Employee Engagement
Sample Results
2
Defining Employee Engagement
• Employee Engagement is a critical measure of
person-organization alignment
• Engaged employees share a common set of
attitudes and beliefs which, taken together,
reflect a vital aspect of organizational health
- Pride and Commitment
- Job Satisfaction
- Motivation
- Advocacy
3
Engagement Impact - Examples
Why is it better to have employees with
HIGH vs. LOW levels of engagement?
• An estimated 19% of the US workforce is disengaged,
costing the US economy upwards of $300 Billion in lost
productivity*
• Fortune's 100 Best Companies to Work For have had a
10.6% annual return since 1998, while companies listed
on the S&P 500 have had only a 5.7% return in that
period *
*Information from Izzo and Withers (2000)
4
Engagement Impact – Continued
Highly engaged companies are*:
•
•
•
29% higher in revenue
50% more likely to have above-average customer
loyalty
44% more likely to turn above-average profits
Highly engaged workgroups are**:
• 44% higher retention
• 56% higher in customer loyalty
• 50% more productive
• 33% more profitable
*Information from Izzo and Withers (2000)
**Information form The Right Group and Manpower (2002)
5
Importance of Engagement
• It is essential that every person understands and
commits to your business strategy—as stated in
your brand, vision, mission or values—for your
organization to be successful in the marketplace
• Employees must know specifically what they
can do on their individual jobs each and every
day to truly make a measurable difference in
bottom line results
• Engagement must be based on strong
diagnostics and executed with a focused,
creative strategy designed to prove the impact
on business results
6
Results
7
Survey Participation
•
500 Surveyed  475 Responded = 95% response rate
•
Margin of Error = +/- 1.1% @ 95% confidence
•
Surveys were administered on-line and processed by
Right Management
•
Rating Scale:
5
4
3
2
1
NA
Strongly
Agree
Agree
Neutral
Disagree
Strongly
Disagree
Not
Applicable
8
Sample Characteristics
n
%
VPs & Above
Team Leader/Director
Team Member
8
42
413
463
1.7%
9.1%
89.2%
100.0%
Claims Services
Account Services
Information Technology
Legal
Finance
Underwriting & Product Services
HR & Organizational Effectiveness
163
110
9.5%
40
36
20
12
421
9.5%
8.6%
4.8%
2.9%
100.0%
45
54
146
219
464
9.7%
11.6%
31.5%
47.2%
100.0%
380
39
35
454
83.7%
8.6%
7.7%
100.0%
Job Level
Division
40
38.7%
26.1%
Tenure
Less than 1 year
1 to up to 3 years
3 to up to 10 years
More than 10 years
Location
Phoenix home office
Tucson field office
Other field office
9
Interpretation Guidelines
% Favorable
60 or more
All Systems Go!
50-59
Warning
49 or less
Red Alert!
10
Theme Level Analysis
Favorable
Unfavorable
66
Culture
Work Environment
60
My Leader
60
Learning & Development
59
Reward & Recognition
50
Communication
50
Executive Leadership
49
0%
Neutral
25%
17
18
21
19
26
17
.85
8
.81
8
.92
11
21
.78
8
23
.82
8
.86
9
.91
8
22
19
26
24
17
34
50%
Reliability Items
75%
100%
11
Item Level Analysis: Culture (8)
Employees feel encouraged to own their work, support one another and suggest innovative
ideas; however, they don’t feel comfortable speaking up and expressing differences of
opinion is not encouraged.
Favorable
Item
Neutral
15. I am encouraged to take ownership of my
work.
Unfavorable
87
N
Mean
9 4 469
4.20
11. I am encouraged to share learnings and best
practices.
80
11 9 470
3.96
12. This organization takes good care of its
customers.
78
14 8 472
3.93
11 471
3.86
16
17 471
3.70
18
19
472
3.64
472
3.21
472
2.90
18. I have opportunities to suggest innovative
ideas at work.
14. Everyone is treated equally here regardless of
their race, ethnic origin, gender, age, sexual
orientation, etc.
72
67
63
17. Teamwork is strong in my team.
16. This organization encourages employees to
openly express differences of opinion.
13. It is safe to speak up here without fear of
retribution.
0%
17
45
35
25%
29
26
25
50%
39
75%
100%
12
Qualitative
Analyses
13
One Improvement (N= 379)
• Employees recommended improvements to their benefits (e.g.,
higher salaries, telecommuting opportunities, additional time off)
-
Overall compensation, either through salary increases or significantly
increased vacation time
-
More opportunities for telecommuting, as long as job duties are covered.
-
Wages paid more fairly on the job and responsibilities, instead of by the
broadband
-
TYPE goals - to change or remove this process. Even though it has been
addressed to let team members know if they are not participating, not all
team members participate, yet receive tip goal payments
• Employees would like to have development plans and see
improvements in the performance evaluation system
-
Simplified performance evaluation system, and a improved HRIS
-
Change how employees are reviewed. The 360 reviews are useless, and the
milestone settings are too unreachable which discourages more than it
encourages.
-
Hold ALL employees accountable for their work performances/attendance
14
What Not to Change (N= 206)
• Employees like the benefits they receive (e.g., medical,
retirement plans, vacation, etc.)
-
I very, very, very much appreciate the benefits package provided to us.
It is unheard of in the business community and puts my mind at ease.
-
No more additional costs associated with our health benefits.
-
Flex time or working from home.
• Employees appreciate the organizations investment in
employee development
-
The opportunity for education offered to all of us. This benefit is better
than any other company and this organization encourages everyone to
take advantage of this.
-
I would not want the education benefits to change, I love that this
organization supports our personal and professional growth.
-
The opportunities offered to move or learn about different aspects of the
company or outside the company.
15
Employee
Engagement
16
Defining Employee Engagement
• Employee Engagement is a critical measure of
person-organization alignment
• Engaged employees share a common set of
attitudes and beliefs which, taken together,
reflect a vital aspect of organizational health
- Pride
- Job Satisfaction
- Motivation
- Advocacy
17
Right’s Model of Employee Engagement
Employee Engagement
Business Outcomes
• Performance & Profitability
Motivation
• Sales & Employee Attraction
Advocacy
Satisfaction
• Customer Service
• Productivity
Pride
• Turnover
TM
18
Employee Engagement Level
100%
High
% Engaged
60%
50%
30%
Medium
48.5% Engaged
Low
0%
51.5%
Not Engaged
19
Employee Engagement Model
Right TM
Benchmark*
2005 Survey
- 14%
- 11%
- 1%
60%
81% products/services
74% employer
Pride
74%
Advocacy
92%
75%
- 12%
74%
Motivation
86%
- 14%
75%
Satisfaction
89%
- 11%
49%
Employee Engagement
60%
*Best-in-Class Companies
Reliability = .86
20
Key Outcomes
21
Key Outcome Measures
Favorable
Item
72. Taking everything
into account, this
organization is a great
place to work.
73. This organization
attracts the best people.
0%
Neutral
Unfavorable
75
32
17
45
25%
N
50%
24
75%
Mean
7 469
3.97
468
3.11
100%
22
Retention
Which statement best describes your
current plans?
% Agree
I am leaving this organization as soon as I can
2%
I plan on leaving in the next 6 months
6%
I plan on being here another year but I am not sure after that
11%
I plan on being here for the next 2 years
26%
I have no plans whatsoever to leave
55%
Total
100%
23
Driver Analyses
24
Model of Organization Performance
Drivers
Impact
Engagement
Impact Key Outcomes
Item 1
?
Motivation
Item 2
?
Pride
Advocacy
Satisfaction
?
Item 3
?
Outcomes
25
Key Driver Analysis  Engagement
Driver
REWARD & RECOGNITION
COMMUNICATION
MY LEADER
Impact
Outcome
.24
.17
.15
Employee
Engagement
*
2
R = 36%
CULTURE
.15
*Composite measure of Advocacy, Pride, Motivation, and Satisfaction.
26
Key Driver Analysis  Employee Attraction
Drivers
Engagement
Impact
Key Outcome
Reward & Recognition
Motivation
Communication
Pride
My Leader
Employer
Advocacy
.13
Employee
Attraction*
Satisfaction
2
Culture
R = 39%
44. This organization promotes employees who
deserve it. (Reward & Recognition, 25%)
.25
60. The Executive Team works well together.
(Executive Leaders, 28%)
.18
2. I feel well informed about what is going on.
(Communication, 45%)
.17
43. This organization rewards its employees
well compared to its competitors. (R&R, 35%)
.15
27
Segmentation
Analysis
28
Engagement – Great Place to Work Matrix
Great Place to Work
High
Benchwarmers
15%
Stars
55%
Disconnected
Free Agents
15%
15%
Low
High
Engaged
29
Demographic Segmentation
Stars
Bench
warmers
Free-Agents Saboteurs
Level
VPs & Above (8)
Team Leader/Director (42)
Team Member (413)
100%
76%
44%
0%
10%
30%
0%
4%
1%
0%
10%
25%
49%
37%
48%
49%
29%
28%
31%
26%
0%
3%
2%
1%
22%
32%
19%
24%
75%
58%
58%
48%
47%
46%
35%
17%
27%
25%
34%
22%
23%
40%
0%
0%
0%
1%
6%
1%
0%
8%
15%
18%
17%
25%
30%
25%
Tenure
Less than 1 year
1-3 years
3-10 years
More than 10 years
Division
HR
IT
Legal
Claims Services
Finance
Account Services
Underwriting
30
Key Differences
Analyses
31
Demographic Differences
Key Variables
My Leader
Culture
Work Environment
Executive Leadership
Recognition & Rewards
Communications
Learning & Development
Engagement
Demographic Variables
Level








Retention
Great Place to Work
Employee Attraction

Location

Division










Tenure


32
Demographic Differences - Level
The ratio of engaged to disengaged employees is
best among Team Leaders and VPs & Above
engaged
100%
disengaged
100%
Ratio
81%
80%
60%
.8 to 1
4 to 1
8 to 1
55%
45%
49%51%
40%
19%
20%
0%
0%
Team Member
N=413
Director
N=42
VPs & Above
N=8
Overall
33
Demographic Differences - Level
Team Members are significantly less positive about this organization as
a Great Place to Work compared to VPs & Above.
Great Place to Work
4.8
5.0
4.0
4.3
3.9
3.0
2.0
1.0
0.0
Team Member
N=413
Director
N=42
VPs & Above
N=8
34
Summary &
Implications
35
Summary and Implications
•
Strengths:



•
Within team effectiveness (role clarity, support, etc.)
55% Stars overall
Team Leaders and VPs are highly engaged
Opportunity Areas:




Cross functional effectiveness
Communication and perception of leaders
25% Benchwarmers overall
Team Member engagement scores are moderate
•
Level of Engagement: Medium, 49%
•
Drivers of Engagement:




Reward & Recognition
Communication
My Leader
Culture
36
Next Steps
37
Next Steps
Executive
•
EMPLOYEE
OPINION
SURVEY DATA
Leadership
Presentation of
Results
Managers
Survey Data
•
Tactical
Action Planning
Sessions
Employees
•
Strategic
Employee Survey
Communications
Feedback
38
Analysis of Written Comments
80%
60%
52%
46%
48%
50%
44%
44%
Percentage
43%
Question
Communication
Culture
Work Environment
Learning & Development
Leader
Executive Leadership
One Improvement
Don’t Change
Reward & Recognition