You must be the change you wish to see in the world” -Gandhi 1 © Development Dimensions Int’l, Inc., MMIIX. All rights reserved. C O M P E T I T I V E A D V A N T A G E. R E A L I Z E D. A Status Report – Corporate Colleague Engagement Today Presented by Jim Thomas, PhD Vice President, Consulting Services March 7, 2008 2 © Development Dimensions Int’l, Inc., MMIIX. All rights reserved. A Working Definition of Employee Engagement Actively committing to one’s work and to invest one’s time, talent, and best efforts to accomplish organizational goals. 3 © Development Dimensions Int’l, Inc., MMIIX. All rights reserved. Why is Employee Engagement important? Engagement correlates to better outcomes... 62% more likely to grow in revenue 23% more likely to increase customer satisfaction Source: DDI, 2006 4 © Development Dimensions Int’l, Inc., MMIIX. All rights reserved. Why is Employee Engagement important? Engagement correlates to retention Highly engaged employees are 60% less likely to say they are about to leave Source: DDI, 2006 5 © Development Dimensions Int’l, Inc., MMIIX. All rights reserved. How does DDI measure Employee Engagement? E3™ employee engagement survey – 20 item survey – 17 items that measure five engagement facets • Empowerment • Teamwork and Collaboration • Growth and Development • Support and Recognition • Efforts Aligned with Organization Direction – 6 3 items that measure satisfaction and loyalty (outcomes) © Development Dimensions Int’l, Inc., MMIIX. All rights reserved. How Are Organizations Doing? 80% 70% 60% Employees 50% 40% Frontline Leaders 30% 20% Senior Leaders 10% 0% Actively Disengaged Massive Middle Love My Job! Source: DDI Normative Database, 2006 7 © Development Dimensions Int’l, Inc., MMIIX. All rights reserved. What’s working .. Highest Engagement Items Percent of Respondents Expressing “Agreement” with E3 Items Manufacturing Services Healthcare 88% 90% 92% Overall, I have a good understanding of what I am supposed to be doing in my job. 82% 79% 76% I can make meaningful decisions about how I do my job. 73% 79% 73% People in my work groups cooperate with each other to get the job done. 62% 71% 80% I find personal meaning and fulfillment in my work. 68% 78% 76% In my work group, my ideas and opinions are appreciated. 60% 70% 70% In my work group, people try to pick up new skills and knowledge. 8 Survey Item © Development Dimensions Int’l, Inc., MMIIX. All rights reserved. What’s not working … Lowest Engagement Items Percent of Respondents Expressing “Agreement” with E3 Items Manufacturing Services Healthcare 42% 52% 44% In my work group, people are held accountable for low performance. 41% 52% 50% In this organization, different work groups reach out the help and support each other. 9 Survey Item 43% 57% 57% I am kept well informed about changes in the organization that affect my work group. 44% 60% 60% I get sufficient feedback about how well I am doing. 46% 59% 61% In my work group, meetings are focused and efficient. 47% 62% 62% My work group makes efficient use of its resources, time and budget. © Development Dimensions Int’l, Inc., MMIIX. All rights reserved. Effective Communication can Increase Engagement Percent of Respondents Expressing “Agreement” with E3 Items Manufacturing Services Healthcare 42% 52% 44% In my work group, people are held accountable for low performance. 41% 52% 50% In this organization, different work groups reach out the help and support each other. 10 Survey Item 43% 57% 57% I am kept well informed about changes in the organization that affect my work group. 44% 60% 60% I get sufficient feedback about how well I am doing. 46% 59% 61% In my work group, meetings are focused and efficient. 47% 62% 62% My work group makes efficient use of its resources, time and budget. © Development Dimensions Int’l, Inc., MMIIX. All rights reserved. What does this mean for Leaders? • Managers can impact engagement • Improve communication connect employees role/efforts to meaningful outcomes • Establish and align people management systems to support engagement • Look for “engagement readiness” when selecting employees 11 © Development Dimensions Int’l, Inc., MMIIX. All rights reserved. Leaders’ Engagement Drives Employee Engagement Leader Engagement Employees with Highly Engaged Leaders: – 37% more engaged – 45% more likely to stay Employee Source: DDI, 2006 12 © Development Dimensions Int’l, Inc., MMIIX. All rights reserved. What about Authenticity? You must be the change you wish to see in the world” -Gandhi 13 © Development Dimensions Int’l, Inc., MMIIX. All rights reserved.