• Understanding the correlation between engagement levels and business performance • How to establish employee engagement as a critical driver of business success • Ensuring alignment throughout different phases and layers within the business • Moving engagement from an add-on activity to core business driver Rebecca Jeffs, Head of Talent and Reward, Serco

1. Serco InternalSerco Internal
Rebecca Jeffs
Head of Talent and Reward
Serco

2. Serco Internal
Evaluating Employee Engagement and Alignment
with Organisational Goals
• Understanding the correlation between engagement levels and business
performance
• How to establish employee engagement as a critical driver of business success
• Ensuring alignment throughout different phases and layers within the business
• Moving Engagement from an add-on activity to core business driver
The Business case: Serco

3. Serco Internal
Who is Serco?
Our Worldwide Services
Aviation
Passenger Transportation
Defense
Nuclear Power Generation
Healthcare
Education
Science
Home Affairs
Insurance
Our Customers
Over 700 Contracts in more
than 30 countries around the
world
Our People
Over 120,000 employees
Our Middle East Regional Services
Aviation
Facilities Management
Technology Solutions
Passenger Transportation
Defense
Healthcare
Education
Our People in the Middle East
Over 3000 employees in ME
54 Nationalities in ME
Zayed University
Sowwah SquareDubai Metro
Dubai Airport

4. Serco Internal
The Barriers
4
Engagement Barriers
• Engagement was just a survey
• No senior leader buy-in
• No accountability – it’s HR!
• No internal evidence
• No resources
• No sharing best practice – suspicion
The Journey so far…
2010

5. Serco Internal
The Barriers
5
Things had to change!
INCREASED
OUTPUTS
Customer satisfaction
Productivity
Profitability
Grievances
Attrition
Accident Rates
Absenteeism
High
Employee
Engagement
Low
Employee
Engagement
But
WHY??

6. Serco Internal
The BarriersCustomer Satisfaction
Serco has found that where engagement is high, more customers promote Serco
At Serco, trend analysis suggests high
employee engagement predicts future
customer satisfaction. The reverse
relationship of customer satisfaction
predicting future employee engagement is
not as strong.

7. Serco Internal
The BarriersOperating Profit
High engagement contracts
produced DOUBLE the
operating profits of
risk/destructive engagement
contracts.
14%
11%
7%
0%
2%
4%
6%
8%
10%
12%
14%
16%
High employee
engagement (65%+)
Opportunity employee
engagement (45-64%)
Risk / Destructive
employee engagement
(<45%)
Operating Profit (EBIT) as a % of revenues

8. Serco Internal
The BarriersAttrition
Contracts in the High Performance
engagement range had 20% lower
employee turnover, on average (compared
to Destructive range).
In practical terms this meant they had 260
fewer people to replace over the year,
saving them circa £2.6M in replacement
costs.
Significant links between employee engagement and attrition.
Evidenced across 47 matched contracts suitable
for analysis, covering 3 Divisions.

9. Serco Internal
The BarriersAccident Rates
People taking more ownership for their work, better communication
and compliance, and ultimately better safety records.

10. Serco Internal
The BarriersHow – critical and core business driver?
• Business Linkage analysis
• Clear definition of what Engagement is to Serco
• Create an Engagement Strategy, included in the Business Strategy
• Include Engagement within the Balanced Scorecard, Performance Management and
regular reporting (inc. Risk register, audit evaluations)
• Develop case studies
• Redesign and reposition the survey
• Set up a Global Engagement network
• Create resources to support managers
• Creation of Engagement Managers Handbook
• Develop an Engagement Master Class
• Utilise internal social media platform
• Build strong links with key stakeholders – internal and external

11. Serco Internal
The BarriersHAS to start from the top!
Great leadership and employee engagement are inextricably bound.
Effective leaders are the guardians of the culture and exemplars in living the organisations’
values. Therefore the output of great leadership is engaged employees.
‘ One thing I have learnt in
the thirty years in business,
it is that the quality,
motivation and
commitment of people
that makes or breaks
companies.’
‘If you want your colleagues to be energetic,
enthusiastic, committed, turn up on time … set the
example yourself. Do as you would be done by; behave
as you would like your colleagues to behave. Above all,
engage yourself with everyone; a “good morning”,
“please”, “thank you”, knowing peoples’ names, just
sitting down for a natter, and showing interest in
peoples’ lives. All these things matter.’

12. Serco Internal
The BarriersClearly defined roles and responsibilities
Senior Leader /
Contract
Director
Managers
HR
• Set the tone for Engagement
• Make Engagement a strategic priority
• Make engagement a key objective for your managers
• Communicate the results
• Own the results and the engagement improvement plan
• Understand the complexities of engagement and the behaviours that underpin it
• Remove barriers to acting on results
• Set mid-to long term plans, identify the link with business goals
• Coach and support people managers to lead engagement in their areas
• Pro-actively tackle behaviour that are negatively impacting on engagement
• Own the results and the engagement improvement plan
• Understand the behaviours which underpin engagement and how they can influence engagement
• Take action on the feedback
• Deliver on the commitments made in the engagement action plan
• Keep team members informed on progress of the action plan
• Be a recognised authority on employee engagement
• Educate senior leaders, coach to action
• Be a catalyst for change
• Encourage an awareness of engagement issues across business and best practice ideas via the Serco
case studies and resources on the Viewpoint Tool
• Collaborate with others to act on results of survey

13. Serco Internal
The BarriersWhat impact has this had in Serco?
7% Increase in
Employee
Engagement
Globally
2013-2014
7% Increase in
Employee
Engagement
Globally
2013-2014
9% Increase in
Employee
Engagement in
Middle East
2013-2014
9% Increase in
Employee
Engagement in
Middle East
2013-2014
30% Increase in
Leadership
Engagement in
Middle East
Apr-Sep 2014
30% Increase in
Leadership
Engagement in
Middle East
Apr-Sep 2014

14. Serco InternalSerco Internal