This document discusses lessons on employee engagement from global organizations. It summarizes research showing that engaged employees are more profitable, productive, and loyal. Engagement leads to higher quality, fewer defects, and less absenteeism. Recognition is an important driver of engagement. The document provides tips for managers to improve engagement through clear expectations, feedback, and caring about employees. It also outlines proven strategies for engagement including appreciation, communication, trust, pride in one's work, and opportunities for growth. Global case studies show consistent benefits of engagement initiatives.

1. Engagement Done Right:
Lessons from Global Organizations
Michelle M. Smith, CPIM, CRP
O.C. Tanner

2. Michelle M. Smith, CPIM, CRP
Named as one of the Ten Best
and Brightest Women in the
Incentive Industry, Michelle is a
highly rated international speaker,
writer, and consultant. She is a
respected authority on human
capital management, internal
branding, and engagement who
has published and presented more
than 475 articles and lectures.

3. Global
Research
Case The
Studies Issues
Engagement
How- Key
To’s Drivers

4. Engagement » Quality » Productivity
 16% more profitable
 18% higher earnings
 18% more productive
 2.6 times higher growth
 37% less absenteeism
 60% less quality defects

5. Engagement » Quality » Productivity
 51% less employee theft
 12% better with customers
 41% fewer patient incidents
 62% less likely to be involved in an accident
 51% less likely to leave (low turnover organizations)
 31% less likely to leave (high turnover organizations)

6. Engaged Customers
23% – 70% – 240%
Internal Brand Alignment 3x – 6x

7. Significant Employee Unrest

8. Employee Discontent
Top performers most unhappy;
intend to change jobs
60% 21% 81%

9. Effectiveness of HR Initiatives
Total Rewards & Accountability and Value Creation 16.5%
Collegial, Flexible Workplace and Value Creation 9.0%
Recruiting & Retention Excellence and Value Creation 7.9%
Communications Integrity and Value Creation 7.1%
Focused HR Service Technologies and Value Creation 6.5%
- 33.9% Prudent Use of Resources
Superior Human Capital practices are a
leading indicator of financial performance

10. Recognition Ignites Engagement

11. Engagement’s Impact on Growth
with
engagement
without
engagement
A 15% improvement in engagement equates
to a 2% improvement in operating margin

12. The Challenge with New Hires
4% 65%

13. Impact of On-boarding Programs
100
100
90
80
+60%
Revenue per FTE
70 60
60 57
50
40
30
+63%
Customer Satisfaction
19 23
20
10 7 4
0 2 Best-in-class
0
Improved Time to Completion Average
Retention Productivity Rates: Tasks Laggard

14. Most Successful On-Boarding Activities

15. Wellness Programs
 Health care costs
per employee have
risen over 40% in
the last 5 years
 If food prices rose
at the same levels…
 Dozen eggs = $80
 1 lb. Butter = $102

16. Wellness Programs
 50-87% of health care
costs are believed to
be lifestyle-related
 Each $1 invested saved
$3.48 - $5.82 in health
care costs
 Reduced absenteeism 28%;
worker’s comp 30%; and
health care costs 26%

17. Safety Programs
 Workplace injury costs ($164.7 B)
exceeded the combined profits
of the ‘Fortune 11’ in 2009
 2010 costs = $225.8 B
or $1,685/employee
 37% increase in 1 year
 OSHA targeting Texas;
construction and
chemical industries

18. Perception Gap?
Percent of management and employee groups
who say their company is above average at
appreciating good work:
Senior management
Middle management
Staff

19. Actionable Ideas & How-To’s

20. Managers Play a Key Role
 Only 1 in 5 employees know
their job expectations
 25% are extremely unclear
 1 of 3 employees feel miscast
 10% get progress feedback
 Half get no feedback at all
 Half do not feel cared for
 Complimented = 1% disengagement
 Criticized = 22% disengagement
 Ignored = 40% disengagement

21. Training Managers Improves
Quality & Productivity

22. Opportunity
& Well-Being
Trust Engagement
Pride in
Organization

23. Consistent Impact Globally

24. Opportunity
Appreciation & Well-Being
Communication Trust Engagement
Pride in
Alignment
Organization

25. Opportunity
and
Well-Being
weak strong
weak strong
engagement

26. Opportunity adding
and appreciation
Well-Being
weak strong
weak strong
engagement

27. Trust
weak strong
weak strong
engagement

28. Trust adding
appreciation
weak strong
weak strong
engagement

29. Company
Pride
weak strong
weak
weak strong
strong
engagement

30. Company
adding
Pride appreciation
weak strong
weak strong
engagement

31. Proven, Quick, Easy, Low Cost & Free Ways
to Engage Staff
 My opinions seem to count.
 I have a best friend at work.
 In the last 7 days, I have
received recognition or
praise for doing good work.
 I know what is expected of me.
 My supervisor seems to care
about me as a person.
 There is someone at work who encourages my development.
 My company’s purpose makes me feel my job is important
 This last year, someone has talked to me about my progress.
 This last year, I have had opportunities to learn and grow.

32. The Recognition Spectrum™
Alignment & Reinforcement Impact & Reach
“Recognizing what matters most” “Recognizing people the right way”
Incentives Less frequent,
More frequent, less more formal,
formal, general criteria specific criteria
Thank you notes, Above and beyond, Safety, ideas, Sales, wellness, Milestone awards,
e-cards, verbal, living the values performance attendance President’s award,
on-the-spot management onboarding, events
Initiated by a person taking some action Initiated by passage of specific timeline
to recognize (fosters relationship building) or achievement of a specific metric
(reinforces performance oriented culture)
Enabling Strategies
Technology Training Communication Measurement
Assessment / Solution Design / Management

33. Further questions can be addressed to:
Michelle.Smith@OCTanner.com
Thank You!

34. Michelle M. Smith, CPIM, CRP
Named as one of the Ten Best and Brightest Women
in the Incentive Industry and a President’s Award
winner, Michelle has worked in every facet of
recognition and incentives, both domestically and
internationally. A highly rated international speaker,
writer, and consultant on performance improvement;
Michelle is a respected authority on human capital
management, internal branding, and engagement.
She’s published and presented more than 475 articles
and lectures and has advised many of the world’s
most successful organizations and the governments
of the United Kingdom and the United States on how
to optimize their performance improvement initiatives
to gain maximum return on investment.
Michelle is the Past President of the Board of Trustees of the Forum for People
Performance at Northwestern University and active in the Global Incentive Council, the
Business Marketing Association, the Society of Incentive & Travel Executives, and serves
on the Board of Directors for Recognition Professionals International. Michelle is also
President Emeritus of the Incentive Marketing Association, on the Board of Directors of the
Incentive Federation, the Conference Advisory Board for the Motivation Show, and the
Board of Directors of the Recognition Council. She is also a member of the Editorial Board
for Return on Performance Magazine, the Performance Improvement Council,
WorldAtWork, the Corporate Executive Board and McKinsey Quarterly’s Executive Panel.