The State of Employee Engagement - DecisionWise€¦ · 2014 Revenue Less than $1 million $1...

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815 W 450 S, Springville, UT 84663 USA // +1.801.515.6500 // decision-wise.com The State of Employee Engagement A comprehensive look at employee engagement best practices from over 200 organizations around the world

Transcript of The State of Employee Engagement - DecisionWise€¦ · 2014 Revenue Less than $1 million $1...

Page 1: The State of Employee Engagement - DecisionWise€¦ · 2014 Revenue Less than $1 million $1 million - $24 million $25 million - $99 million $100 million - $499 million $500 million

815 W 450 S, Springville, UT 84663 USA // +1.801.515.6500 // decision-wise.com

The State of Employee

EngagementA comprehensive look at employee

engagement best practices from over

200 organizations around the world

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2 Agenda

1. Methodology

2. Demographics

3. Overall Findings

4. Insights

5. Best Practices

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3 Methodology

ObjectivesUnderstand the importance of Employee EngagementUnderstand what organizations are doing to measure Employee EngagementUnderstand what is working to improve Employee Engagement

Survey Overview31 questions, including one open-ended questionSeven demographic questions227 responses from around the world (163 US/Canada)

Survey MeasuredUnderstanding of EngagementImportance of EngagementPerceived outcomes of EngagementHow Engagement is measuredEngagement levels in organizations

Statistical AnalysisDescriptive summaryCross tabComparisons

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4 Company Size

Over 200 organizations represented (20+ Industries).Over half of companies have 1,000 employees or more.

3%

22%

12%

11%4%

11%

6%

31%

2014 Revenue

Less than $1 million

$1 million - $24 million

$25 million - $99 million

$100 million - $499 million

$500 million - $999 million

$1 billion - $4.99 billion

$5 billion+

Don't Know

6%7%

21%

11%27%

9%

17%2%

Number of Employees

1-24

25-99

100-499

500-999

1,000-4,999

5,000-9,999

10,000+

Don't Know

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5

Most respondents are HR managers and above.

Department and Title

73%

2%2%2%3%

5%

4%9%

Human Resources Customer Service

Finance/Procurement IT

Marketing/Public Relations Operations

Sales/Business Development Other

18%

24%

11%

16%

6%

2%

5%

2%

16%

Individual Contributor Manager Senior Manager

Director Vice President Senior Vice President

C-level Executive President or CEO Other

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6

How familiar are you with the term “Employee Engagement?”

Understanding of Employee Engagement

86% of people report being Familiar or Very Familiar with the term “Employee Engagement.”

2%10%

25%

63%

Not at all Familiar

Somewhat Familiar

Familiar

Very Familiar

Participants were asked to read the following definition:“Employee Engagement is an emotional state where we feel passionate, energetic, and committed to our work. In turn, we fully invest our best selves—our hearts, spirits, minds, and hands—in the work we do.“

How familiar are you with the term “Employee Engagement” according to this and/or other definitions you are aware of?

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7

5%

28%

35%

29%

3%

Not at all Important Somewhat Important

Important Very Important

Don’t Know

How important is Employee Engagement to managers in your organization?

Importance of Employee Engagement

Based on what they both say and do, how important is Employee Engagement to the executive team of your organization?

5%

21%

27%

45%

2%

Not at all Important Somewhat Important

Important Very Important

Don’t Know

HR professionals report that only 29% of managers consider employee engagement to be very important compared to 45% of executives.

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8 Benefits of Employee Engagement

In your opinion, in what ways does Employee Engagement benefit organizations in general? Please rank up to 5 top benefits.

Benefit Score Overall Rank

Increases employee performance 1388 1

Increases employee retention 1308 2

Increases employee satisfaction 1119 3

Increases customer satisfaction 909 4

Improves quality 646 5

Increases profitability 631 6

Increases innovation 592 7

Attracts talent to the company 575 8

Improves company/brand image 500 9

Decreases employee absence 371 10

HR professionals name Increased Performance, Retention, and Satisfaction as the top benefits of Employee Engagement.

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9

55%

40%

5%

Yes

No

Don't Know

Use of Formal Employee Engagement Programs

Does your organization have a formal program (or programs) currently in place specifically aimed at enhancing Employee Engagement?

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10 Reasons for Not Having an Employee Engagement Program

Why does your organization not have any programs in place to enhance Employee Engagement? (check all that apply)

4

8

12

35

36

37

38

47

54

0 10 20 30 40 50 60

Don't Know

Resistance from employees

A belief that Employee Engagement doesn'tmatter

Lack of funds/resources

Lack of support from managers

Lack of follow-through

Lack of knowledge about employee engagement

Lack of support from senior executive team

Other competing prioritiesCompanies without an employee engagement program in place mention other competing priorities and lack of executive support as the main reasons.

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11 Top Employee Engagement Initiatives

What types of Employee Engagement-specific initiatives has your organization implemented in the past three years? Please mark all that apply.

2

3

8

21

25

33

36

55

59

65

65

0 10 20 30 40 50 60 70

Don’t Know

None

Other (please specify)

Additional Perks/Benefits

Telecommuting/Work from home

Training on EmployeeEngagement

Other Types of Training

Wellness Programs

Recognition Programs

Company Events/Parties

Employee Feedback

Companies mention Employee Feedback Programs, Company Events, Recognition Programs and Wellness Programs as their top employee engagement initiatives.

3%14%

50%

24%

9%

Don’t Know Not Successful

Somewhat Successful Successful

Very Successful

Overall, how successful do you feel these programs have been over the past three years in increasing Employee Engagement?

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3%

14%

50%

24%

9%

Don’t Know Not Successful

Somewhat Successful Successful

Very Successful

Success of Employee Engagement Programs

Overall, how successful do you feel these programs have been over the past three years in increasing Employee Engagement?

83% of companies report that their initiatives have been successful at increasing employee engagement.

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13 Future Employee Engagement Plans

What types of Employee Engagement initiatives does your organization plan on implementing in the future? Please mark all that apply.

Only 6.2% of organizations do not plan to continue Employee Engagement initiatives.

6

6

16

18

22

33

33

33

36

48

49

0 10 20 30 40 50 60

None

Other (please specify)

Telecommuting/Work from home

Additional Perks/Benefits

Don’t Know

Wellness Programs

Other Types of Training

Training on Employee Engagement

Company Events/Parties

Recognition Programs

Employee Feedback Companies mention Employee Feedback and Recognition Programs as the top two initiatives to implement in the future.

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49%

12%

6%

20%

13%

Year

2 years

3 years or more

Never

Don't Know

Last Employee Engagement Survey

When was the most recent survey conducted to measure Employee Engagement in your organization? Was it in the past…

Almost half of all companies have conducted an employee engagement survey in the past year.

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15

25%

10%

32%

6%

27%

Year

2 years

3 years or more

Will not measure

Don’t Know

Plans to Measure Employee Engagement

Our organization plans to measure Employee Engagement through an employee survey for at least the next…

42% of companies plan to conduct an employee engagement survey for at least the next two years.

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16

14%

10%

13%

8%

39%

16%

1 year 2 years 3 years

4 years 5 years or more Don’t Know

History of Measuring Employee Engagement

Over how many years has your organization been measuring Employee Engagement using an employee survey?

60% of companies have been conducting an employee engagement survey for three years or more.

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17 Frequency of Measuring Employee Engagement

How frequently does your organization conduct a formal employee survey or collect employee feedback? (Multiple answers allowed. For example, if your organization conducts an annual employee survey followed by quarterly pulse surveys, choose Quarterly and Annually.)

3

1

3

7

52

6

17

14

5

0 10 20 30 40 50 60

Always On

Weekly

Monthly

Quarterly

Annually

Every 18 months

Every 2 years

More than every 2 years

Don't Know

Most companies conduct an employee engagement survey at least annually.

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18

24%

41%

14%

17%

4%

JUST STARTED: My organization just started measuring employee engagement within the last two years.

CONSISTENT: My organization has measured employee engagement each year for at least the past three years.

LESS CONSISTENT: My organization measures employee engagement every 18 months to 2 years.

SPORADIC: My organization has measured employee engagement sporadically over the past five years.

Don't Know

Consistency of Measuring Employee Engagement

Which statement best describes your organization?

41% of companies have consistently measured employee engagement each year for at least the past three years.

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19

25%

62%

8%5%

Internally using software tool

Outsourced to a third-party survey company

Other

Don’t Know

Internal vs. Outsourced Employee Engagement Surveys

For your organization's most recent survey to measure employee engagement, how did you administer the survey?

62% of companies work with a third party to conduct their employee engagement survey

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20 Employee Feedback Collection Methods

What methods has your organization used to collect employee feedback? (Mark all that apply)

2

2

29

34

35

86

0 10 20 30 40 50 60 70 80 90 100

Other (specify)

Telephone survey

Personal Interviews

Focus Groups

Paper survey

Online surveyOnline surveys are the most popular method to collect employee feedback, but paper surveys, focus groups, and personal interviews are also popular methods.

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21 Average Employee Engagement Survey Participation

What percentage of your employees provided feedback to your most recent employee survey?

25%

75%

Did not Participate

Participated On average, 75% of employees participated in their company’s employee engagement survey.

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22

52%

34%

14%

Yes

No

Don't Know

Use of Employee Engagement Benchmarks

Do you compare your engagement scores to an overall benchmark or to others in your industry? (benchmarking)

Just over half (52%) of companies compare their employee engagement survey results to an industry benchmark.

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23 Average Level of Employee Engagement

According to your most recent survey results, what percentage of employees are engaged at your company? This includes employees you consider to be fully engaged, engaged, or somewhat engaged.

34%

66%

Not Engaged

Engaged

Companies report that most (66%) of their employees are engaged according to their most recent employee engagement survey results.

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24

32%

28%

17%

23%

Upward

Stayed the Same

Downward

Don’t know

Companies with Engagement Trending Upward

Based on any employee survey results over the past 3 years, has the overall level of Employee Engagement in your organization trended….

32% of companies report that engagement in their organization has increased over the past three years. 28% report engagement has stayed the same and 17% say that it has actually gone down.

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25 Sharing of Employee Engagement Results

Which groups receive the results of the survey (summary or detailed results)? Please check all that apply.

3

1

7

53

19

55

75

78

0 10 20 30 40 50 60 70 80 90

Don’t Know

None of the above

Some Employees

All Employees

Some Managers

All Managers

HR

Executive Team Most executives and HR staff receive the results from the company employee engagement survey. Less so for managers and all employees.

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26 Involvement in Employee Engagement Survey Action Planning

Who is involved in action planning based on the survey results? Please check all that apply.

2

2

5

19

32

34

71

76

0 10 20 30 40 50 60 70 80

Don’t know

No action plans are created

Other

All employees

Some managers

All managers

Executive team

HR team

Companies report that managers and employees are much less involved in action planning on employee engagement survey results than HR and the executive team.

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27 Creation of Employee Engagement Survey Action Plans

What percent of the following groups actually create an action plan?

72%68%

55%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Executives HR Managers

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28 Training on Employee Engagement

Which of the following groups have received training on Employee Engagement in your organization? By training, we mean a formal session on what employee engagement is and how to increase it in the organization. Please check all that apply.

16

6

11

15

20

29

34

37

0 5 10 15 20 25 30 35 40

Don’t Know

All employees

Some employees

Some managers

All managers

Executive Team

HR team

None

Most companies report that they do not provide training on employee engagement.

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29 Business Metrics Compared to Employee Engagement

Which of the following metrics are compared to Employee Engagement scores in your company? Please check all that apply.

22

24

2

13

13

29

33

41

0 5 10 15 20 25 30 35 40 45

Don’t Know

None

Other (Please specify)

Product/Service Quality Metrics

Profitability

Customer Satisfaction

Performance Metrics

Employee Retention

Most companies compare employee engagement survey scores to retention numbers followed by other performance metrics.

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30 Working with External Providers on Employee Engagement

Do you work with outside providers to enhance Employee Engagement? Outside providers may include training companies, consultants, coaches, universities, survey companies, etc. (but not do-it-yourself software tools).

34%

52%

14%

Yes

No

Don’t know

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31 Employee Engagement Expenditures

How much money does your organization invest specifically in Employee Engagement programs (including surveys) annually?

Average$64,620

High$300,500

Low$0

(7 responses)

Companies report spending about $65,000 annually on employee engagement programs.

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32

9%

68%

23%

Yes

No

Don’t know

Measuring the ROI of Employee Engagement

Does your organization measure its return on investment (ROI) for Employee Engagement programs?

Only 9% of companies measure the ROI of their employee engagement programs.

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33 Observed ROI of Employee Engagement

In what ways have you seen a return on the organization’s investment in Employee Engagement?

32

18

4

7

9

12

17

18

19

20

25

31

35

0 5 10 15 20 25 30 35 40

Don’t Know

None

Other (specify):

Decreased employee absence

Higher application rates

Increased profitability

Improved quality

Improved companyimage

Increased innovation

Increased customer satisfaction

Higher performance

Higher employee retention

Higher employee satisfaction

Companies report higher Satisfaction, Retention, and Performance as a result of their investment in employee engagement.

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34

6%

9%

20%

24%

3%

38%

Strongly Disagree Disagree Neither Agree nor Disagree

Agree Strongly Agree Don’t Know/Not Applicable

Belief in Employee Engagement ROI

How strongly do you agree with the following statement: “Our program(s) to improve Employee Engagement has (have) given us the ROI/results we hoped for.”

Only 27% of companies believe that their programs to improve employee engagement have produced the ROI they hoped for.

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35 State of Employee Engagement Overall Findings

How would you describe the impact of Employee Engagement on your organization overall?

“Huge impact!”

“It’s a work in progress and we have a long way to go still.”

“Very positive to our cultural goals.”

“It is vital to providing quality care and fulfilling our mission in the community, so we take it very seriously.”

Positive

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36 Insights

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37

32%

28%

17%

23%

Upward

Stayed the Same

Downward

Don’t know

Companies with Engagement Trending Upward

Based on any employee survey results over the past 3 years, has the overall level of Employee Engagement in your organization trended….

32% of companies report that engagement in their organization has increased over the past three years. 28% report engagement has stayed the same and 17% say that it has actually gone down.

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38Companies with Engagement Trending Upward…

Have Engagement Programs.

Does your organization have a formal program (or programs) currently in place specifically aimed at enhancing Employee Engagement?

90% of companies with upward trending levels of employee engagement report that they have a formal program to enhance employee engagement.

Yes90%

No10%

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39

39

2019

31

28 28

35

1213

22

28 28

14

9

4

910 10

0

5

10

15

20

25

30

35

40

45

EmployeeFeedback Systems(i.e. surveys, etc.)

Training onEmployee

Engagement

Other Types ofTraining

Wellness Programs RecognitionPrograms

CompanyEvents/Parties

Upward Stayed the Same Downward

Companies with Engagement Trending Upward…

Train on Employee Engagement.

What types of Employee Engagement-specific initiatives has your organization implemented in the past three years? Please mark all that apply.

Companies with upward trending levels of employee engagement provide training on employee engagement, other training, and wellness programs more than those with stagnant or downward engagement trends.

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40Companies with Engagement Trending Upward…

Have Measured Engagement for 3 or More Years.

Over how many years has your organization been measuring Employee Engagement using an employee survey?

71% of companies with upward trending levels of employee engagement have conducted an employee survey for three years or more.

1 year

11%

2 years

18%

3 years

11%

4 years

13%

5 years or more47%

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41

1

0

1

5

24

3

7

3

0 5 10 15 20 25 30

Always On

Weekly

Monthly

Quarterly

Annually

Every 18 months

Every 2 years

More than every 2 years

Companies with Engagement Trending Upward…

Measure Engagement Annually.

How frequently does your organization conduct a formal employee survey or collect employee feedback? (Multiple answers allowed. For example, if your organization conducts an annual employee survey followed by quarterly pulse surveys, choose Quarterly and Annually.)

Most companies with upward trending levels of employee engagement conduct annual employee surveys.

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42

27%

45%

18%

10%

JUST STARTED: My organization just started measuringemployee engagement within the last two years.

CONSISTENT: My organization has measured employeeengagement each year for at least the past three years.

LESS CONSISTENT: My organization measures employeeengagement every 18 months to 2 years.

SPORADIC: My organization has measured employeeengagement sporadically over the past five years.

Companies with Engagement Trending Upward…

Measure Engagement Consistently.

Which statement best describes your organization?

45% of companies with upward trending levels of employee engagement have measured engagement consistently each year for at least the past three years.

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43

29

19

1110

16

7

0

5

10

15

20

25

30

35

Upward Stayed the Same Downward

Yes No

Companies with Engagement Trending Upward…

Use Benchmarks.

Do you compare your engagement scores to an overall benchmark or to others in your industry? (benchmarking)

Most companies with upward trending levels of employee engagement compare their scores to industry benchmarks.

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44

30

33

26

5

25

2

28

26

19

6

19

2

1617

11

5

12

20

5

10

15

20

25

30

35

HR Executive Team All Managers Some Managers All Employees Some Employees

Upward Stayed the Same Downward

Companies with Engagement Trending Upward…

Share Employee Survey Results.

Which groups receive the results of the survey (summary or detailed results)? Please check all that apply.

Companies with upward trending levels of employee engagement share employee survey results more broadly throughout the organization.

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45

29

31

21

9 9

2324

1211

9

16

19

5

9

3

0

5

10

15

20

25

30

35

Executive team HR team All managers Some managers All employees

Upward Stayed the Same Downward

Companies with Engagement Trending Upward…

Involve Managers in Action Planning.

Who is involved in action planning based on the survey results? Please check all that apply.

Companies with upward trending levels of engagement involve managers in action planning on employee survey results.

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46

2625

1312

3

54

11

14

7

5

3

5

15

89

54

34

7

0

5

10

15

20

25

30

Executive Team HR team All managers Some managers All employees Some employees We don’t train on Employee

EngagementUpward Stayed the Same Downward

Companies with Engagement Trending Upward…

Train Managers on Employee Engagement.

Which of the following groups have received training on Employee Engagement in your organization? By training, we mean a formal session on what employee engagement is and how to increase it in the organization. Please check all that apply.

Companies with upward trending levels of employee engagement providing training on engagement to their managers.

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47

22

14

10

15

19

10

0

5

10

15

20

25

Upward Stayed the Same Downward

Yes No

Companies with Engagement Trending Upward…

Tend to Work with Outside Partners.

Do you work with outside providers to enhance Employee Engagement? Outside providers may include training companies, consultants, coaches, universities, survey companies, etc. (but not do-it-yourself software tools). Companies with upward

trending levels of employee engagement tend to work with outside partners to enhance employee engagement.

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48

15

12

8

9

5

11

9

8

9

7

9

6

9

5

8

7

6

5

4

5

8

0

2

4

6

8

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Higher employeeretention

Higherperformance

Improvedcompany/brand

image

Improvedproduct/service

quality

Increasedprofitability

Increasedcustomer

satisfaction

Increasedinnovation within

the company

Upward Stayed the Same Downward

Companies with Engagement Trending Upward…

Report Higher Retention and Performance.

In what ways have you seen a return on the organization’s investment in Employee Engagement?

Companies with upward trending levels of employee engagement report higher retention and performance.

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21

16

2

20

9

4

10 10

10

5

10

15

20

25

Very Concerned Somewhat Concerned Not Concerned

Upward Stayed the Same Downward

Companies with Engagement Trending Upward…

Are Concerned About Retention.

How concerned is your organization about employee retention?

Companies with upward trending levels of employee engagement are concerned about retention.

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50 Key Findings

1. Consistently measure employee engagement

2. Involve all managers in action planning

3. Provide training

4. Measure ROI

5. Work with an outside provider