Employee engagement

Guide

Global Human Resources

June 2014

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On the agenda

Why engagement is key and How we measure engagement ?

How can we better drive Employee Engagement ?

Why employee engagement is key

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Engagement and High Performance

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There is a proven correlation between Engagement and productivity and increased efficiency.

Research shows that engaged employees are more profitable, customer-focused, safer and less likely to leave the organisation.

Conversely, actively disengaged employees erode the organisation’s bottom line, breaking the spirits of colleagues in the process.

Why measuring Engagement ?

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Strong Employee Engagement is good for the employees, customers and the organisation.Highly engaged organisations report• Better business results• Higher retention• Higher levels of customer

satisfaction• Higher levels of safety

Engagement definition

Engagement is the state of emotional and intellectual involvement and commitment that leads people to do their best work.

We see engagement when people:

SaySay Stay

SayStay

SayStrive

Consistently speak positively about the

organization to coworkers, potential

employees, and customers

Have an intense desire to be part of the

organization

Exert extra effort and engage in behaviors

that contribute to business success

StriveStay

The « One Voice » model in details

14 questions for simple and easy to use answers

1. I would not hesitate to recommend Schneider Electric to a friend seeking employment2. Given the opportunity, I tell others great things about working here3. I rarely think about leaving Schneider Electric to work somewhere else4. It would take a lot to get me to leave Schneider Electric5. Schneider Electric motivates me to contribute more than is normally required to complete my work6. Schneider Electric inspires me to do my best work every day

7. My manager gives me feedback that helps me improve my performance8. My coworkers respect my thoughts and feelings9. I think that the cooperation between inter departments is going well10. I have appropriate opportunities for personal and professional growth11. I understand how my work goals relate to Schneider Electric ’s goals12. The balance between my work and personal commitments is right for me

13. How likely is it that you would recommend Schneider Electric to one of your friends as a good place to work?

14. Are you aware of action plans in your organization, linked to One Voice ?

Adhésion

Action

Employee Engagement IndexAon Hewitt model

Engagement driversChosen by Schneider Electric

RecommendationChosen by SE / same as

customer satisfaction

Awareness of action plans

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OneVoice by numbers

100% of employees surveyed

2x a year.

69 % participation rate overall Year 2013 (W1&W2)

2 500 managers reports* each wave

OneVoice Wave 1- 2014: Main insights

> The 3 main indicators are in progress

> The focus on the action plans has a very high impact of engagement. By implementing action plan after survey , we are demonstrating that we listen to our employee and this is a strong lever to drive engagement. Managers and HR have done a very good job!!

> Efforts should be maintained to achieve our target 63% of Employee Engagement> .

> All drivers are in progress as well > highest progress for collaboration, worklife balance

development

Global results

Entity results For ManagersGlobal Results – 2014 Wave 1

Email & Kiosk Respondents

Wave 1 2014

Target 2014

Comments

Employee Engagement Index

61%

63% On course to meet target

Recommendation score (ENPS) 29 26

Exceeded target if we maintain this level next wave

Action Plan Awareness

77%

80%On course to meet Connect objective of

80% for end of 2014

A great result! A strong effort from entities and managers to achieve

this! 11

Inclusion : 72% of employees feel their opinion is taken into account (74% in 2013)

Vision: 70% of employees say they have a clear vision of the link between what is expected from them and the company’s strategy (70% in 2013)

Empowerment: 64% of employees feel that their manager give them enough feedback to improve their performance (62% in 2013)

Worklife balance: 62% of employees think that the balance between work and personal commitment is right (56% in 2013)

Development : 55% of employees perceive that they have enough support for their development (53% in 2013)

Collaboration : 47% of employees feel that collaboration is going well between teams and entities (37% in 2013)

EngagementEngagement

One Voice Wave 1 2014 by drivers

Important drivers in progress: worklife balance , collaboration and developpement ! Let’s maintain and improve !

How can we better drive engagement ?

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People Engagement ,a key factor of success for our

Business challenges

The main objective is to engage leaders,

managers, human resources

to discuss OneVoice survey results

with teams, set-up action plans, and follow

up the progress.

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As managers, How can you leverage your OneVoice results?

Use the One Voice Results as a key opportunity

to listen your team. Organise

a dedicated session,

at least once a year, to take time to open discussion with

team and get qualitative feedback to build relevant

action plan.

> Assuming what engaged or disengaged people is a common “error”.

> One Voice feedback session is for teams , what the individual annuel interview is is for individuals: opportunity to dialogue and share actions to improve.

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Jean Pascal Tricoire

Chairman & CEO

What key findings* for PEOPLE Engagement ?

*based on external researches

Click icon to add pictureCONNEXION˃ Employees want to have a personal connection

to leaders and co-workers. ˃ Through visibility of Leaders & dialogue ˃ Transparency in what is changing.

CAREER˃ Consistent need for a clear career path for the

company to keep key talents.

CAPABILITY and DEVELOPMENT˃ Increase of Employees’ need for skill building

and development

CONTROL in a period of changes˃ Employees almost always have some loss of

control with change events. ˃ Need for employees to feel involved and part of

the process.

By giving the opportunity to all employees to give feedbacks through Employee survey

to their Company and managers,

we have a key responsibility: Taking into account employees

feedbacks

Moving from data to action

WHAT

Survey results indicate WHAT employees are

thinking

WHY

Feedback meetings clarify WHY they feel

the way they do

HOW

Both are necessary to determine HOW an

organisation should respond

Survey feedback, dialogue with the teams

Action planning

Appendix

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Employee Engagement Index is the percentage of people for which the average on the 6 questions is equal or higher than 4.5

Strongly disagree Disagree Slightly

disagreeSlightly agree Agree Strongly

agree

1 2 3 4 5 6

Engagement is determined by averaging an individual’s response to each of the six

Engagement questions (around ‘Say’, ‘Stay’ and ‘Strive’) based on a six–point scale with no ‘neutral’ option, as below

How do we calculate Employee Engagement Index?

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What is ENPS and how is it calculated?> It is the ‘Employee Net Promoter Score (ENPS)> ENPS is a standard metric used by many companies all around the world.> It is a % based on employees responses to just this question

> How likely is it that you would recommend Schneider Electric to one of your friends as a good place to work? (Scale from 0 to 10)

> If an employee answers between 0-6 – they are a detractor. If they answer between 7-8 – they are passive. If they answer between 9-10 – they are a Promoter!

> At the end of the survey we count the total % of Promoters and we subtract the total % of Detractors. The number left is the ENPS. (Note: Passive employees are not counted at all in the calculation)

Schneider Electric selected definition of employee engagement:“Engagement is the of emotional and

intellectual feeling that a group or organization have.”

Say

Consistently speak positively about the

organization to coworkers, potential

employees, and customers

Have an intense desire to be part of the

organization

Exert extra effort and engage in behaviors that contribute to

business success

Stay Strive

Definition of Employee Engagement

Organisations with a high level of engagement do

report

22% higher productivity

Source: new meta-analysis of 1.4

million employees conducted by the Gallup

Organization

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