employee engagement, who cares? - strategic hr training and hr
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Employee Engagement, Who Cares?
What Difference Does an Engaged Workforce Make to an Organization and What Leadership Behaviors are Needed?
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Krystin Fakalata
Today’s Moderator
@KrysAtWork
Krystin (Brazie) Fakalata
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Jack Wiley
Today’s Featured Guests
Kieran Colville Executive Director
Kenexa High Performance Institute
Head of Leadership, EMEA Kenexa
Nick Goldberg Head of Leadership, North America
Kenexa
EMPLOYEE ENGAGEMENT
WHO CARES? DR. JACK WILEY, NICK GOLDBERG
& KERIAN COLVILLE
PRESENTATION OBJECTIVES
• Validate the importance of employee engagement and leadership effectiveness as essential parts of an HR strategy
• Convert theoretical research findings into practical advice for fostering employee engagement and leadership effectiveness
EMPLOYEE ENGAGEMENT
EMPLOYEE ENGAGEMENT DEFINED
The extent to which employees are motivated to contribute to organizational success, and are willing to
apply discretionary effort to accomplishing tasks
important to the achievement of organizational goals
EMPLOYEE ENGAGEMENT INDEX
Employee Engagement Index (EEI) is comprised of four items:
• Pride: I am proud to work for my organization.
• Satisfaction: Overall, I am extremely satisfied with my organization as a place to work.
• Advocacy: I would gladly refer a good friend or family member to my organization for employment.
• Commitment: I rarely think about looking for a new job with another organization.
Engaged employees care more, perform better, stay longer
COUNTRY-LEVEL ENGAGEMENT SCORES
BELOW GLOBAL AVERAGE SCORES
• Australia
• South Africa
• Argentina
• Germany
• Russia
• China
LOWER SCORES
• Italy
• United Kingdom
• Finland
• France
• Korea
• Japan
HIGHER SCORES
• Denmark
• India
• The Netherlands
• Brazil
• Mexico
ABOVE GLOBAL AVERAGE SCORES
• United States
• Canada
• Indonesia
• Turkey
• Spain
• Switzerland
• Sweden
ENGAGEMENT DRIVERS
1. Confidence in organization’s future
2. Promising future for one’s self
3. Organization supports work/life balance
4. Contribution is valued
5. Excited about one’s work
6. Opportunity for growth and development
7. Safety is a priority
8. Leadership has communicated a motivating vision
9. Organization’s CR efforts increase overall satisfaction
10. Quality and improvement are top priorities
EMPLOYEES ARE ENGAGED BY:
• Leaders who inspire confidence in the future
• Managers who recognize employees and emphasize quality and improvement as top priorities
• Exciting work and the opportunity to grow and develop
• Organizations that demonstrate a genuine responsibility to their employees and communities
Global macro drivers remarkably stable over time
• These studies document the engagement and business performance relationship
• They are among the first to examine the relationship across industries and countries
EMPLOYEE ENGAGEMENT AND BUSINESS PERFORMANCE
THE IMPORTANCE OF LEADERSHIP
LEADERSHIP EFFECTIVENESS INDEX
Leadership Effectiveness Index (LEI) is comprised of five items:
• Vision: The senior leaders of my organization have communicated a vision of the future that motivates me.
• Ability: Senior management at my company has the ability to deal with the challenges we face.
• People: Senior management demonstrates that employees are important to the success of the company.
• Quality: Senior management is committed to providing high quality products and services to external customers.
• Confidence: I have confidence in my company’s senior leaders.
IMPACT OF LEADERSHIP ON ENGAGEMENT
0
10
20
30
40
50
60
70
80
90
100
EEI Pride Satisfaction Advocacy Commitment
Perc
en
t F
avo
rab
le
Effective Leadership Ineffective Leadership
Copyright Kenexa® High Performance Institute, 2011
PER
CEN
T FA
VO
RA
BLE
EEI PRIDE SATISFACTION ADVOCACY COMMITMENT
10
20
30
40
50
60
70
80
90
100
0
EFFECTIVE LEADERSHIP INEFFECTIVE LEADERSHIP
LEI BY INDUSTRY
High-tech Manufacturing
Banking and Financial Services
Retail Heavy/Light Manufacturing
Healthcare Services
Government
PER
CEN
T FA
VO
RA
BLE
70
60
50
40
30
20
10
0
Copyright Kenexa® High Performance Institute, 2011
LEADERSHIP EFFECTIVENESS AND BUSINESS PERFORMANCE
Recent KHPI research indicates that leadership effectiveness is positively and significantly related to Diluted Earnings Per Share (DEPS) and Total Shareholder Return (TSR)
22 Copyright Kenexa® High Performance Institute, 2011
.
LEADERSHIP EFFECTIVENESS AND CURRENT BUSINESS RESULTS (2009 DEPS)
LEADERSHIP EFFECTIVENESS AND LONGER- TERM BUSINESS RESULTS (3-YEAR TSR)
Global LEI Drivers
1. Trust organization’s leadership
2. Quality and improvement are top priorities
3. Communication is open and two-way
4. Organization serves interests of multiple stakeholders
5. Employees are recognized for outstanding customer service
6. Action taken on new ideas
7. Employees motivated to work hard
8. Confidence in organization’s future
9. Productive employee recognized
10. Performance evaluated fairly
LEI Macro Drivers
Employees describe effective leaders as:
– Inspiring trust and confidence
– Valuing quality and customer service
– Open and communicative
– Holding a multi-stakeholder perspective
– Holding lower-level managers accountable
THAN THOSE RUN BY LESS CAPABLE ONES
“ “ BUSINESSES HEADED BY EFFECTIVE LEADERS MAKE MORE MONEY
-THE SUNDAY TIMES
Standardize Specialize Align goals Hierarchy
Plan Control Comply Reward
TRADITIONAL ORGANIZATION
SIMPLE STABLE
COMFORTABLE
AN OLD MANAGEMENT PARADIGM
CHALLENGING ENVIRONMENT
SIMPLE STABLE
COMFORTABLE
Complex Dynamic Hostile
Innovate Connect
Adapt Engage
Diversity Passion
Personal development Purpose
MODERN ORGANIZATION
Standardize Specialize Align goals Hierarchy
Plan Control Comply Reward
TRADITIONAL ORGANIZATION
A NEW MANAGEMENT PARADIGM
40% OF SUCCESS LEADERSHIP CAN BE ATTRIBUTED TO
…and yet 60% companies are facing
leadership shortages and another 30% expect to in the NEXT 5 YEARS
6 F
AC
ETS
OF
A H
IGH
NATURE
HIGH PERFORMING
LEADER
LEADERSHIP PERSONALITY
LEADERSHIP MOTIVATION
LEADERSHIP CAPABILITIES
LEADERSHIP MINDSET
LEADERSHIP EXPERIENCE
LEADERSHIP INTELLIGENCE
NURTURE
PER
FOR
MIN
G L
EAD
ER
BEHAVIORS VALIDATED HIGH PERFORMANCE
Building Talent
Understanding Others Fostering Collaboration
Developing People
Value diversity Listen to others
Create trust Build relationships
Develop people Promote teamwork
Influencing Others Building Confidence Communicating with
Impact
Give direction Create clarity
Build confidence Inspire others Decide swiftly Get support
Inspiring People
Achieving Performance
Making things Happen Measuring Success Building Customer
Value
Great execution Make things happen
Empower others Drive change
Customer value Pursue excellence
LEADERSHIP CAPABILITY:
Creating Strategy
Searching for Information
Creating Ideas Flexible Thinking
Seek information Make sense of chaos
Create ideas Develop strategy Foster innovation Handle ambiguity
HIGH PERFORMANCE BEHAVIOR
High Performance Benchmark
0
2
4
6
8
10
12
14
Hig
h P
erfo
rman
ce B
ehav
ior
Sco
re
Well understood and developed Undervalued and underdeveloped
OVERALL SCORES
MACRO ENGAGEMENT DRIVERS
GLOBAL ENGAGEMENT DRIVERS
Leaders Who Inspire Confidence
in the Future
Confidence in Organization’s Future
Motivating Vision of the Future
Promising Future for Me
Exciting Work and the Opportunity to Grow
and Develop
Excited About Work
Opportunity for Development
Organizations that Demonstrate a
Genuine Responsibility to Their Employees and Communities
Safety is a Priority
Organization Supports Work/Life Balance
CSR Efforts Increase Satisfaction
Managers Who Recognize Employees
and Emphasize Quality and Improvement
HPB
Building confidence
Creating ideas
Communicating with impact
Searching for information
Developing people
Influencing others
Flexible thinking
Making things happen
All 12 behaviors combined will impact positively on these drivers
Measuring success
Building customer value
Fostering collaboration
Understanding others
Organization Values Contribution
Quality and Improvement are Top Priorities
LEADERS WHO
INSPIRE CONFIDENCE
IN THE FUTURE
MOTIVATING VISION
OF THE FUTURE
“Clear definition of goals” “Compel the actions of others through a motivating vision”
“Truthfulness from managers and leaders” “Open communication and transparency”
CONFIDENCE IN ORGANIZATION’S
FUTURE
PROMISING FUTURE FOR ME
BUILDING CONFIDENCE
CREATING IDEAS
COMMUNICATING WITH IMPACT
SEARCHING FOR INFORMATION
Managers Who Recognize
Employees and Emphasize Quality and
Improvement
Organization Values
Contribution
Quality and Improvement
are Top Priorities
Measuring success
Building customer
value
Fostering collaboration
Understanding others
“I want to be respected and recognized as a valuable team member” “Recognize the contributions of all employees, not just a few; it would help develop the team
spirit and cooperation that are vital for us to succeed in the current economic climate”
Exciting Work and the
Opportunity to Grow and Develop
Excited About Work
Developing people
Influencing others
Flexible thinking
Making things happen
“I would like to broaden the scope of the work that I do, be a little more creative”
“A challenging job, not the same every day with tasks I can do with my eyes closed”
“Good leadership that is interested in my personal and professional development”
“I want to see the potential for a growth opportunity”
Opportunity for Development
Organizations that
Demonstrate a Genuine
Responsibility to Their
Employees and
Communities
All 12 behaviors
combined will impact
positively on these drivers
Safety is a Priority
Organization Supports Work/Life Balance
CSR Efforts Increase
Satisfaction
DRIVING ENGAGEMENT THROUGH ON TRACK GETTING LEADERSHIP DEVELOPMENT AT NETWORK RAIL
“striving to provide Britain with a safe, reliable and efficient railway fit for the 21st century”
Network Rail
DEF
ININ
G W
HA
T G
OO
D L
OO
KS
LIK
E Th
e N
etw
ork
Rai
l Le
ade
rsh
ip C
apab
ility
Mo
de
l
Making things happen
Tracking performance
Putting the customer first
PEO
PLE
D
EVEL
OP
MEN
T IN
SPIR
ING
P
EOP
LE
THIN
KIN
G
AC
HIE
VIN
G
Searching for information Creating solutions Thinking flexible
Understanding others Building teams
Maximising Potential
Influence others Building confidence
Communicating clearly
1
2 3 THE FOUNDATION – BUILDING SELF AWARENESS
Regular informal performance
conversations and feedback
Effective performance reviews and reward
Managing underperformance
effectively
Motivating higher performance through
development discussions
CORNERSTONE
SET OBJECTIVES
CORNERSTONE CORNERSTONE
GATHER DATA RATE PEOPLE
FOUR PILLARS
3000 BAND 2 - 5 LEADERS 2 DAY WORKSHOP
87 PAY FOR PERFORMANCE LEADERS 2 DAY WORKSHOP
100 HR MANAGERS 2 DAY WORKSHOP
EXECUTIVE GROUP & TOP 100
1 DAY WORKSHOP
-0.10
+0.00
+0.10
+0.20
+0.30
IMPACT ON EMPLOYEE ENGAGEMENT
NATIONAL TRAIN PUNCTUALITY 2000 - 2009
2000/1 2001/2 2002/3 2005/6 2006/7 2007/8
PP
M%
88
86
84
82
80
78
76
74
92
90
2008/9 2003/4 2004/5
RAILTRACK RAILTRACK/NETWORK RAIL NETWORK RAIL
SUCCESSES AND LESSONS LEARNT
ENGAGE
ENABLE
EMBED
EVALUATE
•Senior Sponsorship •Clear, consistent communication and engagement plan •Cascaded from the top via multiple channels
•Focused on the critical skills and capabilities •Targeted all key audiences •Practical learning approach and use of actors
•Leadership toolkits •Internal Champions •Continued communication
•Impact on performance and engagement •Clear tangible business outcomes identified •Evolving evaluation agenda
…but the future is
BRIGHT
Need assistance? Call Member Services (866) 538-1909 or email
Questions?
Jack Wiley Kieran Colville Executive Director
Kenexa High Performance Institute
Head of Leadership, EMEA Kenexa
Nick Goldberg Head of Leadership, North America
Kenexa
Human Capital Institute (HCI)
www.hci.org @human_capital Human Capital Institute
Thank you!