Cmps 20081211b employee_engagement-what_managers_need_to_know
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  • Does the HR infrastructure (compensation program, communication program etc) at your department support employee engagement? <br /> Does a committed employee necessarily engaged? <br />
  • Apart from pay, which ONE driver do you think is the most engaging? <br /> Sense of personal accomplishment <br /> Benefits <br /> Career Opportunity <br /> Respect <br />
  • Definition of 11 key category drivers <br /> Leadership / Climate – refers to the senior management team as a whole and perceived clarity in communicating organizational strategy, ability in confronting issues, demonstrating organizational values and concern for employees as well as management of the organization as a whole <br /> Supervisory Practices – refers to respondents’ immediate supervisor in terms of perceived competence, availability for consultation, honest communication and frequency of feedback <br /> Career Advancement - refers to perceived opportunities in career development as well as long-term career prospects in the organization and the public sector in general <br /> Job Growth – refers to staff perceived value of activities outside their scope of work contributing to their personal development of organizational excellence <br /> Job Motivation – refers to perceived levels of personal satisfaction, adequate autonomy, interesting challenges and relevant use of their skills and abilities <br /> Learning & Development – refers to staff perceived value of activities outside their scope of work contributing to their personal development of organizational excellence <br /> Teamwork – refers to respondents’ attitude towards people in the organization and perceived levels of cooperation within the work group and across divisions/ institutions <br /> Workload – refers to perceived reasonable levels of work, adequate manpower and ability in maintaining balance between work and personal life <br /> Performance Management & Feedback – refers to employee level of understanding, perceived equity and flexibility of the PM system, ability to recognize and reward deserving staff and the level of feedback and communication <br /> Rewards - refers to perceived fairness of compensation and other issues of external competitiveness and internal equity <br /> Engagement – refers to staff level of satisfaction and pride for the organization as well as intent to stay and recommendation of the organization as a good place of employment <br />

Cmps 20081211b employee_engagement-what_managers_need_to_know Cmps 20081211b employee_engagement-what_managers_need_to_know Presentation Transcript

  • Employee Engagement What managers need to know? Brenda Wilson Business Leader Human Capital Hong Kong
  • Overview Section I: What is ‘Employee Engagement’? – Employee Engagement Defined – What Managers Can Do to Improve Engagement Section II: How to improve employee engagement in your department? – Key Drivers of Engagement Section III: A case study in the public sector – Experience Sharing with our Project with Singapore Government Section IV: Key Takeaways Mercer 2
  • Section I Employee Engagement What is it?
  • Let’s vote: what’s your view? Q: What is the definition of employee engagement? Select one answer: 1. A new management technique to get your employees to do what you tell them … the first time. 2. When two employees plan to get married. 3. An internal party for employees: “Hey Joe, are you going to that employee engagement at 2:00 p.m.?” 4. All of the above (they all sound good) Mercer 4
  • Engagement Defined  What is employee engagement? – A psychological state in which employees feel a vested interest in the company’s success and are both willing and motivated to perform to levels that exceed the stated job requirements. – Engagement fosters and drives discretionary behavior, eliciting employees’ highest productivity, their best ideas and their genuine commitment to the success of the organization. Mercer 5
  • Engagement Defined 1960 1980 Satisfaction Morale  Enjoys the job  Is not dissatisfied with terms and conditions  Not necessarily a team player Mercer 2000 Motivation  Strives to achieve personal goals  Contributes energetically  Commitment TIME Engagement  Loyal to organization, optimistic for the future  Proactively seeks opportunities to serve the mission of the organization  Collaborates to achieve team goals  Willing to go the “extra mile”  Is willing to withhold criticism and/or be constructively critical for the good of the organization Values achieving personal goals  Has a sense of more than team/ belonging to organizational organization goals 6
  • Engagement Defined: How’re you doing? Check your level of engagement Are you… Yes No  Getting satisfaction from the tasks required in their job?  Feeling valued by management?  Contributing energetically, not in isolation, but collaboratively?  Positive about the work experience – your employer, its leaders, the work and the environment?  Ambitious for the organization?  Speaking positively about the organization’s goods and services?  Planning to continue to work for the organization?  Going beyond the stated requirements of the job and contribute ‘discretionary effort’? Are you engaged? Mercer 7
  • From Satisfaction to Engagement Mercer’s Employee Engagement Model© Engagement Model Advocate They freely contribute discretionary effort – a willingness to go the extra distance in executing projects and their regular duties. They see a mutuality of interest between his or her values and aspirations and those of the organization. Motivated In addition to sharing some of the attributes of satisfied employees, motivated workers contribute energetically and are highly focused individual contributors to the organization. Mercer Committed Committed employees have thoroughly internalized the values and behaviors represented by the earlier stages of the engagement model, but have also forged a strong identification with the organization. Satisfied Satisfied employees perform their jobs and are satisfied with the terms and conditions of employment. However, they tend not to go “above and beyond” in their efforts. 8
  • Let’s vote: what’s your view? Q: What can manager’s do to improve employee engagement? Select one answer: 1. Act like cupid: every one loves a good engagement. 2. Give more work, hard work, and lots of it! 3. Use fear to scare your employees into being very satisfied at work. 4. None of the above – there is nothing a manager can do. Mercer 9
  • From Satisfaction to Engagement What can managers do? Satisfied:   Enhance the work environment  Reward (reward level and understanding of the rationale for reward change)  Mercer Provide work tools, resources and equipment Recognize work efforts 10
  • From Satisfaction to Engagement What can managers do? Motivated:   Communicate clear expectations  Regularly clarify priorities and feedback  Provide support by removing obstacles to optimal performance  Recognize and reward performance  Delegate work to theses employees  Mercer Establish fair performance goals Support skill development 11
  • From Satisfaction to Engagement What can managers do? Committed :   Ensure recognition and reward for long term commitment  Listen to employees, share insights and experience  Ensure fairness, consistency and transparency  Develop understanding of long-term vision and business plans  Mercer Help employees build meaningful long-term careers Promote organization values and reinforce them through management behaviors 12
  • From Satisfaction to Engagement What can managers do? Advocate :   Relate business results to team and individual roles  Endorse strong customer focus  Share understanding of customer needs with team  Challenge and grow through delegation  Establish comprehensive career development plans  Encourage upward communication  Encourage innovation  Mercer Communicate the organization's progress and challenges Recognize and reward 13
  • “ staff first We’ve always had a policy of trying to put our . The staff should come first, the customers (the public) second and your shareholders (stakeholders/ tax payers) third. If you take that approach you’ll find that everyone Happy staff result in happy wins. customers, lots of happy customers result in happy shareholders. ” Richard Branson, CEO Virgin Group Mercer 14
  • Section II Key Drivers of Employee Engagement
  • National Differences in Engagement Drivers  Over the last several years, the Mercer’s What’s WorkingTM studies have been tracking the drivers of engagement across countries China United Kingdom Sense of personal accomplishment Sense of personal accomplishment Paid fairly, given performance Confidence in senior management Comparable benefits to industry Opportunities for training Confidence in senior management What’s Engagement working in Hong Kong? Paid fairly, given performance IT systems support business needs Good reputation for customer service Opportunities for training Regular performance feedback Regular performance feedback Comparable benefits to industry Cooperation between groups Mercer 16
  • Let’s Vote: What’s your view? Q: Apart from pay, which ONE element do you think is the most important driver of employee engagement? Select one answer: 1. Sense of personal accomplishment 2. Benefits 3. Career opportunity 4. Sufficient channels for communication 5. Confidence in senior management 6. Training and development opportunities Mercer 17
  • Key Drivers of Employee Engagement  Although there are some country-specific drivers, a consistent set of engagement drivers is emerging globally 2007  The work itself, including opportunities to develop  Confidence and trust in leadership  Rewards & recognition  Employee Engagement Communication Mercer 18
  • Key Drivers of Engagement Drivers of engagement vary by … Industry  High technology  Retail  Financial services  Professional services  Civil Service Organizational Context  Growth  Privatisation  Restructuring/downsizing  Merger and integration  Employee demographics Country Mercer 19
  • Section III Case Study – Singapore Civil Service
  • Singapore Civil Service Why Engagement is so Critical… ? The economic landscape is changing…  Strong year-on-year growth in GDP in Singapore How do we continue to retain employees in the Public Sector?  The implications on the employment market…  Increased growth across sectors  Competition for talent intensifying   Compensation is critical, but it’s not everything Needed to understand the drivers of employee engagement in the public sector for talent retention Increasingly becoming an employee’s market Mercer 21
  • Approach  In 2005, Mercer established an employee engagement survey, The Singapore Public Sector Employee Engagement Survey (PS EES) for 20+ agencies  The survey yielded 3,743 data points, sampled from 46 individual public sector agencies  Regression analysis was conducted to identify key drivers to engagement  Overall engagement was measured by the following four questions: – I am proud to work for my organization – I would recommend my organization to others – Given a choice, how much longer will I be working for my organization – How satisfied am I with my organization at the present time 11 engagement categories Leadership / Climate Supervisory Practices Career Advancement Job Growth Job Motivation Learning & Development Teamwork Workload Engagement Rewards Performance Management & Feedback Mercer 22
  • Results  Compensation almost never rated in top three drivers at over 20 agencies for senior and mid-level staff but was within the top three drivers for junior staff 2007 Key Drivers 2005 Key Drivers Job Motivation pr = .34 Leadership/ Climate pr = .27 Leadership/ Climate pr = .44 Career Advancement pr = .38 Employee Engagement Career Advancement pr = .26 Job Motivation pr = .25 Workload pr = .08 Rewards pr = .06 R²=.67 pr = partial correlation, a measure of statistical relationship R² = coefficient of determination, denotes variation of dependent variable explained by independent variables Mercer R²=.64 23
  • Statistically significant drivers of engagement – by category A total of three items were uncovered as statistically significant key drivers employee engagement at the category level Employee Engagement Leadership/ Climate Career Advancement pr = .44 pr = .38 pr =.25 Job Motivation • The strength of leadership in the organization • Opportunities for growth, development and longterm career potential • Being intrinsically motivated by the work you do These items accounted for 67% of the variance in Employee Engagement (R²=.67) Mercer 24
  • Statistically significant drivers of engagement – by item Item Level Drivers   A total of five items were uncovered as statistically significant key drivers of Employee Engagement at the overall level The key drivers of Employee Engagement center around: - - - - - The work itself giving them a feeling of personal accomplishment Employees’ belief that they have opportunities for growth and development in their organizations Employee perceptions that senior management proactively confronts issues before they become major problems Employee perceptions that the values of their organisation are evident in people’s actions Employee perceptions that their organisation has established a good reputation for customer service Job Motivation pr = .36 Career Advancement • I am proud to work for my organization • I would recommend my organization to others • Given a choice, how much longer will I be working for my organization • How satisfied am I with my organization at the present time Q. Opportunity for growth & development pr = .33 Leadership/ Climate Q. Snr Mgmt does a good job of confronting issues pr = .24 Leadership/ Climate Q. Org values are demonstrated by employees pr = .18 Leadership/ Climate Q. Org has established a good reputation for customer service pr =.16 pr = partial correlation, a measure of statistical relationship R² = coefficient of determination, denotes variation of dependent variable explained by independent variables Mercer Employee Engagement Q. Feeling of personal accomplishment R²=.61 25
  • Section IV Closing remarks
  • Key takeaways  Compensation is important, but it isn’t everything and for the Singapore Civil Service it didn’t factor significantly in the results for most levels of the workforce.  In order to increase levels of engagement, managers need to understand the drivers of engagement. – Are your employees satisfied, motivated, committed or an advocate for the Hong Kong Civil Service? – What can you do to help improve your employee’s engagement?  Key drivers of engagement may vary from industries, organization contexts, and from country to country: do you know what is driving or eroding your employee engagement?  Managers can take an active role in engaging the workforce through various non-financial means leading to better performance and happier employees who advocate for the government and the public. Mercer 27
  • Contact Brenda Wilson Human Capital, Hong Kong Tel +852 2115 3312 Brenda.Wilson@mercer.com
  • Employee engagement categories  Leadership / Climate – refers to the senior management team as a whole and perceived clarity in communicating organizational strategy, ability in confronting issues, demonstrating organizational values and concern for employees as well as management of the organization as a whole  Supervisory Practices – refers to respondents’ immediate supervisor in terms of perceived competence, availability for consultation, honest communication and frequency of feedback  Career Advancement - refers to perceived opportunities in career development as well as long-term career prospects in the organization and the public sector in general  Job Growth – refers to staff perceived value of activities outside their scope of work contributing to their personal development of organizational excellence  Job Motivation – refers to perceived levels of personal satisfaction, adequate autonomy, interesting challenges and relevant use of their skills and abilities  Learning & Development – refers to staff perceived value of activities outside their scope of work contributing to their personal development of organizational excellence  Teamwork – refers to respondents’ attitude towards people in the organization and perceived levels of cooperation within the work group and across divisions/ institutions  Workload – refers to perceived reasonable levels of work, adequate manpower and ability in maintaining balance between work and personal life  Performance Management & Feedback – refers to employee level of understanding, perceived equity and flexibility of the PM system, ability to recognize and reward deserving staff and the level of feedback and communication  Rewards - refers to perceived fairness of compensation and other issues of external competitiveness and internal equity  Engagement – refers to staff level of satisfaction and pride for the organization as well as intent to stay and recommendation of the organization as a good place of employment Mercer 29