- Employee engagement has become a top priority for companies as it can increase productivity, innovation, and bottom-line performance while reducing costs. However, many companies still struggle to effectively measure engagement and tie it to financial metrics.
- The study found that just 24% of respondents said most employees in their organization are highly engaged. Executive managers viewed engagement more optimistically than middle managers.
- "High prioritizers" who see engagement as extremely important are more likely to use metrics to improve performance and share best practices like goal alignment, recognition programs, and surveys to connect engagement to business outcomes.
Executive Summary
Employee engagement has become a top business priority for senior executives. In this rapid
cycle economy, business leaders know that having a high-performing workforce is essential
for growth and survival. They recognize that a highly engaged workforce can increase innovation,
productivity,
and bottom-line
performance
while reducing
costs related
to
hiring
and
retention
in highly competitive
talent
markets.
But while most executives see a clear need to improve employee engagement, many have
yet to develop tangible ways to measure and tackle this goal. However, a growing group of
best-in-class companies says they are gaining competitive advantage through establishing
metrics and practices to effectively quantify and improve the impact of their engagement
initiatives on overall business performance.
The 2014/2015 HRM Recruit â Employee Engagement Report brings insight into the primary engagement drivers of over 13,000 professionals in Ireland across 12 functional areas. In the report we look at and weight the factors that have most impact and highlight those, that for some functions, do not give the engagement advantage one might expect.
Believing is seeing: As employees that believe in collaboration make better decisions for their companies and also offer a higher output. This EIU research, sponsored by BTS, explores this notion, and whether firms are leveraging collaborative techniques to improve business success. It also explores the difficulties of collaboration and the value of collaborating across functions and levels to achieve strategic alignment. It is based on a survey of 249 business leaders in North America, Europe and Asia-Pacific.
Real-time Workforce Planning: Keeping up with business change Bhupesh Chaurasia
Â
Adapting to change is not a new concern, but responding to the increasing pace of change is a challenge many of todayâs organizations struggle with. Adoption rates for new technologies continue to accelerate, and each new innovation raises our expectations for how things get done. To keep up with the pace of change of both technology and process, business leadership
must adopt more dynamic decision-making processes throughout every part of the organization â including its people processes.
Broken links: Why analytics investments have yet to pay off, sponsored by ZS, draws on the survey findings, interviews with senior corporate executives and desk research to explore the current state of sales and marketing analytics.
Executive Summary
Employee engagement has become a top business priority for senior executives. In this rapid
cycle economy, business leaders know that having a high-performing workforce is essential
for growth and survival. They recognize that a highly engaged workforce can increase innovation,
productivity,
and bottom-line
performance
while reducing
costs related
to
hiring
and
retention
in highly competitive
talent
markets.
But while most executives see a clear need to improve employee engagement, many have
yet to develop tangible ways to measure and tackle this goal. However, a growing group of
best-in-class companies says they are gaining competitive advantage through establishing
metrics and practices to effectively quantify and improve the impact of their engagement
initiatives on overall business performance.
The 2014/2015 HRM Recruit â Employee Engagement Report brings insight into the primary engagement drivers of over 13,000 professionals in Ireland across 12 functional areas. In the report we look at and weight the factors that have most impact and highlight those, that for some functions, do not give the engagement advantage one might expect.
Believing is seeing: As employees that believe in collaboration make better decisions for their companies and also offer a higher output. This EIU research, sponsored by BTS, explores this notion, and whether firms are leveraging collaborative techniques to improve business success. It also explores the difficulties of collaboration and the value of collaborating across functions and levels to achieve strategic alignment. It is based on a survey of 249 business leaders in North America, Europe and Asia-Pacific.
Real-time Workforce Planning: Keeping up with business change Bhupesh Chaurasia
Â
Adapting to change is not a new concern, but responding to the increasing pace of change is a challenge many of todayâs organizations struggle with. Adoption rates for new technologies continue to accelerate, and each new innovation raises our expectations for how things get done. To keep up with the pace of change of both technology and process, business leadership
must adopt more dynamic decision-making processes throughout every part of the organization â including its people processes.
Broken links: Why analytics investments have yet to pay off, sponsored by ZS, draws on the survey findings, interviews with senior corporate executives and desk research to explore the current state of sales and marketing analytics.
Unlocking people data possibilities can shape your
strategy and help you make more informed decisions in your organization. Gut feel is good but data-driven is better.
Merittrac Research - Why companies shy away from assessmentsMeritTracSvc
Â
The emergence of new technologies and disruptive trends is creating diverse job opportunities. Competition among companies to snatch the right talent is exerting enormous pressure on human resource (HR) departments to streamline hiring, curate suitable job offers and ensure relevant employee training â quickly, accurately and efficiently.
Businesses today need to take advantage of every conceivable angle and opportunity to stack the deck in their favor if they are to become major players in their industries . One often overlooked tactic is to utilize compensation, not as a traditional reward and recognition system, but as a strategic tool. Leading organizations recognize that taking a strategic approach to compensation can play a major role in their ongoing success.This line of thinking is getting a lot of attention in the world of compensation leadership. For example, recent Aberdeen research demonstrates that creating a formalized compensation strategy is rapidly becoming a best practice among top performing organizations. In fact, Best-in-Class companies are 12% more likely than Average organizations and 57% more likely than Laggard organizations to have a formal compensation strategy in place.
By Courtney Hamilton, David F. Larcker, Stephen A. Miles, and Brian Tayan, Stanford Closer Look Series, February 15, 2019
Two decades ago, McKinsey advanced the idea that large U.S. companies are engaged in a âwar for talentâ and that to remain competitive they need to make a strategic effort to attract, retain, and develop the highest-performing executives. To understand the contribution of the human resources department to company strategy, we surveyed 85 CEOs and chief human resources officers at Fortune 1000 companies. In this Closer Look, we examine what these senior executives say about the contribution of HR to the strategic efforts and financial performance of their companies.
We ask:
âą What role does HR play in the development of corporate strategy?
âą Does HR have an equal voice or is it junior to other members of the senior management team?
âą Do boards see HR and human capital as critical to corporate performance?
âą How do boards ascertain whether management has the right HR strategy?
âą How adept are companies at using data from HR systems to learn what programs work and why?
Many internal audit departments are investing in data analytics, but are struggling to fully realize the anticipated benefits. By avoiding common pitfalls and implementing data analytics holistically throughout the department, stalled analytics programs can be restarted, or new programs more successfully implemented.
Strategic People Management for the 21st CenturyAdrian Boucek
Â
The challenge from an HR standpoint is that 20th century tools and approaches donât work in the fast-changing, 21st century workplace. Strategic people management â where HR initiatives are directly tied to business goals â is critical.
Midsized businesses play an important role in the recovering U.S. economy. The Association for Corporate Growth (ACG), for example, reports that while midsized businesses represent just 1% of all businesses, they provide 26.5% (48 million) of all U.S. jobs. Review this whitepaper and learn about the three key themes which emerged in the study results - employee engagement, talent management, and compliance.
Unlocking people data possibilities can shape your
strategy and help you make more informed decisions in your organization. Gut feel is good but data-driven is better.
Merittrac Research - Why companies shy away from assessmentsMeritTracSvc
Â
The emergence of new technologies and disruptive trends is creating diverse job opportunities. Competition among companies to snatch the right talent is exerting enormous pressure on human resource (HR) departments to streamline hiring, curate suitable job offers and ensure relevant employee training â quickly, accurately and efficiently.
Businesses today need to take advantage of every conceivable angle and opportunity to stack the deck in their favor if they are to become major players in their industries . One often overlooked tactic is to utilize compensation, not as a traditional reward and recognition system, but as a strategic tool. Leading organizations recognize that taking a strategic approach to compensation can play a major role in their ongoing success.This line of thinking is getting a lot of attention in the world of compensation leadership. For example, recent Aberdeen research demonstrates that creating a formalized compensation strategy is rapidly becoming a best practice among top performing organizations. In fact, Best-in-Class companies are 12% more likely than Average organizations and 57% more likely than Laggard organizations to have a formal compensation strategy in place.
By Courtney Hamilton, David F. Larcker, Stephen A. Miles, and Brian Tayan, Stanford Closer Look Series, February 15, 2019
Two decades ago, McKinsey advanced the idea that large U.S. companies are engaged in a âwar for talentâ and that to remain competitive they need to make a strategic effort to attract, retain, and develop the highest-performing executives. To understand the contribution of the human resources department to company strategy, we surveyed 85 CEOs and chief human resources officers at Fortune 1000 companies. In this Closer Look, we examine what these senior executives say about the contribution of HR to the strategic efforts and financial performance of their companies.
We ask:
âą What role does HR play in the development of corporate strategy?
âą Does HR have an equal voice or is it junior to other members of the senior management team?
âą Do boards see HR and human capital as critical to corporate performance?
âą How do boards ascertain whether management has the right HR strategy?
âą How adept are companies at using data from HR systems to learn what programs work and why?
Many internal audit departments are investing in data analytics, but are struggling to fully realize the anticipated benefits. By avoiding common pitfalls and implementing data analytics holistically throughout the department, stalled analytics programs can be restarted, or new programs more successfully implemented.
Strategic People Management for the 21st CenturyAdrian Boucek
Â
The challenge from an HR standpoint is that 20th century tools and approaches donât work in the fast-changing, 21st century workplace. Strategic people management â where HR initiatives are directly tied to business goals â is critical.
Midsized businesses play an important role in the recovering U.S. economy. The Association for Corporate Growth (ACG), for example, reports that while midsized businesses represent just 1% of all businesses, they provide 26.5% (48 million) of all U.S. jobs. Review this whitepaper and learn about the three key themes which emerged in the study results - employee engagement, talent management, and compliance.
Special Report: The Secret to Increasing Workforce Performance through Great ...StaffCircle Ltd
Â
The business marketplace has never been more competitive. Lower barriers to entry, a global audience, rapid product development, and several other areas combine to create a fast-moving, ever-changing environment. Against this shifting background itâs vital to take a step back and look at the most important part of your business â your employees.
Powering Your Bottom Line Through Employee EngagementKip Michael Kelly
Â
The greatest concerns of most CEOs are operational excellence, innovation, risk, the regulatory environment, and competing globally. Underpinning those areas is their primary concernâhuman capital. The âpeople threadâ is what prepares an organization to compete and win. The greatest asset that organizations have is the power of their employees. Employee engagementâthe emotional commitment of employeesâis a tremendous competitive advantage that impacts the bottom line when strategically managed.
The majority of organizations have an opportunity to further leverage employee engagement as a business driver. A recent Gallup poll found that more than 70 percent of American workers are either actively or passively disengaged from their work. HR, talent management professionals, and business leaders need to assess (or re-assess) how widespread and entrenched employee disengagement is in their organizations and partner together to improve it.
This white paper:
- Discusses the costs of employee disengagement in organizations.
- Links employee engagement to an organizationâs bottom line and offers reasons why employee engagement should be a strategic business priority.
- Offers steps that HR and talent managers can take to improve employee engagement throughout their organizations.
- Provides examples of what organizations are doing to boost employee engagement.
The Impact of Key Performance Indicators (KPIs) on Talent Developmentpaperpublications3
Â
Abstract: This Paper is one of the most important papers which focus on Key Performance Indicators in relation with talent development which start to be the main focus of all companies and countries and most researchers start working on the same subject to give more insights on it. This paper aim to explore the importance of Key Performance Indicators and its impact on Talent development and the advantages of using the performance management system especially in the large companies where there are difficulties in assessing employeesâ performance. The importance of this research is the well develop and design comprehensive framework about the establishment, use and evolution of key performance indicators and how specialists can use the tools and implement process step by step with the highlighting of all challenges and limitations. The challenge is in the KPIs more than calculate the human capital ROI and Talent Development because itâs the hardest part where implementing such techniques can restructure all the organization from the bottom line. This level of extensiveness is the place the test exists much of the time, and where the profit of having a decent strategic plan is not completely figured it out. In short, it is a long between joined affix that needs to be concentrated on nearly part by part.
The current age of hyper transparency requires more public presence of corporate managers. In todayâs business world, some of the most valued behaviours include taking part in events, being accessible to the media and available in social networks, sharing new insights and trends, playing a visible role in society or featuring on the corporate video channel.
This document includes detailed percentages about different aspects that show the interdependence between CEO reputation, company reputation, and market value and itâs based on the research The CEO Reputation Premium: Gaining Advantage in the Engagement Era, carried out by Weber Shandwick, in partnership with KRC Research, who sought to quantify the value of CEO reputation and measure the importance of CEO engagement. They conducted a survey of more than 1 700 executives that worked in companies with revenues of $500 million or more and represented 19 countries around the world.
Besides, it explains what CEOâs attitudes are more valued, what activities CEOs should do and what are the core competences for a CEO to Gain a Good Reputation.
It also talks about the perceptions of the highest executive power depending on gender. However, apart from these small differences, the reputations of male and female CEOs contribute approximately the same levels to the market value of their firms.
It ends up with some suggestions to maximize CEO's public presence and benefit corporate reputation.
Document written by Corporate Excellence â Centre for Reputation Leadership, quoting the research The CEO Reputation Premium: Gaining Advantage in the Engagement Era prepared by Weber Shandwick in collaboration with KRC Research in in 19 countries around the world from surveys of more than 1 700 executives of companies invoicing 500 million USD or more and released on March 2015.
Creating Engagement in a Diverse Workforce - Technology tools to help you eng...HeyEmbedMe
Â
According to the Global Human Capital Trends 2016 report, âemployee engage-
ment is a headline issue throughout business and HR.â Fully 85 percent of survey
respondents ranked engagement as a top priority, yet only 46 percent reported that they
were prepared to address engagement challenges.1
One of the drivers behind the focus on engagement â which not only concerns HR,
but also has wider implications for the overall performance of an organization â is
the increasing diversity of todayâs workforce. From aspiring Millennials to aging Baby
Boomers â working in a complex mix of full-time, part-time, contingent, temporary,
and contract roles â the 21st-century workforce is more diverse than ever, challenging
organizations to build and support a corporate culture that fosters employee engage-
ment. When you pair this diverse workforce with the growing competition to attract and
retain top talent, itâs easy to see why culture and work environment have become key
drivers of employment brand. No matter the age, status, or position of your employees,
how can your organization effectively engage and inspire todayâs diverse workforce?
Helping HR to measure up arming theââsoftââ function with hSusanaFurman449
Â
Helping HR to measure up: arming the
ââsoftââ function with hard metrics
Kate Feather
Abstract
Purpose â The purpose of this article is to highlight the more strategic role HR departments can play in
their organizations. By prioritizing the measurement strategy in organizations, HR leaders can
demonstrate to leadership the impact employees have on the business and how an investment in
internal processes and programs can boost engagement â and ultimately business results.
Design/methodology/approach â This paper outlines a four-step process for effective employee
engagement measurement: use behavioral and emotional outcomes; correlate employee engagement
survey results to meaningful outcomes; focus improvement efforts and investments on the high
impact/low performing areas; and re-measure to assess success. A series of de-identified examples
from PeopleMetrics clients illustrate the importance of following each step in the process.
Findings â By measuring employee engagement, tying the results to other HR and business metrics
and using the findings to target improvement efforts, organizations are demonstrating to leadership the
impact employees have on the business and how an investment in internal processes and programs can
boost engagement â and ultimately business results. As more organizations recognize the value of
using rigorous metrics to evaluate and optimize their workforces, the HR function will benefit because it
will be serving a more strategic function than it has traditionally been associated with in the past.
Research limitations/implications â These findings are based on the fieldwork experience of
PeopleMetrics.
Originality/value â The paper provides a very useful perspective for HR managers to consider,
particularly within organizations with extensive measurement systems.
Keywords Employee development, Human resource management,
Human resource management research
Paper type Case study
Introduction
HR professionals looking to overcome the view that HR is a ââsoftââ function for which there are
few hard metrics should focus on employee engagement as a measurement that can be
linked to other HR and business metrics and deliver improved business results. Kate
Feather, a director at PeopleMetrics, outlines the path to effective measurement and
demonstrates the theory in practice in a range of organizations.
Successful businesses function around a set of core metrics supporting the view that what
gets measured gets managed. For a long time metrics such as revenue, costs, profits, units
shipped and defects have been closely monitored, analyzed and researched. During this
time, however, HR was dubbed a ââsoftââ function, with the typical view being that people and
metrics do not mix. While HR has always known the value of its role, the problem has been in
quantifying return on investment for senior management.
Today, there is little doubt in the board room that people make a difference to business
...
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As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
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Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. Youâll also learn
âą Four (4) workplace discipline methods you should consider
âą The best and most practical approach to implementing workplace discipline.
âą Three (3) key tips to maintain a disciplined workplace.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
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A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
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Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
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Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
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This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
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Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, youâll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
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Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
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Business Valuation Principles for EntrepreneursBen Wann
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This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Â
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
4. These include:
â â Avoiding rote surveys. Leading companies devote significant resources to carefully crafting employee
engagement surveys so they ask pointed, clear questions that go beyond measuring âsatisfaction.â
They then pore through the data to find the hidden stories of whatâs working and where there are
pockets of dissatisfaction. Finally, senior management uses this information to inform strategy and
policies going forward.
â â Ensuring
that goal alignment is occurring at every level of the organization and is well-communicated.
Top managers set and communicate business objectives; middle managers are responsible for creating
specific objectives for employees that support broader business goals; and employees are given the tools
to succeed, some autonomy, and accountability to meet tangible goals aligned with corporate goals.
â â Using
data to leverage engagement initiatives to improve performance, typically customer satisfac-
tion/net promoter score (NPS) surveys and feedback, and then tying winning results to recognition
programs to reinforce alignment and the activities linked to performance.
In most companies, todayâs leaders are acutely aware that there is much to be done to ensure that they
have a focused and highly engaged workforce. Connecting engagement to business performance requires
considerable effort and top management focusâand, to a large degree, it is about how you do it. But there
is enormous opportunity for companies that get it right.
Respondent Snapshot (Methodology)
A total of 568 respondents completed the survey. All were from organizations with 500 or more employees;
more than 42 percent of respondents were from organizations of 10,000 or more employees. The survey was
global, representing companies with headquarters in North America (54 percent), Asia (18 percent), Europe
(16 percent), MEA (7 percent), and South/Central America (5 percent).
The respondents were from a variety of industries: 16 percent worked in IT/telecommunications firms;
14 percent were from financial services; 12 percent were in manufacturing; 9 percent were in energy/utilities;
8 percent were in healthcare and 8 percent were in education; and other sectors made up the remaining
33 percent.
The respondents were largely senior-level executives: 15 percent are executive management or board
members; 32 percent are senior management; 35 percent are middle management; and the remaining
18 percent are other grades. The largest percentage, 27 percent, manages a group of people within a
department, while 24 percent have people management responsibility for the whole department. Fourteen
percent have people management responsibility for their whole business unit, and 13 percent extend the
responsibility corporate-wide.
2
| a harvard business review analytic services report
5. full report
The Importance of Employee Engagement
As companies emerge from the recessionary economic climate of the past three years, there has been a
shift toward investing for growth and away from cost reduction. Twenty-four percent now say they are
investing for growth in the coming year, while only 16 percent said they were doing this over the past
three years, representing a significant shift toward investment. Many companies, though, are hedging
their bets, cautiously entering growth mode while still maintaining a rigorous focus on cost containment.
figures 1 and 2
Given this renewed emphasis on growth and investment, which factors do business leaders view as most
critical to success? People-oriented âsoftâ factors dominate this list. The top three success factors identified in this study were achieving a high level of customer service, effective communications, and achieving a high level of employee engagement and strong executive leadership (tied for third place). This places
employee engagement as a top-three business priority. figure 3
This is not surprising. For the past several years, companies have been increasingly monitoring their
engagement levels, as a growing body of research has demonstrated that having a highly engaged workforce not only maximizes a companyâs investment in human capital and improves productivity, but it can
also significantly reduce costs, such as turnover, that directly impact the bottom line.
Mike Rickheim, vice president of talent management at Newell Rubbermaid, a global consumer goods
company, explained that engagement âis not just a warm, fuzzy thing. Itâs about giving people the tools
they need to succeed in their careers, which in turn drives the outcomes that weâre seeking in the marketplace. When you look at it through that lens, when people have the tools they need to succeed, feel good
about their personal growth opportunities, and receive the appropriate rewards and recognition for their
contributions, itâs a win-win proposition.â
Figures 1 and 2
Shifting Strategy: Companies Are Now Investing in Growth
Would you say your organizationâs primary focus over the past three years has been on lowering costs
or investing for growth? What is your organizationâs primary focus for the year ahead?
PRIMARY BUSINESS FOCUS,
PAST THREE YEARS
PRIMARY BUSINESS FOCUS,
YEAR AHEAD
2%
2%
27%
31%
51%
16%
47%
24%
â Lowering costs
â Investing for growth
â Both
â Neither
the impact of employee engagement on performance | 3
6. Figure 3
Factors Most Likely to Bring Success
Which factors are most likely to bring success?
Importance top box scores (8â10) for all respondents
80%
High level of customer service
73%
EïŹective communications
High level of employee engagement
71%
Strong executive leadership
71%
68%
EïŹcient productivity
Continuous quality improvement
59%
Ability to innovate
59%
Strong sales and marketing capabilities
58%
High and Low PrioritizersâWhat Sets Them Apart
To understand how best-in-class companies connect employee engagement to business performance, the
study asked participants to rate how important employee engagement is to overall organizational success
using a 1-10 scale where â1â means not at all important and â10â signifies extreme importance.
Based on their responses, participants were then divided into one of three categories: low prioritizers,
moderate prioritizers, and high prioritizers. The low prioritizers, 14 percent of the total respondents,
placed a low value on employee engagement (2-6). The moderate prioritizers, at 38 percent, put employee
engagement at a 7 or 8. The high prioritizers, 48 percent of those surveyed, gave employee engagement a
9 or 10. The rest of the survey tracked respondents based on these categories.
Some interesting correlations and contrasts emerged between high and low prioritizers. Low prioritizers
were much more likely to focus on cost cutting vs. investment (43 percent) and are more likely to be middle
managers within an operations or product management function. High prioritizers, meanwhile, were senior
managers who placed greater value on other success factors: 94 percent believed high levels of customer
service are important to achieving business success, compared to 39 percent of low prioritizers. figure 4
When asked how optimistic respondents were in their ability to create value in the coming year, high prioritizers were far more bullish than were low prioritizers: Nearly half of high prioritizers (44 percent) said
they were well-positioned to create value, while only 21 percent of low prioritizers believed they were. figure 5
4
| a harvard business review analytic services report
7. Figure 4
Engagement: High Prioritizers More Likely to Value Success Factors
How important are each of the following in achieving overall organizational success?
High level of customer service
39%
EïŹective communications
67%
31%
EïŹcient productivity
Continuous quality improvement
51%
24%
Ability to innovate
54%
26%
Strong sales and marketing capabilities
â Moderate prioritizers
28%
85%
81%
62%
38%
94%
86%
71%
31%
Strong executive leadership
â High prioritizers
78%
76%
73%
68%
56%
â Low prioritizers
Figure 5
Ability to Create Value in Coming Year
How well-positioned is your organization to create value for customers and shareholders in the year ahead?
21%
Well-positioned (8â10)
â Low prioritizers
â Moderate prioritizers
â High prioritizers
38%
44%
39%
â All
the impact of employee engagement on performance | 5
8. Performance vs. Importance
Overall, thereâs still much room for improvement: Just 24 percent of respondents said that they considered most of their employees highly engaged.
Nearly halfâ48 percentâbelieved that their companies comprised a similar mix of engaged/disengaged
employees relative to their competition; and 28 percent felt that there were too many disengaged employees. There were vast differences in perceptions among high and low prioritizers in how they perceived
engagement. A full 51 percent of low prioritizers felt that their companies had too many disengaged
employees in them, compared with only 22 percent of high prioritizers feeling that way. figure 6 Conversely,
only 4 percent of low prioritizers felt that most employees were highly engaged, while 31 percent of high
prioritizers agreed with that statement. So the gulf between high and low prioritizers shows a clear linkage between what gets focused on and perceived outcomes.
Which factors are most critical to improving employee engagement? Almost three-quarters of respondents chose ârecognition given for high performersâ as their top choice, followed by âindividuals have
clear understanding of how job contributes to strategyâ and âsenior leadership continually updates/communicates strategyâ and âbusiness goals communicated company-wide and understood.â figure 7
While the vast majority of respondents identified all the success factors listed to be very important, many
are falling short in delivering those goals, indicating a chasm between whatâs on the âto doâ list and whatâs
actually being done in most organizations. figure 8
Figure 6
Current Levels of Employee Engagement
Which of the following do you feel best describes the level of employee engagement in your organization?
â Low prioritizers
â Moderate prioritizers
â High prioritizers
â All
Executive management far more likely to say most
employees highly engaged (38%, index 158)
â
â Human resources less likely to claim highly
engaged employees (18%, index 79)
45%
50%
47% 48%
31%
23%
51%
27%
24%
22%
28%
4%
Most employees highly engaged
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Similar mix of engaged/disengaged
as competition
Too many disengaged employees
9. Figure 7
Most Impactful Employee Engagement Drivers
How important are each of the following in terms of their impact on employee engagement?
Top box scores for all respondents (8â10)
72%
Recognition given for high performers
Individuals have clear understanding of how job
contributes to strategy
70%
Senior leadership continually updates/
communicates strategy
70%
Business goals communicated company-wide
and understood
69%
Individual staïŹ goals aligned with corporate goals
67%
Assessments and performance reviews aligned with
corporate goals
64%
Some or all staïŹ pay linked to corporate goal
achievement
54%
Training and development organized around
corporate goals
52%
Figure 8
Employee Engagement: Performance vs. Importance
How important are each of the following in terms of their impact on employee engagement?
How would you rate your companyâs performance on each of the following factors?
7
Business goals communicated
company-wide and understood
PERFORMANCE
6.5
Senior leadership
continually updates/
communicates strategy
Recognition given for
high performers
Some or all staïŹ pay
linked to corporate
goal achievement
6
Training and
development
organized around
corporate goals
5.5
6
6.5
7
Individual staïŹ goals aligned
with corporate goals
Assessments
and
performance
reviews aligned
with corporate
goals
7.5
8
Individuals have clear
understanding of how
job contributes to
strategy
8.5
The lower right
quadrant indicates
important contributors
to employee
engagement, where
self-appraisal of
performance falls short
9
IMPORTANCE
the impact of employee engagement on performance | 7
10. Communicating and Embedding Goals
One of the keys to engagement is defining and articulating what constitutes a âsuccessfulâ employee and
communicating success clearly.
âEvery employee should know what theyâre supposed to do and how it impacts your companyâs performance,â asserts a regional director at a North American banking chain. His company focuses first on their
annual survey to determine where the problems are. It includes specific, targeted areas, including:
â â In the last seven days, someone has recognized me for my work;
â â I have the tools that I need to perform my job;
â â My supervisor cares about me;
â â Thereâs someone at work who encourages my development;
â â I know whatâs expected of me at work; and
â â My associates are committed to doing quality work.
These are âvery basic questions,â he says, âbut if youâre not doing well on these questions, itâs revealing.â
The Harvard Business Review Analytic Services study found that the most commonly cited success characteristic is a focus on achieving individual goals that are tied to organizational goals. Companies use a
variety of tactics to communicate and embed goals, with high prioritizers favoring more active tactics
such as management briefings and all-company meetings. figure 9
Heather Markle, manager of rewards and recognition, AutoTrader Group, highlighted goal cascading as
their preferred method of ensuring that employee goals are tied to organizational goals: âOur goals start
at the top, link to the strategy map, and are cascaded down through leadership.â
A senior director at a U.S.-based global information technology and services company attributed their
high employee engagement to selective hiring, continual internal communications, and manager autonomy: âItâs hard to transform people from non-engaged to engaged, so hire really well. Give them messaging a million ways till sundown, and give them a degree of freedom to figure it out. Empower them to do
the right thing.â
The Senior-Middle Management Divide
One finding may help explain one of the biggest barriers to improving engagement: Across the prioritization spectrum, there was a clear divide on perceptions of employee engagement between executive management and middle-management respondents. figure 10
Senior managers were far more likely to be optimistic than their middle-management colleagues were in
their perceptions of engagement levels. Since middle managers are tasked with handling more day-to-day
employee issues, their assessment is likely the more accurate. This implies that in many firms senior managers may need to take off the rose-colored glasses and take a closer look at the barriers to engagement
that may be present, and then find more effective ways of overcoming them.
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11. Figure 9
Communicating and Embedding Goals
How are your organizationâs goals communicated and embedded throughout the company?
ACTIVE MEASURES
Through executive
management brieïŹngs
At âall companyâ
meetings
During assessments/
performance reviews
Through individual goals
that are aligned with
corporate goals
Via training and
leadership development
â High prioritizers
PASSIVE MEASURES
61%
59%
39%
60%
56%
38%
54%
49%
33%
51%
44%
20%
42%
36%
16%
â Moderate prioritizers
67%
59%
52%
Via corporate intranet
Through recruitment and
employee familiarization
Via corporate
social media
Through detailed
job descriptions
22%
25%
34%
22%
15%
23%
16%
19%
18%
â Low prioritizers
Figure 10
Highly Engaged Employees: Executive Management Far More
Positive Than Their Juniors
In your opinion, roughly what percent of your workforce falls into the highly engaged category?
60% or more of employees are highly engaged
â Executive management
â Senior management
40%
29%
26%
31%
â Other management
â All
the impact of employee engagement on performance | 9
12. Figure 11
Measuring Employee Engagementâs Impact on Customer Satisfaction
Which of the following do you use to measure the impact of employee engagement on customer satisfaction?
No metrics used to measure the impact
of engagement on customer satisfaction
38%
40%
29%
45%
45%
Customer satisfaction/net promoter score
Churn
Percentage of new business referred from
existing customers
10%
10%
9%
6%
14%
14%
15%
27%
23%
Revenue growth
11%
20%
20%
Increased market share
â Low prioritizers (1â6)
58%
â Moderate prioritizers (7â8)
â High prioritizers (9â10)
Best Practices in Tying Engagement to Business Performance
The survey showed that while more and more companies are instituting employee engagement programs
to improve and cultivate higher engagement, most are in the nascent stages of measuring their efforts
against tangible business performance numbers. The two metrics most utilized to measure the outcome
of employee engagement initiatives are employee satisfaction and customer satisfaction. figures 11 and 12
Best-practice companies are increasingly measuring and monitoring how engagement affects the customer experience using measuring techniques such as the service-profit chain and net promoter system
(NPS). see sidebars, pages 13 and 14 Following are some examples.
A North American retailerâs employee engagement initiatives begin with a carefully crafted annual
engagement survey, which is then tailored to their needs by on-staff organizational psychologists. âEach
year we get at more specific aspects of feelings/emotions of working there, their supervisor/manager, and
how they feel they are kept informed,â the compensation director explains. The company also prioritizes
engagement by listing it alongside other financially driven measures on their balanced scorecard.
Communicating the corporate goals is clear and specific, a âprescriptive communication cascadeâ from
region to district to store-level. âAt each part, it gets more and more granular,â she says.
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13. For the last two years, as a means of improving engagement and performance, the company has focused
on connecting reward and recognition programs with customer feedback data. For example, they recently
instituted a wraparound recognition program to overcome the âSeptember slump,â the typical drop-off
in sales that plagues their industry every fall. This program encourages sales staff to step up their service,
greeting customers at the door, helping them locate items, and alerting them to money-saving opportunities at the in-store kiosks. Using this program, the company was able to dramatically exceed customer
satisfaction levels and reverse the negative Q4 trend. Then it built a special recognition program to honor
stores that hit specific goals, such as maintaining customer satisfaction levels, the most improved store,
and for stores that crossed over from unsatisfactory to satisfactory service levels.
Karen McKay, vice president, human resources and learning and development, Eli Lilly Canada, says her
company uses the service value (profit) chain model globally as their model for connecting employee
engagement to performance. see sidebar, Understanding the Service-Profit Chain âExceptional leadership leads to
engaged employees leads to customer satisfaction leads to business results. End of chain equals patient success.â Based on feedback on the chain, they set up one-year and five-year goals, which are then shared with
employees at town hall meetings and in newsletters. âThe language and metrics are consistent throughout
the organization.â
They also track individual performance by using NPS via internal and external surveys. The external surveys assess the value the company provides to physicians. Then they reward employees for how well they
improve service, benchmarking their scores with other companies. NPS feedback has been extremely
valuable. She explains, âWe gather every three months to look at feedback from these touch points, share
results, see opportunities for improvement, and then come up with solutions, uncovering areas where
there are pockets of dissatisfaction.â
Figure 12
Impact of Employee Engagement on Customer Satisfaction
To what extent does employee engagement have a direct impact on customer satisfaction?
â Low prioritizers
â Moderate prioritizers
â High prioritizers
69%
77%
46%
46%
26%
6%
17%
3%
1%
Little impact (1â3)
Moderate impact (4â7)
Considerable impact (8â10)
the impact of employee engagement on performance | 11
14. In addition, Lilly has reframed the relationship between their sales representatives and their physicians,
adopting a more values-based approach that focuses on being of service. To support this, a typical question they now ask is, âWhat are the problems you face in your practice?â The company also benchmarks
outside its industry, looking at the best practices of renowned customer service companies like Zappos,
the online retailer.
âZappos was built on the simple premise that to have happy customers, we need happy employees. To
have happy employees, we need a great company culture. The success of Zappos demonstrates the linkage between company culture and employee engagement to company success. Our motto of âDeliver
Happinessâ for customers and employees was also good for our business and investors,â said Alfred Lin,
partner at Sequoia Capital and former chairman and COO of Zappos.
At the European branch of a global logistics and supply chain company, employee engagement is first
evaluated via their anonymous annual survey, which they track year-over-year. The survey asks specific
questions that include: 1) Is our company a great place to work? 2) Are you thinking of getting a new job
outside of this company? 3) Are you proud to work here? 4) Are you satisfied with the job youâre doing
here? The company has been using NPS to collaborate on goals and ensure that employees adopt a customer-centric approach to all that they do.
The chief HR officer and director of human resources at LG Electronics USA, Bernard McGovern, says all
employees have KPIs recorded on their annual performance plan, which is measured three times a year
formally. Those in revenue-generating or influencing positions have revenue or profitability KPIs, while
everyone else has service KPIs, measured quantitatively by sending out goals and targets. Rewards are
based on KPI performance. KPIs are set after evaluating customer survey data: âOur mission is making
products that customers love. So we do the market researchâthe short survey, how are we doing, what
can we improve? This helps fix KPIs for the upcoming period.â
A line manager at the Indian subsidiary of a global technology products and services company says his
company uses a constantly evolving performance connection tool to link individual performance with
KPIs. Managers set individual goals for employees based on broader business goalsâfor example, raising customer satisfaction by solving bugs in a particular product. While the company has twice-yearly
performance reviews, employees and managers can tweak goals at their discrepancy throughout the year
via the online tool. Informed of corporate goals and strategy changes via quarterly all-hands meetings,
employees are empowered to set new goals for themselves, but managers can make adjustments where
necessary and have veto power if the goals donât align with the overall KPIs.
At a global telecommunications companyâs Latin American subsidiary, the engagement director uses an
annual dialogue survey to measure the state of the company, including an employee engagement index.
âEvery line manager needs to formulate a plan based on the results of the survey. Results are rated compared to last year, compared to the whole company, compared to other regions, and compared to outside
global benchmarks outside the company.â In addition, they have all-employee meetings four times a year,
where results are shared and progress on their balanced scorecard is revealed. These meetings also recognize staff members who have achieved excellent performance.
The North American banking chain regional director advised against too-narrow benchmarking: âLook at
other teams, other industries to come up with best practices. Then it becomes practice sharing. Tie that
into employeesâ annual performance reviews. Encourage managers to talk about development during
those one-on-ones throughout the year.â
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15. Using the Net Promoter system (NPS) as a Model for Measuring Engagement on
Business Performance: an interview with Rob Markey
Rob Markey, head of Bain & Companyâs Global Customer Strategy and Marketing Practice
and co-author, The Ultimate Question 2.0, believes that âthe only way to have consistently really high levels of customer loyalty is to have a workforce that is so enthusiastic,
creative, and energetic that you outperform competitors in service delivery, execution,
and product design.â To do that, âyou need to put employees in a position where they
can be successful in creating high levels of customer loyalty and where they get the pride
in knowing that theyâve made someone elseâs life better.â
Markey differentiated between employee satisfaction and employee advocacy. Satisfied employees, he said,
âhave a physically and emotionally safe work environment, are given good training, and are being valued
and compensated fairly.â But true engagement requires advocacy, and âwhat earns advocacy is the ability to
achieve extraordinary things against a purpose with meaning, an objective; the ability to work in a team that
you trust and like and youâd do anything for and that would do anything for you; and the opportunity to learn
more and grow in the role.â
According to Markey, companies that are strongest in fostering high levels of employee engagement do these
three things:
1. hey put employees in positions where they have the ability to exercise judgment in doing their jobs and
T
learn over time through feedback from customers (internal or external) to do that job better;
2. hey continually link employee performance back to the broader goals of the organization to make cusT
tomer goals better; and
3. ulturally, their missions are heavily staked in offering employees autonomy, mastery, purpose, and a
C
strong sense of affiliation. Structurally, this means top managers need to open up the decision-making authority, allowing power and responsibility to be decentralized from headquarters out into individual teams.
Markey advises clients on how to use NPS to achieve higher employee engagement and sustained customer loyalty to improve shareholder value. NPS is based on the question, how likely is it that you would recommend this
company, or this product or service, to a friend or colleague? By asking this simple question, and stripping down
customer surveys to this and a few follow-ups, NPS provides a tangible, real-time metric and allows companies
to gain customer insights that go straight to the front line, affecting strategy and decision-making and giving
employees critical, quick feedback on their performance and on what customers find most valuable.
âNPS ties directly to revenue growth,â Markey explains, âand it inspires the actions that drive growth. Feedback is specific, tangible, and immediate. Team members up and down the organization could relate to what
the score meant and what response would be appropriate.â
Markey cited an example of two airport teams from the same South American airline and the impact of delays
on customer net promoter scores, comparing two delays and their impact on customers. The first team
oversaw a delay of 20 minutes or less but customers reported bad communication. This teamâs employee NPS
was 30. The second team, which had an employee NPS of 70, experienced a delay of more than four hours, but
customers reported good communication; employees offered frequent updates. On average, NPS is dramatically lower when customers experience a significantly longer delay. But despite the huge difference in delay
time, customers gave both teams the same NPS, revealing a direct link between employee NPS and customer
loyalty. What mattered most to them was the communication.
the impact of employee engagement on performance | 13
16. Understanding the Service-Profit Chain
The service-profit chain establishes relationships between profitability, customer loyalty, and employee
satisfaction, loyalty, and productivity. The links in the chain (which should be regarded as propositions) are as
follows: Profit and growth are stimulated primarily by customer loyalty. Loyalty is a direct result of customer
satisfaction. Satisfaction is largely influenced by the value of services provided to customers. Value is created
by satisfied, loyal, and productive employees. Employee satisfaction, in turn, results primarily from highquality support services and policies that enable employees to deliver results to customers.
See the exhibit The Links in the Service-Profit Chain
The service-profit chain is also defined by a special kind of leadership. CEOs of exemplary service companies
emphasize the importance of each employee and customer.
The Links in the Service-ProïŹt Chain
Operating Strategy and
Service Delivery System
Revenue
Growth
Employee
Retention
Internal
Service
Quality
External
Service
Value
Employee
Satisfaction
Employee
Productivity
â Ș workplace design
â Ș job design
Customer
Satisfaction
ProïŹtability
service concept:
results for customers
â Ș
â Ș retention
â Ș repeat business
â Ș referral
â Ș employee selection
and development
â Ș employee rewards
and recognition
â Ș tools for serving customers
Customer
Loyalty
â Ș
service designed and delivered to meet
targeted customersâ needs
Reprinted with permission from Harvard Business Review, July 2008 article, âPutting the Service-Profit
Chain to Workâ by James L. Heskett, Thomas O. Jones, Gary W. Loveman, W. Earl Sasser, Jr., and Leonard A.
Schlesinger.
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17. Conclusion
While there is still much work to be done to improve employee engagement, some common practices and
cultural norms emerged among high prioritizers surveyed and interviewed for this study. Business objectives and strategy were clearly communicated via multiple channels and reinforced by line managers;
performance metrics were clearly tied to business goals; benchmarking was widely used both inside and
outside companies and industries; employees were given a fair degree of responsibility and asked to work
creatively to solve problems; formal recognition programs were in place to reward top performance; and
there was a decent amount of autonomy, where many decisions could be made on the individual team
level versus at headquarters.
The most common measurements best-practice companies are using to connect engagement to business
performance were those that tied customer metrics with engagement metrics. Specifically, a number of
best-practice companies interviewed found NPS and the service-profit chain to be powerful tools to link
engagement initiatives with business goals.
the impact of employee engagement on performance | 15
18. Sponsorâs Perspective
Theyâre Not EmployeesâTheyâre Achievers
Without exception, at the foundation of every successful business are engaged employees.
When employees are engaged in the business they are not only aligned with business objectives,
they are recognized âin the momentâ when they achieve important workplace milestones and
objectives. Engaged employees work harder; are more productive; and most important, feel
successful. Employee success and business success are inextricably linked. Yet most companies
lack formalized, structured, and transparent programs that continually drive employee
recognition and engagement in a fluid workplace.
As the business environment becomes increasingly competitive, employees will have more
choices. If they are not engaged in the business, they will leaveâespecially a companyâs
A-players. Thatâs why we are so passionate about our mission to âchange the way the world
worksâ and why we partnered with Harvard Business Review Analytic Services to understand the
connection between engagement, customer happiness, and business success.
Achievers provides companies with an extraordinary Employee Success platform that creates
a social, collaborative environment for managers and employees inspiring dramatically higher
employee engagement and performance. Employees are recognized âin the moment.â
Managers have the ability to praise, probe, and coach âin the moment.â The result is a higher level
of employee engagement, company-wideâan environment where employees become achievers.
Learn more about how Achievers can inspire Employee Successâą in your company at
www.achievers.com.
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19.
20. For more information on
harvard business review analytic services:
hbr.org/hbr-analytic-services