLOYEE

CENTRICITY

EMPLOYER

BRAND

HR

GOVERNANCE

HR

OPERATIONAL

EXCELLENCE

LEADERSHIP

ORGANISATION

CLIMATE ORGANISATION

COMMUNICATIONS

ORGANISATION

DESIGN

PERFORMANCE

ORIENTATION

RESOURCING

RETENTION

REWARD

TALENT

MANAGEMENT

TRAINING &

DEVELOPMENT

79.6

+

81.3

+

74.2

67.4

+

61.5

43.1 +

48.7

64.2

62.859.460.3

+

68.4

65.759.9 41.6

DIVERSITY

EMPLOYEE

CENTRICITY

EMPLOYER

BRAND

HR

GOVERNANCE

HR

OPERATIONAL

EXCELLENCE

LEADERSHIP

ORGANISATION

CLIMATE ORGANISATION

COMMUNICATIONS

ORGANISATION

DESIGN

PERFORMANCE

ORIENTATION

RESOURCING

RETENTION

REWARD

TALENT

MANAGEMENT

TRAINING &

DEVELOPMENT

79.6

+

81.3

+

74.2

67.4

+

61.5

43.1 +

48.7

64.2

62.859.460.3

+

68.4

65.759.9 41.6

Human

Capital

Practices

Human

Capital

Practices

External

Value

Proposition

External

Value

Proposition

Customer

Satisfaction

Customer

Satisfaction

Customer

Loyalty

Customer

Loyalty

Revenue

Growth

Revenue

Growth

ProfitabilityProfitability

Employee

Retention

Employee

Retention

Individual/

team

Productivity

Individual/

team

Productivity

‘Local’

Management

‘Local’

ManagementCost controlCost control

ComplianceCompliance

Portfolio mixPortfolio mix

X-sellingX-selling

ServiceService

Work valuesWork values

Line-of-sightLine-of-sight

DevelopmentDevelopment

RewardReward

Work environmentWork environment

Employee

Engagement

Employee

Engagement

Leadership

&

governance

Leadership

&

governance

Shareholder

value

Shareholder

valueEmployer

brand

Employer

brand

Human

Capital

Practices

Human

Capital

Practices

External

Value

Proposition

External

Value

Proposition

Customer

Satisfaction

Customer

Satisfaction

Customer

Loyalty

Customer

Loyalty

Revenue

Growth

Revenue

Growth

ProfitabilityProfitability

Employee

Retention

Employee

Retention

Individual/

team

Productivity

Individual/

team

Productivity

‘Local’

Management

‘Local’

ManagementCost controlCost control

ComplianceCompliance

Portfolio mixPortfolio mix

X-sellingX-selling

ServiceService

Work valuesWork values

Line-of-sightLine-of-sight

DevelopmentDevelopment

RewardReward

Work environmentWork environment

Employee

Engagement

Employee

Engagement

Leadership

&

governance

Leadership

&

governance

Shareholder

value

Shareholder

valueEmployer

brand

Employer

brand

VB-HR™ Rating

Workforce Intelligence

HR Strategy

OrganisationalHCM

Capital

B B R

BBRCCCCCC

BBRCCCB

HCMArchitecture

BBRBB

Management Employees

BBRCCCB

BBRCCCCCC

HR Customer-

agency

BB

HR Capability

BB

HumanCapital

HR Functional Capital

Human Capital Management

Overall

ranking

AAAAAABBBBBBCCC

CC

C

R

rmin

r

RR

RRRB RB

HR Procurement

RBB

RBBBB

BB

R

EFFECTIVENESS

MAINTENANCE

RISK

VB-HR™ Rating

Workforce Intelligence

HR Strategy

OrganisationalHCM

Capital

B B R

BBRCCCCCC

BBRCCCB

HCMArchitecture

BBRBB

Management Employees

BBRCCCB

BBRCCCCCC

HR Customer-

agency

BB

HR Capability

BB

HumanCapital

HR Functional Capital

Human Capital Management

Overall

ranking

AAAAAABBBBBBCCC

CC

C

R

rmin

r

RR

RRRB RB

HR Procurement

RBB

RBBBB

BB

R

EFFECTIVENESS

MAINTENANCE

RISK

BB

BB

R

EFFECTIVENESS

MAINTENANCE

RISK

3.11

Managing

ASP/software/

Outsource Providers

4.11

Managing

ASP/ERP/soft

ware/Outsour

ce Providers

1.6

HR Policy

2.5

Organisation

Restructure/

Change/ Development

3.1

Workforce

Planning

1.7

HR

Performance/

Strategy

Review/ Audit

1.1

Employer

brand

4.1

Needs

Assessment

6.1

Total Reward

Programme

7.1

Employee

Communications

8.2

Risk

Assessment

1.2

HR Value

Proposition

1.3

HR Delivery

Structure

1.4

HC Reporting

1.5

HR Capability

10.9

Reporting/

Interfaces

2.6

Acquisition/

Divestiture/

Start-up Due

Diligence/ Support

2.1

Organisationa

l Design/

Capability

Planning –

Business Unit

Level

2.2

Organisationa

l Design/

Capability

Planning –

Multi-country

Level

2.3

Organisationa

l Design/

Capability

Planning –

Global Level

2.4

Job

Classification/

Evaluation

3.2

Candidate

Identification

Services

3.3

Job Profile

Services/

Requisition Processing

3.4

Candidate

Selection

3.5

Temporary

and

Contractor

Staffing

3.6

General

Employment Services

3.7

Relocation

3.8

Outplacement Services

3.9

Employment

Law Services

3.10

Consulting

Line

Managers On

Staffing Issues

4.2

General

Training

Design,

Development

and Delivery

4.3

Training &

Development Management

4.4

Technical/

Functional/

Policy &

Procedure

Training

4.5

Employee

Induction/

Orientation

4.6

Competencies

/ Skills Model

Development

And

Assessment

4.7

Leadership/

Management Development

4.8

Executive Development

4.9

Career Development

4.10

Consulting On

Managerial

Issues

5.1

Performance

(Talent)

Management

Assessment

5.2

Performance

(Talent)

Management Development

5.3

Performance

Reviews

5.4

Succession

(Talent) Management

6.2

Wage And

Salary

Management

6.3

Bonus/Incenti

ve/ Stock

Options

Compensatio

n

6.4

Senior/

Executive

Compensatio

n

7.2

Benefits

7.3

Attendance/

Leave Of

Absence/ Exit

Interviews

7.4

Return-To-

Work and Job

Accommodati

on

8.1

Risk

Management/

Regulatory

Compliance/ Security

9.1

HRIS Strategy

9.2

HRIS

Planning

10.1

Payroll

10.2

Employee/

Manager

Interaction/

Problem

Resolution

10.3

Time

Reporting

10.6

Tax

Reporting/

Audit

10.7

Employee

Reimburseme

nt

10.8

Statutory

Benefits/

Miscellaneous

Admin

10.10

Managing

Outsource

Providers

1.8

Managing

External

Consultants/

Outsource Providers

2.7

Managing

External

Consultants/

Outsource

Providers

5.5

Attendance

Management

6.5

Expatriate

Compensatio

n

7.5

Company

Policies And

Procedures

8.3

Accident

Prevention

and Training

Programmes

8.4

Health/Medica

l Programmes

9.3

HRIS Support

9.4

Employee

Research &

Modelling

5.6

Employee

Coaching

6.6

Compensatio

n

Analysis/Pay

review

6.7

Healthcare/

Welfare/

Statutory/

Other Benefit

Programmes

7.6

Collective

Bargaining/

Negotiating/

Consultative Processes

7.7

Work

Practices For

Represented

Employees

8.5

Incident

Tracking and

Reporting

8.6

Managing

External

Consultants/

Outsource Providers

9.5

Benchmarkin

g

9.6

Measurement

and Reporting

10.4

Special Pay,

Adjustments

And

Deductions

10.5

Payroll

Accounting/

Recon/

Manual

Calculations

&

Disbursement

5.7

Employee

Counselling/

Case

management

5.8

PM

Compliance

Support

6.8

Pension

Management

6.9

Retirement

Planning/

Counselling

And

Administratio

n

7.8

Conflict and

Issue

Resolution

7.9

Corporate/

Community

Social

Responsibility

9.7

Employee

Records/Case

management/

Data

Maintenance

9.8

Reporting/

Interfaces

9.9

Managing

ASP/software/

Outsource

Providers

5.10

Managing

ASP/ERP/

Software

Providers

5.9

Consulting To

Line

Managers On

Performance

Issues

6.10

Managing

External

Consultants/

Outsource

Providers

7.10

Government/

Legislative Issues

7.11

Managing

External

Consultants

HR

GOVERNANCE

ORGANISATION

DESIGN

RESOURCING TRAINING &

DEVELOPMENT

PERFORMANCE

(TALENT)

MANAGEMENT

REWARDEMPLOYEE

RELATIONS

& COMMS

EMPLOYEE

HEALTH &

SAFETY

HRIS &

MEASURE-

MENT

PAYROLL

3.11

Managing

ASP/software/

Outsource Providers

4.11

Managing

ASP/ERP/soft

ware/Outsour

ce Providers

1.6

HR Policy

2.5

Organisation

Restructure/

Change/ Development

3.1

Workforce

Planning

1.7

HR

Performance/

Strategy

Review/ Audit

1.1

Employer

brand

4.1

Needs

Assessment

6.1

Total Reward

Programme

7.1

Employee

Communications

8.2

Risk

Assessment

1.2

HR Value

Proposition

1.3

HR Delivery

Structure

1.4

HC Reporting

1.5

HR Capability

10.9

Reporting/

Interfaces

2.6

Acquisition/

Divestiture/

Start-up Due

Diligence/ Support

2.1

Organisationa

l Design/

Capability

Planning –

Business Unit

Level

2.2

Organisationa

l Design/

Capability

Planning –

Multi-country

Level

2.3

Organisationa

l Design/

Capability

Planning –

Global Level

2.4

Job

Classification/

Evaluation

3.2

Candidate

Identification

Services

3.3

Job Profile

Services/

Requisition Processing

3.4

Candidate

Selection

3.5

Temporary

and

Contractor

Staffing

3.6

General

Employment Services

3.7

Relocation

3.8

Outplacement Services

3.9

Employment

Law Services

3.10

Consulting

Line

Managers On

Staffing Issues

4.2

General

Training

Design,

Development

and Delivery

4.3

Training &

Development Management

4.4

Technical/

Functional/

Policy &

Procedure

Training

4.5

Employee

Induction/

Orientation

4.6

Competencies

/ Skills Model

Development

And

Assessment

4.7

Leadership/

Management Development

4.8

Executive Development

4.9

Career Development

4.10

Consulting On

Managerial

Issues

5.1

Performance

(Talent)

Management

Assessment

5.2

Performance

(Talent)

Management Development

5.3

Performance

Reviews

5.4

Succession

(Talent) Management

6.2

Wage And

Salary

Management

6.3

Bonus/Incenti

ve/ Stock

Options

Compensatio

n

6.4

Senior/

Executive

Compensatio

n

7.2

Benefits

7.3

Attendance/

Leave Of

Absence/ Exit

Interviews

7.4

Return-To-

Work and Job

Accommodati

on

8.1

Risk

Management/

Regulatory

Compliance/ Security

9.1

HRIS Strategy

9.2

HRIS

Planning

10.1

Payroll

10.2

Employee/

Manager

Interaction/

Problem

Resolution

10.3

Time

Reporting

10.6

Tax

Reporting/

Audit

10.7

Employee

Reimburseme

nt

10.8

Statutory

Benefits/

Miscellaneous

Admin

10.10

Managing

Outsource

Providers

1.8

Managing

External

Consultants/

Outsource Providers

2.7

Managing

External

Consultants/

Outsource

Providers

5.5

Attendance

Management

6.5

Expatriate

Compensatio

n

7.5

Company

Policies And

Procedures

8.3

Accident

Prevention

and Training

Programmes

8.4

Health/Medica

l Programmes

9.3

HRIS Support

9.4

Employee

Research &

Modelling

5.6

Employee

Coaching

6.6

Compensatio

n

Analysis/Pay

review

6.7

Healthcare/

Welfare/

Statutory/

Other Benefit

Programmes

7.6

Collective

Bargaining/

Negotiating/

Consultative Processes

7.7

Work

Practices For

Represented

Employees

8.5

Incident

Tracking and

Reporting

8.6

Managing

External

Consultants/

Outsource Providers

9.5

Benchmarkin

g

9.6

Measurement

and Reporting

10.4

Special Pay,

Adjustments

And

Deductions

10.5

Payroll

Accounting/

Recon/

Manual

Calculations

&

Disbursement

5.7

Employee

Counselling/

Case

management

5.8

PM

Compliance

Support

6.8

Pension

Management

6.9

Retirement

Planning/

Counselling

And

Administratio

n

7.8

Conflict and

Issue

Resolution

7.9

Corporate/

Community

Social

Responsibility

9.7

Employee

Records/Case

management/

Data

Maintenance

9.8

Reporting/

Interfaces

9.9

Managing

ASP/software/

Outsource

Providers

5.10

Managing

ASP/ERP/

Software

Providers

5.9

Consulting To

Line

Managers On

Performance

Issues

6.10

Managing

External

Consultants/

Outsource

Providers

7.10

Government/

Legislative Issues

7.11

Managing

External

Consultants

HR

GOVERNANCE

ORGANISATION

DESIGN

RESOURCING TRAINING &

DEVELOPMENT

PERFORMANCE

(TALENT)

MANAGEMENT

REWARDEMPLOYEE

RELATIONS

& COMMS

EMPLOYEE

HEALTH &

SAFETY

HRIS &

MEASURE-

MENT

PAYROLL

HC Productivity Statement

CONTRACTED RESOURCE ye 31st Dec 2005 ye 31st Dec 2004

Total number of FTE days contracted in year 3,530,340 3,401,289

Total number of FTE vacation days taken in year

336,987 333,144

TOTAL NUMBER OF CONTRACTED FTE DAYS AVAILABLE

3,193,353 3,068,145

WORK RESOURCE ADJUSTMENT

FTE days gained through recorded overtime

work (+)

61,932 65,371

FTE days lost to illness (-) 18,431 19,016

FTE days lost to work-related illness/injury (-) 2,773 2,816

FTE days lost to industrial action (-) 249 167

FTE days recorded as lost under miscellaneous

(-)

763 1,075

ACTUAL NUMBER OF CONTRACTED FTE DAYS WORKED

3,233,069 3,110,442

PRODUCTIVITY

HCI*Revenue per FTE day (optimal) £192.96 £185.42

HCI*Revenue per FTE day (actual) £190.59 £182.90

HCI*Revenue per FTE day differential £2.37 £2.52

EMPLOYER-EMPLOYEE RELATED INDICES

Employee engagement index 69.2 68.5

Employer brand index 71.3 71.0

HUMAN CAPITAL MANAGEMENT INDEX

VB-HR Rating BB-BB-R BB-B-R

HC Performance Sustaining + Sustaining +

HC Productivity Statement

CONTRACTED RESOURCE ye 31st Dec 2005 ye 31st Dec 2004

Total number of FTE days contracted in year 3,530,340 3,401,289

Total number of FTE vacation days taken in year

336,987 333,144

TOTAL NUMBER OF CONTRACTED FTE DAYS AVAILABLE

3,193,353 3,068,145

WORK RESOURCE ADJUSTMENT

FTE days gained through recorded overtime

work (+)

61,932 65,371

FTE days lost to illness (-) 18,431 19,016

FTE days lost to work-related illness/injury (-) 2,773 2,816

FTE days lost to industrial action (-) 249 167

FTE days recorded as lost under miscellaneous

(-)

763 1,075

ACTUAL NUMBER OF CONTRACTED FTE DAYS WORKED

3,233,069 3,110,442

PRODUCTIVITY

HCI*Revenue per FTE day (optimal) £192.96 £185.42

HCI*Revenue per FTE day (actual) £190.59 £182.90

HCI*Revenue per FTE day differential £2.37 £2.52

EMPLOYER-EMPLOYEE RELATED INDICES

Employee engagement index 69.2 68.5

Employer brand index 71.3 71.0

HUMAN CAPITAL MANAGEMENT INDEX

VB-HR Rating BB-BB-R BB-B-R

HC Performance Sustaining + Sustaining +

Human Capital Operating Statement

ye 31st Dec 2005 ye 31st Dec 2004

OPERATING INCOME %

Revenue (£000s) 1,057,016 1,015,020

FTEs 16,352 16,047

Revenue per FTE 64,641 63,253

OPERATING COSTS

Total operating costs (£000s) 904,371 815,094

People costs (£000s) 532,181 464,317

Human Capital Intensity (HCI) 58.85 56.96

OPERATING INCOME ATTRIBUTABLE

TO HC (HCIR per FTE)

38,041

36,029

£ % £ %

ANCILLARY PEOPLE COSTS (APC)

Training & Development costs (£000s) 8,176 7,342

Recruitment costs (£000s) 2,314 2,954

Health & Safety costs (£000s) 740 691

HR functional and related costs (£000s) 6,254 6,879

Outplacement costs (£000s) 256 53

Total 17,740 17,919

HC LEVERAGE (HCIR/APC per FTE) 35.06 32.26

Human Capital Operating Statement

ye 31st Dec 2005 ye 31st Dec 2004

OPERATING INCOME %

Revenue (£000s) 1,057,016 1,015,020

FTEs 16,352 16,047

Revenue per FTE 64,641 63,253

OPERATING COSTS

Total operating costs (£000s) 904,371 815,094

People costs (£000s) 532,181 464,317

Human Capital Intensity (HCI) 58.85 56.96

OPERATING INCOME ATTRIBUTABLE

TO HC (HCIR per FTE)

38,041

36,029

£ % £ %

ANCILLARY PEOPLE COSTS (APC)

Training & Development costs (£000s) 8,176 7,342

Recruitment costs (£000s) 2,314 2,954

Health & Safety costs (£000s) 740 691

HR functional and related costs (£000s) 6,254 6,879

Outplacement costs (£000s) 256 53

Total 17,740 17,919

HC LEVERAGE (HCIR/APC per FTE) 35.06 32.26

PeopleFlow® Statement

STAFFING ye 31st Dec 2005 ye 31st Dec 2004

%

No of full-time staff at start of year 14,011 13,865

Number of part-time staff at start of year (FTE

eqv)

1,932 1,491

Number of other at start of year (FTE eqv) 104 175

Full time equivalents (FTEs) at start of year

16,047 15,531

STAFFING MOVEMENT % £ %

Number of FTEs recruited in period (+) 1,427 1,874

Number of acquisitioned FTEs during period (+) - -

1,427 1,874

Number of voluntary leavers (FTE) in period (-) 996 1,065

Number of FTEs made redundant or outplaced in period (-)

35 217

Number of FTE retirements in period (-) 91 76

Number of FTEs outsourced in period (-) -

Full time equivalents (FTEs) at end of year 16,352 16,047

STAFFING MISCELLANEOUS

Mean tenure (years) 5.2 5.3

Mean age of workforce 34 34

Retirement population 5,391 5,304

PeopleFlow® Statement

STAFFING ye 31st Dec 2005 ye 31st Dec 2004

%

No of full-time staff at start of year 14,011 13,865

Number of part-time staff at start of year (FTE

eqv)

1,932 1,491

Number of other at start of year (FTE eqv) 104 175

Full time equivalents (FTEs) at start of year

16,047 15,531

STAFFING MOVEMENT % £ %

Number of FTEs recruited in period (+) 1,427 1,874

Number of acquisitioned FTEs during period (+) - -

1,427 1,874

Number of voluntary leavers (FTE) in period (-) 996 1,065

Number of FTEs made redundant or outplaced in period (-)

35 217

Number of FTE retirements in period (-) 91 76

Number of FTEs outsourced in period (-) -

Full time equivalents (FTEs) at end of year 16,352 16,047

STAFFING MISCELLANEOUS

Mean tenure (years) 5.2 5.3

Mean age of workforce 34 34

Retirement population 5,391 5,304

HCM Intelligence

Management Pathfinder

(OE indicators) ‘RADAR’

Employee engagement

Basic metrics

Measurement pyramid

Modelling analytics linking performance to human capital

(management)

HR delivery and

operational risk

Human capital reporting

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‘A selection of previous relevant presentations…’

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7

Part I

Baselines…

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8

“As evidence-based management practitioners, our purpose is to enhance effective people management (and its impact on productivity/performance) in organisations, whilst enabling greater individual managerial professionalism.”

Our mission

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9

Employee Engagement: Whose responsibility is it anyway?

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The traditional view of employee engagement

contributing to improved organisational

performance...

Higher employee

engagement

Higher productivity

Higher organisation performance

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Human capital management practice and

employee engagement contributing to improved

organisational performance (‘POP’ system)

Higher employee

engagement

Higher productivity

Higher organisation performance

More effective human capital management

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“Employee engagement is an ‘outcome-based’ concept.

It is the term used to describe the degree to which employees can be ascribed as ‘aligned’ and ‘committed’ to an organisation such that they are at their most productive.”

VaLUENTiS International School of HCM 2005

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The concept of Employee Engagement: A synthesis of antecedent theories and empirical evidence with human capital

management practice related to organisation performance – 100 years in the making

Source: The antecedents of Employee Engagement, Nicholas J Higgins - VaLUENTiS technical paper 2003

Wider Group

Immediate Team

Organisation Individual

•Group theory

•Trust theory

•Teams theory

•Conflict theory

•Decision-making theory

•Motivation theory

•Goal setting and task theory

•Equity (justice) theory

•Trait theory

•Expectancy theory

•Commitment theory

•Needs theory

•Social cognitive/ self efficacy theory

•Cognitive dissonance

•Wellbeing/Burnout

•Job satisfaction

•Organisation Citizenship Behaviour

•Learning theory

•Behaviourism

•Emotional Intelligence

•Psychological contract

•Leadership theory

•Organisational ‘fit’ theory

•Other I/O psychology contributions

•Organisation performance & measurement*

Human Capital Management practice/systems:

•Training & Development

•Performance management

•Reward & recognition

•Resourcing & selection

•Organisation communication

•Talent management

•Leadership

•Organisation culture

•Employer brand

•Human capital retention

•Organisation design

•Workforce diversity

•High performance work systems

•Fayol - Principles of management

•Taylor - Scientific management

•McGregor Theory X/Y

•Mayo/Hawthorne studies

•Tavistock – Socio-technical systems

•Lewin (MIT) - group dynamics/behaviour

•Munsterberg - Industrial psychology

•Follett - Management relations/integration

•Hertzberg – Two factor theory

•Drucker – Practice of management

•Kahn – Personal engagement

•Likert – Management system/measurement scale

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14

Psychological Conditions of Personal Engagement and Disengagement at Work

William A. Kahn

Academy of Management Journal 1990

“Personal Engagement is the simultaneous employment and expression of a person’s ‘preferred self’ in task behaviors that promote connections to work and to others, personal presence (physical, cognitive and emotional), and active, full role performance.”

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Employee engagement as a sum of constant work ‘forces’ (VaLUENTIS EESoF model) illustrative vectors

interpersonal conflict

incentive misalignment

perceived reward inequity short-staffed

uncaring new boss

poorly communicated reorganisation

enlarged role

planned training

cancelled

Well-received performance appraisal hit personal

targets/ objectives

hit team targets/ objectives

salary increase

enrolled on MD programme

“A further, more up to date interpretation…”

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“Human Capital Management is the term which is used to describe an organisation’s multi-disciplined and integrated approach to optimising the capabilities and performance of its management and employees.”

VaLUENTiS International School of HCM 2005

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‘Management Pathfinder®’

Page 18: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

Management Pathfinder ‘one-line descriptors’ [Reference]

Diversity [E2] The focus and effectiveness of diversity of the workforce and diversity policies within the organisation

Employee Centricity [legacy indicator] optional reporting indicator The degree to which the organisation has ‘employee-centric’ policies in place and delivers on them in terms of effectiveness including historical perspective

Employer Brand [E1] The degree to which the organisation has an identifiable brand and its contribution/ effectiveness in related organisational areas

HR Governance [H1] [expanded version only] The overarching management of HR as a function governance of Human Capital Management within the organisation.

HR Operational Excellence [H2] [expanded version only] The degree to which the HR function possesses the requisite competence and executes its delivery objectives in terms of quality and effectiveness

Leadership [F1] The perceived effectiveness of distributed leadership across the organisation

Organisation Climate [S1] The degree to which the current operating environment with in the organisation is seen to be a positive/negative factor

Organisation Communications [S2] The current effectiveness of communications in the organisation as perceived by managers and employees

Organisation Design [S3] The degree to which the overall organisation architecture, e.g. management structure, job/role design is effective

Performance Orientation [F3] The degree to which the organisation is viewed as effective in terms of focus and actions re performance related areas

Resourcing [V1] The effectiveness of current resourcing policies and processes/activities in terms of organisation requirements

Retention [V2] The effectiveness of current organisational retention approaches and efforts

Reward [V3] The effectiveness of current reward policy/strategy

Talent Management [F2] The effectiveness of current organisational approaches to talent, its scope and its management

Learning & Development [E3] The degree to which current approaches and application of training, learning and development are effective

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Organisation Performance (as defined by organisation/unit scorecard measures and derivative metrics)

Examples of organisation performance areas:

Sales Revenue

Service delivery

Customer satisfaction

Patient care

Procurement

Operational risk

Product development

Organisation support

Safety

Quality

Cost…

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20

Sub-optimal performance, i.e. less than achievable

Or

Sub-optimal costs, i.e. higher than necessary

Or

Both

Impaired Employee Engagement: Impact on individual and team productivity/performance

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Organisations and employee engagement:

The ‘4-ball’ practice model

Play down

‘We don’t...’

Play act

‘It’s all about PR…’

Play safe

‘At least we audit/ benchmark...’

Play make

‘We do it…’

The four progressive states of employee engagement

embeddedness in organisations

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The ‘Six Pillars’…

EE PLAYBOOK

1. Grounded understanding of Employee Engagement

2. Working definition of Employee Engagement

3. Measurement wisdom

4. Actioning infrastructure

5. Dynamic EE-Performance ‘playbook’

DELETE 6. Competent leadership/management

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Little. Limited.

Mostly ephemeral in nature.

Exists in pockets with variation in line management.

Good working knowledge embedded across

organisation.

No definition in use. Most likely borrowed

without any real ownership, or ‘false’ ownership.

Maybe borrowed with internalisation or adapted after some organisational

focus.

Distributed ‘ownership’, whether borrowed, adapted

or created.

Limited to absenteeism metrics, employee surveys

seen as event driven if done.

Probably undertaking surveys but with no valid

construct; response rate/PR main focus.

Will do measurement basics, even to the extent of

engagement index etc. Tick box is main focus.

People management evaluation/measurement

seen as ‘core’ on a par with CRM , finance etc.

Probably in the form of basic training/management

courses.

Probably in the form of basic management courses. Most likely carry out some form of

branded programme.

Will have a number of actioning elements in place but not necessarily joined

up.

Will have necessary ‘toolkit’ to hand with ongoing programmes to suit organisation focus.

Does not exist.

May have something articulated on ‘strategies’.

Most likely collection of irrelevant case studies.

Playbook in the form of ‘manager manual’ or on-line knowledge-share. Still being

developed.

Easy access in different e-/physical formats at

different levels. Signals ‘embedded’ intent.

Will have varied mix of skilled people managers. Existing good performers

more through luck.

Will have varied mix of skilled people managers. Existing good performers

more through luck.

Will have varied mix of skilled people managers but level of competency higher than Play-Act organisations.

Cohort of well-trained people managers exists with

talent pools. Regular evaluation/reinforcement.

‘PLAY DOWN’ ‘PLAY ACT’ ‘PLAY SAFE’ ‘PLAY MAKE’

I Grounded understanding of employee engagement

II

III

IV

V

VI

Working definition of employee engagement

Measurement wisdom

Actioning Infrastructure

EE-Performance Playbook

Competent leadership/ management

The ‘4-ball’ Employee Engagement reality matrix

Pillar

23

NEGATIVE NEGATIVE NEUTRAL POSITIVE Overall value to organisation performance/competitive advantage

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0% 5% 10% 15% 20% 25% 30% 35% 40%

Understood across majority of managers and employees

Understood across majority of managers

Understood in some areas of management

Managers have heard the term but have little understanding

We collectively don’t really use the term

In your organisation/business unit how well is the concept of

employee engagement understood (and its potential impact in

the workplace – the Why)?

Source: VaLUENTiS Employee Engagement in Organisations –

‘State of The Notion’ report, September 2013

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As an organisation/business unit we provide learning on

employee engagement and its impact...

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

At induction for line managers ONLY

Don’t know

At induction for employees and line managers

As part of our development programme for line managers ONLY

As part of our development programme for both employees and line managers

We do not currently provide structured learning on employee engagement

Source: VaLUENTiS Employee Engagement in Organisations –

‘State of The Notion’ report, September 2013

Page 26: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

Does your organisation/business unit use a definition of

employee engagement?

0% 10% 20% 30% 40% 50% 60%

Yes

No

Don't know

Source: VaLUENTiS Employee Engagement in Organisations –

‘State of The Notion’ report, September 2013

Page 27: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

How easy is this definition for communication and measurement

purposes across the organisation?

Easy to remember – Easy to measure

39%

Easy to remember – Hard to measure

21%

Hard to remember – Easy to measure

7%

Hard to remember – Hard to measure

9%

Don’t know 24%

Source: VaLUENTiS Employee Engagement in Organisations –

‘State of The Notion’ report, September 2013

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How do we know what we are measuring is employee

engagement?

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Don't measure/No answer provided

Answer provided doesn't explain

Use assumed model/advice of consultants

Non-answer

Part research explanation but vague

Underpinning theory model(s)/rationale given

*Note: Categories derived from open text reclassification

Source: VaLUENTiS Employee Engagement in Organisations –

‘State of The Notion’ report, September 2013

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29

Part II

The first 100 days…

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Employee Engagement - Actioning Infrastructure

4

3

1

2

Page 31: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

Actioning Employee Engagement Infrastructure

(Purpose: ‘to embed’)

Supportive top leadership and ‘signalling’…

‘Interactive’ people management evaluation process map

Multi-survey mapping and

planning overlay

EE related development/

learning programmes & workshops

People Manager evaluation/

appraisal (regular

‘practice runs’)

Defined ‘how to’ strategies around engagement elements

‘Live’ Employee Engagement adapted QFD (‘House of Quality’)

Dedicated internal focus team or nominated ‘on-point’

person

Nominated People Manager Engagement line

champions

Organisation event logs Links into wider

organisation intelligence analytics

Wider communications/

branding

“Spinning plates cogs…”

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Which of the following statements describes our

organisation/business unit’s approach to embedding employee

engagement infrastructure?

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

It’s basically in the guise of an action plan off the back of the employee survey

We use employee surveys and other measurement instruments, linked with performance/productivity data and actioning

initiatives

We use employee surveys and other measurement instruments, linked with performance productivity data, backed up with leadership/management education and actioning initiatives

We don’t have any recognisable support infrastructure

Source: VaLUENTiS Employee Engagement in Organisations –

‘State of The Notion’ report, September 2013

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Management education,

assessment & reinforcement

People data

availability & quality

Employee survey

information & other

evaluations Management ‘positional mapping’

‘Game management’

Performance/ productivity/engagement ‘holes’

Initiating the first 100 days…

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Employee survey information & other evaluations…

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Once a year (census) 28%

Twice a year (census) 13% Once every two years

(census) 28%

Every quarter (pulse) including annual (census)

5%

As and when required 15%

None of the above 11%

Our organisation conducts an employee survey....

Source: VaLUENTiS Employee Engagement in Organisations –

‘State of The Notion’ report, September 2013

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Less than 20 26%

20-40 23% 41-60

21%

61-80 24%

Over 80 6%

Our survey question set includes how many questions?

Source: VaLUENTiS Employee Engagement in Organisations –

‘State of The Notion’ report, September 2013

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VaLUENTiS 5D Employee Engagement Framework

© VaLUENTiS Ltd 2002-13

Objectives awareness

Behaviour alignment

Role ‘fit’

Performance management

Feedback

Capability

Line-of-Sight

Remuneration equity

Bonus/incentives

Benefits

Role equity

Recognition

Promotional aspects

Reward (equity)

Cultural elements

Team dynamics

Communication

Resources

Local management

Physical environment

Work Environment

Development

Career progression

Competencies

Succession planning

Job/ Role architecture

Training/ Learning

Coaching/ Mentoring

Organisation design Performance/talent

management ‘Corporate’ Leadership

Communication Decision rights Work values

Trust

Organisation operating culture

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A balanced mix of Question-statements plus

organisation performance data with generation of

indices/scorecards

Line-of-Sight Work Environment

VaLUENTiS 5D Employee Engagement Framework

Reward (equity) Development

That gives us around 10103 survey combinations

20Q

30Q

40Q

50Q

60Q

70Q

80Q

90Q

100Q

‘Standard sets’

Database contains over 1000 Question-Statements, though around 290 are ‘Stems’, the

rest are variations….

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“Only one box in nine reflects the constant ‘high bar’ challenge for organisations in optimising engagement across the workforce on a daily basis”

Staff engagement: The challenge for organisations (The A-C Matrix)

© VaLUENTiS Ltd 2002-13

Likely to have performance,

attitudinal and/or

behavioural issues

More likely to have

performance/ capability issues

Knows what to do/achieve

but unlikely to achieve it

More likely to have objective

and/or ‘potential’

issues

Job gets done

Could do more

High probability of wasted

effort/ frustration

Less than optimally

productive - Could do

more ‘well’

Fully productive

Individual’s degree of Alignment

Degree of Commitment

Affective Continuance

Incongruent

Fully congruent

‘Doing the right things the right way for the

right reasons’

‘Doing the wrong things/ wrong way/

wrong reasons’

‘Having to stay’ ‘Wanting to stay’ ‘Feeling of ought to stay’

Page 40: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

Staff engagement: The challenge for organisations (The A-C Matrix)

© VaLUENTiS Ltd 2002-13

Likely to have performance,

attitudinal and/or

behavioural issues

More likely to have

performance/ capability issues

Knows what to do/achieve

but unlikely to achieve it

More likely to have objective

and/or ‘potential’

issues

Job gets done

Could do more

High probability of wasted

effort/ frustration

Less than optimally

productive - Could do

more ‘well’

Fully productive 15%

10%

10%

5% 15%

25% 10%

5% 5%

“Typical organisational

split”

Individual’s degree of Alignment

Degree of Commitment

Affective Continuance

Incongruent

Fully congruent

‘Doing the right things the right way for the

right reasons’

‘Doing the wrong things/ wrong way/

wrong reasons’

‘Having to stay’ ‘Wanting to stay’ ‘Feeling of ought to stay’

Page 41: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

DIVERSITY

EMPLOYEE CENTRICITY

EMPLOYER BRAND

HR GOVERNANCE

HR OPERATIONAL EXCELLENCE

LEADERSHIP

ORGANISATION CLIMATE ORGANISATION

COMMUNICATIONS

ORGANISATION DESIGN

PERFORMANCE ORIENTATION

RESOURCING

RETENTION

REWARD

TALENT MANAGEMENT

LEARNING & DEVELOPMENT

796

813

742

674

615

431

487

642

628 594 603

684

657 599 416

‘Out-performing’ (world class)

‘Out-performing’ (peer)

‘Comparable’ (peer)

‘Under-performing’ (peer)

VaLUENTiS Management Pathfinder®: Client example (extended version)

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With regard to the evaluation/measurement of people

management in your organisation/business unit, which one of

the following statements is the most accurate?

0% 5% 10% 15% 20% 25% 30% 35% 40%

We don’t measure on an ongoing basis

We have a basic scorecard of HR metrics like absenteeism, turnover etc

We have basic scorecard of HR metrics plus employee engagement scores

We have some form of evaluation across the various supporting people processes/systems

We use a sophisticated mix of measurement approaches including HR metrics, employee engagement, people

management, human capital reporting etc

Don’t know/Can’t decide

Source: VaLUENTiS Employee Engagement in Organisations –

‘State of The Notion’ report, September 2013

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People data availability & quality…

Page 44: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

Employee Engagement triangulation “Squaring the circle…”

New (re)hire data

Performance appraisal data

Case data

Other internal survey/assessment data

Exit data

Organisation event log data

Critical incident data

Social media data

Customer/client/patient/citizen/ passenger data

Employee/management survey data

Page 45: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

New (re)hire data

Performance appraisal data

Employee/management survey data

Case data

Other internal survey/ assessment data

Exit data

Organisation event log data

Critical incident data

Social media data

Customer/client/ patient/citizen data

“To this - The Engagement-Performance Matrix”

Performance area

‘Hawthorne’ for the 21st

Century organisation”

“There is much that

organisations can do for

themselves”

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Performance/ productivity/engagement ‘holes’…

Page 47: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

‘P12 modes of productivity’

More likely to embrace set

values

More likely to produce higher grade/quality of

work (less errors)

More likely to be flexible to

organisation needs (if equitable)

Less likely to suffer stress

(but more likely to suffer burn-out)

More likely to achieve goals set

More likely to ‘own’ their development

More inclined to input into ideas/

innovation

More likely to give discretionary effort above contractual

obligations

Less likely to move employer

Less inclined to take days off

More inclined to share knowledge

Applied across all job roles in the context of the role specificity and environment which impact on individual and

collective performance

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Example: Schering project 2003

HR- Focus

Page 49: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

© VaLUENTiS VBM Analytics methodology 2008-13

Human Capital

Practices

Human Capital

Practices External

Value

Proposition

External

Value

Proposition

Customer Satisfaction

Patient Satisfaction

Customer Loyalty

Patient

experience

Revenue Growth

Quality of services

Profitability Use of Resources

Employee Retention

Staff Retention

Individual/ team

Productivity

Individual/ team

Productivity

‘ Local’ Management

‘ Local’ Management

Cost control Cost control

Compliance Compliance

Portfolio mix Safety

X - selling Clinical treatment

Service Patient focus

Work values Work values

Line - of - sight Line - of - sight

Development Development

Reward Reward

Work environment Work environment

Employee Engagement

Staff Engagement

Leadership &

governance

Leadership &

governance

Shareholder value

Trust

performance Employer brand

Employer brand

Portfolio mix Prompt service

X - selling Environment

Service Community

Example ‘Macro’ model NHS version 1.20

Mapping employee engagement and

organisation performance (example):

Page 50: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

0.00% 10.00% 20.00% 30.00% 40.00% 50.00%

Yes

No

Don't know

0.00% 10.00% 20.00% 30.00% 40.00% 50.00%

Yes

No

Don't know

As an organisation/business unit, we link

our employee survey data with other

people data (e.g. appraisals, exit, absence

etc)?

As an organisation/business unit, we link our

employee survey data with other performance

data (e.g. sales, customer/patient/team

productivity, safety etc)?

Source: VaLUENTiS Employee Engagement in Organisations –

‘State of The Notion’ report, September 2013

Page 51: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

Management ‘positional mapping’…

Page 52: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

Embedding good employee engagement practice: ‘Mapping the management reality’

Individual Board members

Against embedding (Status quo OK)

Let it happen (Ambivalent/

non-committal)

Help it happen (qualified

supportive)

Make it happen (Actively

championing)

Senior managers

Middle managers

Line managers

Supervisors/Team leaders

Remember ‘actions speak louder than words…’

Page 53: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

“Often overlooked: Impaired management engagement and its impact…”

910

860

813

790

760

Management client cadre sample 2010-11 Sample size: 1400 managers representing 20,000 employees

Score range 200-1000 Source: VaLUENTiS VB-HR™ Engagement database

‘Line management’ engagement score by percentile

Page 54: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

‘Line Management’ engagement scores ‘bell curve’

Management client cadre sample 2010-11 Sample size: 1400 managers

(employee population: 20,000) Score range 200-1000

Source: VaLUENTiS Engagement database

14.5% below one standard deviation

738 1000 200

“Same data as previous slide – different graphic format…

Looking outside ‘the norm’ that’s one in seven line managers posing serious concern…”

13.9% above one standard deviation

“the norm”

Page 55: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

Employee Engagement: Good people managers versus average managers......

...Good managers High probability of:

1. Being self-aware (score well on EI)

2. Treating staff as the organisation’s ,not their own ‘little army’

3. Being pro-active, forward looking and confident no matter the situation

4. Being knowledgeable of (successful) people-management approaches

5. Understanding the importance of clear one-to-one communication and being consistent

6. Getting results but not at the expense (or over-reliance on good performers)

7. Making tough calls when required for the benefit of the team

8. Don’t postpone/move important events such as individual reviews/appraisals etc

9. Understanding that most managerial decision-making is about equity in people situations/issues

10. Taking a natural interest in people development above the mandatory level

11. Challenging team performance in different ways

12. View management role as a ‘privilege’, not a right

...Average/poor managers High probability/tendency of:

1. Limited self-awareness

2. Treating staff as their own resource rather than organisation’s

3. Being reactive, backward-looking and/or display uncertainty on too many occasions

4. Being limited in their understanding of people management

5. Their communication too often being seen as vague or inconsistent when interacting with staff

6. Get results but tend to have higher absenteeism or turnover of staff

7. Deferring tough calls, preferring to political expediency even at the expense of others

8. History of postponing or procrastinating on individual events such as individual reviews/appraisals

9. Limited awareness of or disregard the equity principle when making managerial decisions

10. Show little interest in individual development save for mandatory skill requirements

11. See team management as a ‘chore’

12. View management role as a ‘right’, not a privilege

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The ‘people competency’ of line management – the organisation view......

...common problems • Lack of understanding across managers as to

what good people management is and its impact

• Varied mix of line managers with variation in people practice and resulting issues

• No set bar to becoming line ‘people manager’, i.e. no ‘license to manage’

• Too many ‘B’-players in managerial positions who limit employee engagement potential

• Too often, HR as ‘personnel function’ compensates for deficiencies

...’fixes’ • Clear communicated framework of good people

management practice together with learning exposure

• Utilise management competency platform with structured programme of learning and assessments

• Adopt ‘license to manage’ standard with appropriate hurdles and gradings

• Instigate talent assessment where necessary, with career option route-paths including exit

• Assess if issue relates to cultural expectations, vague HR role definition/value proposition or all three, in conjunction with above actions

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With regards to the competencies of people managers which of

the following statements best describes your organisation/

business unit?

0% 5% 10% 15% 20% 25% 30% 35%

Current people managers with requisite skills are there by luck through the recruitment process rather than anything else

Current people managers with requisite skills are there by luck through the recruitment process rather than anything else though some managers have

received some management training

Most, if not all, of our managers have been exposed to some form of structured leadership/management development

Most, if not all, of our managers have been exposed to some form of structured leadership/management development and continue to do so

ongoing

Some of our managers (through selection) have been exposed to some form of structured leadership/management development

Source: VaLUENTiS Employee Engagement in Organisations –

‘State of The Notion’ report, September 2013

Page 58: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

Does your organisation/business unit operate a ‘license to

manage’ (or similar) threshold for managers to become people

managers?

Yes 20%

No 68%

Don't know 12%

Source: VaLUENTiS Employee Engagement in Organisations –

‘State of The Notion’ report, September 2013

Page 59: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

Management education, assessment & reinforcement…

Page 60: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

EE based Leadership Development…

Discussion groups

High

High

Low Learner autonomy over content

Lear

ner

au

ton

om

y o

ver

pro

cess

CBT Traditional classroom lecture

Qualifications

Informed reading

Action Learning events

Role Plays

Simulations /case studies

Mentoring, Coaching, Shadowing

Secondments

Structured reading

EE work sessions

Page 61: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

Line of Sight

Work Environment

Reward & Recognition

Learning & Development

Operating culture

Awareness of objectives/goals

Individual’s behaviour aligned

Individual ‘fit’ with assigned roles

Performance management effectiveness

People receiving timely feedback/acted on

Know capabilities for promotion

SMART targeting/goals

Values alignment

Local management/leadership role model

Intra-team relations/cohesiveness

Have resources to carry out job

Team effectiveness/trust

Physical environment/facilities

Work-life balance

Sense of accomplishment

Team diversity

Reward equity intra-organisation

Reward equity extra-organisation

Benefits package component balanced

Performance-reward link

Recognition for contribution

Promotion for contribution/performance

Incentives encourage correct behaviour

Incentives encourage achievement

Individuals possess requisite competencies

Utilisation of individual skills

Pro-active training/ learning

Opportunities for personal development

Structured coaching/mentoring

Job/role architecture

Career progression paths

Succession planning

Inter-team relations/cohesiveness

Organisation decision rights

Performance/talent management

‘Corporate’ leadership

Pride with organisation

Effective decision-making

Work values

Organisational trust & openness

3

3

2

2

3

8

2

4

‘5D’ Employee Engagement case study diagnostic sheet © 2004-12

OVERALL

OVERALL

OVERALL

OVERALL

OVERALL

8

10

5

22

12

27

6

25

12

15

9

19

22

20

24

21

15

11

12

7

14

6

11

9

35

31

44

29

25

25

33

21

27

30

28

21

24

14

24

20

1

3

4

4

1

5

5

6

12

18

13

15

7

22

17

17

11

23

33

23

12

32

18

17

24

13

7

9

19

10

5

19

25

28

32

31

37

22

33

20

28

15

21

18

24

9

22

21

3

6

5

3

8

6

3

7

6

17

19

20

22

13

17

21

21

24

26

29

25

20

21

29

5

7

7

12

8

15

7

6

42

29

25

22

25

32

33

24

23

17

18

14

12

14

19

13

3

2

5

3

5

4

9

5

17

24

15

21

21

12

21

16

21

32

25

26

31

21

29

18

6

9

7

10

8

15

10

16

31

20

29

20

21

29

24

28

22

13

19

20

14

19

7

17

8

10

9

5

3

4

3

6

22

16

15

26

11

26

14

21

26

19

23

26

17

29

25

30

15

18

10

14

14

13

11

14

18

24

28

21

31

17

29

20

11

13

15

8

24

11

18

9

This is an example where front-line client projects meet management learning. VaLUENTiS has customised Harvard/ECCH case studies by adding employee engagement profiles along with human capital data and analytics to create a far more enriched and practical learning experience for managers/practitioners. It’s also unique and relatively cheap to deliver.

Page 62: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

Problem Solving

Case study

1 day workshop

Module: Employee Engagement

Pre-module preparation

2-hr ‘work’ sessions ½ day workshop

CI CI CI Critical Incident

Mini- case study

Problem solving

Emp

loye

e b

ench

mar

k d

ata

(no

min

al s

et)

Pre-course assessment questionnaire

Post-course assessment questionnaire

Level 2 evaluation diagnostic

Level 2 & 3 evaluation diagnostic

Emp

loye

e b

ench

mar

k d

ata

(tim

e se

ries

set

)

3-6 Months (typical timeframe)

CI CI CI Critical Incident

Behavioural event journal

Post-course assessment

questionnaire

Pre-course assessment questionnaire

Structured coaching/ work group

Example of Employee Engagement structured module…

Page 63: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

The theory states that monitoring and maintaining urban environments in a well-ordered condition may stop further vandalism as well as an escalation into more serious crime.

The ‘theory’ applied translates to: monitoring and maintaining work environments in a well-ordered management condition may stop further engagement erosion as well as an escalation into more serious disengagement issues.

Applied to employee engagement…

The ‘Broken Windows’ hypothesis

Page 64: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

‘Game management’…

Page 65: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

Mo

del

s St

rate

gies

Im

ple

men

tati

on

Le

arn

ing

Contents

1. Engagement strategies

2. Engagement operating ‘system’ models and analytics templates

3. Question-statement selection and construct design

4. Measurement index construction, maintenance and reporting

5. Engagement Driver Factor (EDF) analysis

6. Engagement ‘forcefield’ analysis

7. EE project management methodology and flowcharts

8. Engagement ‘issue work-through’ tools

9. Management learning programme design and evaluative criteria

10. Engagement Transformation Programme (ETP) methodology

11. Core applied theory summary capsules

12. Human Capital Management framework

EE playbook 4

Game Management EE playbook example content

Page 66: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

Does your organisation/business unit utilise an ‘Employee

Engagement playbook’…?

0% 10% 20% 30% 40% 50% 60% 70% 80%

Yes, in full

Yes, in part

Currently under design

No

Don’t know

Source: VaLUENTiS Employee Engagement in Organisations –

‘State of The Notion’ report, September 2013

Page 67: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

67

Page 68: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

Management education,

assessment & reinforcement

‘Not so much climbing as jumping the curve’…

ACTIONING

INFRA-STRUCTURE

People data

availability & quality

Employee survey

information & other

evaluations Management ‘positional mapping’

‘Game management’

Performance/ productivity/engagement ‘holes’

Page 69: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

Little. Limited.

Mostly ephemeral in nature.

Exists in pockets with variation in line management.

Good working knowledge embedded across

organisation.

No definition in use. Most likely borrowed

without any real ownership, or ‘false’ ownership.

Maybe borrowed with internalisation or adapted after some organisational

focus.

Distributed ‘ownership’, whether borrowed, adapted

or created.

Limited to absenteeism metrics, employee surveys

seen as event driven if done.

Probably undertaking surveys but with no valid

construct; response rate/PR main focus.

Will do measurement basics, even to the extent of

engagement index etc. Tick box is main focus.

People management evaluation/measurement

seen as ‘core’ on a par with CRM , finance etc.

Probably in the form of basic training/management

courses.

Probably in the form of basic management courses. Most likely carry out some form of

branded programme.

Will have a number of actioning elements in place but not necessarily joined

up.

Will have necessary ‘toolkit’ to hand with ongoing programmes to suit organisation focus.

Does not exist.

May have something articulated on ‘strategies’.

Most likely collection of irrelevant case studies.

Playbook in the form of ‘manager manual’ or on-line knowledge-share. Still being

developed.

Easy access in different e-/physical formats at

different levels. Signals ‘embedded’ intent.

Will have varied mix of skilled people managers. Existing good performers

more through luck.

Will have varied mix of skilled people managers. Existing good performers

more through luck.

Will have varied mix of skilled people managers but level of competency higher than Play-Act organisations.

Cohort of well-trained people managers exists with

talent pools. Regular evaluation/reinforcement.

‘PLAY DOWN’ ‘PLAY ACT’ ‘PLAY SAFE’ ‘PLAY MAKE’

I Grounded understanding of employee engagement

II

III

IV

V

VI

Working definition of employee engagement

Measurement wisdom

Actioning Infrastructure

EE-Performance Playbook

Competent leadership/ management

The ‘4-ball’ Employee Engagement reality matrix

Pillar

69

NEGATIVE NEGATIVE NEUTRAL POSITIVE Overall value to organisation performance/competitive advantage

Page 70: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

Employee Engagement in Organisations

0% 10% 20% 30% 40% 50% 60%

Play Down

Play Act

Play Safe

Play Make

Source: VaLUENTiS Employee Engagement in Organisations –

‘State of The Notion’ report, September 2013

*Note: Based on VaLUENTiS E3 INDEX scoring system

Page 71: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

‘Think HR. Think Human

Capital.’ Tour 2013

THANK YOU.

‘Your mission should you choose to accept it…’

Page 72: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy
Page 73: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

Nicholas J Higgins [email protected] VaLUENTiS Ltd, 2nd Floor, Berkeley Square House, Berkeley Square, London W1J 6BD HO: +44 (0)207 887 6108 M: +44 (0)7811 404713 www.valuentis.com www.ISHCM.com www.NicholasJHiggins.com www.HCglobal.blogspot.com

Page 74: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

THE EE

PLAYBOOK

Line of sight

Work environment

Operating culture

Development

Reward (equity)

Performance link

What we bring…

Employee Engagement Solutions Evidenced based definition,

understanding and application

Measurement wisdom and expertise

On-line tools and analytics

Survey design expertise

Project management

expertise

Actioning strategies and

tactics

Frontline blended learning

‘License to manage’ programmes

Senior management feedback sessions

Global reach

‘Ten years of innovation…’

VaLUENTiS Ltd, 2nd Floor, Berkeley Square House, Berkeley Square, London W1J 6BD HO: +44 (0)207 887 6108/21 www.valuentis.com www.ISHCM.com

Page 75: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

Management

Pathfinder®

Think Human Capital.

Page 76: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

Professional Services www.valuentis.com

Smart. Smarter. Smartest...

‘PEOPLE SCIENCE®’

Organisation Intelligence

to improve organisation performance

• Human Capital Management Evaluation • Employee Engagement • Talent Management • Workforce Productivity & Performance • Predictive Analytics • HC Forensics & Risk • HR Function ROI Analysis • Organisation Measurement • Management Education • Organisation Strategy

SOLUTIONS

‘The leading human capital management specialists’

Page 77: VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy

Think HR. Think Human Capital.™

Only one place to learn Human Capital Management. Being human is unique. Attaining an M Sc in HCM is even more so.

2nd Floor, Berkeley Square House, Berkeley Square, London W1J 6BD Tel: +44 (0)207 887 6121 Fax: +44 (0)207 887 6100 [email protected] www.ISHCM.com

…+