Employee Engagement
Yvonne White
BA (Public Mgt.), MBS,
FCIPD, MPRII, M. Inst. D
yvonne@yvonnewhite.com
Outline
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What it is
Why it is important
Impact on performance
But...my experience
Organisational prisoners
Engaging top performers
Options to improve engagement
Country Studies –UK, Luxembourg, and others
Further Reading
Questions?
Staff Engagement 1
• Aon Hewitt “Trends in Global Engagement”
May 2013
• Survey representing 2.1 million employees
world-wide
• 42% of employees are somewhat, or
completely, disengaged
Staff Engagement 2
• Key questions:
–Are we doing the right things to
ensure that we have capable, focused,
committed people, taking the right
actions to achieve organisational
performance?
–What do employees need to be
engaged?
Why is engagement important?
• My experience:
– Prison Service, Prime Minister’s Office, ComReg.
– environment of uncertainty and cost containment –
trust and connection weakened in many companies
– traditional engagement drivers such as rewards, job
security, development opportunities and work-life
balance negatively impacted by the recession
– Engagement: high performance culture = involvement
and engagement. Intention to stay and invest in
discretionary effort. Pipeline of critical talent.
Engaged and disengaged-direct link to
organisational performance
Engaged Employee
Disengaged Employee
Goes extra mile
No “above and beyond”
Feels and builds sense of community,
helps colleagues
Concerned mainly with personal
advantage
Enables change
Resists change
Willing to take smart risks
Reluctant to take risks
Can count on, even in tough times
Quick to leave when market bounces back
Energises others
Mistrusts management, drains energy
Champions company
Becomes a contagious virus!
Theory
• “If you facilitate the steady progress of
subordinates in meaningful work, make that
progress salient to them and treat them well,
they will experience the emotions,
motivations and perceptions necessary for
great performance. Their superior work will
contribute to organisational success. And
here’s the beauty of it: they will love their
jobs.” -- HBR May 2011 Amabile and Kramer.
But....
• Is engagement something leaders are doing to
others to get more out of staff? Self-serving? Or is
fairness/trust the cornerstone to a decent
workplace? Is it in everyone’s interests to
maximise potential of all our people?
• Whose job is it to engage staff –HR? Line
managers? Top managers? Staff themselves?
Government?
• Do people join organisations and leave
managers?
– 70,000 employees surveyed. Top management
initiatives have most effect on motivation and intent
to stay. Basford, Offermann, Wirtz May 2012 Journal of Leadership and Organisation Studies).
(
But...
• A minority of employees are likely to resist
becoming engaged.
• Employee’s sense of engagement is not always
focused on the employer-for example solidarity
with profession can influence workplace
attitudes.
• Additional recession risks – presenteeism,
working out of fear, burnout, conflict, failing to
keep pace with developments. Turnover down
but organisational prisoners?
6 Types of
Desire
Organisational Prisoner to
Stay
Potential to
Perform
Potential to
Perform
Potential to
Perform
www.chiumento.co.uk
Core Capability
Desire to Grow
Energy and
Motivation
Low
Variable
Variable
Low
Economic Prisoner:
Low
Boom rewards locked in
best and average and
now above open
market rate. Older
workers.
Variable
Variable
Variable
Lifer: No ambition for
responsibility or
stretch. Ease –location,
hours. Above average
change resisters.
Variable
Low
Variable
Escaper: No opp
outside now but when
comes; top performers;
celtic cubs/grads and
senior managers.
Money key.
High
Organisational Prisoners: Part 2
Type of Organisational
Prisoner
Desire
to Stay
Potential to
Perform:
Core
Capability
Potential to
Potential to
Perform:
Perform:
Desire to Grow Energy and
Motivation
Prisoner of Conscience:
They believe in you –
were best available at
time but limited.
High
Low
Variable
High
Prisoner of
High
Circumstance: Want to
stay, perform –untapped
talent. Can’t move or
realise potential: hours,
training access,
leadership
High
High
Variable
Visiting Stars: Raise
game, transfer skills,
facilitate change, move
on as intended –safe
haven.
High
High
High
Low
High Potentials
• Don’t assume they are highly engaged (HBR
May 2010)
– 1:3 admits to not putting all effort into job
– 1:4 believes he will be working for another
employer in a year
– 1:5 believes personal aspirations differ from orgs
plans for them
– 70% of high performers lack what it takes for
future success, though they can win now (skills,
engagement, aspiration)
Engaging Top Performers
• Opportunities to advance
• Most engaged when guided by organisation
vision, values, strategy –top team lead by
example
• Ethics-personal achievement, growth, greater
purpose, act with integrity
• Leadership – organisation well managed,
management style encourages employees to give
of their best
• Ability of organisation to compete: resources, fast
decisions, prioritise work, organisational support
Therefore...
• Communicate and model clear vision and
values
• Seek opinions on improving competition e.g.
Innovation and involve in solutions
• Provide support and resources
• Improve manage capability including people
management skills
• Emphasise career progression and personal
growth.
Options to improve overall employee
engagement
• Measure employee attitudes to inform priority actions
–and act. Understand and focus on what is most
important to employees – orgs rely on commitment.
Prioritise engagement actions to avoid distractions,
wasted effort.
• Focus on identifying and retaining top talent (at all
levels) who will drive business success –plan for their
retention.
• Spend pay pot wisely –target high performance, deal
with anomalies, ensure performance infrastructure is
robust enough to differentiate appropriately,
communicate value of benefits.
Options to improve engagement 2
• Recognise and reward exceptional performance
beyond pay – recognition programmes, career
development opportunities, performance
conversations, mentoring opportunities.
• Enable people to perform well
– Fair pay, conditions, management processes, skilled
ethical leaders
– Autonomy, support, coaching, feedback
– Opportunity to use skills, develop job and learn,
quality work and variety are important. Lack of role
clarity can lead to inefficiency and frustration,
Resources, workloads.
Options to improve engagement 3
• Re-engage with staff-especially if damage done to
community spirit. Provide opportunities to feed
views upwards and for managers to listen. Keep
informed.
• Lateral communications too. Proactive
management and communication of employee
value proposition –role of line managers.
• Show org. is concerned for health, well-being,
work-life balance. Culture of mutual respect –
dignity, value differences, involve in decisions,
team, common goals.
National Results: UK
• UK 2011 survey (N. Murphy (2011) Employee Engagement Survey 2011:
increased awareness but falling levels. IRS Employment Review 28
November. 12 pp)
– More women than men are engaged with their work
– Younger workers are less engaged than older workers
– Managers are more engaged than non-managers
– Those on flexible contracts are more engaged than those who are not
– Private sector employees are more engaged affectively-feeling positive
about doing a good job- while public sector workers show higher levels
of social and intellectual engagement –thinking hard about how to do
job better and actively taking opportunities to discuss work-related
improvements with others at work.
• In 2013 voluntary sector are most engaged: purpose, honesty, trust.
National Results UK 2013
• Published May 2013: 2012 Skills and Employment Survey
• UK worker insecurity at 20 year high
• For first time, public sector more worried than private sector
about losing jobs and status
• Working harder, faster, to tighter deadlines, especially for
women, due to tech change not downsizing. More content
when involved in decisions. Control.
• CIPD /Halogen Outlook October 2013: After years of
stagnation talent is on the move again; 1 in 4 seeking new
opportunities. Progression opportunities; engagement levels;
performance management; less recruitment freezes.
Luxembourg Results 2012: 1,065
executive employees surveyed
• How your organisation in Luxembourg shows
respect for its employees is the number one
retention driver for your professional talent.
• Diversity of Luxembourg workforce more
important to junior executives and a more
potent retention element for females.
• Having impressive offices is the lowest ranking
talent attraction and retention initiative of 58.
Luxembourg Results 2012 – Part 2
• Reputation of your senior leadership team is a
key retention factor for your functional Heads.
• Your leadership team remaining calm under
pressure is an important aspect in decision to
stay for employees at all levels.
• For all functions, but for HR in particular, the
person to whom your executives report is
highly influential in retention.
Luxembourg Results –Part 3
• Your org’s approach to ethics is of significantly higher
retention value to female talent. Approach to
environmental and corporate social responsibilities has
a higher retention value to low and midlevel
employees.
• Employees and candidates for Director roles see org’s
rate of growth as being of high importance when
engaging with your company.
• 5 females to each male in HR in Luxembourg –retain
their talent through a culture of intrapreneurship, your
informal working environment and your org’s
reputation with your customers.
Luxembourg Results-Part 4
• Knowledge workers, living outside Duchy often,
multilingual, highly educated, mobile = retention an issue.
• Overall salary is the number one retention factor, and how
the organisation shows respect for its employees is the
number one determinant of their decision to stay..
• Being able to make a connection between role content and
personal interests is the top factor under the heading
internal perspective of the organisation, including person’s
own role.
• Employee recognition and the person to whom the
respondent reports are joint second.
• Quality of an organisation’s talent is key.
Global Drivers: Aon Hewitt 2013
• Career Opportunities
• Reputation
• Communications and performance
management
• Pay
Across Europe: Aon Hewitt 2013
• Top 5 drivers: career opportunities; organisational
reputation; open to new ideas, communication, recognition
• Yet, less than half of employees surveyed felt they had
advancement opportunities
• Substantial differences in engagement by generation:
Millennials (1979 on) want higher and more individual
rewards
• Influence of pay has risen: impact of cutbacks. Employees
more mercenary when job opportunities open up for
higher pay?
• Reduced retirement security and changing demographics
may be eroding company loyalty.
Last Thoughts 1
• Engagement differs by individual, team,
company, sector, country so find out what are
key drivers in your company, then focus on the
most important
• Connect why working with you creates value
and back with rewards and work experience
that are difficult to replicate. Man on the
moon? Communicate consistently at all levels.
• Recognise extra efforts – no cost!
Last Thoughts 2
• Careers matter: Line managers need to communicate
clear career paths, lateral growth opportunities and
prepare for next step
• Manage performance: what employees should be
engaged in
• Get the basics right: Fair pay, a sense of
enjoyment/achievement; safety; diversity
• Future Trend: Recruiting employees predisposed to
engagement (positive, conscientious) and managers
with skills to engage teams. For now: build a culture of
engagement, embed and hold people accountable for
it.
Further reading?
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“Employee Engagement: a review of current thinking.” Robertson-Smith and
Markwick. (2009). Institute for Employment Studies.
“The power of small wins.” Amabile and Kramer (May 2011). HBR.
“Engaged –unleashing your organisation’s potential through employee
engagement” Holbeche, Matthews. (April 2012) Wiley.
“Considering the source: the impact of leadership level on follower motivation
and intent to stay” . Basford, Offermann, Wirtz . (May 2012) Journal of
Leadership and Organisation Studies.
“Emotional or transactional engagement-does it matter?” CIPD (May 2012)
“How to keep your most talented people –what matters in your employee
retention –Luxembourg Report” . (June 2012) HRM Recruit.
“ 2012 Trends in Global Employee Engagement”. (May 2012) Aon Hewitt.
“Trust: the key to building well-being and performance in the workplace”. CIPD
(Susanne Jacobs) & Unum (July, 2013) (see next slide).
Learn and Challenge
Significance and Position
Belong and Connect Fairness
Purpose
Voice and Recognition
Security and Certainty
Choice and Autonomy
Supportive Workplace+
Resilience/Wellbeing
Questions?