Employee Engagement Trends 2013

Employee Engagement Forum Belgium - 2013

JUNE 6th, 2013 BRUSSELS

Welcome

01 Introduction Nico Van Dam (Hay Group)

3 © 2013 Hay Group. All rights reserved

15:30 Introduction

Nico Van Dam – Hay Group

15:45 Insights from Engagement@Work 2013 Research – Belgium

Nathalie Sterckx – Hay Group

16:20 Panel discussion Translating your employee engagement survey results

into an action plan with impact

Lucrèce Reybroeck – Corporate HR Director, Euroports

Patrick De Deken – Site Manager Antwerp, Ineos Oxide

Patrick Janssens – Member of Flemish Parliament

Moderator: Sonja Brouwers – Hay Group

17:10 Reception & Networking

Agenda for today


When engagement meets enablement, it translates into better business performance

4.5x revenue growth versus companies in the

bottom quartile on both

measures

54 percent reduction in voluntary staff

turnover

50 percent more likely to outperform

expectations

People are

Source: Based on linkage case studies using Hay Group’s

global normative database


Why does employee engagement matter?

CEO Top Challenges in 2013

1 Human Capital

2 Operational Excellence

3 Innovation

4 Customer Relationships

5 Global Political / Economic Risk

Top 5 strategies to meet

Human Capital Challenges

1 Grow Talent Internally

2 Provide Employee Training &

Development

3 Raise Employee Engagement

4 Improve Performance

Management Process and

Accountability

5 Retain Critical Talent Source: Conference Board 2013

Trend 1 Engagement levels are dropping


What have we done to our employees?

salary freezes & pay cuts...

salary moderation...

downsizing & company closures...

cost cutting...

more with less...

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=O0utfsLw9ZOgVM&tbnid=EWmqZeHdIIJ7UM:&ved=0CAUQjRw&url=http://vbo-feb.be/nl-BE/Actiedomeinen/HR-en-personeel/Loonvorming/Bekendmaking-van-KB-dat-loonstop-oplegt-voor-periode-2013-2014/&ei=ileZUdiUA42U0QXUx4HYCw&bvm=bv.46751780,d.d2k&psig=AFQjCNG_MsVxRJb7XQOnCCGGnoL9xn4i1Q&ust=1369090272171328

http://www.google.co.uk/url?sa=i&source=images&cd=&cad=rja&docid=oxp81t4x2bXZSM&tbnid=JyQVXYemKBKczM:&ved=0CAgQjRwwAA&url=http://www.hbvl.be/nieuws/economie/aid1319005/1-300-banen-bedreigd-bij-arcelormittal-in-luik.aspx&ei=4-2YUf-iG-K80QXNk4CwBQ&psig=AFQjCNHKnxJxd6KAHEa7ltvGY7NTjjwe9w&ust=1369063267506983

http://www.google.be/url?sa=i&rct=j&q=cost+cutting&source=images&cd=&cad=rja&docid=ycIpDzCqIwXyYM&tbnid=4JYJhAJVohZIUM:&ved=0CAUQjRw&url=http://datachiefs.com/2012/11/where-do-cios-see-their-best-opportunities-for-cutting-costs/&ei=6ASjUbDuEsiU0AWg54HYDg&bvm=bv.47008514,d.d2k&psig=AFQjCNHwCv81kBfO4k4meKhPFp7FsqtWTA&ust=1369724515405457


Engagement levels in Belgium are dropping ...

Belgium

Engagement

indicator

(% employees

willing to walk

the extra mile)

2010* 60%

2011* 55%

2012-13** 53%

Intention to stay

> 5 years

(% employees)

74%

65%

65%

(*) Source: Hay Group Insight Employee Opinion Databases

(**) Source: Hay Group Engagement@Work Research Belgium (n=1393)

Trend 2 Coming up... Massive talent shortages around the world


Massive talent shortages around the world...

“As of Jan.1, the oldest of

America’s baby boom

generation started turning

65 at a rate of 10,000 a day”

Source: NY Times, 2011

? As unbelievable as it may seem, this is

precisely the situation China now

confronts.

“Engineers topped the list of job titles

experiencing talent shortage”

Source: Manpower’s ‘2011 Global Talent Shortage Survey

Two thirds of CEOs believe they’re facing a limited supply of skilled candidates Source: PWC Annual CEO report 2011

One in five of all senior executives in the Fortune 500 is eligible for retirement now Source: Rothwell & Associates

China’s impending talent shortage “A labour shortage, with a population of

1.3 billion? As unbelievable as it may

seem, this is precisely the situation

China now confronts.”

Source: Online Asia Times

Trend 3 Coming up... Global talent exodus as economy picks up


Global talent exodus as economy picks up...

Global employee turnover

500

550

600

650

700

750

800

850

900

20.0%

20.5%

21.0%

21.5%

22.0%

22.5%

23.0%

23.5%

24.0%

2010 2011 2012 2013 2014 2015 2016 2017 2018

Total employees (right axis) Employee turnover rate (left axis)

Forecast

2014 will see the sharpest

increase in employee turnover

Source: Hay Group & OECD & CEBR analysis, April 2013


Emerging economies to lead turnover spike Belgium to follow in 2015

Timing and magnitude of global turnover spikes, 2012-2018

35%

30%

25%

20%

15%

10%

5%

Year of sharpest turnover increase

Mature economies Emerging economies

Em

plo

ye

e tu

rno

ve

r ra

te

2012 2013 2015 2014 2016 2017 2018 2019

Indonesia

Peru

Russia

Poland

Colombia

India Mexico

Brazil

China

USA Australia

Canada

UK

Spain

Netherlands

France

Italy

Germany

Belgium



Employee turnover trends for Belgium

12% in 2015

Turnover in Belgium will further

decline in 2013 to 11.1%

2014 will see a rise in turnover

again, with the sharpest rise

expected in 2015 as economic

activity picks up (12%)



Call for action…

02 Engagement@Work 2013 Research – Belgium Nathalie Sterckx (Hay Group)


Employee Effectiveness Model

Clear & promising direction

Confidence in leaders

Respect & recognition

Quality & customer focus

Development opportunities

Pay and benefits

Performance management

Authority and empowerment

Collaboration

Work, structure & processes

Resources

Training

Employee

Effectiveness

Engagement

Commitment

Discretionary effort

Enablement

Optimized roles

Supportive environment

Financial

performance

Customer

satisfaction

Attraction and

retention of talent

Employee

performance

Business Results

Drivers


View the results through multiple lenses

Dimensions of engagement and enablement 72%

Priorities and action planning

Drivers of engagement / enablement / retention

Comparison to benchmarks

Employee effectiveness profile


Employee Effectiveness Profile – Belgium

HIGH

DETACHED EFFECTIVE

INEFFECTIVE FRUSTRATED

LOW HIGH Engagement

En

ab

lem

en

t

Frustrated employees will… break through

break down,

or break free

14% 32%

39% 15%


Engagement Which dimensions score the highest?

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Pay and benefits

Training


Work, structure and process

Collaboration




Respect and recognition

Resources

Clear and promising direction

Quality and customer focus

47%

52%

67%

67%

72%

78%

% Positive

Benchmark

Belgium versus Europe

-1

-1

3

2

0

0

3

-1

-2

3

-1

0


Worldwide engagement


Enablement Which dimensions score the highest?

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Pay and benefits

Training



Collaboration





Resources



51%

55%

55%

64%

64%

68%

% Positive

Benchmark


-1

-1

3

2

0

0

3

-1

-2

3

-1

0


Employee effectiveness Which dimensions score the highest?

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Pay and benefits

Training



Collaboration





Resources



47%

51%

52%

55%

55%

64%

64%

67%

67%

68%

72%

78%

% Positive

Benchmark


-1

-1

3

2

0

0

3

-1

-2

3

-1

0


What really drives engagement?

Clear & promising direction



Quality & customer focus


Pay and benefits

1. Respect and recognition

2. Confidence in leaders

3. Clear and promising direction

4. Development opportunities

5. Quality & customer focus

6. Pay and benefits

0.600

0.517

0.488

0.477

0.423

0.399

R²


What really drives enablement?

1. Authority and empowerment

2. Work, structure & processes

3. Collaboration



Collaboration


Resources

Training

0.551

0.536

0.529

0.520

0.486

0.377

R²

4. Performance management

5. Resources

6. Training


What makes people stay?

What makes

people stay?

Trust in company

and leadership

Environment

for success

Room for

growth

A fair exchange Authority

and influence


Retention – There is some work to do - Belgium

76%

57%

49%

Concern over

direction and goals Unsure about achieving

career objectives

Concern over fairness

compensation

Enough authority to

effectively perform their roles

Belief firm is effectively

managed and well run What makes

people stay?

Trust in company

and leadership

Environment

for success

Room for

growth

A fair

exchange

Authority

and influence

37%

65%


Summary: Key drivers of Engagement - Enablement - Retention




Engagement

Authority & empowerment


Collaboration

Enablement

Room for growth

Authority & influence

Perceived fairness of pay

Retention

03 Panel discussion Moderator: Sonja Brouwers (Hay Group)


Once questionnaires are sent in….

Set priorities and come up with a clear plan

Keep talking with your employees

Create ownership amongst line managers

Lucrèce Reybroeck Corporate HR Director - Euroports

Patrick De Deken Site Manager Antwerp – Ineos Oxide

Patrick Janssens Member of Flemish Parliament

04 Conclusion Nico Van Dam (Hay Group)

Employee Engagement Forum

Thank you

Employee Engagement Trends 2013

Business

Transcript of Employee Engagement Trends 2013