The Current State Of Company Loyalty and Employee Engagement


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In the wake of the global economic downturn, more than a quarter of employees worldwide say that the recession has made them more loyal to their employer. Organizations with positive management, strong morale and active communications have succeeded in making their workforce more engaged in spite of the uncertainty caused by falling profits and layoffs. Using Kelly’s Global Workforce Index as a backdrop for the conversation, this webinar focuses on why company loyalty and employee engagement should be top priority for every organization.

At the conclusion of this presentation, you will understand:

* How the “War for Talent” is affecting employee loyalty and engagement
* Current company loyalty and employee engagement ratings by region (North America, Europe, Asia Pacific)
* The difference between engagement and satisfaction, and why it is so important to have truly engaged employees
* What you can do to foster engagement in your organization

Published in: Career, Business, Technology
1 Comment
  • Great information. Talent is walking out the door due to boredom, lack of advancement, & poor management. Leadership needs to look in the mirror and ask 'what am I doing to contribute to the loss of engagement?' This needs to be done before people get to the point where they say 'you can't pay me enough to stay here.'

    I can't help but wonder, if approximately 50% of the workforce is fully engaged, which 50% is it? Does the knowledge capital and talent that organizations want to retain fall in the 'engaged' or 'disengaged' category.

    Marian Madonia
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  • Kristin
  • Maureen Why? Sense out there that due to the economic downturn – HR and Management have not been as concerned about losing their employees – where are they going to go? This has caused a false sense of security. Rest assured that your employees (especially key employees/high potentials) will always have an open ear to new and/or better opportunities. There has been an economic slowdown but not a slow down for people looking for the next, best “gig.” Talent wars are now global You need to have strategies to get people to stay with the organization and not go off and sell their talent. Attracting and retaining good employees always has been a challenge for employers. In an era of global competition and razor thin margins, the “War for Talent” has become more critical than ever.
  • Maureen Over the past couple of years, many corporations have had to reduce their talent base. As a result, employees have: Seen their friends leave the organization Absorbed more work with less support Felt disconnected to the organization and how they fit in (and for how long they will stay) In many cases, management has become more self absorbed: Inwardly focused on retaining their own position Reluctant to make any commitments to their employees Have not been focused on communication and team commitment When only fear of unemployment keeps employees on the job, they are probably not giving their best. All of these factors lead to a disengaged workforce……… So what does this mean to your business?
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  • Maureen Do we have your attention yet? Gallup’s 2009 analysis of 199 surveys found that business units scoring in the top half on employee engagement double their odds of delivering high performance compared to those in the bottom half. Engagement fuels performance In addition, a subsequent study by Gallup in January 2010 found that companies in the top 10% on employee engagement outperformed their competition by 72% in earnings per share during 2007-2008. Therefore, there is an opportunity to re-engage disengaged workers and reap financial benefits. HR Magazine – May 2010
  • Maureen HR Solutions 50% of employees said “yes” when asked if they had thought of resigning in the last 6 months. Saratoga Institute Study of more than 19000 US workers in 17 industries, 72% of employees who quit – leave because they feel they are not being recognized for their contributions or sufficiently respected and coached by their leaders. Gallup Management Journal – Semi Annual Employee Engagement Index 29% of employees are actively engaged in their jobs 54% are not engaged 17% are actively disengaged Right Management Found similar results 34% of employees fully engaged 50% are completely disengaged YouGov (UK) More than 40,000 employees surveyed 51% of employees feel fully engaged by their company
  • Kristin Employee engagement fosters and drives discretionary effort, eliciting employees’ highest productivity, their best ideas and their genuine commitment to the success of the organization. Employee engagement fulfills a basic human need to be connected to worthwhile endeavors and make a significant contribution.
  • Kristin The Corporate Executive Board identifies 2 types of commitment – Rational and Emotional Give an overview of the slide We believe there are 3 components
  • Kristin Head - someone who is 100% psychologically committed to their role. Heart - thrill to the challenge of their work every day. Hand - in a role that uses their talents, they know the scope of their job, and they are always looking for new and different ways of achieving the outcomes of their role. Source: The Gallup Organization
  • Kristin Many of us have facilitated and/or participated in satisfaction surveys in the past. If we are driving for connection, we need to focus on the level of engagement. Let’s use “pay” as an example to show the difference: Satisfaction Survey Asks employee their level of satisfaction of their pay Many different types of questions Engagement Survey Asks about the transparency and fairness of the compensation system If you treat employee engagement as an annual survey that demonstrated that you are not as bad as your competitors, then you have missed the point. Engagement is a business imperative but only if it’s tied to the business
  • Kristin It’s impossible to get people in any organization to think big if they’re constantly asked to “just do their job.” Many employees feel they aren’t making a contribution. They are working hard but they don’t understand how their work drives the bigger picture. This can lead to disengagement. Example taken from the book “The Art of Engagement” by Jim Haudan 3 bricklayers work sided by side. Each one picks up a brick, spreads it with mortar and sets it in place. A little boy asks them,. “What are you doing?” 1 st bricklayer says “ I’m putting one brick on top of another. Isn’t that obvious?” 2 nd bricklayer says: “ I’m building a wall for the west side of a church.” 3 rd bricklayer says: “ I’m creating a cathedral. It will stand for centuries and inspire people to do great deeds.” 2 key variables – the “approach” and the “outcome” Consider these questions that deal with both approach and outcome: Which bricklayer was just looking forward to quitting time? Which one was focused only on his task or his part of the job? Which bricklayer was truly engaged in what he was doing and understood the link between his work and the impact it would have on other people?
  • Kristin Connection Understand the link between work they do and strategy of the organization Their leaders have an important role in articulating organizational goals and connection to daily work Manager identifies and articulates a long-term vision for the future Contribution An environment that sets achievable performance expectations, respects employees and encourages inclusion exists Manager encourages employee development Extent to which we deliver value to our customers Manager provides job freedom Credibility Confidence and trust in senior leadership Leaders demonstrate honesty and integrity Leaders inspire others Leaders trust employees to do their jobs
  • Maureen Engaged Employees Give 100% or more Works with passion and feels a profound connection to the company and it’s mission Has a strong sense of pride and would recommend their company to others Connects with the head, heart and hand
  • Maureen Kelly has conducted Satisfaction Surveys for years. In 2008, we started thinking more holistically and formally drew a correlation between our customers, candidates (temps) and employees. Candidate (temps) are engaged Service to customers increased Resulting in increased customer engagement and loyalty Employees are engaged Impacts candidate engagement Customer engagement can also increase Customers are engaged Retain business Increase business/referrals Increases employee and candidate engagement Better business results If our candidates and employees are engaged – it will show with our customers We have recently started to measure Supplier Engagement also.
  • Maureen Relationship with team Relationship and connection with Manager/Supervisor and company
  • Kristin Carl Camden, President & CEO – Kelly Services shared global result highlights via our intranet Sr. Leaders and HR partnering in result rollout and next steps Ownership is at multiple levels in the company. We have to be realistic about what can be done.
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  • Maureen Engagement is everyone’s responsibility but unfortunately it hasn’t been treated that way. Senior Leaders need to drive the message and hold company leaders accountability for results. Human Resources needs to ensure they are providing managers the tools to do their jobs and make sure their employees
  • Kristin Manager’s Performance, Communication and Understanding of how each employee’s job contributes to the business strategy – identified as areas for improvement. From our research, these are systemic issues that cross many companies and industries. Implemented personal and monthly communications with 6,000 managers about how to engage employees, such as how to talk to employees about personal and business challenges in the economic downturn.
  • The Current State Of Company Loyalty and Employee Engagement

    1. Company Loyalty & Employee Engagement Kristin Baker Director, HR Corporate Maureen Goodin Director, HR Outsourcing & Consulting Group May 26, 2010 Sponsored By: The Webinar Will Begin Shortly If you cannot hear music, or the presenter to today's webinar, please use our toll-free call in number. Number: 888-469-1348 Pass code: 2940000
    2. Agenda <ul><li>The “War for Talent” – Why are we still talking about it? </li></ul><ul><li>Why are we interested in engagement? </li></ul><ul><li>Engagement – What is it? </li></ul><ul><li>Importance of engaged employees </li></ul><ul><li>Kelly’s Global Workforce Statistics - It’s not just a US problem! </li></ul><ul><li>What can your company do? </li></ul>
    3. The “War for Talent” <ul><li>“ The war for talent is not over – </li></ul><ul><li>it’s just been in hibernation.” </li></ul><ul><ul><ul><ul><ul><li>Carl Camden, President & CEO - Kelly Services, Inc. </li></ul></ul></ul></ul></ul>
    4. The “War for Talent” <ul><li>Economic recovery should force companies to focus on retention of talent. </li></ul><ul><li>It is becoming more difficult to retain employees especially once they have been trained. </li></ul><ul><li>Are the employees that are still with your company staying for the right reason and “giving their all”? </li></ul>
    5. Why Engagement? <ul><li>Connection between employee engagement and business performance is a stronger indicator than any other measure of employee attitude and business performance </li></ul>Makes a difference between dollars and cents!
    6. Gallup Engagement Index HR Magazine – May 2010 How much is this costing US businesses annually?
    7. Up to………… $350 Billion Per year…………
    8. “ Survey says……..” From “The Why of Work” by David Ulrich
    9. Engagement What is it?
    10. Engagement – What is it? <ul><ul><li>Engagement is the extent to which employees commit to something or someone in their organization. </li></ul></ul><ul><ul><li>It is how hard they work and how long they stay as a result of that commitment. </li></ul></ul>Source: Corporate Leadership Council (CLC)
    11. Engagement – What is it? © 2005 Corporate Executive Board
    12. Engagement – What is it? You want employees to connect with their heads, hearts and hands
    13. Engagement vs. Satisfaction
    14. Why Engagement is Important? <ul><li>People want to be a part of “something” </li></ul><ul><li>People want to feel a sense of belonging </li></ul><ul><li>People want to go on a meaningful journey </li></ul><ul><li>People want to know that their contributions make a significant impact or difference </li></ul>Engaged people feel that whatever they’re doing is unquestionably connected to making a difference in the lives of other people.
    15. Global Drivers of Engagement
    16. The Engaged Employee <ul><li>Is both willing and motivated to perform to levels that exceed the job requirements. </li></ul><ul><li>Feels passionately about the Company’s goals. </li></ul><ul><li>Will highly recommend their employer to others. </li></ul><ul><li>Understands what he/she must do to add value to the company. </li></ul><ul><li>Always willing to put those thoughts and feelings into action. </li></ul>
    17. Kelly’s Engagement Journey…….. <ul><li>Focus on engagement formally began in 2008 – 2009 </li></ul><ul><li>Emphasis on : </li></ul><ul><ul><li>Customer Engagement </li></ul></ul><ul><ul><li>Candidate Engagement </li></ul></ul><ul><ul><li>Employee Engagement </li></ul></ul><ul><ul><li>Supplier Engagement </li></ul></ul>
    18. What Kelly Measured…… <ul><li>Engagement – 6 categories </li></ul><ul><ul><li>Discretionary Effort </li></ul></ul><ul><ul><li>Intent to Stay </li></ul></ul><ul><ul><li>Job/Day to Day Tasks </li></ul></ul><ul><ul><li>Organization </li></ul></ul><ul><ul><li>Team </li></ul></ul><ul><ul><li>Manager/Supervisor </li></ul></ul>
    19. What Kelly is Doing…… <ul><li>Global survey results rolled out </li></ul><ul><li>Each division/department tasked with: </li></ul><ul><ul><li>Addressing area(s) of concern </li></ul></ul><ul><ul><li>Leveraging strength(s) </li></ul></ul><ul><li>How are we doing this? </li></ul><ul><ul><li>Gathering additional data </li></ul></ul><ul><ul><ul><li>Focus groups </li></ul></ul></ul><ul><ul><ul><li>Zoomerang surveys (targeted questions) </li></ul></ul></ul><ul><ul><ul><li>Etc. </li></ul></ul></ul><ul><ul><li>Recommendations are being made to senior leaders </li></ul></ul><ul><ul><li>Many initiatives are currently underway </li></ul></ul>
    20. Kelly’s Global Workforce Index
    21. As a result of the recession, are you more or less loyal to your employer?
    22. As a result of the economic recession, are you more loyal to your employer? If yes , why? (Multiple responses allowed so percentages add to more than 100)
    23. As a result of the economic recession, are you less loyal to your employer? If yes , why? (Multiple responses allowed so percentages add to more than 100)
    24. How committed or ‘engaged’ do you feel with your current employer?
    25. Note that percentages may not add to 100 due to rounding What one thing would make you feel more committed or ‘engaged’ with your job?
    26. Note that percentages may not add to 100 due to rounding What one factor would be most likely to cause you to leave your organization?
    27. Who is Responsible for Engagement?
    28. What Can You Do? <ul><li>Know your people and what’s important to them. </li></ul><ul><li>Have ongoing conversations with your employees. </li></ul><ul><li>Provide recognition that is what they want. </li></ul><ul><li>Help them understand how their job fits within the organization and impacts the business. </li></ul><ul><li>Conduct your own engagement survey. </li></ul>Communicate, Communicate, Communicate
    29. Thank You & Questions Thank you: Kristin Baker Director, HR Corporate Maureen Goodin Director, HR Outsourcing & Consulting Group