Post on 11-Jan-2016
The 9th Annual Engagement and Retention Research
Study
Christopher Mulligan
Chief Executive Officer
Commit. Engage. Excel.
Today’s Briefing
• National Business, Engagement and Retention Trends• What are Organizations Doing
to Drive Engagement and Retention• Discover What “Best in Class”
Organizations are Doing Differently• Strategies and Tactics for 2013
© TalentKeepers
• We are a leader in:- Award-winning engagement and retention solutions- Proven results in boosting performance, retention, service and business results
• We help our clients address business issues with a range of talent management strategies, tactics and tools- Employee Engagement - Employee
Retention- Standard & Customized Surveys - On-boarding - Leadership Development - Research &
Benchmarking- Co-worker Collaboration
3
What We Do
© TalentKeepers
Select Clients we have helped to enable their employees to Commit, Engage and Excel
Results are clear…Engaged Employees Deliver Better Performance
5
Happy and Engaged Employees:
31% Higher Productivity 37% Higher Sales 3x Greater Creativity
Harvard Business Review, January 2012
People & Strategy, April 2012
Aberdeen Group, August 2012
Talent Management Magazine, December 2012 © TalentKeepers
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TalentKeepers 2013 Engagement and Retention Trends Survey (TERTS) Participation
© TalentKeepers
• 618 U.S. based organizations
• Company Size (Employees): 5000+ 26%
500 – 5000 36% < 500 38%
• 22 Industries Represented; top 5 are: Financial Services/Insurance Healthcare/Pharmaceutical
Business ServicesRetail Sales Educational Services
Employment and Workplace Trends
REMOVED SLIDES
Human Resources
Operations
Other
Sales
Marketing
Finance
Customer Service
Legal
69%
31%
Job Function of Survey Respondents
© TalentKeepers
Individual contrib-utor
Supervisor
Manager
Director
Vice President or higher
15%
4%
30%
28%
23%
12%
3%
24%
31%
29%
Job Roles of Survey Respondents
20132012
14%
14%
12%
9%7%
6%
5%
5%
4%
4%4%
3% 3%Participating Industries
Finance/Insurance/Real Es-tate
Healthcare/Pharmaceutical
Business Services
Retail
Educational Services
Automotive-Mfg.
Government
Transportation
Oil/Gas/Petrochemical
Computer/Electronics/IT
Hospitality
Aerospace
Telecommunications
National Business, Engagement
and Retention Trends
Significant changes to Compensation & Benefits
The addition or removal of major business practices
No significant changes have occurred
Significant layoffs, downsizing, or rightsizing
Changes in business strategies
31%
27%
11%
43%
59%
29%
22%
16%
33%
58%
19%
22%
17%
23%
54%
18%
18%
21%
21%
50%
Organizations are Stabilizing as the Economy Improves
2013
2012
2011
2010
Decrease more than 26%
Decrease 21% to 25%
Decrease 11% to 20%
Decrease 1% to 10%
No Change
Grow 1% to 10%
Grow 11% to 20%
Grow 21% to 25%
Grow more than 26%
1%
1%
4%
13%
31%
39%
7%
2%
2%
2013 Forecast for Labor Growth
Strongly Disagree
Disagree Slightly Disagree
Slightly Agree
Agree Strongly Agree
4% 4%
9% 10%
34%
38%
7%8%
5%
18%
30%
33%
Employee Engagement is a Strategic Priority for My Organi-
zation
2013 2012
Strongly Disagree
Disagree Slightly Disagree
Slightly Agree
Agree Strongly Agree
10%
4% 4%
11%
34% 35%32%
68%For Best in Class, the
Strategic Priority is Clear
Best in Class
Others
Training costs
Stress
Service quality
Recruiting costs
Lost organizational knowledge
Productivity
Employee morale
26%
67%
39%
35%
54%
66%
76%
41%
42%
44%
48%
54%
67%
74%
Top 7 Areas Impacted by Employee Turnover
and Lack of Engagement
2013
2012
© TalentKeepers
Engagement vs. Disengagement
Higher productivity
Increased morale
Increased commitment
Higher service quality
Stronger co-worker relationships
Higher performance evaluations
Better attendance
Decreased turnover
Better safety records
Decreased job burnout
No difference
87%
84%
82%
71%
70%
69%
65%
56%
38%
36%
2%
Engaged Employees in Our Orga-nization, When Compared to Dis-
engaged Employees, Have:
Employee Engagement Strategies
65%
18%
17%
Yes No, but under consideration No budget for 2013
A Majority Now Budget Funds and Resources to Support Engagement Initiatives in 2013
18Yes No
100%
56%
44%
Which Organizations Budgeted Funds to Support Employee Engagement Strate-
gies in 2013?
Best In ClassAll Organi-zations
Not at all effective
Slightly effective
Moderately Effective
Very Effective
5%
28%
52%
15%
2%
16%
57%
25%
How Effective is Your Organization at Retaining High Performing Em-
ployees?
Budgeted for 2013 engagement strategies
Yes No
70%
30%
53%47%
Best in Class: Strategies are in Place to
Engage and High Performers
Best in Class
All Organizations
© TalentKeepers
Not at all Effec-tive
Slightly Effective Moderately Effective
Very Effective0%
10%
20%
30%
40%
50%
60%
70%
Best in Class are More Effective at Retaining High Performing Employees
Best in ClassAll Organizations
26%
34% 34%
6%9%
21%
62%
8%
Do You Link Engagement Metrics to Performance and Profitability?
Budgeted for 2013 engagement strate-giesDid not budget for 2013 engagement strategies
100%
Best in Class
43%57%
All Organizations
Yes
No
Do you link employee engagement metrics to organizational performance
and profitability?
17%
83%
Direct Cost
YesNo
9%
91%
Indirect Cost
Do you know the cost of attrition and lack of engagement for your
organization?
Normal Survey RespondentsJob/Career Factors
Leadership Factors
Organizational Factors
Co-Worker Factors
59%
25%
10%
6%
48%
35%
12%
5%
Why are People Leaving? Job and Career are Rising in Im-
portance
2012
2013
Poor fit based on the skills required
Missed expectations on job duties and/or work schedule
Inadequate assimilation and coaching
Lack of advancement opportunities
Inadequate training
Co-worker conflict
37%
30%
17%
12%
4%
1%
34%
31%
18%
13%
1%
2%
The Biggest Reason New Hires Leave Organizations within the
First 12 Months
2012
2013
Around 2 years
Around 3 years
Around 5 years
More than 10 years
23%
54%
18%
5%
Attrition After One Year of Employment:
High Risk at 3 Years
Lack of upward career advancement opportunities
Lack of career growth experiences
Leadership
Job burnout
Retirement
Lack of skills development
Co-worker conflict
50%
21%
11%
10%
3%
3%
2%
43%
23%
16%
10%
4%
3%
1%
The Biggest Reason Employees with More Than One Year of Tenure Leave
2012
Engagement and Retention Trends
What are Organizations doing
to Engage and Retain their Staff?
© TalentKeepers
BEST IN CLASSOn-boarding tools
Career planning and development
Succession planning
Anonymous surveys
Job specific training
Action planning
Competitive benefits
Financial bonuses/incentives
Tuition reimbursement
Engagement goals for leaders
Leader/Employee coaching meetings
Non-financial incentive programs
54%
47%
46%
44%
41%
40%
39%
38%
38%
38%
37%
36%
Strategies being used in 2013 to engage and retain talent
BEST IN CLASSSenior leadership visibility
Vacation & holiday plan
Competitive compensation plans
Customer Satisfaction Training
Flexible work schedules
Multi-rater/360 surveys
Engagement/Retention leader training
Casual dress
Retention goals for leaders
Virtual offices/work from home
Promotion programs
Non-anonymous surveys
35%
35%
34%
30%
29%
26%
25%
22%
21%
19%
12%
6%
Strategies to Retain and Engage for 2013, continued
16%
19%
17%14%
20%
6%4% 4%
Who is held accountable for em-ployee engagement and retention?
ExecutivesSenior LeadersMid-Level LeadersFront-line LeadersHuman ResourcesTraining De-partment Recruiting Department No one is accountable
© TalentKeepers
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Factors Contributing to Employee Engagement and Retention
© TalentKeepers
Job Factors
Leadership Factors
Co-Worker Factors
Organization Factors
13%
11%
5%
8%
43%
34%
32%
24%
39%
44%
48%
50%
5%
11%
15%
18%
How effective is your organization at leveraging the following Employee
Engagement Factors?
Not at all Effective Slightly Effective Moderately Effective
© TalentKeepers
2012
2013
11%
13%
36%
43%
38%
39%
15%
5%
Job/Career Factors are the #1 Reason Employees Leave, yet Organizations are Least Effective at Leveraging and
Getting Worse
Not at all Effective Slightly Effective Moderately Effective
© TalentKeepers
BEST IN CLASS
Career Pathing
52%
Training & De-velop-ment 28%
Sched-ule Flex-ibility 10%
Succession Planning 3%
Other 6%
If Improved, What Can Organizations Do to Positively Impact Job and Career Is-
sues in 2013?
2012
2013
11%
11%
37%
34%
40%
44%
11%
11%
Organizations are Slightly Improving Their Ability to Leverage Leadership
Factors to Drive Engagement and Retention
Not at all Effective Slightly Effective Moderately Effective
© TalentKeepers
Leadership Strategies
Job/Career Strategies
Co-Worker Strategies
Organization Strategies
44%
38%
5%
13%
If improved, Leadership Strategies Would Have the Greatest Impact on Employee
Engagement
Strongly Disagree
Disagree Slightly Disagree
Slightly Agree
Agree Strongly Agree
2%
11% 11%
25%
39%
12%
Are Your Leaders Challenged When it Comes to Leading
Employees of Different Generations?
28%
72%
But, Few Leaders Are Being Trained to
Manage Generation Y Employees
YesNo
© TalentKeepers
Extras / Unedited
Com-munica-
tion 31%
Train-ing & Devel-opment
24%
Organi-zational Align-ment 18%
Relationship Building
13%
Coach-ing & Feed-back 10%
Other 4%
What Should Leaders Do to Have the Greatest Impact on Engagement and
Retention?
What people are saying about “communication”…
“We ask our employees what’s important to them, and then LISTEN.”“Cascade communication, share the goals and information with employees…”“Communicate well, develop managers to use employee feedback to improve the workgroup.”“Communicate, engage, give middle managers more exposure and say in how to manage their staff.”
© TalentKeepers
New for 2013: “Best in Class” Organizations
“Best in Class” are the Top 10% of all organizations that:
1. Prioritize engagement and retention as a key strategy2. Commit budget and resources to drive engagement and
retention3. Drive high engagement and retention of top performing
employees at all levels4. Link engagement and retention measures to business
metrics5. Regularly survey employees to gather data to guide
planning6. Require planned meetings between leaders and
employees to discuss engagement, fulfillment and more © TalentKeepers
Yes No
100%
35%
65%
Employee Engagement Surveys are Administered at Least Once a Year
Best in Class
All Organi-zations
58%
42%
15%12%
24%
9%
17%
23%
Excluding Performance Reviews, How Often do Planned Meetings to Discuss
Engagement Occur
Best in ClassOthers
Strategies & Tactics to become “Best in Class”
in 2013
© TalentKeepers
Engagement & Retention Challenges for 2013
47
• Growing stability in the economy is raising expectations among key employee groups
• Organizations slow to respond risk being left short of talent in business-critical positions
• Emergence of Gen Y will further shape definitions of organization culture and workplace dynamics
• Leaders at all levels, always important to success, will be faced with greater responsibility for energizing and keeping talent and promoting a stable work environment
7 Strategies and Tactics for 2013
© TalentKeepers
1. “Size the Problem” - Calculate the cost of disengagement and attrition to build the business case for action.
2. Actively engage senior executives to drive accountability for engagement and retention in all levels of leadership.
3. Link engagement and retention metrics to business results to build sustainability and to negotiate for resources.
7 Strategies and Tactics for 2013
© TalentKeepers
4. Educate leaders on the value of engagement, their influence on their teams, and develop their engagement skills.
5. Establish Engagement Metrics. What gets measured, gets done! Hold stakeholders accountable for improving key engagement metrics just as you do sales, service and productivity metrics.
6. Target your best performers. Motivating and keeping your most productive talent strengthens your cultures, fuels team performance and ensures results.
7. Focus on High-Impact Areas. On-Boarding, Job/Career Discussions, Leadership Engagement Skills.
• TAKE: 9th Annual Talent Engagement and Retention Trends Survey• www.TalentKeepers.com-> Research tab->2013 Research Survey• BENEFIT: Benchmark your data compared to “Best in Class,”
total results, or by industry
• REQUEST: Our research report by giving us your business card so we can send a copy once it is released.
• TRIAL: One of the top programs being used in 2013• Onboarding tools, career development, succession planning, and
engagement surveys• BENEFIT: Start performing like a “Best in Class” organization
Our Gift To You
Thank You!
Questions?