HR Leaders Forum Breakfast Series

Fiona Scullion Wednesday 23rd March 2016

OVERVIEW OF THE RIGHT GROUP

• Established in 1995, a management consulting firm focussed on building trusted partnerships with our clients.

• Offices in Perth and Sydney.

• Specialists in:-

1. People & Culture Solutions

2. Employee Insights

3. Innovation Strategy

4. Brand Reputation

5. Digital Solutions

• Client base spanning the UK, USA, Asia, India, Australia, and New Zealand.

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OUR CLIENTS

McAleese Resources

Minara Resources

Mineral Resources

MMG Limited

Neptune

Officeworks

Peet

Richard Noble

Skilled

Stockland

St John of God Health Care

Victa

Wesfarmers

WorleyParsons

YMCA

Adelaide Brighton

AHG

AusGroup

Auto Masters

AJ Lucas

Alinta

ATCO Gas

Atlas Iron

BGC

BHP Billiton

Blackwoods

Brikmakers

Bunnings Warehouse

Cardno

Centurion

Global Energy Group

Greencross Limited

Gull Petroleum

Hanson

Hawaiian

HY-TEC

Imdex Limited

John Hughes Group

Kleenheat Gas

Kiewit Australia

Leighton Contractors

Lion

MACA Mining

Matrix Composites &

Engineering

Cement Australia

Cliffs Natural Resources

Clough

Coles

CSBP

CSG

Decmil Australia

Dexion

DuluxGroup

Elders

Ertech

FAST JV

Fortescue Metals Group

Freehills

Fremantle Football Club

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EMPLOYEE INSIGHTS

What we offer:

• Employee Insights:

– Surveys (annually and pulse)

– Management interviews and discussion groups

• WEATHERVANE™ is our Employee Engagement Survey tool

– Communication templates

– Employee engagement index

– Organisational effectiveness

– Culture mapping

– Industry benchmarking

– Administered digitally and paper-based

• Action Planning follow-up

• Linked back to business strategy and alignment with talent strategy

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5

1. Measure & Understand

2. Prioritise Issues &

Opportunities

3. Action

4. Monitor & Manage

BUILDING A PLATFORM FOR EMPLOYEE ENGAGEMENT

EMPLOYEE ENGAGEMENT INDEX

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Commit

Exceed

Promote

Employee Engagement

Our Employee Engagement has three definitive factors :

Promote: The extent to which staff promote your organisation.

Commit: The extent to which staff want to remain long-term in order to bring about the organisation’s vision.

Exceed: The extent to which staff are inspired to go above and beyond what is expected of them in their daily work.

ACTION PLANNING FOLLOW-UP

• Benefits

Inclusive process that engages employees

A problem shared is a problem halved: encourage ideation and sharing accountability

Identifies the ‘real focus areas’

• What we offer:

Facilitation by Consultant

‐ Facilitation of workshops

‐ Develop Survey Action Plan based on outputs

Train the Trainer

Training the client to facilitate action planning workshops

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Action Planning Follow-Up is an ideal way to close the loop post presentation of the survey findings.

ACTION PLANNING TEMPLATE

Focus Area Survey Score Actions Responsibility By when? Target

Leadership Development

Relationship with Immediate Manager – 45%

1. Line managers to attend communication skills training.

2. Line managers to complete 360 feedback.

XXXXX XXXXX

XX/XX/16 XX/XX/16

Relationship with Immediate Manager – 60%

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Financial Revenue Expenses

ROC Profit

Cash flow

Human Capital Employee Engagement

Staff turnover Absence rate Cost per hire

Revenue per employee

Customer Customer satisfaction

Loyalty/NPS Customer retention

Sales revenue per customer Quality of Service

Competitive pricing

Efficiencies Operating Procedures Systems & Processes

Organisational structure Decision making

BUSINESS SCORECARD

BUSINESS REPORTING IS KEY

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TODAY’S FORMAT

• Overview of The Right Group and WEATHERVANE™

• Forum Discussion:-

1. What’s fuelling the discussion around Employee Engagement

2. Who are the doubters from within? And why?

3. Why measure engagement…a better pitch

4. Is there a better way?

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WHAT’S FUELLING THE DISCUSSION AROUND EMPLOYEE ENGAGEMENT

• Leadership accountability and buy-in: lack of accountability and action taken on employee survey results at all layers within the organisation can lead to the survey and outputs losing value as a tool.

• Desensitisation of Executive to Employee Engagement; especially when the score is continually positive. Executive can focus too much on the Employee Engagement Score and begin to question the cost spent every year on measurement when Engagement remains strong.

• Management promotion of the survey and results can impact how employees respond. Example mentioned of a situation where managers were communicating employee survey results like it was a KPI score for their team. Employees were beginning to perceive the survey results to be less relevant to their needs which led to artificial responses in subsequent surveys.

• Traditional survey methods are not relevant for more dynamic and changing workforces. There is a need to think about ‘less traditional’ survey methods to allow these employees to have a voice. Example of employees continually moving locations and/or being contracted to other clients.

• Global trend: is it possible to treat employees as customers and using similar measures such as advocacy?

• Customise/brand the survey in the organisation: using a name that resonates with employees can drive the success of the process/outputs.

• General consensus that whilst change is normal today in organisations it is still a blocker when it comes to the timing of the survey launch.

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WHAT’S FUELLING THE DISCUSSION AROUND EMPLOYEE ENGAGEMENT CONTD

• ‘Tell the story’ and contextualise the findings and insights from the engagement survey. It is important to interpret and report the results in the context of what is happening within the organisation as well as externally in the market.

• Multiple generations in the workplace may lead to the need to use more non traditional data collection methods. Finding an approach that engages all generations from baby boomers to millennials is important.

• Low scores on Employee Engagement can fuel more focus and discussion at Executive level.

• Actions post survey results need to be driven from the bottom up, not top down. Driving action from the frontline engages employees to be part of the process, makes it localised and also shares accountability across the workforce.

• Employee Engagement as a KPI dilutes its value amongst management. It becomes less about employees and more about bonuses.

• Challenge for smaller teams having less confidence to provide open feedback. The survey process may not allow those employees to have a voice as confidentiality will be compromised.

• Trust is key to driving the success of the survey process and reliability of the outputs. The intention of conducting the survey needs to be made clear at the outset.

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WHO ARE THE DOUBTERS FROM WITHIN? AND WHY?

• Doubt can be driven from lack of understanding of what Employee Engagement means. Example of Executive who do not understand the concept which leads to general lack of investment and care when it comes to measurement of the workforce.

• Confusion between the concept of satisfaction and Employee Engagement. It is important to create an understanding that it is not just about having satisfied employees but rather a workforce of actively engaged employees who will positively impact the bottom line.

• Lack of authentic leadership whose focus is on Employee Engagement as a KPI of their performance (and bonus). They are more focused on numbers and lack the soft skills to engage their team.

• Line management who do not support the process. Mainly because they realise it will uncover their poor leadership skills and are not willing to change.

• Front line staff who feel their confidentiality would be compromised as they may be in the minority and are less likely to be as open and honest in their responses to the survey. Example given of male dominated teams with only one or two females.

• Long-term employees who see it as a moment that happens annually rather than an opportunity to have a voice.

• Doubters within the HR department.

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WHY MEASURE ENGAGEMENT… A BETTER PITCH

• Return on Investment: emphasise the value added to the organisation’s bottom line by having actively engaged employees.

• Sales pitch needed to promote to managers ‘what is in it for them’ i.e. the benefits. For example engaged employees are easier to manage and more productive. In certain industrial sectors, the key point could be an engaged workforce means a safe workforce.

• Promote the direct correlation between Employee Engagement and customer satisfaction/retention and how the bottom line may suffer if employees are not happy.

• Translate the tangible differences having engaged employees makes to the organisation.

• Promote engagement surveys as the way to measure attraction and retention. Example given of culture being viewed as a point of difference (EVP) to attract new employees; therefore the engagement survey should be promoted as the tool to measure the culture.

• Make it a strategic objective that people are the greatest asset and must be championed by Executive. It should not be just about the number but looking at improvements generally which is far more valuable.

• Celebrate and learn from the positive insights reported from the employee survey. Do not just focus on areas of improvement; use areas of performance in one team as learnings to how to improve other business areas.

• Benchmarking is useful when used in the appropriate context across industry and business size. Benchmarking helps to keep the results in perspective and understand what are key priority areas and where ‘you will get best bang for your buck’.

• Use the measure as starting point to open dialog and identification of the critical issues.

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IS THERE A BETTER WAY?

• Have frontline management on board to drive engagement. Encourage them to see it as an opportunity, not just something that will uncover problems. They should sit down weekly and ask teams 2-3 questions to track mood and sentiment.

• Ensure pre-survey that intentions to conduct the survey are clear: gather the honest feedback on what areas should be included.

• Measurement tool should be engaging and meaningful: short, sharp, fun, and more frequent.

• Honest communication of the results and key actions (how, why and localised) to employees is important. Also need to update employees on progress of the actions developed from the results.

• Use of technology and social media as a form of data collection.

• More focus on speed of the feedback of survey results is required.

• Whole of organisation reporting: correlation of Employee Engagement data with other organisational metrics that delivers a holistic view and helps strengthen the value of what is being measured.

• Use pulse surveys and alternate with an annual deep dive measurement: both have a use and place.

• Executive team must positively promote the survey tool: message should be focused that it is ok to make mistakes and the survey is about discovering how to improve upon Employee Engagement.

• Survey content should be meaningful and relevant: critique the content and ensure what is being asked is relevant at the time. Gallup survey was given as something that is a good example of a short and concise tool.

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LIST OF ATTENDEES

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Contact Name Organisation Position

Tania Bauk Water Corporation Manager OD & Performance

Kelly McKenzie CBH Group Group Manager People & Performance

Gemma Coyne Automotive Holdings Group Limited HR Officer

Sean Hefferon Metso Australia Limited Regional HR Manager, Australasia

Maureen Gerlach Shire of Mundaring Manager Human Resources

Branka Stojanovic RAC Human Resource Manager

Karolina Stasiak Landgate Business Partner - People & Culture

Jane King The Perth Mint General Manager, Human Resources

Bianca Ward ATCO Australia Human Resources Advisor

Kerryn Scott Land Surveys Senior HR Advisor

Kelly Tufilli HBF Health Limited Manager, Talent, Acquisition & Retention

www.therightgroup.com.au

WEATHERVANE™ A platform for engaging employees 17

Thank you Fiona Scullion