Session 1 The Foundation of Employee Engagement This page intentionally left blank Working Definition of Engagement Company Performance Employee Engagement Employee Potential Employee Engagement is unlocking your employees’ potential to drive high performance. It’s a mutual commitment resulting in the capture of discretionary effort. Discretionary Effort What does ‘discretionary effort’ look like in your organization? Highly engaged employees are: 480% more committed to helping their company succeed 370% more likely to recommend their company as an employer 250% more likely to recommend improvements What are your employees doing to demonstrate discretionary effort? © The Employee Engagement Group All Rights Reserved 1-1 Session 1 Foundations Employee Engagement Today 2015 Disengagement 67.5% Disengaged 51% Engaged 32.5% Actively Disengaged 16.5% 2.5% Increase since 2013 January 2015 Gallup Report of 80,000 Employee Interviews © The Employee Engagement Group All Rights Reserved 1-2 Session 1 Foundations Employee Engagement at your Organization According to the most recent Gallup study of studies of 192 organizations globally the breakdown of engaged employees is: Engaged – 32.5% (up from 30%) Not engaged – 51% (down from 52%) Actively disengaged – 16.5% (down from 18%) Using the form below: In your best estimate, what percentage of your employees fall into each of the Gallup categories? What are you currently doing to attempt to bring the actively disengaged and not engaged categories into the engaged column? What are you currently doing to keep the engaged employees engaged? Write ideas from other participants – how can you improve each area in ways you hadn’t thought of? Gallup Study Engaged Not Engaged Actively Disengaged 32.5% 51% 16.5% What % would you think each is at your company? Current actions – what are some examples of actions being taken to address each category of employee? Ideas from discussion – what are others doing that you can implement in your organization? © The Employee Engagement Group All Rights Reserved 1-3 Session 1 Foundations Business Case for Engagement ____________________________________________________ “Stuff” vs. Engagement Engagement is not about: Things Having the best of every amenity Avoiding making tough decisions Pleasing all the people all of the time A ‘catch-phrase’ for all HR programs Engagement is about: People Relationships Alignment Shared responsibility for creating business success and a great work environment Continuous communication Opportunities for performers Staff development Employee engagement is NOT a short-term program, employee engagement is a culture! © The Employee Engagement Group All Rights Reserved 1-4 Session 1 Foundations Exercise: Discuss your assigned article and come up with: Key aspects of what you learned from reading the article and how you can apply it to your organization Be prepared to report back 3 - 5 ‘ah-ha’ or ‘I think I’ve heard that…’ information with examples of potential application Use the chart below to note the report back information from each article It’s Not You, It’s me – The Bootstrapper’s Guide to Employee Engagement (Kinexis) Global Human Capital Trends 2015 (Deloitte) Culture and Engagement (pages 35 – 39) Global Human Capital Trends 2015 (Deloitte) Performance Management (pages 51 - 56) Why Engagement Happens in Employees’ Hearts (Fast Company) © The Employee Engagement Group All Rights Reserved 1-5 Session 1 Foundations Key Facts about Employee Engagement Statistic Job Gains and Losses are approaching 2000 levels Source National Job Gains and Losses Andrew Van Dam, Renee Lightner Wall Street Journal, February 2015 Job Openings and Hiring is on the rise; number of employees quitting is decreasing Job Openings and Labor Turnover Survey Bureau of Labor Statistics January 2015 Human Capital Effectiveness Report PwC Saratoga 2012 - 2013 © The Employee Engagement Group All Rights Reserved 1-6 Session 1 Foundations Statistic Employee Engagement Drivers: Satisfaction with immediate supervisor Trust in senior leadership Pride in the organization Source What Drives Employee Engagement Survey of 1,500 global employees Dale Carnegie, 2012 30% of your employees will be looking for a new job in 2015 CareerBuilder.com, 2015 86% of employees will be looking for a new job in 2015 Right Management Poll, 2015 The #1 priority of 3,300 global leaders in 106 countries is employee engagement. Global Human Capital Trends Deloitte, 2015 Less than 40% of companies focus on employee engagement 2013 Survey: Creating a High Performance Work Environment SilkRoad Technologies Engagement by the size of the organization Employee Engagement Insights for US Business Leaders (2013) Gallup Top ways to Foster Engagement: 1. Trust in Management 2. Career development 3. Stimulating work environment 4. Recognition and rewards 5. Flexible work options (e.g., work from home) 6. Learning opportunities 7. Career advancement 8. Salary 9. Good benefits (medical, dental) 10. Mentoring 11. Diversified comp options (e.g., pay) 12. Good pension and retirement plans © The Employee Engagement Group All Rights Reserved 1-7 2013 Survey: Creating a High Performance Work Environment SilkRoad Technologies Session 1 Foundations Statistic Best way to build trust in management 1. Show concern about the well-being of people 2. Demonstrate a high level of integrity 3. Demonstrate competence Source 2013 Employee Engagement Index Scores, Workforce Trends Report (33,000 employees in 28 countries) Kenexa Disengaged managers are 3 times more likely to have disengaged employees Driving Performance and Retention through Employee Engagement (2012) Corporate Leadership Council Bad managers are creating active disengagement costing the U.S. an estimated $450 billion to $550 billion annually. 2013 State of the American Workplace Report (based on 25 million survey respondents) Gallup 35% of U.S. Workers said they’d willingly forgo a substantial pay raise in exchange for seeing their direct supervisor fired. 2012 Employee Poll Disengaged employees cost the U.S. Economy $370 billion annually. Employee Engagement: Every Leader’s Imperative (May, 2013) Parade Magazine Forbes.com Highly engaged employees are 87% less likely to leave their companies than their disengaged counterparts. Employees with lower engagement are 4 times more likely to leave their jobs than those who are highly engaged Only 41% of employees felt that they know what their company stands for and what makes its brand different from its competitors. Driving Performance and Retention through Employee Engagement (2012) Corporate Leadership Council 2013 State of the American Workplace Report (based on 25 million survey respondents) Gallup © The Employee Engagement Group All Rights Reserved 1-8 Session 1 Foundations Statistic Engagement changes by level in the organization: Level Executive (VP and up) Director Team Ldr, PM, Tech Manager/Supervisor Consultant Specialist/Professional Admin/Clerical % engaged 59 41 39 39 33 29 27 % disengaged 9 12 14 12 16 20 21 Organizations that are growing have 43% engaged employees vs. 13% engagement in organizations that are letting employees go Source 2013 Global Employee Engagement Research Update Blessing White 2013 State of the American Workplace Report (based on 25 million survey respondents) Gallup Organizations driven by purpose and values outperformed comparison companies 6X. Research by Jim Collins and Jerry Porras Engagement levels are twice as high (54% vs. 25%) among those who say they are proud of contributions their organization has made to the community Global Statistics and Corporate Social Responsibility Survey Dale Carnegie, 2012 Engaged businesses have: 28% higher revenue per employee 87% greater ability to hire the best people 156% greater ability to develop great leaders 92% greater ability to respond to economic issues 114% greater ability to plan for the future 2013 Market Analysis, Trends and Provider Profiles Bersin Talent Management Systems 28% less downsizing 40% lower turnover of high performing employees 17% lower overall voluntary turnover © The Employee Engagement Group All Rights Reserved 1-9 Session 1 Foundations What Does an Engaged Employee Look Like? Where would you put yourself on the circles below? Where would your staff put themselves? I’m not doing what I really like to do; I’m not sure I’m even good at doing what I’m asked to do I like some of what I’m doing, but doing a lot of things I don’t particularly like doing; I’m not really leveraging my skills © The Employee Engagement Group All Rights Reserved I like most aspects of my job; I believe I’m really skilled in most of what I’m being asked to do 1 - 10 I love what I do. My skills are a perfect match for my position Session 1 Foundations Engagement and Purpose Ideas What are the ‘purpose-driven aspects of your organization? Do you support specific organizations or causes? Who selected those causes? The employees? Leadership? How are causes selected? Cause or organization supported Who suggested the cause and who made the decision to support this cause? What was the process for selecting this cause over the other suggested causes? What ideas have you gotten from other participants? © The Employee Engagement Group All Rights Reserved 1 - 11 Session 1 Foundations Who are your Engagement Change Agents? Using the pre-work you completed, identify those people in your organization that will support developing engagement (these are your Engagement Change Agents). These people are normally the decision makers for corporate change and improvement, i.e., CEO, CFO, EVP, VP, Director, and Department/Division Leaders. Write the name or position of each Engagement Change Agent in the left-hand column then rate each one, low to high, on their: Understanding – how much do you think they understand the concept of engagement and what is required; how much education on engagement will they need? Influence – what is their influence on the organization? What is their level of ability to help you implement a culture of engagement? Low Name Example: Director of Finance Understanding: Influence: | | High | | | | | | | | | | | | | | | | | | _____________________________________________________________________________________________________________ Low Name Understanding: Influence: | | | | | | | | | | | | | | | | Low Name Understanding: Influence: | | Understanding: Influence: | | | | | | | | | | | | | | | | | | Understanding: Influence: | | | | | | | | | | | | | | | | | | Understanding: Influence: | | | | | | | | | | | | | | | | | | Understanding: Influence: 1 - 12 | | | | High | | | | | | | | | | | | | | | | Low Name | | High Low Name | | High Low Name | | High Low Name © The Employee Engagement Group All Rights Reserved | | High | | High | | | | | | | | | | | | | | Session 1 Foundations | | | | Who are your Engagement Adversaries? Using the pre-work you completed, identify those people in your organization that may resist developing engagement (these are your Engagement Adversaries). As with the Engagement Change Agents, these people are also the decision makers for corporate change and improvement, i.e., CEO, CFO, EVP, VP, Director, and Department/Division Leaders. Write the name or position of each Engagement Adversary in the left-hand column then rate each one, low to high, on their: Understanding – how much do you think they understand the concept of engagement and what is required; how much education on engagement will they need? Influence – what is their influence on the organization? What is their level of ability to hinder your efforts to implement a culture of engagement? Low Name Understanding: Influence: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Low Name Understanding: Influence: | | Understanding: Influence: | | Understanding: Influence: | | | | | | | | | | | | | | | | | | Understanding: Influence: | | | | | | | | | | | | | | | | | | Understanding: Influence: 1 - 13 | | | | High | | | | | | | | | | | | | | | | Low Name | | High Low Name | | High Low Name | | High Low Name © The Employee Engagement Group All Rights Reserved | | High | | High | | | | | | | | | | | | | | Session 1 Foundations | | | | Engagement in your Organization Evaluation Thinking about your organization, rate each of the following key engagement components on a scale of 1 – 10: 1 being the lowest rating 10 being the highest rating Key Engagement Component 1. Our Leadership supports making changes necessary to have an engaged culture Rate your organization 1 = lowest, 10 = highest 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1.1 2. We conduct regular surveys to identify how our employees are feeling and thinking 2.1 3. Our organization has a purpose for being in business over and above making money 3.1 4. We use interviewing techniques to identify behaviors and traits of potential employees, not just experience and skills 4.1 5. We listen to our employees’ feedback and take action to implement good ideas 5.1 6. We know why employees want to work for us 6.1 7. Our employees speak highly of our organization; they seem to be proud to be a part of this organization 7.1 8. Our customers / clients speak highly of our organization 8.1 9. We have a process for embracing and managing change within the organization 9.1 10. Our first-line leaders are fully engaged in the business 10.1 11. Our first-line leaders represent leadership in a positive manner to employees 11.1 12. We have a structured process for communicating important information to all employees 12.1 13. We proactively use social media tools to communicate with our employees, e.g., Twitter, Yammer, and Facebook 13.1 14. We teach managers how to work with people from different generations, especially Generation Y 14.1 15. We teach managers how to interview candidates for jobs 15.1 16. We have a culture that encourages innovation 16.1 17. We have an established structure for collecting employee ideas for making improvements to what we do 17.1 © The Employee Engagement Group All Rights Reserved 1 - 14 Session 1 Foundations Engagement in your Organization Evaluation (continued) Key Engagement Component 18. Our managers create a culture that motivates employees to do their best Rate your organization 1 = lowest, 10 = highest 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 18.1 19. We have an effective process to measure employee performance on an ongoing basis 19.1 20. Our employees go the extra mile without being asked 20.1 21. Health, welfare, and safety is a priority in our environment and culture 21.1 22. Employee retention is a key business measurement 22.1 23. We have a structured reward and recognition process that is practiced by all managers 23.1 24. Our employees are compensated fairly for what they do 24.1 25. Our employees (managers and staff) are key players in the selection of new staff 25.1 26. Recognizing the diverse nature of our employees is important to the organization 26.1 27. We have an effective system for measuring employee performance 27.1 28. Customers/clients feedback is collected and evaluated on an ongoing basis 28.1 29. Employee Engagement is a key topic during high level corporate review meetings 29.1 30. Voluntary turnover has minimum impact on our business Note: the smaller the impact of turnover, the higher you should rate 30.1 Based on your answers, write or highlight the 3 – 5 areas that you think, if improved in your organization, would cause engagement levels would increase. © The Employee Engagement Group All Rights Reserved 1 - 15 Session 1 Foundations © The Employee Engagement Group All Rights Reserved 1 - 16 Session 1 Foundations Engagement Action Plan and Session 2 Pre-work © The Employee Engagement Group All Rights Reserved Session 1 Foundations This page intentionally left blank © The Employee Engagement Group All Rights Reserved Session 1 Foundations Engagement Action Plan 1. What are the key business drivers of engagement you want to share with your senior leadership to help them understand the benefits of implementing an engagement culture? 2. From our discussion of Purpose, what are 3 ideas that might help your organization improve its focus on purpose? Review your notes on what others have done and be prepared to ask individuals for more clarification. 3. Based on your Engagement Organization Evaluation, what are 3 – 5 areas that, if improved, would increase your engagement levels? In the right-hand column, write actions you could take to begin the improvement process. Improvement Area Actions to Make Improvements © The Employee Engagement Group All Rights Reserved 1 Use additional pages if needed Please finish all sections and be prepared to discuss during Session 2 Session 1 Action Plan Engagement Action Plan (continued) 4. Using the information from Session 1 and what you noted on page 1 of this document, meet with at 2-3 senior leaders and discuss engagement. Take notes about your discussion below. What specifically did you talk about? What went well? What are your challenges? 5. Think about the key EA you listed in your workbook. Create a strategy for each that will help you to influence them to support the engagement culture. EA Strategy © The Employee Engagement Group All Rights Reserved 2 Use additional pages if needed Please finish all sections and be prepared to discuss during Session 2 Session 1 Action Plan Session 2 Pre-work 1. Identify tools you have used in your organization to gather information for determining engagement levels and the pros and cons of using each Tool for Measuring Engagement Pros Cons Engagement Survey Pulse Survey Town Hall Meeting Team Meetings Committees 1 on 1 Employee Meetings Suggestion Boxes Other 2. Read the articles posted on your Specialist web site. © The Employee Engagement Group All Rights Reserved 1 Session 2 Pre-work Use additional pages if needed Please complete as much as possible and be prepared to discuss during Session 2