Employee Satisfaction:
5 Reasons You Must Measure
Employee Loyalty During a Recession

What We’ll Cover
• Current economic factors
• The difference between employee
satisfaction and loyalty
• Why measuring employee loyalty is
still important in a recession
• Proven techniques for measuring
employee loyalty cost effectively in a
recession

Recent Wall Street Journal Headlines
“Another Leg Down for Stocks”
“California’s Pain is Only Beginning”
“More Tech Start-Ups Call It Quits”
“Pioneer Posts Lost, Cuts 10,000 Jobs”
“Ongoing Jobless Claims at Record High”

What This Means for HR
• Reduced budgets
• Reduced staff
• Focus only on essential projects
• All projects must show return on
investment

So Why are We Talking about
Employee Retention and
Loyalty?

It’s a Recession, Not a Depression
• Despite the negative headlines,
organizations are still functioning
• There is great uncertainty about the
future
• Those organizations that protect their
people assets will come out of this
stronger

5 Reasons You MUST
Measure Employee Loyalty
During a Recession

1. Direct Correlation between Employee Loyalty &
Customer Loyalty
• Loyal employees have a big positive impact
on customer loyalty and retention
• Maintaining employee loyalty pays benefits in
keeping customers
• Just as challenging to keep a customer today
as it is finding new ones

Employee/Customer Link
High Risk
50
40
30
20
10
0
2001 2002 2003 2004 2005 2006 2007/2008
Percent of High Risk Customers Percent of High Risk Employees

Loyalty Matrix
+
Truly Loyal
Accessible
Attitude
Trapped
High Risk +
–Behavior +
-

Loyalty versus Behavior
Loyal Not Loyal
(Truly Loyal & Accessible) (Trapped & High Risk)
Recommend as a Good 8% 31%
92% 42% 49% 39%
Place to Work
Do things 'Above and 16% 38%
92% 41% 51% 54%
Beyond the Call of Duty'
13% 30%
61% 31% 30% 43%
Limit Search
Working at Company 12% 26%
83% 40% 43% 38%
In Two Years
7% 16% 24%
43% 24% 19% Resist Offers
Execute Company's 6% 32%
81% 48% 33% 38%
Strategy
NEW
Make Company 9% 40%
92% 43% 49% 49%
Successful
Help Others with 16% 43%
89% 40% 49% 60%
Heavy Workloads
100 80 60 40 20 0 0 20 40 60 80 100
% Extremely Likely
% Very Likely

2. To Keep Your Top Talent
• Yes, we are faced with tough
decisions, but we must try to keep
our top players
• 47% of top-performers are actively
looking for jobs
• 18% of low-performers looking for jobs
• 25% of average performers looking
actively for jobs
Source: 2008 Study by Leadership IQ

2. To Keep Your Top Talent
2007 2005
+ +
Truly Loyal Truly Loyal
Accessible Accessible
7% 34% 6% 34%
36% 23% 31% 28%
Attitude
Attitude
High Risk High Risk
Trapped Trapped
+
– –
Behavior Behavior
+ +
- -
Source: Walker Employee Loyalty Report

3. To focus on the right things
• Organizations must be efficient in times like
these; avoid trying to boil the ocean
• Don’t ask questions about issues that can’t be
addressed
• Too often focus is given on the lowest rated
questions without taking into account the impact
these questions have on employee perceptions

3. To focus on the right things
1 Fairness at Work
2 Care and Concern
3 Trust in Employees
Feelings of
4
Accomplishment
5 Satisfaction Day-to-Day
Source: Walker’s 2007 Employee Loyalty Report

4. To Maintain Morale/Productivity
• People are nervous – open up a dialogue and
listen
• Recent Walker study of HR representatives found
three-quarters of those surveyed had seen a
noticeable decline in employee morale in the past
several months
• Important to maintain morale during a downturn

5. To Emerge Stronger
• The economic climate will improve.
When it does, you want to be
stronger, take advantage of
competitive edge
“Best way to predict the future is to create it”

5. To Emerge Stronger
Truly loyal employees
High-risk employees
100%
91% 89%
80%
60%
40%
35% 31%
20%
0%
Believe the organization Feel positively about senior
is highly ethical leaders having personal integrity

Key Elements in Measuring Employee Loyalty
•Include a loyalty metric
•Compare
•Drivers
• Knowing the metric isn’t enough
• Must know what is driving the metric
•Priorities
• Pinpoint what to do with all this feedback

Best Practices for Measuring Loyalty
• Use online methodologies to gather data
• Reduces costs and dramatically improves
response rates
• Understand the difference between anonymity
and confidentiality
• Employees expect confidentiality, not anonymity
• Leverage HRIS and internal systems

Top Mistakes
• Doing Nothing
• Trying to do a short, quick and
dirty survey
• Combine key drivers with
performance to determine
priorities
• Assuming you know what the
problems are

Vovici & Walker Information
• Partnered together to bring the best employee loyalty solution
• Combines Vovici’s award-winning technology with Walker
Information’s methodology and benchmarks
• Enables organizations of all sizes to measure loyalty while
minimizing cost

What We Provide
• Access to Vovici’s award-winning enterprise
feedback management platform
• Easily create, deploy and analyze data
• Valid & Reliable Employee Loyalty survey
• Analysis and comparison to Walker benchmark data
• Personalized report and consultation with an expert
on action plans/next steps
• Starting for as little as $9,995

Employee Relationship Report
Areas Covered
• Focus on:
• Attitudes toward the
o Employee loyalty organization
o Behavioral intentions • Work-related behaviors
o Drivers of loyalty-Care and Concern, Trust, • The organization and your
Fairness, Ethics, etc. work
• Work factors and their
• 80-90 questions, provides detail into the
influence
employer-employee relationship
• Opinions about the
• Standard survey, can add custom questions, organization
customize open ended question, and • Opinions about the
organization’s integrity
demographics
• Other comments
• Survey takes approximately 20 minutes to
• Demographic information
complete

Deliverables – Executive Summary

Deliverables – Detail Reports
• Breaks out every
question on the
survey by every
demographic
segment
• Displays loyalty
information for each
demographic
segment
• Includes comments

Deliverables – Guide to Understanding
• Walks customer through
executive summary and explains
the charts and graphs
• Appendix provides further
explanation on each work factor
and actions to consider

Deliverables – Guide to Implementation
• Walks customer through the action
planning process
• Easy to complete worksheets which
lead to an action plan

Our Approach—A Single Platform That Uniquely Combines:
v4
Database
Profile Survey
Data Responses
Online Surveys
Proprietary Panels &
Online Communities
Business Intelligence

About Vovici
SELECTED CUSTOMERS
60% Of the Fortune 500
2,000 Customers in over 47 countries
Million completed surveys in more
150 than 150 different languages. KEY PARTNERS
15 Years of industry experience,
leadership and innovation

About Walker
• 69-year-old, privately held company
• Pioneer in Employee and Customer Loyalty Management
• Conducted national employee loyalty studies since 1999

Special Book Offer:
• Arrange a demonstration or request
a call-back to receive a free copy of
“Weapons of Mass Collaboration”
by Vovici CEO Dean Wiltse
• http://www.vovici.com

Questions?
• To request a demonstration or to
talk with a sales advisor:
o 1-800-787-8755
o sales@vovici.com
• http://blog.vovici.com
Our presenters welcome your questions:
o Brian Koma, Vice President of Marketing, Vovici,
bkoma@vovici.com
o Chris Woolard, Senior Consultant, Walker
Information, cwoolard@walkerinfo.com
o Jeffrey Henning, Chief Strategy Officer, Vovici,
jhenning@vovici.com