Keys to Organizational Effectiveness: The Importance of Engaged Employees
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Keys to Organizational Effectiveness:
The Importance of Engaged Employees
“The measurable degree of an employee’s positive or negative emotional attachment to their
job, colleagues and organization that profoundly influences their willingness to learn and
perform at work.”
Employee “Engagement” Defined
An engaged employee is enthusiastically and proudly involved in his or her organization and day-to-day job responsibilities, and engagement keeps employees committed to their work.
“A heightened emotional connection that an employee feels for his or her organization, that influences him or her to exert greater discretionary effort to his or her work.”
- The Conference Board
Employee Engagement Study, July 2012
Why is Engagement Important?Engagement Benchmarks
“Only 58% of public sector employees are fully engaged in their jobs.”
“Depending on global region, industry type and company size, an average of 29% - 33% of employees can be considered at
any particular point in time.”
Engaged public sector employees are…►Twice as likely to stay in their current job►2.5 times more likely to feel they can “make a difference”►2.5 times more likely to recommend their workplace to others►Three times as likely to report being “very satisfied” in their jobs
Revenue: engaged employees play a major role in helping achieve
revenue goals.
Employee retention: engaged workforces enjoy higher retention rates.
Productivity: engaged employees are more productive.
Morale: engaged employees have higher morale.
Creativity: engaged employees are viewed as more creative and
innovative.
Stakeholder loyalty: engaged employees are key to creating more loyal
stakeholders.
Why is Engagement Important?
Getting to “Engagement”
Low Average High0%
20%
40%
60%
80%
100%
31% 33% 36%
7%13%
81%
Leadership Emphasis on Employee Engagement
<50% >50%
Employee Engagement – First Principles
Source: Employee Engagement Benchmark StudyDemand Metric Research CorporationDecember, 2013
None
Other
Employee survey
Productivity metrics
"Hygiene" metrics
Customer sat scores
0% 10% 20% 30% 40% 50% 60%
35%
5%
45%
19%
17%
32%
18%
6%
55%
35%
31%
45%
Engagement >50% Engagement < 50%
Measuring Engagement
“How do you measure effects of employee engagement?”
Source: Employee Engagement Benchmark StudyDemand Metric Research CorporationDecember, 2013
None
Other
Service training
Supervisory training
Internal communications
Feedback programs
Team building
Recognition programs
Skill training
Performance reviews
0% 10% 20% 30% 40% 50% 60% 70% 80%
6%
8%
29%
36%
43%
52%
54%
59%
63%
70%
Creating an Engaged Culture
Source: Employee Engagement Benchmark StudyDemand Metric Research CorporationDecember, 2013
“How do you create and maintain engagement?”
Key First Steps
What are the components of engagement?
How do my levels compare to others’
levels?
How does engagement differ by division, department, region, management
level, etc…?
Measure Engagement Levels
How do the drivers of engagement differ
across various units and levels?
Are current programs focused on
engagement or something less?
Assess Factors Driving Engagement
Recognize and reward engagement
(share stories, recognize good work, reinforce positives)
Remediate areas of disengagement
(create clarity, revise messaging, re-focus
training)
Take Action!
Yes - 0.3
No - 0.67
Not Sure - 0.03
“Do You Have A Formal Employee Survey?”
“In spite of the importance of employee retention to agency success, more than two-thirds of those surveyed do not have
a formal process, such as employee opinion surveys or other research tools, for assessing employee engagement.”
11
Employee Engagement Study, July 2012
Current State of Measurement
Quantifying and Acting on Engagement
2 Key Dimensions to Engagement
Alignme
nt
Empowerment
Engagement
Engagement Segmentation
Alignment Questions:1. I know what is expected of me at work.
2. The mission/purpose of my company makes me feel my job is important.
3. My associates (fellow employees) are committed to doing quality work.
4. I have a best friend at work.
5. In the last six months, someone at work has talked to me about my progress.
Empowerment Questions:6. I have the materials and equipment needed to perform my duties.
7. I have the opportunity to do what I do best every day.
8. In the last seven days, I have received recognition or praise for doing good work.
9. My supervisor cares about me as a person.
10.Someone at work encourages my development.
11.At work, my opinions seem to count.
12.In the last year, I have had opportunities to learn and grow.
Engagement Segmentation
ALIGNED• PRODUCTIVE
CONTRIBUTORS• DO NOT USE THEIR OWN
JUDGMENT OR MAKE THEIR OWN DECISIONS
DISENGAGED
• NO CONNECTION W/ORGANIZATION
• SOURCE OF INCOME ONLY
ENGAGEDMAKE DECISIONS AND TAKE ACTIONS THAT THEY BELIEVE ARE IN THE BEST INTERESTS OF THE COMPANY
EMPOWERED• FEEL FREE TO MAKE
THEIR OWN DECISIONS• DO NOT FEEL
RESPONSIBLE FOR SUCCESS OF FIRM
EMPOWERED
ALI
GN
ED
Step 1:Based on agreement w/each of the 12 Engagement Statements, each Employee can be segmented into Engaged or Disengaged segments based on agreement with specific statements.
Engagement Segmentation
Step 2:Predictive statisticalanalysis can then be performed to determine what attributes of the experience best predict differences between Engaged and Disengaged segments.
DISENGAGED
• NO CONNECTION W/ORGANIZATION
• SOURCE OF INCOME ONLY
ENGAGEDMAKE DECISIONS AND TAKE ACTIONS THAT THEY BELIEVE ARE IN THE BEST INTERESTS OF THE ORGANIZATION.
Experience AttributesDefining
the Difference
Employee Engagement SegmentationBasic Profile: Key Metrics
Employee Engagement Segments
Index: Index of 100 = average for all respondents
Empowered
Engaged
Aligned
Disengaged
Attribute•Satisfaction•Recommend•Aligned w/Mission•Empowered to Act
Index→164→152→168→181
Attribute•Satisfaction•Recommend•Aligned w/Mission•Empowered to Act
Index→121→133→124→166
Attribute•Satisfaction•Recommend•Aligned w/Mission•Empowered to Act
Index→112→131→157→131
Attribute•Satisfaction•Recommend•Aligned w/Mission•Empowered to Act
Index→ 89→ 77→ 65→ 58
“Engaged” Employee Segment Profile
Training is a high priority within the firm.
Members of my team communicate well with each other.
The benefits offered are better than those in other firms.
My group works well as a team.
I have the tools needed to do my job well.
Work environment is professional.
The mission of the firm is well communicated.
I am free to solve customer problems at my discretion.
My supervisor provides regular feedback on performance
My supervisor is a positive influence on me.
60
68
77
78
88
89
93
113
122
132
Agreement Index (Top Box)
Below AverageAgreement
Above AverageAgreement
Employee Engagement SegmentationDemographic Profile Report Example
Employee Demographic Profile by Engagement Segment
Index: Index of 100 = average for all respondents
Below Average
Above Average
Dept: IT Employment Tenure: 1 - 3 yrs Dept: Case Management Level: Non-Supervisory20
70
120
170
138145
34
127
110117
36
74
95 92
112 113
72
53
114
63
Demographic Profile by Employee Engagement Segment
Engaged Empowered Aligned Disengaged
Employee Engagement SegmentationKey Driver Analysis of Engagement
Training
Problem Resolution
Supervision
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
26%
32%
42%
Primary Key Drivers of Employee Engagement
% Importance in Predicting Employee Engagement
Employee Engagement SegmentationKey Driver Analysis of Engagement
Attribute Importance
Supervision 42%
Supervisor is a Positive Influence 22%
Regular Feedback on Performance 20%
Problem Resolution 32%
Feel Free to Solve Customer Problems 17%
Have Tools Needed to Do Job 15%
Training 26%
Training is High Priority 26%
Key Primary/Sub-Drivers of Employee Engagement
Full CircleEmployee Engagement and Organizational Effectiveness
Higher Retention
ProuderEmployees Investment
in Employees
EngagedEmployees
Great StakeholderExperience
LoyaltyStrong
PerformanceResults
Committed Ambassadors
New Service Ideas
Empowered Problem Solvers
Source: Temkin Group
Thank youMike [email protected]