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VaLUENTiS Employee Engagement WGUHWGUT HRDS JAN 2013 final dist copy
 

VaLUENTiS Employee Engagement WGUHWGUT HRDS JAN 2013 final dist copy

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NJH presentation given at HR Directors Summit, ICC Birmingham UK, January 2013

NJH presentation given at HR Directors Summit, ICC Birmingham UK, January 2013

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    VaLUENTiS Employee Engagement WGUHWGUT HRDS JAN 2013 final dist copy VaLUENTiS Employee Engagement WGUHWGUT HRDS JAN 2013 final dist copy Presentation Transcript

    • HR Directors Summit ICC Birmingham UK 2013Employee Engagement: What got us here won’t get us there The new reality for ambitious HR functions ‘ThinkNicholas J Higgins, DrHCMI MSc Fin (LBS) MBA (OBS) MCMI HR.CEO, VaLUENTiS Ltd & Dean, International ThinkSchool of Human Capital Management (‘ISHCM’) Human Capital.’ Tour 2013
    • Video version available through WTG on-demand service.All rights reserved. No part of this presentation may be reproduced, translated, stored in aretrieval system or transmitted in any form or by any means, electronic, mechanical,photocopying, microfilming recording or otherwise without the express permission of theauthor.Please e-mail nicholas.higgins@valuentis.com regarding any matters of reproduction/organisational distribution.© 2013
    • NOTE:Slides [4 to 52] on auto presentation to musicintroduction.
    • Welcome….
    • 2013 sees VaLUENTiS celebrate its tenth year….
    • Some notable achievements… First British firm to introduce Employee Engagement model (known as the ‘5D’) First to introduce standard ‘employee engagement surveys’ as opposed to ‘generic’ employee surveys First to publish live client HR scorecard linking with employee engagement First to introduce ‘Qual-Quant’ people management evaluation tool (‘Management Pathfinder’) First to introduce global value-based HR function (VB-HR™) profiler First to publish global Human Capital Reporting Standards (GHCRS2006) including the ‘PeopleFlow’, ‘HC Operating’ and ‘HC Productivity’ template statements… Globally, first to set-up dedicated, practitioner-based Business School on Human Capital Management and introduce ‘M. Sc. in Human Capital Management’First School to offer Masters qualification with CMAS® technology (‘non-essay’ based) and for less than £1000 HCMI first to offer membership by association not subscription…… 7
    • VaLUENTiS continues to support thoseorganisations and HR functions who wish to push the boundaries on employee engagement and organisation performance……….
    • And so let me begin…
    • A long time ago in a far, far away place we started with the question:
    • If employee engagement was the answer, what was the question?
    • And, what constituted employeeengagement and how did it impact on performance?
    • Which led us to evaluating much empirical research, and, finally to this…
    • The concept of Employee Engagement: A synthesis of antecedent theories and empirical evidence with human capital management practice related to organisation performance – 100 years in the making •Leadership theory •Decision-making theory •Organisational ‘fit’ theory •Conflict theory •Organisation performance & measurement* •Commitment theory •Trust theory •High performance work systems •Goal setting and task theory •Teams theory •Group theory Human Capital Management practice/systems: •Expectancy theory •Talent management •Equity (justice) theory •Performance management •Motivation theory •Reward & recognition •Job satisfaction •Employer brand Individual Immediate Wider Organisation •Human capital retention •Needs theory Team Group •Resourcing & selection •Trait theory •Social cognitive/ •Training & Development self efficacy theory •Workforce diversity •Psychological contract •Leadership •Organisation Citizenship Behaviour •Organisation design •Taylor - Scientific management •Emotional Intelligence •Organisation communication •Munsterberg - Industrial psychology •Behaviourism •Organisation culture •Fayol - Principles of management •Cognitive dissonance •Follett - Management relations/integration •Learning theory •Mayo/Hawthorne studies •Wellbeing/Burnout •Lewin (MIT) - group dynamics/behaviour •Other I/O psychology •Likert – Management system/measurement scale contributions •Tavistock – Socio-technical systems •McGregor Theory X/Y •Hertzberg – Two factor theory •Drucker – Practice of managementSource: The antecedents of Employee Engagement, Nicholas J Higgins - VaLUENTiS technical paper 2003 •Kahn – Personal engagement
    • But organisations needed something to use practically…
    • That led to the 5D construct…
    • Fivedomains… Performance link Line of sight Reward (equity) Operating culture Work Development environment Plus performance
    • Which used seven core theories as its root structure…
    • VaLUENTiS 5D Employee Engagement:Core empirical theories that combine to form the root structure of the VaLUENTiS model •Leadership theory •Decision-making theory •Organisational ‘fit’ theory •Conflict theory •Organisation performance & measurement* •Commitment theory •Trust theory •High performance work systems •Goal setting and task theory •Teams theory •Group theory Human Capital Management practice/systems: •Expectancy theory •Talent management •Equity (justice) theory •Performance management •Motivation theory •Reward & recognition •Job satisfaction •Employer brand Individual Immediate Wider Organisation •Human capital retention •Needs theory Team Group •Resourcing & selection •Trait theory •Social cognitive/ •Training & Development self efficacy theory •Workforce diversity •Psychological contract •Leadership •Organisation Citizenship Behaviour •Organisation design •Taylor - Scientific management •Emotional Intelligence •Organisation communication •Munsterberg - Industrial psychology •Behaviourism •Organisation culture •Fayol - Principles of management •Cognitive dissonance •Follett - Management relations/integration •Learning theory •Mayo/Hawthorne studies •Wellbeing/Burnout •Lewin (MIT) - group dynamics/behaviour •Other I/O psychology •Likert – Management system/measurement scale contributions •Tavistock – Socio-technical systems •McGregor Theory X/Y“But all the others have a part to play…” •Hertzberg – Two factor theory •Drucker – Practice of managementSource: The antecedents of Employee Engagement, Nicholas J Higgins - VaLUENTiS technical paper 2003 •Kahn – Personal engagement
    • Over time working with clients, we noticed that organisations needed to focus on six areas to sustain successful employee engagement…
    • Known as the ‘Six Pillars’… Grounded understanding of Employee Engagement Working definition of Employee Engagement Measurement wisdom Actioning infrastructureEE PLAYBOOK Dynamic EE-Performance ‘playbook’DELETE Competent leadership/management
    • Initial research and observation revealed essentially four types of organisation…
    • Organisations and employee engagement:The ‘4-ball’ practice model ‘We don’t...’ ‘It’s all about PR…’ Play down Play act ‘At least we audit/ benchmark...’ Play safe ‘We do it…’ Play make The four progressive states of employee engagement embeddedness in organisations
    • To create…
    • The ‘4-ball’ Employee Engagement reality matrixPillar ‘PLAY DOWN’ ‘PLAY ACT’ ‘PLAY SAFE’ ‘PLAY MAKE’ Grounded I Exists in pockets with Good working knowledge understanding of Limited. Little. variation in line embedded across employee engagement Mostly ephemeral in nature. management. organisation. Maybe borrowed with II Working definition of Most likely borrowed Distributed ‘ownership’, internalisation or adapted employee engagement No definition in use. without any real ownership, whether borrowed, adapted after some organisational or ‘false’ ownership. or created. focus. Probably undertaking Will do measurement basics, People managementIII Limited to absenteeism Measurement wisdom surveys but with no valid even to the extent of evaluation/measurement metrics, employee surveys construct; response rate/PR engagement index etc. seen as ‘core’ on a par with seen as event driven if done. main focus. Tick box is main focus. CRM , finance etc. Probably in the form of basic Will have a number of Will have necessary ‘toolkit’IV Probably in the form of basic Actioning management courses. Most actioning elements in place to hand with ongoing training/management Infrastructure likely carry out some form of but not necessarily joined programmes to suit courses. branded programme. up. organisation focus. May have something Playbook in the form of Easy access in different e- V EE-Performance Playbook Does not exist. articulated on ‘strategies’. Most likely collection of ‘manager manual’ or on-line knowledge-share. Still being /physical formats at different levels. Signals irrelevant case studies. developed. ‘embedded’ intent. Will have varied mix of Will have varied mix of Will have varied mix of Cohort of well-trainedVI Competent leadership/ management skilled people managers. Existing good performers skilled people managers. Existing good performers skilled people managers but level of competency higher people managers exists with talent pools. Regular more through luck. more through luck. than Play-Act organisations. evaluation/reinforcement.
    • Which leads us to…
    • A quick exercise…
    • Choose your organisation(or business unit/division/directorate etc)…
    • And decide which box mostly describesyour chosen organisation/organisation unit…
    • The ‘4-ball’ Employee Engagement reality matrixPillar ‘PLAY DOWN’ ‘PLAY ACT’ ‘PLAY SAFE’ ‘PLAY MAKE’
    • The ‘4-ball’ Employee Engagement reality matrixPillar ‘PLAY DOWN’ ‘PLAY ACT’ ‘PLAY SAFE’ ‘PLAY MAKE’ Grounded I Exists in pockets with Good working knowledge understanding of Limited. Little. variation in line embedded across employee engagement Mostly ephemeral in nature. management. organisation.
    • The ‘4-ball’ Employee Engagement reality matrix ‘PLAY DOWN’ ‘PLAY ACT’ ‘PLAY SAFE’ ‘PLAY MAKE’ Maybe borrowed withII Working definition of employee engagement No definition in use. Most likely borrowed without any real ownership, internalisation or adapted after some organisational Distributed ‘ownership’, whether borrowed, adapted or ‘false’ ownership. or created. focus.
    • The ‘4-ball’ Employee Engagement reality matrix ‘PLAY DOWN’ ‘PLAY ACT’ ‘PLAY SAFE’ ‘PLAY MAKE’ Probably undertaking Will do measurement basics, People management Limited to absenteeismIII Measurement wisdom metrics, employee surveys surveys but with no valid construct; response rate/PR even to the extent of engagement index etc. evaluation/measurement seen as ‘core’ on a par with seen as event driven if done. main focus. Tick box is main focus. CRM , finance etc.
    • The ‘4-ball’ Employee Engagement reality matrix ‘PLAY DOWN’ ‘PLAY ACT’ ‘PLAY SAFE’ ‘PLAY MAKE’ Probably in the form of basic Will have a number of Will have necessary ‘toolkit’IV Probably in the form of basic Actioning management courses. Most actioning elements in place to hand with ongoing training/management Infrastructure likely carry out some form of but not necessarily joined programmes to suit courses. branded programme. up. organisation focus.
    • The ‘4-ball’ Employee Engagement reality matrix ‘PLAY DOWN’ ‘PLAY ACT’ ‘PLAY SAFE’ ‘PLAY MAKE’ May have something Playbook in the form of Easy access in different e-V EE-Performance Playbook Does not exist. articulated on ‘strategies’. Most likely collection of ‘manager manual’ or on-line knowledge-share. Still being /physical formats at different levels. Signals irrelevant case studies. developed. ‘embedded’ intent.
    • The ‘4-ball’ Employee Engagement reality matrix ‘PLAY DOWN’ ‘PLAY ACT’ ‘PLAY SAFE’ ‘PLAY MAKE’ Will have varied mix of Will have varied mix of Will have varied mix of Cohort of well-trainedVI Competent leadership/ management skilled people managers. Existing good performers skilled people managers. Existing good performers skilled people managers but level of competency higher people managers exists with talent pools. Regular more through luck. more through luck. than Play-Act organisations. evaluation/reinforcement.
    • Putting it together…
    • The ‘4-ball’ Employee Engagement reality matrixPillar ‘PLAY DOWN’ ‘PLAY ACT’ ‘PLAY SAFE’ ‘PLAY MAKE’ Grounded I Exists in pockets with Good working knowledge understanding of Limited. Little. variation in line embedded across employee engagement Mostly ephemeral in nature. management. organisation. Maybe borrowed with II Working definition of Most likely borrowed Distributed ‘ownership’, internalisation or adapted employee engagement No definition in use. without any real ownership, whether borrowed, adapted after some organisational or ‘false’ ownership. or created. focus. Probably undertaking Will do measurement basics, People managementIII Limited to absenteeism Measurement wisdom surveys but with no valid even to the extent of evaluation/measurement metrics, employee surveys construct; response rate/PR engagement index etc. seen as ‘core’ on a par with seen as event driven if done. main focus. Tick box is main focus. CRM , finance etc. Probably in the form of basic Will have a number of Will have necessary ‘toolkit’IV Probably in the form of basic Actioning management courses. Most actioning elements in place to hand with ongoing training/management Infrastructure likely carry out some form of but not necessarily joined programmes to suit courses. branded programme. up. organisation focus. May have something Playbook in the form of Easy access in different e- V EE-Performance Playbook Does not exist. articulated on ‘strategies’. Most likely collection of ‘manager manual’ or on-line knowledge-share. Still being /physical formats at different levels. Signals irrelevant case studies. developed. ‘embedded’ intent. Will have varied mix of Will have varied mix of Will have varied mix of Cohort of well-trainedVI Competent leadership/ management skilled people managers. Existing good performers skilled people managers. Existing good performers skilled people managers but level of competency higher people managers exists with talent pools. Regular more through luck. more through luck. than Play-Act organisations. evaluation/reinforcement. What does your quick assessment tell you…?
    • And now, a fewquestions for you…
    • No pressure!
    • 1. Which decade were employee surveys first introduced as a management tool…?
    • 2. Which famous experiments took place at Western Electric Co in the 20th Century…?
    • 3. Which US company is most associated with employee surveys and causal studies linking to performance …?
    • 4. Which author, with an articlepublished in 1990, is attributed as being the first to use the term ‘employee engagement’…?
    • 5. Employee engagement is…?a) A work-place approachb) A conceptc) A strategyd) All of thesee) Something else
    • 6. What is the connection between job satisfaction and job performance…?
    • 7. What is ‘acknowledged’ as the single biggest factor in an individual’s engagement at work…?
    • 8. What’s wrong with Maslow’s pyramid?
    • 9. What are the SEVEN core empiricaltheories that form the root structure of VaLUENTiS 5D employee engagement model?
    • 10. Complete this ‘well-known phrase’: “If employee engagement was the answer, …………………………......?”
    • How did you do…?
    • Employee Engagement: What got us here won’t get us there The new reality for ambitious HR functions
    • Part IGetting us here… 53
    • 1. Which decade were employee surveys first introduced as a management tool…?
    • 2. Which famous experiments took place at Western Electric Co in the 20th Century…?
    • 3. Which US company is most associated with employee surveys and causal studies linking to performance …?
    • A look back at The original Sears E-C-P Chain…(an early forerunner of ‘employee engagement’ with causal performance link) A compelling A compelling place to work A compelling place to shop place to invest Customer Attitude Service recommendationsabout the Helpfulness job Return on assets Employee Customer Operating margin Behavior Impression Revenue growth Attitude Merchandiseabout the Valuecompany Employee Customer retention retention 5 unit increase 13 unit increase 0.5% increase in in employee in customer revenue growth attitude impression The Employee-Customer-Profit chain at Sears By Anthony J. Rucci , Stephen P. Kirn and Richard T. Quinn Harvard Business Review Jan-Feb 1998 57
    • Organisation Performance(as defined by organisation/unit scorecard measures and derivative metrics)Examples of organisation performance areas: Sales Service Patient delivery Operational Organisation Revenue Customer care risk satisfaction Procurement Product support Quality development Safety Cost…
    • Impaired Employee Engagement:Impact on individual and team productivity/performanceSub-optimal performance,i.e. less than achievableOrSub-optimal costs,i.e. higher than necessaryOrBoth 59
    • 4. Which author, with an articlepublished in 1990, is attributed as being the first to use the term ‘employee engagement’…?
    • Psychological Conditions of PersonalEngagement and Disengagement at WorkWilliam A. KahnAcademy of Management Journal 1990“Personal Engagement is the simultaneous employment andexpression of a person’s ‘preferred self’ in task behaviors thatpromote connections to work and to others, personal presence(physical, cognitive and emotional), and active, full roleperformance.” 61
    • poorlycommunicatedreorganisation perceived short-staffed reward inequity interpersonal planned conflict training cancelled uncaring new incentive boss misalignmentenlarged Well-receivedrole performance appraisal hit personal targets/ hit team objectives targets/ objectives “A further, more up to salary enrolled on MD date interpretation…” increase programmeEmployee engagement as a sum of constant work‘forces’ (VaLUENTIS EESoF model) illustrative vectors 62
    • 5. Employee engagement is…?a) A work-place approachb) A conceptc) A strategyd) All of thesee) Something else
    • 6. What is the connection between job satisfaction and job performance…?
    • 7. What is ‘acknowledged’ as the single biggest factor in an individual’s engagement at work…?
    • Illustrating the management influence using VaLUENTiS 5D Employee Engagement Framework Line-of-Sight Work Environment Objectives awareness Cultural elements Behaviour alignment Team dynamics Role ‘fit’ Communication Performance management Organisation operating Resources culture Feedback Local management Capability Physical environment Organisation design Performance/talent management Remuneration equity ‘Corporate’ Leadership Career progression Communication Bonus/incentives Decision rights Competencies Benefits Work values Succession planning Trust Role equity Job/ Role architecture Recognition Training/ Learning Promotional aspects Coaching/ Mentoring Reward (equity) Development © VaLUENTiS Ltd 2002-12 A manager has influence in many areas of engagement, some more than others… 66
    • 8. What’s wrong with Maslow’s pyramid?
    • 9. What are the SEVEN core empiricaltheories that form the root structure of VaLUENTiS 5D employee engagement model?
    • VaLUENTiS 5D Employee Engagement:Core empirical theories that combine to form the root structure of the VaLUENTiS model •Leadership theory •Decision-making theory •Organisational ‘fit’ theory •Conflict theory •Organisation performance & measurement* •Commitment theory •Trust theory •High performance work systems •Goal setting and task theory •Teams theory •Group theory Human Capital Management practice/systems: •Expectancy theory •Talent management •Equity (justice) theory •Performance management •Motivation theory •Reward & recognition •Job satisfaction •Employer brand Individual Immediate Wider Organisation •Human capital retention •Needs theory Team Group •Resourcing & selection •Trait theory •Social cognitive/ •Training & Development self efficacy theory •Workforce diversity •Psychological contract •Leadership •Organisation Citizenship Behaviour •Organisation design •Taylor - Scientific management •Emotional Intelligence •Organisation communication •Munsterberg - Industrial psychology •Behaviourism •Organisation culture •Fayol - Principles of management •Cognitive dissonance •Follett - Management relations/integration •Learning theory •Mayo/Hawthorne studies •Wellbeing/Burnout •Lewin (MIT) - group dynamics/behaviour •Other I/O psychology •Likert – Management system/measurement scale contributions •Tavistock – Socio-technical systems •McGregor Theory X/Y“But all the others have a part to play…” •Hertzberg – Two factor theory •Drucker – Practice of management 69Source: The antecedents of Employee Engagement, Nicholas J Higgins - VaLUENTiS technical paper 2003 •Kahn – Personal engagement
    • 10. Complete this ‘well-known phrase’: “If employee engagement was the answer, …………………………......?”
    • Observation 101Absenteeism, turnover, ill-discipline, managerresistance, communication and/or trust issuesetc are all, to a great degree, manifestationsof poor employee engagement in someform.“Many case studies and indeed academic comment, however,seem to ignore this fact. Thus, we’re seemingly praising ourselvesfor putting a fire out – the very one we started as anorganisation! What happened to the ‘Why’ in the first instance?As an industry practitioner question - What’s going on here?” 71
    • Part IIGetting us there… 72
    • Back to the ‘Six Pillars’… 1. Grounded understanding of Employee Engagement 2. Working definition of Employee Engagement 3. Measurement wisdom 4. Actioning infrastructureEE PLAYBOOK 5. Dynamic EE-Performance ‘playbook’DELETE 6. Competent leadership/management 73
    • What got us here/Getting us there…1 • Insufficient appreciation of existing empirical research Grounded understanding of Employee Engagement • Evidence Based Management still not widespread • Thinking ‘too simple’ (instead follow Einstein’s dictum) 74
    • The concept of Employee Engagement: A synthesis of antecedent theories and empirical evidence with human capital management practice related to organisation performance – 100 years in the making •Leadership theory •Decision-making theory •Organisational ‘fit’ theory •Conflict theory •Organisation performance & measurement* •Commitment theory •Trust theory •High performance work systems •Goal setting and task theory •Teams theory •Group theory Human Capital Management practice/systems: •Expectancy theory •Talent management •Equity (justice) theory •Performance management •Motivation theory •Reward & recognition •Job satisfaction •Employer brand Individual Immediate Wider Organisation •Human capital retention •Needs theory Team Group •Resourcing & selection •Trait theory •Social cognitive/ •Training & Development self efficacy theory •Workforce diversity •Psychological contract •Leadership •Organisation Citizenship Behaviour •Organisation design •Taylor - Scientific management •Emotional Intelligence •Organisation communication •Munsterberg - Industrial psychology •Behaviourism •Organisation culture •Fayol - Principles of management •Cognitive dissonance •Follett - Management relations/integration •Learning theory •Mayo/Hawthorne studies •Wellbeing/Burnout •Lewin (MIT) - group dynamics/behaviour •Other I/O psychology •Likert – Management system/measurement scale contributions •Tavistock – Socio-technical systems •McGregor Theory X/Y •Hertzberg – Two factor theory •Drucker – Practice of management 75Source: The antecedents of Employee Engagement, Nicholas J Higgins - VaLUENTiS technical paper 2003 •Kahn – Personal engagement
    • HR as… Evidenced Based Management (EBM) Practitioner Objective: Proficient knowledge embedded across HR function to enable good working knowledge to be embedded across organisation.
    • What got us here/Getting us there…2 • Many definitions omit productivity or performance Working definition of Employee Engagement • Definitions vague – difficult to translate to frontline • Too few involved in the ‘understanding process’ 77
    • Employee Engagement Definition One that provides the basis of a measurable construct (and simplified from the overall EE complexity):“Employee engagement is an ‘outcome-based’ concept*. It is the term used todescribe the degree to which employeescan be ascribed as ‘aligned’ and ‘committed’to an organisation such that they are attheir most productive.” VaLUENTiS/ISHCM 2005*Consistent with Kahn’s original paper; employeeengagement as a concept but with a more performance-oriented and dimensional construct. 78
    • ‘P12 modes of productivity’ More likely to More likely to More likely to produce higher achieve goals set embrace set grade/quality of values work (less errors) More likely to be More likely to give flexible to discretionary effort More likely to ‘own’ More inclined to More inclined toorganisation needs (if above contractual their development input into ideas/ share knowledge equitable) obligations innovation Less likely to suffer Less inclined to take Less likely to move stress days off employer (but more likely to suffer burn-out) Applied across all job roles in the context of the role specificity and environment which impact on individual and collective performance 79
    • Staff engagement: The challenge for organisations (The A-C Matrix) Fully congruent ‘Doing the right things the right way for the right reasons’ Knows what to do/achieve Could do Fully “Only one box in but unlikely to more productive achieve it nine reflects the constant ‘high bar’ Less than challenge forIndividual’s More likely to optimally organisations in degree of have Job gets performance/ productive - optimising Alignment capability issues done Could do more ‘well’ engagement across the workforce on a Likely to have performance, More likely to High probability daily basis” ‘Doing the wrong have objective attitudinal of wasted things/ wrong way/ and/or and/or effort/ wrong reasons’ ‘potential’ behavioural frustration issues Incongruent issues ‘Having to stay’ ‘Feeling of ought to stay’ ‘Wanting to stay’ Continuance Degree of Affective © VaLUENTiS Ltd 2002-12 80 Commitment
    • Staff engagement: The challenge for organisations (The A-C Matrix) Fully congruent ‘Doing the right things the right way for the right reasons’ Knows what to do/achieve Could do Fully 5% but unlikely to 15% more 15% productive achieve it Less than “TypicalIndividual’s More likely to optimally degree of have Job gets organisational 10% performance/ 25% done 10% productive - split” Alignment capability issues Could do more ‘well’ Likely to have More likely to performance, High probability ‘Doing the wrong have objective attitudinal of wasted things/ wrong way/ 10% and/or 5% and/or ‘potential’ 5% effort/ wrong reasons’ behavioural frustration issues Incongruent issues ‘Having to stay’ ‘Feeling of ought to stay’ ‘Wanting to stay’ Continuance Degree of Affective 81 Commitment © VaLUENTiS Ltd 2002-12
    • HR as… Knowledge Facilitator Objective: HR function facilitates ‘organisation learning’ and enables distributed ‘ownership’ of working definition of employee engagement for frontline use.
    • What got us here/Getting us there…3 • Poor survey design, measurement and analysis Measurement wisdom • ‘Laissez-faire’ process, over-focus on response rate • Over-focus on line item benchmarking 83
    • The employee survey expertise modelHIGHHCM subject matter expertise Myopic 20/20 Foresight Result: Result: organisation has misleading or erroneous sufficient in-depth, robust interpretation knowledge to act upon Blind Unfocused Result: end up with ‘garbage in- Limited insight due to limitations garbage out’ syndrome of HCM knowledge Survey instrument design & measurement expertiseLOW HIGH “Still too many in2006 red box…” © ISHCM the 84
    •  Awareness of objectives/goals 27 35 15 12 8 3  Local management/leadership role model 28 25 24 11 12 1 Individual’s behaviour aligned 30 31 11 15 10 3  Intra-team relations/cohesiveness 15 28 13 23 18 3 Individual ‘fit’ with assigned roles 28 44 12 9 5 2  Have resources to carry out job 21 32 7 33 13 4 Performance management effectiveness 21 29 7 19 22 2  Team effectiveness/trust 18 31 9 23 15 4 People receiving timely feedback/acted on 24 25 14 22 12 3  Physical environment/facilities 24 37 19 12 7 1 Know capabilities for promotion 14 25 6 20 27 8  Work-life balance 9 22 10 32 22 5 SMART targeting/goals 24 33 11 24 6 2  Sense of accomplishment 22 33 5 18 17 5 Values alignment 20 21 9 21 25 4  Team diversity 21 20 19 17 17 6Line of Operating culture Work  Inter-team relations/cohesiveness 11 18 15 26 22 8Sight  Organisation decision rights  Performance/talent management 13 15 24 28 18 10 19 23 16 15 10 9 Environment OVERALL   ‘Corporate’ leadership 8 21 14 26 26 5 OVERALL OVERALL   Pride with organisation 24 31 14 17 11 3  OVERALL   Effective decision-making 11 17 13 29 26 4 OVERALL Reward &  Work values Learning & 18 29 11 25 14 3  Organisational trust & openness 9 20 14 30 21 6 This is an example where front-line client projects meet management learning.Recognition Development ‘5D’ Employee Engagement case study diagnostic sheet © 2004-12 VaLUENTiS has customised Harvard/ECCH case studies by adding employee 5 21 Reward equity intra-organisation 22 31 6 21 17 3  Individuals possess requisite competencies 23 42 6 3 engagement profiles along with32 24 2 capital data and analytics to create a7 far Reward equity extra-organisation 13 20 9 human  Utilisation of individual skills 17 29 24 17 6 Benefits package component balanced practical learning experience for managers/practitioners.7 more enriched and 19 29 7 25 15 5  Pro-active training/ learning 18 25 26 19 5 Performance-reward link 20 20 10 26 21 3  Opportunities for personal development 14 22 12 29 20 3 Recognition for contribution  Structured coaching/mentoring It’s also unique and cheap to 8deliver (and also effectively on-demand). 14 21 31 21 5 12 25 8 25 22 8 Promotion for contribution/performance 19 29 15 21 12 4  Job/role architecture 14 32 15 20 13 6 Incentives encourage correct behaviour 7 24 10 29 21 9  Career progression paths 19 33 7 21 17 3 Incentives encourage achievement 17 28 16 18 16 5  Succession planning 13 24 6 29 21 7
    • Employee Engagement triangulation “Squaring the circle…” New (re)hire data Customer/client/ Performance patient/citizen appraisal data data Social media data Employee/management survey dataCritical Case dataincident data Organisation Other internal event log data survey/assessment data Exit data 86
    • HR as… Smart Operator Objective: HR function collectively possesses (or has access to) measurement nous in people management evaluation.
    • What got us here/Getting us there…4 • Tendency to focus on one-off isolated actions Actioning infrastructure • Still treated as ‘imposed task’ not as part of culture • Over-focus on PR/Branding 88
    • Actioning Employee Engagement Infrastructure(Purpose: ‘to embed’) ‘Live’ Employee Engagement adapted QFD Defined ‘how to’ (‘House of strategies around Quality’) People Manager engagement evaluation/ elements appraisal Supportive top (regular leadership and ‘practice runs’) OrganisationLinks into wider event logsorganisation ‘signalling’…intelligence EE relatedanalytics development/ Multi-survey learning mapping and programmes & workshops ‘Interactive’ people planning management evaluation overlay process map Nominated Wider People Manager communications/ Engagement line branding champions Dedicated internal focus team or nominated ‘on-point’ person “Spinning plates cogs…” 89
    • Employee Engagement - Actioning Infrastructure 1 4 2 3 “Thus…” 90
    • HR as… ‘Perpetual’ Programme Director Objective: HR possesses the necessary ‘executive toolkit’ to hand, in driving/creating ongoing engagement programmes ‘to embed’ that complement organisation focus.
    • What got us here/Getting us there…5 • No EE playbook Dynamic EE-Performance ‘playbook’EE PLAYBOOK • Little knowledge capture • Signalling opportunities missed 92
    • EE playbook example content Contents Strategies 1. Engagement strategies 2. Engagement operating ‘system’ models and analytics templates 3. Question-statement selection and construct Models design 4. Measurement index construction, maintenance and reporting“Have you 5. Engagement Driver Factor (EDF) analysis “Would you Implementation 6. Engagement ‘forcefield’ analysisgot one…?” 7. EE project management methodology and flowcharts like one…?” 8. Engagement ‘issue work-through’ tools 9. Management learning programme design and evaluative criteria Learning 10. Engagement Transformation Programme (ETP) methodology 11. Core applied theory summary capsules 12. Human Capital Management framework 4 EE playbook 93
    • HR as… ‘EE Playbook’ Guardian Objective: HR function creates, maintains and evolves the ‘EE playbook’ on behalf of the organisation to enable frontline dissemination (whilst also signalling serious intent/reinforcement).
    • What got us here/Getting us there…6 • Too few managers with understanding of EE Competent leadership/managementDELETE • Little focus on managers own ‘engagement’ • Still too much tolerance of poor or average leadership/management 95
    • 910 ‘Line Management’ engagement score by 860 percentile 813 790 760 “Often overlooked: Impaired manager engagement… And its impact…” Management client cadre sample 2010-11 Sample size: 1400 managers representing 20,000 employees 96Source: VaLUENTiS Engagement database Score range 200-1000
    • ‘Line Management’ engagement scores ‘bell curve’“Same data as previous slide – different Management client cadre sample 2010-11graphic format… Sample size: 1400 managersLooking outside ‘norms’ that’s one in (employee population: 20,000)seven line managers posing serious Score range 200-1000concern…” 14.5% below one 13.9% above one standard deviation standard deviation 200 738 1000 “And so…” 97Source: VaLUENTiS Engagement database
    • HR as… People Management ‘Enforcer’ Objective: HR function as ‘enabler/enforcer’ to ensure cohort of well-trained/engaged people managers exists within organisation.
    • EE Pillars and HR Masks…[recap] Grounded understanding of Employee EBM Practitioner Engagement Working definition of Employee Knowledge Facilitator Engagement Measurement wisdom Smart Operator Actioning infrastructure ‘Perpetual’ Programme DirectorEE PLAYBOOK Dynamic EE-Performance ‘playbook’ ‘EE Playbook’ Guardian Competent leadership/management Management ‘Enforcer’DELETE 99
    • What got us here/Getting us there…7HR functions have to embrace the factthat the de facto ‘reason for being’ is tobe instrumental in optimising employeeengagement within their organisation.“It’s no good talking about recruitment or talentmanagement or any other HR processes for that matter ifemployee engagement is not embedded as core……Impaired engagement means individual effort and talentis just wasted. So therefore, what is the point of it notbeing de facto?” 10 100 0
    • The ‘4-ball’ Employee Engagement reality matrixPillar ‘PLAY DOWN’ ‘PLAY ACT’ ‘PLAY SAFE’ ‘PLAY MAKE’ Grounded I Exists in pockets with Good working knowledge understanding of Limited. Little. variation in line embedded across employee engagement Mostly ephemeral in nature. management. organisation. Maybe borrowed with II Working definition of Most likely borrowed Distributed ‘ownership’, internalisation or adapted employee engagement No definition in use. without any real ownership, whether borrowed, adapted after some organisational or ‘false’ ownership. or created. focus. Probably undertaking Will do measurement basics, People managementIII Limited to absenteeism Measurement wisdom surveys but with no valid even to the extent of evaluation/measurement metrics, employee surveys construct; response rate/PR engagement index etc. seen as ‘core’ on a par with seen as event driven if done. main focus. Tick box is main focus. CRM , finance etc. Probably in the form of basic Will have a number of Will have necessary ‘toolkit’IV Probably in the form of basic Actioning management courses. Most actioning elements in place to hand with ongoing training/management Infrastructure likely carry out some form of but not necessarily joined programmes to suit courses. branded programme. up. organisation focus. May have something Playbook in the form of Easy access in different e- V EE-Performance Playbook Does not exist. articulated on ‘strategies’. Most likely collection of ‘manager manual’ or on-line knowledge-share. Still being /physical formats at different levels. Signals irrelevant case studies. developed. ‘embedded’ intent. Will have varied mix of Will have varied mix of Will have varied mix of Cohort of well-trainedVI Competent leadership/ management skilled people managers. Existing good performers skilled people managers. Existing good performers skilled people managers but level of competency higher people managers exists with talent pools. Regular more through luck. more through luck. than Play-Act organisations. evaluation/reinforcement. Where is your organisation currently…? 101
    • The ‘Play-Maker’ programme approach to Employee Engagement: The first 100 daysVaLUENTiS has developed the ‘six-pillarprogramme’ to help organisations to geton/stay on the ‘Play-Maker’ approach. We callit the ‘100 day EE bootcamp’ for organisations.Want to try?
    • The Conference Board: CEO Top Ten Challenges 2013 “Just in” 2013 rank CHALLENGES 2013 2012 rank N = 729 N = 776 1 Human capital 2 2 Operational excellence na1 3 Innovation 1 4 Customer relationships 7 5 Global political/economic risk 3 6 Government regulation 4 7 Global expansion 5 8 Corporate brand and reputation 9 9 Sustainability 8 10 Trust in business na2Source: The Conference Board CEO Challenge 2013 (www.ceochallenge.org) 101Operational excellence replaced Cost optimisation; 2Trust in business replaced Investor relations 103 3
    • Getting us there the ‘Play Maker’ way…Pillar ‘PLAY DOWN’ ‘PLAY ACT’ ‘PLAY SAFE’ ‘PLAY MAKE’ Grounded I Limited. Exists in pockets with Good working knowledge understanding of Little. Mostly ephemeral in variation in line embedded across employee engagement nature. management. organisation. Maybe borrowed with II Working definition of Most likely borrowed Distributed ‘ownership’, internalisation or adapted employee engagement No definition in use. without any real ownership, whether borrowed, adapted after some organisational or ‘false’ ownership. or created. focus. Probably undertaking Will do measurement basics, People managementIII Limited to absenteeism Measurement wisdom surveys but with no valid even to the extent of evaluation/measurement metrics, employee surveys construct; response rate/PR engagement index etc. seen as ‘core’ on a par with seen as event driven if done. main focus. Tick box is main focus. CRM , finance etc. Probably in the form of basic Will have a number of Will have necessary ‘toolkit’IV Probably in the form of basic Actioning management courses. Most actioning elements in place to hand with ongoing training/management Infrastructure likely carry out some form of but not necessarily joined programmes to suit courses. branded programme. up. organisation focus. May have something Playbook in the form of Easy access in different e- V EE-Performance Playbook Does not exist. articulated on ‘strategies’. Most likely collection of ‘manager manual’ or on-line knowledge-share. Still being /physical formats at different levels. Signals irrelevant case studies. developed. ‘embedded’ intent. Will have varied mix of Will have varied mix of Will have varied mix of Cohort of well-trainedVI Competent leadership/ management skilled people managers. Existing good performers skilled people managers. Existing good performers skilled people managers but level of competency higher people managers exists with talent pools. Regular more through luck. more through luck. than Play-Act organisations. evaluation/reinforcement.Overall value to organisationperformance/competitive NEGATIVE NEGATIVE NEUTRAL POSITIVEadvantage
    • “Finally, remember the performance link - EmployeeEngagement triangulation converts from...” New (re)hire data Customer/client/ Performance patient/citizen appraisal data data Social media data Employee/management survey data Critical Case data incident data Organisation Other internal event log data survey/assessment data Exit data 105
    • “To this - The Engagement-Performance Matrix” Performance areaNew (re)hire dataPerformanceappraisal dataEmployee/manage “There isment survey data much thatCase data organisations can do forOther internal survey/assessment data themselves”Exit dataOrganisation event ‘Hawthorne’log data for the 21stCritical incidentdata Century organisation”Social media dataCustomer/client/patient/citizen data 106
    • ‘Your mission shouldyou choose to accept it…’ ‘Think HR. THANK YOU. Think Human Capital.’ Tour 2013
    • Employee Engagement: What got us here, won’t get us there The new reality for ambitious HR functions Presenter: Nicholas J Higgins CEO, VaLUENTiS & Dean,International School of Human Capital Management (‘ISHCM’) ‘Think HR. Think Human Capital.’ Tour 2013 VaLUENTiS-ISHCM Productions 2013 …… 10 8
    • Nicholas J Higginsnicholas.higgins@valuentis.comVaLUENTiS Ltd, 2nd Floor, Berkeley Square House,Berkeley Square, London W1J 6BDHO: +44 (0)207 887 6108M: +44 (0)7811 404713www.valuentis.comwww.ISHCM.comwww.NicholasJHiggins.comwww.HCglobal.blogspot.com
    • Employee Engagement Solutions Evidenced based definition, understanding and application GlobalWhat we bring… reach Measurement wisdom Senior management and expertise feedback sessions Performance link Line of sight Reward (equity) ‘License to manage’ Work On-line tools programmes environment and analytics Development Operating culture Frontline blended Survey design learning expertise ActioningVaLUENTiS Ltd,2nd Floor, Berkeley Square House, strategies and ProjectBerkeley Square, London W1J 6BD tactics THE EE managementHO: +44 (0)207 887 6108/21 PLAYBOOK expertise ‘Ten years ofwww.valuentis.com innovation…’www.ISHCM.com
    • ManagementP athfinder® Think Human Capital.
    • Smart. Smarter. Smartest... Professional Services www.valuentis.com‘The leading human capital management specialists’ ‘PEOPLE SCIENCE®’ Organisation Intelligence to improve organisation performance • Human Capital Management Evaluation • Employee Engagement • Talent Management • Workforce Productivity & Performance • Predictive Analytics • HC Forensics & Risk • HR Function ROI Analysis • Organisation Measurement • Management Education • Organisation Strategy SOLUTIONS
    • 2nd Floor, Berkeley Square House,Berkeley Square, London W1J 6BDTel: +44 (0)207 887 6121 …+Fax: +44 (0)207 887 6100enquiries@ISHCM.comwww.ISHCM.com Think HR. Think Human Capital.™ Human Capital Only one place to learn Management. Being human is unique. Attaining an M Sc in HCM is even more so.