the engagement equation tom barry [email protected] +44 7970 724253 20 november 2008

The engagement equation

Tom Barry

[email protected]+44 7970 724253

20 November 2008

mailto:[email protected]

2008 BlessingWhite, Inc. All Rights Reserved / 2

THE EMPLOYEE ENGAGEMENT EQUATION

• As much as $350 billion is lost annually due to lower productivity from actively disengaged workers

Gallup Management Journal

• Highly engaged firms experienced growth of 28% compared to an 11% decline in disengaged firms

Towers Perrin

• One company saved $1,721,760 in one year by strengthening employee engagement

SHRM Report

Why engagement?



Employee Engagement and Brand Engagement…..

of customersleave because of pooremployee attitude

Source: Parkington and Buxton, Study of the US Banking Sector, Journal of Applied Psychology

68%

Source: MCA Brand Ambassador Benchmark

of customers areloyal becauseof a goodemployee attitude

41%of customer brand perception is determined by experienceswith people

Source: Ken Irons, Market Leader

70%



Agenda

•How do we define engagement?

•Who’s engaged and who’s not?

•What’s the link between engagement and retention?

•What are employees looking for?

•What is the role of leaders?

•So, what are the issues for HR and Trg & Dvt?– What can we do?



About our study

•4th study in the series

•Global online survey – 7,508 respondents – 9% from Europe

•40 interviews– HR leaders– Line leaders



Global respondent profile

44% North

America

9%

Europe 3% China

32% India 6% Australia/ SE

Asia

49% Supervisor or above

27% Gen Y, 40% Gen X, 31% Baby

Boomers

60/40 Male/female

Mix of industries and functions

7,508 respondents


What do we mean when we say…

…‘employee engagement’?



organisation

Success

Values, Goals,

StrategySucces

s

Values

, Goal

s,

Strate

gy

Indiv

idual

Max

imum

Satis

fact

ion

Maxim

um

Contribution

JOBJOB

Engaged employees are enthused and in gear

THE APEX



The state of engagement

Max

imum

Sat

isfa

ctio

n Maxim

um Contribution

23%

The

Engaged26%

The Almost

Engaged14%

The

Crash & Burners

15%

The Honeymooners &

Hamsters22%

The Disengaged

UK & Ireland Data



The state of engagement – ICBE

Max

imum

Sat

isfa

ctio

n Maxim

um Contribution

37%

The

Engaged16%

The Almost

Engaged11%

The

Crash & Burners

21%

The Honeymooners &

Hamsters16%

The Disengaged

ICBE Data



Summary ICBE v UK/Ireland

Max

imum

Sat

isfa

ctio

n Maxim

um Contribution

37%

v 23%

16%

V 26% 11%

V 14%

21%

V 15%

16%

V 22%ICBE Data

Where are

you?



A generational view

UK & Ireland Data

18%22%

30%

14%14%

15%14%

16%

13%

30%24%

25%

24% 24%18%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Baby Boomers (1946-1964) Gen X (1965 – 1977) Gen Y (1978 - 1990)

Disengaged Crash & Burners Honeymooners & Hamsters Almost Engaged Engaged



How is engagement different in turbulent times?



Where are most of your employees?

Max

imum

Sat

isfa

ctio

n Maxim

um Contribution

23%

The

Engaged26%

The

Almost

Engaged

14%

The

Crash & Burners

15%

The Honeymooners &

Hamsters

22%

The

DisengagedUK & Ireland Data


In 2008…

…will they stay or will they go?



Engagement & retention

16% “Yes, definitely”

47% “Probably”

37% “No Way”


54% “Probably”

15% “No Way”


22% “Probably”

<1% “No Way”

“Assuming you

have a choice,

do you plan to

stay through

2008?”

Max

imum

Sat

isfa

ctio

n Maxim

um Contribution

UK & Ireland Data


37% “Probably”

5% “No Way”40% “Yes, definitely”

44% “Probably”

16% “No Way”


What do employees need…

…to increase their satisfaction and contribution?



Common factors

• To increase satisfaction: 1. More opportunities to

use talents2. Career development

& training

UK & Ireland Data

Max

imum

Sat

isfa

ctio

n Maxim

um Contribution

Other options:

A better relationship with my manager

Improved cooperation among my coworkers

Greater clarity about what the organisation needs me to do – and why

More challenging work

More say in how my work gets done

Greater clarity about my own work preferences and career goals



Common factors

Max

imum

Sat

isfa

ctio

n Maxim

um Contribution

• To increase contribution:

1. Regular, specific feedback

2. Greater clarity aboutwhat org needs, why and a coach or mentorother than my manager(tied)

Other options:

A better relationship with my colleagues

Development opportunities and training

Better communication with my manager

More resources

UK & Ireland Data


How do leaders fit in?



ICBE Comparison: Trust

ICBE Data

5%

16%

21%

16%

74%69%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

"I trust my manager" "I trust senior leaders"

Disagree or Strongly Disagree Neither Agree/Disagree Agree or Strongly Agree



“My manager encourages my talents”

UK & Ireland Data

4% 8%

27%20%

44%

8%

23%

27%36%

25%88%

69%

46% 44%

31%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Engaged Almost Engaged Honeymooners &Hamsters

Crash & Burners Disengaged

Disagree or strongly disagree Neither Agree/Disagree Agree or strongly agree



In your packs..

•Action Plan (p13)

•3 actions I will take to engage myself

•1 action I will take with a specific team member


So what…

…do organisations need to do?


1- Survey less, act more

..or “Why measure with a micrometer if you implement with a sledgehammer?”



Survey less, act more

•Take the pulse.– Who’s engaged– Who’s not– Why

•Look for trends and actionable insights.

•Tailor programmatic strategies.

•Equip and hold leaders accountable.

organisation

Success

Succes

s

Indiv

idual

Max

imum

Satis

fact

ion M

aximum

Contribution



Align, align, align

•Start at the top.

•Communicate strategy constantly– Keep it fresh– Show the math

•Translate into day to day priorities– Make it a 2 way dialogue

•Use technology to enable. organisation

Success

Succes

s

Indiv

idual

Max

imum

Satis

fact

ion M

aximum

Contribution


3 – Redefine “Career”

“I always wanted to be somebody…

…but now I realize I should have been more specific.”

- Lily Tomlin



Redefine ‘Career’

• Clarify what ‘career’ looks like in your organisation.

• Communicate roles for the organisation,employees, managers.

• Help employees determinewhat they want.

– 57% of employees don’t know what they want to do next.

• Provide examples, resources, tools.– How do you communicate

promotions?

• Make development a priority.

organisation

Success

Succes

s

Indiv

idual

Max

imum

Satis

fact

ion M

aximum

Contribution



Leverage managers

•Find out if your managers at all levels are engaged.

•Equip managers to “connect the dots.”– Coaching for

career and performance.

•Hold managers accountablefor organisational valuesand team development, notjust results.

•Remove “bad managers.”

organisation

Success

Succes

s

Indiv

idual

Max

imum

Satis

fact

ion M

aximum

Contribution

Leaders



Pay attention to culture

•Make sure senior leaders set the tone.– Clarifying values, standards

of behavior.– Walking the talk.– Communicating

strategy.

•Align systems.

•Keep investing in your managers.

organisation

Success

Succes

s

Indiv

idual

Max

imum

Satis

fact

ion M

aximum

Contribution

The engagement equation

Tom Barry

[email protected]+44 7970 724253

20 November 2008

mailto:[email protected]

the engagement equation tom barry [email protected] +44 7970 724253 20 november 2008

Documents

brand engagement

engagement different

engagement equationtom

sayemployee engagement

good employee attitude41

employee engagementshrm

poor employee attitude

disengagedicbe data