Your SlideShare is downloading. ×
Metrics that Matter Engagement Edition
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Introducing the official SlideShare app

Stunning, full-screen experience for iPhone and Android

Text the download link to your phone

Standard text messaging rates apply

Metrics that Matter Engagement Edition

775
views

Published on

The evidence is clear and extensive—an engaged workforce is a more productive workforce and is more likely to drive positive financial performance. Metrics that Matter Engagement Edition provides the …

The evidence is clear and extensive—an engaged workforce is a more productive workforce and is more likely to drive positive financial performance. Metrics that Matter Engagement Edition provides the technology and measurement tools to help measure and improve your organization’s overall engagement levels. The Engagement Edition helps examine the effectiveness of your engagement initiatives, giving you the ability to improve your programs using data captured directly from your employees. From increasing revenue and profitability for your organization to boosting productivity, driving employee retention and improving safety metrics, research clearly shows that organizations that embrace the promise of a truly engaged organization benefit greatly.

Published in: Business

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
775
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
26
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • Our session for today will consist of 3 parts. First, we’ll take a look at the state of employee engagement today. Then I’ll review what makes up the Metrics that Matter Talent Analytics suite. The Engagement Edition is one of 6 editions. And then we’ll spend the majority of our time seeing a good engagement analytics process in action.I expect you two take away 2 things:New ideas for improving your approach to measuring employee engagementAn understanding of how Metrics that Matter can help you in this effort
  • Let’s start with our serious purpose. Employee Engagement: You’re trying to create the kind of employees that are featured in every stock photo of the business world.I’m poking a bit of fun, because…
  • You already know that Employee Engagement is tremendously important. Study after study has demonstrated that the level of engagement of the workforce has a more substantial impact on the bottom line than just about anything else.Organizations with High Engagement have shareholder returns that are 19% above average.Whereas Low Engagement organizations trail average shareholder returns by 44%The link between employee engagement and turnover or attrition is strong and obvious. By transitioning to a High Engagement culture, you can reduce turnover by up to 87%. With the cost of replacing an employee sitting at 6-9 months of salary, this is well worth the effort.And finally, in the new economy, it’s not enough to just get higher productivity out of the workforce. We need innovation. engaged employees generate quality creative ideas at a rate 56% higher than others.So given that this is so important, this should be commanding a lot of strategic focus and we’ve probably eliminated all the disengagement at our organizations, right?
  • Not so much. It still remains a major issue for most organizations. Less than 1 in 3 employees can be considered engaged.Almost the same number are Actively Disengaged, which means they’re providing bad experiences to customers and dragging down the productivity and engagement of others.There’s a viral effect to disengagement. This is evidenced by the fact that managers with low engagement are 3 times more likely to have disengaged employees.And ultimately this all translates into the grim facts facing the intent of employees to stay with their current organizations. 57% say that they definitely will be leaving when they find the right opportunity. Only 8% say that they’re content to stay.
  • In the face of all of this, what’s most confounding to me is the meager and slipshod approach that most organizations take to measuring employee engagement.
  • Does this sound familiar?Let’s deploy our annual employee engagement or culture survey once a yearAnd we’ll keep track of voluntary vs. involuntary turnover.Uh oh.No wonder why we’re not seeing the needle move on employee engagement.
  • The problem as I see it is that we need a tighter integration between HR or Talent Management and the business when it comes to measuring and managing employee engagement. It can no longer be a once-a-year project sitting solely within HR.So what do we do to fix it?
  • First, we need to Stop Missing the Trees for the ForestWe need to get Tactical in order to get StrategicThe problem with the recommendations from annual engagement / culture surveys is that they are so vague and sweeping that often nothing gets done. These are forest-level suggestions.What we need are grassroots engagement recommendations at the employee and manager levels that are tactical, tangible, and actionable. These recommendations need be a constant stream, rather than a once a year deluge.
  • And secondly, we need to differentiate talent when it comes to measuring engagement and turnover.Combine performance and competency metrics with engagement and turnover data.What drives engagement for your high performers is many times more important than your low performers.We need to make turnover metrics meaningful.Voluntary/ Involuntary Turnover doesn’t matter nearly as much as Healthy Turnover of your low performers and Regrettable Turnover of your high performers.
  • Think about analytics as the answer to the questions you should be asking… Analytics provides you with these insights and supports decisions for continuous improvement. These are just some of the many questions that Engagement Analytics can answer.
  • And that brings us to the Metrics that Matter Talent Analytics Suite
  • 6 Components of Talent Analytics Suite:OnboardingLearningLeadershipCapabilities EngagementPerformance
  • Today, we will be walking through the key metrics that make up modern engagement analytics, how you go about gathering that data in an automated and continuous fashion, and how to visualize the results in meaningful reports and dashboards so that employees, managers, and HR can take action to improve engagement and results.
  • Automated Analytics: our aim is to automate as much as possible. You’re busy people. You need technology to do the work for you.IntegrationMany kinds of information can be fed into MTM (employee info. org structure, etc.)Key business systems can be integrated with MTM (CRM, finance and accounting systems)This allows people to see how much talent is driving business resultsData Collection: The Onboarding Edition includes expert-designedtemplates for gathering information from employees in the form of surveys, 360s and tests.Employees, managers and talent professionals get the info they need to make better informed decisions
  • Let’s bring this to light with a day-in-the-life story of people leveraging analytics to make better decisions when it comes to engaging employees.Welcome to the headquarters of InnovateU. They’ve become a major biotech player in just a few years. That kind of rapid growth has been great for shareholders, but left some shortcomings in their approach to talent development that they’ve been working to address.
  • Alea is the person at InnovateU that is making things happen in the Talent Management department. She hadgreat success with Leadership Development and now owns Employee Engagement program:Employee engagement used to be a once-a-year studyNow it’s an ongoing program, analyzed monthlyContinuous improvement approachWants to get key info to managers for grassroots change
  • One of the first things Alea did was to set up an engagement dashboard to track the macro key performance indicators around employee engagement, productivity, and turnover.The dashboard pulls in metrics from multiple systems into one place, combining workforce metrics, financial data, and survey results.What’s most important, though, is that these metrics are all tracked and updated monthly against goals. This allows her to see what’s working and what areas still need improvement.
  • One of the metrics changes that Alea made was to switch to Net Promoter Score or NPS as a key engagement metric.Net Promoter has been used to measure customer loyalty for many years. But leading edge companies have begun to adopt it for talent measurement purposes. There are a couple reasons for doing so:By asking people to stake their reputation and make a recommendation for your company, it becomes a more serious and meaningful predictor of loyalty.Since Net Promoter is likely used and understood by other areas of your business for customer measurement, it becomes a common language that HR can use for instant credibility and understanding with our business partners.The way it works is to ask on a 0-10 point scale “How likely are you to recommend this company as a great place to work?”Those that answer 9-10 are your promoters: very loyal, productive, and innovative.Those are answer 7-8 are passive or fence sitters. They’re generally content, but they don’t necessarily give it their all. If a recruiter called them up with a slightly higher salary offer, they’d be gone.And those that answer 0-6 are your detractors. The well-poisoners. The detract from productivity and the engagement of others.To calculate Net Promoter, take the % of promoters minus the % of detractors. The results run from -100 to 100.
  • When tracking attrition or turnover, Alea did not see much value in the traditional metrics of voluntary vs. involuntary turnover. The question that was nagging her was whether the people leaving were ones that the organization would want to see leave or not.So she reframed it to look at:Healthy Turnover: when a low performing employee is managed out of the organizationRegrettable Turnover: when a high performing employee leavesBreaking metrics down in this manner revealed differences across business functions that were previously unknown. And the function that she’ll be focusing on the most in the next month is the Sales function.
  • The Healthy and Regrettable Turnover metrics roll up into an overall Quality of Turnover key performance indicator.Quality of Turnover is calculated by taking 100% minus the % of employees that are recurring low performers minus the % of employees that were high performers and exited.So if in a given period, 9% of employees had low performance ratings 2 or more periods in a row and 4% of employees were designated as high performers, then our Quality of Turnover is 87%.
  • To get a handle on why those high performers were leaving, Alea instituted an automated exit interview survey.Exit interviews had previously been done at the organization, but they were inconsistent and manual. The information was not easily aggregated.So now, whenever an employee is designated as leaving the organization in the HRIS, the data is sent to Metrics that Matter, and an automated email is sent to that employee requesting them to complete an exit interview.
  • The results from the exit interview are reported in monthly summary reports that are sliced by Department, Tenure, Level, Job Type, and Region.Alea sees further evidence that the Sales function is in need of some immediate attention to improve engagement.
  • Damian is an account executive within that Sales function. He’s been with the organization a year and a half. He blew away his first year’s quota and is doing pretty well in year 2.But… the honeymoon period has worn off and he’s wondering if InnovateU is the place for him long-term.
  • Alea has changed the annual big employee engagement survey to a monthly pulse that targets a random sample of employees. It’s an automated process that pulls the sample of employees from the Talent Management System.Damian is in the sample this month. He receives an email. It’s timely because he has some things to get off his chest. He appreciates being asked for his feedback.And it’s anonymous, so he feels free to be candid.
  • Alea can certainly look at the results all up, but she prefers to start with what High Performers are saying. Damian is in this group and there is clearly room for the organization to improve in a few areas:Providing opportunities for growthHaving a better performance management process that appropriately recognizes the contributions of high performers and has less tolerance for those that aren’t contributing.
  • She then takes a look at the feedback by function and sees more low engagement indicators from the Sales function. That predicts turnover will continue to be an issue.
  • At the click of a button, Alea is able to generate reports for every single manager in the company that summarizes the Engagement Pulse feedback for the employees that report up to them.
  • One of those managers is Gordon. He’s been a sales manager for over 15 years.He’s really friendly--everybody likes the guy.And yet, in the past year, he’s started to lose some key people. If he’s not careful, the next person to go will be Damian, one of his direct reports.
  • Based on the low engagement levels of the employees that report in to him, Alea selects Damian to participate in a 360 assessment focused on manager competencies.Alea started this a few months ago, after seeing how much of an impact (positive or negative) that a manager can have on employee engagement.The goal is to provide tangible feedback to managers to improve in how they interact with their team.
  • The reports from this cohort of 360s are automatically distributed to Alea, each participant, and each of the participant’s managers.Gordon reviews his feedback with his manager. They’ve found that in an effort to be liked by all his employees, he’s gotten a bit soft in his performance management. His top performers are frustrated that there’s such a lax standard for those that are preventing the team from achieving goals.Gordon commits to focus on improving this.
  • Alea reviews the results of the 360 assessments across all the managers in the cohort.Some are guided into learning programs geared to address their areas for improvement.
  • In addition to some refresher eLearning, Gordon is slotted into a pilot for a tool increase manager/employee dialog and meaningful progress tracking.Using the portal, the employee enters goals. These goals are different than their annual performance goals. They’re stretch projects, and competencies they want to develop.
  • Damian enters in his goals. He’s using this as a vehicle to get a good dialog with Gordon going around things that would be engaging to him that are outside what’s formally listed in his job description.
  • Gordon sees these items as being truly useful to the organization. He’s able to establish the same process with all of his team members and engage in a meaningful dialog with each of them regarding progress against these goals.This also clearly differentiates for him which employees are giving 110% and which are coasting.He has the tough conversations with those that are coasting. Some improve and re-commit themselves. For others, it’s time to go.For the high performers, this has been a great exercise to get recognized for all those things they do that go above and beyond.
  • Each of our 3 players benefited from the Engagement Analytics solution.Alea has a streamlined, scalable approach to tracking important metrics, gathering feedback, and reporting out for herself, managers, and executives. This automation enabled her to spend more time assisting the business in tackling their engagement challenges.Damian appreciated the opportunity to voice his concerns and is thrilled to see the changes that are starting to happen in his department.Gordon received help and guidance from Talent Management when he needed it most. He’s starting to reverse his trend in losing his best people.
  • Alea was not at all alone in implementing the Engagement Edition. KnowledgeAdvisors is there to provide expert guidance and assistance to help get organizations up and running quickly. Our approach is to leverage best practices while tailoring the solution to your particular organization and engagement process. We help you to define your key metrics, design your various data collection forms, and also develop a reporting plan for the various stakeholders who need to see the data.
  • To get started, you can contact me directly to learn more or if you’re currently using Metrics that Matter, you can talk to your account team.
  • The KnowledgeAdvisors Analytics Symposium is just a few weeks away! If you’re not already signed up and would like to spend March 3-5 in San Francisco focusing on a whole range of talent analytics best practices and networking, please sign up soon.For attending our session today, I’ve included a 50% code at the top of the slide and we’ll send it to you via email after the session.
  • I appreciate your time today and I hope you learned some tips to both improve your engagement measurement approach and how Metrics that Matter could help you to do so. I urge you to contact me to discuss your engagement situation and how analytics could help you. I’d be happy to lead a more in-depth demo of the Engagement Edition.At this time, I’ll stay on the line to take any questions you may have. If you do not have any questions and need to run, you’re welcome to drop off. Thank you!
  • Transcript

    • 1. Metrics that Matter Engagement Edition 13 February 2014 Jeff Grisenthwaite VP, Client Success
    • 2. Agenda 1. Setting the Stage 2. Metrics that Matter Talent Analytics Suite 3. A Day in the Life Yes, you will get this Slide Deck and a link to the recording emailed to you after the session.
    • 3. ENGAGEMENT Create the kind of employees featured in stock photography
    • 4. You Already Know It’s Important Shareholder Returns Reduce Turnover 19% High EE Low EE 44% by 87% Cost to replace employee: 6-9 months salary Innovation +56% Sources: • http://www.ceo.com/wp-content/uploads/2013/04/EmployeeEngagement-Infographic_FINAL-small.png • http://www.engageforsuccess.org/infographic-internalcommunications-and-employee-engagement/ • http://www.socialbling.com/wpcontent/uploads/2013/06/employee-engagement.jpg • http://www.zanebenefits.com/blog/bid/312123/EmployeeRetention-The-Real-Cost-of-Losing-an-Employee creative ideas from Engaged Employees
    • 5. You Know It’s a Critical Issue Engaged 29% Not Engaged 45% Actively Disengaged 26% Disengaged Managers Do you plan to leave? Will Stay 8% 3X more likely to have Disengaged Employees Might 35% Sources: • http://www.dalecarnegie.com/assets/1/12/engaged-employee-infographic_z.jpg • http://tribehr.com/images/uploads/blog/archive/employee-engagement-infographic.jpg • http://staffingtalk.com/wp-content/uploads/2012/05/employee_engagement_FINAL-500x2266.png Definitel y 57%
    • 6. What’s the typical employee engagement measurement strategy?
    • 7. Engagement Survey every 12-24 months Track Voluntary / Involuntary Turnover Oh boy.
    • 8. So how do we fix it?
    • 9. Stop Treating Everyone Equally
    • 10. Analytics: Answers “How do we…” Improve high performer retention? Increase innovation? Improve employee productivity? Predict turnover?
    • 11. TALENT ANALYTICS SUITE
    • 12. Talent Analytics SUITE Onboarding Learning Leadership EDITION EDITION EDITION  1st Year Retention  Expertise & Skills  Manager Capability  Speed to Performance  Workforce Performance  Strategic Vision & Execution Capabilities Engagement Performance EDITION EDITION EDITION  Bench Strength  Retention of Talent  Goal Achievement  Talent for Future Success  Workforce Productivity  Organizational Alignment
    • 13. Engagement Analytics Key Metrics Data Collection  Employee NPS  Engagement Survey  Engagement Drivers  Exit Interview  Quality of Turnover  Manager Dialog  Employee Productivity  Leadership 360 Visualization Actions  Engagement Dashboard  Target engagement drivers  Enterprise Engagement Report  Assess engagement programs  Departmental Report  Intervene with flight risks  Attrition Root Cause Report  Prioritize employee initiatives
    • 14. Automates Engagement Analytics Integration Talent Systems Automate data collection LMS HRIS Business Metrics TMS CRM TMS Finance ERP HRIS Accounting Data Collection Surveys 360s  Engagement Pulse  Exit Interviews  Engagement Perceptions  Manager Assessments Analytics     Role-Based Reporting Filtering & Automation Dashboards Executive Summaries
    • 15. U
    • 16. Alea Director, Talent Engagement Has just taken on this new role, overhauling measurement approach Victor1558
    • 17. Shifted to Engagement as a process, not a project
    • 18. Adds Employee Net Promoter Score as a key engagement metric How likely are you to recommend this company as a great place to work?
    • 19. Sees that Sales function is lagging for Quality of Turnover
    • 20. Replaces traditional turnover metrics with Quality of Turnover 100% % of employees that are recurring low performers — % of employees that were high performers and exited Quality of Turnover 100% 9% of employees are recurring low performers — 4% of employees were high performers and exited 87% Quality of Turnover
    • 21. Institutes an automated exit interview survey Exit Interview
    • 22. Reviews January exit interview feedback
    • 23. Damian High performing account executive, started polishing his LinkedIn profile Victor1558
    • 24. In random sample for January’s Engagement Pulse survey Engagement Pulse
    • 25. Filters January Pulse feedback to High Performers Employee Engagement – High Performers
    • 26. Reviews all January pulse feedback, reinforces focus on Sales function
    • 27. Distributes department-level engagement reports to managers
    • 28. Gordon Career sales manager, everybody likes him, starting to lose key people Victor1558
    • 29. Participates in Manager 360 Assessment as a follow up to Engagement Survey Manager 360 Assessment Name of the person you are rating: Voytko, Gordon Evaluation End Date: Feb 13, 2014
    • 30. Reviews 360 report with manager
    • 31. Reviews Manager 360 Assessments across all managers
    • 32. Pilots approach to increase manager support and performance feedback Employee Enters developmental goals, tracks monthly Manager Tracks progress, offers support
    • 33. Communicates stretch projects he would like to work on
    • 34. Focuses on individual performance and developmental goals
    • 35. How Did Analytics Help? Alea  Engagement Dashboard and summary reporting  Automated data collection Damian  Opportunity to voice concerns  Starting to see changes in his department Gordon  Received timely, actionable feedback  Will reverse trend of losing key talent
    • 36. Expert Implementation Services Define Approach Configure Forms         Leverage best practices Tailor to programs Establish key metrics System integrations Engagement Pulse Exit Interviews 360s Manager Dialogue Train Users Implement Reporting  Administration  Authoring  Reporting  Define stakeholders  Automate reports  Dashboards
    • 37. Get Started Contact me to learn more OR Talk to your KnowledgeAdvisors account team about the Engagement Edition
    • 38. kasymposium.com 50% off: KA2014SYM50
    • 39. Q&A and Thank You! Jeff Grisenthwaite Contact me to: VP, Client Success +1 312.676.4450 jeffg@knowledgeadvisors.com  Discuss your situation  View a demo  Receive these slides knowledgeadvisors.com