There are four key reasons to improve employee engagement: 1. To raise productivity - Engaged employees are two times more productive than satisfied employees. Improving engagement across a business can significantly increase overall productivity. 2. To reduce turnover - Four out of five employees are dissatisfied with their performance reviews and feedback processes. Improving feedback mechanisms can help reduce turnover by improving the experience for 80% of staff. 3. To improve service - Engaged employees are passionate about their work and will do whatever it takes to deliver great results and find solutions to problems. This leads to improved customer service. 4. To get the most out of all generations of workers - Employee engagement tools and practices should address compliance gaps and manage

1. 4
reasons to improve
employee engagement
by anthony raja devadoss
and Charles Bedard

2. Why worry about
employee engagement?
With all the numbers and statistics that pass So, if you’d like to live in a world where more There are four key reasons to get
across executives’ desks, it’s no wonder the of your employees do all of these things, this engagement right in your organisation:
employee engagement score feels like one paper gives you the tools to make it happen.
drop in a very large ocean. 1 to raise productivity
No matter what your legacy issues may be,
But it’s not. Employee engagement is a or what your employee engagement results 2 to improve service
business measurement like no other. have been in the past, it is possible to create
3 to reduce turnover, and
a highly engaged workforce quickly, easily
‘Engaged’ employees work harder, stay and without disproportionate investment in 4 to get the most out of workers
longer with their organisation and deliver time, money or technology. across all generations.
better customer service. The greater the
proportion of your staff that make it into Engagement is NOT an annual survey. Here’s how to do it.
the ‘engaged’ category, the higher your Engagement is frequent, relevant and
performance is likely to be on almost meaningful feedback and recognition. And
every count. the right tools will deliver exactly this.
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3. 1 raise your productivity
Engaged employees are two times more productive than satisfied employees.
If we know that engaged employees are 2. Look to improve compliance: seek Here’s a snapshot of what the different engagement levels look like in terms of
more productive, and that one in every engagement tools and practices that also employee behaviour, and what they mean for productivity.
three employees is actively disengaged, we address compliance gaps in your current
Average %
know there’s a compelling reason to increase HR and management practices so that Behaviours/attitudes to work
Output per
employees in
employee
organisations
engagement across all areas of a business. low-performing employees are appropriately
and consistently managed. Passionate about their work/ organisation; will do what ever it 122% 10-15%
Making it work: Fully takes to deliver results; feels like a true owner; delivers consistent,
3. Don’t overdo the technology: as we engaged high quality results; finds innovative solutions to the toughest
1. Don’t ignore the lowest performers: all know by now, technology alone cannot problems; seen as a role model and leader
take a workforce solutions approach to replace ‘good’ management. So, if you Selective about where they put their energy; spends a lot of time 75% 30-40%
engagement tools and strategies so that Somewhat doing things that are not helping customers or the organisation;
intend to implement more technology to
engaged delivers when they have to, or when you are watching; does what
the various behaviours of each group of address engagement across the organisation, it takes to get by; a “Master” at distracting others
employees, even those that are highly seek a solution that is fast and easy to Only works when they have to, they really want to be doing 50% 20-30%
disengaged, can be improved. implement, and which aims to support something else; results are NOT meeting the standard; has a
Disengaged
“We”—“They” perspective; negative about the organisation, as
(rather than supersede) the exiting manager-
well as in their interactions with coworkers and customers
employee relationship.
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4. 2 reduce your turnover
Four out of every five employees is dissatisfied with their
performance review and feedback processes.
Most of the reasons people leave they use. Eighty per cent of employees say (not just the goals their manager may have
organisations are solvable. they do not get the feedback they need to given them) and exactly where things are Sustainable engagement segments
across the global workforce
perform, and this is a serious impediment going wrong. This will improve objectivity
It’s often said that employees don’t leave
organisations, they leave managers, and
to engagement. If you can improve the
feedback mechanisms, you can improve the
and ensure high-performers really get the
tools they need even when management is
highly engaged 35%
around one-third of employees say they leave experience of 80% of your staff immediately. lacking.
because of poor line management.
unsupported 22%
2. Beware the warning sign: if you’re
Making it work:
Turnover is often a symptom of deep
1. Make it employee driven: any solution to
already having requests to speed up the on- detached 17%
disengagement between managers and boarding and off-boarding processes in your
successfully reduce turnover must be driven
their staff. Solving this requires more than
by the employee. Many solutions look to add
organisation, and this can’t all be explained disengaged 26%
just great leadership training. It requires the by business growth, consider how you might
tools to the HR toolkit, but do not necessarily address engagement at the same time. Some Source: Towers Watson Global Workforce Study
tools and mechanisms to facilitate a more
provide a solution to empower the employee tools allow you to do both: improve your
productive and helpful relationship between
to succeed. Don’t add a new ‘process’ employee engagement while improving the
managers and their staff.
or technology unless it’s going to help oversight and ease of on-boarding and off-
To reduce turnover, organisations must employees understand exactly how they’re boarding at the same time.
seek to improve the feedback mechanisms performing against the corporate plan/goals
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5. 3 Improve your customer service
Less than 1 in 5 managers is a coach.
Hiring the right person does not mean Many organisations rely upon developing 2. Look for a solution that coaches in
hiring the best person. Often, the difference specialist leadership, development real-time, rather than critiques over the How engagement affects final results
Same-year operating margin:
between an employee that delivers great and training programs, which can meet long term: improvements in customer study of 50 global companies
customer service and one that doesn’t comes some of this need. Yet, organisations service require regular, real-time coaching
down to whether or not they have the right must consider what happens after (or as close as possible). Being told 27.4%
coach. Given how few managers successfully that training or development course is you’ve done something incorrectly is
fulfil this ‘coaching’ role, and that only around complete. How well equipped will the fine, but understanding how and why,
one in every five managers inspires their staff employee’s manager be to coach them to as well as what the result has been for
14.3%
to perform, organisations wanting to improve continue improving their service skills? customer, is far more effective if it takes
9.9%
service capabilities face significant barriers. place while the customer experience
Making it work: is still fresh in the employee’s mind.
Regular, routine communication between
1. Match benefits to psychographics: Low High High
managers and their staff is critical to ensure traditional traditional sustainable
several high-performing companies do this,
they get the feedback and coaching that they engagement engagement engagement
including Intel. One size does not fit all, companies companies companies
need to deliver better service.
so think about different benefit packages
Source: Towers Watson normative database
and incentives for different segments of the
If your managers have not been validated
employee population.
to inspire their staff, what other tools and
programs are being used to achieve this?
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6. 4Engage every employee,
regardless of age or experience level
Millennials will constitute 40-45% of the workforce by 2014.
The foundation of the Millennial employee is not defined by rank or seniority, but by To develop a truly engaged workforce 2. Know what they want: Understand
mind-set is different from that of older what matters to them personally. that includes all generations, what drives individuals first, but be aware of
generations. Generation Y (and all those organisations will need to focus on trends that can be applied more broadly. For
coming after them) have been parented and Given the different expectations and measuring performance, not hours. example, Millennials prefer ongoing rather
educated differently, and the technology that motivations of the four generations that are than periodic feedback. So, performance
may have influenced us all has fundamentally now working together in many organisations, Making it work: management systems should be built to
shaped who they are. Broadly speaking, a 2-D staffing model is no longer good 1. Expect better: stop believing the bad facilitate this without unduly increasing the
Millennials tend to value and expect: enough. If your hiring and management press about younger generations—with administrative burden for managers.
practices do not fit with the demographics the right tools and approach, they can be
• constant feedback 3. Don’t isolate engagement from
and psychographics of today’s workforce how among the most valuable talent you have. other measures: look for a system and/
• connectivity
will you compete for new talent and retain There’s no reason to expect poor results or process that links these critical elements
• self-expression what you›ve already got? from an entire generation of workers, nor together seamlessly: Communication
should it be put down to attitude, age or > Engagement > Performance.
• opportunity and reward
The organization is now flat and social. experience. The right tools and approach
for a job well done
Networks and virtual teams mean that the will deliver results for all generational
Millennials are unlikely to feel that long years way we manage work and workers has mind-sets. It will be flexible but fair.
of effort at any one company in exchange changed. Above all, management needs
for a series of incremental raises and to be adaptable and flexible, yet it still
promotions is pointless. To them, success must be fair.
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7. Our story (what worked for us)
We have been talking with our clients about
the challenges they face with employee Kelly client corporate performance compared to public indexes
engagement for some time. We are always 20%
looking for tools and approaches that help
solve productivity, turnover and service
Kelly 2+ Year
challenges, so we often test solutions on
15% Client Average
ourselves first.
In 2010, we started using the
BullseyeEvalutation system in both Asia- 10%
Pacific and the Americas. This is the
S&P 500
employee engagement and productivity
tool that we rely on to drive results for our
Dow Jones
business, and the numbers here will 5%
Average
show you why.
GDP Average
Performer
0%
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8. references
2012 Global Workforce Study from Towers Watson http://www.towerswatson.com/research/7177 Towers Perrin. See the 2006 report, Ten Steps to Creating an Engaged Workforce:
Towers Perrin Global Workforce Survey. http://www.towersperrin.com/gws
US Census Bureau http://www.census.gov/newsroom/releases/
Towers Perrin. (2008). Employee engagement underpins business transformation. Stamford,
Mercer June 2011 http://www.mercer.com/press-releases/1418665 CT: Author. Accessed online on March 1, 2009 from www.towersperrin.com/tp/getwebcachedoc?
country=gbr&webc=GBR/2008/200807/TP_ISR_July08.pdf
Globoforce 2012 report based on SHRM membership study http://go.globoforce.com/rs/
globoforce/images/SHRMWinter2012Report.PDF 2011 survey of sustainability executives by Green Research. http://greenresearch.com/2011/11/30/
corporate-sustainability-leaders-to-focus-on-employee-engagement-and-supply-chain-in-2012/
The Importance Being Known from BlessingWhite http://www.thesocialworkplace.com/
2012/08/21/the-importance-of-being-known/ US Bureau of Labor Statistics http://www.bls.gov/news.release/jolts.t04.htm
BlessingWhite. (2008). The state of employment engagement – 2008: North American overview. Quote from Terry Stockham (SPHR, GPHR) during “The Future of Work” presentation.
Princeton, NJ: Author. Accessed online on March 1, 2009 from www.blessingwhite.com/ http://www.linkedin.com/pub/terry-stockham/11/8a8/bb2 http://blog.bullseyeevaluation.
EEE__report.asp com/?tag=the-future-of-work
“The Relationship Between Engagement at Work and Organizational Outcomes.” August 2009. A study by Reuters found that 80 percent of workers are dissatisfied with their performance
A 2009 Gallup Inc. study of over 1,000 U.S. based employees shows the impact of different reviews and would like to see them better reflect their real work. http://www.reuters.com/
kinds of feedback on employees. http://gmj.gallup.com/content/124214/driving-engagement- article/2009/04/15/us-usa-workplace-reviews-idUSTRE53D6WV20090415
focusing-strengths.aspx http://www.gallup.com/poll/150383/majority-american-workers-not-
engaged-jobs.aspx The Social Workplace Blog: What is a Disengaged Employee Costing You? http://www.
thesocialworkplace.com/2012/03/06/when-employese-arent-happy-then-the-company-isnt-happy/
“Employee Work Engagement: Best Practices for Employers.” June 2009 Volume 1 Issue 2,
from Research Works, a Partnership for Workplace Mental Health Journal. http://www.concern- http://www.thesocialworkplace.com/2011/08/08/social-knows-employee-engagement-statistics-
eap.com/LinkClick.aspx?fileticket=XTwQrS0tLvQ%3D&tabid=69 august-2011-edition/
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9. About the Authors
Anthony Raja Devadoss is currently the Vice President—APAC with the Outsourcing & Consulting Group of Kelly Services. From
network services, engineering to e-business solutions, Anthony Raja has worked in both India and Malaysia, within technical roles to
the Chief Executive Officer. He has received his Bachelors degree in Science and his MBA in Marketing & Postgraduate Diploma in
Computing. He holds membership in various local and international associations such as the MIM, Human Capital Institute & Association
of Career Professionals International. He is the Head of Policy Enablement & Government Liaison with Outsourcing Malaysia and a
member of the Industry Advisory Board for the Graduate School of Business, UNIRAZAK. He has been recently appointed to the HR
Capacity Building task force by the Ministry of Human Resources, Govt of Malaysia. Anthony is also a member of the HROA APAC
Chapter Board. http://my.linkedin.com/in/anthonyraja http://twitter.com/anthonyraja
Charles BEDARD has extensive knowledge of technology and outsourcing options for today’s business. He serves as a Strategic
Advisor, Chief Strategy Officer, and Global Strategist to B2B technology and outsourcing providers. Previously, Charles served as a
Director for multiple fast-growth companies in BPO, IT, HR/Human Capital/HRO, Technology/Software, and Professional Services. He has
earned his Bachelor of Arts from Southwestern University and his Masters of Business Administration from Texas Christian University.
About KellyOCG
KellyOCG® is the Outsourcing and Consulting Group of workforce solutions provider, Kelly Services, Inc. KellyOCG is a global leader
in innovative talent management solutions in the areas of Recruitment Process Outsourcing (RPO), Business Process Outsourcing
(BPO), Contingent Workforce Outsourcing (CWO), including Independent Contractor Solutions, Human Resources Consulting, Career
Transition and Executive Coaching, and Executive Search.
KellyOCG was named to the International Association of Outsourcing Professionals® 2012 Global Outsourcing 100®
list, an annual ranking of the world’s best outsourcing service providers and advisors.
Further information about KellyOCG may be found at kellyocg.com.
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