Employee engagement - Possibility or Pipe Dream

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Calculate the financial impact engagement is having on your company and learn ways of improving it.
Engagement is a critical factor to the success of your business and satisfaction of your customers

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  • Quickly run through each category and then do exercises
  • Employee engagement - Possibility or Pipe Dream

    1. 1. EMPLOYEE ENGAGEMENT IS IT A POSSIBILITY OR A PIPE DREAM? Cindy Gordon CPA, CA (Canada License only) CPCC Culture Shock Coaching, LLC © 2014 Culture Shock Coaching, LLC
    2. 2. What Engagement is Not  Happiness – engaged employees are considered happy at work, however happy employees are not necessarily engaged  Satisfaction – a satisfied employee may show up at work without a complaint but they won’t likely go the extra distance for the company
    3. 3. What is Engagement? The emotional commitment an employee has to their organization and its goals resulting in the use of discretionary effort
    4. 4. Organizations with high employee engagement experience  65% greater share-price  26% less employee turnover  100% more unsolicited employment applications  20% less absenteeism  15% greater employee productivity  Up to 30% greater customer satisfaction levels (2013 survey by the Queen's School of Business - Centre for Business Venturing (QCVB) and Aon Hewitt)
    5. 5. WHAT’S IN IT FOR ME? W I I F M
    6. 6. Can you relate?
    7. 7. Putting a dollar value on the impact of engagement on productivity The Financial Impact
    8. 8. Categorize your workforce  Fully engaged employees are passionate about their work and the organization; will do whatever it takes to deliver the results; perform beyond expectation; look for new opportunities to personally and professional grow  Engaged employees are solid, dependable performers; focused on deliverables, projects and individual responsibilities; master their responsibilities but don’t expand outside of it  Somewhat engaged employees are selective about where they put their energy; deliver when they have to; are masters at distracting others; benefits they receive from the organization are the main reasons they stay  Disengaged employees only work when they have to; perform at below expected levels; spread negative feedback about the organization and leaders
    9. 9. Financial Impact  ABC Company 20% highly engaged 35% engaged 35% somewhat engaged 10% disengaged Annual payroll of $1,000,000 (Allocation based on Jack Welsh theory of employee engagement)
    10. 10. Financial Impact – Scenario 1 Level of Engagement % within Organization (A) % Performance Level (B) Performance Impact (A x B) Highly 20% 125% 25% Engaged 35% 100% 35% Somewhat 35% 75% 26% Disengaged 10% 50% 5% CURRENT PERFORMANCE POTENTIAL (C) 91% % OF LOST PERFORMANCE (100% – C) 9% TOTAL ANNUAL WAGES $1,000,000 VALUE OF LOST PRODUCTIVITY DUE TO ENGAGEMENT $90,000
    11. 11. Implementing Employee Engagement Strategies  Shift of engagement level within the engaged and someone engaged population  20% of the 35% engaged employees become highly engaged (shift of 7%)  20% of the 35% somewhat engaged employees become engaged (shift of 7%)
    12. 12. Improvement on Productivity Level of Engagement % within Organization (A) % Performance Level (B) Performance Impact (A x B) Highly 27% 125% 34% Engaged 35% 100% 35% Somewhat 28% 75% 21% Disengaged 10% 50% 5% CURRENT PERFORMANCE POTENTIAL (C) 95% % OF LOST PERFORMANCE (100% – C) 5% TOTAL ANNUAL WAGES AND SALARIES $1,000,000 VALUE OF LOST PRODUCTIVITY DUE TO ENGAGEMENT $50,000 VALUE OF PRODUCTIVITY IMPROVEMENT $40,000
    13. 13. How many would be people? Assuming -15 employees: Scenario 1 Scenario 2 Highly engaged 3 4 Engaged 5 5 Somewhat engaged 5 4 Disengaged 2 2 Total employees 15 15
    14. 14. Creating a high engagement environment How To….
    15. 15. Corporate culture  Corporate culture represents the behaviors and beliefs of what the company stands for  The perceptions of the employees about culture will impact their level of engagement  “You can be the architect of your culture or you can be the victim of it” – Len Gaby, Sleep America
    16. 16. Key Components of Engagement  Processes - Do the processes in your organization enable your employees to effectively get their work done easily?  Tools - Does each employee have the tools available to allow them to get their job done in an efficient manner?  People - How well do we know our people and what motivates them?
    17. 17. Employee Needs Adapted from Dr. Abraham Maslow’s Hierarchy of Needs
    18. 18. Security and Safety  Emotional – trust, threat of job loss, passive aggressive behavior, immoral or illegal activity  Physical – physical abuse, threat of injury, limited access to premises by stranger
    19. 19. Financial Security  Salary – wages are perceived as fair in relation to responsibilities, peers and market  Benefits – are benefits provided relevant to the employee
    20. 20. Relationship and Belonging  People don’t leave companies, they leave bosses  Relationships with peers vs direct boss vs senior leader  Type of communication – does the employee feel heard and how does boss react to their feedback?
    21. 21. Recognition  Verbal and material recognition that shows a direct acknowledgement of a person  Organizations with sophisticated recognition practices are 12 times more likely to have strong business outcomes. (Bersin by Deloitte, The State of Employee Recognition, 2012)  When companies spend 1% or more of payroll on recognition, 85% see a positive impact on engagement. (SHRM/Globoforce Employee Recognition Survey, 2012)
    22. 22. Personal Growth and Fulfillment  Understanding the “WHY” of the business http://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_acti on  Requires the codification and consistent modelling of a conscious corporate culture (mission, values, behaviors)
    23. 23. Employee Engagement Strategies  Create strategies based on employee needs  Don’t focus on one size fits all  Create strategies that align with your intended corporate culture
    24. 24. Take-Aways?
    25. 25. EMPLOYEE ENGAGEMENT IS POSSIBLE!

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