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1
SCCE Compliance & Ethics Institute
Jim Harter, Ph.D.William Kruse, J.D.
Chicago 2016
2
Team-Level Performance:(Percentile Ranking):
Poor(1st–24th)
Fair
(25th–49th)
Good(50th–74th)
Excellent
(75th–99th)
Market: Overall Chicago Brazil
n Size: 3,822 47 41
GrandMean:
Opportunities to learn and grow 3.96 3.94 3.75
Progress in last six months 4.23 4.49 4.26
Best friend 3.49 3.45 3.75
Coworkers committed to quality 4.08 3.45 4.10
Mission/Purpose of organization 3.69 3.65 3.86
My opinions count 3.64 3.57 3.93
Encourages development 4.07 4.34 4.15
Supervisor/Someone at work cares 4.20 3.49 4.28
Recognition last seven days 3.92 4.17 4.04
Do what I do best every day 3.71 3.83 3.71
Materials and equipment 3.66 4.06 3.57
I know what is expected of me at work 4.25 3.22 4.10
A Tale of Two Offices …
3 Copyright © 1993-1998, 2016 Gallup, Inc. All rights reserved.
Employee Engagement Throughout the World
% Engaged
4.1% 39.1%
4 Copyright © 2016 Gallup, Inc. All rights reserved.
3
Structured interviews
Unstructured, free-flowing,
open-ended interviews
Job satisfaction and climate
surveys
Gallup studies in Western Europe, Latin America, Africa, Far East
Ongoing feedback techniques
Varsity management
Long employee surveys
Talent formula
Focus groups
Validation studies — factor analysis of long surveys (100-200 items)
Q12 tested throughout the world
31MRESPONDENTS
198COUNTRIES
72LANGUAGES
1950 1960 1970 1980 1990 2000 2010
1997 First meta-analysis of
1,135 BUs
2002 Meta-analysis published in Journal of
Applied Psychology
2016Ninth iteration of meta-analysis of
82,248 BUs
First, Break
All the Rules
Manager courses
Org. database
Causal impact
Workplace ScienceScience-based focus on the study of excellence
5 Copyright © 2016 Gallup, Inc. All rights reserved.
19401930
Job satisfaction research begins
Employee engagement
organizational practices begin
Gallup studies in Western Europe, Latin America, Africa, Far EastStudies of innate talents
• Clear expectations
• Materials and equipment
• Do what I do best
• Recognition
• Cared about as a person
• Development
• Opinions count
• A mission or purpose
• Committed coworkers
• Strong social bonds
• Progress discussions
• Learning and growth
Basic Needs of Employees to Be Productive
6 Copyright © 1993-1998, 2016 Gallup, Inc. All rights reserved.
4
How
can we
grow?
Do I belong?
What do I give?
What do I get?
12 Elements for Engaging a Workforce
7
Opportunities to learn and growProgress in last six months
Best friendCoworkers committed to qualityMission/Purpose of companyMy opinions count
Encourages developmentSupervisor/Someone caresRecognition last seven daysDo what I do best every day
Materials and equipmentI know what is expected
Growth
Teamwork
IndividualContribution
BasicNeeds
31 million respondents
Copyright © 1993-1998, 2016 Gallup, Inc. All rights reserved.
Employee Engagement Historical Trend
8
10%13%
26%30% 30%
28% 29%26%
30% 30% 29% 28% 28% 29% 30% 30% 31% 32%
38%
70%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
En
ga
ge
d E
mp
loye
es
Global
U.S.
Best Practice
Copyright © 2016 Gallup, Inc. All rights reserved.
Gallup Daily tracking
5
Organizational Engagement Varies
9
19% 16%6% 6%
53%49%
30%23%
28%35%
64%72%
BottomQuartile
BottomHalf
TopQuartile
TopDecile
Copyright © 2009, 2013 Gallup, Inc. All rights reserved.
ENGAGED
NOT
ENGAGED
ACTIVELY
DISENGAGED
EPS +147%
Copyright © 2016 Gallup, Inc. All rights reserved.
Engagement
Copyright © 2012, 2013 Gallup, Inc. All rights reserved.
Strategy/LeadershipCommunicationAccountabilityDevelopment
Culture Change
10 Copyright © 2016 Gallup, Inc. All rights reserved.
6
2016 Q12®Meta-Analysis Components
11
Correlations of Q12 to 2016 Study
1,882,131 Employees
82,248 Business/Work units
339 Research studies
230 Organizations
73 Countries
49 Industries
Key Client Performance Metrics
Customer loyalty/engagement
Profitability
Productivity
Sales
Turnover
Safety incidents
Patient safety incidents
Shrinkage
Absenteeism
Quality (defects)
Copyright © 2016 Gallup, Inc. All rights reserved.
The Business Impact of Q12®: Highly Engaged Teams Perform BetterTop-quartile-engagement work units have substantially better outcomes than their bottom-quartile counterparts.
12
-41%
-24%
-59%
-28%
-70%
-58%
-40%
10%
17%20% 21%
-70%
-60%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%Turnover
Absenteeism ShrinkageSafety
Incidents
Customer Metrics
Productivity Sales
High-Turnover
Orgs.
Low-Turnover
Orgs.
PatientSafety
Incidents
Quality(Defects)
Business units in the top engagement quartile have 28% less shrinkage and 21% higher profitability than their bottom-quartile counterparts.
Profitability
Copyright © 2016 Gallup, Inc. All rights reserved.
7
20%
28%32%
38%42%
46%50%
54%58%
62%
68%72%
80%
0%
20%
40%
60%
80%
100%
1st 5th 10th 20th 30th 40th 50th 60th 70th 80th 90th 95th 99th
Higher Engagement Predicts Better Overall PerformanceProbability of above-average performance*
13
Engagement PercentileAnalysis of business units across organizations in Gallup’s database
Success R
ate
Copyright © 2016 Gallup, Inc. All rights reserved.
*Composite of absenteeism, turnover, shrinkage, sales, safety, quality, customer metrics, productivity and profitability
A Year in the Life of an American
14 Copyright © 2016 Gallup, Inc. All rights reserved.
Based on data from the Gallup-Healthways Well-Being Index
% With a lot of happiness/enjoyment, without a lot of stress/worry % With a lot of stress/worry, without a lot of happiness/enjoyment
8
The Workplace and Physiological Outcomes
15
Physiological Devices
• Actiheart monitor
• Saliva collection
Harter, J. K., & Stone, A. S. (2011). Engaging and disengaging work conditions, momentary experiences, and cortisol response. Motivation and Emotion.
Copyright © 2016 Gallup, Inc. All rights reserved.
ESP
Before Prompt. Did you feel you could not control important things?
1 Not at all
2 Slightly
3 Somewhat
4 Fairly
5 Very much
Done
Progression of Interest Throughout the Day Varies for Engaged and Disengaged Employees
16 Copyright © 2016 Gallup, Inc. All rights reserved.
Harter, J. K., & Stone, A. S. (2011). Engaging and disengaging work conditions, momentary experiences, and cortisol response. Motivation and Emotion.
Low Engagement*
Time of Day (24-hour clock)
3.8
4.0
4.2
4.4
10 2015
High Engagement*
Time of Day (24-hour clock)
10 2015
*Working moments only
Le
ve
l
Le
ve
l
3.6
3.8
4.0
4.2
4.4
3.6
9
Momentary Interest and Cortisol
17 Copyright © 2016 Gallup, Inc. All rights reserved.
Harter, J. K., & Stone, A. S. (2011). Engaging and disengaging work conditions, momentary experiences, and cortisol response. Motivation and Emotion.
*Controlling for time of day
Co
rtis
ol (
nm
/ml)
Interest
4.5
5.0
5.5
6.0
0.04.0
6.02.0 4.0
Diurnal Cycle of Cortisol by Engagement Median-Split Groups
18 Copyright © 2016 Gallup, Inc. All rights reserved.
Harter, J. K., & Stone, A. S. (2011). Engaging and disengaging work conditions, momentary experiences, and cortisol response. Motivation and Emotion.
Time of Day (24-hour clock)
Time of Day (24-hour clock)
10
7
8
6
4
2
08 9 10 11 12 13 14 15 16 17 18 19 20 21 22
10
7
8
6
4
2
08 9 10 11 12 13 14 15 16 17 18 19 20 21 22
Co
rtis
ol (
nm
/ml)
C
ort
iso
l (n
m/m
l)
Engagement Low Engagement High
10
Daily Engagement
19
Workday Reconstruction
• Doing productive work• Communicating with manager• Working with coworkers• Working with customers• In meetings• Doing email• Working alone• Sitting• Socializing about nonwork-related issues• Using strengths• Feeling absorbed in work• Doing what you don’t do well
Copyright © 2016 Gallup, Inc. All rights reserved.
Engagement and Who You Are Within the Moment
20 Copyright © 2016 Gallup, Inc. All rights reserved.
Harter, J. K., & Stone, A. S. (2011). Engaging and disengaging work conditions, momentary experiences, and cortisol response. Motivation and Emotion.
Low Engagement*
Time of Day (24-hour clock)
3.5
4.0
4.5
5.0
10 2015
High Engagement*
Time of Day (24-hour clock)
3.5
4.0
4.5
5.0
10 2015
*Working moments only
Lik
e p
eo
ple
th
at
I a
m w
ork
ing
with
rig
ht n
ow
Lik
e p
eo
ple
th
at
I a
m w
ork
ing
with
rig
ht n
ow
11
Clear Expectations Guide ConversationsUnclear expectations also guide conversations.
21
2.00
2.10
2.20
2.30
2.40
2.50
2.60
2.70
Knowing What’s Expected
%1-4 %5
2+ Hours
Hours Yesterday Socializing or Talking About Nonwork-Related Topics
0 Hours
Negative M
ood
Copyright © 1993-1998, 2016 Gallup, Inc. All rights reserved.
Internal Theft — % Quarterly
22
0.49%0.47%
0.43%0.40%
0.00%
0.25%
0.50%
Bottom 25% Top 25%
Opinions Count
Middle Quartiles
Copyright © 1993-1998, 2016 Gallup, Inc. All rights reserved.
12
Actual Internal Theft
23
-$198,090
-$154,020
-$132,528-$146,869
-$250,000.00
-$200,000.00
-$150,000.00
-$100,000.00
-$50,000.00
$0.00Bottom 25% Top 25%
GrandMean
Middle Quartiles
Copyright © 2016 Gallup, Inc. All rights reserved.
Internal Theft — Delta From Budget
24
-$145,739 -$150,317-$157,658
-$166,217-$175,000.00
-$150,000.00
-$125,000.00
-$100,000.00
-$75,000.00
-$50,000.00
-$25,000.00
$0.00Bottom 25% Top 25%
GrandMean
Middle Quartiles
Copyright © 2016 Gallup, Inc. All rights reserved.
13
Days Missed From Work Last Year, Excluding Vacation —Middle Management
25
4.10
7.10
9.50
0
2
4
6
8
10
Engaged Not Engaged Actively Disengaged
Copyright © 2016 Gallup, Inc. All rights reserved.
Total Incidents Reported by Quartile
26
1.88
2.87
3.24
0
2
4
Top Quartile Middle Half Bottom Quartile
GrandMean 3.71 GrandMean 3.42 GrandMean 3.10
Safety
Copyright © 2016 Gallup, Inc. All rights reserved.
AA(26KB3
Slide 26
AA(26 are this slide and 27 the same?Anderson, Ashley (Furne), 9/20/2016
KB3 Keep 26. Delete 27\Kruse, Bill, 9/22/2016
14
Percent Specification Compliance — % Change
27
1.16%
-0.05%
-0.5%
0.0%
0.5%
1.0%
1.5%
Top Half Bottom Half
GrandMean
Copyright © 2016 Gallup, Inc. All rights reserved.
Number of OSHA Incidents by GrandMean Grouping
28
Safety
4.766
8.945
0
1
2
3
4
5
6
7
8
9
10
Top 50% Bottom 50%
GrandMean
88% Difference
Copyright © 2016 Gallup, Inc. All rights reserved.
15
Number of OSHA Incidents by Quartile
29
Safety
12.72
23.40
0
5
10
15
20
25
Top Quartile Bottom Quartile
GrandMean
Copyright © 2016 Gallup, Inc. All rights reserved.
Workers’ Comp — Number of Claims
30
Safety
9.28 9.22
8.00
6.81
0
1
2
3
4
5
6
7
8
9
10
Bottom 25% Top 25%
An
nu
al A
vera
ge
Expectations
Middle Quartiles
Copyright © 1993-1998, 2016 Gallup, Inc. All rights reserved.
16
Strengths Team Composition — Meta-Analysis Study of 11,441 teams across six organizations
31
Executing Influencing Relationship Building Strategic Thinking
Achiever Activator Adaptability Analytical
Arranger Command Connectedness Context
Belief Communication Developer Futuristic
Consistency Competition Empathy Ideation
Deliberative Maximizer Harmony Input
Discipline Self-Assurance Includer Intellection
Focus Significance Individualization Learner
Responsibility Woo Positivity Strategic
Restorative Relator
Copyright © 2000, 2016 Gallup, Inc. All rights reserved.
Highly Engaged Teams Know Their Strengths
90%+ Strengths Known
Copyright © 2016 Gallup, Inc. All rights reserved.33
3.80
3.85
3.90
3.95
4.00
4.05
4.10
4.15
4.20
4.25
4.30
4.35
<= .00 .01-10.00 10.01-20.00 20.01-30.00 30.01-40.00 40.01-50.00 50.01-60.00 60.01-70.00 70.01-80.00 80.01-90.00 90.01+
% Strengths Known
Q12 GrandMean by Percentage “Strengths Known” Across Companies
17
Gallup 2016 Strengths Meta-Analysis
33 Copyright © 2016 Gallup, Inc. All rights reserved.
14%-29% INCREASED PROFIT
23%-59% DECREASED ACCIDENTS
WORKGROUPS THAT RECEIVED STRENGTHS-BASED DEVELOPMENT WERE FOUND TO HAVE:
1.2MEMPLOYEES
49,495WORKGROUPS
45COUNTRIES
Optimizing Company Culture
Organizational identity
34 Copyright © 2016 Gallup, Inc. All rights reserved.
18
35
Leadership Human Capital
Work Teams & Structures
Values & Rituals
Performance
• Vision and
aspirations
• Team interaction
• Communication
• Values
• Social
expectations
• Social
interactions
• Attraction and
selection
• Training and
development
• Engagement
• Well-being
• Knowledge
management
• Business units
• Geography
• Team formation
• Level of matrix
• Social networks
• Goal setting
• Benchmarking
• Accountability
• Rewards and
recognition
These drivers – together and independently –shape the behavior of employees.
Copyright © 2016 Gallup, Inc. All rights reserved.
• Following an evidence-based approach — specifically when it comes to assessing the impact of values
• Driving openness and transparency in culture surveys
• Comprehensiveness of feedback from quantitative surveys
• Skills and training — ensuring auditors are able to work with fairly subjective data, qualitative and quantitative
• Positioning the audit — specifically anonymity
• Despite being independent and objective — dealing with your own bias — as you are part of the same culture
Auditing Culture
36 Copyright © 2016 Gallup, Inc. All rights reserved.
19
37
Leadership Human Capital
Work Teams & Structures
Values & Rituals
Performance
• Vision and
aspirations
• Team interaction
• Communication
• Values
• Social
expectations
• Social
interactions
• Attraction and
selection
• Training and
development
• Engagement
• Well-being
• Knowledge
management
• Business units
• Geography
• Team formation
• Level of matrix
• Social networks
• Goal setting
• Benchmarking
• Accountability
• Rewards and
recognition
Copyright © 2016 Gallup, Inc. All rights reserved.
Provides a sense of identity for employees and increases their engagement, connection
to the organization
Is a sense-making device
Reinforces the values of the organization
Serves as a control mechanism for shaping behavior
Why Culture Is Important
38 Copyright © 2016 Gallup, Inc. All rights reserved.
20
A Million Ways to Define Culture
39
Artefacts
Shared values and practicesDescriptive
Stories
Cultural products
Mission
Organization culture is different from organizational climate
Perceived meaning Values
It’s the way we do things around here
Copyright © 2016 Gallup, Inc. All rights reserved.
AA(29KB4
Defining a Culture
How does your organization want to be known to others?
Why does your organization exist?
How you do things in your organization – that supports your purpose and brand.
Defining Your Purpose Defining Your Brand Defining a Culture
Gallup’s experience has shown culture should be defined, measured, and managed simultaneously with the organization’s purpose and brand.
Copyright © 2016 Gallup, Inc. All rights reserved.40
Slide 39
AA(29 Is this supposed to be Artifacts?Anderson, Ashley (Furne), 9/22/2016
KB4 Ask Nate D or Jim.Kruse, Bill, 9/22/2016
21
ASSESSMENTS CONDUCTED IN MORE
THAN 60 COUNTRIES
AND IN MORE THAN 30LANGUAGES
OVER 10 MILLION EMPLOYEES ASSESSED FOR MYRIAD ROLES INCLUDING 50,000 LEADERS
32 OFFICES IN
18 COUNTRIES
CLIENTS IN OVER
2,000ORGANIZATIONS
AND OVER 20INDUSTRIES
80+YEARS OF
EXPERIENCE
Copyright © 2016 Gallup, Inc. All rights reserved.
Gallup’s Expertise
41
Using Gallup’s talent-based hiring solutions, your organization will experience the following benefits:
Advantages of Talent-Based Hiring
SPEEDEmployees operating from talents suited to a role learn the role faster and adapt to
more variance in the role quicker.
PRODUCTIVITY AND PRECISIONEmployees operating from talents are more productive, produce at a higher quality and
exceed expectations more often.
LONGEVITY AND ATTENDANCEEmployees operating from talents stay
longer, miss less work and build stronger customer relationships.
Copyright © 2016 Gallup, Inc. All rights reserved.42
22
What Is Talent?
43 Copyright © 2016 Gallup, Inc. All rights reserved.
Find the Best of the Best
44
NATURAL TALENT ACQUIRED CHARACTERISTICS
Thoughts
Feelings
Behaviors
Knowledge
Skills
Experience
VS.
Copyright © 2016 Gallup, Inc. All rights reserved.
23
What Is Talent?
Think about the best manager you’ve ever had.
How would you describe him or her?
46 Copyright © 2016 Gallup, Inc. All rights reserved.
What Is Talent?
Think about the best manager you’ve ever had.
How would you describe him or her?
Excellent performers think, feel and behave differently.
47 Copyright © 2016 Gallup, Inc. All rights reserved.
24
Talent is the natural capacity for excellence, which Gallup
measures using scientific assessments that evaluate naturally
recurring patterns of thought, feeling or behavior that can
be productively applied.
48 Copyright © 2016 Gallup, Inc. All rights reserved.
• Vigilance
• Discipline
• Responsibility
• Communication
• Teamwork
Examples of Natural Talents That Predict Fewer Accidents
48 Copyright © 2016 Gallup, Inc. All rights reserved.
25
Outcomes Associated With Low Talent Fit to the Role
49 Copyright © 2016 Gallup, Inc. All rights reserved.
24xMORE LIKELY TO HAVE SERIOUS REPORTABLE
ACCIDENTS
4xMORE LIKELY TO HAVE
REPORTABLE ACCIDENTS
5xMORE HOURS OF MISSED WORK
AND 78:1 RATIO OF WORKERS’ COMPENSATION CLAIMS
Transportation Industry Hospitality Industry Manufacturing Industry
Workplace Deviance Is Impacted by Both Personality and Environment
50 Copyright © 2016 Gallup, Inc. All rights reserved.
26
We’ve all used it to assign resources and assess risk.
Trace Risk Map
51 Copyright © 2016 Gallup, Inc. All rights reserved.
Volkswagen
52
Did they pay too much attention to external risk factors at the expense of talent, engagement and culture data?
PERCENTAGE OF U.S. CONSUMERS FAMILIAR WITH VW SCANDAL
75% Gallup Panel
Copyright © 2016 Gallup, Inc. All rights reserved.
27
Copyright Standards
53 Copyright © 2016 Gallup, Inc. All rights reserved.
This document contains proprietary research, copyrighted materials and literary property of Gallup, Inc. It is for the guidance of your organization only and is not to be copied, quoted, published or divulged to others outside your organization. All of Gallup, Inc.’s content is protected by copyright. Neither the client nor the participants shall copy, modify, resell, reuse or distribute the program materials beyond the scope of what is agreed upon in writing by Gallup, Inc. Any violation of this Agreement shall be considered a breach of contract and misuse of Gallup, Inc.’s intellectual property.
This document is of great value to Gallup, Inc. Accordingly, international and domestic laws and penalties guaranteeing patent, copyright, trademark and trade secret protection safeguard the ideas, concepts and recommendations related within this document.
No changes may be made to this document without the express written permission of Gallup, Inc.
Gallup®, Gallup Panel™, Q12®, CliftonStrengths™ and each of the 34 CliftonStrengths theme names are trademarks of Gallup, Inc. All rights reserved. All other trademarks and copyrights are property of their respective owners.