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Employee engagement Igniting passion through purpose, participation & progress Dr Louise Parkes e: [email protected] p: +61 2 8875 2803 Infosys HR Networking Breakfast Sydney, 2 nd March 2011

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Page 1: Employee engagement - Voice Project Parkes... · who is voice project? ... motivation & initiative ... Comparing drivers of employee engagement in commercial and not-for-profit organisations

Employee engagement –Igniting passion through

purpose, participation & progress

Dr Louise Parkes

e: [email protected] p: +61 2 8875 2803

Infosys HR Networking Breakfast

Sydney, 2nd March 2011

Page 2: Employee engagement - Voice Project Parkes... · who is voice project? ... motivation & initiative ... Comparing drivers of employee engagement in commercial and not-for-profit organisations

who is voice project?

• Voice Project specialises in surveying engagement,

leadership and service quality

• We have grown out of a research programme at

Macquarie University and our team of 17 people are

based on campus at Macquarie University

• We have now completed 420 surveying projects across

180 clients, collected benchmarking data from over 2,500

organisations, and “given a voice” to over 500,000

employees and clients

2|

Page 3: Employee engagement - Voice Project Parkes... · who is voice project? ... motivation & initiative ... Comparing drivers of employee engagement in commercial and not-for-profit organisations

• Engagement

• What is it? Why does it matter?

• Drivers of Engagement

• Purpose

• Participation

• Progress

• The Ps in practice

agenda

3|

Page 4: Employee engagement - Voice Project Parkes... · who is voice project? ... motivation & initiative ... Comparing drivers of employee engagement in commercial and not-for-profit organisations

understanding employee engagement

• What does it mean to you?

4|

in-role

behaviour

job

satisfaction

citizenship

behaviours

dedicationabsorption

vigour

organisation

commitment

proactivity

adaptivity

discretionary

effort

intention to

staypositive

affectivity

Page 5: Employee engagement - Voice Project Parkes... · who is voice project? ... motivation & initiative ... Comparing drivers of employee engagement in commercial and not-for-profit organisations

Strongest

predictors of

organisation

performance

See Langford, P. H. (2010). The nature and

consequences of employee engagement:

Searching for a measure that maximizes the

prediction of organisational outcomes, in

Albrecht, S. (Ed.) “Handbook of Employee

Engagement”. London: Edward Elgar

Publishing.

5|

Job Satisfaction

Positive Affectivity

Absorption

Dedication

VigourIntention To

StayOrganisation

Commitment

Citizenship

Behaviours Towards

Organisation

Citizenship

Behaviours Towards

Individuals

In-Role

Behaviours

Adaptivity

Discretionary

Effort

Proactivity

JOB SATISFACTION

PROFICIENCY

ATTITUDES

BEHAVIOURS

EM

PL

OY

EE

EN

GA

GE

ME

NT

Page 6: Employee engagement - Voice Project Parkes... · who is voice project? ... motivation & initiative ... Comparing drivers of employee engagement in commercial and not-for-profit organisations

consequences of engagement

• Our research shows 5% higher employee

engagement is associated with:

• 1.5% lower employee turnover; for a 1000-

person organisation that’s 15 fewer people

leaving per year, and $1m lower turnover costs

for the organisation per year

• 2.5% higher productivity; $2500 higher

productivity per person per year; for a 1000

person organisation that’s $2.5m higher

productivity for the organisation per year

• Even if you achieved no other gains (eg, safety,

absenteeism, workers comp, reduced fraud &

risk, customer loyalty, innovation), that’s

a benefit of $3,500 per employee per year

6|

Assumptions behind above calculations: Average salary A$66K; turnover costs 100% of salary;

SD of productivity = 32% of mean output (Schmidt & Hunter, 1998); mean output per employee

of A$100K; correlation of .31 between engagement and productivity; correlation of .27 between

engagement and turnover (means of Voice Project’s observed correlations).

Page 7: Employee engagement - Voice Project Parkes... · who is voice project? ... motivation & initiative ... Comparing drivers of employee engagement in commercial and not-for-profit organisations

rewards?

work-life

balance?

my

career?

7|

drivers of engagement?

Page 8: Employee engagement - Voice Project Parkes... · who is voice project? ... motivation & initiative ... Comparing drivers of employee engagement in commercial and not-for-profit organisations

engagement

model

purpose• organisation

direction

• results focus• mission &

values• ethics• role clarity

• diversity

participation• leadership• recruitment

• cross-unit cooperation

• learning & development

• involvement

• reward & recognition

• appraisal• supervision• career

opportunities

people• motivation &

initiative

• talent• teamwork

passion/engagement• organisation commitment• job satisfaction

• intention to stay

progress• organisation objectives• change & innovation

• customer satisfaction

property• resources• processes

• technology• safety

• facilities

peace• wellness• work-life balance

• flexibility

DR

IVE

RS

OU

TC

OM

ES

Based on Langford, P. H. (2009). Measuring

organisational climate and employee

engagement: Evidence for a 7 Ps model of

work practices and outcomes. Australian

Journal of Psychology, 61, 185-198.

8|

Page 9: Employee engagement - Voice Project Parkes... · who is voice project? ... motivation & initiative ... Comparing drivers of employee engagement in commercial and not-for-profit organisations

purposeorganisation direction

results focus

mission & values

ethics

role clarity

diversity

participationleadership

recruitment

cross-unit cooperation

learning & development

involvement

reward & recognition

appraisal

supervision

career opportunitiespassion /

engagementorganisation commitment

job satisfaction

intention to stay

progressorganisation objectives

change & innovation

customer satisfaction

believe,

belong &

achieve

Based on Langford, P. H., Parkes, L.

P., & Metcalf, L. (2006). Developing a

structural equation model of

organisational performance and

employee engagement. Proceedings of

the joint conference of the Australian

Psychological Society and the New

Zealand Psychological Society,

Auckland, New Zealand.9|

Page 11: Employee engagement - Voice Project Parkes... · who is voice project? ... motivation & initiative ... Comparing drivers of employee engagement in commercial and not-for-profit organisations

purposeorganisation direction

results focus

mission & values

ethics

role clarity

diversity

passion /

engagementorganisation commitment

job satisfaction

intention to stay

“I believe in the

purpose, work

and values of

this

organisation”

Parkes & Langford (2008) Work-life balance or work-life alignment? A

test of the importance of work-life balance for employee engagement

and intention to stay in organisations. Journal of Management &

Organisation 14 (3) 267-284

strongest driving

practice

11|

Page 12: Employee engagement - Voice Project Parkes... · who is voice project? ... motivation & initiative ... Comparing drivers of employee engagement in commercial and not-for-profit organisations

• Approx 10 employees from 53 NFP and

53 for-profit organisations, 1159

respondents, 2004-2006

• Key drivers of passion are the same

across sectors:

• Purpose, Participation & Progress

• Mission & Values, Change and Innovation,

Career Opportunities & Involvement

• Not the money - rewards less important

for engaging employees in NFPs

NFP versus corporate organisations?

Parkes, L. P. & Langford, P. H. (2006). Money or the Mission?

Comparing drivers of employee engagement in commercial and

not-for-profit organisations. Proceedings of the Australian and

New Zealand Academy of Management Conference, Yeppoon,

QLD.

12|

Page 13: Employee engagement - Voice Project Parkes... · who is voice project? ... motivation & initiative ... Comparing drivers of employee engagement in commercial and not-for-profit organisations

a higher purpose?

• “This organisation has a positive impact on society & the

community”

• “This organisation plays a role in society that goes beyond the

mere generation of profits”

• 2008: 3079 employees in 302 organisational units

• 79% commercial

• 14% gov

• 7% NFP

1

1.5

2

2.5

3

3.5

4

4.5

5

Low High

Belief in Mission & Values

Passio

nHigh Soc Resp

Low Soc Resp

13|

Parkes (2010) Purpose and passion:

Why are organisation mission & values

so important for employee engagement?

27th International Congress of Applied

Psychology. Melbourne, Australia.

Page 14: Employee engagement - Voice Project Parkes... · who is voice project? ... motivation & initiative ... Comparing drivers of employee engagement in commercial and not-for-profit organisations

all types of staff?

1. achieving organisation

objectives (.59)

2. mission & values (.57)

3. change & innovation (.53)

4. leadership (.53)

5. career opportunities (.52)

1. role clarity (.51)

2. career opportunities (.51)

3. achieving organisation

objectives (.51)

4. mission & values (.48)

5. rewards & recognition (.47)

8 universities

5564 academic staff 8388 general/professional staff

14|

Page 15: Employee engagement - Voice Project Parkes... · who is voice project? ... motivation & initiative ... Comparing drivers of employee engagement in commercial and not-for-profit organisations

• Even in Australia

• Even in commercial corporations

• Regardless of the ‘nobility’ of the cause

• In both ‘delivery’ and ‘support’ staff

purpose fires people up!

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Page 16: Employee engagement - Voice Project Parkes... · who is voice project? ... motivation & initiative ... Comparing drivers of employee engagement in commercial and not-for-profit organisations

• What is the purpose of your organisation?

• What are your core values?

• How strongly do you agree with those purpose and values?

• How many staff in your organisation could recall your

mission/vision/values? _____ %

• How many staff would strongly endorse them? ______ %

your experience...

strongly

agree

strongly

disagree 1 5 10

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Page 17: Employee engagement - Voice Project Parkes... · who is voice project? ... motivation & initiative ... Comparing drivers of employee engagement in commercial and not-for-profit organisations

purposeorganisation direction

results focus

mission & values

role clarity

ethics & diversity

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purpose in practice

Page 18: Employee engagement - Voice Project Parkes... · who is voice project? ... motivation & initiative ... Comparing drivers of employee engagement in commercial and not-for-profit organisations

“Building a visionary

company requires

1% vision and 99%

alignment”

Collins & Porras

(1996) HBR

purpose• organisation

direction

• results focus• mission &

values• ethics• role clarity

• diversity

participation• leadership• recruitment

• cross-unit cooperation

• learning & development

• involvement

• reward & recognition

• appraisal• supervision• career

opportunities

people• motivation &

initiative

• talent• teamwork

passion/engagement• organisation commitment• job satisfaction

• intention to stay

progress• organisation objectives• change & innovation

• customer satisfaction

property• resources• processes

• technology• safety

• facilities

peace• wellness• work-life balance

• flexibility

DR

IVE

RS

OU

TC

OM

ES

alignment

decisions, processes,

way people managed

consistent with

values?

alignment

decisions, processes, way

people managed

consistent with values?

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Page 19: Employee engagement - Voice Project Parkes... · who is voice project? ... motivation & initiative ... Comparing drivers of employee engagement in commercial and not-for-profit organisations

drivers & gaps for engagement

Results Focus

Work/Life Balance

SupervisionTalent

Ethics

ResourcesFlexibility

Cross-Unit CooperationInvolvement

Career Opportunities

Entrepreneurship

Teamwork

Diversity

Role Clarity

Mission & Values

SafetyWellness

Motivation &

Initiative

Workload Organisation DirectionProcesses

Recruitment & Selection

Facilities Leadership

TechnologyLearning &

Development

Performance Appraisal

Rewards & Recognition

Middle ManagementResearch

Teaching

Community

Engagement

importance

pe

rfo

rma

nc

e

higherlower

low

er

hig

he

r

improving

legend:

maintain

prioritise

Gap

analysis

based on

over

100,000

employees

across

more than

2,000 of

Voice

Project’s

research &

consulting

clientsEnvironmental

Responsibility

Social Responsibility

19

See Mingo, S., & Langford, P. H. (2008). The HRM-Performance Link: A Longitudinal, Business-Unit Investigation.

Proceedings of the 22nd Annual Conference of the Australian and New Zealand Academy of Management, Auckland,

New Zealand, December. |

promote

limit

Page 20: Employee engagement - Voice Project Parkes... · who is voice project? ... motivation & initiative ... Comparing drivers of employee engagement in commercial and not-for-profit organisations

Levels of Trust in Co-Workers and Management

(% Favourable)

57%

61%

70%

74%

90%

40% 50% 60% 70% 80% 90% 100%

Senior Executives

Senior Managers

Middle Managers

Supervisors

Co-workers

Low High

20|

participation: trust in leadership

Impact .53

Impact .50

Impact .42

Impact .35

Impact .35

Page 21: Employee engagement - Voice Project Parkes... · who is voice project? ... motivation & initiative ... Comparing drivers of employee engagement in commercial and not-for-profit organisations

• Demonstrate trust in employees

• Increase visibility and accessibility

• Communicate common identity

• Role model integrity and fairness

• Create a supportive workplace

21|

participation: trust in leadership

Page 22: Employee engagement - Voice Project Parkes... · who is voice project? ... motivation & initiative ... Comparing drivers of employee engagement in commercial and not-for-profit organisations

• Empower employees for decision-making

• Guide through clear organisation direction

• Consult and communicate on change

• Educate and train managers

• Create processes for evaluation and feedback

22|

participation: involvement

Page 23: Employee engagement - Voice Project Parkes... · who is voice project? ... motivation & initiative ... Comparing drivers of employee engagement in commercial and not-for-profit organisations

• Communicate goal progress and achievement

• Champion continuous improvement

• Provide a product/service that staff are proud of

23|

progress leading passion

Page 24: Employee engagement - Voice Project Parkes... · who is voice project? ... motivation & initiative ... Comparing drivers of employee engagement in commercial and not-for-profit organisations

questions for discussion

1. Do you have an engaging purpose that is clearly articulated throughout your organisation?

2. How do you measure progress against your core purpose and toward your vision?

3. Do you recruit people based on their beliefs and values?

4. How do you reinforce the connection between job roles and organisation purpose for your

support staff?

5. How do you measure alignment of your systems, practices, processes and people with

your purpose and values?

6. How have you seen leaders most effectively build trust and communication?

7. Is change in your organisation driven top-down by management, or bottom-up by

passionate employees? Why do you think this is?

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