What Were Covering

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What Were Covering

• What is human resource engagement?
• Whats its connection with retention and the
  bottom line?
• What drives engagement?
• What differentiates Best Employers from The
  Rest?
• Lessons learned from the Best Employer studies
• Which drivers/work environment factors are most
  critical?
• Suggested actions for organizations seeking to
  improve engagement

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About the Best Employers Studies

• Evolved out of more than 30 years survey work
• including Hewitt original work on Fortune
  Magazine Best 100 Cos to Work For in U.S.
• 7th year for The Globe Mail Report on Business
  Magazine Best 50 Employers in Canada
• 2nd year for joint Queens/Hewitt Best
  Small-to-Medium Employers in Canada (lt400
  employees)
• More than 300 organizations and 75,000 employee
  inputs in database plus..
• Links to Hewitt U.S. and global database
• A key ingredient Studies based on employee views
• Endorsed and validated by Queens School of
  Business

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How important are attraction, retention, and
motivation of key talent in your organization?
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Organization Results Chain
People Work/Values Opportunities
RetentionTalent AttractionProductivity
Work EnvironmentFactors
Employee Engagement
OrganizationalResults
Service DeliveryShareholder ReturnCash
Flow/Growth
Quality of LifeHR ProceduresTotal Rewards
Say-Stay-Strive
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What is Engagement?

• Concept researched and developed over many years
  of hands-on Client work in Canada and around
  the world
• We define in very specific behavioural terms
• Not about happiness, loyalty, satisfaction,
  or positive ratings of workplace conditions
  alone
• A measurable state of emotional and intellectual
  involvement or commitment of the workforce to
  organizational success
• Central determinant of ranking in our Best
  Employers studies
• Strong correlations with business results

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Whats an Engaged Employee?

• An engaged employee is one who willingly
  self-describes him/herself as exhibiting three
  key sets of behaviours
• Best Employersthose with highly engaged
  employeeshave people on board who, according to
  measurements taken
• Speak positively about the organization to
  co-workers, potential employees, and customers
  (We call this the Say element)
• Have an intense desire to be part of the
  organization (We call this the Stay element)
• Exert extra effort and are dedicated to doing the
  very best job possible to contribute to the
  organizations business success (We call this the
  Strive element)

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Why Be a Best Employer?

• There is clear evidence that increasing employee
  engagement leads to improved organizational
  results
• Key findings from the 2005 Best Employers Study

Difference
The BestThe Rest
Financial Measures (last 5 years, 55 publicly
traded participants)
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Process of Disengagement
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Engagement Scores
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Six Key Engagement Questions

• (Say 1)
• I would, without hesitation, highly recommend
  this organization to a friend seeking
  employment
• (Say 2)
• Given the opportunity, I tell others great
  things about working here
• (Stay 1)
• It would take a lot to get me to leave this
  organization
• (Stay 2)
• I hardly ever think about leaving this
  organization to work somewhere else
• (Strive 1)
• This organization inspires me to do my best
  work every day
• (Strive 2)
• This organization motivates me to do more than
  is normally required to complete my work

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Engagement Scores Breakdown

• Positive Perception

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So, what work environment factors are known to
have meaningful impact on engagement?
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Engagement Model Diagram
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Key Work Environment Factors

• Positive Perception

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Zeroing in on Specific Engagement Drivers

• Senior Leadership (Key Survey Item)
• I see strong evidence of effective leadership
  from the leadership/senior team in Canada
• Manager (Key Survey Item)
• My manager (the person you report to) provides
  the support I need to succeed
• Co-workers (Key Survey Item)
• My co-workers respect my thoughts and feelings
• Career Opportunities (Key Survey Item)
• My future career opportunities here look good
• Development Opportunities (Key Survey Item)
• This organization supports the growth and
  development of its employees

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Engagement Driver Scores
Positive Perception
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Zeroing in on Specific Engagement Drivers

• Pay (Key Survey Item)
• My pay is appropriate for the role I have in
  this organization
• Benefits (Key Survey Item)
• My benefits meet my (and my familys) needs
  well
• Recognition (Key Survey Item)
• I receive adequate recognition (beyond
  compensation) for my contributions and/or
  accomplishments
• People Practices (Key Survey Item)
• Our people practices create a positive work
  environment for me
• Performance Management (Key Survey Item)
• The performance review process helps me focus
  my work effort to help this organization achieve
  its goals

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Engagement Driver Scores

• Positive Perception

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Zeroing in on Specific Engagement Drivers

• Intrinsic Motivation (Key Survey Item)
• I get a sense of accomplishment from my work
• Resources (Key Survey Item)
• The work processes we have in place allow me to
  be as productive as possible
• Corporate Citizenship (Key Survey Item)
• I am certain that our business creates
  something that adds value to our community
• Work/Life Balance (Key Survey Item)
• The balance between my work and personal
  commitments is right for me
• Physical Work Environment (Key Survey Item)
• The physical work environment is appropriate
  for the kind of work I do

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Engagement Driver Scores

• Positive Perception

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Which drivers do you work on to improve
engagement?Measuring satisfaction is not
enoughSome drivers have significantly more
impact than others
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Improving Engagement

• Smallest Gaps/Opportunities in Engagement Drive
  Scores
• Percent Difference in Positive Perception

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Improving Engagement

• Moderate Gaps/Opportunities in Engagement Drive
  Scores
• Percent Difference in Positive Perception

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Improving Engagement

• Greatest Gaps/Opportunities in Engagement Drive
  Scores
• Percent Difference in Positive Perception

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Can we get even more specific about
engagement-improving actions and workplace
factors?Drilling deeper into the high-impact
drivers..
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A Closer Look Performance Management

• Positive Perception on Sampling of Key Work
  Experiences

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A Closer Look Development Career Opportunities
Positive Perception
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A Closer Look Sr. Leadership
Positive Perception on Sampling of Key
Behaviours
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A Closer Look Pay
Positive Perception on Sampling of Detailed
Views
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Lessons Learned from Best Employer Studies

• Engagement, retention, and bottom line, in fact
  closely linked
• No single formula or recipe evident for
  maintaining/improving engagement (each
  organization is unique in its own ways)
• Multitude of factors drive engagement
• Selected drivers do broadly appear to have more
  impact than others
• Role of senior leadership
• Handling the HR basics (people practices,
  policies, programs)
• Performance managementgoals-oriented planning
  review
• Sufficiency/quality of opportunities for personal
  learning, growth, and career development
• Areas of least positive perception are not
  necessarily the greatest opportunities to improve
  engagement
• Employee perceptions of their workplace
  experience are realities to them (but may not
  match their leaders perceptions)

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Our Recommendations Guidance

• Measure engagement--take the pulse of the
  organization regularly and periodically in-depth
• Focus on one or two critical issues (drivers and
  sub-drivers) at a time to institute improvements
• Consolidate, reinforce, and maintain strength in
  positively-perceived areas
• Make engagement measurement and improvement a
  corporate priority (not an HR program)
• Pay special attention to senior leadership
  deployment
• Ensure HR people practice basics executed
  consistently and well
• Build quality individual performance planning and
  review processes
• Attend to developmental needs and career
  aspirations of key talent

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• For further information and/or highlights of this
  presentation, contact
• Einar Westerlund
• Queens Centre for Business Venturing
• Queens School of Business
• Email ewesterlund_at_queensu.ca
• Direct Line (Toronto) 416.461.3258
• Toll Free to Kingston 1.877.955.1800

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