eXindy 2016
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Presentation for the Indianapolis Employee Experience Conference 2016. It covers employee engagement measurement. Outline: 1. Why measure anything about the employee experience 2. Why measure employee engagement specifically 3. How to measure employee engagement in a valid way 4. How to measure employee engagement in a valuable way
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eXindy 2016
- 1. Todd Richardson, Founders and Chief People Officer Brian Deyo, Head of Employee Engagement Research What is Employee Engagement and Tools to Measure It?
- 2. 1. Define employee engagement and its role in business success. 2. Discuss the evolution of engagement measurement. 3. Highlight the new world of engagement measurement. Today’s Talk
- 3. An employee’s intellectual (head) and emotional (heart) connection with an employer, demonstrated by motivation and commitment (hands) to positively impact the company vision and goals. What is Employee Engagement?
- 4. Why Employee Engagement Matters Only 30% of U.S. employees are engaged in their jobs. Increased Engagement Means: 50% lower turnover rate $ 3X more profitable in operating margin 22% higher utilization and productivity
- 5. The Importance of a Focused Engagement Strategy Percentage of business leaders who believe that employee engagement is critical to achieving business objectives. 70% Agree 30% Neutral or Disagree Source: CEB Engagement Research Survey 20% Agree 80% Neutral or Disagree Percentage of business leaders who believe that employee engagement initiatives are driving business outcomes.
- 6. The Importance of a Focused Engagement Strategy “The essence of strategy is that you must set limits on what you're trying to accomplish.” Michael Porter “However beautiful the strategy, you should occasionally look at the results.” Winston Churchill
- 7. The world has dramatically changed the last two decades. How we measure engagement has not kept pace.
- 8. A Lot Has Changed Since 1995 Windows 95 launches, selling 40M copies in its first year.
- 9. A Lot Has Changed Since 1995 Friends finishes its first season, becoming a pop culture phenomenon.
- 10. A Lot Has Changed Since 1995 Jerry Garcia, famed member of the Grateful Dead, dies.
- 11. A Lot Has Changed Since 1995 And in case you forgot, mobile phones looked like this.
- 12. Business Has Evolved With The Changing Times
- 13. The Evolution of Business
- 14. Evolution of Engagement Measurement. . .Trust Your Gut!
- 15. Welcome To The Decade Of…
- 17. Why engagement (as opposed to something else)?
- 20. How to measure engagement in a valid way?
- 21. Effective employee engagement measurement 1. Develop a consistent cadence (year, quarterly, monthly) 2. Ensure confidentiality (third party) or expressly commit to openness 3. Balance robustness and ease of use 4. Don’t neglect set up and delivery 5. (again) Measure engagement
- 22. How to measure in a valuable way?
- 23. Critical Engagement Drivers Psychological Conditions of Engagement Individual Engagement Scale Actionable groupings 1. 2. 3. 4.
- 24. 1. Meaningfulness 2. Safety 3. Capacity Psychological Conditions
- 29. They couldn't believe that responsiveness. I can't remember anytime in my working life where anybody asked for my ideas to solve the problem. And they literally want to know, and when I tell them, they listen, and then suddenly, they disappear and somebody comes back with the tool that I just described-- it's built-- and they say, "Try this."
- 31. Coming Soon: Agile Engagement QUESTIONS?
Editor's Notes
- Windows 95 launches, selling 40M copies in its first year.
- Before we start, I want to ask a few questions to understand where the room is on some things. 1st – How many of you measure some aspect of your employee experience? 2nd – How many of you intentionally try to measure engagement? 3rd – How many of you are very confident that your measure is a valid measure of EE? 4th – For the 1 or 2 of you left, are you confident that you understood why your engagement score was what it was? For example, did the analysis give you the ability to see areas needing improvement quickly and easily. That is essentially the order of the next 10 min. I want to run through Why you should specifically measure engagement How to measure engagement in a valid way How to measure engagement in a valuable way Obviously this is a market we’re in and thrilled to be in. We are passionate about helping employers and employees thrive. You see various estimates about the disengagement of the workforce and Todd and I and the rest of the team at Emplify are on a mission to help millions of employees wake up every day wanting to come to work and advance the mission and success of their employers. I think we all want this. The hard part is figuring out how to tap into the human spirit at work.
- Let’ me tell you about the first car my wife and I bought. 2003 Pontiac Vibe – 175,000 miles – No power, No Speed, No fun. What is most interesting about this vehicle though and relevant for today’s topic is where it was built.
- At the time of its closure in 1980 the GM Fremont employees were “considered the worst workforce in the automobile industry in the United States”, according to the UAW. To give you a sense for how bad it was: Alcohol and drug consumption were common on the job Unsanctioned gambling was a regular break time activity Prostitution RV’s were in the parking lot during mandated UAW breaks. But worst of all for GM, workers were actively sabotaging cars. beer bottle caps in the door frames so they would rattle and have to be repaired. And that’s just the juvenile sabotage. On the extreme end is a story about one worker who didn’t tighten the bolts on the front suspension for 200 cars. That is life threatening and criminal. Needless to say it was a dysfunctional place. There was one rule on the line. NEVER STOP THE LINE. There was a story once of a man who had a heart attack who felling into the pit (the area where workers could access and assemble the underside of the car) because he had a heart attack. So, here’s the question. Based on the definition shared earlier, there is no way you could describe these employees as engaged. But were they satisfied? This was the best job in town. Best pay, best benefits. Cadillac health care plans The entire UAW goal was to “satisfy’ them and give them what they wanted. If you could measure engagement and satisfaction in this factory, there is no way you would get the same results. When we assess engagement, we think of “disengagement” as the opposite. This is hardly disengagement. This is more “anti-enagement”. In some cases employees checked out, but it others they actively pushed against the goals of the company. This is why you need to measure engagement.
- Study after study has shown that measuring people is hard and you get really unexpected outcomes. Survey We think the most accessible way to measure engagement is through a well designed survey.
- Here is the progression when interpreting results. The first is the engagement score itself. Comparing it across teams and demographics to see if anything stands out. Psych conditions. Drivers But we think the most valuable tool for understanding engagement is this middle box called the Psychological conditions of employee engagement. There are three that are well accepted in the literature. From the very beginning when employee engagement was first written about in 1990, William Khan suggested three conditions that need to be present in the individual to allow them to immerse or engage in their work.
- Safety: Safety is a sense within the individual that they can show and employ themselves without fear of negative consequences to self-image, status, or career. They feel situations are trustworthy, secure, predictable, and clear in terms of consequences. Capacity: Capacity - is the sense of possessing the physical, emotional, and psychological resources necessary for investing oneself into the role. Feeling capable of driving physical, intellectual, and emotional energies into role performances.
- Personal Story
- In 1984 the GM and Toyota partnered to reopen the Fremont plant. They were odd bedfellows, but GM needed to learn how to build a quality small car and Toyota needed an American manufacturing presence. More importantly for Toyota they needed to know if their Toyota Production System would work with American workers.
- That partnership was called NUMMI. New united motor manufacturing inc. Within a year, this plant with 85% of the same workers as the old GM plant was producing as fast and as good quality cars as the Toyota plants in Japan. How did this happen? How did the chaos that I just described turn into the most effective GM plant ever? Toyota stops the line an average of 3,500 times per day.
- However, it was a great. It was (and is) the most reliable well built car I’ve owned. And I’m a car guy. I’ve owned two BMWs, a Cadillac, a few trucks, a honda, and a Volkswagen. Nothing was as good as that little vibe. My dad still drives this thing around while approaching 300,000 miles. It has had zero manufacturing problems. Remember it came from the worst plant in US history.