Smith - Engagement done right


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Engagement Done Right: Lessons from Global Organizations

Michelle M. Smith, CPIM, CRP
O.C. Tanner

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Smith - Engagement done right

  1. 1. Engagement Done Right:Lessons from Global Organizations Michelle M. Smith, CPIM, CRP O.C. Tanner
  2. 2. Michelle M. Smith, CPIM, CRP Named as one of the Ten Best and Brightest Women in the Incentive Industry, Michelle is a highly rated international speaker, writer, and consultant. She is a respected authority on human capital management, internal branding, and engagement who has published and presented more than 475 articles and lectures.
  3. 3. Global Research Case TheStudies Issues Engagement How- Key To’s Drivers
  4. 4. Engagement » Quality » Productivity  16% more profitable  18% higher earnings  18% more productive  2.6 times higher growth  37% less absenteeism  60% less quality defects
  5. 5. Engagement » Quality » Productivity  51% less employee theft  12% better with customers  41% fewer patient incidents  62% less likely to be involved in an accident  51% less likely to leave (low turnover organizations)  31% less likely to leave (high turnover organizations)
  6. 6. Engaged Customers 23% – 70% – 240%Internal Brand Alignment 3x – 6x
  7. 7. Significant Employee Unrest
  8. 8. Employee Discontent Top performers most unhappy; intend to change jobs 60% 21% 81%
  9. 9. Effectiveness of HR Initiatives Total Rewards & Accountability and Value Creation 16.5% Collegial, Flexible Workplace and Value Creation 9.0% Recruiting & Retention Excellence and Value Creation 7.9% Communications Integrity and Value Creation 7.1% Focused HR Service Technologies and Value Creation 6.5% - 33.9% Prudent Use of Resources Superior Human Capital practices are a leading indicator of financial performance
  10. 10. Recognition Ignites Engagement
  11. 11. Engagement’s Impact on Growth with engagement without engagement A 15% improvement in engagement equates to a 2% improvement in operating margin
  12. 12. The Challenge with New Hires 4% 65%
  13. 13. Impact of On-boarding Programs 100100 90 80 +60% Revenue per FTE 70 60 60 57 50 40 30 +63% Customer Satisfaction 19 23 20 10 7 4 0 2 Best-in-class 0 Improved Time to Completion Average Retention Productivity Rates: Tasks Laggard
  14. 14. Most Successful On-Boarding Activities
  15. 15. Wellness Programs Health care costs per employee have risen over 40% in the last 5 years If food prices rose at the same levels…  Dozen eggs = $80  1 lb. Butter = $102
  16. 16. Wellness Programs  50-87% of health care costs are believed to be lifestyle-related  Each $1 invested saved $3.48 - $5.82 in health care costs  Reduced absenteeism 28%; worker’s comp 30%; and health care costs 26%
  17. 17. Safety Programs  Workplace injury costs ($164.7 B) exceeded the combined profits of the ‘Fortune 11’ in 2009  2010 costs = $225.8 B or $1,685/employee  37% increase in 1 year  OSHA targeting Texas; construction and chemical industries
  18. 18. Perception Gap?Percent of management and employee groups who say their company is above average at appreciating good work:Senior managementMiddle managementStaff
  19. 19. Actionable Ideas & How-To’s
  20. 20. Managers Play a Key Role  Only 1 in 5 employees know their job expectations  25% are extremely unclear  1 of 3 employees feel miscast  10% get progress feedback  Half get no feedback at all  Half do not feel cared for  Complimented = 1% disengagement  Criticized = 22% disengagement  Ignored = 40% disengagement
  21. 21. Training Managers ImprovesQuality & Productivity
  22. 22. Opportunity& Well-Being Trust Engagement Pride inOrganization
  23. 23. Consistent Impact Globally
  24. 24. Opportunity Appreciation & Well-BeingCommunication Trust Engagement Pride in Alignment Organization
  25. 25. OpportunityandWell-Being weak strong weak strong engagement
  26. 26. Opportunity addingand appreciationWell-Being weak strong weak strong engagement
  27. 27. Trust weak strong weak strong engagement
  28. 28. Trust adding appreciation weak strong weak strong engagement
  29. 29. CompanyPride weak strong weak weak strong strong engagement
  30. 30. Company addingPride appreciation weak strong weak strong engagement
  31. 31. Proven, Quick, Easy, Low Cost & Free Ways to Engage Staff  My opinions seem to count.  I have a best friend at work.  In the last 7 days, I have received recognition or praise for doing good work.  I know what is expected of me.  My supervisor seems to care about me as a person.  There is someone at work who encourages my development.  My company’s purpose makes me feel my job is important  This last year, someone has talked to me about my progress.  This last year, I have had opportunities to learn and grow.
  32. 32. The Recognition Spectrum™Alignment & Reinforcement Impact & Reach“Recognizing what matters most” “Recognizing people the right way” Incentives Less frequent,More frequent, less more formal,formal, general criteria specific criteria Thank you notes, Above and beyond, Safety, ideas, Sales, wellness, Milestone awards, e-cards, verbal, living the values performance attendance President’s award, on-the-spot management onboarding, events Initiated by a person taking some action Initiated by passage of specific timelineto recognize (fosters relationship building) or achievement of a specific metric (reinforces performance oriented culture) Enabling Strategies Technology Training Communication Measurement Assessment / Solution Design / Management
  33. 33. Further questions can be addressed to: Michelle.Smith@OCTanner.comThank You!
  34. 34. Michelle M. Smith, CPIM, CRP Named as one of the Ten Best and Brightest Women in the Incentive Industry and a President’s Award winner, Michelle has worked in every facet of recognition and incentives, both domestically and internationally. A highly rated international speaker, writer, and consultant on performance improvement; Michelle is a respected authority on human capital management, internal branding, and engagement. She’s published and presented more than 475 articles and lectures and has advised many of the world’s most successful organizations and the governments of the United Kingdom and the United States on how to optimize their performance improvement initiatives to gain maximum return on investment.Michelle is the Past President of the Board of Trustees of the Forum for PeoplePerformance at Northwestern University and active in the Global Incentive Council, theBusiness Marketing Association, the Society of Incentive & Travel Executives, and serveson the Board of Directors for Recognition Professionals International. Michelle is alsoPresident Emeritus of the Incentive Marketing Association, on the Board of Directors of theIncentive Federation, the Conference Advisory Board for the Motivation Show, and theBoard of Directors of the Recognition Council. She is also a member of the Editorial Boardfor Return on Performance Magazine, the Performance Improvement Council,WorldAtWork, the Corporate Executive Board and McKinsey Quarterly’s Executive Panel.