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Being Exceptional
Why people matter and how they impact your financial performance
PART 1 of 3

Scott Fitzgerald | ADP
Human Capital Management Consultant
Email: scott.fitzgerald@adp.com
LinkedIn: www.linkedin.com/in/scottdfitzgerald/
Twitter: @outcompete
PART ONE

Employee
Engagement

Scott Fitzgerald | ADP | Human Capital Management Consultant | scott.fitzgerald@adp.com | www.linkedin.com/in/scottdfitzgerald/

2
“

“

Back when I was a teenager, I thought that with the right bunch
of people anything was possible, and that turned out to be the
case. It was the people I surrounded myself with who made the
difference: If you treat your employees right, they will treat your
customers right, and sustained profits will follow.
Richard Branson

Scott Fitzgerald | ADP | Human Capital Management Consultant | scott.fitzgerald@adp.com | www.linkedin.com/in/scottdfitzgerald/

3
FACT
Employee engagement directly affects
your organization’s financial performance

Scott Fitzgerald | ADP | Human Capital Management Consultant | scott.fitzgerald@adp.com | www.linkedin.com/in/scottdfitzgerald/

4
Consider this…

Scott Fitzgerald | ADP | Human Capital Management Consultant | scott.fitzgerald@adp.com | www.linkedin.com/in/scottdfitzgerald/

5
Measured against their competitive set,
companies with 9.3 engaged employees for every 1
actively disengaged employee in 2010-2011
experienced on average:

147% higher
earnings per share (EPS)

http://www.gallup.com/strategicconsulting/163007/state-american-workplace.aspx

6
:-)

Employees happy with their work = engaged 80% of the day

:-(

Employees unhappy with their work = engaged 40% of the day

7
In their peer group, companies with
highly engaged employees were more
profitable by

200%
8
That is data your organization can not ignore.

9
Scott Fitzgerald | ADP | Human Capital Management Consultant | scott.fitzgerald@adp.com | www.linkedin.com/in/scottdfitzgerald/

10
What if…
You bill by the hour?
Turnover affects your business?
You are a manufacturer of goods?
Product quality is important to you?
Workplace / worksite safety is imperative?
Your management team is disengaged?
Healthcare is your industry?
You care about your people?

Will you bill less hours?
Will you lose clients?
Will your output decrease?
Will the quality of your widgets go down?
Will there be more accidents and lawsuits?
You are in trouble.
Will your patient population suffer?
Do something.

Scott Fitzgerald | ADP | Human Capital Management Consultant | scott.fitzgerald@adp.com | www.linkedin.com/in/scottdfitzgerald/

11
What if you are the
CEO or CFO?
Psst… Do something.

Scott Fitzgerald | ADP | Human Capital Management Consultant | scott.fitzgerald@adp.com | www.linkedin.com/in/scottdfitzgerald/

12
Three steps
1 Analyze

Define your current strategy & execution
Organizational vision and staffing, roles and responsibilities, HR talent,
connection to business strategy, key performance and engagement
indicators.

2 Understand

What is the impact of employee engagement to your business?
Technology infrastructure, employee-related initiatives, HR staff’s role
in business performance and profitability. Where are they spending
their time?

3 Empower

Support the team, or find another model
Define what you can do to support engagement initiatives. If the team
in place is misaligned or focused on administration, you’re positioned
incorrectly and your profitability will suffer.

Scott Fitzgerald | ADP | Human Capital Management Consultant | scott.fitzgerald@adp.com | www.linkedin.com/in/scottdfitzgerald/

13
What do exceptional companies do?

14
STRATEGIC

TACTICAL

Culture
Compensation
Recruitment
Brand
Training
Strategy
Engagement
Talent
Retention

Forms
Excel sheets
Payroll
Timecards
Compliance
Administration
Q&A
Paperwork!
Paperwork!!
Paperwork!!!

REVENUE-POSITIVE

REVENUE-NEGATIVE
15
STRATEGIC

TACTICAL

Currently your team spends

and

10 – 20%

80 – 90%

of their time here

of their time here

REVENUE-POSITIVE

REVENUE-NEGATIVE
16
17
STRATEGIC

TACTICAL

80 – 90%

10 – 20%

REVENUE-POSITIVE

REVENUE-NEGATIVE
18
STRATEGIC

TACTICAL

Gets better people
Keeps better people
Keeps people happy
Makes them more productive
Makes you more money
Polishes your brand
Scales while you grow

Cannibalizes the strategic
Costs money and time
Does not scale well
Significant errors
Liability and risk
Fines and penalties
Lawsuits
Old business model

DO THIS

STOP THIS
19
Traditional Human Resources is being disrupted.

20
Four priorities
Turn HR into strategic superstars
Eliminate admin burdens

Leverage HCM technology
Make people a priority
21
SIGN UP

Profitability Analysis
This free informal assessment of your current human capital efforts is meant to identify
the key technology and process barriers preventing you from operational excellence and
increased profitability. This analysis is designed specifically for mid-sized business owners,
Senior Executives, CEOs, CFOs, or VPs of HR.
High demand limits availability to 12 companies.
To inquire about or sign up for the profitability analysis, please contact Scott Fitzgerald.
Scott Fitzgerald | ADP
Human Capital Management Consultant
Email: scott.fitzgerald@adp.com
LinkedIn: www.linkedin.com/in/scottdfitzgerald/
Twitter: @outcompete

22

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Why People Impact Financial Performance

  • 1. Being Exceptional Why people matter and how they impact your financial performance PART 1 of 3 Scott Fitzgerald | ADP Human Capital Management Consultant Email: scott.fitzgerald@adp.com LinkedIn: www.linkedin.com/in/scottdfitzgerald/ Twitter: @outcompete
  • 2. PART ONE Employee Engagement Scott Fitzgerald | ADP | Human Capital Management Consultant | scott.fitzgerald@adp.com | www.linkedin.com/in/scottdfitzgerald/ 2
  • 3. “ “ Back when I was a teenager, I thought that with the right bunch of people anything was possible, and that turned out to be the case. It was the people I surrounded myself with who made the difference: If you treat your employees right, they will treat your customers right, and sustained profits will follow. Richard Branson Scott Fitzgerald | ADP | Human Capital Management Consultant | scott.fitzgerald@adp.com | www.linkedin.com/in/scottdfitzgerald/ 3
  • 4. FACT Employee engagement directly affects your organization’s financial performance Scott Fitzgerald | ADP | Human Capital Management Consultant | scott.fitzgerald@adp.com | www.linkedin.com/in/scottdfitzgerald/ 4
  • 5. Consider this… Scott Fitzgerald | ADP | Human Capital Management Consultant | scott.fitzgerald@adp.com | www.linkedin.com/in/scottdfitzgerald/ 5
  • 6. Measured against their competitive set, companies with 9.3 engaged employees for every 1 actively disengaged employee in 2010-2011 experienced on average: 147% higher earnings per share (EPS) http://www.gallup.com/strategicconsulting/163007/state-american-workplace.aspx 6
  • 7. :-) Employees happy with their work = engaged 80% of the day :-( Employees unhappy with their work = engaged 40% of the day 7
  • 8. In their peer group, companies with highly engaged employees were more profitable by 200% 8
  • 9. That is data your organization can not ignore. 9
  • 10. Scott Fitzgerald | ADP | Human Capital Management Consultant | scott.fitzgerald@adp.com | www.linkedin.com/in/scottdfitzgerald/ 10
  • 11. What if… You bill by the hour? Turnover affects your business? You are a manufacturer of goods? Product quality is important to you? Workplace / worksite safety is imperative? Your management team is disengaged? Healthcare is your industry? You care about your people? Will you bill less hours? Will you lose clients? Will your output decrease? Will the quality of your widgets go down? Will there be more accidents and lawsuits? You are in trouble. Will your patient population suffer? Do something. Scott Fitzgerald | ADP | Human Capital Management Consultant | scott.fitzgerald@adp.com | www.linkedin.com/in/scottdfitzgerald/ 11
  • 12. What if you are the CEO or CFO? Psst… Do something. Scott Fitzgerald | ADP | Human Capital Management Consultant | scott.fitzgerald@adp.com | www.linkedin.com/in/scottdfitzgerald/ 12
  • 13. Three steps 1 Analyze Define your current strategy & execution Organizational vision and staffing, roles and responsibilities, HR talent, connection to business strategy, key performance and engagement indicators. 2 Understand What is the impact of employee engagement to your business? Technology infrastructure, employee-related initiatives, HR staff’s role in business performance and profitability. Where are they spending their time? 3 Empower Support the team, or find another model Define what you can do to support engagement initiatives. If the team in place is misaligned or focused on administration, you’re positioned incorrectly and your profitability will suffer. Scott Fitzgerald | ADP | Human Capital Management Consultant | scott.fitzgerald@adp.com | www.linkedin.com/in/scottdfitzgerald/ 13
  • 14. What do exceptional companies do? 14
  • 16. STRATEGIC TACTICAL Currently your team spends and 10 – 20% 80 – 90% of their time here of their time here REVENUE-POSITIVE REVENUE-NEGATIVE 16
  • 17. 17
  • 18. STRATEGIC TACTICAL 80 – 90% 10 – 20% REVENUE-POSITIVE REVENUE-NEGATIVE 18
  • 19. STRATEGIC TACTICAL Gets better people Keeps better people Keeps people happy Makes them more productive Makes you more money Polishes your brand Scales while you grow Cannibalizes the strategic Costs money and time Does not scale well Significant errors Liability and risk Fines and penalties Lawsuits Old business model DO THIS STOP THIS 19
  • 20. Traditional Human Resources is being disrupted. 20
  • 21. Four priorities Turn HR into strategic superstars Eliminate admin burdens Leverage HCM technology Make people a priority 21
  • 22. SIGN UP Profitability Analysis This free informal assessment of your current human capital efforts is meant to identify the key technology and process barriers preventing you from operational excellence and increased profitability. This analysis is designed specifically for mid-sized business owners, Senior Executives, CEOs, CFOs, or VPs of HR. High demand limits availability to 12 companies. To inquire about or sign up for the profitability analysis, please contact Scott Fitzgerald. Scott Fitzgerald | ADP Human Capital Management Consultant Email: scott.fitzgerald@adp.com LinkedIn: www.linkedin.com/in/scottdfitzgerald/ Twitter: @outcompete 22