Engagement Done Right:

Lessons from Global Organizations

Michelle M. Smith, CPIM, CRP

O.C. Tanner

Michelle M. Smith, CPIM, CRP Named as one of the Ten Best and Brightest Women in the Incentive Industry, Michelle is a highly rated international speaker, writer, and consultant. She is a respected authority on human capital management, internal branding, and engagement who has published and presented more than 475 articles and lectures.

Global Research

The Issues

Key Drivers

How-To’s

Case Studies

Engagement

16% more profitable

18% higher earnings

18% more productive

2.6 times higher growth

37% less absenteeism

60% less quality defects

Engagement » Quality » Productivity

51% less employee theft

12% better with customers

41% fewer patient incidents

62% less likely to be involved in an accident

51% less likely to leave (low turnover organizations)

31% less likely to leave (high turnover organizations)

Engagement » Quality » Productivity

Engaged Customers

23% – 70% – 240%

Internal Brand Alignment 3x – 6x

Significant Employee Unrest

60% 21% 81%

Top performers most unhappy; intend to change jobs

Employee Discontent

Effectiveness of HR Initiatives

Superior Human Capital practices are a

leading indicator of financial performance

6.5%

7.1%

7.9%

- 33.9%

16.5%

9.0%

Total Rewards & Accountability and Value Creation

Collegial, Flexible Workplace and Value Creation

Recruiting & Retention Excellence and Value Creation

Communications Integrity and Value Creation

Focused HR Service Technologies and Value Creation

Prudent Use of Resources

Recognition Ignites Engagement

Engagement’s Impact on Growth

with

engagement

without

engagement

A 15% improvement in engagement equates

to a 2% improvement in operating margin

The Challenge with New Hires

4% 65%

100

7 0

60

19

2

57

23

4

0

10

20

30

40

50

60

70

80

90

100

Improved

Retention

Time to

Productivity

Completion

Rates: Tasks

Best-in-class

Impact of On-boarding Programs

Average

Laggard

+60% Revenue per FTE

+63% Customer Satisfaction

Most Successful On-Boarding Activities

Health care costs per employee have risen over 40% in the last 5 years

If food prices rose at the same levels…

Dozen eggs = $80

1 lb. Butter = $102

Wellness Programs

50-87% of health care costs are believed to be lifestyle-related

Each $1 invested saved $3.48 - $5.82 in health care costs

Reduced absenteeism 28%; worker’s comp 30%; and health care costs 26%

Wellness Programs

Workplace injury costs ($164.7 B)

exceeded the combined profits

of the ‘Fortune 11’ in 2009

2010 costs = $225.8 B

or $1,685/employee

37% increase in 1 year

OSHA targeting Texas;

construction and

chemical industries

Safety Programs

Perception Gap?

Percent of management and employee groups who say their company is above average at

appreciating good work:

Senior management Middle management Staff

Actionable Ideas & How-To’s

Managers Play a Key Role

Only 1 in 5 employees know

their job expectations

25% are extremely unclear

1 of 3 employees feel miscast

10% get progress feedback

Half get no feedback at all

Half do not feel cared for

Complimented = 1% disengagement

Criticized = 22% disengagement

Ignored = 40% disengagement

Training Managers Improves

Quality & Productivity

Engagement

Opportunity

& Well-Being

Trust

Pride in

Organization

Consistent Impact Globally

Engagement

Opportunity

& Well-Being

Trust

Pride in

Organization

Appreciation

Alignment

Communication

Opportunity

and

Well-Being

weak

strong

engagement

strong

weak

Opportunity

and

Well-Being

weak

strong

engagement

adding

appreciation

weak

strong

Trust

weak

strong

engagement

weak

strong

Trust

weak

strong

engagement

adding

appreciation

weak

strong

Company

Pride

weak

strong

weak

strong

engagement

weak

strong

Company

Pride

weak

strong

engagement

weak

strong

adding

appreciation

My opinions seem to count.

I have a best friend at work.

In the last 7 days, I have received recognition or praise for doing good work.

I know what is expected of me.

My supervisor seems to care about me as a person.

There is someone at work who encourages my development.

My company’s purpose makes me feel my job is important

This last year, someone has talked to me about my progress.

This last year, I have had opportunities to learn and grow.

Proven, Quick, Easy, Low Cost & Free Ways

to Engage Staff

More frequent, less formal, general criteria

Less frequent, more formal,

specific criteria

Thank you notes, e-cards, verbal, on-the-spot

Above and beyond, living the values

Sales, wellness, attendance

Safety, ideas, performance management

Milestone awards, President’s award, onboarding, events

Initiated by a person taking some action to recognize (fosters relationship building)

Initiated by passage of specific timeline or achievement of a specific metric

(reinforces performance oriented culture)

Incentives

Technology Training Communication Measurement

Enabling Strategies

Assessment / Solution Design / Management

Alignment & Reinforcement “Recognizing what matters most”

Impact & Reach “Recognizing people the right way”

The Recognition Spectrum™

Further questions can be addressed to:

Michelle.Smith@OCTanner.com

Thank You!

Michelle M. Smith, CPIM, CRP

Michelle is the Past President of the Board of Trustees of the Forum for People Performance at Northwestern University and active in the Global Incentive Council, the Business Marketing Association, the Society of Incentive & Travel Executives, and serves on the Board of Directors for Recognition Professionals International. Michelle is also President Emeritus of the Incentive Marketing Association, on the Board of Directors of the Incentive Federation, the Conference Advisory Board for the Motivation Show, and the Board of Directors of the Recognition Council. She is also a member of the Editorial Board for Return on Performance Magazine, the Performance Improvement Council, WorldAtWork, the Corporate Executive Board and McKinsey Quarterly’s Executive Panel.

Named as one of the Ten Best and Brightest Women

in the Incentive Industry and a President’s Award

winner, Michelle has worked in every facet of

recognition and incentives, both domestically and

internationally. A highly rated international speaker,

writer, and consultant on performance improvement;

Michelle is a respected authority on human capital

management, internal branding, and engagement.

She’s published and presented more than 475 articles

and lectures and has advised many of the world’s

most successful organizations and the governments

of the United Kingdom and the United States on how

to optimize their performance improvement initiatives

to gain maximum return on investment.