Employee Engagement 060512 Sbane Presentation

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Employee Engagement 060512 Sbane Presentation

  1. 1. delivering worksite wellness programs that empower healthy lifestylesDriving Performance with Engaged EmployeesA presentation for:SBANE MembersJune 5, 2012
  2. 2. Agenda What is engagement? Why does engagement matter? What is the state of engagement in general? What drives engagement? How do I assess engagement in my company? Where do I start to improve engagement? 2
  3. 3. Introduction “Eighty percent of success in life is showing up“ Woody Allen 3
  4. 4. What is Engagement? 4
  5. 5. What is Engagement? “A positive, enthusiastic and effective connection with work that motivates an employee to invest in getting the job done, not just well but with excellence because the work energizes the person.” Sloan Center on Aging & Work, BC “Personal engagement is defined by feelings of urgency, focus, enthusiasm and intensity. It is the energized feeling that an employee has about work.” SHRM 2011 Employee Job Satisfaction and Engagement Survey “Research shows that engaged employees are more productive employees. They are more profitable, more customer-focused, safer, and more likely to withstand temptations to leave the organization. In the best organizations, employee engagement transcends a human resources initiative. – it is the way to do business.” Employee Engagement What‟s your Engagement Ratio – Gallup Consulting 5
  6. 6. Engaged Employees Three Types of Employees ENGAGED employees work with passion and feel a 1 profound connection to their company. They drive innovation and move the organization forward. NOT-ENGAGED employees are essentially „checked out‟. They‟re sleepwalking through their work day, 2 putting time – but not energy or passion – into their work ACTIVELY DISENGAGED employees aren‟t just unhappy at work; they‟re busy acting out their 3 unhappiness. Every day, those workers undermine what their engaged coworkers accomplish. Source: Gallup Management Journal; “At Work, Feeling Good Matters” by Jerry Krueger and Emily Killham 6
  7. 7. What is Engagement? Engagement Opinions - The “feel” of employee engagement • Employees are determined to accomplish their work goals AND confident that they could meet those goals 34% strongly agree 49% agree 83% TOTAL Engagement Behaviors - The “look” of employee engagement • Employees are encouraged to be proactive and take action when they see a problem or opportunity 19% strongly agree 41% agree 60% TOTAL The “conditions” of employee engagement • Employees need the capacity to engage, reasons to engage and the feeling that they are free to engage. Source: SHRM 2011 Employee Job Satisfaction and Engagement Survey. 7
  8. 8. Maslow‟s Hierarchy 8
  9. 9. Employee Hierarchy of Needs Career Success Training and Development Recognition Health/Welfare Benefits Compensation Job Security 9
  10. 10. Engagement is Unlocking Potential 10
  11. 11. Why does Engagement Matter? Highly engaged workers tend to have a 26% higher productivity rate, a lower turnover rate, and miss 20% fewer work days. A survey of 400 companies by Hay Associates showed that those in the top quartile on engagement had 2.5 times the revenue of comparison companies. According to Gallup, more than two-thirds of American workers are disengaged in their workplaces. As of Q3 2005, actively disengaged employees cost the US economy about $370B in lost productivity per year. 11
  12. 12. Cost of Disengagement  Decreased productivity costs of $3.4 - $10K per disengaged employee (Gallup Research)  More sick days and tardiness  Missed deadlines and poor sales results  Customer complaints  Cynicism, negativity, and “can‟t do” – versus “can do” attitudeSource: June, 2011 PeopleMetrics 12
  13. 13. Current State of Engagement According to Gallup, more than two-thirds of American workers are disengaged in their workplaces. Gallup Engagement Ratio: a macro-level indicator of organizational health • World class organizations: 9.57 engaged:1 actively disengaged employee • Average organizations: 1.83 engaged:1 actively disengaged employee Cost of a disengaged employee – estimated at $16K per employee • lost productivity + absenteeism + customer dissatisfaction + product quality/rework 13
  14. 14. Current State of Engagement  SHRM 2011 survey responses: • 99% of HR leaders said engagement is a key issue to but nonstrategic engagement and recognition programs continue to pervade companies • Employee engagement is the most critical HR challenge in the next three to five years, with 99% of HR professionals listing it as important or very important • 86% of HR leaders track engagement • 71% monitor in exit interviews  Cost of turnover – missed opportunity to understand what it takes to engage employees • Rule of thumb – cost 3x as much to replace an employee as it does to keep themSource: 2011 SHRM/Globoforce Employee Recognition Tracker Survey 14
  15. 15. Case Examples Diamond Antenna – sense of purpose • Design and manufacture rotary components • Asked sales to identify end use of product with 3 questions • Used variety of visuals to generate interest & enthusiasm Rapid7 – impact of culture on success • Leading provider of security risk intelligence solutions • Over 900% increase in revenue over last 4 years • Employee passion, drive, commitment and knowledge are key • Work hard and play hard – celebrating success is company‟s DNA 15
  16. 16. Drivers of Engagement 16
  17. 17. What Drives Engagement? BENEFITS OF ENGAGEMENT BENEFITS OF ENGAGEMENT FOR EMPLOYEES FOR EMPLOYERSEngaged employees report lower Engaged employees use less healthstress. care.Engaged employees report higher Engaged employees take fewer sickjob satisfaction. days.Engaged employees indicate more Engaged employees are moresatisfaction with personal lives, productive.overall. Engaged employees have longer tenure. Engaged employees create stronger customer relationships. Engaging the 21st Century Multi-Generational Workforce – Findings from the Age & Generations Study 17
  18. 18. Drivers of EngagementSource: Sloan Center on Aging & Work, BC – Engaging the 21st Century Multi-Generational Workforce 18
  19. 19. Drivers of EngagementSource: Sloan Center on Aging & Work, BC – Engaging the 21st Century Multi-Generational Workforce 19
  20. 20. Assessing Engagement 20
  21. 21. Assessing Engagement at Your Workplace What do we need to know? What information do we have? How do we get the data we need? When should we get it? Where does YOUR organization stand? 21
  22. 22. One Model – Gallup‟s 12 Questions Do you know what is expected? Do you have materials and equipment to do your best? Do you have the chance to do your best every day? Were you recognized or praised in the last 7 days? Does your boss or someone at work care about you? Does someone at work encourage your development? 22
  23. 23. One Model – Gallup‟s 12 Questions (continued) Do your opinions count? Does the company‟s mission and purpose make you feel your job is important? Are your colleagues committed to doing quality work? Do you have a best friend at work? Has someone discussed your progress in the last 6 months? Have you had chances to learn and grow during the last year? 23
  24. 24. Assessing Engagement at Your Workplace Connection • Do managers link engagement to business priorities? Commitment • Do managers at all levels recognize “above & beyond”? Attitudes • Do employees describe their work as energizing and meaningful? Helps • What promoters of engagement exist? Barriers • What has to be overcome? Audits • Employee/job satisfaction survey • Done by a third party provide anonymity and objectivity • Management needs to be willing to take action on the results 24
  25. 25. Assessing Engagement in Your Organization Utrecht Work Engagement Scale – Sloan study Find out what Work out ways makes YOUR to provide it to employees keep the tick… wheels moving. Group ActivitySource: Sloan Center on Aging & Work, BC – Engaging the 21st Century Multi-Generational Workforce 25
  26. 26. Where to Start to Impact Engagement 26
  27. 27. Where to Start to Impact Engagement Build Engagement into all your business practices • i.e., Recruiting, Retention, Performance Evaluations Prioritize what‟s most important • Maslow‟s model – satisfy basic employee needs first Segment the strategy and tactics • Use your assessment info • A diverse workgroup will need a variety of engagement factors Examples: • Summary of Factors Related to the Levels of Engagement by Age/Generational Group • Total Rewards Checklist 27
  28. 28. Total Reward DefinitionsTOTAL REWARDS DEFINITIONSCOMPONENT Pay provided by an employer to an employee for services rendered (i.e. time, effort, and skill). IncludesCOMPENSATION both fixed and variable pay tied to levels of performance. Programs an employer uses to supplement the cash compensation that employees receive. These health,BENEFITS income protection, savings and retirement programs provide security for employees and their families. A specific set of organizational practices, policies and programs, plus a philosophy, that actively supportsWORK-LIFE efforts to help employees achieve success at both work and home. Performance: the alignment of organizational, team and individual efforts toward the achievement of business goals and organizational success. It includes establishing expectations, skill demonstration, assessment, feedback and continuous improvement. Recognition: Acknowledges or gives special attention to employee actions, efforts, behavior or performance. It meets an intrinsic psychological needPERFORMANCE & for appreciation of one‟s efforts and can support business strategy by reinforcing certain behaviors (e.g.RECOGNITION extraordinary accomplishments) that contribute to organizational success. Whether formal or informal, recognition programs acknowledge employee contributions immediately after the fact, usually without predetermined goals or performance levels that the employee is expected to achieve. Awards can be cash or noncash (e.g. verbal recognition, trophies, certificates, plaques, dinners, tickets, etc.) Development: A set of learning experiences designed to enhance employees‟ applied skills andDEVELOPMENT & competencies. Development engages employees to perform better and engages leaders to advance their organizations‟ people strategies. Career Opportunities: Involve the plan for employees to advance theirCAREER career goals. May include advancement into a more responsible position in an organization. TheOPPORTUNITIES company supports career opportunities internally so that talented employees are deployed in positions that enable them to deliver their greatest value to the organization. Source: WorldatWork 28
  29. 29. 29
  30. 30. Tactics to Improve Engagement 30
  31. 31. Tactics – Promote Positive Culture “Thinner Winner” “Live Well” cookbook Foosball or ping pong table Healthy office parties Walking meetings Gym subsidies Recognition – thank you, money/gift cards, senior managers, peers Let them know you care! 31
  32. 32. Tactics – Effective Leadership “Know them. Grow them. Inspire them. Involve them. Reward them.”Source: Towers Watson Viewpoints. Employee Well-Being: Taking Engagement and 32Performance to the Next Level. D. Fairhurst, J. O‟Connor. 2010
  33. 33. Tactics – Communicate A Sense of Purpose Stay focused on your purpose…The business and your job, and how you make a difference. 33
  34. 34. Tactics – Compensation and Performance Provide internally fair and competitive base pay • Benchmark to know where you are • Consider what you can afford • Communicate the basics about how pay decisions are made Tell employees where they stand with a strong performance management program • Set SMART* goals at the start of the year • Provide ongoing feedback • Use a consistent, easy-to-complete form with clear rating definitions • Deliver timely annual reviews • Make it count – tie rewards to performance *Specific, Measurable, Achievable, Relevant and Time bound 34
  35. 35. Build on the Foundation Develop your leaders and employees Communicate the total investment you make to employees Offer a simple, company-sponsored recognition program Build a culture of success, team spirit and celebration 35
  36. 36. Well-being Drives Engagement 36
  37. 37. What is Well-being? “The „well‟ being is not necessarily the strong, the brave, the successful, the young, the whole, or even the illness-free being. A person can be living a process of wellness and yet be physically handicapped; aged; scared in the face of challenge; in pain; imperfect. No matter what your current state of health, you can begin to appreciate yourself as a growing, changing person and allow yourself to move toward a happier life and positive health.”Source: Wellness Workbook: How to AchieveEnduring Health and Vitality, 3rd Edition, John W.Travis, M.D., and Regina Sara Ryan 37
  38. 38. Relative value of health to the organization 27% 41% 22% 10% Lost productivity: job performance Lost productivity: absence All medical costs Wage replacementSource: Integrated Benefits Institute 38
  39. 39. Causes of presenteeism Health-related issues • Allergies • Arthritis • Asthma • Any cancer • Depression/sadness/mental illness • Diabetes • Heart disease • Hypertension • Migraine/headache • Respiratory infections 39
  40. 40. Why are employees disengaged? 40
  41. 41. Causes of presenteeism Non-health-related issues • Distractions • Financial troubles or „credit stress‟ • Child/eldercare • Divorce/family problems • Employer/employee conflict • Workplace conditions • Temperature, lighting, air quality, communications 41
  42. 42. What‟s the issue? Unhealthy lifestyle choices • Smoking • Lack of seat belt use • Inadequate sleep • OTC medication abuse • Excessive caffeine use • Little physical activity • Lack of periodic screenings • High saturated fat diets 42
  43. 43. Engagement and Well Being Engagement in the absence Engagement with well-being of well-being can lead to a enables sustained employee burned-out workforce performance Low Well-Being High Well-BeingHigh Unstable Engagement Sustainable EngagementEngagementLow Engagement Chronic Disengagement Complacent Disengagement Source: Towers Watson Viewpoints. Employee Well-Being: Taking Engagement and Performance to the Next Level. D. Fairhurst, J. O‟Connor. 2010 43
  44. 44. Drivers of Well-Being Leader/Manager Effectiveness • Immediate Management • Senior Leadership Positive Working Relationships Competence and Environmental Mastery Sense of Purpose Personal Growth and Aspiration Rewards, Performance and Security 44
  45. 45. Wrap Up What is engagement? Why does engagement matter? What is the state of engagement in general? What drives engagement? How do I assess engagement in my company? Where do I start to improve engagement? 45
  46. 46. Contact Information Erika Chin Executive Director Chin Compensation & Performance 978-621-5171 echinccp@comcast.net Karyn White, PHR Human Resources Director Diamond Antenna and Microwave Corp. 978-486-0039 kwhite@diamondantenna.com Mari Ryan, MBA, MHP, CWWPC CEO AdvancingWellness 617-921-0784 mari@advwellness.com 46

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