Agenda
Item No: 4
Page Numbers: 33 - 48
EAST RIDING OF YORKSHIRE COUNCIL
Report to:
The Cabinet
08 June 2010
Wards:
All wards
Employee Engagement Strategy
Report of the Director of Policy, Partnerships and Improvement
A.
Executive Summary
It is vital that the Council maximises the engagement of its employees because
employees who are engaged generally perform better than those who are not
thereby delivering improved business performance.
The proposed Employee Engagement Strategy is designed around four key
principles, which if implemented successfully will maximise the engagement of
employees.
B.
Corporate Priorities 2008-2011
A Well Managed Authority
C.
Portfolio
Corporate Support Services
Performance Improvement and Partnerships
D.
Recommendation and Reasons for Recommendation
It is recommended that the Employee Engagement Strategy at Appendix 1 be
approved.
1.
Background
1.1
The Council has a clear commitment to engage with its workforce, which is
demonstrated through the Workforce Strategy which clearly highlights the need
to develop the workforce using a range of approaches in order to deliver
excellent services to its residents. Employees have a key role to play in delivering
the Corporate Priorities and the Shared Ambitions for the East Riding.
1.2
The Council is a recognised Investor in People and the need to engage with
employees is embedded throughout the standards for Investors in People.
1.3
The Council wants to meet the needs of the organisation and its employees.
Research shows that employees want stimulating jobs that are worthwhile and
lead to job satisfaction. There are many aspects of working life that contribute to
employee engagement, however the strongest driver for employees is a sense of
feeling valued and involved.
1.4
Consultation has taken place with a wide range of key stakeholders.
2.
Key principles and considerations
2.1
The proposed Employee Engagement Strategy is designed around four key
principles, which if implemented successfully will maximise employee
engagement with the organisation. The principles are as follows:
2.2
The Council needs to measure the engagement of its workforce. There is a
clear link between employee engagement and business success. In order to
formulate a strategy for improving employee engagement it is necessary to know
what is working well, and where improvements are needed.
2.3
Effective communication channels throughout the organisation are
required. The Council’s Communications Strategy identifies the need to
promote dialogue with employees and listen to their views. Involvement in
decision making and the extent to which employees feel able to voice their ideas,
and be listened to, are an important aspect of employee engagement.
2.4
People management and development strategies/policies need to be
effective. Employees who have a negative experience in the workplace will
quickly disengage. Strategies and policies need to be in place that will minimise
the risk that this will happen and allow an environment to be created that will
maximise opportunities for engagement.
2.5
Employees need to understand how they contribute to the success of the
organisation. Employees are the Council’s greatest asset and an understanding
of how their role contributes to the service’s objectives, and in turn how the
service’s objectives contribute to the aims of the organisation, will maximise
employees’ sense of value and maximise engagement.
2.6
In light of the Government’s efficiency agenda and the strain on public sector
finances, the need to maximise the value added from all the Council’s assets,
including its staff, has never been more important.
2.7
Actions from the Employee Engagement Strategy will be incorporated into the
Council’s Workforce Strategy Action Plan and will be monitored by the
Workforce Strategy Project Board.
Steve Button
Director of Policy, Partnerships and Improvement
Contact Officer:
Telephone Number:
E.mail:
Background Papers
None
Brigette Giles
Head of Resource Strategy
01482 394400
Brigette.giles@ eastriding.gov.uk
APPENDIX 1
Employee Engagement Strategy
June 2010
Policy, Partnerships and Improvement
Our Employee Engagement Strategy
We want to be the best! Not only will we achieve our vision and
aims, deliver the priorities and exceed customer expectations, but we
will also be an organisation for which people aspire to work.
Councillor Parnaby, OBE, Leader of the Council
Employee Engagement Strategy.DOC
Key Challenges
It is vital that we maximise the engagement of our employees because those who are
engaged will perform better than those who are not engaged and thereby deliver
improved business performance through increased productivity, improved organisational
performance, better outcomes for our customers and improved staff retention rates.
We want to be an organisation that motivates and inspires our workforce. We want to be
an organisation that meets its needs and those of our employees. Employees want
stimulating jobs that are worthwhile and lead to job satisfaction. There are many aspects
of working life that contribute to employee engagement; however the strongest driver for
employees is a sense of feeling valued and involved1. To maximise employee engagement
we need to ensure that:
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employees are involved in decision making, ensuring they have a voice
effective communication throughout the organisation
the psychological contract2 between the Council and its employees is maximised
employee commitment to the organisation is maximised
an environment exists where individuals and teams feel valued.
Research into employee attitudes, undertaken in January 2009 by the Chartered Institute
of Personnel and Development (CIPD), found that the main elements of employee
engagement were:
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having opportunities to feed your views upwards
feeling well-informed about what is happening in the organisation
believing that your manager is committed to your organisation
involvement in decision-making
freedom to voice ideas, to which managers listen
feeling enabled to perform well
having opportunities to develop the job
feeling the organisation is concerned for employees’ health and wellbeing
Some staff may refuse to engage and our recruitment processes need to minimise this.
Other employees’ level of engagement can be influenced by many factors, such as the job
they do, the behaviour of their managers towards them and the effectiveness of
communication channels throughout the organisation.
According to the Improvement and Development Agency3 (IDeA) “For most mid-range
professional staff, engagement is not about money. Mori research has shown that,
except for the very lowest paid workers, a doubling of income would not significantly
increase contentment and hence their potential engagement. Audit Commission research
showed that pay was very low down the list of reasons why people leave the public
sector. For most people non-financial rewards are the most significant motivator: get
these right and people will be engaged and motivated.”
This Strategy incorporates the viewpoints from a range of stakeholders and this
consultation is summarised in the following table:
1
Institute of Employment Studies
“Psychological contract” has been defined by the CIPD as “the perceptions of the two parties,
employee and employer, of what their mutual obligations are towards each other”
3
Improvement and Development Agency Web resource, June 2008
2
Employee Engagement Strategy.DOC
Who
How
Why
Employees
Workforce Survey
Managers
Workforce Strategy Project Board
Impacted by the strategy,
and to inform the approach
Impacted by the strategy,
and to inform the approach
Senior Management Team
Corporate Management Team
Investors in People Corporate Focus Group
Email consultation/discussion
Other
areas of the
Council
(Legal,
Finance,
HR)
Trades
Workforce Strategy Project Board
Unions
Employee Engagement Strategy.DOC
To consider implications
for specific areas, and
responsible for delivering
aspects of the strategy
To consider implications
for the Council, its
workforce and to inform
approach
Key Principles
There are four key principles on which our Strategy is based, which if implemented
successfully will maximise employee engagement within the organisation. These are as
follows:
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measuring engagement of our workforce
effective communication channels throughout the organisation
people management and development strategies/policies that are effective
employees understand how they contribute to the success of the organisation
1. Measuring engagement of our workforce
Key points from this section
§ The Workforce Survey is our key mechanism for measuring and monitoring
employee engagement.
There is a clear link between employee engagement and business success. In order to
formulate a strategy for improving employee engagement it is necessary to know what is
working well and where improvements are needed.
The Council currently measures employee engagement in a number of ways including:
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Workforce survey
Investors In People review
Exit interview questionnaires
Staff turnover figures
Staff absence rates
Workforce Survey
All staff have an opportunity on an annual basis to complete the Council’s Workforce
Survey which asks a range of questions that measures their satisfaction with:
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Involvement and recognition
Equalities
Communications
Morale and motivation
Leadership
Training and development
Community and health
Investors in People
The Council is a recognised Investor in People. This standard recognises organisations
that are committed to maintaining high standards in the key processes of induction,
learning and development, Employee Development Reviews (EDR), effective
communication and valuing and recognising people.
Employee Engagement Strategy.DOC
Exit Interviews
On leaving employment with the Council staff are asked to complete an exit interview
questionnaire which identifies reasons for leaving, which are then reported in the annual
Workforce Information report.
Workforce Information
The Council produces an annual Workforce Information report which identifies a
number of ways that help us to measure employee engagement such as staff turnover and
sickness rates. Over recent years our staff turnover levels and sickness rates have fallen
significantly. Economic conditions are almost certainly partly responsible for reduced
turnover levels and changes to the Absence Management Policy may be partly
responsible for reduced levels of sickness; however both results could also be an
indication that employee engagement has increased.
Our plans are:
Short term (0-3 years)
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Continue to conduct the annual Workforce Survey and revise practices in line
with findings
Ensure that feedback from the Workforce Survey is used to inform Workforce
Planning through Service Planning
Publish, through the Intranet and Grapevine, how the Workforce Survey has
changed business practice, as an incentive for staff to complete the survey
Maintain Investors in People recognition
Continue to evaluate why people leave employment with the Council through
analyses of exit interview questionnaires
Improve the return rate of exit questionnaires
Continue to produce the annual Workforce Information report
Build reporting functionality for managers so that they can readily access
workforce information for their area whenever they need it
Medium term (3-5 years)
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2.
Use the revised Investors in People standards to build on current practice in
terms of consultation and involvement so that staff are encouraged to take
ownership and responsibility by being involved in decision making
Benchmark Workforce Survey results in terms of employee engagement
Make the Workforce Survey more accessible electronically to front-line staff to
increase the response rate
Effective communication channels throughout the
organisation
Key points from this section
§ The development of mechanisms to enable employees to contribute their ideas is
important to develop a sense of being valued.
§ An effective Staff Innovation Scheme will realise efficiencies for the Council and
increase the opportunity for staff to have a voice.
The Council’s annual Workforce Survey results identified that most staff believe they are
kept well informed about what the Council is doing and receive enough information to
do their job well. Staff have a clear understanding of expected standards of performance
and the majority of staff are proud to work for the Council.
Whilst the results are positive, they indicate that communication could be improved and
increased levels of engagement could be achieved as a result.
Research shows that one of the strongest drivers for employee engagement is a sense of
feeling valued and involved4. Valuing our employees is one of the Council’s
organisational values. There are many ways in which organisations can achieve this
including involvement in decision making and the extent to which employees feel able to
voice their ideas, and managers listen to these views and value employees’ contributions.
The Council has a number of key mechanisms for communicating messages to staff (e.g.
Grapevine, Team Talk, the intranet, diagonal slice meetings and team meetings) but there
are fewer formal mechanisms for staff to communicate their ideas to the organisation.
The Council’s Communications Strategy states that “Internal communication needs a
positive lead from top management, but the best results are achieved when everyone
accepts responsibility and everyone makes an effort. The principal links must be line
managers and supervisors who are communicating in both directions, and in this respect
frequent team meetings play an important role. Managers should know, and encourage
the expression of, employees’ views in order to make better and more understandable
decisions”.
The Council’s Communications Strategy also states: “The Council acknowledges that
employees are its most important asset and it strives to be a good employer. The Council
is serious about promoting dialogue with employees and listening to their views”.
The Council’s change strategy, Striding Ahead 2010, states that staff working in services
are best placed to see where savings can be made and will be encouraged to get involved.
The Council, through Striding Ahead, wants staff feel that they are involved in the
transformational changes under way and can contribute their ideas.
To increase the effectiveness of the organisation, we recognise that we need a steady flow
of ideas and solutions from our employees, who are best placed to know where and how
these efficiencies can be achieved. Staff suggestion schemes can offer an effective way of
enabling employees to have a voice, be recognised for their contribution, and for the
organisation to benefit from suggestions that lead to improved business practices.
A staff forum, dedicated to the sharing of ideas and suggestions, could be a simple and
effective way for staff to communicate ideas to the organisation. Senior Management
could also use it to seek feedback from staff on particular issues by starting a forum
discussion. This facility would have to be monitored and moderated to ensure that it was
used in a productive manner. The development of a staff forum is part of the two way
communication plan for Striding Ahead 2010 and could be included as part of the
revision to the intranet which will be used to improve communication and staff
engagement.
Being part of a respected organisation has been identified by the Chartered Institute of
Personnel and Development (CIPD) as a factor that can influence employee
engagement5.
4
5
Institute of Employment Studies
Reflections on Employee Engagement, CIPD, 2006
Employee Engagement Strategy.DOC
There are many benefits to working for the Council in addition to salary. These
additional benefits, such as pension, flexible working, training and other non-pay
benefits, are often not recognised, or communicated to existing staff and potential
employees. These benefits, along with salary, are described as an employee’s ‘total
reward and recognition package’. The development of a ‘Total Reward and Recognition’
strategy would enable the organisation and its employees to identify and quantify the
total value of employees’ employment packages.
Our plans are:
Short term (0-3 years)
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Develop a ‘Total Reward and Recognition’ strategy
Review of the Communications Strategy
Review the current Staff Innovation Scheme and develop a new approach to
generating staff ideas
Develop an online forum via the intranet for employees to voice opinions, ideas
and give feedback
Use existing communication methods (such as Grapevine and the intranet) more
effectively to inform staff about and celebrate the success of the organisation
Continue to provide and build on the current set of non-pay benefits
Medium term (3-5 years)
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3.
Develop a method of recognising, communicating and rewarding outstanding
individual/team contribution to business success
Develop methods for managers to consult/involve staff in decision-making,
throughout the organisation
Explore further the reasons for negative responses to some Workforce Survey
questions and develop solutions where areas are identified as a concern.
People management and development strategies/
policies that are effective
Key points from this section
§ The Council has a comprehensive set of strategies and policies in place to
support employee engagement.
§ The Competency Framework will add real value to employee engagement when
embedded throughout the organisation.
The Council’s annual Workforce Survey identifies that most staff feel that they are able
to strike the right balance between their home and work life and are satisfied with being a
Council employee. Most staff agreed that their manager gives them constructive and
regular feedback on performance and managers develop positive working relationships
within their team and across the Council.
Employees who have a negative experience in the workplace will quickly disengage.
Strategies and policies need to be in place that will minimise the risk that this will happen
and allow an environment to be created that will maximise opportunities for engagement.
Some employees will never engage with the organisation but effective recruitment and
induction practices can help to ensure that this risk is minimised.
The Council has a comprehensive Competency Framework which is intended to
underpin the recruitment, induction, appraisal and development of our workforce - but
this is not used systematically across the organisation for all staff groups. Behaviours
associated with employee engagement are incorporated within many of the elements of
the framework, e.g. “shares information”, “generates creative options”, “makes work
fun” and “enthuses others”.
The framework can be used to ensure that the recruitment process is rigorous and that
development needs are identified and addressed for existing staff. The Workforce
Survey found that whilst the majority of staff are aware of the Competency Framework
further work is needed to embed the framework across the organisation.
A comprehensive set of strategies and policies are in place to support the management
and development of our employees including:
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Workforce Strategy
Learning and Development Strategy
Recruitment, Appointment and Termination Policy
Pay, Awards and Job Evaluation
Disciplinary, Capability and Fraud
Equalities Policy
Attendance at Work Policy
Grievance Policy
Secondment Policy.
The wellbeing, and health and safety of employees are important factors in maximising
employee engagement. The Council’s Occupational Health facility, operated by arvato,
provides a range of services designed to maintain and improve our employees’ welfare.
Effective use of flexible working can bring business benefits and can also improve our
employees’ work/life balance.
Opportunities for volunteering can also increase staff satisfaction, as the organisation is
providing support for employees to make a difference out of the workplace.
Access to reduced costs leisure passes and free occupational health/counselling support
demonstrates the organisation’s commitment to the wellbeing of its staff.
Our plans are:
Short term (0-3 years)
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Continue to review existing strategies and policies to ensure they remain current,
and reflect best practice
Ensure that managers use the Council’s policies to best effect, to maximise
employee engagement
Embed the use of the Competency Framework across the organisation for
recruitment and EDRs
Ensure line managers use the competency framework to recruit and develop staff
to maximise engagement
Continue to implement the Council’s Workforce Strategy
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Continue to develop a range of non-pay employee benefits
Develop managers in the use of policies and the Competency Framework
Promote the Council’s framework for volunteering and measure the
organisation’s contribution to volunteering in terms of staff time
Promote the work that the Council does to support the wellbeing of staff
Review the induction process at organisational and team level to ensure employee
engagement is maximised throughout the early stages of an employee’s
employment with the Council
The further development of flexible working through policy and technological
advancement identified through the Worksmart transformational project
Medium term (3-5 years)
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Incorporate employee engagement within the Workforce Planning sections of
service plans
Increase the availability of 360-degree appraisals, as an optional process for all
staff to utilise as part of their development
4. Employees understand how they contribute to the success
of the organisation
Key points from this section
§ Managers need to be more visible throughout the organisation.
§ All staff must have the opportunity to have a meaningful EDR.
The Council’s annual Workforce Survey identifies that most staff:
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Are aware of Striding Ahead
Are aware of the Council’s 7 Corporate Priorities
Understand how their work contributes to the aims and objectives of their
service
Feel encouraged to contribute views on improving service delivery
Feel adequately consulted on the service plan in their section
Feel that they are able to influence decisions that affect their job or work life
Believe their manager recognised and acknowledged when they had done well
Feel valued and recognised for the work they do by the people who manage them
Management development programmes help develop management and leadership
capability, providing our managers with a substantial organisational commitment to their
personal development which in turn will benefit their staff.
Line managers have an important role in nurturing employees’ sense of value and
involvement to maximise engagement. “We value our employees” is one of the
Council’s values.
The development of a Talent Management Approach would enable links to be made
between staff development policies and practice, succession planning and other
processes that identify and nurture the organisation’s talent.
There are a number of formal arrangements/tools in the Council that enable managers to
engage with employees and recognise employee contributions such as:
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Employee Development Reviews
Training and development opportunities
Flexible working policy
Diagonal slice meetings
Team Talk
Managers also will have informal mechanisms for engaging their employees and
monitoring engagement levels in teams, such as team meetings, team days, EDR
discussions and service plan discussions.
Workforce Survey results suggest that feedback, acknowledgement and visibility of
managers are areas that could be improved. Increasing the visibility of managers would
provide an opportunity to communicate to staff their vision for the organisation and
their commitment to their workforce as part of this vision. The communication plan
within Striding Ahead 2010 aims to address this.
There is an important link between employees feeling that they have got a satisfactory
balance between work and the rest of their life and employee engagement. Most staff
feel they have got this balance right.
Completion rates of employee development reviews are measured by the number of
returns that are received by training co-ordinators. In some areas of the Council, return
rates are very high, but in other areas returns could be improved.
The Council has developed 6 organisational values as part of Striding Ahead 2010, as
follows:
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we respect differences and put customers first
we protect the vulnerable and promote independence
we communicate well
we value our employees
we work together
we find value for money ways to work
Our plans are:
Short term (0-3 years)
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Continue to develop our managers through management development
programmes
Increase the visibility of managers within the organisation to communicate the
vision for the organisation and commitment to an engaged workforce
Involve staff more in service planning for their section
Ensure that all staff have the opportunity to have EDRs in line with the agreed
process
Develop a guide to engaging staff in service planning
Develop an employee charter (including employee engagement) to strengthen
the psychological contract between the organisation and its employees
Develop a Talent Management approach that is clearly defined and shared
How we deliver the strategy
This Strategy will support the delivery of the Corporate Workforce Strategy.
Implementation will be led by the Organisational Development Team, directed by the
Workforce Strategy Project Board.
Workforce
Strategies
Corporate
Children’s
Adult
Health
Apprenticeship
Strategy
Work
Placement
Strategy
Learning &
Development
Strategy
Recruitment &
Retention
Strategy
Employee
Engagement
Strategy
Action Plan
As with delivery of the other workforce related strategies, actions relating to the delivery
of this Strategy are included in the Workforce Action Plan.
Equality Impact Assessment
An equality impact assessment has been conducted in relation to this Strategy.
Monitoring Arrangements
The Workforce Strategy Project Board is responsible for monitoring progress against the
action plan, which is reported on a bi-monthly basis.
The Board comprises representation from the following areas:
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Chair - Director (Policy, Partnerships and Improvement)
Director of Planning and Economic Regeneration
2 Heads of Service from Children, Family and Adult Services
2 Heads of Service from Environment and Neighbourhood Services
Head of Resource Strategy (Policy, Partnerships and Improvement)
Head of Human Resources (representing Corporate Resources)
UNISON representative
HR Manager (Corporate Resources / Policy and Projects)
Organisational Development Manager
Employee Engagement Strategy.DOC
Performance Information
Performance against the actions delivered through this Strategy will be monitored
through a range of sources, primarily the Workforce Survey and Workforce Information
Reports.
Life span/review process
This Strategy will be renewed on a 3 yearly basis. As part of the ongoing review process,
any changes arising out of the Council’s annual priority setting process will be reflected.
Risk Management
Strategic risks are highlighted in the strategic risk register and this Strategy responds to
the following risks:
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Failure to retain skilled workforce to meet service needs
Develop and implement robust strategies to address Council priorities.
The Workforce Strategy Project Board is responsible for ensuring that the actions
defined in the action plan are being delivered to minimise these risks. Minutes of the
Board are reported to the Corporate Management Team.
Any risks to the delivery of the strategy will be highlighted and managed through the
Resource Strategy and Human Resources’ service planning process.
Implementation and Resources
Some of the actions identified within this Strategy are already in place and this Strategy
will, therefore, ensure that these continue and are enhanced as required. Other actions
represent new developments which will be implemented using existing resources. Actions
identified in this Strategy will be incorporated into the Workforce Strategy Action Plan
and monitored by the Workforce Strategy Project Board.
Conclusion
The business benefits of an engaged workforce are clear. Engaged employees perform
better than those who are not engaged and thereby deliver improved business
performance through increased productivity, improved organisational performance,
better outcomes for our customers and improved staff retention rates.
Employee engagement can bring significant benefits to our employees and our business;
however raising and maintaining engagement levels takes effort, commitment and
investment. This Strategy demonstrates our commitment to employee engagement and
whilst we have many of the building blocks in place to ensure we are a top performing
organisation in this respect, the implementation of the actions identified in this Strategy
will strengthen this position.
Employee Engagement Strategy.DOC
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Employee Engagement Strategy.DOC