Data from Employee Engagement Surveys in 2009 and 2010 Data from Customer Retention Surveys in 2009 and 2010 Business KPIs (Revenue, Profit Margin, Employee Churn, Training Expenditures)
And this is another piece of information from our linkage survey where we looked at how customer retention and profit margin are actually connected – and also here we could find a fairly strong connection. A high customer retention also paid off – in higher profit margins in those countries.
With our new approach we stronger focus on organizational development, going beyond only engagement We are able to deliver a validated model for measuring the performance of organisations , delivering four meaningful KPI’S for Engagement Plus, Leadership, Goals & Strategy as well as Organizational Capability. MORE ACCOUNTABILITY TO IMMEDIATE MANAGERS AND TEAMS IN THE FOLLOW UP, AS QUESTIONS VERY STRONGLY FOCUS ON THE TEAM. – this will impact much higher sustainability in follow up processes. The model ensures time series for legacy clients and the usage of all well known TRI*M modules like TRI*M GRID, if clients want to include also importance into the questionnaire. Clients’ who have a strong focus on Employee Commitment or Engagement can expand their engagement questionnaire and use the Core Model KPI’S, getting a benefit from the employee survey also for organizational development
Employee survey as a measure for improving companies business success and growth
TRI * M – a Management Tool <ul><li>M easuring: relationships, communication, interfaces & processes </li></ul><ul><li>M anaging : by using results achieved </li></ul><ul><li>M onitoring: impact of implemented measures </li></ul>Improvement of employee commitment is a continuous process Survey Analysis / Reporting Process analysis Action planning Implementation / Change Management Measuring Managing Monitoring
TRI * M Employee Commitment Management of human resources with regard to employee situation Drivers Residents Detached Critics TRI*M Typology Impact on Employee commitment Stated Importance High Low Low High MOTIVATORS HIDDEN OPPORTUNITIES POTENTIALS?/ SAVERS? HYGIENICS Strengths-Weaknesses-Analysis in order to derive and prioritise measures One number score for internal and external benchmarking and monitoring (time series analysis) TRI*M Analysis Tools TRI*M Index TRI*M Grid high employee commitment low employee commitment 80 60 40 20 Total Unit A Unit B Communication axis Action axis 65 47 60
TRI * M –Employee Commitment 4.6 mil+ interviews in 90+ countries Market leader in Stakeholder Management Largest Benchmarking Database 2,100+ TRI*M studies with 470+ companies Expertise across all industries & geographies Network of 400+ experts across TNS 59 of the Fortune Top 100 already use TRI*M Delivering value add through actionable results Global Centre of Excellence Annual Global TRI*M Conference since 20 years
“ YOU CAN DREAM, CREATE, DESIGN AND BUILD THE MOST WONDERFUL PLACE IN THE WORLD, BUT IT REQUIRES PEOPLE TO MAKE THE DREAM A REALITY.” Walt Disney
Current Challenges companies have to face <ul><ul><li>War for talents </li></ul></ul><ul><ul><li>Attracting Talents </li></ul></ul><ul><ul><li>Commitment – Retention </li></ul></ul><ul><ul><li>Training </li></ul></ul><ul><ul><li>Customer Orientation </li></ul></ul><ul><ul><li>Behavioural Branding </li></ul></ul><ul><ul><li>Employee Engagement </li></ul></ul>
Strategic Important HR Topics Today Objectives have changed
Strategic Important HR Topics Today But not only objectives have changed also the role of HR has changed How can HR contribute to the overall strategy of a company? How can HR contribute to Business Success?
Therefore employee research has to be thought of in a wider context Employee research has to relate to the overall business success Growth Profitability Customer satisfaction Customer loyalty Sustainability Competitiveness Brand Value ……
Business Success needs HIGH PERFORMANCE ORGANISATIONS which: Create Customer Value Deliver to Brand Promise Create Value to Employees
Development Of High Performance Organisations Relevance of Employee Research Employees know all strengths and challenges of their company. Employees behaviour and engagement is strongly influenced by organisational performance. Employees are one of the main actors in your organisation. Therefore analysing the experiences of employees will provide valuable insights for developing a high performance organisation. Why listening to Employees
How evaluate if your Company is a HIGH PERFORMANCE ORGANIZATION A Case from Service Industry - UK
High Performance Organisation TNS model for measuring the core success factors: Engagement, Leadership, Goals & Strategy, Organizational capabilities
Business Case: an Example The Situation : In the UK case we show here company has been acquired from another company two years before the people survey ran, and reorganizations with layoffs in some parts of the company caused a lot of fear, anger and ambivalence. TNS Approach : The company is tracking since three years customer satisfaction as well as employee commitment with TNS approach to see if employees and the organisation follows the customer centric strategy of company. The Survey should provide insights which measures the organisation, especially in management and managing people on team level should be implemented to grow the business.
Case: A Service Provider, Country A TRI*M High Performance Index -10 54 64 COUNTRY A COMPANY OVERALL Company and also Country A does not belong to the high performing companies. Compared to external Benchmark the Index is 13 point lower . And even compared to the overall companies TRI*M HPO score is a bit worse.
High Performance Organisation Core Success Factors ORGANISATIONAL CAPABILITY ENGAGEMENT PLUS LEADERSHIP GOALS & STRATEGY PERFORMANCE OF ORGANISATION
TRI*M HPO: The Key Performance Indicators Country A +6 -23 -22 -9 -13 ORGANISATIONAL CAPABILITY ENGAGEMENT PLUS LEADERSHIP GOALS & STRATEGY 51 64 53 62 43 65 49 72 61 55 Major issue in this company is employees alignment to goals & strategies and lack of perceived leadership
Engagement Plus Case: Country A EMPLOYEE COMMITMENT TEAM ENGAGEMENT CUSTOMER ORIENTATION -9 53 62 From all dimensions which build Engagement Plus , it is first of all the lack in employees commitment in which makes it hard for the company to engage their staff for developing a high performance organisation. Compared to the external Benchmark they are worse as well as to whole company (internal benchmark)
Engagement Plus : Employee Commitment Case: Country A -14% 3,2 3,7 +3% 3,5 3,4 -14% 3,2 3,7 -29% 2,9 4,1
TEAM ENGAGEMENT CUSTOMER ORIENTATION Engagement Plus <ul><li>Teams’ willingness to listen to clients’ needs </li></ul><ul><li>Teams’ efforts to fulfill clients’ expectations </li></ul><ul><li>Engagement level </li></ul><ul><li>Willingness to go the extra mile </li></ul>EMPLOYEE COMMITMENT <ul><li>Satisfaction </li></ul><ul><li>Recommendation </li></ul><ul><li>Pride </li></ul><ul><li>Belief </li></ul>How to create a ‘High Performance Organisation’ What counts are employees being committed to their work, belonging to a group with a strong drive forward - ready to walk the extra mile, with a strong ability to make things happen in line with customer demands. Commitment describing ”the bond or linking of the individual to an organisation”, indicated by employees’ satisfaction, retention and identification with the company.
ENGAGEMENT Plus What counts are employees being committed to their work, belonging to a group with a strong drive forward - ready to walk the extra mile, with a strong ability to make things happen in line with customer demands. Commitment describing ”the bond or linking of the individual to an organization” , indicated by employees’ satisfaction, retention and identification with the company.
Employees’ Engagement levels influence the Retention of external customers <ul><li>Key Results </li></ul><ul><li>Employee Engagement has an influence on Customer Retention </li></ul><ul><li>There is a time-lag of one year for Employee Engagement to impact Customer Retention </li></ul>Correlation Coefficients between TRI*M Indices (Employee & Customer) * Significant Impact Employee Commitment Client Facing Functions only 2009 Employee Commitment 2010 Customer Retention 2010 0.34* Source: Linkage Analysis 2009/2010 combining Employee Commitment, Customer Retention, Financial and HR KPIs –UK case Customer Retention 2009
Commitment of Senior Management has a large impact on Customer Retention Correlation Coefficients between TRI*M Indices (Employee & Customer); * Significant Impact 0.44* Employee Commitment of Senior Management Customers 2010 Employees 2009 Customer Retention <ul><li>Key Result </li></ul><ul><li>Commitment of Leadership has a large impact on Customer Retention </li></ul>Source: Linkage Analysis 2009/2010 combining Employee Commitment, Customer Retention, Financial and HR KPIs – UK case
Engaged Employees ensure that companies can deliver to the consulting and service promise Having great people working on your business Business relevance of recommendations Easy to do business with Demonstrating integrated thinking that adds value to your business Superior products & services Responsiveness Delivering creative solutions to meet your needs Engaging, compelling deliverables Clarity of recommendations Delivering what is promised … How Customers rate the performance of a company regarding … Strength of Impact Source: Linkage Analysis 2009/2010 combining Employee Commitment, Customer Retention, Financial and HR KPIs Engagement of Employees has a positive impact on …
Employees’ Engagement levels influence the Retention of external customers <ul><li>Key Results </li></ul><ul><li>Employee Engagement has an influence on Customer Retention </li></ul><ul><li>There is a time-lag of one year for Employee Engagement to impact Customer Retention </li></ul><ul><li>Even higher sig. correlations for client facing functions and senior management </li></ul>Correlation Coefficients between TRI*M Indices (Employee & Customer) * Significant Impact High correlation High correlation * High correlation
Linking to Business Success Source: Linkage Analysis 2009/2010 combining Employee Commitment, Customer Retention, Financial and HR KPIs Displayed: TRI*M Index Customer 2010 and Operating Profit Margin 2010 (percent) for Top-20 Countries (in terms of revenue 2010) high low high Profit Margin 2010 low Customer Retention 2010 Correlation: r = 0.43
Leadership COMPANY MANAGEMENT IMMEDIATE MANAGER -22 43 65 -8 60 68 -35 26 61 Driving the performance needs to improve employees confidence in company management
SENIOR MANAGEMENT IMMEDIATE MANAGER Leadership <ul><li>Confidence </li></ul><ul><li>Atmosphere </li></ul><ul><li>Efficiency </li></ul><ul><li>Confidence </li></ul>How to create a ‘High Performance Organisation’ The engagement of employees and a well functioning organisation are dependent on quality of management. Confidence in senior management as well as to immediate managers, the capability of immediate managers in managing people by creating an atmosphere of openness and trust, as well as their drive to create efficiency are fundamental basics of leadership quality.
Goals & Strategy Case: Country A ALIGNMENT FAMILIARITY CONTRIBUTION -23 49 72 -21 47 68 -21 50 71 -27 50 77 Although the Index scores are not very different and have to be improved in every dimension, the comparison to external Benchmark shows that a major problem is employees do not see their own contribution to overall goals
<ul><li>Work towards goals </li></ul><ul><li>Follow up goals </li></ul>Alignment GOALS & STRATEGY Familiarity Contribution of own wor <ul><li>Contribution </li></ul><ul><li>Familiarity with overall goals </li></ul>The goals and strategies of the company have to be communicated and adopted in order to ensure that the whole organisation is aligned and moving in the same direction . At unit/department level, the organisation has to work towards clear goals , and finally, all goals have to be consistently followed up. And of course everybody needs to know how he or she can contribute to the overall goals. How to create a ‘High Performance Organisation’
<ul><li>Analysis from the TNS Benchmarking Database* shows </li></ul>Successful companies ensure that strategy and goals are communicated well <ul><li>TOP 10% of companies are rated significantly better in </li></ul><ul><li>"Management provides clear direction" </li></ul><ul><li>"Honest information and open communication on corporate issues" </li></ul>
Organisational Capabilities Case: Country A Cooperation Decision Making Renewal Climate Authority 73 -8 +6 61 55
ORGANISATIONAL CAPABILITIES <ul><li>In the team; across teams </li></ul><ul><li>Speed, Implementation and Efficiency </li></ul><ul><li>Feeling to make own decision </li></ul>How to create a ‘High Performance Organisation’ Decision Making Authority Cooperation Renewal Climate <ul><li>Try new methods, </li></ul><ul><li>Receive support </li></ul>The way a company organises work is a basic driver for business performance. Cooperation within a team and between teams is critical for a good business process and employee satisfaction. A climate of learning and creativity within the organisation is also a key factor for development.
Insights and next steps: <ul><li>A learning from this analysis was that the company identified the major issues they had to improve to strenghten their organisational performance: </li></ul><ul><ul><li>Confidence in senior management – not surprising after a reorganisation, however a challenging task </li></ul></ul><ul><ul><li>Employees commitment - satisfaction, retention and identification with the company. </li></ul></ul><ul><ul><li>Aligning the employees to clear company and team goals , understanding their own contribution to those. </li></ul></ul><ul><li>Workshops to discuss expectations and experiences of employees were the steps for this results and to define in details the HR action planning. </li></ul>
For company management, these were the most challenging negative driver of employees commitment: Employees currently did not feel valued and important enough An intensive discussion started, what have been the experiences of employees what have been unfulfilled expectations , so that this aspect of working environment was rated so badly and had such a strong impact on commitment . So TNS did an additional statistical analysis what impacts the feeling of employees being valued and important Career development and personal development Of course not all expectations of employees in this area can be fulfilled . But one aspect related to this topic is a lack in transparency and the feeling having nobody who takes care about employees interests here.
Actions implemented by this company A a learning from this analysis, the company started a series of mandatory team workshops , where employees had to discuss what have been the reasons for not feeling valued, write down examples and send them to HR so that senior management could think about improvements and actions. First of all senior management changed completely the tonality in communication style . Changing the culture of leadership styles of immediate managers is still work in progress. A lot of actions have been implemented in the area talent management . A new training program was launched, explaining what skills and competencies are expected to climb up the career ladder. Also a new guideline for appraisal interviews was implemented as well as a pulse survey to monitor if appraisal interviews have been implemented.
SUMMARY TRI * M HIGH PERFORMANCE ORGANISATIONS: Validated model with Benchmarks available. Four KPI’S for organizational development, going beyond engagement. Customized questionnaires for a detailed driver analysis or to ensure time series of clients. Action orientated, with a strong focus on changes in the team. Advanced statistical analysis. Linkage analysis to other KPI’s of companies.
Thank You Stefano Carlin Director of Business – TNS Italia @: email@example.com