Excellence through People Engagement · PDF file7 What Is Engagement? Engagement is the state...

© 2013 Aon Hewitt. All Rights Reserved.

Excellence through People Engagement Neil Crawford

Rob LewisPartners, Aon Hewitt

People Engagement Is a Key Driver of the EIW Standard

2 © 2013 Aon Hewitt Inc. All Rights Reserved.

Strong Correlation Between Engagement and Excellence


Increasing Commitment to Excellence and Quality

Incr

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entAon Hewitt’s research

shows that highly engaged workforces are also highly committed to excellence and quality

Source: 2011 Best Employers in Canada Study: Special Research

Strong Correlation Between Engagement and Health


Aon Hewitt’s research also shows that highly engaged workforces have less stress and better personal health

Source: 2009 Best Employers in Canada Study: Special Research

Declining Personal Health

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Increasing Stress

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Stress

Personal Health


Why Engagement Matters

Strong link between business performance and engagement...

Source: Hewitt’s Double Digit Growth Research

39% of the variance in business results is a

function of engagement R = 0.63

39% of the variance in business results is a

function of engagement R = 0.63

Employee engagement

Better business results


Why Engagement Matters

6.92

High Engagement (65% & Above)

8.69

Moderate Engagement (45% to 65%)

# days absentper employee

Family or personal leaveLong-term disabilityShort-term disabilityOccupational

12.99

Low Engagement (Below 45%)

7

What Is Engagement?Engagement is the state of emotional and intellectual commitment to an organization

79% of employees are engaged at a typical Best Employer

They consistently say positive things about the

organization

Engaged employees display 3 behaviours

They intend to stay with the organization

They strive to achieve above and beyond what’s expected in their daily role

SAY STAY STRIVE

© 2013 Aon Hewitt Inc. All Rights Reserved.

8

Drivers of Engagement Engagement

ACTION AREAS BEHAVIOURS

ENGAGEMENT Opportunities

Qualityof Life /Values

Work/Motivation

Procedures

People

Total Rewards

►Senior Leadership►Manager Once Removed►Manager►Co-workers

►Sense of Accomplishment►Resources►Work Tasks

►Pay►Benefits►Retirement

Savings►Recognition

►People / HR Practices►Managing Performance►Work Processes

►Career Opportunities

►Learning andDevelopment

►Work / Life Balance►Physical Work

Environment►Employer Reputation►Employer Health

and Well-Being►Corporate Social

Responsibility

SAY

STAY

STRIVE

Engagement Drivers Provide Direction for Action



Five Key Characteristics of Best Employers


Engagement Zones


% rating executives highly effective

75%

51%

24%

91%80%

66%

High Zone Moderate Zone Low Zone



75%91%

51%

80%

24%

66%

Employees Executives


75%

51%

24%

91%80%

66%




75%91%

51%

80%

24%

66%

Employees Executives

1. Leadership Excellence

Executives:live our values throughtheir behaviour and actionstreat employees as our mostvalued assetcommunicate openly and honestlyprovide clear direction for the futuremake me feel positive aboutour futuremake good business decisions


2. Highly Effective Managers

% rating own manager highly effective

47%61%

75%


% rating own manager highly effective


75%61%

47%

% of people managers who are engaged

44%62%

82%


% of people managers who are engaged


82%62%

44%

My Manager:displays ethics and integritysupports me to succeedcares about my health & well-beingaddresses my questions/concernssets clear expectations and goalsknows my job well enough to assess my performancegives regular feedback so I can improvedeals with poor performershelps me develop and grow in my jobinspires me to do my best workappreciates my effortsmakes sure we celebrate our success


Supporting Managers To Be Effective

I get the support I need to successfully manage othersI have enough time each day to coach and develop my teamI have the tools and resources I need to provide valuable career advice to individuals on my teamI have the training / development / coaching I need to provide valuable career advice to individuals on my teamI receive effective feedback from my manager on how my leadership style influences my teamI get the support I need to help people on my team improve their performance


Supporting Managers To Be Effective

High Manager Support

Moderate Manager Support

Low Manager Support

3%

68%

29%

High Zone(65% and Above)*

6%

44%49%

Moderate Zone(45% to 64%)*

12%

36%

52%

Low Zone(Below 45%)*


Upward Evaluation More Commonin High Engagement Organizations


Employees have the opportunityto evaluate their manager

(bottom-up appraisal) 50%

53%

73%

Employees have the opportunity to evaluate their peers

33%

67%

59%


Low Engagement Zone

35%

52%

59%% sense of accomplishment

% enjoy day to day work

% rating productivity high

59%52%

35%

Low Engagement Zone

Moderate Engagement Zone

56%

64%



% rating productivity high64%

56%

69%Moderate Engagement Zone

High Engagement Zone

72%

75%




High Engagement Zone80%

75%72%

Low Engagement Zone

35%

52%




59%52%

35%

Low Engagement Zone


56%

64%




56%



72%

75%





75%72%

Low Engagement Zone

35%

52%




59%52%

35%

Low Engagement Zone


56%

64%




56%



72%

75%





75%72%

My job fits my abilities andexperienceI have the tools and resourcesto be productiveOur work processes help mebe productiveI can make the decisions I needto do my job wellI am involved in decisions thataffect my jobI have good opportunities to improve my skills in my current job

3. Enable Employee Productivity


4. Value & Appreciate Employees

My opinion countsMy co-workers value my inputeven when my opinions differI often get positive feedback formy workMy pay is appropriate formy roleI appropriately share inour successI feel valued and appreciatedfor my contributions

% highly valued and appreciated

66%

46%28%


% highly valued and appreciated


66%46%

28%


Effectiveness of Recognition PracticesVaries More than Prevalence

Manager behaviour is a key driver of recognition effectiveness

Does your organization formally budget for employee recognition?

(% = Yes) 67%

88%

89%

Does your organization have a formal, “just-in-time” recognition program to

recognize those who go “above and beyond”?(% = Yes) 50%

73%

75%

Do front-line managers in your organization have a discretionary budget to recognize

“above and beyond” performance?(% = Yes) 17%

65%

73%



5. Deliver on the Employee Experience

We have an excellent reputation in the communityOur public image matches what it’s like to work hereThis organization delivers on the promises it makes to employeesI can clearly explain what’s different about working hereI am proud to work hereThis is a best place to workfor someone with my skills andexperience

% rating employees experience highly

78%57%

22%


% rating employees experience highly


78%57%

22%


The Engagement JourneyHas Three Broad Tracks

3. Integrated Roadmap for Development and Execution

2. Disciplined Action Using Employee Feedback

1. Top to Bottom Strategic Alignment Customers/Clients, Organizational Objectives, People


Creating Top to Bottom Alignment

Desired Employee Experience“The Deal”

Desired Employee Experience“The Deal”

21

Leadership & TalentManagement Strategy

HealthStrategy

Total Rewards Philosophy

ContentCommunication

Delivery

Organizational Aspirations, Goals, and Needs

Organizational Aspirations, Goals, and Needs

Employee Aspirations, Goals, and Needs

Employee Aspirations, Goals, and Needs


Understand the full power and potential of building and sustaining

high engagement

Identify what’s driving engagement

and mobilize to take action

Implement meaningful action to improve engagement and

sustain momentum

Create an engaged

workforce, committed to

your organization’s

success

Disciplined Action Using Employee Feedback


Integrated RoadmapDevelopment and Execution


Build Culture that Values & Appreciates

Employees

Address Productivity Barriers

Engage Managers & Enable Effectiveness

Define the Desired Employee Experience

Get Leadership Commitment

Deliver Employee Experience

Making the Journey to High Engagement

Excellence through People Engagement · PDF file7 What Is Engagement? Engagement is the state...

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