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High Performing Workplace Index

B E N C H M A R K R E P O R T

XYZ Company

Thursday, December 8, 2016

C o n f i d e n t i a l

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Table of Contents

P A R T O N E - EXECUTIVE SUMMARY .................................................................... 1

1. L E A D E R S H I P ........................................................................................ 4

2. E M P L O Y E E E X P E R I E N C E S .............................................................. 7

3. I N N O V A T I O N ...................................................................................... 14

4. C U S T O M E R O R I E N T A T I O N ........................................................... 17

5. F A I R N E S S ............................................................................................ 19

6. P R O D U C T I V I T Y ................................................................................. 21

P A R T T W O – FIRM LEVEL MANAGEMENT PRACTICES .......................................... 23

7. Management Practices Benchmarking Results (Australia) ................................... 24

8. Management Practices Benchmark Results (International) ................................. 27

9. Firm Productivity & Financial Performance Benchmark Results ............................ 28

P A R T T H R E E - PUBLIC & PRIVATE SECTOR BENCHMARKS ................................ 29

P A R T FOUR – DEMOGRAPHIC SURVEY INFORMATION .......................................... 32

Age ............................................................................................................... 33

Gender ........................................................................................................... 34

Education ........................................................................................................ 35

Type of Employment ........................................................................................ 36

Management Level ........................................................................................... 37

Tenure ........................................................................................................... 38

Income ........................................................................................................... 39

Background to the High Performing Workplace Index ............................................... 40

1

P A R T O N E - EXECUTIVE SUMMARY

The High Performing Workplace Index

2

E X E C U T I V E S U M M A R Y

How to read your High Performing Workplace Index report:

Well done. Overall, you perform ‘above average’ on the High Performing Workplace

Index. Extra effort and hard work over the next year is required to see you move into

the High Performing Workplace category.

The hexagon chart above shows your overall percentile on the High Performing

Workplace Index. The colours of the 6 individual hexagons indicate your performance in

each area of the High Performing Workplace Index:

You are high performing

Good work

Take notice

Red needs attention

The radar charts on the following pages show your benchmark results against peers in

each area of the High Performing Workplace Index. Whilst overall you are within reach of

becoming high performing, these results indicate there are opportunities for

improvement.

The number of survey responses is 64.

3

Introduction

Your organisation has adopted the High Performing Workplace Index (HPWI) survey as a

tool to support continuous improvement and implementation of its goal to becoming a

high performing organisation. This reflects the high standard your organisation has set

for itself and aligns with your organisation’s objective to be a high performance

organisation.

The HPWI survey adopts an academically validated and multi-disciplinary method and

has been deployed across a range of companies and public sector agencies. Importantly,

the HPWI seeks employees’ perspectives on a range of performance measures, including

productivity, innovation, culture, fairness, leadership and customer service. By

participating in the survey your organisation is benchmarking itself against these

organisations, assessing workplace productivity and its drivers, and identifying strengths

and areas for improvement.

The HPWI survey was implemented within your organisation this year. The online survey

was open to all staff for a period of time and was also widely promoted through your

organisation. Participation in the survey was voluntary and anonymous.

This benchmark report provides an overview of the results generated from

administration of the survey this year. The report covers six domains of organisational

performance:

Leadership

Employee experiences

Innovation

Customer Orientation

Fairness, and

Productivity.

The report also highlights employee perceptions of performance across management

systems and processes that align with high performance.

In consultation with the Senior Executive, and through organisational performance

review processes such as Divisional Planning Days and the Divisional Consultative

Committee, the survey results will inform a range of possible High Performing Workplace

initiatives or actions over the coming year at the Divisional and Branch level.

4

1. L E A D E R S H I P

Meaningfulness Leadership

Leadership is a process whereby one person exerts influence over

another in an attempt to guide and influence activities and

relationships towards shared organisational goals and objectives.

High performing leaders make work meaningful by helping staff

understand how their work fits into the bigger picture. They involve

staff in decision processes, have confidence in staff, provide

autonomy to staff over how to do their job and prioritise people

management.

With high quality leadership, there is a shared vision and shared

goal amongst staff, team members trust their leader and tension

and conflict between the leader and staff is low.

Your Results

Meaningfulness

Well Done. Overall, you score above average. However, some

employees are not sure how their work objectives and goals relate

to those of the organisation. Not all staff have a strong sense of

doing work that is worthwhile. Speak with leaders and supervisors

about what they can do to improve the meaningfulness of work for

their staff.

Participation in decision making

Well Done. Overall, you score above average. Leaders are viewed

as providing some opportunities for staff to have a say in decision

making processes, however some staff feel they could contribute

more if given the chance. Speak with leaders and supervisors about

what they can do to better involve staff in decision making

processes.

Confidence

Take notice. Leaders are viewed by a number of employees as not

having sufficient confidence in their staff to do a good job. Speak

with leaders and supervisors about what they can do to improve.

Autonomy

Take notice. A number of employees consider they could have

more freedom to undertake their work in the most efficient and

effective way. They feel leaders do not always give them enough

discretion to manage their work. Speak with leaders and

supervisors about techniques for giving staff the full autonomy they

need to do a good job.

Participation in

decision making

Confidence

Autonomy

People

Management

Vision

Trust

Tension &

Conflict

Overall Competency

5

People Management

Well Done. Overall, you score above average. However, some

employees consider leaders could spend more time and effort

managing staff and teams. People management is not always

considered to be a top priority. Speak with leaders and supervisors

about the importance of good people management skills.

Vision

Well Done. Overall, there is a shared vision by leaders. However,

some employees consider leaders to be unclear about where the

organisation is going. Leaders are not seen by all staff as inspiring

employees with their plans about the future. Keep an eye on this

area going forward.

Trust

Take notice. Employees do not always trust their leaders. They do

not always feel they can rely upon their leaders and would not be

willing to let leaders have complete control over their future in the

organisation. Speak with leaders and supervisors about techniques

for building trust with their staff.

Tension & Conflict

Take notice. There is likely to be some tension and conflict

between employees and their leaders, although this might be in

pockets of the organisation. At times, employees experience

leaders to be disgruntled or argumentative. Speak with leaders and

supervisors about being alert to tension and conflict with staff.

Overall Competency

Well Done. Overall, employees feel their leaders are competent in

their role as leaders but there are still opportunities to improve the

quality of leadership. Keep an eye on this area going forward.

Investigate what can be done to keep improving leadership skills.

6

1. L E A D E R S H I P B E N C H M A R K R E S U L T S

How to read your benchmark scores

You

Average

High Performing Workplaces

7

2. E M P L O Y E E E X P E R I E N C E S

Job Satisfaction Employee Experiences

Employee experiences concern the overall job satisfaction of staff, their

commitment to the organisation and their turnover intention. For high

performing workplaces, it also involves staff’s positive and negative

emotions and their general well-being.

Staff satisfaction is important to the overall performance of the

organisation. Organisations with high staff satisfaction outperform those

with low levels both on financial performance and customer satisfaction.

Committed employees exert greater effort and consistently go beyond

their formal job description to satisfy customers and solve problems.

Pride in the organisation and advocating the organisation to friends is

more pronounced in organisations with a highly committed workforce.

Employees’ turnover intentions are much smaller in high performing

workplaces than in lower performing workplaces. This has financial

consequences for the organisation, not only due to the cost associated

with hiring new staff but also due to the loss of productivity (due to loss

of knowledge and expertise) that occur when an employee leaves the

organisation.

Emotional capital is critical to an organisation’s overall performance.

Research shows that positive emotions (such as feeling cheerful, loved

and optimistic) are much more prevalent amongst employees in high

performing workplaces, whilst negative emotions (such as feeling

anxious, inadequate, worried, depressed and fearful) are more prevalent

amongst employees in low performing workplaces. One in every four

respondent (25%) in LPWs reports feeling ‘depressed’, whereas in HPWs

it is one in every seven respondents (14%).

Well-being was coined by Professor Martin Seligman, one of the founders

of the field of positive psychology. He defined 5 pillars of wellbeing. The

PERMA Profiler measures these five pillars:

Positive emotions include feelings of joy and contentment at work.

Engagement refers to being absorbed, interested, and involved in work

activities.

Relationships refer to feeling supported and valued by others at work.

Meaning refers to having a sense of purpose at work.

Accomplishment involves working toward goals, and feeling able to

complete daily work responsibilities.

Additional areas have been added to PERMA:

Commitment

Turnover

intention

Emotions

Well-being

8

Physical health is about a person’s health and vitality.

Negative emotions involve feeling angry, sad or anxious at work.

Loneliness is how lonely a person feels at work.

Resilience

In the PERMA radar chart below, you find your score on the PERMA

Profiler. Your scores on positive and negative emotions are the same as

reported separately in a more detailed form in the radar on emotional

capital.

Your Results

Job Satisfaction

Well Done. Overall, staff satisfaction is above average. However, not all

employees are satisfied in their jobs. Investigate what is causing some

staff to be dissatisfied. This is critical to the overall performance of your

workplace.

Commitment

Well Done. Overall, staff commitment is good. However, not all

employees are committed to their workplace. Some staff do not feel a

strong sense of belonging. Investigate what might be causing lower

levels of commitment amongst some staff.

Turnover intention

Well Done. Staff turnover intention is low. However, some employees

may be considering leaving their jobs. Some employees might already be

looking for a new job. Investigate what might be causing some staff to

consider leaving.

Emotions

Well Done. There is a mix of positive and negative emotions amongst

staff. Many employees feel excited, valued, happy, enthusiastic and

proud of their work. Keep up the good work. However, some staff feel

anxious, angry, depressed or worried about their work. Investigate what

is causing negative emotions amongst some staff and what can be done

to reduce these.

Well-being

Well Done. Overall, staff wellbeing is above average. However, not all

employees experience wellbeing in their job. Some staff do not feel their

work is meaningful and some staff miss a sense of accomplishment and

strong relationships at work. Investigate what might be causing some

employees to experience lower levels of well-being.

9

2. 1. J O B S A T I S F A C T I O N B E N C H M A R K R E S U L T S


You

Average


10

2. 2. E M P L O Y E E C O M M I T M E N T, T U R N O V E R I N T E N T I O N A N D N E T

P R O M O T E R S C O R E B E N C H M A R K R E S U L T S


You

Average


11

2. 3. E M O T I O N A L A S S E T S (H O W S T A F F F E E L A B O U T T H E I R W O R K)

B E N C H M A R K R E S U L T S


You

Average


12

2. 4. E M O T I O N A L L I A B I L I T I E S (H O W S T A F F F E E L A B O U T T H E I R

W O R K) B E N C H M A R K R E S U L T S


You

Average


13

2. 5. E M P L O Y E E W E L L – B E I N G B E N C H M A R K R E S U L T S


You

Average


Negative characteristics, such as Negative Emotions and Loneliness, are reverse scored so that larger numbers mean better performance.

14

3. I N N O V A T I O N

Employee

Creativity

Innovation

In high performing workplaces, innovation is taken seriously.

Innovation processes are organised from idea generation all the way

through to prototyping and trialling new products and taking these to the

public.

Creativity concerns the production of new ideas, whether individually by

employees or by teams. Ideas are the first step in the innovation

process.

Ideas need support to be converted into meaningful outputs that are of

value to the organisation. Innovation support involves: 1) capturing

ideas from employees (e.g. through mechanisms, such as town hall

meetings and innovation zones); 2) implementing formal processes to

systematically assess and respond to ideas from employees; and 3)

investing resources into new strategic initiatives.

Innovation outcome is the end result of the innovation process. It

measures new products and services, new organisational processes, new

marketing methods and new structural innovations

Your Results

Employee Creativity

Take notice. Overall, employee creativity is below average. Employees

come up with some new ideas for how to improve their work but could

do better. There is a risk that not all staff are engaged in creative

thinking or are good at coming up with solutions to emerging problems.

Investigate what can be done to boost creativity amongst staff. This is

critical to staff motivation and performance.

Team Creativity

Take notice. Overall, team creativity is below average. Teams come up

with some new ideas for how to improve their work but could do better.

Keep an eye on this area going forward. Investigate what can be done to

boost creativity amongst teams of staff.

Innovation Support

Well Done. Support for innovation is above average. There are some

resources available to fund new strategic initiatives and for capturing

ideas from employees (e.g. Town Hall Meetings, Innovation Zones,

online forums) but some staff feel these could be improved. There might

be a lack of formal processes in place for systematically assessing and

responding to innovation ideas from employees and for transforming new

ideas into new services or products. Investigate what can be done to

Team Creativity

Innovation Support

Innovation Outcome

15

provide more support to staff for innovation.

Innovation Outcome

Take notice. Overall, innovation outcomes are below average. In the

past 12 months, some new innovations have been introduced but there

is still room for improvement. Investigate what might be blocking

innovation outcomes from coming to fruition.

16

3. 1. C R E A T I V I T Y, I N N O V A T I O N S U P P O R T & I N N O V A T I O N

O U T P U T B E N C H M A R K R E S U L T S


You

Average


17

4. C U S T O M E R O R I E N T A T I O N

Customer

Orientation Customer Orientation

Customer orientation involves taking the customer seriously. It concerns

efforts made by the organisation to shape its offerings and activities

around the customers’ needs and interests. High performing workplaces

invest significant time and resources in understanding the needs of

customers. They are receptive to customer feedback and staff engage in

dialogue with customers and actively listen to and learn from customers

Meeting customer goals measures whether the organisation has met its

customer satisfaction goals in the past 12 months

Your Results

Customer Orientation

Well Done. Overall, customer orientation is above average. However,

there is still a risk that some employees are not taking the customer

seriously. They might invest too little time and resources in

understanding the needs of customers. They may not always receptive

to customer feedback and do not always engage in dialogue with

customers or actively listen to and learn from customers. Investigate

what can be done to make all staff more customer focused.

Meeting Customer Goals

Congratulations. Customer satisfaction goals have been met in the

past 12 months. Keep up the good work! You are a role model for

others.

Meeting Customer Goals

18

4. C U S T O M E R O R I E N T A T I O N & S A T I S F A C T I O N G O A L S



You

Average


19

5. F A I R N E S S

Distributive fairness

Fairness

Fairness is related to employee perceptions of distributive and

procedural justice in the organisation. A lack of fairness in the

workplace can cause staff turnover and conflict and reduce employee’s

motivations to do a good job.

Distributive fairness concerns the implementation of reward systems to

ensure employees are fairly recognised and rewarded for their efforts,

responsibilities and contributions.

Procedural fairness is whether supervisors implement organisational

procedures and policies in a manner that is fair and equitable to all

employees.

Research has found that employees in lower performing workplaces are

less fairly rewarded for their work efforts and contributions than

employees in high performing workplaces (42.3% lower), and that

supervisors in lower performing workplaces are less likely to implement

policies in a manner that is fair and equal to all employees (16.6%

lower than HPWs).

In other words, high performing workplaces are those who take steps

to implement distributive and procedural fairness for all employees.

Your Results

Distributive fairness

Well Done. Overall distributive fairness is above average. Many

employees feel they are fairly recognised and rewarded for their

efforts, responsibilities and contributions. However there is still some

room for improvement to ensure all staff feel their work efforts are

recognised and rewarded in a fair manner. Investigate by speaking to

HR about issues of fairness.

Procedural fairness

Well Done. Overall, procedural fairness is above average. Most

employees perceive their supervisors as implementing organisational

procedures and policies in a manner that is fair and equitable to

employees. There is however room for improvement to ensure

supervisors treat all staff equally. Investigate by speaking to

supervisors about issues of fairness.

Procedural

fairness

20

5. D I S T R I B U T I V E & P R O C E D U R A L F A I R N E S S



You

Average


21

6. P R O D U C T I V I T Y

Employee

Productivity Productivity

Employee Productivity measures how productive employees are. It

asks “Compared to what is possible (100%), estimate how productive

you are at your job”. 100% means employees perform to their fullest

potential.

Team Productivity measures how productive teams are. It asks

“Compared to what is possible (100%), estimate how productive your

team is”. 100% means teams perform to their fullest potential.

Meeting goals measures whether the organisation has met its goals in

key performance areas in the past 12 months. This includes innovation,

financial and human resources goals. It also includes goals for meeting

delivery schedules on time.

Your Results

Employee Productivity

Well Done. Compared to what is possible (100%), employees perform

closer to their full potential than the average employee. There is

potentially a gap in productivity performance for some staff.

Investigate what is blocking some staff from realising their full

potential.

Team Productivity

Well Done. Compared to what is possible (100%), most teams

perform close to their full potential.

Meeting Stated Goals

Well Done. Stated goals have largely been met in the past 12 months.

Team Productivity

Meeting Stated

Goals

22

6. P R O D U C T I V I T Y B E N C H M A R K R E S U L T S


You

Average


23

P A R T T W O – FIRM LEVEL

MANAGEMENT PRACTICES

24

7. Management Practices Benchmarking Results (Australia)

Management practices are systems, processes and programs that the organisation puts

into place to achieve its performance goals. As an example, a talent management

program will encourage staff to exert extra effort and become more committed, which in

turn reduces employee turnover and costs.

The bar chart on the following page shows your performance on the Top 10

Management Practices (Australia). These 10 practices have the highest correlation

with the High Performing Workplace Index.

Responsiveness to Change

These questions measure how difficult it is for the organisation to change its plans and

activities to adjust to shifts in the external market, such as a change in customer needs,

economic conditions or the competitive landscape. The more responsive the organisation

is to shifts in the external market, the better its performance is likely to be. The

antithesis is a lack of responsiveness, which results in the organisations being out of

sync with the market and its stakeholder needs.

Skills Utilisation

Skills utilisation concerns the extent to which employees are allowed or enabled to fully

utilise their skills and abilities at work. Skills utilisation consistently proves to be of high

importance to employees, more so than other issues such as ‘good pay’. Maximising the

utilisation of employee skills is important to employee commitment, job satisfaction and

productivity. Organisations maximise skill utilisation by asking employees to engage in

problem solving and in the design of creative solutions to emerging problems.

Participation in Strategy, Planning and Setting Targets

Participation in decision making is important to high performing workplaces because it

ensures knowledge is shared and power is distributed amongst employees. Low levels of

participation in decision making have been proven to slow down workplace efficiency and

responsiveness. It can also reduce employees’ motivation and commitment to the

organisation. In contrast, higher levels of participation can improve the speed of decision

processes. It also gives employees a greater sense of authority, fairness and voice and

can lift staff commitment and motivation.

Effectiveness of Training in Helping Employees do a Better Job

These questions ask if the training provided by the organisation helps employees do their

job better. These questions explore the premise that organisations with employees with

enhanced skills (as a result of training) are more productive and perform better. For

training to be effective, it has to assist the employee do his/her job better

Use of Accounting Controls (e.g. Strategic Plans, Budgets, KPIs).

Accounting controls are put into place to achieve organisational objectives. They include

budgets, targets, plans, scorecards etc. Controls are used to track progress towards

25

goals and to identify emerging opportunities. High performing workplaces use accounting

controls diagnostically to increase productivity and interactively to innovate.

Use of Information, Communication and Technology to be Productive

ICT is a key resource in high performing workplaces. ICT reduces the service delivery

costs, supports an organisation’s operational processes and improves productivity and

profitability. ICT is likely to be a key resource for employees to carry out their daily

tasks. The use of ICT in HPWs has little to do with the types of technology used (e.g.

intranets, blogs, social networking sites). This suggests that what counts is how the

technology is used rather than simply having more (and different kinds) of it.

Flexible Work Arrangements

Flexible work arrangements include flexibility in the hours of work (such as changes to

start and finish time) and location of work (such as working from home). Flexibility is

beneficial to working parents with responsibility for the care for a child who is school

aged or younger. Flexibility can increase job satisfaction and commitment.

Job Autonomy

Job autonomy concerns the degree of autonomy employees have in carrying out their

work. In a high performing workplace, employees have significant autonomy in

determining how they do their jobs and opportunity for independence and freedom.

Autonomy has been shown to foster creativity and innovation and improved staff morale

as employees feel trusted to do a good job and exert extra effort to this end.

Unpaid Overtime Hours

This measures the number of hours that employees work overtime but is not paid for

that additional work. Critics point to work intensification and a lack of proportionate

reward for additional effort reduce organisational outcomes like productivity and

innovation. This is true for high performing workplaces, where unpaid overtime is

negatively correlated with performance outcomes on the High Performing Workplaces

Index. In other words, it does not pay off to not pay workers fairly.

Tension and Conflict with Colleagues

These questions measure the degree of conflict and tension faced by the employees in

their workplace. Researchers have indicated that tension and conflict is inevitable at

work. There can be various sources of tension and conflict. These questions gauge the

extent to which the employee faces tension and conflict with colleagues. Interpersonal

conflict in the workplace has been shown to be one of the most frequently reported job

stressor. Disagreement brings about stress, poor staff morale and negative emotions. In

high performing workplaces, tension and conflict is negatively correlated with

performance outcomes on the High Performing Workplaces Index.

26

M A N A G E M E N T P R A C T I C E S (AUSTRALIA)


You

Average


27

8. Management Practices Benchmark Results (International)

The bar charts below show your organisation’s performance on two Management Practices

(International). The benchmark data comes from the Management & Organisational Practices

Survey collected from approximately 32,000 organisations.

Data Driven Performance Monitoring

These questions asked responding organisations about the number, frequency and extent of

performance monitoring. Organisations with high scores on these questions measure a wide

range of performance indicators (e.g. production, cost, waste, inventory, defects, energy use,

absenteeism, deliveries on time etc.). Organisations with high scores reviewed these performance

indicators with managers and non-managers on at least a daily basis, and displayed these

measures prominently around the organisation. Organisations with low scores collect very little

performance data, evaluate this infrequently, and typically do not publicly display this

information.

Incentives and Targets

These questions asked responding organisations about incentives and targets, which focus on

management practices around pay, promotions, hiring and firing, alongside the range, depth and

effectiveness of targets. Organisations with high scores on these questions set stretched targets,

have a combination of short and long term targets, base promotions on employees’ performance

and ability (not tenure), reassign or dismiss non-performing staff, and pay performance-based

bonuses to managers and staff. Organisations with low scores on these questions do not set

targets, base promotions on tenure (rather than performance), fail to manage non-performing

staff, and do not pay performance based bonuses to managers and staff.


You

Average



You

Average


28

9. Firm Productivity & Financial Performance Benchmark Results

The charts below show your organisation’s productivity and financial performance benchmarked

against the Australian averages for your industry.

The financial data used for these benchmarks have been collected by the Australian Bureau of

Statistics from approximately 2,000,000 Australian organisations (2014/15).

Profit Margin Profit Margin is calculated as Earnings Before Interest and Tax / Revenue (%)

Profit Margin (%)

Labour Productivity Labour Productivity is calculated as Value Added1/ Full Time Equivalents ($)

Labour Productivity ($)

1 Value added is calculated as total labour costs plus earnings before interest and tax.


Your organisation

Industry Average

Average for all industries


Your organisation

Industry Average

Average for all industries

29

P A R T T H R E E - PUBLIC & PRIVATE

SECTOR BENCHMARKS

30

Public & Private Sector Benchmark Results

The radar chart overleaf shows the benchmark results for public and private sector organisations

on the six categories and key performance indicators of the High Performing Workplace Index.

Your results are shown on the blue line.

The chart shows significant differences between public and private sector organisations in the

following areas:

Leadership

Private sector managers have slightly better leadership skills in the areas of people

management and articulating a vision when compared to public sector managers.

Employee Experience

Employees in private sector organisations are more committed to their workplace, more satisfied

in their job and report lower turnover intention when compared to employees in public sector

organisations.

However, employees in private sector organisations report lower levels of well-being and positive

emotions, which related to things such as feeling less excited and proud and more anxious and

nervous about their jobs.

Innovation

The biggest difference between public and private sector organisations is in the level of support

for innovation. Private sector organisations are better at capturing ideas from employees (e.g.

through town hall meetings and innovation zones), implementing formal processes to assess and

respond to ideas, and investing resources into new strategic initiatives.

Fairness

Public sector organisations are fairer workplaces both in terms of distributive fairness (recognising

and rewarding staff for their efforts) and procedural fairness (implementing policies in an

equitable manner).

31

P U B L I C & P R I V A T E S E C T O R B E N C H M A R K R E S U L T S


You

Average Score of Private Sector

Average Score of Public Sector

32

P A R T FOUR – DEMOGRAPHIC SURVEY

INFORMATION

33

Demographic Survey Information

Age

This represents a breakdown of the age brackets of the survey respondents.

For your workplace:

Across all workplaces surveyed:

34

Gender

This represents a breakdown of the gender of the survey respondents.

For your workplace:


35

Education

This represents a breakdown of the educational qualifications of the survey respondents.

For your workplace:


36

Type of Employment

This represents a breakdown of the full-time/part-time/casual staff of the survey respondents.

For your workplace:


37

Management Level

This represents a breakdown of the management levels of the survey respondents.

For your workplace:


38

Tenure

This represents a breakdown of the tenure of the survey respondents.

For your workplace:


39

Income

This represents a breakdown of the income of the survey respondents.

For your workplace


40

Background to the High Performing Workplace Index

In 2010, the Australian Commonwealth Government funded a 3 year project on High

Performing Workplaces. In line with international trends, the project sought to identify ways

of increasing productivity in Australia by focusing on the characteristics and behaviours of

High Performing Workplaces. Labour Productivity Growth in some Australian industry

sectors, such as Property and Business Services, had been poor for three decades: at -1.6

(1975-85), -2.0 (1985-95) and 0.9 (1995-2005).

The High Performing Workplace Index (HPW Index) measures an organisation’s

performance in 6 categories, featuring 25 performance measures. The 6 categories are:

• Leadership (L)

• Employee Experiences (E)

• Innovation (I)

• Customer Experiences (C)

• Fairness (F)

• Productivity & Financial Performance (P)

The HPW Index is an academically validated and multi-disciplinary research method

developed in collaboration between Australian universities, public and private organisations,

policy makers and industry associations over a 5 year period.

The methodology is unique in that it captures employee voices across 4 levels of staff:

senior executives, middle managers, front line managers and non-managerial employees.

This is a benefit when compared to surveys such as Management Matters, which only

captures one executive response from participating organisations.

Where possible, the HPW methodology collects firm level financial data allowing an objective

calculation of firm level Total Factor Productivity.2

Today, the High Performing Workplaces database consists of 1,170,481 employee and

59,475 firm level question responses, totalling approximately 80,000 pair wise relations.

The HPW Index has proven to have significant power in predicting financial performance.

High Performing Workplaces are up to 3 times more profitable than their peers. In dollar

terms, this difference equates to High Performing Workplaces earning on average $40,051

2 Total Factor Productivity is the proportion of output not explained by the use of tangible capital and labour.

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more in earnings before interest and tax per full time equivalent per annum (industry

adjusted).

The HPW Index classifies workplaces as High Performing Workplaces, Mid Performing

Workplaces and Low Performing Workplaces. Organisations that are more than one standard

deviation above the mean are considered to be “higher performing”. Organisations that are

more than one standard deviation below the mean are considered to be “lower performing”.

The HPW Index is calculated by averaging the scores for the 6 categories to an overall score

for each workplace. The six categories are weighted equally. The resulting Index is

converted to a z-score (a mean of zero and a standard deviation of 1).

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