engaging for succes - a story about employee engagement
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Engaging for SuccessA story about employee engagement
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Why is employee engagement hot?
What is employee engagement?
Why invest in employee engagement?
How to create employee engagement?
How to build and gain employee engagement?
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1 Why is employee engagement hot?
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Engagement is a major key to future success
GLOBALISATION INDIVIDUALISATION HUMANISATION DEMOGRAPHICSCONTINUOUS
CHANGE
How can you make
your organisation
and your employees
more productive?
What really motivates
every individual
employee?
How can you create
commitment and
solidarity?
How can you
promote and retain
the talent in your
organisation?
How can you align
your employees with
your organisation’s
vision and objectives?
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2 What is employee engagement?
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Engagement, more than satisfaction
motivate employees intrinsically to strengthen the competitiveness of the organisation
(Re)vitalising HR
Employee Value
Org
anis
atio
nal V
alue
Dissatisfied
Satisfied
Engaged
Transforming HR
satisfy employees to bind them to the organisation
Step
1
Step
2
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5 features of an engaged employee
Be loyal and respect the organisation! Do your employees behave loyally?
Go the extra mile!Is your employees’ performance excellent?
Recommend and defend the organisation with pride!Do your employees behave like ambassadors?
Love the job, have fun!Do your employees show passion?
Take on your work with passion! Are your employees bursting with energy?
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61%
17%22%
dissatisfied satisfied engaged
Average distribution dissatisfied – satisfied – engaged
Source: SD Worx – Engagement Study ©
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3 Why invest in employee engagement?
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Stronger customer relations
Loyal builders of the future
Productivity and extra efforts
Lower costs
Optimisation and innovation
Image and reputation
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Stronger customer relationsEngaged employees maintain much better relations with your customers. They consider the communications with and understanding of customers to be excellent in no less than 98% of all instances.
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Stronger customer relations
Customer relations are rather bad Customer relations are rather good
Source: SD Worx – Engagement Study ©
93%
98%2%
7%
66%34%
engaged
satisfied
dissatisfied
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Employee vs customer engagementBusiness units with engaged employees and customers are 3.4 x more effective financially!
1.7Quadrant III
3.4Quadrant I
1.0Quadrant IV
1.7Quadrant II
Q12 EMPLOYEE ENGAGEMENT
Q12
CU
ST
OM
ER
EN
GA
GE
ME
NT
LOW HIGH
LOW
HIGH
Partially optimised
Partially optimised Optimised
Non-optimised
Source: Gallup – Human Sigma
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Service profit chain
Employeeengagement
Customerengagement
Revenue growthProfitability
Engaged employees deliver value for their customers and create engaged customers who in turn foster organisational success
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Loyal builders of the futureEngaged employees have no intention to leave the company. At the same time you ensure that your investment in your human capital bears profit in the future and that your organisation's continuity is assured.
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More loyalty, less employee turnover
Intends to stay with the organisation for a long, indeterminate period
Is looking for another employer
Is actively looking for another employer
31%
47%
14%Dissatisfied
Satisfied
Engaged
87%
17%
3%
98%
6%
2%
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ProductivityEngaged employees perform better. Growth and engagement go hand in hand.
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Higher productivity
Engaged employees are 50% more productive than colleagues who are not engaged dissatisfied satisfied engaged
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10% 50% 40%
dissatisfied satisfied engaged
Higher productivity
+13% increase in productivity
40% 50% 10%
Source: SD Worx
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Lower costsEngagement also offers advantages on the expenses side. Dissatisfied employees are absent twice as often from work as their engaged colleagues and have a substantially greater intention to leave the company. The costs of absenteeism and employee turnover are huge and therefore an even bigger reason to develop engagement.
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dissatisfied satisfied engaged
2.83.3
4.3
Sick leaveDissatisfied employees are sick twice as often as engaged employees
number of sick days annually (short-term)
Source: SD Worx – Engagement Study ©
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10% 50% 40%
dissatisfied satisfied engaged
40% 50% 10%
Sick leave
- 53% cost of sick leave
Yearly average cost per employee:
€ 816
Source: SD Worx
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3%9%
24%
dissatisfied satisfied engaged
Employee turnover
Employee turnover %
Source: SD Worx – Engagement Study ©
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- 44% turnover cost
Turnover cost / employee
75%of the yearly total reward package
10% 50% 40%
dissatisfied satisfied engaged
40% 50% 10%
Employee turnover
Source: SD Worx
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Innovation & optimisationEmployee engagement drives innovation and optimisation. It is no surprise that in traditional organisations the number of engaged employees is 8 times less than in innovative organisations.
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Innovation
engagedsatisfieddissatisfied
Traditional organisation
Innovative organisation 24%69%7%
47% 50% 3%
Source: SD Worx – Engagement Study ©
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Image & reputationAnd finally, engaged employees help you build your image. They will actively promote their organisation in their own surroundings.
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Image
Organisation with bad reputation and image
Organisation with good reputation and image
22%68%10%
53% 45% 2%
engagedsatisfieddissatisfied
Source: SD Worx – Engagement Study ©
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I talk about my organisation with pride
Ambassadorship
100%
82%
24%
dissatisfied satisfied engaged
Source: SD Worx – Engagement Study ©
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4 How to create employee engagement?
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Drivers
Satisfied employees Engaged employees
Satisfaction basics Engagement drivers
Do what they are asked to do
Fulfill expectations
Voluntarily make extra efforts
Are involved
Are passionate
Offer added value
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Impact
Esteem
Opportunities for growth
Mission, vision & strategy
Culture
Support
Social environment
Working conditions
Comp & ben
Job security
Impact on engagement
Sco
res
item
s
Job
Source: SD Worx – Engagement Study ©
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5 How to build and gain employee engagement?
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Our approach
Intake Action plan EvaluationCurrent
stateFuture state
COMMUNICATION
COMMUNICATION
Project 1 - ...
Project 2 - ...
Project 3 - ...
Project 4 - ...
Interviews1
Strategic workshop2
“Future state”3
Dashboarding4
Intake1
Communication2
Execution3
Processing4
Analysis & reporting5
Communication6
Action plan7
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Measuring the current stateOur employee engagement survey
I am enthusiastic in my work
I am motivated to deliver a strong performance
I believe I make a clear contribution to the company’s results
I like to work hard
I perform better than I am expected to
The buzz and drive in my immediate environment (colleagues, managers, etc.) stimulate me in my work
Performance Score
Age: All values (5) Age 2: All values (5)
Score
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Actions you might be taking right now
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dissatisfaction
satisfaction
engagement
Social relationsInternal communication…
Reward communicationFlex income planWages positioningStrategic reward policy…
Team scanTeam assessment
MBTILeadership development
(social architect)…
Stress & ergonomicsWellfare policy
Work-life (homeworking, ...)…
Action items
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dissatisfaction
satisfaction
engagement
Culture analysisValues workshopLeadership brandChange managementEmployer branding…
Career developmentCareer counsellingLearning & developmentDevelopment centreJob rotationTalent managementSuccession planning
Job analysisJob crafting
Performance managementAssessment centre
Talent reviewJob & organisational design
…
Strategic workshopsPerformance management
Internal communicationKPI’s
…
Action items
Leadership brandLeadership development
Team buildingFeedback & communication
Motivation of employeesCoaching
…
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Need help with increasing employee engagement?
Go to http://www.sdworx.be/engagement and give us a call
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Good luck!
Brouwersvliet 5B 2000 Antwerpen Tel 078 15 90 27www.sdworx.com
Koen De ValckManaging Consultant