Employee Engagement

Where Have We Been?

Where are We Going?

2© 2015 Sirota Consulting LLC

4 Important Numbers

16%

Difference in stock performance of a highly engaged company vs. their matched comparisons

25 years

…since the term “employee engagement” was coined

6,632 Employee engagement related books on Amazon.com

1 in 5

Proportion of de-motivated people in the workplace

3© 2015 Sirota Consulting LLC

Sirota’s Background

Founded in 1972

We survey 1-1.5 million employees every year in companies like these:

We help companies find people solutions to business challenges

Today I want to talk about…

The Rise of Engagement

What have we learnt?

What’s happening next?

Assessment Analysis Action

4© 2015 Sirota Consulting LLC

We’re Living in the Era of Employee Engagement

Top Challenge for CEOs

Human Capital: Attracting, retaining, engaging employees*

*Source: The Conference Board’s 2014 CEO Challenge Survey of over 700 CEOs

An Abundance of Advice Exists

6,632 employee engagement related books on Amazon.com

Spending is on the Rise

In the US, Employers are investing $720 million annually on Engagement Programs**

**Employee Engagement: Market Review, Buyer’s Guide and Provider Profiles, Bersin by Deloitte 2012

5© 2015 Sirota Consulting LLC

18th Century 19th Century 20th Century 21st Century

IndustrialAge

Efficiency

KnowledgeAge

Analysis&

Computing

ConceptualAge

Synthesis&

Sense making

AgriculturalAge

Manpower

ServiceAge

Connection&

Empathy

Adapted from Daniel Pink’s Whole New Mind

Perhaps because Engagement speaks to our challenges

Volatility

Uncertainty

Complexity

Ambiguity

6© 2015 Sirota Consulting LLC

How are employees responding?

2009 2010 2011 2012 201350

60

70

5256

6160

65

My Manager Does a Good Job Managing Poor Performers

2009 2010 2011 2012 201335

50

65

3948

51 53

63

There is Little Wasted Time and Effort in my Organization

2009 2010 2011 2012 201368

73

78

73

7675

71

72

Rate XYZ on Having a Clear Sense of Direction

2009 2010 2011 2012 201345

55

65 6358

5053 53

We Retain Good Quality People

7© 2015 Sirota Consulting LLC

So what have we learnt over the last 25 years?

About performance?

About leadership?

About managers?

About employees?

8© 2015 Sirota Consulting LLC

First, we know engagement is important for performanceAbout

performance?

Efficiency

Innovation

Customer Service

Sales Performance

Turnover

Team Performance

Stock Prices

Employees’ satisfaction ratings explained 22% of the difference in turnover.

Customer focused retail stores demonstrated a 10% greater year over year sales increase.

Stock prices in high morale companies increased 16% in one year. Low morale companies only increased 3% in the same year.

An increase in employee attitudes was linked to 28 million dollars in revenue due to increased customer satisfaction.

Engaged steel mill employees required 34% fewer labor hours to produce a ton of steel.

National Weather Service meteorologists working on highly engaged teams were more accurate at predicting tornadoes.

Financial services employees who felt supported by their bosses were significantly more intellectually invested in their work.

9© 2015 Sirota Consulting LLC

Second, we know that leaders are criticalAbout leadership?

“This company is a great place to work. It’s fulfilling and I’m

proud of it”

“I am motivated to do whatever it

takes , every day”

Individual Fit & Fulfillment• Company cares about me, I fit in• What I do matters (job itself matters, sense

of challenge and achievement)• I have a future with a company that has a

future (career and development opportunity)

Senior Leadership Fosters climate of . . .• Company as a “winner”

with positive future• Great “deal” for employees

(relationship with the company, roles, future)

Effectively Functioning Teams• Openly discuss barriers to effectiveness,

make improvements• Do whatever it takes, “there for each

other” as a team• Higher performing (if no extra-team

barriers)

Local Management Fosters climate of . . . • Partnership and trust, “we’re

in this together”• Openness, involvement• Higher performance

(expectations, feedback)

Analysis of 68 companies varying in size and global scale

What? Who?

10© 2015 Sirota Consulting LLC

Third, manager personality impacts engagementAbout managers?

Employee EQ Employee Engagement

Employee Performance

Manager EQ Manager Engagement

Manager Performance

Multinational Hospitality Group: N=1034, 245 Managers, 799 Employees. 9 month time frame

11© 2015 Sirota Consulting LLC

Last, we need to stop trying to motivate peopleAbout employees?

30 Day 90 Day 180 Day 365 Day60

65

70

75

80

85

90

9591

86

76

75

Motivated to go above and beyond

Case Study of over 1,000 new hires

We need to stop de-motivating them

12© 2015 Sirota Consulting LLC

Leaders know how to build a culture of employee engagement.

Good job of taking action on our employee engagement data.

EE program has had positive impacts on business outcomes.

Leaders understand the role they play in improving engagement and performance.

Leaders work hard to create an environment of employee engagement.

Effective at measuring employee engagement.

Effective at analyzing our employee engagement data.

Effective job making the business case for engagement.

Snr leaders: engagement to be a key business driver and performance indicator.

Snr leadership: recognizes the value of employee engagement.

50

52

59

61

65

71

71

73

79

90

%Favorable

Where is the impact?

Research with The Engagement Institute

Many leadersbelieve in it

Organisations are measuring it

But many are not seeing the benefits

13© 2015 Sirota Consulting LLC

So what needs to happen?

Focus on performance

Build engaging cultures

Make better use of data

14© 2015 Sirota Consulting LLC

First, stop treating engagement as an end in itself

PERFORMANCELEADERSHIP EMPLOYEES

MANAGERS

STRATEGY

PERFORMANCE

TOOLS & RESOURCES

STRONG TEAMS

EXCELLENT PROCESSES

CLEAR STRATEGY

CLEAR GOALS

ACCOUNTABILITY

ENGAGED

COMMITTED

ENTHUSIASTIC

CONTINUOUS IMPROVEMENT / INNOVATION

STRONG VALUES

POSITIVE MANAGEMENT BEHAVIOURS

15© 2015 Sirota Consulting LLC

Second, make it happen every day

DNA of Engagement: How Organizations Create and Sustain Highly Engaging Cultures

16© 2015 Sirota Consulting LLC

8 Attributes of Engaging Organisations

Alignment

Philosophy

Policies & Practices

Communication

Collaboration

Assessment

Leadership

Business Impact

1. Engagement is a business imperative

2. Engagement is part of accomplishing the mission

3. Engaging employees is part of HR practice decisions

4. Open, transparent, 2-way communication

5. One Team

6. Regular assessment & feedback

7. Managers empowered to build Engagement

8. Engaged teams are shown to perform better

17© 2015 Sirota Consulting LLC

OnboardingSurveys

EngagementSurveys

ExitSurveys

PerformanceData

Last, start connecting the dots

• Manager Support at Day 10 Employee Engagement at Day 180

• Non-Financial Rewards in 2010 Engagement Increases in 2011

• Awareness of Career Growth Opportunities 2x Likely to Stay

• 1% Increase in Store Engagement $1,444.29 in quarterly sales

Here’s an example -

18© 2014 Sirota Consulting LLC

Engagement is an important business measure

Over the last 25 years, we have learnt a lot

But many organisations want to see more impact

The next phase is about innovating what we DO rather than what we measure

What am I saying?

EE P

Focus on performance

Build engaging cultures

Make better use of data

Performance driver

Snr leaders matter

EQ matters Natural motivation

52%48

Good job of taking action on our employee engagement data

19© 2014 Sirota Consulting LLC

Stay in touch

Connect: http://sg.linkedin.com/in/lewisgarrad/ With me

With Sirota https://www.facebook.com/Sirota

https://www.linkedin.com/company/sirota