Employee Engagement Presentation


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This presentation describes employee engagement, the three inclinations employees have towward being engaged, a spectrum of engagement, eight factors that affect engagement levels, and information about surveys and the correlation between engagement - personal behaviors - business results.

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Employee Engagement Presentation

  1. 1. EmployeeEngagement Don Barkman The Business Center Oak Ridge, TN www.bizcenter.com 1
  2. 2. Objectives Acquaint you with:  What employee engagement is.  It’s relationship to business results.  How it is practiced.  How it is measured. Gain some personal insight about your organization’s engagement practices and level. The Business Center www.bizcenter.com 2
  3. 3. Agenda Definition of engagement. Introduction and history. Simple statistics. Correlation and causality. Engagement spectrum. Levels of engagement described. Engagement survey. 8 Engagement factors. Approaches to engagement & common practices. Surveys. The Business Center www.bizcenter.com 3
  4. 4. What is Engagement? If you had to write a definition of engagement in 25 words or less, what would it be? Write it now. You have 100 seconds. Share it with the person to your right. You are now engaged with our topic! The Business Center www.bizcenter.com 4
  5. 5. Definitions There Are Many “The harnessing of organization members’ selves to their work roles; in engagement, people employ and express themselves physically, cognitively, and emotionally during role performances.” Kahn 1990 The Business Center www.bizcenter.com 5
  6. 6. Definitions There Are Many “Consistently doing what is required to make the organization a success.” Barkman 2012 It’s not just more effort, it’s better effort. It’s willingly doing the right thing well. It’s about being engaged with your work and the total success of the enterprise. The Business Center www.bizcenter.com 6
  7. 7. History “Engagement” by any other name ... is “motivation.” 1950’s  Emery and Trist – Socio-technical systems. 1950  McClelland – Achievement motivation. 1953  Maslow – Need hierarchy – 5 levels. 1954 1960’s  McGregor – Theory X and Theory Y. 1960  Hertzberg – Motivators and dissatisfiers. 1968 Hackman and Oldham – Work redesign. 1980 Pink – Purpose, mastery, autonomy. 2009 The Business Center www.bizcenter.com 7
  8. 8. How about Us? What percentage of your workforce is:  Engaged – employees feel a strong connection to the organization and work with passion to innovate and improve.  Not Engaged – employees do the work expected of them; they put in time, but do not put in extra effort; some are described as “checked out.”  Actively Disengaged – employees aren’t just unhappy, they are spreading their unhappiness to coworkers and undermining their work. Take 15 seconds to list your three percentages. The Business Center www.bizcenter.com 8
  9. 9. Engagement Results Gallup Statistics – Engagement and good results are correlated. Engaged 33% 67% Not 49% 26% Engaged Actively 18% 7% Disengaged Average World Class The Business Center www.bizcenter.com 9
  10. 10. Do Statistics Lie? Of course not! But ... Firms who survey engagement and provide consulting service to improve engagement have an incentive to suggest engagement levels are suboptimal. One way to do that is to define “normal” effort as being “not engaged” while only superior effort qualifies for “engaged.” “A ‘fully engaged’ employee, by our definition, is one who can answer all the questions in the Gallup Q 12 with a strong affirmative.” The Business Center www.bizcenter.com 10
  11. 11. Engagement = Business Results ? a Correlation Quiz Fact: Higher engagement levels correlate with better business results. Conclusion: (Pick one)  A. More engaged employees produce better results.  B. A better performing business causes employees to become more engaged with it.  C. Cause and effect are not proven by this correlation. Birth rates in Europe are directly correlated with the stork population. The Business Center www.bizcenter.com 11
  12. 12. Does Engagement Matter? Engagement can influence personal behavior. Business results are influenced by personal behavior and other factors. Technology Competition Personal Behavior Economy Absenteeism Level Turnover Business Results of Safety Market Share Engagement Customer Treatment Profitability Quality / Output ROI, ROA, ROE Creativity /Innovation Stock Price The Business Center www.bizcenter.com 12
  13. 13. Agenda Definition of engagement. Introduction and history. Simple statistics. Correlation and causality. Engagement spectrum. Levels of engagement described. Engagement survey. 8 Engagement factors. Approaches to engagement & common practices. Surveys. The Business Center www.bizcenter.com 13
  14. 14. Engagement and Pace Everyone has a work pace.  Intense  Normal  Slow Example: Run / jog / walk / amble / rest. The majority operate at normal and step up to intense when required. A few are always intense or slow. It is fatiguing to work intensely all the time, but normal is sustainable indefinitely. The Business Center www.bizcenter.com 14
  15. 15. Employees’ Inclination to Engage Newton’s laws of Engagement:  Employees are naturally more, or less engaged unless acted upon by the organization. Natural inclinations to engagement:  Self-engaging – in their DNA.  Engageable – motivated by what surrounds them.  Resistant – disinclined to respond, regardless. The Business Center www.bizcenter.com 15
  16. 16. Engagement Spectrum Four degrees of engagement along a spectrum. Zone of discretionary effort. Firing line. Highly Engaged Normally Engaged Zone of Discretionary Marginally Engaged Effort Disengaged Firing Line The Business Center www.bizcenter.com 16
  17. 17. Inclinations Along the Spectrum Engagement Spectrum 3 Inclinations Highly Engaged Self-Engaging Engageable Normally Engaged Zone of Discretionary Marginally Engaged EffortResistant Disengaged Firing Line The Business Center www.bizcenter.com 17
  18. 18. Highly Engaged Gems Why isn’t everyone like this? Work extra hours or days. “Whatever it takes!” Make suggestions for improvements. Reach out to willingly help others. Go beyond the rules to help customers. Solve problems instead of passing them on. Stick up for the organization. Promote harmony. Take a leadership role in activities. Seek opportunities for growth and performance. The Business Center www.bizcenter.com 18
  19. 19. Normally Engaged Workers The Dependables Come to work every day. “A fair day’s work for a fair day’s pay” Come to work on time. Stay all day. Remain at the job. Refrain from distractions: internet, socializing. Refrain from personal business, calls, texts. Finish tasks correctly and on time. Treat others with respect. Follow the rules. The Business Center www.bizcenter.com 19
  20. 20. The Marginally Engaged & the Disengaged The Living Dead in the Workplace Miss work or cut hours short. “Loafing or leaving.” Find ways to avoid work. Give work to others. Say “It’s not my job.” Hide behind the rules. Bad mouth the organization and others. Use work time for personal items. Produce marginal quality or output of work. Do just enough not to get fired. Look for another job. Sabotage work processes. The Business Center www.bizcenter.com 20
  21. 21. An Engagement Survey Compared to how well you could perform at work, how much are you really exerting yourself? 5 = Using greater than 85% of my potential 4 = 70 – 84% 3 = 55 – 69 % 2 = 40 - 54% 1 = less than 40% of my potentialPoll : Show of hands. The Business Center www.bizcenter.com 21
  22. 22. Agenda Definition of engagement. Introduction and history. Simple statistics. Correlation and causality. Engagement spectrum. Levels of engagement described. Engagement survey. 8 Engagement factors. Approaches to engagement & common practices. Surveys. The Business Center www.bizcenter.com 22
  23. 23. Engagement Factors Different people respond to different sources of engagement. Must manage many factors to produce a total environment of engagement. Managing for engagement can also create an attractive and satisfying workplace. All 8 factors may not have equal effects on business results. The Business Center www.bizcenter.com 23
  24. 24. Engagement Factors Let’s investigate 8 factors that engage the workforce. 1. Circumstances. 2. Company image and success 3. Physical work environment. 4. Reward and recognition practices. 5. Relationships with others. 6. The social-intellectual work environment. 7. Nature of the work. 8. Self. The Business Center www.bizcenter.com 24
  25. 25. Engagement Factors 1. Circumstances  The chance to be a leading organization.  The need to survive.  Even a lazy crew will save a sinking ship. 2. Company Image and Success.  Working for a winning organization that is respected in the industry and community fosters engagement.  “Staying on top” or “getting on top” brings out better effort.  Avis: “We try harder!” The Business Center www.bizcenter.com 25
  26. 26. Engagement Factors 3. Physical Work Environment.  Reflects the organization’s concern for its people.  A basic “quid pro quo.” 4. Reward and Recognition Practices  Size / Frequency / Source / Attainability / Predictability / Relationship to effort.  Annual “merit” increase vs. monthly sales bonus. The Business Center www.bizcenter.com 26
  27. 27. Engagement Factors 5. Relationships with Others.  Most people are social animals, but not all are.  A culture where coworkers expect engagement.  Camaraderie with coworkers – team spirit.  Supervisor relationships are crucial. The Business Center www.bizcenter.com 27
  28. 28. Engagement Factors 6. Social-intellectual Work Environment.  Vision / mission / goals / measures / feedback.  Focus on achievement and improvement in the culture.  Introduction and indoctrination.  Opportunity for growth + training and development.  Information sharing and seeking.  Personal contact with supervisor and top leaders.  Participation in shaping work and org. practices.  Surveys / focus groups / feedback / follow-thru.  Individual attention and fairness. The Business Center www.bizcenter.com 28
  29. 29. Engagement Factors 7. Nature of the Work.  Purpose, mastery, autonomy. Pink  Task itself:  Significance.  Completeness.  Challenge and variety.  Autonomy – personal freedom to act.  Feedback from work itself (vs. others). Engagement with work is the primary focus. The Business Center www.bizcenter.com 29
  30. 30. Engagement Factors 8. Self  Personal motivation to achieve regardless of task or surroundings.  McClelland’s “achievement motivation.”  DNA that only some people have.  Is there a disengagement gene? The Business Center www.bizcenter.com 30
  31. 31. Engagement FactorsOpportunities to minimize disengagement and maximize engagement. 1. Circumstances. 5. Relationships with 2. Company image and others. success. 6. The social-intellectual 3. Physical work work environment. environment. 7. Nature of the work. 4. Reward and recognition 8. Self. practices. Summary The Business Center www.bizcenter.com 31
  32. 32. Engagement R Us? What does your organization do to promote engagement? Share with the person in front / behind you. Take two minutes. The Business Center www.bizcenter.com 32
  33. 33. Systematic Approaches to Engagement Comp and benefit plans – gainsharing and profit sharing, bonuses, etc. ~ contingent plans. Attitude / satisfaction / engagement surveys. Employee involvement:  Participative management.  Quality circles.  Kaizen teams. The Business Center www.bizcenter.com 33
  34. 34. Systemic Approaches to Engagement Work design – job enrichment. Socio-technical systems design – people and the process as one total system. Self-directed work teams. Open-book management. Scanlon plans. The Business Center www.bizcenter.com 34
  35. 35. Common Practices Hiring the right people & orienting them. Focus on running the organization successfully.  Vision / goals / measures / feedback.  Continuous challenge to improve. Demonstrated concern for engagement.  Continuous cycle of surveys and follow-thru. Face-to-face information sharing and seeking from top leadership with rank and file. Personal growth opportunities – T&D. The Business Center www.bizcenter.com 35
  36. 36. Surveys Aon Hewitt  5,700 employers = 5,000,000 employees Hay Group  1,600 employers = 5,000,000 employees Gallup  17 yrs. = 17,000,000 employees  Q12 survey is the biggest.  12 questions  5 point scale: 1 = Strongly Disagree / Extremely Dissatisfied 5 = Strongly Agree / Extremely Satisfied The Business Center www.bizcenter.com 36
  37. 37. Poll Who does an “engagement” or employee survey at least every two years?  Could be one large survey.  Could be several mini surveys. Raise your hand. The Business Center www.bizcenter.com 37
  38. 38. Gallup’s Q12 Survey 12 questions. Chosen because responses to them positively correlate to improved personal behaviors and therefore business results. Answers to each question use a 5 point scale:  5 = Strongly Agree / Extremely Satisfied  1= Strongly Disagreed / Extremely Dissatisfied The Business Center www.bizcenter.com 38
  39. 39. Gallup’s Q12 Survey Questions Does the mission/purpose of my company make me feel my job is important? Do I know what is expected of me at work? Do I have the materials and equipment I need to do my work right? At work, do I have the opportunity to do what I do best everyday? The Gallup Q12 questions are copyrighted by Gallup Inc. for its use. The Business Center www.bizcenter.com 39
  40. 40. Gallup Q12 Questions Does my supervisor, or someone at work, seem to care about me as a person? In the last 7 days, have I received recognition or praise for doing good work? Is there someone at work who encourages my development? In the last 6 months, has someone at work talked to me about my progress? The Gallup Q12 questions are copyrighted by Gallup Inc. for its use. The Business Center www.bizcenter.com 40
  41. 41. Gallup Q12 Questions This last year, have I had opportunities at work to learn and grow? At work, do my opinions seem to count? Are my coworkers committed to doing quality work? Do I have a best friend at work? The Gallup Q12 questions are copyrighted by Gallup Inc. for its use. The Business Center www.bizcenter.com 41
  42. 42. Gallup Q12 and Engagement A "fully engaged" employee, by our definition, is one who can answer all the questions in the Gallup Q 12 with a strong affirmative. These question items were identified through extensive research that correlates employee attitudes to five outcome measures:  Employee retention  Productivity  Customer satisfaction/engagement  Safety  Profitability. While The Path only illustrates the link between engaged employees and customer engagement, there are often very direct links between an increase in the number of engaged employees and profit, either indirectly through an increase in productivity, or directly through major decreases in employee turnover.Source: Gallup Inc.http://www.gallup.com/consulting/1531/Gallup-Path-Business-Performance.aspx The Business Center www.bizcenter.com 42
  43. 43. Gallup Results % that results improved when overall engagement score increased by 3%. (0.15/5.0)5% Gallup Inc. Copyright 2010 All Rights Reserved. The Business Center www.bizcenter.com 43
  44. 44. Correlation Exists Comparing the top 25% of engaged workgroups to the bottom 25% shows dramatic differences in: *  Productivity.  Profitability.  Safety incidents.  Absenteeism. Gallup has proven that engaged organizations have 3.9 times the earnings per share (EPS) growth rate compared to organizations with lower engagement in the same industry.* Source: Gallup Inc.http://www.gallup.com/consulting/1531/Gallup-Path-Business-Performance.aspx The Business Center www.bizcenter.com 44
  45. 45. Statistics Gallup – 2005  Engaged employees = 28%  Not engaged = 54%  Actively disengaged = 17% Aon Hewitt – Nov. 2011  “…the workforce is by and large indifferent to organizational success or failure.” SHRM – Nov. 2011  “…employees are moderately engaged at work -- 3.6 / 5.0.” Hay Group – 2012  66% of workers feel engaged. The Business Center www.bizcenter.com 45
  46. 46. Agenda Definition of engagement. History. Correlation and causality. Statistics. Engagement spectrum. 6 Engagement factors. Approaches to engagement & common practices. Surveys. Summary The Business Center www.bizcenter.com 46
  47. 47. Summary The E4 Model  Envision: create inspiration and accountability by using a vision, missions, goals, measures, and reporting mechanisms that link individuals to the total organization.  Empower: provide the means for success through  Technical, social, business skills training.  Developmental experiences and coaching.  Equipment, systems, information, and feedback. The Business Center www.bizcenter.com 47
  48. 48. Summary E4 Model  Engage: encourage responsible contribution in areas of expertise through participative structures, behaviors, info sharing, consultation, and autonomy.  Equilibrate: balance efforts and rewards to equitably meet the needs of all stakeholders – customers, investors, employees, suppliers, community – and protect the environment. More details by emailing tbc@bizcenter.com. The Business Center www.bizcenter.com 48
  49. 49. Summary It starts with whom you hire. It is driven by leaders who use the 8 factors to create an engaging culture. Training and development is one cog on a large wheel of engaging elements. There is a correlation between engagement levels and business results, and... success requires managing for both. The Business Center www.bizcenter.com 49
  50. 50. ConclusionThank you very much for your engagement! Have an engaging time at work! Don Barkman The Business Center Oak Ridge, TN 865-483-5850 www.bizcenter.com The Business Center www.bizcenter.com 50
  51. 51. Copyright Notice This material is copyrighted by: Donald F. Barkman The Business Center 120 Westview Lane Oak Ridge, TN 37830 865-483-5850 Copyright © 2012 All Rights Reserved.No part of this material may be stored, transmitted, reproduced, or presented without the express permission of The Business Center. The Business Center www.bizcenter.com 51