BT Employee Engagement

Introduction Employee Engagement at BT Alex Wilson – BT Group HRD

What employee engagement means to BT Creating a climate where BT people are committed to the company’s success. Where they value, believe in and enjoy the work they do to help the company be successful. An engaged person brings creativity, passion and energy to the job; they proactively drive change, deliver business results and infect others with their enthusiasm. They are achieving their full potential .

Why it’s important…

Engaged Employees

Generate 43% more revenue (Hay Group)

Disengaged workers costs the UK £44Bn a year (IES) and the US $270 Bn - $343Bn (Gallup) in lost productivity

Have 2.7 sick days per year, rather than the 6.2 disengaged employees take (Gallup)

Are 87% less likely to leave (Corporate Leadership Council)

67% advocate their organisations; only 3% of the disengaged do (Gallup)

9 out of 10 of key barriers to successful change, people related (PWC)

59% of EE say “work brings out their most creative ideas” – only 3% of disengaged agree (Gallup)

Engaged Employees Improved Performance Satisfied Customers Business Results

The global economic downturn is affecting people’s engagement

For most companies…

Rising concern about job security

Losing confidence and trust in senior leadership

Less clarity about future of the company

Less reward, less people, more stress

Productivity, morale declining

Pressure on middle management - making tough decisions

Could be a deferred retention issue (people leave when things get better)

In a recent survey 88% of BT people expressed concern about the economic climate

Strongly Disagree Strongly Agree Neutral Agree I am concerned about the general economic climate 2% 2% 2% 36% 52%

Companies are taking swift action to respond to the downturn A slowdown in the economy will have a significant impact on the business results Scaling down production capacity and reducing cost of overall headcount Finding productivity gains and closing down interim work Combining these interventions with growth measures - opportunistic hiring of top talent, targeted leadership development and new acquisitions Reviewing compensation and benefit programmes and long term incentives - pensions How companies are responding to the downturn Percentage respondents Response 0 10 20 30 40 50 60 70 80 90 100 *2009 study by Hewitt and Associates covering 53 organisations, employing a total of 3.5 million people

Challenges

Retain and motivate best people

Need for focussed execution

Improved capability - change mgt, leadership and talent, employee engagement

Industrial action and disputes

Market perception - reputation and brand. Need to sustain values when making hard choices

Compliance with employment legislation

Continue investing in the future

Leadership style is the key

Great leaders strive in challenging times

They make tough decisions with courage and speed

They adapt quickly, listening and learning from feedback

They are confident, honest delivering clear and consistent messages

They do what they say they will; make commitments public and keep to them

They act as one team, speak with one voice

and have a relentless drive for execution

People Engagement is the key My Job My Team My Manager Senior Leaders The Company Ideas and opinions count Committed to do quality work Learn from and respect others Support each other Speed up and simplify the way we work Clear sense of direction Confident about the future Communicate openly about progress I’m involved in delivering the strategy Proud to work here Want to stay, satisfied Advocate of the company Clear expectations of role Opportunities to learn, develop and grow Have the tools and skills I need Authority to make decisions Collaborate with others Motivated to do my best work Helps me be the best I can be Cares about me and gives feedback Recognises my best work and contribution to the customer A role model for collaboration Engaged Employee

How we’re improving engagement at BT