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2© 2015 Sirota Consulting LLC
4 Important Numbers
16%
Difference in stock performance of a highly engaged company vs. their matched comparisons
25 years
…since the term “employee engagement” was coined
6,632 Employee engagement related books on Amazon.com
1 in 5
Proportion of de-motivated people in the workplace
3© 2015 Sirota Consulting LLC
Sirota’s Background
Founded in 1972
We survey 1-1.5 million employees every year in companies like these:
We help companies find people solutions to business challenges
Today I want to talk about…
The Rise of Engagement
What have we learnt?
What’s happening next?
Assessment Analysis Action
4© 2015 Sirota Consulting LLC
We’re Living in the Era of Employee Engagement
Top Challenge for CEOs
Human Capital: Attracting, retaining, engaging employees*
*Source: The Conference Board’s 2014 CEO Challenge Survey of over 700 CEOs
An Abundance of Advice Exists
6,632 employee engagement related books on Amazon.com
Spending is on the Rise
In the US, Employers are investing $720 million annually on Engagement Programs**
**Employee Engagement: Market Review, Buyer’s Guide and Provider Profiles, Bersin by Deloitte 2012
5© 2015 Sirota Consulting LLC
18th Century 19th Century 20th Century 21st Century
IndustrialAge
Efficiency
KnowledgeAge
Analysis&
Computing
ConceptualAge
Synthesis&
Sense making
AgriculturalAge
Manpower
ServiceAge
Connection&
Empathy
Adapted from Daniel Pink’s Whole New Mind
Perhaps because Engagement speaks to our challenges
Volatility
Uncertainty
Complexity
Ambiguity
6© 2015 Sirota Consulting LLC
How are employees responding?
2009 2010 2011 2012 201350
60
70
5256
6160
65
My Manager Does a Good Job Managing Poor Performers
2009 2010 2011 2012 201335
50
65
3948
51 53
63
There is Little Wasted Time and Effort in my Organization
2009 2010 2011 2012 201368
73
78
73
7675
71
72
Rate XYZ on Having a Clear Sense of Direction
2009 2010 2011 2012 201345
55
65 6358
5053 53
We Retain Good Quality People
7© 2015 Sirota Consulting LLC
So what have we learnt over the last 25 years?
About performance?
About leadership?
About managers?
About employees?
8© 2015 Sirota Consulting LLC
First, we know engagement is important for performanceAbout
performance?
Efficiency
Innovation
Customer Service
Sales Performance
Turnover
Team Performance
Stock Prices
Employees’ satisfaction ratings explained 22% of the difference in turnover.
Customer focused retail stores demonstrated a 10% greater year over year sales increase.
Stock prices in high morale companies increased 16% in one year. Low morale companies only increased 3% in the same year.
An increase in employee attitudes was linked to 28 million dollars in revenue due to increased customer satisfaction.
Engaged steel mill employees required 34% fewer labor hours to produce a ton of steel.
National Weather Service meteorologists working on highly engaged teams were more accurate at predicting tornadoes.
Financial services employees who felt supported by their bosses were significantly more intellectually invested in their work.
9© 2015 Sirota Consulting LLC
Second, we know that leaders are criticalAbout leadership?
“This company is a great place to work. It’s fulfilling and I’m
proud of it”
“I am motivated to do whatever it
takes , every day”
Individual Fit & Fulfillment• Company cares about me, I fit in• What I do matters (job itself matters, sense
of challenge and achievement)• I have a future with a company that has a
future (career and development opportunity)
Senior Leadership Fosters climate of . . .• Company as a “winner”
with positive future• Great “deal” for employees
(relationship with the company, roles, future)
Effectively Functioning Teams• Openly discuss barriers to effectiveness,
make improvements• Do whatever it takes, “there for each
other” as a team• Higher performing (if no extra-team
barriers)
Local Management Fosters climate of . . . • Partnership and trust, “we’re
in this together”• Openness, involvement• Higher performance
(expectations, feedback)
Analysis of 68 companies varying in size and global scale
What? Who?
10© 2015 Sirota Consulting LLC
Third, manager personality impacts engagementAbout managers?
Employee EQ Employee Engagement
Employee Performance
Manager EQ Manager Engagement
Manager Performance
Multinational Hospitality Group: N=1034, 245 Managers, 799 Employees. 9 month time frame
11© 2015 Sirota Consulting LLC
Last, we need to stop trying to motivate peopleAbout employees?
30 Day 90 Day 180 Day 365 Day60
65
70
75
80
85
90
9591
86
76
75
Motivated to go above and beyond
Case Study of over 1,000 new hires
We need to stop de-motivating them
12© 2015 Sirota Consulting LLC
Leaders know how to build a culture of employee engagement.
Good job of taking action on our employee engagement data.
EE program has had positive impacts on business outcomes.
Leaders understand the role they play in improving engagement and performance.
Leaders work hard to create an environment of employee engagement.
Effective at measuring employee engagement.
Effective at analyzing our employee engagement data.
Effective job making the business case for engagement.
Snr leaders: engagement to be a key business driver and performance indicator.
Snr leadership: recognizes the value of employee engagement.
50
52
59
61
65
71
71
73
79
90
%Favorable
Where is the impact?
Research with The Engagement Institute
Many leadersbelieve in it
Organisations are measuring it
But many are not seeing the benefits
13© 2015 Sirota Consulting LLC
So what needs to happen?
Focus on performance
Build engaging cultures
Make better use of data
14© 2015 Sirota Consulting LLC
First, stop treating engagement as an end in itself
PERFORMANCELEADERSHIP EMPLOYEES
MANAGERS
STRATEGY
PERFORMANCE
TOOLS & RESOURCES
STRONG TEAMS
EXCELLENT PROCESSES
CLEAR STRATEGY
CLEAR GOALS
ACCOUNTABILITY
ENGAGED
COMMITTED
ENTHUSIASTIC
CONTINUOUS IMPROVEMENT / INNOVATION
STRONG VALUES
POSITIVE MANAGEMENT BEHAVIOURS
15© 2015 Sirota Consulting LLC
Second, make it happen every day
DNA of Engagement: How Organizations Create and Sustain Highly Engaging Cultures
16© 2015 Sirota Consulting LLC
8 Attributes of Engaging Organisations
Alignment
Philosophy
Policies & Practices
Communication
Collaboration
Assessment
Leadership
Business Impact
1. Engagement is a business imperative
2. Engagement is part of accomplishing the mission
3. Engaging employees is part of HR practice decisions
4. Open, transparent, 2-way communication
5. One Team
6. Regular assessment & feedback
7. Managers empowered to build Engagement
8. Engaged teams are shown to perform better
17© 2015 Sirota Consulting LLC
OnboardingSurveys
EngagementSurveys
ExitSurveys
PerformanceData
Last, start connecting the dots
• Manager Support at Day 10 Employee Engagement at Day 180
• Non-Financial Rewards in 2010 Engagement Increases in 2011
• Awareness of Career Growth Opportunities 2x Likely to Stay
• 1% Increase in Store Engagement $1,444.29 in quarterly sales
Here’s an example -
18© 2014 Sirota Consulting LLC
Engagement is an important business measure
Over the last 25 years, we have learnt a lot
But many organisations want to see more impact
The next phase is about innovating what we DO rather than what we measure
What am I saying?
EE P
Focus on performance
Build engaging cultures
Make better use of data
Performance driver
Snr leaders matter
EQ matters Natural motivation
52%48
Good job of taking action on our employee engagement data
19© 2014 Sirota Consulting LLC
Stay in touch
Connect: http://sg.linkedin.com/in/lewisgarrad/ With me
With Sirota https://www.facebook.com/Sirota
https://www.linkedin.com/company/sirota