WelcomeGloboforce is the leading provider of worldwide, on-demand employee reward & recognition solutions for Global 2000 companies.

Globoforce Presents a Truly Global

Discussion on Employee

Engagement

Derek Irvine, Globoforce, is Joined By:

Andy Parsley, GreenLionDavid Zinger, Consultant

September 18th, 2007

Derek IrvineVP of Marketing & Client

Strategy, Globoforce A seasoned management professional

with over 20 years experience working across a diverse range of industry and clients.

International Management Consultant, Marketer.

While working with Globoforce, Derek has specifically advised clients including: IBM, Wrigley, GE, Dow, P&G, Reuters in the strategy & implementation of their global reward and recognition programs.

Andy ParsleyDirector and Founder,

Green Lion, UK•Two-decades in advertising - Saatchi & Saatchi and

Omnicom groups.

•Founded Green Lion Insights and Solutions Ltd.

•Member of the UK’s Association for Qualitative

Research

•Frequent contributor to BBC Radio News.

•Contributed to BBC TV's 2001 documentary series

“Predictions: The Future of Work”.

•With a forthcoming eBook “Unlocking the Power

of People: A Practical Guide to Employee

Engagement”

discussing employee engagement, the future of it

within the workforce, and steps employers can take to

encourage employee engagement

David Zinger, B. A., M. Ed.,Consultant and Presenter

•25 years experience in education and training.

•Employee engagement and leadership author with such blogs as:

•Strength Based Leadership Blog •Employee Engagement Blog •½ of the Slacker Manager Blog – a blog with about 8300 subscribers.

•Delivered more than 1000 custom courses and seminars including :

•strength based leadership•employee engagement•crucial conversations

•Instructed courses in Education Psychology and Management at the University of Manitoba

•Developed two distant courses to teach adult educators for Western Canadian Universities.

What is Employee Engagement?“Employee Engagement is an ‘outcome-

based’ concept. It is the term which is used to describe the degree to which employees can be ascribed as ‘aligned’ and ‘committed’ to their organisation such that they are at the most productive.”

~The International School of Human Capital Management

-definition released in 2006

Alignment

High

√

X X X

√

√

X

X

HighLow Commitment

Employee Engagement Matrix (Alignment vs. Commitment)

Adapted from – Journal of Applied Human Capital Management Volume 1 No 1 2007

Employee Engagement is more than Employee Satisfaction!

Caring about:

•Colleagues

•Customers

•Organization as a

whole

Discretionary effort vs.

Engagement?

Photo Credit: Northern Lights (Aurora Borealis) by Nick Russil http://flickr.com/photos/nickrussill/146743083/

Northern Limestone

PlantEngagement for all is

not necessarily looking for more discretionary

effort out of people, but for “Authentic”

effort.

Engagement benefits self, organization and

community

Northern Enlightened

Employee Engagement

Attendee Survey ResponsesIn your opinion, are

employee engagement programs gaining more

executive “mind share” in your organization?

Do you think an engagement program

would improve the company’s financial

bottom-line?

The Service-Profit Chain

InternalServiceQuality

EmployeeSatisfaction

EmployeeRetention

EmployeeProductivity

ExternalServiceValue

CustomerSatisfaction

CustomerLoyalty

RevenueGrowth

Profitability

Engagement Delivery Outcomes

Why senior executives should care about Employee Engagement– The ROE!Gallup studies proved that corporations with higher engagement levels generated:

27% higher profits50% higher sales50% higher customer loyalty38% above average productivity

*Gallup “Q12” Survey

The Engagement DividendA 15% improvement in levels of employee engagement correlates with a 2% improvement in operating margin.

-Towers Perrin

What do Metrics Really Mean?

Metrics =Score of past events

Insight =Conversation about current events and feelings

Satisfaction—feels goodEngagement—does

good

Workplace EngagementLeadership Matters!

If Your Manager:

Primarily Ignores You

Focuses on your Weaknesses

Focuses on your Strengths

Chances of being actively disengaged:

40%

22%

1%

Leaders Take Note!1. Managers must:

a) Understand employee engagement b) Acknowledge it is the biggest driver of organisational

performance in the 21st centuryc) Recognize it’s their responsibility to deliver it.

2. Giving managers leadership skills so they can:a) Buy into the Vision and Valuesb) Communicate the Vision and Values in a relevant, compelling way c) Be consistent and authentic in living the Values

3. Demonstrating respect4. Enabling personal improvement

Leadership and engagement

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Leadership and engagement

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Many studies show these essential pieces are needed too…Know your workforce What satisfies and what dissatisfies. Take the

temperature of satisfaction often.Build confidence In leadership & the strategy. Inspire We all love to follow a vision.Communicate Often Think about your employees like you would your

consumers. Think brand values, how to build and how to communicate them.

Enhance “My Value” Help employees enhance their sense of “value”.

Offer new skills, ensure sense of purpose, build a learning company.

Build an Appreciation Culture Remember to say “Thank You” often. Be seen to

offer fair and merit based total rewards programs.

Attendee Survey ResponsesWhat role can a strategic recognition program (one that

is strongly aligned with your company mission and values) – play in a successful engagement strategy?

Recognition—An Important Piece of the Puzzle

Authentic recognition is vital and key.

To recognize is to really see and acknowledge people.

Done well in a manner that’s aligned to the values of the organization, it can be the Engagement “Tipping Point”

Hi-Impact, Hi-Speed, Strategic Recognition

Great Engagement Requires Know your workforce

Build confidence Inspire Communicate

Often Enhance “My

Value” Build an

Appreciation Culture

Hi-ImpactHi-SpeedRecognition

Hi-Impact Recognition Anchor with the

corporate vision & values

Reward strategically relevant behaviours and results

Brand it Promote and advertise

it! Champions at senior

levels Make showing

appreciation a MUST do Recognize many &

often Measure, track, bring

accountability & methodology

Hi-Speed Recognition Recognize fast & timely Quick & simple to do Make it a daily topic Use technology to

quickly spot non/ reluctant participants

Live, real time data & analysis

Recognition Delivers

Results Relevance &

Meaning A conversation

started Frequent

interaction with this topic

Appreciation Culture

Vision & Values Understood & Alive

Walk the Talk!

The Challenge• 43,500+ employees• 62 countries

• The company valued recognition, but was running 100’s of different recognition programs across the world.

• Dow’s vision was for one consistent global program -- a non-cash recognition program that would have frequency of awards and encourage a recognition culture worldwide.

Must Haves:• Grow an “Appreciation Culture”• ‘Live’ the corporate values• Fair offering globally• Caters to global workforce• Simple administration• Excellent governance and reporting• And for less money than before!

“Thank You” In Action, Globally.

Strategic RecognitionGloboforce Success Story: Dow

Chemical

“Strategically aligned recognition drives the behaviors, actions and results that lead to business

success. At Dow, people are recognized for their contributions. It is important that everyone

understand why recognition is important, know how to recognize employees effectively, and make

recognition a part of every day.”

-Andrew Liveris, President & CEO, Dow Chemical Co.

Effective Recognition Initiatives Reflects the values of the

organization No Cash Incentives at a Not-

for-Profit Flexibility allows each recipient a

choice they value No donuts for Dieters No parking spots to bus riders

Recognition reinforces the “feeling of value”

Timeliness is essential

Why Now? Why Engagement?

Talent Management

Retention

“Brain Drain”

RecruitmentGenerational Gaps

A New Kind of Benefit

People Power…an untapped potential?History… 1st Improved Machinery 2nd Improved Processes 3rd Improved Information

& Quality.

…What’s the next “Big Thing”?

Our last organizational resource…people!

Yes! It’s time to unleash the “People Potential” in the 21st

Century.

Questions?If we don’t address your question today please feel free to email:

Globoforcemarketing@globoforce.comhttp://www.globoforce.com

Andy Parsleyandy@greenlion.co.ukhttp://www.greenlion.co.uk

David Zingerdzinger@shaw.cahttp://www.davidzinger.com

Thank you for spending an hour with us!

We hope you enjoyed the presentation.