prepared by tns for ithala development finance corporation limited september 2011

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Prepared by TNS For Ithala Development Finance Corporation Limited September 2011

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Prepared by TNSFor Ithala Development Finance Corporation LimitedSeptember 2011

objectives

Primary objective: To identify employee commitment and satisfaction in order to establish areas of

concern that need to be addressed to improve employee motivation

How did Ithala Group meet

employee’s expectations?

Secondary objectives:

How strong is employee

morale?

21 3

How do employees rate

current management?

Do employees receive

feedback from their manager’s?

Is good work seen to be

recognised and rewarded?

Are employees motivated and

aligned with the Ithala Group

vision? Do they believe in the

products and services Ithala

Group offers?

Have the expectations of

employee’s been met ? How has

their experience of employment

in Ithala Group been?

We conducted research both online and face

to face, with interviewers available for

assistance if needed in the following areas:

• Ezakheni Industrial Estate

• Isithebi Industrial Estate

• Head Office, Umlazi

Who took part? Where did we go?

We invited all employees at Ithala Group, falling into

the following departments and grades to participate:

Departments:

Business Finance Group Strategy

Group Corporate Services IT

Group Finance Properties

Group Chief Executive Ithala Limited

Grades: A2 - F

Sample

Ithala Group consists of four business units which provide different products and services. It is important to ensure

that all employees, despite which business unit they work in, are aligned with the overarching vision of the company.

Thus…

4

TRI*M Typology – basic segmentation

low

high

low

hi

gh

Satisfaction

Motivating environment

Drivers Highly satisfied with the organisation and have a high level of loyalty to the organisation

CriticsRather critical and therefore difficult to lead; they are individualistic and mainly interested in their own professional advancement

ResidentsSatisfied but rather security driven; they have a stabilising effect on the organisation

Dissatisfied and disconnected from the organisation; major source of negative word-of-mouth; they represent underutilised resources of the organisation

Detached

TRI*M Typology - Ithala Group

Drivers5%

Critics7%

Detached57%

Residents31%

Satisfaction

Motivating Environment

Base 332

TRI*M Index 25

Nearly 6/10 of your employees feel dissatisfied and

disconnected from the organisation.

3/10 employees are residents – they feel

satisfied but are driven by feeling secure

This is the area that you want majority of your employees to be

positioned in

6

A quick explanation…

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TRI*M Grid – the basic structure

HighLow

High

Low

Respondents are directly asked what they think is important

Another measurement of importance based on an indirect analysis of their actual commitment.

CLAI

MED

IMPO

RTAN

CE

IMPACT ON EMPLOYEE COMMITMENT

MotivatorsImprove these strengths, eliminate dangerous weaknesses!Use these strengths in order to communicate!

Must Haves

Don't fall below a specific quality level. This will not be accepted by your employees!

Potential Savers

Examine your engagement.Concentrate on those quality elements that could become opportunities. Hidden

Opportunities

Look for possible motivators.These items offer the potential to increase commitment.

Ranking

Address first

Address second

Address third

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Areas to address: key

In order to recommend clear and actionable opportunities to improve on, we have rated what your employees said based on stated importance and the impact on employee commitment

We have ranked the statements in order of which should ideally be addressed:

Rated far below average, this is the statement which has the highest combination of stated importance and impact on employee commitment

Rated below average, this will be the statement with the next highest combination of stated importance and impact on employee commitment

Rated below average, this is the statement with the third highest combination of stated importance and impact on employee commitment

PerformanceFar above averageAbove average

AverageBelow averageFar below average

Areas to maintain: key

Similarly, we have also rated the aspects that your employees found to be above average based on stated importance and impact on employee commitment

We have ranked the statements on order of which should ideally be maintained

Rating

Keep up the good work - Maintain

Good job - Continue

You’re on the right track – Keep going

Rated above average, this is the statement which has highest combination of stated importance and impact on employee commitment

Also rated above average, this will be the statement with the next highest combination of stated importance and impact on employee commitment

Also rated above average, this is the statement with the third highest combination of stated importance and impact on employee commitment

PerformanceFar above averageAbove average

AverageBelow averageFar below average

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Employees seems to be satisfied interdepartmentally – majority consider their immediate manager to be

trustworthy and to treat them respectfully. They rated their direct colleagues friendly, reachable and found sharing of

knowledge and experiences, as well as their willingness to get involved above average.

However, there is a high level of detachment in Ithala Group, being driven by:

• A lack of training and development opportunities

• Not being rewarded according to performance and skills

• Little opportunity for job rotation

• Negative perceptions from the general public – adaptability and high quality products/services, amongst other things

were rated below average

• Communication between departments and the speed in which colleagues respond to requests is below average

• Agreements made in meetings are not complied with and employees cannot talk about mistakes made at work openly

These could be driven by a wider intradepartmental issue: Management is performing on average across the

board. They are treating employees with respect and dignity however they are not providing a particularly motivating

environment. There is also a lack of honest and open communication regarding corporate issues and the strategic

orientation of Ithala Group.

Key findings

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Quality of work

Total [n=323]

Properties [n=98]

Ithala Limited [n=97]

Business Finance [n=34]

Hygienic/Motivator

Training and development opportunities that help employees in their long-term

career development

Areas to address - Quality of work

Address first

Address second

Address third

Training is seen to be lacking across all departments apart from Business Finance. Investing money into training your employees is a win win - boosting staff morale

whilst increasing productivity

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Income and benefits

Areas to address: Income and benefits

Address first

Address second

Address third

Employees do not feel that they are rewarded based on their job performance, resulting in a loss of motivation

Opportunity to implement a` performance base rewards/recognition programme

Total [n=323]

Properties [n=98]

Ithala Limited [n=97]

Business Finance [n=34]

Potential/Hidden opportunity

Employees to be rewarded according to their job performance

Hygienic

Fair income in comparison with colleagues within Ithala Group

Appropriate salaries for specific roles

17

Professional development and promotion

Total [n=323]

Properties [n=98]

Ithala Limited [n=97]

Business Finance [n=34]

MotivatorIthala Group offers promotion and professional development according to performance and skills

Motivator/ Hidden Opportunity

Opportunities to participate in professional development measures/programmes

Hidden Opportunity

Ithala Group offers opportunities for job rotation (within department, subsidiary or team)

Areas to address: Professional development and promotion

Address first

Address second

Address third

It is concerning that no employees rated professional development at Ithala Group above average – is there a possible problem with promotion schemes? If

this is addressed, it could cause great satisfaction amongst staff.

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Information and communication

Total [n=323]

Properties [n=98]

Ithala Limited [n=97]

Business Finance [n=38]

MotivatorHonest information and open communication on corporate issues

Hidden Opportunities

Information which is adequate

Useful information for daily work

Personal information from superior/team leader

Hygienics

Easily accessible information which is relevant for employee’s work

Information on the strategic orientation of Ithala Group

Areas to address: Information and communication

Employees do not consider Ithala Group to offer honest information and open communication

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CO-OPERATION

Total [n=323]

Properties [n=98]

Ithala Limited [n=97]

Business Finance [n=34]

Hidden Opportunity

Openly and without fear be able to talk about mistakes made at work

Areas to address: Co-operation with your close colleagues in your own organisational unit

Address first

Address second

Address third

The only aspect rated below average is being able to speak about mistakes openly and without fear

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Leadership

A manager should...Total

[n=323]Properties

[n=98]Ithala

Limited [n=97]

Business Finance [n=34]

Potentials

Provide a motivating environment

Support the professional development of the employees

Areas to address: Line manager’s leadership style

The performance of managers are being rated average – apart from the Properties Department whose

managers are not providing a motivating environment or supporting their professional development.

Address first

Address second

Address third

25

Image and attitude

Is Ithala perceived to be...Total

[n=323]Properties

[n=98]Ithala

Limited [n=97]

Business Finance [n=34]

Motivators

Adaptable to market changes

Have high quality products and services

A strong competitor in key growth areas

A leader in the industry in important ways

An innovative/progressive company

Areas to address: Image and attitude of Ithala Group perceived by the market and general public

It is concerning that the general public perceive Ithala Group to be inadaptable and the quality of it’s products and services to be below average

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Employee Survey

Total [n=323] Properties [n=98]

Ithala Limited [n=97]

Business Finance [n=34]

MotivatorImplementation of the derived measures

Hygienic/ Motivator Development of measures

HygienicInformation on the results of the employee survey

Areas to address: Employee survey

Address first

Address second

Address third

Employees do not seem to believe that anything will be implemented from this survey.

We strongly recommend sharing the results and ways in which you plan to address areas of dissatisfaction with all staff - make them aware that their

voices are being heard.

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What have your employees said...

Improve staff treatment: Overall

“The way they [managers] communicate with staff - they shout in front of everybody and use

unnecessary words e.g. Stupid”

“Respect is also crucial because we are all working towards the same goal no one has a right to bully another staff member even if you are the staff member's superior we

all have to work together to keep this organisation alive”

“Staff are treated differently/discrimination”

“Managers must understand that being a manager doesn't mean that he/she

must oppress people, his or her role is to help people to discover who they are and to be given a platform where they

can do what they are good at”

“Ithala Limited is divided in their attitude and commitment to the staff’s well being”

Improve staff treatment:Recognition of good work & long service:

“Recognition for good performance e.g. Employee of the month”

“If Ithala can recognise top performers, this will motivate other staff”

“Employees should be rewarded fairly and consistently in

accordance with their performance”

“Ithala needs to recognise employees that have a long experience and

promote them to better”

“The company must recognise their long service and better qualified employees for better positions”

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Improve staff treatment: Added extra’s

“I think training is needed for us to excel in our jobs”

“Constant training and development of staff”

“Provide more training or refresher courses”

Fairer salariesMore Training

“Reward employees accordingly, not management to receive crazy salaries

and employees to receive disappointing salaries”

“Correct the huge gap of salary between employees”

Improve customer service

“When it comes to customer services Ithala matches the likes of all

government departments”

“Ithala must start to be innovative, introduce new products on demand by the target market-our target has changed and

we have not changed at all”

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Improve leadership

“With strong leadership Ithala

can become a leader in the

industry like it used to be, that

will bring back the job security in us

staff”

“There exists a distinct lack of integration within

the organisation, a situation arising from top

management's lack of drive and leadership,

leaving the organisation in doldrums”

“There is a general lack of discipline and commitment within the organisation, possibly as a result of no

clear direction by management, no role models e.g. Do as I say-not do as I do”

“Management to be fair to all employees and stop having favouritism amongst staff”

“Ithala can be an organisation that

should remain competitive to other financial institutions,

however, this can only be achieved through

strong direction”

“Management need to work harder on staff motivation”

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Communication

“Lack of communication within the organisation is really affecting the working environment”

“Staff communication is terrible”

“Communication is extremely important and I believe Ithala still lags behind”

“We need transparency when there are new developments that are taking place”

“Transparency should be the name of the game and we are sick and tired of CEO's that are having their own agendas”

Employing the right person for the job…

“Ithala must employ qualified people rather than friends and connections”

“People must not be in positions because of their level of education and

without taking the experience on the job into consideration. Ithala has a

number of academics but with less experience-Ithala is losing in hiring

these experts but they can't deliver as per their title given because there is

a lack of experience”

“Some employees are put into positions that are

made for them. To Ithala, qualification is more

important than skill. Over 55 year old employees

were given the option of early retirement thereby

making us feel unwanted”

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Image

“The Ithala Group needs to have clear understanding of what it wants to achieve and stick by those goals”

“There is a distinct lack of clarity of mission and roles”

“Articulation of vision… a little understanding of where we come from, where

we are now and where we are going”

“Our company must shy away from the politicians because Ithala is treated as the carpet of the so called politicians which is

detrimental to the image”

“External factors (political) have extremely dented the image and brand of Ithala on the public at

large”

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Employee survey

“I sincerely wish to see something positive to come out of this survey”

“It is important that when surveys are done necessary

measures should be taken where it needs to be”

It is important to communicate the findings of this survey – send an

email out to all employees with the results and with the action points that will happen in the next few

months

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The way forward

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Quick recap… what are key motivators?

Performing above average:

•Team spirit and solidarity

•An organisation that is good to work for

•Job security

Performing on average:

•Customer orientation

•Fairness towards employees

•Clear understanding how staff contribute to the success of the organisation

•Clear understanding of what the organisation is trying to achieve

•Clear understanding of the mission and mandate of the organisation

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What are key motivators?Cont’d...

Performing below average:

•High quality of products and services

•Innovative/ progressive company

•Strong competitor in key growth areas

•Leader in the industry in important ways

•Leadership have a clear vision of the future

•Staff commitment to the mission and mandate of the organisation

•Leadership have made changes which are positive for the company

•Implementation of the derived measures from the employee survey

Performing far below average:

•Promotion and professional development according to performance and skills

•Perceptions of being adaptable to market changes

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What are the hidden opportunities?

•Performing on average:

•Personal information from superior/ team leader

•Usefulness of the information for daily work

Conflicts and disagreements handled in a constructive way

•Openly and without fear talk about mistakes made at work

Performing below average:

•Leadership responds to important external issues

Performing far below average:

•Opportunities for job rotation

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What are the Hygenics?

Performing far above average:

Job fits to my knowledge and skills

My work provides me a variety of tasks and activities

In my work team we have clear roles/ areas of responsibility

Retirement pension offer of your company

Performing above average:

My immediate manager is open and honest in communication

My immediate manager treats employees with respect and dignity

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What are the HygenicsCont’d…

Performing on average:

I can easily get access to the information which is relevant for my work

Colleagues thinking and acting customer-oriented

Evaluates performance frankly and fairly

Information on the results of the employee survey

Performing below average:

Fair income in comparison with your colleagues in your company

My salary is appropriate for my role

Areas of focus

Recognition of good work –promotions to be based on performance and skills.

Improve staff treatment –Contribute towards staff motivation, training/ development programmes

Improve communication from leadership – positive PR, regular communication with updates on corporate issues and strategic orientation. Posters in the kitchen/bathroom about upcoming events or training will keep everyone updated

Refresh image – need to make your mission well known to all employees – road shows are a great way to get staff buy in

Employee survey – results of this survey must be shared with all employees and measures must be implemented

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Thank you