employee engagement is a competency...• when an employee’s perception of their manager is...

Employee Engagement is a Competency

NHRMA Annual Conference, Portland, Oregon

October 9, 2019Matthew WridePresident

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A Little About Me

x

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HR…

A big thank you!

It’s Not Easy!

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Today’s Agenda

• Why does Employee Engagement matter?

• What is Employee Engagement and How is it Related to the Employee Experience?

• How do we teach this stuff to leaders?

• What is the ROI?

• EX=CX!

To create a world-class customer (patient or student)

experience, organizations must first create a superlative

Employee Experience (EX).

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EX vs. Employee Engagement

The Employee Experience (EX) is purpose-built culture that supports the organization’s unique workforce and mission. Culture is the “way things work,” but instead of letting that process happen organically, leadership acts to deliberately design the experience they need and want for their employees (i.e., employ design thinking).

Employee Engagement is an emotional state where employees feel passionate, energetic and committed to their work. When employees are engaged, they invest more of themselves in their work. They choose to give discretionary effort.

CAUSE EFFECT

Culture enables employees to act autonomously and causes them to

act consistently.

Clayton Christensen –The Innovator’s Dilemma

A purpose-built Employee Experience enables employees to act autonomously and causes them to act consistently in

alignment with their Organization’s values.

This, in turn, builds Employee Engagement, which means that desirable actions are

more frequent, more effective, and more valuable.

A Short History Lesson

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Battle of TrebiaBattle of Cannae

Hannibal Barca, Born 247 BCE, Carthage

• Carthaginian 247-181BC

• Sworn Enemy to Rome

• General 2nd Punic War

• Famous for Elephants

• One of history’s greatest strategists

• A success or a failure?

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Hannibal was incredible at military strategy, but he did not have a vision of how to win the War!

Hannibal did not know what victory looked like.

Scipio Africanus

What does work look like today?

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20th Century business was based on four fundamentals

• Product • Price • Sales & Marketing• Distribution

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What’s missing?

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The Age of the Employee!

The Manager’s Role?

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• Managers organize the enterprise’s efforts as they relate to the manager’s sphere of control.• They help move material, intellectual property, services,

etc., through time and space to create value for the customer (the value stream).

• Managers organize the people they lead in order to deliver value through the value stream to the customer.• Get the right people doing the right things.

• Managers lead, serve, and inspire those they lead. • They make employees better so the value stream is

more efficient.

A Manager’s Work (at its core)

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Q: How much time is actually spent on the third bullet point (making their team better)?

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What is the one thing employees want most?

They want a productive relationship with their

manager and with their coworkers!

Where do we find employee engagement?

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Managers matter to employee engagement. Here’s why:

• When a manager’s engagement score increases by just one point, we see a 213%

increase in the odds of their direct reports being engaged.

• When a manager is fully engaged, we find 87% more than the typical number of fully

engaged direct reports.

• When a manager is fully disengaged, we find 75% more than the typical number of

fully disengaged direct reports.

• When an employee’s perception of their manager is positive, the likelihood of finding

fully engaged employees on the manager’s team increases by 71%.

• When an employee’s perception of their manager is negative, we find over eight

times (8x) the typical number of fully disengaged employees.

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EX/Engagement Framework

Organizational Alignment“The Levers”

50/50 Proposition“The Invitation”

Engagement“The Outcome”

Leadership Excellence

Organizational Support

Managers & Teams

Fully Engaged

The executive team shapes the mission and

vision of the organization. They set

strategy and goals. They make policy decisions that influence EX. Their attitudes and behaviors shape the culture of the

organization.

Organizational support structures include

organizational communication

systems, incentives, L&D programs,

organizational design, lifecycle processes.

Much of the employee experience is shaped directly at the team

level. The manager’s competence, attitudes, and behaviors shape

the culture and experience of the

team.

Key Contributor

Opportunity Group

Fully Disengaged

Employee Experience

Employee Choice

+ + =

Edge of Org Influence

Surveys & Analytics

Employee Engagement is a Competency!

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Engagement vs. Satisfaction

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I’m part of a team building the world’s

largest indoor coliseum!

MEANING: The work has purpose beyond the job itself!

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AUTONOMY: The power to shape one’s work and environment in ways

that allow them to perform at their best!

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GROWTH: Being stretched and challenged in ways that result in personal and professional progress!

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IMPACT: Seeing positive and worthwhile results from the work one does!

https://www.youtube.com/watch?v=JjEyKKn3S7s

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CONNECTION: The sense of belonging to something beyond the individual!

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+

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Measurement

Commitment

Management

Integration

MasterySwitch in ownership from HR to Leadership

Switch in focus from the tool to experience

Shift to accountability

A Typical Engagement Maturity Continuum

A competency model for leading with engagement.

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Key Assumptions

1. Manager’s Sphere of Control - Many factors contribute to the creation of an engaging work environment. We should focus on those factors under the direct control of the manager.

2. Immediate Team - While the positive impact of an engaging leader will be felt throughout the organization, we are primarily focused on their ability to directly impact their immediate teams.

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Creating Vision

Me

an

ing

Value Alignment

Strategic Perspective

Inspiring Others

M

MMeaning

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Me

an

ing

ValueAlignment

• Actions demonstrate and align with company values

• Includes company values in team discussions

• Helps to align employee personal values with the mission of the

organization

InspiringOthers

• Paints a compelling vision of the future for the organization; shares the

vision of the company in a way that is accessible to all

• Sets goals and objectives that challenge and excite the team

• Inspires in others a sense of purpose for the work we do


• Drives strategic actions that reflect the vision of the organization

• Sees ahead clearly; Anticipates key changes affecting our organization

and industry

• Demonstrates broad knowledge and perspective - thinking globally

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Creating Structural Autonomy

Au

ton

om

y

Empowerment Accountability

A Delegation

A

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Au

ton

om

yDelegation

• Delegates both routine and critical tasks

• Demonstrates a sense of trust that others will perform their jobs well

• Allows subordinates to both own and complete their work

Accountability

• Sets clear expectations for performance

• Holds people accountable for results

• Promotes personal ownership of outcomes

Empowerment

• Empowers others with the resources and authority they need to

succeed

• Encourages individuality of team members

• Celebrates examples of people taking initiative

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Succession Planning

Gro

wth

StrengtheningPerformance

Investing in Growth

ManagingAmbition

G

GGrowth

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Gro

wth

Strengthening Performance

• Accurately assesses performance

• Provides candid feedback to others in a way that facilitates improvement

• Frames/aligns work activities as growth opportunities

Investing in Growth

• Holds frequent development discussions with direct reports

• Seeks to understand career development goals of team members

• Provides challenging tasks and stretch assignments

Managing Ambition

• Identifies the potential in others

• Sets realistic expectations for career progress and potential

• Helps employees see and live up to their full potential

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Cascading Goals

Imp

act

Valuing Contribution

Customer Focus

Personalizing Impact

I

IImpact

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Imp

act


• Regularly recognizes and shows appreciation for the contributions

others make

• Uses accurate and consistent measures for success

• Celebrates the accomplishments of the team

Customer Focus

• Demonstrates a clear understanding of the needs of the customer

(internal and/or external)

• Sets high standards of excellence for serving customers

• Aligns individual effort to the impact on the customer

PersonalizingImpact

• Helps others understand how their work contributes to the

organization's success

• Looks for opportunities to showcase the talents and work of others

• Helps all team members feel their work is important

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Caring

Co

nn

ect

ion

Building Relationships

Teamwork & Collaboration

Cultivating Culture

C

CConnection

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Co

nn

ect

ion


• Accurately reads and interprets the emotions of others

• Builds rapport with all types and kinds of people

• Shows concern about the personal and professional well being of team

members


• Creates a sense of belonging among team members

• Facilitates teamwork and communication across functions, divisions,

and/or departments

• Looks for solutions where all parties benefit

Cultivating Culture

• Creates an environment of openness and cooperation

• Promotes a culture where all team members feel safe to contribute

• Aligns workplace elements/variables (process, structure, rewards,

physical environment) to support a healthy culture.

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Fundamental Competencies

• Some competencies do not specifically tie to any one MAGIC key

• These competencies tend to span all MAGIC competencies

• We might look at these as fundamental competencies that need to be in place for all the others to work

MAGIC Competencies

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• Is honest, ethical, and trustworthy• Can be counted on to deliver promised results• Treats all employees with fairness and respect

• Presents information in a way that makes it safe for others to listen and respond• Practices attentive and active listening; even when he/she disagrees• Provides the information people need to know to do their jobs effectively

• Effectively deals with challenges or setbacks without becoming cynical, moody, or hostile• Recognizes when an employee is overloaded and/or close to burnout• Helps team members maintain a balance between work and personal life

• Conveys the sense that he/she enjoys his/her job• Shows an appropriate degree of energy or enthusiasm for his/her job• Shows dedication to his/her job and the organization

Communication

Trust

Managing Stress

Personal EngagementFun

da

me

nta

l Co

mp

ete

nci

es

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Objectives:

• Increase organizational success through manager effectiveness

• Build engaged leaders who lead engaged employees in engaged organizations

• Help organizations build internal employee engagement capability

• Create a consistent Employee Experience across teams

• Provide clarity and accountability in improving employee engagement

• Drive employee engagement via an organization’s leadership structure

MAGIC Competencies

Executive Leader Competencies

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One of the purposes of the competency model is to provide a common language across the organization about the behaviors that drive engagement.

In order to create a common language, MAGIC competencies apply across all levels of leadership. That being said, there are a few additional competencies that apply specifically to executive leaders.

Executive Leader Competencies

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EARNINGS PER SHARE & TURNOVER

Companies with highly engaged employees have earnings-per-share levels 2.6 x higher than companies with low engagement scores.*Organizations in the bottom quartile of engagement scores experience 41% higher turnover.*

NET INCOME AND SHAREHOLDER RETURN

Companies with highly engaged employees experience 2x higher net income than companies with poor engagement scores. Organizations with highly engaged employees experience a 7x-greater, 5-year total annual shareholder return than organizations with less-engaged employees.**

*Gallup**IBM Kenexa

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OPERATING INCOME

In research prepared for the UK government (Engaging for Success: enhancing performance through employee engagement), David MacLeod and Nita Clarke found the following correlations to employee engagement: Companies with low engagement scores earn an operating income 32.7 percent lower than companies with more engaged employees. Similarly, companies with a highly engaged workforce experience a 19.2 percent growth in operating income over a 12-month period.

PROFITABILITY & ATTRITION

The Corporate Leadership Council studied the engagement level of 50,000 employees around the world to determine its direct impact on both employee performance and retention. Here are two important findings: Engaged companies grow profits as much as 3X faster than their competitors. Highly engaged employees are 87 percent less likely to leave the organization.

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CUSTOMER LOYALTY, PRODUCTIVITY, AND TURNOVER

In an article published by Jonathan Pont, the most-engaged workplaces experienced the following performance metrics:

• 2X higher customer loyalty• 2X higher productivity• 2X lower turnover

COST OF DISENGAGEMENT

McLean & Company found some very compelling correlations: A disengaged employee costs an organization approximately $3,400 for every $10,000 in annual salary. Disengaged employees cost the American economy up to $350 billion per year due to lost productivity.

A cautionary note.

Thank you!

employee engagement is a competency...• when an employee’s perception of their manager is...

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