This is someone who is always looking for new and different ways of achieving the outcomes of their role.
Industry research indicates a direct link between employee engagement, customer satisfaction, and profits. A 5% increase in employee engagement could create a 1% increase in customer satisfaction and also increase profits by 50%. Who are your customers and what does an increase in profitability mean to them?
The most comprehensive research done was by Gallup. Two studies over the last 25 years What do the most talented employees need from their workplace? Over 1 Million employees surveyed 2500 business units 24 companies How do the worlds greatest managers find, focus, and keep talented employees? Results compared with company sales, profits, customer satisfaction scores, employee turnover figures, employee opinion data, and 360 feedback forms Over 80,000 1.5 hour interviews have been conducted, tape recorded, and transcribed over the last 25 years.
Key learnings from the Gallup studies: Employee focused initiatives are not unimportant, but immediate managers are more important. They define and pervade the work environment. If a Manager sets clear expectations, know their employees, trust them and invest in them, then employees will forgive the company its lack of other benefits. Talented Employees need great Managers. They may join a company for its great leaders or benefits, but how long they stay and how productive they are while there is determined by their relationship with their immediate supervisor.
Research shows the link between a manager and employee is so strong, that employees don’t leave companies… they leave managers. (Click to show message) Once this is understood, it becomes obvious that the key to employee engagement is our management team. All of our research has validated this claim. The Gallup Organization was a primary resource. They have been researching this topic for the past 30 years and they say that effective communication is the key to good Management. The question our managers have is what do they communicate that will engage employees? (Click for next slide)
After surveying over 1 million employees at 2500 business units, the Gallup Organization has identified what the most talented employees need from their workplace. They say that when employees agree to a mere 12 questions, there is proof of increased productivity, reduced turnover, and higher profitability. The questions are sequential. (Click for arrow to move up the screen) Lower level issues must be addressed before employees will move up to higher levels of engagement. When I first read these questions I was really excited. The very next morning I went into Bruce Trippet’s office and told him “I have always known you were a good manager but now I know WHY you are so good.” What Bruce does well follows the Gallup questions (Click) he sets clear expectations and makes sure I have what I need to get my job done. (Click) He provides me with opportunities to do what I do best. He recognizes my work, and according to a consultant brought in by the Leadership Development team, this is the most effective type of recognition an employee can get. (Click) I also believe that he sincerely cares about me as a person. He certainly encourages my development or I wouldn’t be here today, and he’s a great listener. (Click) Finally he and others help me understand my importance to the company mission. (Click – New Slide)
Employee engagement overview of findings
Employee Engagement Presented by: Cindy Joice Director of Training and Development This is a subset of the original presentation that could be shared on the internet. For more information, contact Cindy Joice: firstname.lastname@example.org
Agenda• Defining Employee Engagement• Benefits of an Engaged Employee Base• Overview of Research & Key Learnings• How Managers Engage Employees• The Psychology behind engagement• Included in appendix – Research – Survey Statistics – Competencies Related to Engagement
What is Employee Engagement?An Engaged Employee is someone who:• is in a role that uses their talents• knows the scope of their job• relishes the challenge of their work• is 100% psychologically committed to their role
Higher employee engagementleads to higher profits Employee Customer Engagement Satisfaction A 5% Increase Creates a 1% Increase in Engagement In Customer Satisfaction Increases Profits by 50% Increased ProfitsSource: Harvard Business Review
Gallup Research• Two studies over the last 25 years – What talented employees need from their workplace • Over 1 Million employees surveyed • 2500 business units • 24 companies – How the worlds greatest managers find, focus, and keep talented employees • Results compared with company, customer, and employee metrics • Over 80,000 1.5 hour interviews
Key Learnings• Managers supersede all other employee initiatives – “If a Manager sets clear expectations, know their employees, trust them and invest in them, then employees will forgive a company its lack of other benefits.”• Talented Employees need great Managers. – Reasons for joining organization are different from staying – Staying is determined by relationship with supervisor. –Quotes from “First Break all the Rules” by Marcus Buckingham and Curt Coffman
–Quote from “First Break all the Rules” by Marcus Buckingham and Curt Coffman
How Managers Engage Employees Engagement 6) Employee Development 5) Care about Employees 4) Performance Feedback and Recognition 3) Sense of Accomplishment 2) Training and Work Support 1) Clear expectations
Managers also facilitate higherlevels of Engagement Engagement 12) Progress Discussions 11) Opportunities to Learn and Grow 10) Interaction with Colleagues 9) Teamwork and Cooperation 8) Connect Roles to the Company Mission 7) Employee Involvement
Employee Engagement Survey Responses % Strongly AgreeEmployee opinions and suggestions are 0% Employeetaken seriously in my company’sdecision-making process 72% Involvement 29% Sense of My company inspires me to do my 4% best work every day 56% Accomplishment Training and I have the information I need 8% 29% to do my job well Work Support 33%what is expected of me at work 15% 62% Expectations 50% Opportunity Group 1 Best Practice Group 2 Gallup 75th Percentile
Employee Engagement Survey Responses % AgreementEmployee opinions and suggestions are Employeetaken seriously in my company’s 25% 33% Involvementdecision-making process Sense of My company inspires me to do my 38% 67% Accomplishment best work every day Training and I have the information I need to do my job well 62% 73% Work Supportwhat is expected of me at work 63% 91% Expectations Opportunity Group 1 (small group) Total Company – Non Exempt
The Psychology behind EngagementMaslow’s Hierarch of Needs Self - Actualization Esteem Needs Belonging Needs Safety Needs Physiological Needs
Appendix Research Employee surveys 1700 employee – 260 replies (15%) 1700 management - 700 replies (41%) 46 Distribution employees – 26 replies (57%) External companies Best Buy Land O’Lakes interviewed General Mills Medtronic Georgia Pacific Northwest Airlines Hormel Wells Fargo Industry research Watson Wyatt, Hewitt, IABC, Communication Executive Council, Ragan Report, Gallup Organization, Harvard Business Review, etc. Senior management 24 interviews Business units 5 interviews Corp Communications & HR 9 interviews
Appendix Competencies related to engagement Elements of Engagement Related Competencies 1) Clear Expectations Directing Others 2) Training and Work Support Informing 3) Sense of Accomplishment Managing and Measuring Work 4) Performance Feedback and Recognition Motivating Others 5) Care about Employees Caring About Direct Reports 6) Employee Development Developing Direct Reports 7) Employee Involvement Listening 8) Roles are connected to SUPERVALU’s Mission Building Effective Teams 9) Teamwork and Cooperation Interpersonal Savvy 10) Interaction with Colleagues 11) Opportunities to Learn and Grow 12) Progress Discussions