Employee Engagement: Changing Cultures and Managing Talent

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Copyright © 2011 Bersin & Associates. All rights reserved. Page 1 About Us 1 I Love Rewards is an employee recogni/on solu/on that helps companies create authen/c moments of recogni/on to appreciate brilliant performance, and empowers employees to choose their own rewards.

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TLNT Webinar from 5/25/11, presented by Stacey Harris.

Transcript of Employee Engagement: Changing Cultures and Managing Talent

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About Us

1

 I  Love  Rewards  is  an  employee  recogni/on  solu/on  that  helps  companies  

create  authen/c  moments  of  recogni/on  to  appreciate  brilliant  performance,  and  empowers  employees  to  choose  their  own  rewards.    

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Our Purpose

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Daniel Pink

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Register  at  h+p://bit.ly/msPoDI      

Complimentary Webcast Drive-ing Performance By: Daniel Pink and Razor Suleman On June 16th @ 1PM EST

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Employee Engagement Changing Cultures and Managing Talent Stacey Harris Director of Strategic HR & TM Research

Principal Analyst

May, 2011

@StaceyHarrisHR

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About Us

§  Who We Are

•  Bersin & Associates empowers HR and Learning organizations to drive bottom line impact through world class research and consulting

§  Practices •  Enterprise Learning •  Human Resources •  Talent Acquisition •  Talent Management

-  Leadership Development -  Performance Management -  Succession Management -  Workforce Planning

§  Services •  WhatWorks® Membership •  Research-based consulting services •  IMPACT: The industry’s premiere conference on the

Business of Talent

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Research for this Presentation

Employee Engagement: A Changing Marketplace

The High-Impact HR Organization: The Top 10 Best Practices on the Road to Excellence

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Webinar Agenda Changing Cultures and Managing Talent §  Is Assessing and Managing Employee Engagement Important?

§  Drivers Behind Today’s Changing Employee Engagement Market

§  Building and Connecting an Employee Engagement Strategy

§  Selecting and Partnering with Solution Providers

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Growing Interest in Employee Engagement Over 75% of companies regularly assess engagement levels

24%

31% 22%

14%

9%

Experience with Employee Engagement Assessment

Rigorously conducted and analyzed each year

Conducted and analyzed each year

Done on an as-needed basis

Little or no experienve with engagement assessments

© Bersin & Associates - 343 Organizations 2010 Measurement Research

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Leaders See Engagement as a Key Metric Over 65% of Executives Feel it is Important or Very Important

45%

20%

17%

18%

Executive Commitment to Engagement

Very Important, Executives Actively involved

Important, Most Managers Involved

Somewhat Important

Not at all Important

© Bersin & Associates - 343 Organizations 2010 Measurement Research

Additionally, 57% of 1,200 global companies felt Employee Engagement metrics proved the Impact of Talent Management Efforts

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Engagement Metrics Top the Charts They are found on 72% of Senior Leaders top HR reporting tools

72% 70% 66% 63% 60% 55% 54% 53%

© Bersin & Associates - 343 Organizations 2010 Measurement Research

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Are Today’s Engagement Efforts Working Only 35% Felt they were getting positive business outcomes

4%

12%

49%

35%

Not useful at all

Not actionable, but useful insights

Somewhat actionable, some business returns

Highly actionable, with positive business outcomes

Impact of Engagement Efforts

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Worker’s are more Disengaged than Ever WHY -- Is it what we are measuring or what we are doing? §  “Broadly, organizations face something we’ve labeled an "engagement

gap."… only 21% of our sample are engaged,… Worse yet, fully 38% are either wholly or partly disengaged” Towers Perrin

§  “One-Third of Companies Are Troubled by Low Employee Engagement…

Employee engagement—the willingness of workers to go the extra mile at work—took a big hit during the recession and has not bounced back…” BCG and WFPMA

§  “Low employee engagement is pervasive — nearly half of the world's employees are not engaged. This means that for every employee who is contributing to the success of your organization, there's another employee not putting forth maximum effort.” Aon Hewitt

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What is Employee Engagement? 4 Types of Engagement Drivers Were mentioned consistently §  Work Engagement – A connection and appreciation for the work

being accomplished, and a connection to individual performance. §  Company Engagement – A connection and appreciation for the

company, its goals, its leadership and its future. §  Social Engagement – A connection and appreciation for the people

an employee is working for and with on a daily basis. §  Employment Fundamentals – A satisfaction level with base

compensation, safety, healthcare and work environment. A growing trend is to assess not only an employee’s feelings and perceptions on these drivers, but to also assess their actual behaviors in relation to these drivers.

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Engagement Measures Two Current Camps of thought

Connection to Managers Effectiveness

Direct Connection to Performance

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Changing View of Employee Engagement Shifting from Employee Engagement Initiative to a People Philosophy

Employee Engagement Initiative Employee Engagement Philosophy

No connection between individual engagement events, i.e. Surveys, Rewards, Communication

Full engagement strategy with a goal for engaged employees, connected to a Talent and Business Strategy

No ownership of employee engagement efforts and outcomes

Defined ownership and governance to manage, implement, and sponsor the engagement vision

Once a year, annual surveys with simple analysis. With a focus on Benchmarking, and Total Index increases

Annual, quarterly, and/or pulse surveys, focus groups, and external data monitoring (LinkedIn, GlassDoor) with advanced segment analytics

Focus on one-size fits all engagement activities and rewards/recognition models

Engagement efforts incorporated into talent management; customized reward, feedback, & evaluation process focused on the individual

Engagement scores viewed as individual metrics Engagement scores viewed as part of talent metrics, correlated to performance goals

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What is Driving the Need for Change?

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Top 3 Business Challenges

Financial pressures to cut costs Decreasing

Need to accelerate innovation Increasing

Rapid Changing Market Increasing

Business and Talent Challenges

Top 3 Talent Challenges

Gaps in leadership pipeline Decreasing

Improving organizational learning Increasing

Increasing innovation Increasing

© Bersin & Associates, Corporate TalentWatch® Research, Senior HR and Business Executives, 2/2011

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Regional Leadership

Country Leadership

Middle Management

Entry Level

Global Talent Deficit India Graduates Millions, but Too Few Are Fit to Hire 75% of technical graduates and 85% of general graduates in India are unemployable by India’s high-growth industries, including IT and call centers.

BofA’s retail wealth management arm, Merrill Lynch, plans to hire 2,400 trainees in 2011, a 50 percent increase over last year.

“We are entering the era of unparalleled talent scarcity, which will put a brake on economic growth around the world, and will fundamentally change the way we approach workforce challenges.”

China

The Cultural Revolution created a “missing

generation” of talent between 40-55, so expatriates fill most

jobs at the top

Young workers flooding the marketplace, yet most have

inferior preparation, language skills, and technical skills.

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Everything is Connected Today Through Social and Mobile – Internal Cultures are on Display

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Workforces Demographics Today Four Generations Working Side by Side

Traditionalists Born: Pre-1945

Hierarchical, loyal,

motivated by financial rewards and security.

Baby Boomers Born: 1946—1964

Idealistic, competitive

and striving to achieve.

Generation X Born: 1965—1977

Self-reliant, willing to Change rules, tribal

and community-oriented

Generation Y Born: 1978—2001

Confident, socially-

conscious, family centric

and technology savvy

9.8 – Average # of years with a single employer

4.1 – Average # of years with a single employer

8.8 – Average # of years with a single employer

3.3 – Average # of years with a single employer

Bureau of Labor Statistics US, 2010

6% of Workforce

41.5% of Workforce

29% of Workforce

24% of Workforce

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25-34 35-44 45-54 55-64 65+

Workforce Demographics 2018 New talent gaps emerging and increasing diversity

Gap in Emerging Leadership

Gaps in entry level workers

The Inevitable Exodus

Diverse: +33% Hispanic +27% Asian +7.5% Black +11% Women

Under-skilled. (US) 22% of college grads need additional skills to start work

Lack of mobility: Only 7% of new workers able to relocate, vs. 18% in 2008

Bureau of Labor Statistics US, 2010

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Employees Understand their Own Value They are looking for a new value proposition

§  Respect and Partnership §  Transparency and Sincerity §  Communications §  Clearly Defined Expectations §  Feedback and Recommendations §  Work that is Engaging §  Social Environments that are Engaging §  Balance in Life and Work §  Empowerment §  Opportunities and Development §  A Focus on their Resume

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Financial Reporting and Valuation

§  European Union Laws Require Some Disclosure

"To the extent necessary for an understanding of the company's development, performance or position, the analysis [in the annual review] shall include both financial and, where appropriate, non-financial key performance indicators relevant to the particular business, including information relating to environmental and employee matters" (Directive 2003/51/EC)

§  Financial analysts are more likely to look at non-financial performance indicators in their valuations when companies are already trending up

§  Business leaders are looking for ways to show the overall strength of their talent in their financial evaluations. Succession Planning and Engagement are the key metrics.

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High-­‐Impact  Talent  Management  Framework®  Leading to a New Approach to Talent Management and Engagement

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Building and Connecting an Employee Engagement

Strategy

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What is an Engagement Strategy?

§  Defined goals and expectations what Employee Engagement will drive;

§  Defined roles of ownership and governance in managing, implementing and sponsoring the employee engagement strategy;

§  A clear definition of employee engagement, defined in terms of the impact an engaged employee will have on your organization;

§  An employee engagement theory and model that your organization follows;

§  A process for assessing and analyzing employee engagement, and its impact on your business

§  Plans for communicating the findings from the employee engagement assessment process and executing on a clear action plan for improvements; and,

§  Plans for integrating improvement action plans into hiring process, development, performance assessments, leadership approach, and rewards strategies

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Case in Points Engagement Strategies

§  Phillips •  Engagement is the highest visible HR Metric in their organization. Every

leadership position has an engagement score on their own personal scorecards.

§  WellPoint •  Rethinking their standard Engagement approach and focusing on

changing their culture and management behaviors. §  Lowes

•  Engagement is a performance driver. Tied store level engagement and performance metrics to a single leadership role in the store.

§  Credit-Suisse •  Engagement is seen as a Key Indicator for forecasting performance.

Engagement from high potential and high performers is evaluated regularly, and is used to identify possible future performance problems.

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Employee Engagement Strategies Only as good as their follow up actions

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Case in Point, Marriott Calgary Driving Engagement for Everyone

Company: • Fortune:12th Yr. Ranked Most Admired Lodging • 2,800 Hotels World-Wide • Philosophy – “If we take care of our associates, they’ll

take care of our guests”

Goals: •  Increase Employee Engagement Scores of 67% in 2007 •  Increase focus on company Core Values •  Increase rewards for the entire organization, even back

of the house roles (improve peer & manager feedback)

Outcomes: • Employee Engagement Scores increased 2008,- 72%,

2010 - 83% (15% increase in Total Rewards Score) •  Increased “Back of the House” Recognition •  Increase in incentivized upselling - $50,000 increase in

upselling revenue

“ Associate engagement and satisfaction is just as heavily weighed as financials and guest satisfaction, on our balanced scorecard.“ HR Leader

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Solution Provider Partnering

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55% Obtain Help in Engagement Efforts

© Bersin & Associates - 343 Organizations 2010 Measurement Research

55% 34%

11%

How Do you Implement Employee Engagement

Consulting Firm Internally Developed Other

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Wide Range of Solution Provider Services From Simple Survey to Full Strategies

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This is a Long Term Relationship Select Carefully

Make sure to look at: §  Their experience and background – both breadth and depth; §  Science behind their engagement theories; §  Services offered prior to assessment efforts; §  Assessment services and tools – data gathering methods; §  Analysis approach, services, tools, and outputs; §  Communication and planning services §  Cultural fit!

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Organizational Culture It will grow with or without guidance and leadership

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People Culture and Performance Needs Culture is set by behaviors and behaviors create desired performance §  Corporate Values –Vital few beliefs regarding what is important, which all members

of the organization are expected to live by and demonstrate daily,

§  Corporate Principles – Principles are beliefs about what is always true. For example, “The customer is always right,” is a statement of principle.

§  Global Awareness – The level of multicultural and global understanding and appreciation within your organization.

§  People Brand – People brand is the concept of the “brand” of people who work for your organization.

§  Business Performance Expectations – Business results that can be directly attributed to the culture and people within the organization.

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Case in Point Selected Partner based on Cultural Goals

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Key Take Away’s Rethinking Employee Engagement

§  Before starting ensure readiness to invest resources and time to manage the process, and take action recommendations.

§  Create a cross-organizational team to define the strategy and goals

§  Identify a clear definition of employee engagement and expectations

§  Identify solution providers based on partnership, and strengths in top priorities

§  Conduct an RFP process, as extensive as an enterprise-wide system

§  Consider the organization’s culture, work environment and geography before selecting primary assessment methods and delivery tools.

§  Communicate often ensuring everyone understands goals and outcomes

§  Share findings at all levels, with clearly prioritized actions and expectations

§  Develop a dynamic process that works with your business and is owned by the organization’s leadership

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Questions & Comments

Feel free to contact Stacey Harris with Questions or Comments at: [email protected] Or Connect on LinkedIn: http://www.linkedin.com/in/staceyharris Or Follow at @StaceyHarrisHR