engagement 2.0
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Employee Engagement
Where Have We Been? Where are We Going?
Lewis GarradManaging Director, Sirota Consulting
16%Difference in stock performance of a highly engaged company vs. their matched comparisons
25 years
…since the term “employee engagement” was coined
7,261
Employee engagement related books on Amazon.com
1 in 5Proportion of disengaged people in the global workplace
• Founded in 1972 by a team of organisational psychologists
• We survey 1-1.5 million employees every year in companies like these:
WE HELP FIND PEOPLE
SOLUTIONS TO BUSINESS CHALLENGES
1
EMPLOYEE ENGAGEMENT
: WHAT IS IT?
Employee engagement is the extent to which employees think, feel, and act in ways that represent high levels of commitment to their organization.
2Engaged employees are motivated to contribute 100% of their knowledge, skills, and abilities to help their organization succeed.
3Engagement is not merely about making employees happier at work; it is about bringing out the best in people and tapping their full potential on a day‐to‐day basis.
We’re Living in the Era of Employee Engagement
Top Challenge for CEOs
Human Capital: Attracting, retaining, engaging employees
An Abundance of Advice Exists
7,261+ employee engagement related books on Amazon.com
Spending is on the Rise
Employers are investing millions annually on Engagement Programs
18th Century 19th Century 20th Century 21st Century
IndustrialAge
Efficiency
KnowledgeAge
Analysis&
Computing
ConceptualAge
Synthesis&
Sense making
AgriculturalAge
Manpower
ServiceAge
Connection&
Empathy
Adapted from Daniel Pink’s Whole New Mind
Volatility
Uncertainty
Complexity
Ambiguity
Perhaps because Engagement speaks to our challenges
Disruptive
2008 2009 2010 2011 2012 2013 201460
75
9089
77
81 78 76
61 64
Rate XYZ on Being Responsive to Customers
2008 2009 2010 2011 2012 2013 201465
75
85
7779
7674
79
74
69
I Understand my Company’s Business Strategy
2008 2009 2010 2011 2012 2013 201465
75
85
75
68 69 67 6669 69
I Have the Opportunity to Learn and Grow
2008 2009 2010 2011 2012 2013 201450
70
90
5569
74
80 7984 85
XYZ is Knowledgeable About Customer Needs
About performance?
About leadership?
About managers?
About employees?
So what have we learnt over the last 25 years?
EfficiencyInnovationCustomer ServiceSales PerformanceTurnoverTeam PerformanceStock Prices
Employees’ satisfaction ratings explained 22% of the difference in turnover.
Customer focused retail stores demonstrated a 10% greater year over year sales increase.
Stock prices in high morale companies increased 16% in one year. Low morale companies only increased 3% in the same year.
An increase in employee attitudes was linked to 28 million dollars in revenue due to increased customer satisfaction.
Engaged steel mill employees required 34% fewer labor hours to produce a ton of steel.
National Weather Service meteorologists working on highly engaged teams were more accurate at predicting tornadoes.
Financial services employees who felt supported by their bosses were significantly more intellectually invested in their work.
40% Leadership & Mgmt Behaviour/
Style
30% Organisational Factors
30% Individual Employee Factors
How is Engagement influenced?
Leaders
Managers
Engagement Performance
About 15% of Engagement is related to this
About 25% of Engagement is related to this
We know that leaders are critical
“This company is a great place to work. It’s meaningful and
I’m proud of it”
“I am motivated to do whatever it takes
, every day”
Individual Fit & Fulfillment
• Company cares about me, I fit in• What I do matters (job itself matters, sense of
challenge and achievement)• I have a future with a company that has a
future (career and development opportunity)
Senior Leadership
Fosters climate of . . .• Company as a “winner”
with positive future• Great “deal” for employees
(relationship with the company, roles, future)
Local Management
Fosters climate of . . . • Partnership and trust, “we’re in
this together”• Openness, involvement• Higher performance
(expectations, feedback)
Analysis of 68 companies varying in size and global scale
What? Who?
Effectively Functioning Teams
• Openly discuss barriers to effectiveness, make improvements
• Do whatever it takes, “there for each other” as a team
• Higher performing (if no extra-team barriers)
But we need to be clear about roles
Employee EQ Employee Engagement
Employee Performance
Manager EQ Manager Engagement
Manager Performance
Multinational Hospitality Group: N=1034, 245 Managers, 799 Employees. 9 month time frame
30 Day 90 Day 180 Day 365 Day60
65
70
75
80
85
90
95 91
86
7675
Motivated to go above and beyond
We need to stop de-motivating them
We need to stop trying to motivate people
Leaders know how to build a culture of employee engagement.
Good job of taking action on our employee engagement data.
EE program has had positive impacts on business outcomes.
Leaders understand the role they play in improving engagement and performance.
Leaders work hard to create an environment of employee engagement.
Effective at measuring employee engagement.
Effective at analyzing our employee engagement data.
Effective job making the business case for engagement.
Snr leaders: engagement to be a key business driver and performance indicator.
Snr leadership: recognizes the value of employee engagement.
50
52
59
61
65
71
71
73
79
90
%Favorable
Research with The Engagement Institute
Where is the impact?
Even after all this time, only half feel they
know how to act on the data
70%
30
64%
48
52%48 43%48
Managers Individual Contributors
I believe the results of this survey will be used constructively by management.
The results of the last employee survey were used constructively by management.
Focus on performanceDevelop Engaging leadersBuild Engaging CulturesMake better use of the data
So what needs to happen?
Archite
ct Enable
Elevate Unlock
First, engagement isn’t an end in itself
TOOLS & RESOURCES
INNOVATIVE TEAMS
EXCELLENT PROCESSES
CLEAR STRATEGY
CLEAR GOALS
ACCOUNTABILITY
ENGAGED
COMMITTED
ENTHUSIASTIC
STRONG VALUES
POSITIVE MANAGEMENT BEHAVIOURS
Performance
Strategy
Employees
Managers
Leadership
Second, we need to develop Engaging Leaders
Leader Personality
Decisions and
Behaviors
Climate and Culture
Employee Engagement Performance
How You BehaveHow You Affect Your TeamWho You Are
Competence Competencies Character
Ability to get results
KPIs
Performance Management
KSAs & Behaviors critical to mission
360s and Surveys
Leadership Development
Personality & Values
IndividualAssessments
Selection & Coaching
What makes for an Effective Leader?
Based on George Hollenbeck’s (2009), “Executive Selection—What's Right … and What's Wrong” Industrial Organizational Psychology article
DNA of Engagement: How Organizations Create and Sustain Highly Engaging Cultures
Third, make it happen every day
Alignment
Philosophy
Policies & Practices
Communication
Collaboration
Assessment
Leadership
Business Impact
1. Engagement is a business imperative
2. Engagement is part of accomplishing the mission
3. Engaging employees is part of HR practice decisions
4. Open, transparent, 2-way communication
5. Structure and space that promotes collaboration
6. Regular assessment & feedback
7. Managers empowered to build Engagement
8. Engaged teams are shown to perform better
OnboardingSurveys
EngagementSurveys
ExitSurveys
PerformanceData
• Manager Support at Day 10 Employee Engagement at Day 180
• Non-Financial Rewards in 2010 Engagement Increases in 2011
• Awareness of Career Growth Opportunities 2x Likely to Stay
• 1% Increase in Store Engagement $1,444.29 in quarterly sales
Last, start connecting the dots
What am I saying?Engagement is an important business measure
Over the last 25 years, we have learnt a lot
But many organisations want to see more impact
The next phase is about innovating what we DO rather than what we measure
EE PPerformance
driverLeaders matter
EQ matters Natural motivation
52%48Good job of taking action on our employee engagement data
Performance Data
Culture Leadership
THEENGAGINGLEADER.COM
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http://sg.linkedin.com/in/lewisgarrad/
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