rightmgmt_employeeengagement
DESCRIPTION
emp engegementTRANSCRIPT
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Defining Employee EngagementDefining Employee Engagement
• Employee Engagement is a critical measure of person-organization alignment
• Engaged employees share a common set of attitudes and beliefs which, taken together, reflect a vital aspect of organizational health
- Pride and Commitment
- Job Satisfaction
- Motivation
- Advocacy
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Engagement Impact - ExamplesEngagement Impact - Examples
Why is it better to have employees with HIGH vs. LOW levels of engagement?
• An estimated 19% of the US workforce is disengaged, costing the US economy upwards of $300 Billion in lost productivity*
• Fortune's 100 Best Companies to Work For have had a 10.6% annual return since 1998, while companies listed on the S&P 500 have had only a 5.7% return in that period *
*Information from Izzo and Withers (2000)
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Engagement Impact – ContinuedEngagement Impact – Continued
Highly engaged companies are*:
• 29% higher in revenue• 50% more likely to have above-average customer
loyalty• 44% more likely to turn above-average profits
Highly engaged workgroups are**:• 44% higher retention• 56% higher in customer loyalty• 50% more productive• 33% more profitable*Information from Izzo and Withers (2000)**Information form The Right Group and Manpower (2002)
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Importance of EngagementImportance of Engagement
• It is essential that every person understands and commits to your business strategy—as stated in your brand, vision, mission or values—for your organization to be successful in the marketplace
• Employees must know specifically what they can do on their individual jobs each and every day to truly make a measurable difference in bottom line results
• Engagement must be based on strong diagnostics and executed with a focused, creative strategy designed to prove the impact on business results
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Survey ParticipationSurvey Participation
• 500 Surveyed 475 Responded = 95% response rate
• Margin of Error = +/- 1.1% @ 95% confidence
• Surveys were administered on-line and processed by Right Management
• Rating Scale: 5 4 3 2 1 Strongly Agree Neutral Disagree
Strongly Not Agree
Disagree Applicable
NA
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Sample CharacteristicsSample CharacteristicsJob Level
VPs & Above 8 1.7%Team Leader/Director 42 9.1%Team Member 413 89.2%
463 100.0%
DivisionClaims Services 163 38.7%
Account Services 110 26.1%Information Technology 40 9.5%Legal 40 9.5%Finance 36 8.6%Underwriting & Product Services 20 4.8%HR & Organizational Effectiveness 12 2.9%
421 100.0%
Tenure Less than 1 year 45 9.7%1 to up to 3 years 54 11.6%3 to up to 10 years 146 31.5%More than 10 years 219 47.2%
464 100.0%
LocationPhoenix home office 380 83.7%Tucson field office 39 8.6% Other field office 35 7.7%
454 100.0%
n %
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Interpretation GuidelinesInterpretation Guidelines
All Systems Go!
Warning
Red Alert!
% Favorable
60 or more
50-59
49 or less
10
Theme Level Analysis Theme Level Analysis
60
60
66
34
24
19
21
18
17
59
49
50
50
26
26
17
22
19
21
23
17
0% 25% 50% 75% 100%
Executive Leadership
Communication
Reward & Recognition
Learning & Development
My Leader
Work Environment
Culture
Favorable Neutral Unfavorable Reliability Items
.85 8
.81 8
.92 11
.78 8
.82 8
.86 9
.91 8
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Item Level Analysis: Culture (8)Item Level Analysis: Culture (8)
72
78
80
87
25
26
16
17
14
11
9
45
63
35
67
18
39
19
17
11
8
9
4
29
0% 25% 50% 75% 100%
13. I t is safe to speak up here without fear ofretribution.
16. This organization encourages employees toopenly express differences of opinion.
17. Teamwork is strong in my team.
14. Everyone is treated equally here regardless oftheir race, ethnic origin, gender, age, sexual
orientation, etc.
18. I have opportunities to suggest innovativeideas at work.
12. This organization takes good care of itscustomers.
11. I am encouraged to share learnings and bestpractices.
15. I am encouraged to take ownership of mywork.
Favorable Neutral Unfavorable
469 4.20
470 3.96
472 3.93
471 3.86
471 3.70
472 3.64
472 3.21
472 2.90
Item N Mean
Employees feel encouraged to own their work, support one another and suggest innovative ideas; however, they don’t feel comfortable speaking up and expressing differences of opinion is not encouraged.
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One Improvement (N= 379)One Improvement (N= 379)• Employees recommended improvements to their benefits (e.g.,
higher salaries, telecommuting opportunities, additional time off)- Overall compensation, either through salary increases or significantly
increased vacation time
- More opportunities for telecommuting, as long as job duties are covered.
- Wages paid more fairly on the job and responsibilities, instead of by the broadband
- TYPE goals - to change or remove this process. Even though it has been addressed to let team members know if they are not participating, not all team members participate, yet receive tip goal payments
• Employees would like to have development plans and see improvements in the performance evaluation system
- Simplified performance evaluation system, and a improved HRIS
- Change how employees are reviewed. The 360 reviews are useless, and the milestone settings are too unreachable which discourages more than it encourages.
- Hold ALL employees accountable for their work performances/attendance
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What Not to Change (N= 206)What Not to Change (N= 206)• Employees like the benefits they receive (e.g., medical,
retirement plans, vacation, etc.)- I very, very, very much appreciate the benefits package provided to us.
It is unheard of in the business community and puts my mind at ease.
- No more additional costs associated with our health benefits.
- Flex time or working from home.
• Employees appreciate the organizations investment in employee development
- The opportunity for education offered to all of us. This benefit is better than any other company and this organization encourages everyone to take advantage of this.
- I would not want the education benefits to change, I love that this organization supports our personal and professional growth.
- The opportunities offered to move or learn about different aspects of the company or outside the company.
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Defining Employee EngagementDefining Employee Engagement
• Employee Engagement is a critical measure of person-organization alignment
• Engaged employees share a common set of attitudes and beliefs which, taken together, reflect a vital aspect of organizational health
- Pride
- Job Satisfaction
- Motivation
- Advocacy
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Right’s Model of Employee EngagementRight’s Model of Employee Engagement
Satisfaction
Motivation
Pride
Advocacy
• Performance & Profitability
• Sales & Employee Attraction
• Customer Service
• Productivity
• Turnover
Employee Engagement Business Outcomes
TM
18
73%
27%
Employee Engagement LevelEmployee Engagement Level
0%
50%
100%
60%
Low
Medium
High
30%
Engaged
Not Engaged
% E
ng
aged 48.5%
51.5%
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Employee Engagement Model Employee Engagement Model
2005 Survey
49%
60%
74%
75%
Right Benchmark*
60%
74%
86%
89%
81% products/services
74% employer
Pride
Advocacy
Motivation
Employee Engagement
Satisfaction
TM
92% 75%
*Best-in-Class Companies
- 14%
Reliability = .86
- 12%
- 14%
- 11% - 1%
- 11%
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Key Outcome MeasuresKey Outcome Measures
45
17
32
75 7
24
0% 25% 50% 75% 100%
73. This organizationattracts the best people.
72. Taking everythinginto account, this
organization is a greatplace to work.
Favorable Neutral Unfavorable
469 3.97
468 3.11
Item N Mean
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RetentionRetention
Which statement best describes your current plans?
% Agree
I am leaving this organization as soon as I can 2%
I plan on leaving in the next 6 months 6%
I plan on being here another year but I am not sure after that 11%
I plan on being here for the next 2 years 26%
I have no plans whatsoever to leave 55%
Total 100%
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Model of Organization PerformanceModel of Organization Performance
Item 2
Drivers Impact Engagement Impact Key Outcomes
Item 1
?
?
?
Item 3
?
Motivation
Satisfaction
Pride Advocacy Outcomes
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Key Driver Analysis EngagementKey Driver Analysis Engagement
Driver Impact Outcome
Employee Engagement*
MY LEADER .15
R = 36%2
*Composite measure of Advocacy, Pride, Motivation, and Satisfaction.
COMMUNICATION.17
REWARD & RECOGNITION .24
CULTURE.15
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Key Driver Analysis Employee AttractionKey Driver Analysis Employee Attraction
Drivers Engagement Impact Key Outcome
.13
Motivation
Satisfaction
Pride EmployerAdvocacy
EmployeeAttraction*
Communication
Reward & Recognition
My Leader
.25
.17
R = 39%2
44. This organization promotes employees who deserve it. (Reward & Recognition, 25%)
60. The Executive Team works well together. (Executive Leaders, 28%)
Culture
2. I feel well informed about what is going on. (Communication, 45%)
.18
.1543. This organization rewards its employees well compared to its competitors. (R&R, 35%)
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Engagement – Great Place to Work MatrixEngagement – Great Place to Work Matrix
Gre
at P
lace
to
Wo
rk
HighLow
High
Stars55%
Disconnected
15%
Free Agents 15%
Benchwarmers 15%
Engaged
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Demographic SegmentationDemographic Segmentation Stars Bench Free-Agents
Saboteurs warmers
LevelVPs & Above (8) 100% 0% 0% 0%Team Leader/Director (42) 76% 10% 4% 10%Team Member (413) 44% 30% 1% 25%
TenureLess than 1 year 49% 29% 0% 22%1-3 years 37% 28% 3% 32%3-10 years 48% 31% 2% 19%More than 10 years 49% 26% 1% 24%
DivisionHR 75% 17% 0% 8%IT 58% 27% 0% 15% Legal 58% 25% 0% 18%Claims Services 48% 34% 1% 17% Finance 47% 22% 6% 25% Account Services 46% 23% 1% 30%Underwriting 35% 40% 0% 25%
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Demographic DifferencesDemographic Differences
Key Variables Demographic VariablesLevel Location Division Tenure
My Leader
Culture
Work Environment
Executive Leadership Recognition & Rewards
Communications
Learning & Development
Engagement
Retention
Great Place to Work
Employee Attraction
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Demographic Differences - LevelDemographic Differences - Level
45%55%
81%
19%
100%
0%
49%51%
0%
20%
40%
60%
80%
100%
Team Member Director VPs & Above Overall
engaged disengaged
The ratio of engaged to disengaged employees is best among Team Leaders and VPs & Above
.8 to 1 4 to 1 8 to 1
Ratio
N=413 N=42 N=8
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Demographic Differences - LevelDemographic Differences - Level
3.94.3
4.8
0.0
1.0
2.0
3.0
4.0
5.0
Team Member Director VPs & Above
Great Place to Work
Team Members are significantly less positive about this organization as a Great Place to Work compared to VPs & Above.
N=413 N=42 N=8
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Summary and ImplicationsSummary and Implications
• Strengths: Within team effectiveness (role clarity, support, etc.) 55% Stars overall Team Leaders and VPs are highly engaged
• Opportunity Areas: Cross functional effectiveness Communication and perception of leaders 25% Benchwarmers overall Team Member engagement scores are moderate
• Level of Engagement: Medium, 49%
• Drivers of Engagement: Reward & Recognition Communication My Leader Culture
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Next StepsNext Steps
Executive
Managers
Employees
• Leadership Presentation of
Results
• Action Planning Sessions
• Employee Survey Communications
Strategic
Tactical
Feedback
EMPLOYEE OPINION
SURVEY DATA
Survey Data