valuentis employee engagement wguhwgut hrds jan 2013 final dist copy
DESCRIPTION
NJH presentation given at HR Directors Summit, ICC Birmingham UK, January 2013TRANSCRIPT
Employee Engagement: What got us here won’t get us there
The new reality for ambitious HR functions
‘Think HR. Think Human
Capital.’ Tour 2013
HR Directors Summit ICC Birmingham UK 2013
Nicholas J Higgins, DrHCMI MSc Fin (LBS) MBA (OBS) MCMI
CEO, VaLUENTiS Ltd & Dean, International School of Human Capital Management (‘ISHCM’)
Video version available through WTG on-demand service.
All rights reserved. No part of this presentation may be reproduced, translated, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, microfilming recording or otherwise without the express permission of the author.
Please e-mail [email protected] regarding any matters of reproduction/ organisational distribution.
© 2013
NOTE:
Slides [4 to 52] on auto presentation to music introduction.
Welcome….
2013 sees VaLUENTiS celebrate its tenth year….
7
Some notable achievements…
First British firm to introduce Employee Engagement model (known as the ‘5D’)
First to introduce standard ‘employee engagement surveys’ as opposed to ‘generic’ employee
surveys
First to publish live client HR scorecard linking with employee engagement
First to introduce ‘Qual-Quant’ people management evaluation tool (‘Management Pathfinder’)
First to introduce global value-based HR function (VB-HR™) profiler
First to publish global Human Capital Reporting Standards (GHCRS2006) including the ‘PeopleFlow’, ‘HC Operating’ and ‘HC Productivity’ template statements…
Globally, first to set-up dedicated, practitioner-based Business School on Human Capital
Management and introduce ‘M. Sc. in Human Capital Management’
First School to offer Masters qualification with CMAS® technology (‘non-essay’ based) and for less than £1000
HCMI first to offer membership by association not subscription……
VaLUENTiS continues to support those organisations and HR functions who wish
to push the boundaries on employee engagement and organisation
performance……….
And so let me begin…
A long time ago in a far, far away place we started with the question:
If employee engagement was the answer, what was the question?
And, what constituted employee engagement and how did it impact on
performance?
Which led us to evaluating much empirical research, and, finally to this…
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
But organisations needed something to use practically…
That led to the 5D construct…
Line of sight
Work environment
Operating culture
Development
Reward (equity)
Performance link
Five domains…
Plus performance
Which used seven core theories as its root structure…
VaLUENTiS 5D Employee Engagement: Core empirical theories that combine to form the root structure of the VaLUENTiS model
Source: The antecedents of Employee Engagement, Nicholas J Higgins - VaLUENTiS technical paper 2003
Wider Group
Immediate Team
Organisation Individual
•Motivation theory
•Goal setting and task theory
•Equity (justice) theory
•Group theory
•Trust theory
•Trait theory
•Fayol - Principles of management
•Taylor - Scientific management
•Expectancy theory
•Commitment theory
•Teams theory
•Conflict theory
•Needs theory
•Organisation performance & measurement*
•Social cognitive/ self efficacy theory
Human Capital Management practice/systems:
•Cognitive dissonance
•Wellbeing/Burnout
•Job satisfaction
•Organisation Citizenship Behaviour
•Learning theory
•McGregor Theory X/Y
•Behaviourism
•Training & Development
•Performance management
•Reward & recognition
•Resourcing & selection
•Organisation communication
•Talent management
•Leadership
•Organisation culture
•Employer brand
•Human capital retention
•Organisation design
•Decision-making theory
•Emotional Intelligence
•Workforce diversity
•Mayo/Hawthorne studies
•Tavistock – Socio-technical systems
•Lewin (MIT) - group dynamics/behaviour
•Psychological contract
•Leadership theory
•Organisational ‘fit’ theory
•Other I/O psychology contributions
•High performance work systems
•Munsterberg - Industrial psychology
•Follett - Management relations/integration
•Hertzberg – Two factor theory
•Drucker – Practice of management
•Kahn – Personal engagement
•Likert – Management system/measurement scale
“But all the others have a part to play…”
Over time working with clients, we noticed that organisations needed to focus on six
areas to sustain successful employee engagement…
Known as the ‘Six Pillars’…
EE PLAYBOOK
Grounded understanding of Employee Engagement
Working definition of Employee Engagement
Measurement wisdom
Actioning infrastructure
Dynamic EE-Performance ‘playbook’
DELETE Competent leadership/management
Initial research and observation revealed essentially four types of organisation…
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
To create…
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
Which leads us to…
A quick exercise…
Choose your organisation (or business unit/division/directorate
etc)…
And decide which box mostly describes your chosen organisation/organisation
unit…
‘PLAY DOWN’ ‘PLAY ACT’ ‘PLAY SAFE’ ‘PLAY MAKE’
The ‘4-ball’ Employee Engagement reality matrix
Pillar
Little. Limited.
Mostly ephemeral in nature.
Exists in pockets with variation in line management.
Good working knowledge embedded across
organisation.
‘PLAY DOWN’ ‘PLAY ACT’ ‘PLAY SAFE’ ‘PLAY MAKE’
I Grounded understanding of employee engagement
The ‘4-ball’ Employee Engagement reality matrix
Pillar
‘PLAY DOWN’ ‘PLAY ACT’ ‘PLAY SAFE’ ‘PLAY MAKE’
II Working definition of employee engagement
The ‘4-ball’ Employee Engagement reality matrix
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.
‘PLAY DOWN’ ‘PLAY ACT’ ‘PLAY SAFE’ ‘PLAY MAKE’
III Measurement wisdom
The ‘4-ball’ Employee Engagement reality matrix
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.
‘PLAY DOWN’ ‘PLAY ACT’ ‘PLAY SAFE’ ‘PLAY MAKE’
IV Actioning Infrastructure
The ‘4-ball’ Employee Engagement reality matrix
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.
‘PLAY DOWN’ ‘PLAY ACT’ ‘PLAY SAFE’ ‘PLAY MAKE’
V EE-Performance Playbook
The ‘4-ball’ Employee Engagement reality matrix
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.
‘PLAY DOWN’ ‘PLAY ACT’ ‘PLAY SAFE’ ‘PLAY MAKE’
VI Competent leadership/ management
The ‘4-ball’ Employee Engagement reality matrix
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.
Putting it together…
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
What does your quick assessment tell you…?
And now, a few questions for you…
No pressure!
1. Which decade were employee surveys first introduced as a management
tool…?
2. Which famous experiments took place at Western Electric Co in the 20th
Century…?
3. Which US company is most associated with employee surveys and causal studies linking to performance …?
4. Which author, with an article published in 1990, is attributed as being
the first to use the term ‘employee engagement’…?
5. Employee engagement is…? a) A work-place approach b) A concept c) A strategy d) All of these e) Something else
6. What is the connection between job satisfaction and job performance…?
7. What is ‘acknowledged’ as the single biggest factor in an individual’s
engagement at work…?
8. What’s wrong with Maslow’s pyramid?
9. What are the SEVEN core empirical theories that form the root structure of VaLUENTiS 5D employee engagement
model?
10. Complete this ‘well-known phrase’: “If employee engagement was the
answer, …………………………......?”
How did you do…?
Employee Engagement: What got us here won’t get us there
The new reality for ambitious HR functions
53
Part I
Getting us here…
53
1. Which decade were employee surveys first introduced as a management
tool…?
2. Which famous experiments took place at Western Electric Co in the 20th
Century…?
3. Which US company is most associated with employee surveys and causal studies linking to performance …?
A look back at The original Sears E-C-P Chain… (an early forerunner of ‘employee engagement’ with causal performance link)
Attitude
about the
job
Employee
Behavior
Customer
Impression
Customer
recommendations Service
Helpfulness
The Employee-Customer-Profit chain at Sears By Anthony J. Rucci , Stephen P. Kirn and Richard T. Quinn Harvard Business Review Jan-Feb 1998
Attitude
about the
company
Merchandise
Value
Employee
retention Customer
retention
Return on assets
Operating margin
Revenue growth
5 unit increase in employee
attitude
13 unit increase in customer impression
0.5% increase in revenue growth
A compelling place to work A compelling place to shop A compelling
place to invest
57
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…
59
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
59
4. Which author, with an article published in 1990, is attributed as being
the first to use the term ‘employee engagement’…?
61
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.”
61
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…”
62
5. Employee engagement is…? a) A work-place approach b) A concept c) A strategy d) All of these e) Something else
6. What is the connection between job satisfaction and job performance…?
7. What is ‘acknowledged’ as the single biggest factor in an individual’s
engagement at work…?
Illustrating the management influence using VaLUENTiS 5D Employee Engagement Framework
© VaLUENTiS Ltd 2002-12
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
A manager has influence in many areas of engagement, some more than others… 66
8. What’s wrong with Maslow’s pyramid?
9. What are the SEVEN core empirical theories that form the root structure of VaLUENTiS 5D employee engagement
model?
VaLUENTiS 5D Employee Engagement: Core empirical theories that combine to form the root structure of the VaLUENTiS model
Source: The antecedents of Employee Engagement, Nicholas J Higgins - VaLUENTiS technical paper 2003
Wider Group
Immediate Team
Organisation Individual
•Motivation theory
•Goal setting and task theory
•Equity (justice) theory
•Group theory
•Trust theory
•Trait theory
•Fayol - Principles of management
•Taylor - Scientific management
•Expectancy theory
•Commitment theory
•Teams theory
•Conflict theory
•Needs theory
•Organisation performance & measurement*
•Social cognitive/ self efficacy theory
Human Capital Management practice/systems:
•Cognitive dissonance
•Wellbeing/Burnout
•Job satisfaction
•Organisation Citizenship Behaviour
•Learning theory
•McGregor Theory X/Y
•Behaviourism
•Training & Development
•Performance management
•Reward & recognition
•Resourcing & selection
•Organisation communication
•Talent management
•Leadership
•Organisation culture
•Employer brand
•Human capital retention
•Organisation design
•Decision-making theory
•Emotional Intelligence
•Workforce diversity
•Mayo/Hawthorne studies
•Tavistock – Socio-technical systems
•Lewin (MIT) - group dynamics/behaviour
•Psychological contract
•Leadership theory
•Organisational ‘fit’ theory
•Other I/O psychology contributions
•High performance work systems
•Munsterberg - Industrial psychology
•Follett - Management relations/integration
•Hertzberg – Two factor theory
•Drucker – Practice of management
•Kahn – Personal engagement
•Likert – Management system/measurement scale
69
“But all the others have a part to play…”
10. Complete this ‘well-known phrase’: “If employee engagement was the
answer, …………………………......?”
71
Absenteeism, turnover, ill-discipline, manager resistance, communication and/or trust issues etc are all, to a great degree, manifestations of poor employee engagement in some form.
“Many case studies and indeed academic comment, however, seem to ignore this fact. Thus, we’re seemingly praising ourselves for putting a fire out – the very one we started as an organisation! What happened to the ‘Why’ in the first instance?
As an industry practitioner question - What’s going on here?”
Observation 101
71
72
Part II
Getting us there…
72
Back to 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
73
What got us here/Getting us there…1
Grounded understanding of Employee Engagement
• Insufficient appreciation of existing empirical research
• Evidence Based Management still not widespread
• Thinking ‘too simple’ (instead follow Einstein’s dictum)
74
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
75
HR as…
Evidenced Based
Management (EBM)
Practitioner
Objective: Proficient knowledge embedded across HR function
to enable good working knowledge to be embedded across
organisation.
What got us here/Getting us there…2
Working definition of Employee Engagement
• Many definitions omit productivity or performance • Definitions vague – difficult to translate to frontline • Too few involved in the ‘understanding process’
77
78
“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/ISHCM
2005
Employee Engagement Definition One that provides the basis of a measurable construct
(and simplified from the overall EE complexity):
*Consistent with Kahn’s original paper; employee engagement as a concept but with a more performance-oriented and dimensional construct. 78
‘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
79
“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 2002-12
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’
80
Staff engagement: The challenge for organisations (The A-C Matrix)
© VaLUENTiS Ltd 2002-12
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’
81
HR as…
Knowledge Facilitator
Objective: HR function facilitates ‘organisation learning’ and
enables distributed ‘ownership’ of working definition of employee
engagement for frontline use.
What got us here/Getting us there…3
Measurement wisdom • Poor survey design, measurement and analysis • ‘Laissez-faire’ process, over-focus on response rate • Over-focus on line item benchmarking
83
Survey instrument design & measurement expertise
HC
M s
ub
ject
mat
ter
exp
ert
ise
Myopic
Result: misleading or erroneous
interpretation
20/20 Foresight
Result: organisation has sufficient in-depth, robust
knowledge to act upon
Unfocused
Limited insight due to limitations of HCM knowledge
Blind
Result: end up with ‘garbage in-garbage out’ syndrome
HIGH
LOW HIGH
© ISHCM 2006
The employee survey expertise model
“Still too many in the red box…” 84
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 cheap to deliver (and also effectively on-demand).
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 data
Employee/management survey data
86
HR as…
Smart Operator
Objective: HR function collectively possesses (or has access to)
measurement nous in people management evaluation.
What got us here/Getting us there…4
Actioning infrastructure • Tendency to focus on one-off isolated actions • Still treated as ‘imposed task’ not as part of culture • Over-focus on PR/Branding
88
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…” 89
Employee Engagement - Actioning Infrastructure
4
3
1
2
“Thus…” 90
HR as…
‘Perpetual’ Programme
Director
Objective: HR possesses the necessary ‘executive toolkit’ to
hand, in driving/creating ongoing engagement programmes ‘to
embed’ that complement organisation focus.
What got us here/Getting us there…5
EE PLAYBOOK Dynamic EE-Performance ‘playbook’
• No EE playbook • Little knowledge capture • Signalling opportunities missed
92
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
EE playbook example content
93
“Have you got one…?”
“Would you like one…?”
HR as…
‘EE Playbook’ Guardian
Objective: HR function creates, maintains and evolves the ‘EE
playbook’ on behalf of the organisation to enable frontline
dissemination (whilst also signalling serious intent/reinforcement).
What got us here/Getting us there…6
DELETE
Competent leadership/management • Too few managers with understanding of EE • Little focus on managers own ‘engagement’ • Still too much tolerance of poor or average
leadership/management 95
‘Line Management’ engagement score by percentile
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 Engagement database
“Often overlooked:
Impaired manager engagement…
And its impact…”
96
‘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 ‘norms’ that’s one in seven line managers posing serious concern…”
13.9% above one standard deviation
“And so…” 97
HR as…
People Management
‘Enforcer’
Objective: HR function as ‘enabler/enforcer’ to ensure cohort of
well-trained/engaged people managers exists within organisation.
EE Pillars and HR Masks…[recap]
EE PLAYBOOK
Grounded understanding of Employee Engagement
Working definition of Employee Engagement
Measurement wisdom
Actioning infrastructure
Dynamic EE-Performance ‘playbook’
DELETE Competent leadership/management
EBM Practitioner
Knowledge Facilitator
Smart Operator
‘Perpetual’ Programme Director
‘EE Playbook’ Guardian
Management ‘Enforcer’
99
100
HR functions have to embrace the fact that the de facto ‘reason for being’ is to be instrumental in optimising employee engagement within their organisation.
What got us here/Getting us there…7
“It’s no good talking about recruitment or talent management or any other HR processes for that matter if employee engagement is not embedded as core…
…Impaired engagement means individual effort and talent is just wasted. So therefore, what is the point of it not being de facto?”
100
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
Where is your organisation currently…? 101
The ‘Play-Maker’ programme approach to Employee Engagement:
The first 100 days
VaLUENTiS has developed the ‘six-pillar programme’ to help organisations to get on/stay on the ‘Play-Maker’ approach. We call it the ‘100 day EE bootcamp’ for organisations. Want to try?
103
The Conference Board: CEO Top Ten Challenges 2013
2013 rank CHALLENGES 2013 2012 rank
N = 729 N = 776
1 Human capital 2
2 Operational excellence na1
3 Innovation 1
4 Customer relationships 7
5 Global political/economic risk 3
6 Government regulation 4
7 Global expansion 5
8 Corporate brand and reputation 9
9 Sustainability 8
10 Trust in business na2
Source: The Conference Board CEO Challenge 2013 (www.ceochallenge.org)
1Operational excellence replaced Cost optimisation; 2Trust in business replaced Investor relations
“Just in”
103
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.
NEGATIVE NEGATIVE NEUTRAL POSITIVE
‘PLAY DOWN’ ‘PLAY ACT’ ‘PLAY SAFE’ ‘PLAY MAKE’
Overall value to organisation performance/competitive advantage
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
Getting us there the ‘Play Maker’ way…
Pillar
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
“Finally, remember the performance link - Employee Engagement triangulation converts from...”
105
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”
106
‘Your mission should you choose to accept
it…’ ‘Think HR. Think Human
Capital.’ Tour 2013
THANK YOU.
108
Employee Engagement: What got us here, won’t get us there The new reality for ambitious HR functions
Presenter: Nicholas J Higgins
CEO, VaLUENTiS &
Dean, International School of Human Capital Management (‘ISHCM’)
‘Think HR. Think Human Capital.’
Tour 2013
VaLUENTiS-ISHCM Productions 2013 ……
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
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
Management
Pathfinder®
Think Human Capital.
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’
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
…+