1) Highly engaged organizations outperform others financially and see increased operating income and earnings per share. 2) Companies with engaged employees see greater loyalty, reduced turnover, and more innovative work. 3) Employee engagement involves commitment to the organization, pride in one's work, and willingness to help the organization succeed.

1. Employee Engagement What’s the business case? OR “ Why should I care?” Presented by Karen Loftus, MBA/SPHR Engage To Retain

2. Hewitt Associates statistics HIGH Engagement organizations (65%+) outperformed the total stock market index. During 2009, total shareholder return for these companies was 19% higher than the average. Conversely, organizations with LOW levels (<40%) had a total shareholder return that was 44% lower than the average.

3. Towers Watson statistics HIGH engagement companies posted a 19% increase in Operating Income & a 28% increase in EPS. LOW engagement companies’ Operating Income declined by nearly one-third and EPS dropped 11%. Conclusion : a 15% improvement in engagement will cause a 2% improvement in firm’s operating margin.

4. World’s Most Admired Companies (WMACs ) Nearly 70% say they are emerging from recession with their employees feeling more loyal than before (vs 50%). 94% report reduced staff turnover (vs 67%). 92% say they work innovatively , using new technologies or creative approaches to improve internal effectiveness (vs 73%).

5. EE Engagement defined A high level of employee involvement, commitment to the organization, and job satisfaction.

6. Engaged employees… Value, enjoy & have pride in their work; Are more willing to help each other and the organization succeed; Take additional responsibility; Invest more effort in their jobs; Share information with other employees; & Remain with the organization longer than employees who are less engaged.

7. Source: The Gallup Organization

8. Bridge over troubled water? &quot; Everything we've seen suggests that trust, compassion, stability, and hope are what people need from leaders in times of trouble .&quot; Jim Harter, Ph.D. Gallup's chief scientist of workplace management and wellbeing Co-Author of 12: The Elements of Great Managing

9. Fulfillment of 12 human needs Such as… I know what is expected of me at work. I have the materials and equipment I need to do my work right. I have a best friend at work. This last year, I have had opportunities at work to learn and grow.

10. Driving Performance Engagement alone isn’t enough to drive individual & organizational performance. Employees also need to be ‘enabled’ to channel their efforts productively

11. Enabling (in a good way!) Having the right tools to do their job Information Technology Equipment Finance Other support Freedom to focus on their responsibilities without being distracted by procedural restrictions & non-essential tasks

12. Hay Group statistics Companies in the top quartile on both engagement and enablement achieve revenue growth 4.5 times greater than those in the bottom quartile. Employee performance is 10% higher in companies in the top quartile on engagement than those in the bottom quartile. Employee retention is 40% higher. C ustomer satisfaction is 71% higher.

13. What can leaders do? Encourage managers to engage employees by making it a performance criteria & rewarding engagement through incentive programs

14. What else can leaders do? Think in terms of total rewards and not just financial rewards Work environment or organization climate, Work-life balance The nature of the job & quality of the work, and Career opportunities

15. Anything else we can do? Conduct EE Engagement Surveys. Management must respond to input & suggestions with concrete actions and change. Involve EE’s in these change efforts.

16. Anything else? Demonstrate firm leadership and that you are capable of executing on strategic objectives. Clear, transparent communication is key, especially in adverse conditions.

17. Questions? Comments? Karen Loftus, MBA/SPHR Engage to Retain www.EngageToRetain.com 480-335-2367 [email_address] Complimentary 30 min consultation