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Employee engagement –Igniting passion through
purpose, participation & progress
Dr Louise Parkes
e: [email protected] p: +61 2 8875 2803
Infosys HR Networking Breakfast
Sydney, 2nd March 2011
who is voice project?
• Voice Project specialises in surveying engagement,
leadership and service quality
• We have grown out of a research programme at
Macquarie University and our team of 17 people are
based on campus at Macquarie University
• We have now completed 420 surveying projects across
180 clients, collected benchmarking data from over 2,500
organisations, and “given a voice” to over 500,000
employees and clients
2|
• Engagement
• What is it? Why does it matter?
• Drivers of Engagement
• Purpose
• Participation
• Progress
• The Ps in practice
agenda
3|
understanding employee engagement
• What does it mean to you?
4|
in-role
behaviour
job
satisfaction
citizenship
behaviours
dedicationabsorption
vigour
organisation
commitment
proactivity
adaptivity
discretionary
effort
intention to
staypositive
affectivity
Strongest
predictors of
organisation
performance
See Langford, P. H. (2010). The nature and
consequences of employee engagement:
Searching for a measure that maximizes the
prediction of organisational outcomes, in
Albrecht, S. (Ed.) “Handbook of Employee
Engagement”. London: Edward Elgar
Publishing.
5|
Job Satisfaction
Positive Affectivity
Absorption
Dedication
VigourIntention To
StayOrganisation
Commitment
Citizenship
Behaviours Towards
Organisation
Citizenship
Behaviours Towards
Individuals
In-Role
Behaviours
Adaptivity
Discretionary
Effort
Proactivity
JOB SATISFACTION
PROFICIENCY
ATTITUDES
BEHAVIOURS
EM
PL
OY
EE
EN
GA
GE
ME
NT
consequences of engagement
• Our research shows 5% higher employee
engagement is associated with:
• 1.5% lower employee turnover; for a 1000-
person organisation that’s 15 fewer people
leaving per year, and $1m lower turnover costs
for the organisation per year
• 2.5% higher productivity; $2500 higher
productivity per person per year; for a 1000
person organisation that’s $2.5m higher
productivity for the organisation per year
• Even if you achieved no other gains (eg, safety,
absenteeism, workers comp, reduced fraud &
risk, customer loyalty, innovation), that’s
a benefit of $3,500 per employee per year
6|
Assumptions behind above calculations: Average salary A$66K; turnover costs 100% of salary;
SD of productivity = 32% of mean output (Schmidt & Hunter, 1998); mean output per employee
of A$100K; correlation of .31 between engagement and productivity; correlation of .27 between
engagement and turnover (means of Voice Project’s observed correlations).
rewards?
work-life
balance?
my
career?
7|
drivers of engagement?
engagement
model
purpose• organisation
direction
• results focus• mission &
values• ethics• role clarity
• diversity
participation• leadership• recruitment
• cross-unit cooperation
• learning & development
• involvement
• reward & recognition
• appraisal• supervision• career
opportunities
people• motivation &
initiative
• talent• teamwork
passion/engagement• organisation commitment• job satisfaction
• intention to stay
progress• organisation objectives• change & innovation
• customer satisfaction
property• resources• processes
• technology• safety
• facilities
peace• wellness• work-life balance
• flexibility
DR
IVE
RS
OU
TC
OM
ES
Based on Langford, P. H. (2009). Measuring
organisational climate and employee
engagement: Evidence for a 7 Ps model of
work practices and outcomes. Australian
Journal of Psychology, 61, 185-198.
8|
purposeorganisation direction
results focus
mission & values
ethics
role clarity
diversity
participationleadership
recruitment
cross-unit cooperation
learning & development
involvement
reward & recognition
appraisal
supervision
career opportunitiespassion /
engagementorganisation commitment
job satisfaction
intention to stay
progressorganisation objectives
change & innovation
customer satisfaction
believe,
belong &
achieve
Based on Langford, P. H., Parkes, L.
P., & Metcalf, L. (2006). Developing a
structural equation model of
organisational performance and
employee engagement. Proceedings of
the joint conference of the Australian
Psychological Society and the New
Zealand Psychological Society,
Auckland, New Zealand.9|
1994 2010
purposeorganisation direction
results focus
mission & values
ethics
role clarity
diversity
passion /
engagementorganisation commitment
job satisfaction
intention to stay
“I believe in the
purpose, work
and values of
this
organisation”
Parkes & Langford (2008) Work-life balance or work-life alignment? A
test of the importance of work-life balance for employee engagement
and intention to stay in organisations. Journal of Management &
Organisation 14 (3) 267-284
strongest driving
practice
11|
• Approx 10 employees from 53 NFP and
53 for-profit organisations, 1159
respondents, 2004-2006
• Key drivers of passion are the same
across sectors:
• Purpose, Participation & Progress
• Mission & Values, Change and Innovation,
Career Opportunities & Involvement
• Not the money - rewards less important
for engaging employees in NFPs
NFP versus corporate organisations?
Parkes, L. P. & Langford, P. H. (2006). Money or the Mission?
Comparing drivers of employee engagement in commercial and
not-for-profit organisations. Proceedings of the Australian and
New Zealand Academy of Management Conference, Yeppoon,
QLD.
12|
a higher purpose?
• “This organisation has a positive impact on society & the
community”
• “This organisation plays a role in society that goes beyond the
mere generation of profits”
• 2008: 3079 employees in 302 organisational units
• 79% commercial
• 14% gov
• 7% NFP
1
1.5
2
2.5
3
3.5
4
4.5
5
Low High
Belief in Mission & Values
Passio
nHigh Soc Resp
Low Soc Resp
13|
Parkes (2010) Purpose and passion:
Why are organisation mission & values
so important for employee engagement?
27th International Congress of Applied
Psychology. Melbourne, Australia.
all types of staff?
1. achieving organisation
objectives (.59)
2. mission & values (.57)
3. change & innovation (.53)
4. leadership (.53)
5. career opportunities (.52)
1. role clarity (.51)
2. career opportunities (.51)
3. achieving organisation
objectives (.51)
4. mission & values (.48)
5. rewards & recognition (.47)
8 universities
5564 academic staff 8388 general/professional staff
14|
• Even in Australia
• Even in commercial corporations
• Regardless of the ‘nobility’ of the cause
• In both ‘delivery’ and ‘support’ staff
purpose fires people up!
15|
• What is the purpose of your organisation?
• What are your core values?
• How strongly do you agree with those purpose and values?
• How many staff in your organisation could recall your
mission/vision/values? _____ %
• How many staff would strongly endorse them? ______ %
your experience...
strongly
agree
strongly
disagree 1 5 10
16|
purposeorganisation direction
results focus
mission & values
role clarity
ethics & diversity
17|
purpose in practice
“Building a visionary
company requires
1% vision and 99%
alignment”
Collins & Porras
(1996) HBR
purpose• organisation
direction
• results focus• mission &
values• ethics• role clarity
• diversity
participation• leadership• recruitment
• cross-unit cooperation
• learning & development
• involvement
• reward & recognition
• appraisal• supervision• career
opportunities
people• motivation &
initiative
• talent• teamwork
passion/engagement• organisation commitment• job satisfaction
• intention to stay
progress• organisation objectives• change & innovation
• customer satisfaction
property• resources• processes
• technology• safety
• facilities
peace• wellness• work-life balance
• flexibility
DR
IVE
RS
OU
TC
OM
ES
alignment
decisions, processes,
way people managed
consistent with
values?
alignment
decisions, processes, way
people managed
consistent with values?
18|
drivers & gaps for engagement
Results Focus
Work/Life Balance
SupervisionTalent
Ethics
ResourcesFlexibility
Cross-Unit CooperationInvolvement
Career Opportunities
Entrepreneurship
Teamwork
Diversity
Role Clarity
Mission & Values
SafetyWellness
Motivation &
Initiative
Workload Organisation DirectionProcesses
Recruitment & Selection
Facilities Leadership
TechnologyLearning &
Development
Performance Appraisal
Rewards & Recognition
Middle ManagementResearch
Teaching
Community
Engagement
importance
pe
rfo
rma
nc
e
higherlower
low
er
hig
he
r
improving
legend:
maintain
prioritise
Gap
analysis
based on
over
100,000
employees
across
more than
2,000 of
Voice
Project’s
research &
consulting
clientsEnvironmental
Responsibility
Social Responsibility
19
See Mingo, S., & Langford, P. H. (2008). The HRM-Performance Link: A Longitudinal, Business-Unit Investigation.
Proceedings of the 22nd Annual Conference of the Australian and New Zealand Academy of Management, Auckland,
New Zealand, December. |
promote
limit
Levels of Trust in Co-Workers and Management
(% Favourable)
57%
61%
70%
74%
90%
40% 50% 60% 70% 80% 90% 100%
Senior Executives
Senior Managers
Middle Managers
Supervisors
Co-workers
Low High
20|
participation: trust in leadership
Impact .53
Impact .50
Impact .42
Impact .35
Impact .35
• Demonstrate trust in employees
• Increase visibility and accessibility
• Communicate common identity
• Role model integrity and fairness
• Create a supportive workplace
21|
participation: trust in leadership
• Empower employees for decision-making
• Guide through clear organisation direction
• Consult and communicate on change
• Educate and train managers
• Create processes for evaluation and feedback
22|
participation: involvement
• Communicate goal progress and achievement
• Champion continuous improvement
• Provide a product/service that staff are proud of
23|
progress leading passion
questions for discussion
1. Do you have an engaging purpose that is clearly articulated throughout your organisation?
2. How do you measure progress against your core purpose and toward your vision?
3. Do you recruit people based on their beliefs and values?
4. How do you reinforce the connection between job roles and organisation purpose for your
support staff?
5. How do you measure alignment of your systems, practices, processes and people with
your purpose and values?
6. How have you seen leaders most effectively build trust and communication?
7. Is change in your organisation driven top-down by management, or bottom-up by
passionate employees? Why do you think this is?
24|