PPMA Annual Seminar 2014 - Public and Proud - Workforce Engagement for the Future

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PPMA Annual Seminar 2014 - Public and Proud - Workforce Engagement for the Future

  1. 1. Advise | Design | Integrate | Deliver Employee Engagement – Serco’sJourney
  2. 2. Serco Internal 2 The Barriers The Journey so far 3 Why Agenda 4 How The Tipping Point5 2 1
  3. 3. Serco Internal The Journey So Far....
  4. 4. Serco Internal The Barriers 4  Engagement was just a survey  No senior leader buy-in  No accountability – it’s HR!  No internal evidence  No resources  No sharing best practice – suspicion
  5. 5. Serco Internal How? 5  Reality check - get out and about in the business  Creation of an Engagement Strategy  Develop case studies  Redesign and reposition the survey  Set up a Global Engagement network  Create resources to support managers  Business Linkage analysis  Develop an Engagement Master Class  Utilise internal social media platform  Build strong links with key stakeholders – internal and external
  6. 6. Serco Internal Why…… …does Engagement matter to -
  7. 7. Serco Internal 7 Engagement matters if we’re to become the World’s Greatest Service Company
  8. 8. Serco Internal 8 Serco Customer Net Promoter Scores (NPS) Contracts with high levels of employee engagement (65%+ engaged) Contracts with opportunity levels of employee engagement (45-64% engaged) Contracts with risk levels of employee engagement (30- 44% engaged) Contracts with destructive levels of employee engagement (<30% engaged) Based on analysis of 133 contracts and 489 customers in the UK and Europe division in 2011. Employee engagement is a tool that can help retain and win new customers Serco has found that where employee engagement is high, there are more customers promoting Serco
  9. 9. Serco Internal 9 At Serco, trend analysis suggests high employee engagement predicts future customer satisfaction. The reverse relationship of customer satisfaction predicting future employee engagement does not appear to be as strong. The effects of employee engagement become stronger over time *IMPORTANT: We need to acquire the next wave of customer survey data to begin establishing whether the trend is statistically significant or not. ….but employee engagement will catch up with them if they neglect it
  10. 10. Serco Internal 1 0 Contract Director’s view of their contract? Employees’ experience of Serco delivering the contract? Is this sustainable? Immediate successes might tempt some to ignore engagement or say ‘what we’re doing now works and it doesn’t matter…..’
  11. 11. Serco Internal The five contract groups with notable relationships: How do employee engagement scores compare to operating profita 14% 11% 7% 0% 2% 4% 6% 8% 10% 12% 14% 16% High employee engagement (65%+) Opportunity employee engagement (45-64%) Risk / Destructive employee engagement (<45%) Operating Profit (EBIT) as a % of revenues 1 1 High engagement contracts produced DOUBLE the operating profits of risk/destructive engagement contracts. Contract groups represented Division reference Health UK and Europe Facilities Management UK and Europe Public Sector Education SGS UK and Europe Justice and Corrections ASPAC Middle East SME
  12. 12. Serco Internal 1 2 Contract Bid: £10m Contract Bid: £10m + Engaged employees + Governing Principles + Rapid engagement of TUPE employees Contract Bid: £10m + Specialist experience of similar contract Contract Bid: £10m + experience of having world’s largest contract portfolio Contract Bid: £10m + well known brand name in the market And it’s more than the numbers, it will make us stand out among competitors!
  13. 13. Serco Internal 1 3 Build a balanced portfolio Maintain high rebid and new win rates Make strategic acquisitions Develop new models • Engaged employees are committed to us. That reduces the risk that we lose our expertise that we can transfer to other markets. • Engagement helps build our base of customer promoters. This will help improve our rebid and new win rates. • Engagement helps to strengthen our brand and reputation. That helps make a better case for acquisition by Serco. • Engagement can help us collaborate effectively. • Engagement has been found to correlate with innovation and new ideas. To become the World’s Greatest Service Company Engagement will help us deliver on the core elements of our strategy
  14. 14. Serco Internal The Tipping Point 14 Disengagement!
  15. 15. Serco Internal The Tipping Point 15
  16. 16. Advise | Design | Integrate | Deliver Questions?

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