Testing the Organizational Landscape: How do organizational characteristics influence the engagement model? WORK ENVIRONMENT SURVEY 2010 January 2011 CONTACT INFORMATION This paper was prepared by Emilie Sia. If you have any questions about the information in this report, please email Emilie.Sia@gov.bc.ca or phone 250-952-0358. © BC Stats 2010 EXECUTIVE SUMMARY EXECUTIVE SUMMARY The BC Public Service Engagement Model encapsulates the different work environment concepts and functions that influence employee engagement. Three engagement characteristics, namely BC Public Service Commitment, Job Satisfaction and Organization Satisfaction, serve as the outcomes of the model and make up the overall engagement score. Influencing these characteristics through a complex web of interconnections are 12 model drivers which represent the key aspects in the work environment that are in turn based on employees‟ responses to the Work Environment Survey (WES) questions1. While much is known about how these model drivers impact employee engagement, understanding on how certain characteristics and features of organizations may play a role in influencing these model drivers and engagement characteristics is currently limited. With the recent decrease in the BC Public Service overall engagement score from 68 points out of 100 in WES 2009 to 64 points in WES 2010, investigating the possible factors in the work environment that could have caused this decline is of primary concern. Much of the decrease on the WES 2010 overall engagement score was suspected to be due to the workforce adjustments which occurred prior to the WES 2010 launch. Could organizational level changes such as workforce adjustments have that much impact on employee engagement? Are there other organizational level characteristics and intrinsic features within the organizations that are creating a barrier in the achievement of higher employee engagement within the BC Public Service organization? With these questions in mind, this study explores the possible relationships that may be present between engagement characteristics and model drivers and certain characteristics of the organizations within the BC Public Service. Specifically, the organizational characteristics investigated are: size of the organization, proportion of leaders in the organization, employee dispersion by geographic work location, degree of reporting hierarchy and workforce adjustments. The results outlined below suggest that at the organizational level, these organizational characteristics have moderate to strong relationships with some of the engagement characteristics and model drivers. Employees who belong to large organizations (≥ 2,000 employees) tend to have more negative perceptions on survey questions related to Respectful Environment, Staffing Practices, Teamwork, Recognition and Physical Environment & Tools drivers as compared to employees who belong to smaller organizations (< 2,000 employees). Eleven model drivers showed moderate to strong correlations with organization size. Among these, the top five drivers with the strongest relationships were Respectful Environment, Staffing Practices, Teamwork, Recognition and Physical Environment & Tools drivers. As the size of the organizations increased, the average scores for these drivers tended to decrease. Large organizations (≥ 1 Refer to Appendix A for further details on the BC Public Service Engagement Model. TESTING THE ORGANIZATIONAL LANDSCAPE Page iii EXECUTIVE SUMMARY 2,000 employees) showed significantly lower average scores on these drivers as compared to small organizations (< 2,000 employees). As an example, smaller organizations such as Tourism, Culture & Arts or Healthy Living & Sport, with employee counts of less than 200, had average scores of 77 points and 82 points respectively on the Respectful Environment driver. Larger organizations on the other hand, such as the Ministry of Children & Family Development and Public Safety & Solicitor General with populations of more than 2,500 employees scored 69 points and 66 points respectively on the same driver. This means that employees belonging to larger organizations are less likely to agree that a healthy atmosphere exists in their work units, that their work units value diversity and that their work units are free from discrimination and harassment as compared to employees who belong to small organizations. Similar trends were also observed for the other ten drivers that showed strong relationships with organization size. These results suggest that there may be some factors present within large organizations that are influencing employee perceptions of their work environment differently than in small organizations. One possible contributing factor that could be looked at is on the differences in the nature of work that may be present between small and large organizations. Further study is needed to validate this as well as explore other factors that may help explain the observed trends. It is also interesting to note that while in general, large organizations tend to have lower scores on the eleven drivers of engagement, substantial variability in average scores within small organizations was also observed. Not all small organizations tend to have higher driver scores than larger organizations. Consideration on specific attributes unique to some small organizations also needs to be taken into account. Employees who are farther away in terms of reporting hierarchy from the Head of the BC Public Service tend to have more negative perceptions on all engagement characteristics and model drivers than employees who are closer to the Head of the BC Public Service. A reporting level variable was created for each of the WES 2010 respondents based on their supervisory chain as contained in the CHIPS database2. For example, reporting level 1 was assigned to the Head of the BC Public Service, reporting level 2 was assigned to all employees reporting to the Head of the BC Public Service, reporting level 3 then refers to employees who report to the reporting level 2 employees and so on. The higher the reporting level number, the lower the employees are in the reporting hierarchy chain and the farther they are from the Head of the BC Public Service. Employees belonging to higher reporting levels have more layers between them and the Head of the BC Public Service. A clear and distinct relationship was observed between employee engagement and model driver scores and the employees‟ reporting level. The farther employees are from the Head of the BC Public Service (as represented by higher numbers of reporting levels), the less engaged they tend to be and the lower their 2 BC Government Corporate Human Resources Information and Payroll System. TESTING THE ORGANIZATIONAL LANDSCAPE Page iv EXECUTIVE SUMMARY average scores are for all of the engagement model drivers. For example, employees belonging to the lowest reporting level (e.g. level 10) showed the lowest average scores in all model drivers as compared to employees belonging to the higher reporting levels (e.g. level 3). An exception to this is on the Stress & Workload driver where the lowest average score is found on reporting level eight instead of reporting level ten. The rate of decrease in average scores is not the same between each reporting level. Focusing on the Organization Satisfaction, Vision, Mission & Goals and Executive-level Management drivers, the largest declines in average scores were found to occur at the extreme ends of the reporting levels hierarchy (levels two to four & levels nine to ten). In contrast, the average scores for these two drivers and engagement characteristic declined only somewhat between reporting levels four to nine. Put in another way, there is a steep decline in average scores for these engagement characteristic and model drivers from levels two to four, which plateaus between levels four to nine and becomes steep again between reporting levels nine to ten. These inflection points may represent a change in the organizational level work environment, such as functional breaks wherein respondents at the division level (reporting level four) may break out into different branches (reporting level five) that perform separate functions and which could result in a different set of dynamics in the work environment. The inflection points could also represent a difference in interaction between employees and their executives, where most employees in levels four to nine may be located near or in the same location as their executives and could visually see or interact with them, while those in levels two to four may not have the same set-up. Further investigation within specific organizations needs to be done to further pinpoint what these inflection points represent. A second reporting level variable was created which identifies the maximum number of reporting levels within the organizations in the BC public Service. Comparison was made between organizations with different maximum reporting levels. For example, the driver scores for organizations with as many as 6 reporting levels were compared with the driver scores for organizations with up to 5 reporting levels or those with 7 reporting levels. Analysis results show that ten model drivers have moderate to strong negative relationships with the number of reporting levels present in organizations. Organizations which have more reporting levels tend to have lower average scores on these ten drivers than organizations with fewer reporting levels. Among these ten drivers, the Pay & Benefits driver showed the highest negative correlation with the number of reporting levels. Organizations with ten reporting levels were found to show significantly lower Pay & Benefits scores compared to organizations which have five to eight reporting levels. This indicates that employees belonging to organizations whose reporting structure goes down to level ten tend to be less positive on being fairly paid for the work they do and having their benefits meet their (and their family‟s) needs well in comparison to employees who belong to organizations which have five to eight reporting levels. The findings from the two analysis (i.e., employee level and organizational level analysis) involving reporting levels highlight the negative relationship that the level of reporting hierarchy has with employee engagement and its model drivers. TESTING THE ORGANIZATIONAL LANDSCAPE Page v EXECUTIVE SUMMARY The more layers in terms of reporting levels there are within organizations, the lower the average engagement and driver scores tend to be. It is possible that the distribution of the employees within each of the reporting levels could also have an effect on these results. Analysis between the two variables, namely organization size and reporting levels, showed that they are highly correlated with each other, indicating that as organization size increases, more reporting levels are also present within the organization. A key challenge in fully understanding the effects of both organizational characteristics, organization size and reporting level hierarchy, on employee engagement is the distribution of employees within organizations. Broken out by hierarchy levels, the majority of the employees would fall into reporting levels six and seven. Therefore, the strong relationships found between the reporting level variable and some of the drivers such as Pay & Benefits might also be a reflection of the larger proportion of employees in these hierarchy levels compared to levels one to five. Further research is needed to determine whether the observed relationships hold true when a potential effect of employee distribution across hierarchy levels is removed through additional analyses. Employees who belong to more geographically dispersed organizations tend to have more negative perceptions on five model drivers, namely Respectful Environment, Staffing Practices, Recognition, Professional Development and Stress & Workload than employees who belong to centralized organizations. The average scores for these five drivers tend to decrease as the number of regions in which employees within organizations are located, increase. The most significant average score differences on these five model drivers were found between organizations where employees are centralized in one region as compared to organizations where employees are dispersed across four regions. The first two drivers having the highest negative correlation with the degree of geographic dispersion are the Respectful Environment and Staffing Practices drivers. Employees who belong to organizations which are dispersed across four regions tend to have more negative perceptions on survey questions that indicate that a healthy atmosphere exists in their work unit, that their work unit values diversity and is free from discrimination. They also tend to have less positive views on survey questions which indicate that in their work unit, the selection of a person for a position is based on merit and that the process of selecting a person for a position is fair. Employees3 in organizations with more than 50% of their population classified in leadership positions (Applied leadership, Business leadership and Strategic leadership & Executives positions) showed more positive perceptions on the Professional Development, Pay & Benefits and Physical Environment & Tools drivers as compared to employees in organizations with less than 15% classified in leadership positions. 3 Employees in this section refer to respondents who are not in leadership positions. TESTING THE ORGANIZATIONAL LANDSCAPE Page vi EXECUTIVE SUMMARY Employees‟ perceptions of their work environment are positively correlated with the proportion of leaders within their organizations. Among the fifteen model drivers and engagement characteristics investigated, twelve were found to have moderate to strong correlation with the proportion of leaders in the organization. Organizations with higher proportions of leaders tend to have more positive scores on these drivers. The most evident difference in drivers scores was observed between organizations having small proportions of leaders (<15%) and organizations with more than fifty percent leaders in their organization. Of the twelve drivers that showed moderate to strong correlations with the proportion of leaders‟ variable, the strongest relationships were found for the Professional Development, Pay & Benefits and Physical Environment & Tools drivers. Employees who belong to organizations with more leaders tend to have more positive perceptions on survey questions that indicate that the quality of training and development they receive is satisfactory and that they have adequate opportunities to develop their skills. Similarly, these employees also tend to agree that they are fairly paid for the work they do and that their benefits meet their (and their family‟s) needs. In addition, they also indicate more satisfaction with their physical environment and agree that they have the tools needed to do their jobs as compared to employees who belong to organizations with lesser proportions of leaders in their organizations. Organizations that had workforce adjustments showed larger decreases in scores between 2009 and 2010 on the model drivers that make up the Development Path (e.g., Vision, Mission & Goals, Executive-level Management, Professional Development drivers and Organization Satisfaction) compared to organizations that did not have workforce adjustments. Between 2009 and 2010, the largest decreases (>10 points) for organizations that had workforce adjustments (WFA) occurred in the drivers that make up the Development Path, namely Organization Satisfaction, Vision, Mission & Goals, Professional Development and Executive-level Management drivers. While organizations that did not have WFA also saw a drop in these drivers, the decrease was not as large as for organizations that did go through WFA. For example, for organizations that did not have WFA, the average score for the Vision, Mission & Goals driver decreased by 5 points between 2009 and 2010. In comparison, the score for organizations with WFA decreased by 16 points on the same driver. These results suggest that for an organizational level change such as workforce adjustments, one of the key strategies in maintaining or improving employee engagement involves focusing on the drivers that make up the Development Path. The path suggests that while timely communication of the vision, mission & goals and future directions of the organization is key, it is also important to make the connection between organizational level changes and the more personal and individual aspect of the organization through a maintained focus on employee development. TESTING THE ORGANIZATIONAL LANDSCAPE Page vii EXECUTIVE SUMMARY Employees belonging to organizations with workforce adjustments resulting in a more than 5% decrease in population tend to have larger decreases in scores between 2009 and 2010 on the BC Public Service Commitment, Organization Satisfaction, Vision, Mission & Goals and Staffing Practices drivers as compared to employees in organizations with less than 5% population decrease due to workforce adjustments. The proportion of workforce adjustments is more strongly correlated with the difference between the organizations‟ WES 2009 and WES 2010 driver scores than the WES 2010 (single year) driver scores alone. Eleven out of fifteen model drivers and engagement characteristics were found to have moderate to strong correlations between the differences in WES 2009 and WES 2010 driver scores and the proportion of workforce adjustments. The highest correlations were found in the Commitment to the BC Public Service, Organization Satisfaction, Vision, Mission & Goals and Staffing Practices drivers. Employees belonging to organizations with higher percentage of decrease in employee population due to workforce adjustments tend to show greater declines in average scores on these engagement characteristics and model drivers between 2009 and 2010. For example, the results on the BC Public Service Commitment characteristic showed that most organizations which decreased by more than 5% of their population due to workforce adjustments showed approximately six to ten points decrease between 2009 and 2010 as compared to the zero to four points decrease observed in organizations with less than 5% population decrease. In addition, among the six organizational characteristics investigated in this report, the proportion of workforce adjustments was found to be the best predictor of the decrease in average scores between 2009 and 2010 for the three characteristics of engagement, namely BC Public Service Commitment, Organizations Satisfaction and Job Satisfaction. These results indicate that workforce adjustments have a significant negative impact on employee engagement. The most substantial decreases in the eleven engagement characteristics and driver scores between 2009 and 2010 tend to occur when the proportion of employees impacted is greater than five percent of the total population. Overall, the results found in this report provide useful insights from the organizational development perspective. Approaches to improvements can be tailored to specific organizations while keeping organizational characteristics in mind. For example, the knowledge that organizational size is negatively correlated with Respectful Environment, Staffing Practices and Recognition could be used to implement initiatives that focus on these drivers in large organizations. Similarly, different approaches in Staffing Practices may be explored when working with centralized organizations as compared to organizations where employees are dispersed across four regions. The opportunities for benchmarking can also be widened by looking at some best practices for specific drivers between organizations with similar organizational characteristics. TESTING THE ORGANIZATIONAL LANDSCAPE Page viii EXECUTIVE SUMMARY A summary of the correlation results for each organizational characteristic investigated in this study is found on page x. Limitation of the Study The analysis conducted in this study explored each organizational characteristic separately and does not take into account the possible interconnections between them or between the organizational characteristics and the engagement model drivers themselves. Because of the similarities in trends found in some organizational characteristics as well as the correlations found between variables (e.g., organization size and reporting level variables), it is likely that these organizational characteristics do not operate separately but may be associated with the engagement model drivers through complex interconnected relationships. It is therefore recommended that these possible relationships be further explored and organizational variables simultaneously tested within the existing BC Public Service Engagement Model using structural equation modelling (SEM). TESTING THE ORGANIZATIONAL LANDSCAPE Page ix EXECUTIVE SUMMARY Summary of Results Proportion of Leaders Organization Size -.45 -.48 -.75 -.72 -.71 -.69 -.68 -.66 -.66 -.59 -.58 -.52 -.51 -1.0 -.5 Commitment Commitment Job Satisfaction Stress & Workload Organization Satisfaction Respectful Environment Staffing Practices Teamwork Recognition Physical Environment & Tools Supervisory-level Mgmt Professional Development Pay & Benefits Executive-level Mgmt Empowerment Vision, Mission & Goals -.19 -.23 Reporting Levels in Organization .57 Job Satisfaction Stress & Workload .67 Organization Satisfaction .59 Respectful Environment .59 Staffing Practices .51 Teamwork .51 Recognition .79 Supervisory-level Mgmt .32 Professional Development .79 Pay & Benefits .79 Executive-level Mgmt .71 Empowerment .44 Vision, Mission & Goals .74 .0 .0 Correlation Coefficient -.64 -.58 -.69 -.67 -.69 -.57 -.59 -.75 -.52 -.56 -.48 .65 Physical Environment & Tools .5 1.0 Correlation Coefficient Dispersion by Region Commitment Job Satisfaction Stress & Workload Organization Satisfaction Respectful Environment Staffing Practices Teamwork Recognition Physical Environment & Tools Supervisory-level Mgmt Professional Development Pay & Benefits Executive-level Mgmt Empowerment Vision, Mission & Goals -.08 -.12 -.52 -.33 -.64 -.63 -.48 -.56 Legend: Statistically significant at p ≤ .01 Not statistically significant at p ≤ .01 -1.0 -.32 -.46 -.55 -.35 -.30 -.40 -.37 -.5 Correlation Coefficient .0 Commitment Job Satisfaction Stress & Workload Organization Satisfaction Respectful Environment Staffing Practices Teamwork Recognition Physical Environment & Tools Supervisory-level Mgmt Professional Development Pay & Benefits Executive-level Mgmt Empowerment Vision, Mission & Goals -.32 -.42 -.42 -.47 .28 -1.0 -.5 Correlation Coefficient .0 Proportion of WFA -.87 -.59 -.71 -.81 -.50 -.79 -.16 -.53 -.44 -.55 -.71 -.43 -.71 -.58 -.80 Commitment Difference (09-10) Job Satisfaction Difference (09-10) Stress & Workload Difference (09-10) Organization Satisfaction Difference (09-10) Respectful Environment Difference (09-10) Staffing Practices Difference (09-10) Teamwork Difference (09-10) Recognition Difference (09-10) Physical Environment & Tools Difference (09-10) Supervisory-level Management Difference (09-10) Professional Development Difference (09-10) Pay & Benefits Difference (09-10) Executive-level Management Difference (09-10) Empowerment Difference (09-10) Vision, Mission & Goals Difference (09-10) -1.0 -.5 .0 Correlation Coefficient Page x TABLE OF CONTENTS TABLE OF CONTENTS 1. INTRODUCTION ............................................................................................................... 1 1.1 Relevance of Organizational Characteristics in the Employees‟ Perceptions of their Work Environment ................................................................................... 1 1.2 Key Research Questions ................................................................................. 2 2. KEY FINDINGS ................................................................................................................. 4 2.1 Does the size of the organization influence employee perceptions on engagement and its model drivers? ................................................................. 4 2.2 Do employee engagement and perceptions of their work environment vary with respect to the number of reporting levels present in their organizations? ......... 8 2.3 Does the degree of employee dispersion/centralization by work location in organizations have a relationship with employee engagement and perceptions of the work environment?............................................................................... 14 2.4 Does the number of leaders in the organization matter? ................................ 18 2.5 How did the recent workforce adjustments impact employee engagement and perceptions of the work environment? ........................................................... 22 3. CONCLUSIONS AND RECOMMENDATIONS ................................................................ 29 APPENDIX A: MORE ON THE EMPLOYEE ENGAGEMENT MODEL .................................... 34 APPENDIX B: ADDITIONAL RESULTS................................................................................... 36 APPENDIX C: DRIVER DESCRIPTIONS ................................................................................. 41 TESTING THE ORGANIZATIONAL LANDSCAPE Page xi INTRODUCTION 1. Introduction The BC Public Service employee engagement model established the importance of the 12 model drivers in influencing the three characteristics that make up the overall employee engagement (i.e., BC Public Service Commitment, Job Satisfaction and Organization Satisfaction). The model drivers themselves were based on employee responses to specific survey questions contained in the Work Environment Survey (WES) questionnaire, which gave indications on what the respondents‟ perceptions were with regards to specific areas in their work environment. This study aims to explore the possible role of the structural aspects of the organization in influencing employee responses to the survey questions that make up the engagement model. Specifically, this study investigates whether employee perceptions of their work environment or their responses in the WES questions are in some way linked to certain characteristics of the organizations that they belong to. The organizational characteristics investigated include organization size, number of reporting levels, geographic dispersion by work location, number of leaders within the organization and specific organizational changes that impact the work environment, such as workforce adjustments (WFA). 1.1 Relevance of Organizational Characteristics in the Employees’ Perceptions of their Work Environment A literature review conducted by Helfrich (2009) cited studies which showed that organizational characteristics which operate at the macro level (e.g., level of bureaucracy, type of leadership, and organizational culture) and other organizational characteristics operating at a unit or team-level (e.g., climate within the team, responsiveness of supervisor, support from other workers and inclusion or involvement in client planning) were highly influential in determining the outcome of the services delivered4. Yoo, Brooks, & Patti (2007) presented a conceptual framework for examining organizational constructs as predictors of service effectiveness. Their framework contained four domains, three of which were based on human relations theory (e.g., worker responses to work conditions, such as job satisfaction and organizational commitment, and worker attributes) while one domain was based on contingency theory (e.g., centralization and routinization)5. What is interesting about their framework is that it combines the role of organizational structure as well as contingency factors with factors involving worker characteristics, work conditions and worker perceptions of their work environment and establishes their relationship to service effectiveness. The organization structure part of their framework was based on the results from studies conducted by Crook (20016); Arches (19917); Weinman, Helfrich, W. (2009). Does the Organization Matter? An Examination of the Link Between Organizational Management Practices and Client Outcomes. Victoria, BC: Federation of Child & Family Services of BC Research to Practice Network. 5 Yoo, J., Brooks, D.,& Patti, R. (2007). Organization Constructs as Predictors of Effectiveness in Child Welfare Interventions. Child Welfare, 86(1), 53-78. 66 Crook, W.P. (2001). Trickle-down bureaucracy: Does the organization affect client responses to program? Administration in Social Work, 26, 37-59. 7 Arches, J. (1991). Social structure, burnout, and job satisfaction, Social Work, 35, 202-206. 4 TESTING THE ORGANIZATIONAL LANDSCAPE Page 1 INTRODUCTION Grimes, Hsi, Justice & Schoolar (19798) and Schmid (1992a9), which showed that structural characteristics such as centralization, role specialization and formalization were found to be related to efficiency in service delivery and worker responses. While their framework is mainly geared towards child welfare organizations and related fields, its application to organizations which provide client services in general is apparent. Relationships between characteristics of the organization and worker responses have also been posed by several studies. For example, Gupta (2008) indicates that employee job satisfaction decreases as the size of the organization increases. He posits that as the amount of task specialization increases with size, more specialization and focused work design increases peer competition and reduces career growth opportunities10. In the BC Public Service, while the link between employee engagement and citizen‟s service satisfaction has been well established, the possible connection between employee engagement and the characteristics of the organizations is still to be explored. 1.2 Key Research Questions This study examines the possible relationships that may exist between organizational characteristics and employees‟ perceptions of their work environment as represented by the three engagement characteristics and 12 model drivers within the BC Public Service Engagement Model. More details on the model can be found in Appendix A. Organizational data from the CHIPS11 database were combined with the WES 2010 results to enable the analysis of the engagement model drivers with respect to certain organizational characteristics. The selection of organizational characteristics was determined based on what were conceptually possible predictors of employee responses according to related literature as well as the availability of the information in CHIPS. Table 1 summarizes the different organizational characteristics tested in the analysis and the corresponding CHIPS variables that were used to calculate them. These six organizational characteristics were investigated in the context of their possible relationships with the three engagement characteristics and the 12 model drivers. While most of the correlation results in the succeeding sections show the correlation coefficients for all the engagement characteristics and drivers, only those drivers and characteristics which had the highest correlations were discussed in further detail to illustrate the general trends. Weinman, M.L., Grimes, R.M., Hsi, B.P., Justice, B., & Schoolar, J.C. (1979). Organizational structure and effectiveness in general hospital psychiatry departments. Administration in Mental Health, 7, 32-42. 9 Schmid, H. (1992a). Relationships between decentralized authority and structural properties in human service organizations: Implications for service effectiveness. Administration in Social Work, 16(1), 25-39. 10 Gupta, A. (2008). Organization’s Size and Span of Control. Practical Management. Retrieved December 15, 2010, from http://www.practicalmanagement.com/pdf/Organization-Development/Organization-s-size-and-span-of-control.pdf?format=phocapdf 11 BC Government Corporate Human Resources Information and Payroll System 8 TESTING THE ORGANIZATIONAL LANDSCAPE Page 2 INTRODUCTION Table 1. Organizational Characteristics Investigated in this Study and their Source Variables in the CHIPS database Organizational Characteristics Source Variable in CHIPS 1. Size of Organization Count of in-scope employees per Ministry 2. Number of Reporting levels Employee Supervisor column 3. Geographic dispersion by Region Work City FSA12 4. Geographic dispersion by Postal Code 5. Proportion of leaders in the organization Job classification 6. Proportion of WFA impact Identified by Ministry13 The five key research questions which guided the analysis in this report were: 1. Does the size of the organization influence employee perceptions on engagement and its model drivers? 2. Do employee engagement and perceptions of the work environment vary with respect to the number of reporting levels present in organizations? 3. Does the degree of employee dispersion/centralization by work location in organizations have a relationship with employee engagement and perceptions of the work environment? 4. Does the number of leaders14 in the organization matter? 5. How did the recent (2010) workforce adjustments impact employee engagement and perceptions of the work environment? Forward sorting area (FSA) refers to the first three characters in the postal code. WFA information was not contained in CHIPS and was obtained separately from the BC Public Service Agency 14 Employees within the Applied leadership, Business leadership and Strategic leadership & Executives job classifications 12 13 TESTING THE ORGANIZATIONAL LANDSCAPE Page 3 KEY FINDINGS 2. Key Findings 2.1 Does the size of the organization influence perceptions on engagement and its model drivers? employee Organization size is generally determined by the number of employees within the organizations. This section investigates possible connections between the size of the organizations within the BC Public Service and the engagement characteristics and model drivers. For WES 2010, there were 28 organizations in the BC Public Service that were considered as in-scope for the survey, totalling 25,436 employees. To create the organization size variable, each of the 28 organizations is assigned an organization size value which is equal to the total employee count within each organization as of March 2, 2010, when the WES 2010 population frame was finalized. The size of each organization used for this analysis can be found in Table 11 (Appendix B). Only 25 of the 28 organizations were included in all succeeding analyses, as organizations whose in scope populations were ≤ 50 employees were excluded15 (i.e., Environmental Assessment Office, Office of the Premier and Olympic Games Secretariat). The organization size variable was then correlated16 with the engagement characteristics as well as the model driver average scores for each of the 25 organizations17. Table 2 shows the resulting correlation coefficients between organization size and the engagement drivers. Table 2. Correlation coefficients for Organizational Size and Engagement Model Drivers and Characteristics Ranked According to Strength Engagement and Model Drivers Respectful Environment Staffing Practices Teamwork Recognition Physical Environment & Tools Supervisory-level Management Professional Development Pay & Benefits Executive-level Management Empowerment Vision, Mission & Goals Organization Satisfaction Stress & Workload Job Satisfaction Commitment Organization Size Correlation -0.75 -0.72 -0.71 -0.69 -0.68 -0.66 -0.66 -0.59 -0.58 -0.52 -0.51 -0.48 -0.45 -0.23 -0.19 Very Strong Relationship with Organization size Weak or No Relationship with Organization size * Blue highlighted cells indicate significant correlations at p ≤ 0.01 level. Organizations with less than fifty in scope employees are excluded in the analysis to maintain confidentiality of individual results. Further break down into sub-categories would lead to very small group counts. 16 Correlation indicates the presence, direction and strength of the relationship between organization size and the model drivers. Correlation coefficients range from -1 to 1 where values nearer to 1 or -1 indicate moderate to strong relationships and values nearer to zero indicates weak or no relationship. 17 Assumption was made that there was no bias in response rates. 15 TESTING THE ORGANIZATIONAL LANDSCAPE Page 4 KEY FINDINGS Employees who belong to large organizations (≥ 2,000 employees) tend to have more negative perceptions on survey questions related to the Respectful Environment, Staffing Practices, Teamwork, Recognition and Physical Environment & Tools drivers than employees who belong to smaller organizations (< 2,000 employees). The results in Table 2 show that eleven out of fifteen model drivers and characteristics have significant negative relationships with organization size. As the size of the organization increases, the average scores for these eleven drivers tend to decrease. The top five drivers with the strongest relationship with the size of the organization were Respectful Environment, Staffing Practices, Teamwork, Recognition and Physical Environment & Tools. Interestingly, the three characteristics of engagement, namely, BC Public Service Commitment, Job Satisfaction and Organization Satisfaction, did not have any significant correlation with organization size. Focusing on the driver with the strongest relationship with organization size as an example, Figure 1 shows the plot of organization size as represented by the count of employees within the organizations and each organization‟s WES 2010 average score for Respectful Environment. Figure 1. Larger Organizations tend to have lower Respectful Environment average scores as compared to Smaller Organizations TESTING THE ORGANIZATIONAL LANDSCAPE Page 5 KEY FINDINGS The trend shows that as the size of the population within the organizations increase, the average scores for the Respectful Environment driver decrease. Large organizations with employee populations equal or greater than 2,000, tend to have Respectful Environment average scores which are ≤ 71 points, while small organizations with population counts of less than 2,000, tend to have Respectful Environment driver average scores ≥ 71 points. As an example, smaller organizations such as Tourism, Culture & Arts and Healthy Living & Sport, whose employee populations counts were less than 200, had average Respectful Environment scores of 77 points and 82 points respectively. Larger organizations on the other hand, such as Children & Family Development and Public Safety & Solicitor General, whose populations were more than 2,500 employees, have Respectful Environment average scores of 69 points and 66 points respectively. Based on the survey questions that compose the Respectful Environment driver, this indicates that in comparison with employees who belong to smaller organizations, employees belonging to larger organizations are less likely to agree that a healthy atmosphere exists in their work units and that their work units value diversity and are free from discrimination and harassment. Some deviations from the general trend were observed. A few smaller organizations were found to have similar or lower Respectful Environment average scores than the large organizations. Within the large organizations, one organization with a population of approximately 2,500 showed a lower Respectful Environment score (66 points) as compared to an organization with greater than 4,000 employees (69 points). However, when all small organizations (20 organizations) and all large organizations (5 organizations) were grouped and the average scores for the Respectful Environment driver between the two groups were compared, the small organizations showed statistically significant higher average scores than large organizations18 (Table 14 in Appendix B). In addition, while some small organizations were found to have low Respectful Environment scores, there were no large organizations which had average scores greater than 71 points. Similar results were found in the other drivers which showed significant correlations with organization size. For example, the results for Staffing Practices (Figure 2) also showed that the average scores decrease as organization size increase. Specifically, the Staffing Practices average scores for small organizations ranged from 54 to 77 points while for larger organizations, the Staffing Practices average scores ranged from 50 to 56 points. Employees in most of the small organizations tend to have more positive perceptions on survey questions which indicate that “in their work units, the selection of a person for a position is based on merit” and “the process of selecting a person for a position is fair” as compared to employees who belong to large organizations. 18 Significance was determined at p value <0.01. TESTING THE ORGANIZATIONAL LANDSCAPE Page 6 KEY FINDINGS Figure 2. Average Scores for Staffing Practices decreased as Organization Size Increased It is likely that factors associated with organization size may also play are role in influencing this trend. One possible factor could be the differences in the nature of work or type of jobs within small or large organizations. For example, large organizations may be composed of jobs (e.g. enforcement corrections or social work) which pose certain challenges on having a respectful work environment as compared to the type of jobs that are prevalent in small organizations. Further investigation is needed to pinpoint these factors and their relationship with organization size. TESTING THE ORGANIZATIONAL LANDSCAPE Page 7 KEY FINDINGS 2.2 Do employee engagement and perceptions of the work environment vary with respect to the number of reporting levels present in organizations? Communication is one of the key elements present in some drivers in the engagement model. The Vision, Mission & Goals, Supervisory-level Management and Executive-level Management drivers are composed of survey questions around communication. These drivers in turn strongly influence Organization Satisfaction, which for WES 2010 had the lowest mean score (60 points) as compared to the two other engagement characteristics, namely Job Satisfaction (67 points) and BC Public Service Commitment (67 points). Conceptually, one organizational characteristic that could potentially influence the responses to survey questions that involve communication at the organizational level is the degree of reporting hierarchy present within organizations. The more reporting levels that are present in an organization, the larger the gap is between employees and the top executives. It is hypothesized that as one goes further down the reporting levels in the organizations, a decrease in some of the model driver average scores is likely to occur, specifically on those drivers where communication is one of the key components. This section tests this hypothesis and looks at how the number of reporting levels present in organizations could be linked to employee engagement and employee perceptions of their work environment. Two types of analyses were conducted: comparison of model driver scores between different employee reporting levels19 in the overall BC Public Service and comparison of driver scores between organizations with different highest reporting level values. In the first analysis, the reporting level information for each of the WES 2010 respondents is identified and respondents with the same reporting level value within the overall BC Public Service are grouped. Comparison of average scores between these groups of different reporting levels is then conducted20. The process of identifying reporting level values for each respondent is illustrated in Figure 3, where the Deputy Minister (DM)/Head of the BC Public Service was designated as Level 1, employees who directly report to the Level 1 position according to the data in CHIPS were then identified as Level 2, employees who directly report to Level 2 employees were designated as Level 3, and so on. The larger the reporting level value, the farther away that level is from the DM/Head of the BC Public Service and the lower it is in the organization‟s reporting hierarchy chain. Each employee is only counted once and belongs to a single reporting level value. The term reporting levels as used in this report refer to the hierarchical groupings within the organizations that were based on the management/supervisory chain. The variable was created using the employee supervisors’ data from CHIPS where a reporting level hierarchy at the respondent level was then mapped out starting from the top level of the BC Public Service organization. 20 Reporting levels 1, 11, 12 and 13 were excluded in the analysis due to small sample count. 19 TESTING THE ORGANIZATIONAL LANDSCAPE Page 8 KEY FINDINGS Figure 3. Reporting Level Designations within the BC Public Service Organization DM / Head of the BC Public Service Level 1 DM DM ADM ADM ADM ADM DM ADM Etc. Level 2 Level 3 Level 13 Mapping out the reporting levels for the WES 2010 respondents (N = 21,421) showed that there are thirteen reporting levels in the overall BC Public Service. The count of respondents within each reporting level is shown in Table 3. For example, there are 30 respondents belonging to the second reporting level which make up .1% of the BC Public Service respondents. The BC Public Service respondent population was found to be normally distributed across levels with 52% of the respondents clustered within levels six and seven21. Table 3. Distribution of WES 2010 Respondents across the Different Reporting Levels within the BC Public Service Organization Level Number 1 2 3 4 5 6 7 8 9 10 11 12 13 Respondents Included in the Analysis Respondents Excluded in the Analysis Count of Respondents * 30 198 890 2650 4615 6579 3815 896 73 * * * 19748 1673 Percent of Respondents * 0.1 1 4 12 22 31 18 4 0.3 * * * 92 8 * Level 1, 11, 12 and 13 respondents were excluded from the above table due to small sample count. There were 1,673 respondents who were excluded in Table 3. These respondents either did not have supervisor names identified in CHIPS as of March 2, 2010 or were part of a chain where the supervisor at the higher level did not have a supervisor name identified in CHIPS. These blank supervisor entries were mainly due to supervisors who have exited out of the BC Public Service or moved to another organization with no replacement identified in the database at the time the data was pulled. 21 TESTING THE ORGANIZATIONAL LANDSCAPE Page 9 KEY FINDINGS Respondents’ reporting levels comparison of engagement and model driver scores The results from the first analysis showed that there was a distinct trend present at the overall BC Public Service level when the average scores for the engagement characteristics and model drivers were plotted by the respondent reporting level variable. Employees who are farther away in terms of reporting hierarchy from the Head of the BC Public Service tend to have more negative perceptions on all engagement characteristics and model drivers as compared to employees who are closer to the Head of the BC Public Service. The average scores for employee engagement and its drivers decreased as the reporting level increased (Table 12 in Appendix B). Employees who were farther away from the DM/Head of the BC Public Service tend to have lower average scores in all model drivers including overall engagement, as compared to those who were nearer to the top of the reporting hierarchy chain. For example, employees at level nine had an average score of 52 points on the Recognition driver while employees at level 4 had an average score of 74 points in the same driver. A slight deviation from the trend was found on the Stress and Workload driver, where the decrease plateaus between levels seven to nine and begins to slightly increase in level ten. This may suggest that when it comes to having workload and work-related stress that is manageable, respondents in levels seven, eight and nine felt the highest pinch as compared to the other levels. Comparison of average score differences between adjacent reporting levels further show that the largest statistically significant decreases in mean scores between two adjacent levels occur at levels three to four and levels nine to ten22 (Refer to cells marked in blue in Table 13, Appendix B23). In light of these results, limiting the organization to be equal to or less than nine levels may be an option for consideration. Further investigation may also be needed to understand why larger gaps in employee perceptions on these drivers are occurring between these adjacent reporting levels as compared to the other adjacent reporting levels. The largest declines in scores across reporting levels for Organization Satisfaction, Vision, Mission & Goals and Executive-level Management drivers occur at the outer boundaries of the BC Public Service reporting levels. Focusing on the three drivers in which communication is a key component (namely Organization Satisfaction, Vision, Mission & Goals and Executive-level Management drivers), the results showed that the highest average score declines occurred between levels two to four and levels nine to ten, as can be observed Comparison of mean scores was done using one way analysis of variance (ANOVA). Although the differences in value between levels two and three were also large, these were not found to be statistically significant due to higher standard errors associated with smaller sample size present at these levels. 22 23 TESTING THE ORGANIZATIONAL LANDSCAPE Page 10 KEY FINDINGS from the slope of the lines in Figure 4. The average score declines between levels four to nine weren‟t as steep in comparison. Specifically, the average scores for Organization Satisfaction, Vision, Mission & Goals and Executive-level Management decreased by approximately 11, 12 and 14 average points respectively per level increase between reporting levels two to four. Similarly, from level nine to ten, the slope decreased by 10, 13 and 9 average points in Organizational Satisfaction, Vision, Mission & Goals and Executive-Level Management scores respectively. However, between reporting levels four to nine, the decreases in average scores per reporting level increase weren‟t as large, at approximately 3 to 4 average points decrease for the three engagement characteristic and model drivers. Figure 4. Largest decreases in Scores for Organization Satisfaction, Vision, Mission & Goals and Executive-level Management Occur at the Outer Reporting Levels 100 Organization Satisfaction 2010 90 Vision, Mission & Goals 2010 Driver Mean Score 80 Executive Level 2010 70 60 50 40 30 20 10 0 2 3 4 5 6 Reporting Level 7 8 9 10 These results suggest that there may be differences in the work environment between the top reporting levels (levels two to four) as compared to that found in the lower reporting levels (levels four to nine) that are associated with the steep decline of scores between these levels. The inflection points may represent a change in the organizational level work environment, such as functional breaks wherein respondents at the division level (reporting level four) may break out into different branches (reporting level five) that perform separate functions and which could result in a different set of dynamics in the work environment. The inflection points could also represent a difference in interaction between employees and their executives, where most employees in levels four to nine may be located near or in the same location as their executives and could visually see or interact with them, while those in levels two to four may not have the same set-up. Further investigation needs to be done to further pinpoint what these inflection points represent. TESTING THE ORGANIZATIONAL LANDSCAPE Page 11 KEY FINDINGS Organizational reporting level comparison of engagement and model driver scores In the second analysis, each organization within the BC Public Service is assigned the reporting level value equal to the highest reporting level of the respondents within each organization. Organizations with the same number of highest reporting levels are then grouped and comparison of driver scores between these organizational groups is conducted. The highest reporting level values for each of the organizations within the BC Public Service can be found in Table 11 (Appendix B). For example, the Ministry of Education goes down to eight reporting levels, therefore this organization was assigned a value of 8. The Ministry of Education is then grouped with other organizations which also have eight reporting levels and compared with other groups of organizations with different maximum reporting levels. The results from the second analysis showed that there is a negative relationship between the number of reporting levels present in the organizations and the average engagement and model driver scores. Organizations which contain more reporting levels tend to show lower average scores on the engagement characteristics and model drivers highlighted in Table 4 below. Table 4. Correlation Results for the Number of Reporting Levels in Organizations and the Engagement Model Drivers showing the strongest correlation occurring in the Pay & Benefits driver Engagement and Model Drivers Pay & Benefits Physical Environment & Tools Teamwork Recognition Respectful Environment Professional Development Staffing Practices Supervisory-level Management Empowerment Executive-level Management Vision, Mission & Goals Organization Satisfaction Job Satisfaction Stress & Workload Commitment Correlation for Organizational Reporting Level -0.75 -0.69 -0.69 -0.67 -0.64 -0.59 -0.58 -0.57 -0.56 -0.52 -0.48 -0.47 -0.42 -0.42 -0.32 Very Strong Relationship with Number of Reporting Levels within Organizations Weak or No Relationship with Number of Reporting Levels within Organizations * Blue highlighted cells indicate significant correlations at p ≤ 0.01 level. Among the fifteen engagement characteristics and model drivers, the Pay & Benefits driver showed the strongest negative relationship with the number of reporting levels present within organizations. While ten engagement model drivers showed moderate to strong correlations with the organizational reporting level variable, the Pay & Benefits driver was found to have the highest negative correlation. The Pay & Benefits driver is composed of two survey questions: “I am fairly paid for the work I do” and “My TESTING THE ORGANIZATIONAL LANDSCAPE Page 12 KEY FINDINGS benefits meet my (and my family’s) needs well.” This result indicates that respondents belonging to organizations with higher numbers of reporting levels, on the average, tend to have more negative perceptions that they are fairly paid for the work they do and that their benefits meet their/their family‟s needs. Figure 5 plots out the average scores for the Pay & Benefits driver and the different groups of organizations within the BC Public Service based on the number of reporting levels present within these organizations. Organizations whose reporting hierarchy reached up to ten levels showed significantly lower Pay & Benefits average scores as compared to organizations which only had a maximum number of five to eight reporting levels24. However, while the relationship between the number of reporting levels and the Pay & Benefits driver is strong, it is also likely that other organizational characteristics and factors are also playing a role. For example, large organizations would likely also tend to have higher numbers of reporting levels and may also contain higher proportions of specialized occupations that may have issues with Pay & Benefits. Analysis on interconnections between these organizational characteristics is currently not covered within the scope of this report. Mean Score for Pay & Benefits 2010 Figure 5. Organizations with More Reporting Levels tend to have lower Pay & Benefits Average Scores 85 75 75 65 59 60 59 55 55 50 45 35 25 15 5 6 7 8 9 10 Number of Reporting Levels within Organizations The other nine model drivers and engagement characteristics that showed moderate to strong relationships with the number of reporting levels within the organizations also showed similar results as that found on the Pay & Benefits driver. The average scores on these model drivers tend to decrease when the number of reporting levels within organizations increased. 24 Comparison of means was done using one way analysis of variance (ANOVA). Significance was determined at p≤ 0.01. TESTING THE ORGANIZATIONAL LANDSCAPE Page 13 KEY FINDINGS 2.3 Does the degree of employee dispersion/centralization by work location in organizations have a relationship with employee engagement and perceptions of the work environment? In this section, the possible relationship between employee engagement and the degree to which organizations are dispersed across various work locations or are centralized within one location is explored. An organization where the majority of its employees are clustered within one work location may tend to present a different work environment as compared to an organization where employees are spread across various geographic work locations. This difference in work environment may result in differences in employee perceptions. Two variables were used to represent the degree of dispersion or centralization of organizations in the analysis: by region and by count of FSA25. The region variable identified the organizations by the number of regions (from one to four) in which the respondents within an organization were located (i.e., Southern Interior, Northern British Columbia, Vancouver Island and South Coast). The count of FSA variable on the other hand, contains the total count of FSAs in which the employees within an organization were located. The FSA variable was taken from the respondents‟ postal code data, while the region variable was derived from the respondents‟ work city information in CHIPS. Table 11 in Appendix B provides further details on these two variables by organization. As the degree of dispersion by region within organizations increases, the average scores for the Respectful Environment, Staffing Practices, Recognition, Professional Development and Stress & Workload drivers tend to decrease. Correlation results between the engagement characteristics and model drivers and the number of regions within organizations showed that there is a negative and moderate relationship between the number of regions that the employee population within each organization are dispersed and five of the engagement model drivers (Table 5). Organizations which are more regionally dispersed tended to have lower average scores in the Respectful Environment, Staffing Practices, Recognition, Professional Development and Stress & Workload drivers. Among these five model drivers, the top two drivers showing the highest significant correlations with the number of regions within organizations were Respectful Environment and Staffing Practices. 25 Forward sorting area (FSA) refers to the first three characters in the postal code. TESTING THE ORGANIZATIONAL LANDSCAPE Page 14 KEY FINDINGS Table 5. Correlation Results for Dispersion by Region Variable showing Moderate Relationship with Five Model Drivers Engagement and Model Drivers Respectful Environment Staffing Practices Recognition Professional Development Stress & Workload Teamwork Supervisory-level Management Empowerment Vision, Mission & Goals Pay & Benefits Organization Satisfaction Physical Environment & Tools Executive-level Management Job Satisfaction Commitment Dispersion by Region -0.64 -0.63 -0.56 -0.55 -0.52 -0.48 -0.46 -0.40 -0.37 -0.35 -0.33 -0.32 -0.30 -0.12 -0.08 Moderate to Strong Relationship with Number of Regions Weak or No Relationship with Number of Regions * Blue highlighted cells indicate significant correlations at p ≤ 0.01 level. Employees who belong to more geographically dispersed organizations tend to have more negative perceptions on the Respectful Environment and Staffing Practices drivers as compared to employees who belong to centralized organizations. Focusing on the top two drivers which showed the highest correlation with the dispersion by region variable as examples, Figure 6 presents the average scores for the Respectful Environment and Staffing Practices drivers by number of regions within organizations. The graph shows the decreasing trend in average scores as the number of regions in which employees within organizations were dispersed increased. The average score differences between adjacent region variables (e.g., one region in comparison with two regions) were found to be statistically insignificant26. The difference in average scores however was substantial and significant when the scores for organizations centralized within one region were compared against the scores for organizations which are dispersed in four regions. Organizations centralized in one region showed significantly higher average scores for both the Respectful Environment (82 points versus 74 points) and Staffing Practices drivers (72 points versus 59 points) than organizations dispersed in four regions27. 26 27 Comparison of mean scores was done using one way analysis of variance (ANOVA). Significance determined at p ≤ 0.05. TESTING THE ORGANIZATIONAL LANDSCAPE Page 15 KEY FINDINGS Figure 6. Respectful Environment and Staffing Practices driver scores decreased as the number of regions in which employees are located within organizations increased 85 82 80 Mean Scores 2010 76 72 75 74 69 65 65 59 55 45 Respectful Environment 35 Staffing Practices 25 15 1 2 3 4 Number of Regions Within Organizations Although the result may suggest that regional dispersion in itself has some relationship to the average scores for these model drivers, it is also possible that the region variable may be representing other factors in the organization, such as nature of work or functions present in organizations that are more dispersed rather than just the geographical work location itself. As an example, while the Public Safety and Solicitor General (PSSG) organization may tend to be more dispersed (4 regions), it also has correctional facilities which may impact the work environment differently than other organizations which are composed mostly of offices. This difference in work environments may influence the driver scores more as compared to regional dispersion per se. A similar trend on the engagement model driver scores was found when the FSA variable was used. The degree of dispersion by count of FSAs within organizations showed negative correlations with eight out of fifteen engagement model drivers and characteristics (Table 6). Organizations with employees dispersed in more FSA work locations tended to have lower scores in the Respectful Environment, Staffing Practices, Physical Environment & Tools, Teamwork, Pay & Benefits, Recognition, Professional Development and Supervisory-level Management drivers. While both the Respectful Environment and Staffing Practices drivers were still the top two drivers with the highest correlations, there were some differences observed in the strength of relationships found for other drivers. For example, the Physical Environment driver did not have any correlation with organization dispersion by region but showed a moderate correlation when the count of FSAs was employed. TESTING THE ORGANIZATIONAL LANDSCAPE Page 16 KEY FINDINGS Table 6. Correlation Results for Dispersion by Count of FSA and Engagement and its Model Drivers Engagement and Model Drivers Respectful Environment Staffing Practices Physical Environment & Tools Teamwork Pay & Benefits Recognition Professional Development Supervisory-level Management Stress & Workload Executive-level Management Empowerment Vision, Mission & Goals Organization Satisfaction Commitment Job Satisfaction Dispersion by FSA -0.62 -0.60 -0.57 -0.57 -0.55 -0.55 -0.53 -0.53 -0.42 -0.38 -0.36 -0.32 -0.31 -0.07 -0.05 Moderate to Strong Relationship with Number of FSA Weak or No Relationship with Number of FSA * Blue highlighted cells indicate significance at p ≤ 0.01 level. As a sample comparison, Figure 7 shows the general decreasing trend in the Respectful Environment driver average scores as the count of FSAs in organizations increased. There were a number of overlaps observed where organizations dispersed in fewer FSAs showed lower Respectful Environment average scores than those which had higher FSA counts. Due to this variability, the count of regions discussed earlier in this section provides more distinct results and better represents the organizational level relationships between the employee engagement model and geographic dispersion by work location than the count of FSA. Figure 7. Respectful Environment Mean Scores by Count of FSAs within Organizations showing decreasing trend with increased FSA dispersion TESTING THE ORGANIZATIONAL LANDSCAPE Page 17 KEY FINDINGS 2.4 Does the Number of Leaders in the Organization Matter? The impact of leaders on employee engagement and its drivers has been well established in the BC Public Service engagement model, where both the Executive-level Management and Supervisor-level Management drivers serve as the foundation blocks strongly influencing the rest of the drivers. The higher the organization‟s scores on the Executive-level Management and Supervisory-level Management drivers, the higher the scores would be on the three engagement characteristics. This section explores the quantitative aspect of leadership by looking at the possible influence that the proportion or number of leaders present within the organizations might have on the organization‟s engagement and model driver scores. The proportion of leaders for each of the organizations28 within the BC Public Service was calculated by taking the percentage of employees who were in the Applied Leadership, Business Leadership and Strategic Leadership & Executives job classifications with respect to the total population of employees within the organizations. Each organization was then assigned a value equivalent to the percentage of leaders within the organization (Table 11 in Appendix B). Organizations with similar proportions of leaders were then grouped together. All analyses were done using average scores which excluded scores based on survey responses from the leaders themselves to minimize bias. Only data from respondents who were not in leadership positions were included and compose the organization‟s average scores. The analysis led to some revealing trends. Employees29 who belong to organizations with more leaders tend to have more positive perceptions on twelve engagement model drivers and characteristics. Among the twelve engagement model drivers and characteristics which showed moderate to strong positive correlations with the proportion of leaders in organizations, the Professional Development, Pay & Benefits and Physical Environment & Tools drivers were found to have the strongest relationship with the number of leaders in the organizations. Focusing on these three drivers, this indicates that in general, employees belonging to organizations which have more leaders within their organizations tend to agree that their organizations support their work related learning and development, that they have adequate opportunities to develop their skills and that the quality of training and development they have received is satisfactory. Similarly, these employees also have more positive perceptions on questions related to fair pay and on their benefits meeting their (and their family‟s) needs well. They also are more satisfied with their physical work environment and indicate stronger agreement that they have the tools they need to do their jobs well as compared to employees who belong to organizations with lower proportions of leaders. Excluding organizations with population ≤50 employees. Within this section (section 2.4), the term “employees” refer to respondents who are in non-leadership positions. Responses coming from those in leadership positions were excluded from the analysis. 28 29 TESTING THE ORGANIZATIONAL LANDSCAPE Page 18 KEY FINDINGS The results for the other nine drivers and characteristics also show the same trend. As the number of leaders within the organizations increase, the average scores for these drivers tend to increase. Table 7. The Proportion of Leaders in Organizations showed strong correlations with Professional Development, Pay & Benefits and Physical Environment & Tools Drivers Engagement and Model Drivers (Leaders Scores Excluded) Professional Development Pay & Benefits Physical Environment & Tools Vision, Mission & Goals Executive-level Management Stress & Workload Recognition Respectful Environment Organization Satisfaction Commitment Teamwork Staffing Practices Empowerment Supervisory-level Management Job Satisfaction Proportion of Leaders 0.79 0.79 0.79 0.74 0.71 0.67 0.65 0.59 0.59 0.57 0.51 0.51 0.44 0.32 0.28 Very Strong Relationship with Proportion of Leaders within Organizations Weak or No Relationship with Proportion of Leaders within Organizations * Blue highlighted cells indicate significance at p ≤ 0.01 level. To further illustrate this relationship, the next sections discuss two of the drivers which have strong correlations with the proportion of leaders in the organizations namely Professional Development and Pay & Benefits drivers. An increasing trend in the Professional Development average scores was observed as the proportion of leaders within the organizations increased (Figure 8). Focusing on the extreme ends of the data, the organization with 95% of its employee population belonging to leadership positions showed the highest Professional Development average score of 86 points out of 100. The organization with the lowest proportion of leaders on the other hand (7.5%), showed a Professional Development score of 46 points. Similarly, the other two organizations with greater than 50% leaders also showed higher Professional Development scores than organizations with less than 20% proportion of leaders in their organizations. However, some deviations from this trend were also observed. For example, the Public Service Agency organization, which had 60% of its population belonging to leadership positions, showed a much lower average score on the Professional Development driver than would have been expected. Unlike the other organizations with greater than 50% leaders, employees in the Public Service Agency showed a slightly more negative perception on their organization‟s support in their work related learning and development, on the quality of training and development they receive and on the adequacy of opportunities to develop their skills. TESTING THE ORGANIZATIONAL LANDSCAPE Page 19 KEY FINDINGS Figure 8. As the proportion of leaders within organizations increased, the Professional Development average scores also tended to increase PSA Plotting the Pay & Benefits average scores against the proportion of leaders in the organizations also showed the positive correlation between the proportion of leaders and the Pay & benefits average scores. In addition, distinct differences between organizations belonging to the extreme ends of the proportion of leaders‟ values (refer to the encircled data points in Figure 9) were also observed. Similar to the result on the Professional Development driver, employees who belong to organizations with greater than 50% leaders tend to have more positive perceptions on being fairly paid for the work they do and on their benefits meeting their (and their family‟s) needs well as compared to organizations with less than 15% leaders. While these results could suggest that having a greater than 15% proportion of leaders in the organizations may be ideal, it is also possible that there are other distinct differences in work environment factors that could be associated with the number of leaders in the organizations, which could impact how employees perceive Professional Development, Pay & Benefits and the other ten drivers in the model. For example, the type of jobs in an organization like the Public Affairs Bureau, which has a high proportion of leaders, may tend to provide more opportunities for work related learning as compared to the type of jobs that the Children & Family Development organization may have, which also happens to have a lower proportion of leaders. Further investigation and isolation is needed to determine what factors related to having more leaders in organizations could have a positive influence on the twelve model drivers. TESTING THE ORGANIZATIONAL LANDSCAPE Page 20 KEY FINDINGS Figure 9. Distinct difference in Pay & Benefits average scores between organizations with greater than 50% leaders and organizations with less than 15% leaders. It is interesting to note that there were three drivers which did not have any correlation with the proportion of leaders in the organizations. These were Job Satisfaction, Empowerment and Supervisory-level Management drivers. Regardless of the number of leaders present within an organization, there appears to be no connection with the degree of satisfaction respondents have with their jobs or with their agreement on survey questions indicating that their supervisors consult them on decisions that affect them and informed them of things they need to know. The proportion of leaders also has no significant correlations with the level of agreement that respondents have on questions pertaining to Empowerment namely “having opportunities to provide input into decisions that affect my work”, “having the freedom to make decisions necessary to do my job well” and “having the opportunities I need to implement new ideas.” TESTING THE ORGANIZATIONAL LANDSCAPE Page 21 KEY FINDINGS 2.5 How did the recent workforce adjustments impact employee engagement and perceptions of the work environment? An earlier study by BC Stats30 indicated that changes in the workplace, such as the change in staff resulting in net gain or net loss of talent/experience tend to influence employee engagement migrations from the engaged state towards the lower states of engagement (e.g., disengaged, unhappily dedicated etc.) Between 2009 and 2010, along with limited resources and tight budgets, several organizations in the BC Public Service substantially reduced their size in terms of number of employees as part of workforce adjustments (WFA)., This section explores the impact of workforce adjustments as an organizational change on employee engagement and its drivers. The proportions of WFA were calculated by taking the ratio of the number of employees impacted over the organizations‟ total population. Table 11 (Appendix B) shows the list of organizations and the proportion of staff change due to workforce adjustments between 2009 and 2010 for each of these organizations in the proportion of WFA column. As an example, the Citizen‟s Services organization has a value of .03 in the proportion of WFA column as it had decreased by 3% of its population between 2009 and 2010. Other organizations which were not impacted by WFA were assigned a value of zero. Correlation analysis between the WES 2010 engagement model driver scores and the proportion of workforce adjustments showed that the two engagement model driver and characteristic which have significant negative relationships with the proportion of WFA were Organization Satisfaction and Vision, Mission & Goals (Table 8). Table 8. Correlation Values for the Proportion of WFA and the WES 2010 31 Engagement Model Driver Scores WES 2010 Engagement and Model Drivers Organization Satisfaction Vision, Mission & Goals Executive-level Management Professional Development Empowerment Stress & Workload Job Satisfaction Staffing Practices Supervisory-level Management Recognition Commitment Respectful Environment Physical Environment & Tools Teamwork Pay & Benefits Proportion of WFA -0.52 -0.51 -0.48 -0.43 -0.42 -0.42 -0.38 -0.38 -0.36 -0.32 -0.28 -0.27 -0.24 -0.22 -0.03 Moderate to Strong Relationship with Proportion of WFA Weak or No Relationship with Proportion of WFA BC Stats. (2010). Exploring Year-to-Year Migration Patterns. Retrieved December 20, 2010, from http://www.bcstats.gov.bc.ca/data/ssa/reports/WES/2009/analytics09_12.pdf 31 Blue highlighted cells indicate significant correlations at p ≤ 0.01 level. 30 TESTING THE ORGANIZATIONAL LANDSCAPE Page 22 KEY FINDINGS This result indicates that in organizations with a larger proportion of workforce adjustments, employees belonging to these organizations tend to be less satisfied with their organizations and are less positive that their organization‟s vision, mission & goals were communicated well and that their organizations are taking steps to ensure the long term-success of their vision, mission & goals. These findings suggest that for organizations that are impacted by workforce adjustments, timely communication on the organizations‟ vision, mission & goals and directions for the future is one of the key factors in maintaining employees engaged within their organizations. There were no significant correlations found between the proportion of WFA impact and the rest of the thirteen model drivers and engagement characteristics. This suggests that the proportion or degree of WFA has no significant relationship with the average organizational scores on these thirteen drivers and characteristics within the single year (WES 2010) results. The impact of workforce adjustments however becomes highly significant when looking at the organizations‟ average score changes between the years before and after workforce adjustments (2009 and 2010). Substantial decreases in model driver average scores between 2009 and 2010 were observed for organizations impacted by workforce adjustments as compared to organizations that were not impacted. Comparison between the WES 2009 and WES 2010 average scores for organizations impacted by WFA and those that were not impacted by WFA (Table 9) showed substantial decreases in average scores on most drivers and engagement characteristics for organizations which had work force adjustments. For example, while the overall BC Public Service engagement score fell 4 points between 2009 and 2010, the score decreased by 9 points for organizations impacted by WFA, but dropped by only 1 point for organizations that were not impacted. Vision, Mission & Goals, Executive-level Management, Professional Development drivers and Organization Satisfaction have the largest decrease between 2009 and 2010 among all model drivers for organizations which had workforce adjustments. Comparison of average driver scores between 2009 and 2010 showed that the largest decreases (>10 points) for organizations that experienced WFA occurred in the Organization Satisfaction, Vision, Mission & Goals, Professional Development and Executive-level Management drivers (Table 9). While organizations that did not experience WFA also saw decreases in these drivers, they were not as large. For example, while the largest drop for organizations without WFA also occurred in the Vision, Mission & Goals driver, the decrease was only 5 points while organizations with WFA decreased by 16 points between 2009 and 2010. TESTING THE ORGANIZATIONAL LANDSCAPE Page 23 KEY FINDINGS Table 9. Engagement and Model Drivers (2009 /2010) by WFA Organization Groups 32 2009 ENGAGEMENT BUILDING BLOCKS FOUNDATION 32 2010 Year-over-year Change BC PS WFA NonWFA BC PS WFA NonWFA WFA NonWFA Engagement 68 71 66 64 62 65 -3 -4 -9 -1 Public Service Commitment 70 73 68 67 65 67 -2 -3 -8 -1 Job Satisfaction 69 70 68 67 65 67 -2 -2 -5 -1 Organization Satisfaction 64 68 62 60 56 60 -4 -4 -12 -2 Empowerment 67 71 65 65 64 65 -1 -2 -7 0 Stress & Workload 59 62 58 57 57 57 0 -2 -5 -1 Vision, Mission & Goals 63 66 62 56 50 57 -7 -7 -16 -5 Teamwork 75 76 75 75 75 75 0 0 -1 0 Physical Environment & Tools 67 70 66 66 67 66 1 -1 -3 0 Recognition 61 64 59 60 60 59 1 -1 -4 0 Professional Development 62 68 59 55 54 55 -1 -7 -14 -4 Pay & Benefits 55 59 54 54 57 52 5 -1 -2 -2 Staffing Practices 60 63 57 56 56 56 0 -4 -7 -1 Respectful Environment 73 75 71 72 72 71 1 -1 -3 0 Executive-level Management 59 61 58 53 46 54 -8 -6 -15 -4 Supervisory-level Management 68 71 67 68 68 68 0 0 -3 1 Source: BC Stats. (2010). Special Focus Ministry Analysis: A deeper look at the results of the 2010 Work Environment Survey, 15. TESTING THE ORGANIZATIONAL LANDSCAPE Page 24 BC PS WFA NonWFA KEY FINDINGS These specific engagement characteristic and model drivers (namely Organization Satisfaction, Vision, Mission & Goals, Professional Development and Executive-level Management) make up one of the top ten pathways in the BC Public Service Engagement Model, which is the Development Path (refer to Appendix B for further details on the Development Path). The large decrease observed on these specific drivers shows that in order to counteract the effects of an organizational level change such as workforce adjustments, one of the key areas of focus for maintaining or improving employee engagement is the Development Path. The path suggests that while timely communication of the vision, mission & goals and future directions is key, it also points out the importance of making the connection between these organizational level changes and the more personal and individual aspects of the organization, which is that of employee development. It is likely that employees may tend to have more negative perceptions on their organizations‟ “support on their work related learning and development”, the “quality of training and development they received” and “having adequate opportunities to develop their skills” partly due to the resource and budget constraints that often come with workforce adjustments. Correlation analysis was also done between the differences in average scores in WES 2009 and WES 2010 and the proportion of WFA in the BC Public Service organizations. The results validate the observation that the proportion of WFA is related more to the change in scores between years (2009 and 2010) than to the average scores within a single year alone (2010). Eleven engagement characteristics and model drivers were found to have moderate to strong significant correlations between the difference in average scores (2009 and 2010) and the proportion of WFA (Table 10). The strongest negative relationships between these differences were found in the Commitment to the BC Public Service, Organization Satisfaction, Vision, Mission & Goals and Staffing Practices drivers and characteristics. Table 10. Correlation Results for the Proportion of WFA and the Average Score Differences in the Engagement Model Drivers between 2009 & 2010 showed the Strongest Relationships found in the BC Public Service Commitment, Organization Satisfaction, Vision, Mission & Goals and Staffing Practices drivers Engagement and Model Drivers Difference between WES 2009 and WES 2010 Proportion of WFA Commitment -0.87 Organization Satisfaction -0.81 Vision, Mission & Goals -0.80 Staffing Practices -0.79 Executive-level Management -0.71 Stress & Workload -0.71 Professional Development -0.71 Job Satisfaction -0.59 Empowerment -0.58 Supervisory-level Management -0.55 TESTING THE ORGANIZATIONAL LANDSCAPE Page 25 KEY FINDINGS Engagement and Model Drivers Difference between WES 2009 and WES 2010 Proportion of WFA Recognition -0.53 Respectful Environment -0.50 Physical Environment & Tools -0.44 Pay & Benefits -0.43 Teamwork -0.16 * Blue highlighted cells indicate significant correlations at p ≤ 0.01 level. Focusing on the four drivers with the highest correlations with proportion of WFA, a more specific trend was also observed. Employees belonging to organizations with a more than 5% decrease in population due to workforce adjustments showed larger decreases in the BC Public Service Commitment, Organization Satisfaction, Vision, Mission & Goals and Staffing Practices average scores between 2009 and 2010 as compared to employees in organizations with a less than 5% population decrease due to workforce adjustments. Taking the BC Public Service Commitment engagement characteristic as an example, Figure 10 plots the difference in average scores between 2009 and 2010 for the BC Public Service Commitment characteristic in the y-axis and the proportion of WFA for each organization in the x-axis. The graph reveals a distinct trend: organizations that decreased in size by more than 5% of their population due to workforce adjustments also showed larger decreases in the BC Public Service Commitment driver (from 6 point to 10 points decrease) between 2009 and 2010. Similar results were also observed for the other three drivers namely Organization Satisfaction, Vision, Mission & Goals and Staffing Practices. A slight deviation on this trend occurs for the Ministry of Advance Education & Market Development. The organization lost 8% of its population due to workforce adjustment, but only showed a decrease of 3 average points on the BC Public Service Commitment driver between 2009 and 2010. This is exception is due to a factor that is specific only to this organization. While it lost employees through workforce adjustment, it also gained employees through re-structuring. Thus in net total, the Ministry of Advance Education & Market Development had gained employees by 5% of its population in 2010, which may explain why the decrease in scores for this organization was not as large as would have been expected. Details on the proportion of WFA values for the other organizations can be found in Table 11 (Appendix B). TESTING THE ORGANIZATIONAL LANDSCAPE Page 26 KEY FINDINGS Figure 10. A plot of the Differences in the BC Public Service Commitment Scores between 2009 & 2010 and the Proportion of WFA by Organization showing larger average score declines for organizations with ≥ 5% decrease in employee population due to WFA ALMD Linear regression analysis was conducted to further determine which among the five organizational characteristics (e.g. organization size, number of reporting levels, dispersion by geographic locations- region & FSA, proportion of leaders, proportion of WFA) best predicts the difference in average scores for the three characteristics that make up overall engagement between 2009 and 2010. Among the six organizational characteristics tested, the proportion of workforce adjustments was found to best predict the decrease in average scores between 2009 and 2010 for the three characteristics of engagement namely BC Public Service Commitment, Organization Satisfaction and Job Satisfaction. The results shown in Table 15 (Appendix B) indicate that among the six organizational characteristics, the proportion of workforce adjustments best explains the differences observed in the decrease in BC Public Service Commitment, Organization Satisfaction, and Job Satisfaction scores between organizations from 2009 to 2010. As an example, for the BC Public Service Commitment characteristic, 75% of the differences between organizations in terms of the BC Public Service Commitment score changes between 2009 and TESTING THE ORGANIZATIONAL LANDSCAPE Page 27 KEY FINDINGS 2010 could be explained by the employee population decrease due to workforce adjustments. This result indicates that an organizational change such as workforce adjustments has a very significant impact on employee engagement. Employees in organizations with larger proportions of workforce adjustments tend to have larger decreases in the three engagement characteristics scores compared to the previous year than employees in organizations with no workforce adjustments. It is also important to note that not all decreases in the model driver scores are associated with workforce adjustment. The Teamwork, Pay & Benefits, and Physical Environment & Tools drivers for example, have no significant relationship with the proportion of workforce adjustment (Table 10). Declines in the average scores on these drivers between 2009 and 2010 are not likely to be related to workforce adjustments. TESTING THE ORGANIZATIONAL LANDSCAPE Page 28 CONCLUSIONS AND RECOMMENDATIONS 3. Conclusions and Recommendations The results show that organizational characteristics such as the size of the organization, dispersion by geographic work location, degree of reporting level hierarchy, proportion of leaders in the organization and organizational change such as workforce adjustments have significant relationships with some of the engagement characteristics and model drivers for WES 2010. The relationships could be categorized broadly as positive or negative. Some of the key findings and recommendations are outlined below. Organizational characteristics such as the size of the organization, dispersion by geographic work location, number of reporting levels and workforce adjustments have a negative relationship with some of the engagement characteristics and model drivers. As the degree or proportion of these organizational characteristics increases, the average scores for the engagement drivers in which these characteristics have moderate to strong correlations with, tend to decrease. For example, organizations with larger decreases in employee population due to workforce adjustments also tend to have lower average scores on the drivers that make up the Development Path (e.g. Organization Satisfaction, Vision, Mission & Goals, Executive-level Management and Professional Development drivers). Similarly, employees who belong to large organizations (≥ 2,000 employees) tend to have more negative perceptions on eleven engagement drivers (e.g. Respectful Environment, Staffing Practices, Teamwork etc.) as compared to employees who belong to smaller organizations (< 2,000 employees). With respect to degree of reporting hierarchy present in organizations, employees who are farther away in terms of reporting levels from the Head of the BC Public Service were found to have more negative perceptions on the engagement characteristics and model drivers as compared to employees who are nearer to the Head of the BC Public Service. Among the organizational characteristics investigated, the proportion of leaders in the organizations was the only characteristic found to have a positive relationship with some of the engagement characteristics and model drivers. The more leaders there are in the organizations, the more positive the employee perceptions are on twelve engagement characteristics and model drivers The strongest relationships between the proportion of leaders and engagement drivers were on the Professional Development, Pay & Benefits and Physical Environment & Tools drivers. It is possible that some of these organizational characteristics are interconnected with each other and with the engagement model drivers through other factors that affect both the model drivers and organizational characteristics in similar ways. For example, large organizations also tend to have more reporting levels as well and may contain higher proportions of job occupations such as social work or frontline service work that may lead to common responses on questions TESTING THE ORGANIZATIONAL LANDSCAPE Page 29 CONCLUSIONS AND RECOMMENDATIONS associated with the Respectful Environment driver. Some of these large organizations may also have had larger proportions of workforce adjustments. Analysis on the complex interconnections between these organizational characteristics and the engagement model is currently not within the scope of this report. It is therefore recommended that more in depth studies be conducted to further isolate and determine these relationships through the inclusion of these factors and organizational characteristics in the BC Public Service Engagement Model using structural equation modelling (SEM). The greatest disparity in perceptions of the work environment is found to occur between the opposite ends of the organizational characteristics investigated. Larger differences in scores were observed in the extreme end values of some of the organizational characteristics investigated. This is true for organizational size, geographic dispersion by location, degree of reporting hierarchy and proportion of leaders present within the organizations. For example, the steepest declines in the Organization Satisfaction, Vision, Mission & Goals and Executive-level Management average scores occur in reporting levels two to four and nine to ten and not as much in reporting levels between four to nine. In terms of geographic dispersion, employees who belong to organizations in which employees are dispersed across four regions tend to have significantly more negative perceptions on the Respectful Environment, Staffing Practices, Recognition, Professional Development and Stress & Workload drivers as compared to employees who belong to organizations in which employees were centralized in one region. Another example is found on the proportion of leaders‟ characteristic where a larger disparity in the Pay & Benefits average scores was observed between organizations with greater than fifty percent leaders within their organizations as compared to organizations with less than fifteen percent leaders in their organizations. These findings suggest that the larger the difference in terms of the structure of the organizations is, as represented by organizational size, number of reporting levels, degree of centralization and proportion of leaders in organizations, the more disparate employees‟ perceptions of the BC Public Service work environment tend to be. The proportion of workforce adjustments was found to be the strongest predictor of the decline in averages scores between 2009 and 2010 on the three engagement characteristics (i.e., BC Public Service Commitment, Organization Satisfaction and Job Satisfaction). The proportion of workforce adjustments variable was found to have more significant correlations with engagement and model drivers when the differences in the organization‟s driver scores between 2009 and 2010 was used as opposed to the organizations‟ model driver scores within a single year (i.e., WES 2010). For example, when the proportion of WFA impact was correlated with the organizations‟ engagement and model driver scores for WES 2010, results TESTING THE ORGANIZATIONAL LANDSCAPE Page 30 CONCLUSIONS AND RECOMMENDATIONS showed that only two drivers namely Organization Satisfaction and Vision, Mission & Goals had significant correlations. However when the proportion of WFA was correlated with the difference in the organizations‟ engagement and model drives scores between WES 2009 and WES 2010, eleven drivers and engagement characteristics showed significant correlations with the proportion of WFA. This suggests that unlike the other organizational characteristics investigated in this report, the proportion of WFA variable is more closely related to the change in the organization‟s model driver scores between the two time periods than with the differences in organizations‟ model driver scores for WES 2010 alone. The regression results also indicate that among the six organizational characteristics, the proportion of WFA best predicts the decrease in the engagement characteristics namely BC Public Service Commitment, Organization Satisfaction and Job Satisfaction scores between WES 2009 and WES 2010. The results and general trends found in this report provide useful insights from an organizational development perspective. Approaches to improvements can be tailored to specific organizations while keeping organizational characteristics in mind. Knowing that organizational size is negatively correlated with Respectful Environment, Staffing Practices and Recognition for example may result in having more focused attention around these drivers in large organizations. Similarly, different approaches in staffing may be looked into when working with centralized organizations as compared to organizations that are dispersed across four regions. The opportunities for benchmarking can also be widened by looking at some best practices on specific drivers between organizations with similar organizational characteristics. Limitations of the Study Analysis between the two variables, namely organization size and reporting levels, showed that they are highly correlated with each other, indicating that as organization size increases, more hierarchy levels are also present within the organization. A key challenge in fully understanding the effects of both organizational characteristics, organization size and reporting level hierarchy, on employee engagement is the distribution of employees within organizations. Broken out by hierarchy levels, the majority of the employees would fall into reporting levels six and seven. Therefore, the strong relationships found between the reporting level variable and some of the drivers such as Pay & Benefits might also be a reflection of the larger proportion of employees in these hierarchy levels compared to levels one to five. Further research is needed to determine whether the observed relationships hold true when a potential effect of employee distribution across hierarchy levels is removed through additional analyses. Most of the analysis done in this study made use of the organizations‟ average scores. While this is useful in providing an organizational level perspective of the trends present between the drivers and characteristics of employee engagement and the organizational characteristics investigated, the applicability of the results at the work unit34 level or respondent level is greatly impacted by the variability of scores around each organization‟s average. For this reason, it may be worthwhile 34 Work unit is defined as the section or program area in which a respondent works. TESTING THE ORGANIZATIONAL LANDSCAPE Page 31 CONCLUSIONS AND RECOMMENDATIONS to validate in future studies, if the strength of the organizational level relationships and trends found still hold true at the work unit and respondent levels as well. TESTING THE ORGANIZATIONAL LANDSCAPE Page 32 APPENDIX APPENDIX APPENDIX A: MORE ON THE EMPLOYEE ENGAGEMENT MODEL In the Work Environment Survey, there are over 70 questions that cover a wide range of topics in the workplace. The questionnaire topics were developed from an extensive literature review of public and private sector research, and in consultation with other jurisdictions across Canada and leading experts in the field. In 2008, the questionnaire was further refined based on the growing expertise in BC Stats and feedback from the program partners. Each question is important and provides useful information, but some questions have a greater impact on engagement than others. However, it is difficult to know which questions are most strongly linked to engagement. BC Stats uses a sophisticated analysis technique, called structural equation modeling, to determine which questions or groups of questions have the biggest impact on engagement. The analysis uses the responses of all employees to develop a model of what matters most to employees. Model building has two main steps: 1. Identifying the important survey questions and grouping them into drivers 2. Uncovering the links and connections between the workplace concepts The researchers who built the model started with a deep theoretical and practical knowledge of what contributes to engagement in the workplace. Their knowledge helped identify workplace concepts and relationships for testing during model building. The initial model was built from the survey responses of 17,400 BC Public Service employees in 2006. A software program uses the survey responses to identify groups of survey questions that predict patterns in the engagement characteristics. The resulting model is custom designed for the BC Public Service. The model is re-tested with each year‟s survey results to ensure it accurately represents the work environment experiences of employees. Once the modeling process identified the drivers, the next step was to identify connections within the model. The parts of the model are all interconnected, like a spider web. The pattern of connections between drivers and characteristics form the overall structure of the engagement model. The structure of the engagement model was graphically introduced in the Exploring Employee Engagement reports as a „house‟, with a foundation, building blocks, and a roof. The house diagram is a visual metaphor that describes the relationships between the different parts of the work environment. The model rests on two drivers – Executive and Supervisory-level Management – which are connected to every other driver in the model. As management is the foundation of the engagement model, it is depicted as the foundation of the „house‟ diagram. The building blocks identify the workplace functions and concepts influencing engagement. The characteristics of engagement – BC Public Service Commitment, Job Satisfaction, and Organization Satisfaction – are the outcomes of the model. The Engagement score is a single number, calculated from the three engagement characteristics. To visually represent the model, the house diagram was designed to show what is most important in the workplace and how all the pieces fit together. The model is complex and should be thought of as multi-dimensional. TESTING THE ORGANIZATIONAL LANDSCAPE Page 34 APPENDIX Figure 11: The Model as a House Diagram THESE OVALS ARE THE ENGAGEMENT CHARACTERISTICS BC Public Service Commitment The characteristics are made from questions, which express the concept of engagement. Job Satisfaction Organization Satisfaction Stress & Workload Empowerment Vision, Mission & Goals Physical Enviro & Tools Teamwork Professional Development Recognition Pay & Benefits … And they are used to calculate the engagement state and the engagement score. Staffing Practices Executive-level Management Respectful Environment THESE BOXES ARE DRIVERS Drivers are made from questions with the biggest impact on the characteristics of engagement. Supervisory-level Management For more specific details on the statistical processes and results guiding the development and testing of this model, please refer to the technical report produced in April 2010 called Modelling the 2009 Work Environment Survey Results.35 35 Available online at: http://www.bcstats.gov.bc.ca/data/ssa/analysis.asp TESTING THE ORGANIZATIONAL LANDSCAPE Page 35 APPENDIX APPENDIX B: ADDITIONAL RESULTS Table 11. Organizations in the BC Public Service and the Different Organizational Characteristic Values Used in the Analysis Organization Aboriginal Relations and Reconciliation Agriculture and Lands Attorney General BC Public Service Agency Children and Family Development Citizens' Services Education Energy, Mines and Petroleum Resources Environment Environmental Assessment Office Finance Forests and Range Integrated Land Management Bureau Labour Office of the Premier Public Affairs Bureau Public Safety and Solicitor General Advanced Education and Labour Market Develop Community & Rural Development Health Services Healthy Living and Sport Housing and Social Development Olympic Games Secretariat Small Business, Technology and Economic Development Tourism, Culture and the Arts Transportation and Infrastructure Shared Services BC Tourism BC Total Population Count Highest Organizational Reporting Level Dispersion by Region Dispersion by Count of FSAs Proportion of Leaders % Proportion of WFA 177 349 2947 398 4341 616 290 6 8 10 7 9 8 8 1 4 4 4 4 4 2 1 16 48 11 91 41 3 38% 17% 11% 60% 7% 29% 22% 0 0 .01 .08 0 .03 0 277 1318 50 1241 2794 495 207 49 214 2549 7 9 * 8 10 9 7 * 5 10 4 4 * 4 4 4 4 * 2 4 10 40 * 16 47 13 15 * 6 58 29% 13% * 31% 11% 19% 68% * 95% 12% .19 0 * .01 .11 .08 0 * .04 0 359 240 892 174 2328 34 8 7 9 8 10 * 2 4 3 1 4 * 4 13 5 1 74 * 30% 35% 24% 39% 14% * .08 0 176 132 1327 1325 137 8 7 9 9 8 2 4 4 4 2 3 20 54 16 2 55% 26% 18% 20% 35% 0 0 0 .16 0 0 .01 * 25436 TESTING THE ORGANIZATIONAL LANDSCAPE Page 36 APPENDIX Reporting Level Engagement Commitment Job Satisfaction Organization Satisfaction Empowerment Stress & Workload Vision, Mission & Goals Teamwork Physical Environment & Tools Recognition Professional Development Pay & Benefits Staffing Practices Respectful Environment Executive Level Supervisory Level Table 12. Engagement and Model Driver Average Scores by Reporting Levels 2 3 4 5 6 7 8 9 96 83 74 69 66 63 61 60 95 83 75 70 68 65 63 63 97 84 75 71 68 66 63 63 97 81 71 66 62 58 55 54 93 87 77 71 67 63 60 56 80 72 64 61 58 56 53 55 94 81 70 62 57 53 52 52 96 89 84 79 77 73 73 69 92 85 79 74 70 64 61 58 92 82 74 66 63 57 54 52 89 78 68 62 58 52 51 51 89 79 68 63 56 51 47 42 100 84 80 69 63 52 46 41 95 89 85 79 76 69 66 61 95 81 67 58 53 50 48 49 93 82 76 72 71 66 65 62 10 49 N = 19,746 respondents 48 53 44 43 59 39 62 51 41 41 35 26 51 40 51 Staffing Practices Mean Difference Respectful Environment Mean Difference Executive Level Mean Difference Supervisory Level Mean Difference -6.3 -5.7 -3.7 -5.2 -1.1 -5.0 -11.0 -6.4 -2.6 -4.4 -1.2 -4.3 -6.7 -2.9 -1.6 -1.4 Professional Development Mean Difference -4.4 Recognition Mean Difference -5.4 -8.9 Physical Environment & Tools Mean Difference -14.4 -5.7 Teamwork Mean Difference -3.7 -10.6 Vision, Mission & Goals Mean Difference -4.6 -5.4 Stress & Workload Mean Difference -11.3 Empowerment Mean Difference -11.2 Organization Satisfaction Mean Difference -13.9 Job Satisfaction Mean Difference -6.0 Commitment Mean Difference -15.3 Engagement Mean Difference -9.9 Adjacent Reporting Level Comparison Pay & Benefits Mean Difference Table 13. Differences in Average Scores between Adjacent Reporting Levels across Engagement and its Model Drivers showing the 36 Largest Statistically Significant Gaps that may Require More Focused Attention 2-3 -13.2 -11.4 -13.0 -15.4 -6.7 -8.2 -13.2 -6.8 -6.4 -10.5 -11.6 3-4 -8.8 -7.9 -9.0 -10.1 -9.4 -8.1 -11.1 -5.2 -6.3 -7.8 -10.0 4-5 -5.0 -5.3 -4.1 -5.3 -5.8 -2.6 -7.6 -4.5 -5.3 -7.3 -5.5 5-6 -3.1 -2.1 -2.8 -4.3 -4.0 -2.8 -4.8 -1.9 -4.1 -3.5 -4.7 6-7 -2.8 -2.7 -2.1 -3.7 -4.8 -2.5 -4.1 -3.9 -5.9 -5.7 -5.6 7-8 -2.5 -2.0 -2.7 -2.6 -2.4 -2.7 -1.7 -0.6 -2.8 -3.5 36 8-9 -0.8 -0.6 -0.5 -1.3 -4.3 1.7 -0.1 -4.1 -3.0 -2.0 0.5 -5.2 -4.9 -5.3 0.2 -3.4 9-10 -11.2 -14.7 -9.4 -10.1 -12.7 4.6 -12.7 -6.2 -7.2 -11.0 -10.7 -6.5 -15.2 -9.8 -8.5 -10.2 Blue cells indicate statistically significant difference between adjacent organizational levels at p< 0.05. TESTING THE ORGANIZATIONAL LANDSCAPE Page 37 APPENDIX The Development Path The sixth path is comprised of four drivers, and is focused on building a professionally skilled, competent and fulfilled public service. The „Development Path‟ can positively or negatively impact engagement through its connection to Organization Satisfaction. This pathway starts with communication from both levels of management in the model‟s foundation. The strong relationship between Executive- and Supervisorylevel Management means that both drivers have a significant and combined effect on Professional Development. The ways in which supervisors and their senior leaders incorporate professional development into the work environment offers a good indication of the organization‟s future direction and provides a basis for numerous workplace decisions. Arriving at Professional Development, the pathway then leads to the Vision, Mission & Goals driver. Based on this relationship, employees‟ perceptions of an organization‟s vision, mission and goals becomes partially dependent on the availability, quality and support of career development opportunities. Through these connections, the foundation can indirectly support the Vision, Mission & Goals of their organization by offering adequate opportunities for high quality, work-related training and learning to all employees. By supporting these development opportunities, and allowing employees to become the best public servants they can be, it may be possible to sustain the vision of the BC Public Service. From the Vision, Mission & Goals driver, the pathway finally reaches the roof of the model by connecting with Organization Satisfaction. To increase employees‟ satisfaction with their organization, the vision, mission and goals of the organization must be articulated well and provide sufficient detail as to what steps are being taken to ensure its long term success. The satisfaction employees have with their organization can be further supported by offering training and development opportunities consistent with the organization‟s direction and employees‟ interests. Work units facing issues with either Organization Satisfaction or the Vision, Mission & Goals driver, may wish to investigate ways to better support career development opportunities. By doing so, it will be possible to develop a well trained, skilled and engaged work unit. TESTING THE ORGANIZATIONAL LANDSCAPE Page 38 APPENDIX Figure 12. The Development Path Diagram The Development Path BC Public Service Commitment Job Satisf action Organization Satisf action Empowerment Vision, Mission & Goals Stress & Workload Recognition Pay & Benef its Physical Environment & Tools Teamwork Prof essional Development Staf f ing Practices Executive-level Management Respectf ul Environment Supervisory-level Management Very Strong Path Moderately Strong Path Strong Path Minimally Strong Path TESTING THE ORGANIZATIONAL LANDSCAPE Page 39 APPENDIX Table 14. Comparison of Respectful Environment Driver Scores showing Significantly Higher Average Scores for Small Organizations as Compared to Large Organizations Organization Size Small Organizations (<2,000) Large Organizations (≥2,000) 95% Confidence Interval for Mean Number of Organizations Respectful Environment Mean Standards Deviation Standard Error 20 77.09 3.865 5 69.19 2.036 Lower Bound Upper Bound Min Max 0.864 75.28 78.9 70 82 0.91 66.66 71.72 66 71 Table 15. Linear Regression Results on the Engagement Characteristics showed that the Proportion of WFA is the Top Predictor for the Decrease in Average Scores 37 between 2009 and 2010 Difference in Engagement Characteristics Average Scores between 2009 & 2010 1. BC Public Service Commitment 37 Top Organizational Characteristic Predictor/s R2 Unstandardized Coefficients (B) Standardized Coefficient (β) Significan ce a. Proportion of WFA Impact 0.752 -49.66 -0.867 0.000 2. Organization Satisfaction a. Proportion of WFA Impact 0.651 -77.59 -0.807 0.000 3. Job Satisfaction a. Proportion of WFA Impact 0.343 -28.42 -0.585 0.003 Data in the table excludes Olympic Games Secretariat, Office of the Premier, Environmental Assessment Office and Tourism BC. TESTING THE ORGANIZATIONAL LANDSCAPE Page 40 APPENDIX APPENDIX C: DRIVER DESCRIPTIONS The engagement model drivers are defined as follows: Empowerment Employees believe they have opportunities and freedom to provide input, make decisions to do their job well and implement new ideas. Stress & Workload Employees perceive that their work-related stress and workload are manageable. Vision, Mission & Goals Employees believe their organization‟s vision, mission, and goals are well communicated and their organization is taking steps to ensure its long-term success. Teamwork Employees experience positive working relationships, have support from their team, and feel their team communicates effectively. Physical Environment & Tools Employees believe their physical surroundings are satisfactory and they have the technology and/or equipment to do their job well. Recognition Employees experience meaningful and performance-based recognition. Professional Development Employees believe their organization supports their learning and development, provides good quality training, and offers adequate opportunities to develop their skills. Pay & Benefits Employees believe they are fairly paid for their work, and their benefits meet their needs. Staffing Practices Employees believe staffing processes in their work unit are fair and based on merit. Respectful Environment Employees experience a healthy discrimination and harassment. and diverse atmosphere free from Executive-level Management Employees believe that senior leaders communicate decisions in a timely manner, and that they provide clear direction for the future. Supervisory-level Management Employees believe that the person they report to keeps them informed and consults them on decisions that affect their work. TESTING THE ORGANIZATIONAL LANDSCAPE Page 41 If you have any questions about the information in this report, please contact BC Stats. 250-387-0359