Let’s Get Engaged Capturing Employees’ Hearts and Minds

Let’s Get EngagedLet’s Get Engaged Capturing Employees’ Hearts and MindsCapturing Employees’ Hearts and Minds

2006 WI State SHRM Conference 2006 WI State SHRM Conference

October 12, 2006 October 12, 2006

Agenda Agenda

What is engagement?What is engagement? Why is it significant? Why is it significant? What are the primary drivers?What are the primary drivers? How do we measure engagement?How do we measure engagement? How do we promote and foster it? How do we promote and foster it? Best practice ideas – Case studies Best practice ideas – Case studies

What is Engagement? What is Engagement?

What is Engagement?What is Engagement?

Engagement is defined as Engagement is defined as employees’ willingness and ability to employees’ willingness and ability to

contribute to company success, contribute to company success, which ultimately comes down to which ultimately comes down to

people’s desire to invest that extra level people’s desire to invest that extra level of discretionary effort that of discretionary effort that

separates outstanding performers separates outstanding performers from the rest of the pack.from the rest of the pack.

What is Engagement? What is Engagement?

Rational Rational Understanding how the Understanding how the

unit/department contributes unit/department contributes to company successto company success

Understanding how their Understanding how their role relates to company role relates to company goals and objectivesgoals and objectives

Being personally motivated Being personally motivated to help the company to help the company succeedsucceed

Being willing to put in a Being willing to put in a great deal of effort beyond great deal of effort beyond what is normally expectedwhat is normally expected

Emotional Emotional Really caring about the Really caring about the

future of the companyfuture of the company Being proud to work for the Being proud to work for the

companycompany Having a sense of personal Having a sense of personal

accomplishment from the accomplishment from the jobjob

Saying that the company is Saying that the company is a good place to worka good place to work

Saying that the company Saying that the company inspires them to do their inspires them to do their best workbest work

What is Engagement? What is Engagement? The three types of employeesThe three types of employees

Engaged Engaged – work with passion and feel a profound – work with passion and feel a profound connection to their company. They drive innovation and connection to their company. They drive innovation and move the organization forward.move the organization forward.

Not-engagedNot-engaged – “checked out.” They’re sleepwalking – “checked out.” They’re sleepwalking through their workday, putting time – but not energy or through their workday, putting time – but not energy or passion – into their work.passion – into their work.

Actively disengagedActively disengaged – aren’t just unhappy at work; – aren’t just unhappy at work; they’re busy acting out their unhappiness. Every day, they’re busy acting out their unhappiness. Every day, these workers undermine what their engaged co-workers these workers undermine what their engaged co-workers accomplish.accomplish.

Engagement Not ImprovingEngagement Not Improving

According to a 2005 Gallup Poll: According to a 2005 Gallup Poll:

29% of the US workforce is engaged, 29% of the US workforce is engaged, 55% not engaged55% not engaged 16% actively disengaged. 16% actively disengaged.


According to Gallup’s research by the time According to Gallup’s research by the time employees have been with an organization for employees have been with an organization for six months, less than 40% are engaged. six months, less than 40% are engaged.

The longer an employee stays with an The longer an employee stays with an organization the lower their engagement gets, organization the lower their engagement gets, until only 20% are engaged after 10 years of until only 20% are engaged after 10 years of service.service.

Engagement Not Improving Engagement Not Improving

Slightly more than three-quarters of currently Slightly more than three-quarters of currently employed respondents reported either active or employed respondents reported either active or passive job searching.passive job searching.

A recent Gallup report in USA Today states A recent Gallup report in USA Today states that only 49% of senior executives are that only 49% of senior executives are engaged.engaged.


What is most damaging to the organization is What is most damaging to the organization is those who quit and stay, emotionally switched those who quit and stay, emotionally switched off, or not-engaged.off, or not-engaged.

Significance of EngagementSignificance of Engagement

Significance of Engagement on Significance of Engagement on Organizational PerformanceOrganizational Performance

MoraleMorale

Productivity Productivity

Bottom Line Bottom Line

Significance of Engagement Significance of Engagement

A recent survey of business executives found A recent survey of business executives found that 72% of these leaders consider employee that 72% of these leaders consider employee engagement to be critically important to the engagement to be critically important to the competitive success of their companies.competitive success of their companies.


A satisfied workforce . . . A satisfied workforce . . . is productiveis productive has low rates of absenteeism and turnoverhas low rates of absenteeism and turnover is committed to the organization and their is committed to the organization and their

rolerole expends discretionary effort, expends discretionary effort, is emotionally connected to the organization is emotionally connected to the organization accepts accountability accepts accountability


The more highly engaged employees are the The more highly engaged employees are the more likely they will:more likely they will: Care about customer satisfactionCare about customer satisfaction Have the ability to meet customer needsHave the ability to meet customer needs Build customer loyalty and retentionBuild customer loyalty and retention Adapt to market changesAdapt to market changes Strengthen business relationshipsStrengthen business relationships


In banking, a 5% increase in customer loyalty In banking, a 5% increase in customer loyalty could produce profitability increases from could produce profitability increases from 25% to 85%.25% to 85%.

Taco Bell observed that the 20% of stores with Taco Bell observed that the 20% of stores with the highest employee retention rates enjoyed the highest employee retention rates enjoyed double the sales and 55% higher profits than double the sales and 55% higher profits than the 20% of stores with the lowest employee the 20% of stores with the lowest employee retention rates.retention rates.


One-third of the workforce is actively looking One-third of the workforce is actively looking or prepared to move to another job.or prepared to move to another job.

41% are not actively looking, but would listen 41% are not actively looking, but would listen if someone contacted themif someone contacted them

25% are not actively looking and would not 25% are not actively looking and would not consider changing jobs.consider changing jobs.

75% of employees may leave given the chance!75% of employees may leave given the chance!


Gallup’s 2005 Q3 survey found that, of all Gallup’s 2005 Q3 survey found that, of all U.S. workers 18 or older, about 23.3 million – U.S. workers 18 or older, about 23.3 million – or roughly 17% – are actively disengaged. or roughly 17% – are actively disengaged.

Gallup estimates that the lower productivity of Gallup estimates that the lower productivity of actively disengaged workers costs the U.S. actively disengaged workers costs the U.S. economy about $370 billion annually.economy about $370 billion annually.


Companies with engagement levels above Companies with engagement levels above their industry sector’s average outperform their industry sector’s average outperform their peer group, on aggregate, by 17 percent their peer group, on aggregate, by 17 percent in terms of operating margin.in terms of operating margin.

In 2004, share prices of organizations with In 2004, share prices of organizations with highly engaged employees rose by an average highly engaged employees rose by an average of 16% compared with an industry average of of 16% compared with an industry average of 6%.6%.

Drivers of EngagementDrivers of Engagement

Group ActivityGroup Activity

Reflect back to a time when you had a greatReflect back to a time when you had a great

boss.boss. What behaviors or attributes did you see? What behaviors or attributes did you see? How did they make you feel?How did they make you feel? What was your level of engagement? What was your level of engagement?

Drivers of Engagement Drivers of Engagement

Three key goals of people at work:Three key goals of people at work:

1.1. EquityEquity

2.2. AchievementAchievement

3.3. CamaraderieCamaraderie


According to Towers Perrin, six workplace According to Towers Perrin, six workplace elements for engagement include:elements for engagement include:

1.1. Strong leadershipStrong leadership

2.2. Personal accountabilityPersonal accountability

3.3. AutonomyAutonomy

4.4. Sense of control over one’s environmentSense of control over one’s environment

5.5. Sense of shared destinySense of shared destiny

6.6. Opportunities for development and advancementOpportunities for development and advancement


According to Mercer, the key drivers to According to Mercer, the key drivers to engagement include:engagement include:1.1. Employee confidenceEmployee confidence2.2. Degree of teamworkDegree of teamwork3.3. Type of workType of work4.4. ChallengesChallenges5.5. Commitment to qualityCommitment to quality6.6. Continuous learningContinuous learning


““I don’t have opportunities to grow or I don’t have opportunities to grow or advance”advance”

““I don’t like my work and it doesn’t make the I don’t like my work and it doesn’t make the most of my talents”most of my talents”

““I don’t like working for my manager”I don’t like working for my manager”

(Blessing White) (Blessing White)


Factor Percent Actively Looking

Opportunity for AdvancementOpportunity for Advancement 41%41%

Relationship with ManagerRelationship with Manager 37%37%

TrainingTraining 36%36%

Fair SalaryFair Salary 34%34%

Work-life BalanceWork-life Balance 33%33%

BenefitsBenefits 31%31%


What would most improve your job What would most improve your job satisfaction?satisfaction? More opportunities to do what I do bestMore opportunities to do what I do best Career development opportunitiesCareer development opportunities Greater clarity about what the organization needs Greater clarity about what the organization needs

me to do – and whyme to do – and why More challenging workMore challenging work


““Recognizes my talent Recognizes my talent and encourages me to and encourages me to use them as much as use them as much as possible:possible: Staying: 67%, Staying: 67%, Might stay: 33%,Might stay: 33%, Definitely leaving: 9%Definitely leaving: 9%

Doesn’t know what I do Doesn’t know what I do well”well”

Staying: 3%, Staying: 3%, Might stay: 15%, Might stay: 15%, Definitely leaving: Definitely leaving:

43%43%

According to BlessingWhite, a majority of employees feel that their managers recognize and encourage them to use their talents.

What Can Managers Do?What Can Managers Do?

Build a strong partnership with each team Build a strong partnership with each team membermember

Recognize the power of intrinsic motivatorsRecognize the power of intrinsic motivators Put conversation above communicationPut conversation above communication Remember that feedback is a giftRemember that feedback is a gift Be wary of demographic trendsBe wary of demographic trends

Recognizing, Measuring, Recognizing, Measuring, and Understanding and Understanding

EngagementEngagement

Recognizing, Measuring, and Recognizing, Measuring, and Understanding EngagementUnderstanding Engagement

Assessing the engagement of a worker, or aAssessing the engagement of a worker, or aworkforce, requires measuring five important workforce, requires measuring five important characteristics:characteristics:

1.1. Satisfaction Satisfaction 2.2. Understanding Understanding 3.3. Contribution Contribution 4.4. Alignment Alignment 5.5. RetentionRetention


Strong indicators of an engaged employeeStrong indicators of an engaged employeeinclude:include:

Assuming responsibility beyond their roleAssuming responsibility beyond their role Helping team members work towards a common Helping team members work towards a common

goalgoal Generating new ideasGenerating new ideas Speaking positively about the organization and its Speaking positively about the organization and its

products/servicesproducts/services Accepting accountability for actions, behaviors Accepting accountability for actions, behaviors

and performance leveland performance level


Engaged employees have been shown to beEngaged employees have been shown to behigher performers and more loyal to the organizationhigher performers and more loyal to the organizationthrough behaviors that revolve around:through behaviors that revolve around: An effort to be innovative and creativeAn effort to be innovative and creative A personal responsibility to make things happenA personal responsibility to make things happen A desire to contribute to the success of the companyA desire to contribute to the success of the company An emotional bond to the organization, its mission An emotional bond to the organization, its mission

and vision.and vision.

Fostering & Growing Fostering & Growing EngagementEngagement

Group ActivityGroup Activity

Describe some best practices within your own Describe some best practices within your own organization that helps foster or drive organization that helps foster or drive

employee engagement employee engagement

Case Studies Case Studies

Harley Davison Harley Davison Harrah’sHarrah’s New Century Financial Corp.New Century Financial Corp.

Harley-DavidsonHarley-Davidson

Harrah’sHarrah’s

New Century Financial New Century Financial

Fostering & Growing EngagementFostering & Growing Engagement

What should employers do?What should employers do?

Fostering & Growing EngagementFostering & Growing EngagementTop Ten Ways to Positively Influence EmployeeTop Ten Ways to Positively Influence EmployeeEngagementEngagement

1.1. Rewards and recognition Rewards and recognition 2.2. Human capital infrastructure Human capital infrastructure 3.3. Learning management Learning management 4.4. Knowledge management Knowledge management 5.5. Performance appraisal Performance appraisal 6.6. Workplace design Workplace design 7.7. Employee relationsEmployee relations8.8. Career development Career development 9.9. Human capital strategyHuman capital strategy10.10. RecruitingRecruiting

10 Ways to Demotivate Employees10 Ways to Demotivate Employees

1.1. Don’t provide a visionDon’t provide a vision2.2. Saying things onceSaying things once3.3. Don’t hold employees accountableDon’t hold employees accountable4.4. Try to improve people’s weaknessesTry to improve people’s weaknesses5.5. Don’t give employees enough room or give them too much Don’t give employees enough room or give them too much

room.room.6.6. Change goals and direction informally, and never make it Change goals and direction informally, and never make it

official.official.7.7. Reward the wrong things, and don’t reward the right things.Reward the wrong things, and don’t reward the right things.8.8. Ignore two laws of nature – The 80/20 Rule and the Law of Ignore two laws of nature – The 80/20 Rule and the Law of

FocusFocus9.9. Keep people in the wrong jobs.Keep people in the wrong jobs.10.10. Don’t spend enough one-on-one time with employeesDon’t spend enough one-on-one time with employees


Management’s sins are mainly acts of omissionManagement’s sins are mainly acts of omission

what management does not do – rather thanwhat management does not do – rather than

commission, such as abuse. But indifferentcommission, such as abuse. But indifferent

treatment, such as failing to recognize andtreatment, such as failing to recognize and

reward employees for jobs well done, has anreward employees for jobs well done, has an

enormous impact on how employees feel, andenormous impact on how employees feel, and

employers’ ability to retain them.employers’ ability to retain them.

A Carrot a DayA Carrot a Day

Research showing that 88% Research showing that 88%

of North American workers of North American workers

cite lack of acknowledgement cite lack of acknowledgement

as their top work issue, as their top work issue,

while 79% leave due to a while 79% leave due to a

lack of appreciation. lack of appreciation.

A Carrot a DayA Carrot a Day

While a fair compensation and benefits packageWhile a fair compensation and benefits package

is absolutely essential to getting employeesis absolutely essential to getting employees

through the door, it’s recognition andthrough the door, it’s recognition and

appreciation that get them engaged. Andappreciation that get them engaged. And

engaged, appreciated workers are moreengaged, appreciated workers are more

productive.productive.


There is likely to be further customization of benefits There is likely to be further customization of benefits to meet the diverse needs of the changing workforce. to meet the diverse needs of the changing workforce.

Employee engagement strategies will be critical to Employee engagement strategies will be critical to making employees feel part of the decision-making making employees feel part of the decision-making process, particularly in work redesign.process, particularly in work redesign.

Increasing the awareness of the link between Increasing the awareness of the link between employees’ performance and an organization’s employees’ performance and an organization’s business goals will positively impact employee business goals will positively impact employee engagement.engagement.

Presenter Information Presenter Information

Belinda Weber, SPHR, CCPBelinda Weber, SPHR, CCP – – [email protected]@amfam.com Organization Effectiveness Consultant Organization Effectiveness Consultant American Family Insurance American Family Insurance 6000 American Parkway 6000 American Parkway Madison, WI 53783Madison, WI 53783(608) 242-4100 ext 30574 (608) 242-4100 ext 30574

Kevin Peternel, SPHR – Kevin Peternel, SPHR – [email protected]@hrgroup.com Vice President and PrincipalVice President and PrincipalHuman Resources Group, Inc.Human Resources Group, Inc.2912 Marketplace Drive, Suite 1052912 Marketplace Drive, Suite 105Madison, WI 53719Madison, WI 53719(608) 233-5491(608) 233-5491www.hrgroup.comwww.hrgroup.com

Thank You for AttendingThank You for Attending

Documents

Let’s Get Engaged Capturing Employees’ Hearts and Minds