Lets Get Engaged Capturing Employees Hearts and Minds

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Lets Get Engaged Capturing Employees Hearts
and Minds

• 2006 WI State SHRM Conference
• October 12, 2006

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Agenda

• What is engagement?
• Why is it significant?
• What are the primary drivers?
• How do we measure engagement?
• How do we promote and foster it?
• Best practice ideas Case studies

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What is Engagement?
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What is Engagement?

• Engagement is defined as
• employees willingness and ability to
• contribute to company success,
• which ultimately comes down to
• peoples desire to invest that extra level
• of discretionary effort that
• separates outstanding performers
• from the rest of the pack.

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What is Engagement?

• Rational
• Understanding how the unit/department contributes
  to company success
• Understanding how their role relates to company
  goals and objectives
• Being personally motivated to help the company
  succeed
• Being willing to put in a great deal of effort
  beyond what is normally expected

• Emotional
• Really caring about the future of the company
• Being proud to work for the company
• Having a sense of personal accomplishment from
  the job
• Saying that the company is a good place to work
• Saying that the company inspires them to do their
  best work

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What is Engagement?

• The three types of employees
• Engaged work with passion and feel a profound
  connection to their company. They drive
  innovation and move the organization forward.
• Not-engaged checked out. Theyre
  sleepwalking through their workday, putting time
  but not energy or passion into their work.
• Actively disengaged arent just unhappy at
  work theyre busy acting out their unhappiness.
  Every day, these workers undermine what their
  engaged co-workers accomplish.

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Engagement Not Improving

• According to a 2005 Gallup Poll
• 29 of the US workforce is engaged,
• 55 not engaged
• 16 actively disengaged.

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Engagement Not Improving

• According to Gallups research by the time
  employees have been with an organization for six
  months, less than 40 are engaged.
• The longer an employee stays with an organization
  the lower their engagement gets, until only 20
  are engaged after 10 years of service.

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Engagement Not Improving

• Slightly more than three-quarters of currently
  employed respondents reported either active or
  passive job searching.
• A recent Gallup report in USA Today states that
  only 49 of senior executives are engaged.

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Engagement Not Improving

• What is most damaging to the organization is
  those who quit and stay, emotionally switched
  off, or not-engaged.

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Significance of Engagement
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Significance of Engagement on Organizational
Performance

• Morale
• Productivity
• Bottom Line

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Significance of Engagement

• A recent survey of business executives found that
  72 of these leaders consider employee engagement
  to be critically important to the competitive
  success of their companies.

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Significance of Engagement

• A satisfied workforce . . .
• is productive
• has low rates of absenteeism and turnover
• is committed to the organization and their role
• expends discretionary effort,
• is emotionally connected to the organization
• accepts accountability

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Significance of Engagement

• The more highly engaged employees are the more
  likely they will
• Care about customer satisfaction
• Have the ability to meet customer needs
• Build customer loyalty and retention
• Adapt to market changes
• Strengthen business relationships

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Significance of Engagement

• In banking, a 5 increase in customer loyalty
  could produce profitability increases from 25 to
  85.
• Taco Bell observed that the 20 of stores with
  the highest employee retention rates enjoyed
  double the sales and 55 higher profits than the
  20 of stores with the lowest employee retention
  rates.

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Significance of Engagement

• One-third of the workforce is actively looking or
  prepared to move to another job.
• 41 are not actively looking, but would listen if
  someone contacted them
• 25 are not actively looking and would not
  consider changing jobs.
• 75 of employees may leave given the chance!

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Significance of Engagement

• Gallups 2005 Q3 survey found that, of all U.S.
  workers 18 or older, about 23.3 million or
  roughly 17 are actively disengaged.
• Gallup estimates that the lower productivity of
  actively disengaged workers costs the U.S.
  economy about 370 billion annually.

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Significance of Engagement

• Companies with engagement levels above their
  industry sectors average outperform their peer
  group, on aggregate, by 17 percent in terms of
  operating margin.
• In 2004, share prices of organizations with
  highly engaged employees rose by an average of
  16 compared with an industry average of 6.

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Drivers of Engagement
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Group Activity

• Reflect back to a time when you had a great
• boss.
• What behaviors or attributes did you see?
• How did they make you feel?
• What was your level of engagement?

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Drivers of Engagement

• Three key goals of people at work
• Equity
• Achievement
• Camaraderie

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Drivers of Engagement

• According to Towers Perrin, six workplace
  elements for engagement include
• Strong leadership
• Personal accountability
• Autonomy
• Sense of control over ones environment
• Sense of shared destiny
• Opportunities for development and advancement

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Drivers of Engagement

• According to Mercer, the key drivers to
  engagement include
• Employee confidence
• Degree of teamwork
• Type of work
• Challenges
• Commitment to quality
• Continuous learning

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Drivers of Engagement

• I dont have opportunities to grow or advance
• I dont like my work and it doesnt make the
  most of my talents
• I dont like working for my manager
• (Blessing White)

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Drivers of Engagement
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Drivers of Engagement

• What would most improve your job satisfaction?
• More opportunities to do what I do best
• Career development opportunities
• Greater clarity about what the organization needs
  me to do and why
• More challenging work

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Drivers of Engagement
According to BlessingWhite, a majority of
employees feel that their managers recognize and
encourage them to use their talents.

• Recognizes my talent and encourages me to use
  them as much as possible
• Staying 67,
• Might stay 33,
• Definitely leaving 9

• Doesnt know what I do well
• Staying 3,
• Might stay 15,
• Definitely leaving 43

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What Can Managers Do?

• Build a strong partnership with each team member
• Recognize the power of intrinsic motivators
• Put conversation above communication
• Remember that feedback is a gift
• Be wary of demographic trends

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Recognizing, Measuring, and Understanding
Engagement
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Recognizing, Measuring, and Understanding
Engagement

• Assessing the engagement of a worker, or a
• workforce, requires measuring five important
• characteristics
• Satisfaction
• Understanding
• Contribution
• Alignment
• Retention

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Recognizing, Measuring, and Understanding
Engagement

• Strong indicators of an engaged employee
• include
• Assuming responsibility beyond their role
• Helping team members work towards a common goal
• Generating new ideas
• Speaking positively about the organization and
  its products/services
• Accepting accountability for actions, behaviors
  and performance level

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Recognizing, Measuring, and Understanding
Engagement

• Engaged employees have been shown to be
• higher performers and more loyal to the
  organization
• through behaviors that revolve around
• An effort to be innovative and creative
• A personal responsibility to make things happen
• A desire to contribute to the success of the
  company
• An emotional bond to the organization, its
  mission and vision.

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Fostering Growing Engagement
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Group Activity

• Describe some best practices within your own
  organization that helps foster or drive employee
  engagement

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Case Studies

• Harley Davison
• Harrahs
• New Century Financial Corp.

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Harley-Davidson
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Harrahs
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New Century Financial
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Fostering Growing Engagement

• What should employers do?

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Fostering Growing Engagement

• Top Ten Ways to Positively Influence Employee
• Engagement
• Rewards and recognition
• Human capital infrastructure
• Learning management
• Knowledge management
• Performance appraisal
• Workplace design
• Employee relations
• Career development
• Human capital strategy
• Recruiting

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10 Ways to Demotivate Employees

• Dont provide a vision
• Saying things once
• Dont hold employees accountable
• Try to improve peoples weaknesses
• Dont give employees enough room or give them too
  much room.
• Change goals and direction informally, and never
  make it official.
• Reward the wrong things, and dont reward the
  right things.
• Ignore two laws of nature The 80/20 Rule and
  the Law of Focus
• Keep people in the wrong jobs.
• Dont spend enough one-on-one time with employees

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Fostering Growing Engagement

• Managements sins are mainly acts of omission
• what management does not do rather than
• commission, such as abuse. But indifferent
• treatment, such as failing to recognize and
• reward employees for jobs well done, has an
• enormous impact on how employees feel, and
• employers ability to retain them.

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A Carrot a Day

• Research showing that 88
• of North American workers
• cite lack of acknowledgement
• as their top work issue,
• while 79 leave due to a
• lack of appreciation.

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A Carrot a Day

• While a fair compensation and benefits package
• is absolutely essential to getting employees
• through the door, its recognition and
• appreciation that get them engaged. And
• engaged, appreciated workers are more
• productive.

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Fostering Growing Engagement

• There is likely to be further customization of
  benefits to meet the diverse needs of the
  changing workforce.
• Employee engagement strategies will be critical
  to making employees feel part of the
  decision-making process, particularly in work
  redesign.
• Increasing the awareness of the link between
  employees performance and an organizations
  business goals will positively impact employee
  engagement.

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Presenter Information

• Belinda Weber, SPHR, CCP bwebe2_at_amfam.com
• Organization Effectiveness Consultant
• American Family Insurance
• 6000 American Parkway
• Madison, WI 53783
• [phone] ext 30574
• Kevin Peternel, SPHR kpeternel_at_hrgroup.com
• Vice President and Principal
• Human Resources Group, Inc.
• 2912 Marketplace Drive, Suite 105
• Madison, WI 53719
• [phone]
• www.hrgroup.com

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Thank You for Attending