HRIA 2014 Conference Presentation - Employee Engagement

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The importance of employee engagement and building executive and senior management buy into effective employee engagement programs. Focus on using Employee Engagement survey to drive positive workplace change.

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HRIA 2014 Conference Presentation - Employee Engagement

  1. 1. 1
  2. 2. Show 50s-80s and now Meaning has changes 2
  3. 3. 3 23% to 67% expect meaningful work
  4. 4. 4
  5. 5. Why? 5
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  7. 7. 7 1 in 5
  8. 8. Human Capital – Top CEO Challenge Globally for 2014 http://www.ft.com 8
  9. 9. Human Capital #2 – Top CEO Challenge USA for 2014 9 Engagement is even starting to be regulated Excellent Care for All Act, became law in June of 2010
  10. 10. Satisfaction is Not the Same as Engagement ENGAGED EMPLOYEES feel a sense of: Focus Urgency Intensity Enthusiasm Persistence Adaptability The focus is on desiring to “give” 10
  11. 11. TalentMap’s Focus Heart Hands Logical Emotional Behavioural Head Employee engagement is a heightened emotional and intellectual connection that an employee has for his/her job, organization, manager, or coworkers that, in turn, influences him/her to apply additional discretionary effort to his/her work. Career & Financial Goals Achieved Values Align with Peers, Management and Leaders Discretionary Effort 11
  12. 12. Engagement Matters Revenue Customer Satisfaction Safety Productivity Attendance Retention Public Confidence 12
  13. 13. 13 SERVICE • Employees’ customer service productivity scores and their employee engagement scores had a correlation of .51. (Source: Linking People Measures to Strategy. The Conference Board) • Companies with high employee engagement scores had twice the customer loyalty (repeat purchases, recommendations to friends) than companies with average employee engagement levels. (Source: Are They Really ‘On the Job’?, Pont) • In a major department store chain, customers scored higher in customer engagement measures when they were serviced in departments with employees who had high levels of employee engagement. (Source: Getting Engaged, Bates) • Teams classified as “high performance zone for engagement” had a 37% net promoter score (NPS) versus 10% NPS for teams “outside of high performance zone for engagement.” (Source: Aon Hewitt European Manager Survey 2011. Aon Hewitt) • Morrison Management Specialists increased client satisfaction by 1 percentage point for every 2 percentage point increase in employee engagement (Source: Engagement Leads to Growth at Morrison, Talent Management) SALES • Fabick CAT improved “percent of industry net sales” by 300% (Source: A Caterpillar Dealer Unearths Employee Engagement, Gallup Business Journal) Engagement Matters
  14. 14. 14 QUALITY • Unnamed Fortune 100 manufacturing company reduced quality errors from 5,658 parts per million to 52 parts per million. (Source: Employee Engagement: The Key To Realizing Competitive Advantage, Development Dimensions International) SAFETY MolsonCoors, it was found that engaged employees were five times less likely than non-engaged employees to have a safety incident and seven times less likely to have a lost-time safety incident. (Source: Effective practice guidelines: Employee engagement and commitment. SHRM) RETENTION & ABSENTEEISM … REVENUE, PROFIT AND SHAREHOLDER RETURNS … ROLE OF FRONT-LINE MANAGERS… Engagement Matters
  15. 15. Impact on the individual 15 University of Canberra: a job that we hate is as bad for our health sometime worse than not having a job at all University College of London 2011 not recognized at work have more heart disease Whitehall study: Sr. Exec live longer than lower level employees, not a small discrepancy Boston College child’s sense of well being effected by parents that enjoy their work Engagement Matters – The Magic
  16. 16. How To Respond via Texting 1. Standard texting rates only (most free - worst case US $0.20) 2. We have no access to your phone number 3. Capitalization doesn’t matter, but spaces and spelling do Tips 17
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  20. 20. Why No/Limited Executive Buy In? 21 1. Don’t think it can be measured. 3. Don’t get presented with a clear business case for engagement 2. Don’t believe its all that important.
  21. 21. +/- Client A 2012* +/- TM Benchmark It Absolutely Can Be Measured Through Proxy 3 1 4 4 1 2 5 13 6 9 17 15 13 18 84 93 88 79 84 84 77 0% 20% 40% 60% 80% 100% Overall Engagement I am proud to tell others I work for my organization. I am optimistic about the future of my organization. My organization inspires me to do my best work. I would recommend my my organization to a friend as a great place to work. My job provides me with a sense of personal accomplishment. I can see a clear link between my work and my organization's long-term objectives. % Frequency Unfavourable Neutral Favourable 22 Data is rounded to the nearest whole number * Number indicates % Favourable score +1 +4 +2 +4 +8 +8 -2 +2 +5 +10 -3 -1 -2 +1
  22. 22. Not only Engagement but the Drivers can be measured #2 Innovation #1 Teamwork #3 Professional Growth Employee Engagement 23 Employee Engagement Innovation Customer Focus Work/life Balance Information & Communications Teamwork Compensation Work Environment Performance Feedback Professional Growth Immediate Management Organizational Vision Senior Leadership Dependent Variable Independent Variables 23
  23. 23. And Improved Over Time 24 56% 58% 60% 62% 64% 66% 68% 70% 72% 74% 76% 78% 80% 2006 2007 2008 2009 2010 2011 2012 %Favourable Engagement Score of 500 person Technology Company
  24. 24. Why No/Limited Executive Buy In? 25 1. Don’t think it can be measured. 3. Don’t get presented with a clear business case for engagement 2. Don’t believe its all that important.
  25. 25. Talk To Him/Her In Their Terms 26 1. Data – statistics 2. Link engagement to business objectives 3. Show case studies of competitors 4. Use split samples 5. Link engagement to his/her personal goals & objectives 6. Leave a legacy
  26. 26. Service Profit Chain 27 Internal Service Quality Employee Engagement Employee Retention Employee Productivity External Service Value Customer Satisfaction Customer Loyalty Revenue Growth Profitability • Workplace design • Job design • Employee selection and development • Employee rewards and recognition • Tools for serving customers • Service concept: results for customers • Service designed and delivered to meet targeted customers’ needs • Retention • Repeat business • Referral
  27. 27. 28 High-engaged stores out-performed the other stores in almost every aspect. •Met or exceeded quarterly financial targets 40 percent more often; •Customer loyalty increased by 5.3 percent; •4.5 percent higher technician productivity •60 percent lower technician related re-work; •Three times fewer accidents reported/”
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  29. 29. Wonder Drug For Customer Satisfaction Chemotherapy and breast cancer survival: r = .03 Antibiotics and the cure for pediatric ear pain: r = .08 Smoking and incidence of lung cancer within 25 years: r = .08 Effect of ibuprofen on pain reduction: r = .14 Alcohol and aggressive behavior: r = .23 Sleeping pills and improvement in insomnia: r = .30 Viagra and improved male sexual functioning: r = .38 Employee engagement and customer satisfaction: r = .43 30
  30. 30. Why No/Limited Executive Buy In? 31 1. Don’t think it can be measured. 3. Don’t get presented with a clear business case for engagement 2. Don’t believe its all that important.
  31. 31. CEO Needs a Business Case Questions they have What is driving engagement in our organization? How does engagement impact our bottom line? How do we measure up with competitors? What are my employees saying, and why does it matter? Why is the employee engagement initiative being conducted—what the ultimate purpose? 32
  32. 32. Typical CEO’s Questions Who will see the results? How will they be used? How will the results be presented to senior, middle, and frontline leaders (large group sessions, webinars, department meetings). How will leaders be trained to interpret results and facilitate the action planning process What types of developmental resources will be available to facilitate the completion of action plans. How will confidentiality will be handled 33
  33. 33. More Time Building The Business Case 1. Prepare for Action 2. Develop Questionnaire 3. Pre-survey Communication 4. Deploy Survey 5. Analyze, Interpret & Report 6. Discuss, Clarify & Plan 7. Communicate & Act Training/ Workshops Action Planning Framework Focus Groups & Interviews 34 Project Logistics Executive & Management Buy In
  34. 34. Build a Clear Business Case 35 1.Executive Summary 2.Problem Statement 3.Analysis 4.Solution Options 5.Preferred Solution 6.Cost-Benefit Analysis 7.Recommendations 8.Implementation Plan
  35. 35. 36 1. Highly flexible and fluid workforce, with high turnover 2. Stable workforce with low engagement and low productivity
  36. 36. Help Your CEO Connects the Dots 37
  37. 37. Logical Connection The extent to which employees believe that they can achieve their goal (career, financial, developmental) Emotional Connection The extent to which employees feel their values align with the values of their jobs, managers, teams, or organisations. Two commitment types Four focal points of commitment Day-to- day work Team Direct manager Organisation Discretionary effort Employee willingness to go above and beyond the call of duty, such as helping others with heavy workloads, volunteering for additional duties, and looking for ways to perform the job more effectively. Intent to stay Employee desire to stay with the organisation, based on whether they intend to look for a new job within a year, whether they are frequently thinking of quitting, whether they are actively looking for a job, or have begun to take tangible steps like placing phone calls or sending out résumés. The outputs of commitment Performance Retention 90% of engaged employees say they are less likely to leave the organization Suggestion: you need to help your leaders to ‘get it’ 71% of engaged staff know what the customer wants Help Your CEO Connects the Dots
  38. 38. Engaging Workplace Compensation Work Environment Performance Feedback Professional Growth Work/Life balance Teamwork Communication Innovation Customer Focus Immediate Management Organizational Vision Senior Leadership Engaged Attitudes Proud Focused Optimistic Determined Resilient Flexible Connected Motivated Inspired Emotionally Invested Engaged Behaviours Goes Extra Mile Persistent Helpful Collaborative “Can-do” Approach Takes Initiative Ambassador Business Results Employee Retention Stakeholder Satisfaction Improved Productivity Customer Satisfaction Growth Risk Mitigation 39 Help Your CEO Connects the Dots
  39. 39. 40 Show your CEO The Complete Plan,
  40. 40. 41 Project On Track for June Deployment May Jun Jul Aug Prepare for Action Questionnaire Design Pre-Survey Communication Deployment, Initial Analysis and Reporting Leadership training/Support Discuss Clarify and Report
  41. 41. Steering Committee LoB/ LoB Company-wide Action Teams LoB Local Action Teams FG LoB Steering Committee Chair (member of Executive Committee) FG Steering Committee Conceptual Framework Executive Committee Cross-unit Action Teams 42
  42. 42. Governance for Engagement Improvement CEO Executive Committee Survey Respondents Focus Group Participants Local or Company Action Plan Teams Steering Committee Feedback & Action Plans Cascade Up Impact on engagement Action Plan Approval / Implementation Input & Feedback Action Plans 43
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  44. 44. http://www.talentmap.com/hria2014 45
  45. 45. TalentMap In-Action 46 TalentMap Upcoming Events Register: www.talentmap.com/events • April 23rd American Society for Quality (ASQ) • April 24th Webinar - Key Driver - Professional Growth • May 29th Webinar - Special Guest Helen Handfield-Jones - Talent Review • June 26th Webinar - Key Driver - Vision • Sept 10 Conference - Ontario Municipal HR Association (OMHRA) Free Resources Register: www.talentmap.com/resources • Subscribe to our newsletter • Start to receive weekly 1-2 min videos on employee engagement • Checklist, FAQs & Best Practices @talentmap 46
  46. 46. sfitzpatrick@talentmap.com 613-248-3417 x 500 47 ? ? Questions !
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