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Ceb career moments presentation

Ceb career moments presentation






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    Ceb career moments presentation Ceb career moments presentation Presentation Transcript

    • Why Career Moments Matter...And What You Can Do About ThemCEB Compliance and Ethics Leadership Council
    •  2© 2013 The Corporate Executive Board Company.All Rights Reserved. CELC5704813SYNACCELERATION OF CORPORATE CHANGEMacroeconomic, market,and business uncertaintydrive frequent changesto corporate strategy,financing, and operatingprocesses.■■ In the past two years,84% of companiesexperienced a significantcompany-wide change.n = 63.Key Trends Driving Corporate ChangeCompanies Experiencing Change in the Past Two YearsCommunications Executive Council Member Survey, 2012Single Company-Wide Change0%35%70%0%6%10%19%65%NoChangeMinorChangeIsolatedChange in BUMultiple Company-Wide ChangeMacroeconomic Changes■■ Slow, volatile economic growth■■ Uncertain interest rates■■ High unemployment ratesMarket Changes■■ Increase in global regulationsand uncertainty in enforcement■■ Advance in technology■■ Shift in consumer demandProduction Changes■■ Increase in supply chain risks■■ Shift in employeedemographics, geography,and expectations
    •  3© 2013 The Corporate Executive Board Company.All Rights Reserved. CELC5704813SYNEMPLOYEES FEEL THE PAIN Percentage of Employees Experiencing Given Career Moment in the Past YearSelect Employee Moments , CELC Survey Data 2012Corporate changesmanifest as careermoments for employees.■■ Eighty-three percentof employees haveexperienced careermoments in the past year.■■ On average, employeesexperience 2.2 careermoments per year.n = 3,311.Degree of Change FatigueCompany Reported, CEC Member Survey 2011n = 63.0%25%50%2% 3%10%24%44%14%3%Not at All Very Low Low Moderate High Very High SevereFrequencyofResponseIncreasing StressSixty-two percent of corporateemployees agree that workplacestress has increased in the pasttwo years.LayoffsofTeamMembersSignificantOrganizationalRestructuringSubstantialChangein SeniorLeadershipChangeinYourDirectManagerHiringFreezeSignificantChangein JobResponsibilitiesWageFreezeorSalaryCapReductioninBenefitsTransfertoNewTeamReductionorEliminationinVariablePaySignificantChangeintheSkillsYouUseEarlyRetirementOfferMerger/AcquisitionMandatoryUnpaidLeave/FurloughPromotiontoManager0%25%50%23% 21% 20% 18% 17% 15% 14% 13%10% 9% 8% 7% 5% 5% 4%
    •  4© 2013 The Corporate Executive Board Company.All Rights Reserved. CELC5704813SYNA SCIENTIFIC APPROACHCELC’s Workforce Change Survey, 2012The CELC launcheda new-to-world surveyto understand theimpact of careermoments on employeebehaviors, perceptions,and receptivity to trainingand communications.■■ The CELC exploredthe relationship betweenspecific career momentsand the related corporateand compliance response.What Impact Do CareerMoments Have on EmployeeBehavior?Which Career MomentsDo Employees Experience?How Can Compliance andEthics Maximize IntegrityDuring Times of Change?Impact■■ Observations of Misconduct■■ Misconduct Reporting Rate■■ Perceptions of Integrity■■ Employee Engagementand Discretionary EffortCareer Moments■■ Corporate Change 1■■ Compensation/BenefitChange 2■■ Role and Team Change 3■■ Promotions 4Intervention■■ Timing of Intervention■■ Channel of Intervention■■ Content of InterventionEmployee Demographics■■ 3,311 responses from full-time employees of largeorganizations (500+employees)■■ 25+ countries represented■■ Respondents representfull range of industriesand corporate positions■■ Average respondent ageof 37.41 Corporate Change: Layoffs of team members, significant organizational restructuring, merger/acquisition,and/or substantial change in senior leadership.2 Compensation/Benefit Changes: Wage freeze or salary cap, reduction in benefits, reduction or eliminationin variable pay, mandatory unpaid leave/furlough, hiring freeze, and/or early retirement offer.3 Role and Team Change: Significant change in job responsibilities, significant change in skills you use,change in your direct manager, and/or transfer to new team.4 Promotions: Promotion to manager and general promotion.
    •  5© 2013 The Corporate Executive Board Company.All Rights Reserved. CELC5704813SYNImpact of Career Moments1on Observations of MisconductBy Number of Career Moments in the Past Year (Excluding Promotions)0%25%50%PercentageofEmployeesObservingMisconductNoMoments5–10MomentsFourMomentsThreeMomentsTwoMomentsOneMomentBenchmark Average = 27.9%n = 3,311.INTRODUCING CHANGE RISKCareer moments havea significant impacton observations ofmisconduct, reportingrates, and perceptionsof integrity.■■ Employees experiencingtwo or more career momentsin a given year observetwice as much misconductas other employees.Impact of Career Moments on Employee Perceptions of IntegrityBy Number of Career Moments in the Past Year (Excluding Promotions)n = 3,311.EmployeePerceptionofIntegrityNoMoments5–10MomentsFourMomentsThreeMomentsTwoMomentsOneMoment-12%-6%0%A 4% decline is equivalentto moving from middle tobottom-quartile scores inperceptions of integrity.Career Moments andReporting■■ Employees morefrequently reportmisconduct as theyexperience additionalcareer moments.■■ Reporting ratesincrease mostsignificantly duringrole or team changes.1 Career moments excluding promotions.
    •  6© 2013 The Corporate Executive Board Company.All Rights Reserved. CELC5704813SYNImpact of PromotionsNot surprisingly,promotions—particularlypromotions tomanager—decreaselevels of observedmisconduct.IDENTIFYING TOP CHANGE RISKSCompliance Risk1of Specific Career MomentsConsidering thelikelihood and impactof each career momentillustrates the magnitudeof change risk.■■ Career moments increaserisk by:–– Causing employee stress,–– Creating control gaps,–– Exposing employees tonew rules and operatingprocedures beforereceiving appropriatetraining, and–– Changing perceptionsof company integrityand willingness torationalize behavior.Corporate ChangesCompensation/BenefitChangesRole and Team ChangesTop Four Risks 21. Layoffs2. OrganizationalRestructuring3. Change in SeniorLeadership4. Change in JobResponsibilitiesPercentageofEmployeesObservingMisconductatMomentinPastYearPercentage of Employees Experiencing Moment in Past Year1 The CELC attempted to isolate the compliance risk of specific moments. While some moments do happen in tandem, factor analysis reveals a relativelylow and random relationships between specific moments.2 Risk Ranking is defined as the frequency of moments multiplied by the percent change in observed misconduct. This score represents the grosscompliance risk of a moment.0%15%30%0% 15% 30%LayoffsOrganizationalRestructuringChange in Job ResponsibilitiesChange in SeniorLeadershipChangein DirectManagerTransfer toNew TeamNoMomentsChange in theSkills You Use HiringFreezeWage FreezeReduction/Eliminationin Variable PayMandatoryUnpaidLeave/FurloughMerger/AcquisitionEarlyRetirementOfferReduction in Benefits
    •  7© 2013 The Corporate Executive Board Company.All Rights Reserved. CELC5704813SYNTHE MAGNITUDE OF CHANGE RISKKey career momentstrigger significantincreases in specifictypes of misconduct.■■ Employees experiencingcorporate layoffs observe1.7x as much inappropriategiving, 3x as much bribery,3.5x as much fraud, and4x as much insider tradingas unaffected employees.What the Numbers MeanDuring layoffs, for every 10,000employees, an additional 500employees would observefraud.Observations of Inappropriate GivingPercentage of Employees Observing During Select MomentObservations of BriberyPercentage of Employees Observing During Select MomentObservations of FraudPercentage of Employees Observing During Select MomentNoMomentLayoffsOrganizationalRestructuringChangeinSeniorLeadershipChangeinJobResponsibilities0%5%10%3%5% 5% 5%9%Observations of Insider TradingPercentage of Employees Observing During Select Moment0%5%10%2%7%6%7%6%NoMomentLayoffsOrganizationalRestructuringChangeinSeniorLeadershipChangeinJobResponsibilities0%5%10%1%4%2% 2%3%NoMomentLayoffsOrganizationalRestructuringChangeinSeniorLeadershipChangeinJobResponsibilities0%5%10%2%6%5%4%5%NoMomentLayoffsOrganizationalRestructuringChangeinSeniorLeadershipChangeinJobResponsibilities
    •  8© 2013 The Corporate Executive Board Company.All Rights Reserved. CELC5704813SYN0%40%80%73%70%62% 61% 61%58% 58%56% 56%54% 54%50%48%35%REPORTING THROUGH CHANGEEmployee Reporting Rates1By Career MomentsEmployee reportingrates increase duringmost career moments.■■ Employees may feelmore willing to speak-up before they becomeinvested in workplacepractices and withnew colleagues.■■ Compliance and ethicsofficers should mine these“amnesty” periods whereemployees can criticallyreview workplace practicesand accepted norms.Role and team changes significantly increase reportingand represent a valuable opportunity to solicitinformation about workplace practices and culture.Role and TeamChangesCorporate ChangesCompensation/Benefit ChangesAReductionorEliminationinVariablePayLayoffsofTeamMembersAReductioninBenefitsASubstantialChangeinOneorMoreSeniorLeadersMandatoryUnpaidLeave-FurloughAHiringFreezeANewEarlyRetirementOffertoEmployeesAChangeinYourDirectManagerAMerger-AcquisitionATransfertoanEntirelyNewTeamAWageFreezeorSalaryCapASignificantOrganizationalRestructuringASignificantChangeintheSkillsYouAreUsingASignificantChangeinJobResponsibilitiesEmployeeReporting RateAt No Moments= 45%Reduction or elimination in variablepay (and compensation changesgenerally) may suppress reporting.n = Varies by moment.1 Reporting Rate—Percent of employees that report observed misconduct to an internal party (manager, compliance, helpline, etc.).
    •  9© 2013 The Corporate Executive Board Company.All Rights Reserved. CELC5704813SYNTwo-thirds of employeesdo not receive theappropriate amountof information duringa career moment.■■ To relieve employee stress—and improve positiveoutcomes—the CELCidentified the attributesthat impact employeebehavior during careermoments.■■ The proper timing, channel,and content of complianceinterventions explains 40%of changes in employeeperceptions of integrityduring key career moments.NOT YET MEETING THE CHALLENGEEmployees Receiving Right Amountof Information1Percentage of Employees at Career Moment34%ReceivedAppropriateAmount ofInformation46%Neutraln = 2,218.1 Employees were classified as having “Received Appropriate Amount of Information” if they had scores of 5.0 or higher on a 7-point agreement scale.Scores below three were classified as “Not Receiving Appropriate Amount of Information.”2 Regression analyses were conducted to determine the aspects of outreach most indicative of higher perceptions of integrity and lower rates of observedmisconduct. While a wide range of demographic and independent variables were included in the model, the three variables above provided the highestlevel of explanatory power.20%Did NotReceiveAppropriateAmount ofInformationTiming of CommunicationChannel of CommunicationContent of Communication123Attributes of Effective Complianceand Ethics Interventions2
    •  10© 2013 The Corporate Executive Board Company.All Rights Reserved. CELC5704813SYNCREATING EFFECTIVE INTERVENTIONSAttributes of Effective Compliance and Ethics InterventionsCELC identified theattributes of timing,channel, and messagewith the greatestimpact on employeeperceptions, misconduct,and engagement.■■ This research helpscompanies target theright employees withthe right message atthe most critical times.1 Timing—Employees were asked if they received compliance and ethics messages before, during, and/or after career moments.2 Channel—Employees were asked who they received communications from senior leaders, corporate functions (HR, Legal, Corporate Communications),managers (formally), managers (informally), peers, media, social media, and unions.3 Message—Employees were asked if they received six key messages surrounding the moment(s).Intervention Timing1Key AttributeCommunicate before (as soonas practical) a career moment.Intervention Impact■■ Reduces observationof misconduct by 20%.■■ Increases employee reportingrate by 5%.■■ Increases perceptions in integrityby 21%.Intervention Channel2Key AttributeUse direct managers tocommunicate through a careermoment.Intervention Impact■■ Reduces observationof misconduct by 21%.■■ Increases employee reportingrate by 34%.■■ Increase perceptions of integrityby 26%.Intervention Message3Key AttributeCommunicate the importance ofintegrity through a career moment.Intervention Impact■■ Reduces observationof misconduct by 37%.■■ Increases employee reportingrate by 54%.■■ Increases perceptions of integrityby 40%.Key TeachingReaching out to employees beforea career moment can mitigate theincrease in misconduct and declinein integrity almost entirely.Key TeachingEffective manager involvement at keycareer moments reduces misconductand significantly increases employeereporting.Key TeachingEmployees seek different messagesat different moments, but requirea foundation that empowers ethicaldecision making.
    •  11© 2013 The Corporate Executive Board Company.All Rights Reserved. CELC5704813SYNPUTTING IT ALL TOGETHERIdeal Intervention AttributesCouncil AnalysisPotential Impact on EmployeePerceptions of IntegrityPercentage Change in Perceptions of Integrityby InterventionPotential Impact on EmployeeObservations of MisconductPercentage Change in Observations of Misconductby InterventionDelivering the mosteffective interventionsimproves employeeperceptions of integrityby 40% and reducesobserved misconductby almost two-thirds.■■ Effective interventionsactually improve employeeperceptions above pre-moment levels.■■ Change is not justan under appreciatedrisk, but a significantcompliance opportunity.Beforea career momentFromdirect managers+ Importanceof integrity+IdealIntervention 1Least EffectiveIntervention 2∆ = 73%1 Ideal intervention is made up of communication before the event, through a direct manager, and messages about the importance of ethicalintegrity. Least effective intervention is made up of communication after the event, through a formal channel, about the organization’s responseto misconduct.2 Ideal and least effective interventions were calculated by comparing the integrity scores for the various combinations of interventions.An intervention had to have at least 10 individuals experience it in order for it to be included.An ideal intervention increases perceptions above thelevel of employees who experience no moments.Timing Channel ContentIdealIntervention 1Least EffectiveIntervention 2Beyond Compliance:Business CaseIdeal interventions increase:■■ Employee engagementby 23%■■ Discretionary employeeefforts by 8%(23%)
    •  12© 2013 The Corporate Executive Board Company.All Rights Reserved. CELC5704813SYNOVERVIEW OF SOLUTIONSToday’s sessionwill focus on leadingstrategies for buildinga moments-responsiveprogram that maximizesintegrity at key careermoments.1Integrate Complianceat Key Career Moments2Equip Managers toLead through Moments3Create Moment-Relevant MessagesEstablishing Tone at the Start Fostering Early EthicalLeadershipCreating Moments-Responsive MessageShaping AcquiredEmployee PerceptionsAligning Company Valuesto Managerial DecisionsMeasuringOrganizational HealthIdentifying Role-SpecificLearning NeedsEmbedding Compliancein Senior Manager PrioritiesSimulating Consequencesof Future DecisionsCELC Tools and ResourcesMoment-Specific Toolkits Ethical Leadership Portal ■■ Workforce Change Survey■■ Communications MessageGenerator
    • CEB Compliance and Ethics Leadership CouncilTo learn more about CEBCompliance and Ethics, please visitwww.ceburl.com/compliance-ethics