Employee Engagement – Leveraging Leadership and Communications to make a Difference This material and any accompanying remarks are provided for informational purposes only and nothing contained in either should be taken as a legal opinion or as legal advice VA State SHRM – April 30, 2014 Copyright 2014 Willis North America, Inc. Why Employee Engagement Matters TO WIN CUSTOMERS – and a bigger share of the marketplace – companies must first win the hearts and minds of their employees Engaged companies outperform their competition 22% higher profitability 21% higher productivity 10% higher customer metrics 37% lower absenteeism 48% fewer safety incidents 41% fewer quality incidents (defects) 1| Page Definition of Employee Engagement “A heightened emotional and intellectual connection that an employee has for his/her job, organization, manager, or coworkers that, in turn, influences him/her to apply additional discretionary effort to his/her work.” --The Conference Board 2| Page New Rules of Engagement – BI World Wide Employee Engagement Employees engage with their employer in four distinct ways: 1. Company – employees feel personal attachment, affiliation, passion toward the company as a whole 2. Job - employees value and feel personal involvement with their work and the tasks associated with their specific jobs 3. Supervisor/Leader – employees feel personal attachment, commitment, and affiliation with their direct supervisors and higher level leaders 4. Colleagues/coworkers – employees value relationships and feel emotional attachment to the other members of their team or to colleagues that they work with directly. 3| Page When it Comes to Employee Engagement, One Size Does Not Fill All, Cornell University CAHRS April 2013 Current State of Employee Engagement 50% would like to leave their jobs, including 25% of best performers. (Right Management) 74% of departed employees cited a lack of employer engagement as their principal reason for leaving. (Harvard Business Review) Disengaged employees are 24% less likely to quit than engaged employees. (Conference Board) 4| Page Can you tell by looking? Fully Engaged (30%) Partially Engaged (50%) Disengaged (20%) 5| Page The Gallup Organization – 2013 State of the American Workplace Report Engagement Categories 6| Page Drivers of Engagement In addition to Transparency Openness 7| Page So how can we move engagement levels? 8| Page Leadership, Communications and Knowing your Workforce 9 Top drivers of sustainable engagement among U.S. workers are Leadership Stress, balance and workload Goals and Objectives Supervision Organization’s image (more specifically your EVP) 10| Page 2012- 2013 Towers Watson Talent Management & Rewards Survey 1. Leadership Employee engagement starts at the top. – Key driver is the actions of senior leaders • Leaders must demonstrate support for an engaged company culture by personally living their company’s values. Best Practices from Best Employers – Make Employee Engagement a Business Priority – 6 out of 10 companies report Employee Engagement as the #1 objective of their people program investment 11| Page Leadership Senior Leader Mindset: A. “Give ‘em an inch and they’ll take a mile” OR B. “If we give, they will give back.” A. Employee Engagement is desirable OR B. Employee Engagement is critical for our business success 12| Page Leadership and Connecting with Employees Encourage senior management to be a part of the employees’ corporate life. – Install regular sessions where senior management speaks to all employees and create virtual ask your CEO — where employees are being heard. CEO CORNER •Write to Dominic •Read Dominic’s Blog •Request a video, phone call or client visit with Dominic 13| Page Leadership and Connecting with Employees Communication: The Cornerstone of an Engaged Workforce Culture “When leaders tell employees where they are going, why they’re going there and how they are going to get there – and when they provide appropriate levels of trust, recognition and empathy - productivity goes up.” The Nine Principles of Service and Organizational Excellence 1. 2. 3. 4. 5. 8. 14| Page Commit to Excellence Measure the Important Things Build a Culture around Service Create and Develop Leaders Focus on Employee Satisfaction… Communicate at all Levels How to Increase Belief In Leadership 15| Page 2. Relationship with Direct Manager Connect – Leaders must show that they value and respect their employees. • If an employees’ relationship with their managers is fractured, then no amount of perks will persuade employees to perform at top levels. Convey/Communicate – Good Leaders provide clarity around expectations, provide regular and routine feedback about performance (both individual and organizational) and what one needs to do to advance or take on new tasks/opportunities. 16| Page 7 Things Every Great Boss Should Do Acknowledge – let employees know they are doing a good job Motivate – set high standards and stick to them enlisting employee input Communicate – clearly, honestly and often Trust – believe your employees can meet or exceed organizational goals and support them in their endeavors Develop- provide tools and training so as your employees can reach full potential Direct – challenge your employees but not overwhelm them Partner – create and cultivate a sense of camaraderie 17| Page In simpler terms: Treat your employees right: – Respect (being sensitive to needs, desires and goals) – Objectives (set clear objectives involving them in the process) – Awareness (increase awareness by providing feedback) – Dialogue (on-going regular communications) ROAD 18| Page 19| Page 3. Communications – Leadership/Management Managers person-to-person, day to day interactions influence how they feel about their work environment, the value they create for the organization and their pay and growth opportunities. Their communications and interactions with their team needs to be cognizant of their workforce’s communication preferences and other characteristics to make this relationship a positive one. 20| Page Adopt your Management Style – Find Opportunities to Connect/Convey & Motivate Emotional Intelligence – Blended Leadership 21| Page Know your Workforce… 22| Page Managing/Coaching Millennials 23| Page Offer plenty of help Create a collegial and team-oriented culture Rewards for innovating and taking appropriate risks (Praise can be more powerful than money) Checklists/guideposts/milestones—lots of feedback (Millennials mistake silence for disapproval) Provide regular “developmental coaching” (Positive, forward–looking, skill building) How to increase Satisfaction with Immediate Supervisor 24| Page Organization’s Image - Employee Value Proposition Communication of the things that make your organization a great place to work is essential. 25| Page Communications and HR Employees are ill informed… 41% of workers rely on word of mouth among friends for advice/info about benefits 16% of employees say they are not very informed about benefits offered at their company Only 25% of employees felt they received a lot of information about their compensation systems Only 46% were satisfied with the openness of their compensation programs/systems 26| Page Sibson’s Rewards of Work Study 27| Page Best Practice Example Employee Value Proposition At the Front Counter – Engaged and Committed Employees To identify McDonald’s EVP, they conducted an unprecedented effort to gather input from crew and managers. They received responses from nearly 10,000 restaurant employees from 55 countries about what they love most and least about working at McDonald’s. Identified key themes around ““People and Culture,” “Flexibility and Variety,” and “Development and Opportunity” Family & Friends – “I work in an enjoyable, energizing atmosphere where everyone feels part of the team.” Flexibility – “I have a challenging, varied job that has the flexibility to fit into my lifestyle.” Future – “I have an opportunity to grow and progress by learning personal and work skills that will last me a lifetime, whatever I choose to do.” 28| Page HR Communications 29| Page Do you believe your employees are paid fairly? Do you believe you are paid fairly? What information is shared within your entity regarding compensation? Salary Ranges Incentive Programs Managers also tend to share what it takes to – Expand an employees role – Improve performance – Obtain training 30| Page Employee Communications 31| Page 2012 AON Hewitt Study When it comes to Communication – one size definitely does not fit all Print Collateral – Direct Mail – Total Rewards Statements Face to Face Communications – Focus Groups – Town Hall Meetings – Benefit Fairs Electronic/Digital – – – – 32| Page Internet/Intranet Email – Text Messaging Videos Social Media 4 generations in the work force with different: • Thoughts and values • Perspectives • Ways of managing, communicating and problem solving Know your workforce/audience Where they are located; How long they’ve been employed; Their job role; Age and Gender, etc. 34 Total Rewards and EVP Statements 35| Page EVP Brochure 36| Page Employee/Total Rewards Portals “one-stop shop” for total rewards information Available Courses 37| Page Courses Completed Professional Development Print Collateral - Direct Mail Sent to new hires as part of a welcome packet from the Chief Human Resources Officer. 38| Page Electronic - Intranet and Internet Campbell's compensation philosophy supports our Success Model. The foundation of the model — “Winning in the Workplace” — recognizes that our people drive profitability and our competitive advantage. We understand that paying competitive wages is critical to attracting and retaining the talent we need to build a company that can produce extraordinary results and compete over the long term. Our compensation program is market-based and performance-driven: • • 39| Page Campbell conducts a comprehensive market analysis each year to ensure our compensation programs are competitive with the appropriate set of peer companies. Employee performance is evaluated as part of Campbell's annual Performance Management process. Consistent with the Campbell Leadership Model, employees are evaluated and rewarded based both on what they do (results they create) and how they do it (behaviors they demonstrate). www.campbellsoupcompany.com Engagement & Recognition We believe that our employees feel most valued when they are fully informed, understand the company's business goals and plans, and are invited to offer their feedback on a regular basis. Research shows that engaged employees are more productive and profitable as well as more customer-focused, safer, and more likely to stay with the company. At Campbell, we firmly believe that employee engagement is one of the most important indicators of our ability to drive performance improvement and win in the workplace. In fact, every employee who participates in our Performance Management process must include a specific objective around engagement. The Way We Work Building a safe, diverse, inclusive, engaged and socially responsible workplace that delivers business results with integrity While we are continually looking for ways to leverage Campbell’s world-class engagement to drive sustainable business results, we believe employees feel most valued when they are: • • • • Recognized and celebrated for their contributions Well-informed and aligned with how their work connects to the Company’s overall goals and plans Encouraged to bring their uniqueness to work each day Engaged in an ongoing dialogue that encourages the sharing and challenging of ideas 40| Page Measures how Campbell’s overall Grand Mean score compares relative to Gallup’s overall database of respondents Electronic – Video Post Cards Unique way to engage employees (and applicants) Distributed via email to employees’ inboxes Views can be tracked and measured Can be viewed on smartphones 41| Page Social Media Vehicle to share company information and get employees to talk, share information and collaborate. – Internal social media platforms allows employees to post presentations, ideas, etc. and receive instant feedback from other workers. – Examples • Experience Forum – connects new hires with other new hires to share experiences or answer questions. • PepsicoConn3ct – LinkedIn group for young professionals within Pepsi. 42| Page Targeted Communication Solution – Knowing your Audience Social Media & Gen Y 40% check their cell phone every 10 mins 45% check social media as part of their daily routine Don’t block facebook at work – 56% won’t work at your company if you ban it! 43| Page Formula for Communications Success Plan before you launch Define objectives, identify key stakeholders, and create a strategy and plan of action. Stick to your message Determine key messages at the beginning and communicate them consistently. Make sure Managers/Supervisors are onboard Don’t underestimate this group—they have influence over employees and can be advocates or barriers Rinse and Repeat Reinforce key messages multiple times and across a variety of media in a coordinated way . People are affected differently by different formats and messages. Measure the overall effectiveness of the initiative 44| Page In Closing… 45 46| Page What are High Performing Companies Doing Differently? Increased leadership capabilities at all levels of the company – Leaders are accessible, visible and listen/encourage employee feedback Inspire trust and respect throughout the organization Connect today's work, initiatives, and changes with where the business is heading Communications is core to the culture – They commit to open, honest, regular communication – Employees understand the “why” behind their jobs – what they’re expected to achieve and why it’s important to the greater good of the organization. Top performing firms cultivate engaging cultures 47| Page HR and Communications “Great Company” Organization • Culture • Mission/ Values • Leadership Compensation • Base • Variable/ Incentive “Great Rewards” 48| Page People • Talent • Social Networks Employee Value Proposition Benefits • Health & Welfare • Financial Security Career & Development • Training • Performance Management Work Environment • Challenge • Autonomy • Experiences “Great Job” Treat employees as valuable people with skills rather than as people with valuable skills People will support a ‘world’ they understand, support and help to create 49| Page 50| Page HUMAN CAPITAL PRACTICE Human capital’s impact on business results is a critical source of opportunity and risk. At Willis, we understand the human capital risk our clients face, and we work in partnership to deliver solutions that drive and support your organizational goals. BROKERAGE AND CONSULTING Program renewals and marketing Request for Proposal (RFP) processes Proposal analysis Carrier selection and implementation SUBJECT MATTER EXPERTISE Communication Health Outcomes HR Partner National Legal & Research Group (NLRG) Reporting & Analytics Contact your local office for more information on our Human Capital Practice 51| Page