Employee Engagement

Ged Horn

2

Why you are here - The ISS Value Chain

Defining playing fields, rules and strategic priorities

Turning strategic priorities into attractive and operational service offerings

Engaging capable individuals in all positions

Delivering on promises

Following up on customer experience to identify area for improvement

Managing sales effectively

Boosting the Business Platform

3

We Operate in 53 Countries and have > 541,000 employees

4

... Our greatest asset is our engaged employees

Customer Experience

Business Results

Engaged Employees

Shareholder Value

Engaged employees are key to delivering shareholder value

“That’s why all leaders at every level of the organisation need to adopt, promote and be

passionate about the ISS Leadership Principles – promoting teamwork and collaborating across

borders and business – ensuring that each and every of our employees work towards our shared

vision of being the Worlds Greatest Service Company ”

That is why we need to lead by example

5

Our Leadership Principles...

6

…strong Leadership impacts our business results…

7

• Using the Leadership principles drives Employee Engagement

• Engaged Employees deliver a better service to the customer leading to higher customer satisfaction

• Resulting in a greater return for our shareholders

Driving leadership Behaviour is driving our business …

And we know it works! It’s a simple correlation.

0

8

CB

III

Mar

gin

Employee NPS-60 60

0

10

CB

III

Mar

gin

Customer NPS-60 60

8

Net Promoter Score 2012 - Place to work

9

How likely would you be to recommend ISS to others as a good place to work?

This question was asked on an 11-point scale. The scoring method is shown in the following figure:

Overall ENPS is calculated by subtracting the % of Detractors from the % of Promoters.

Extremely likely

Not at all

likely

Promoters Passive Detractors

Promoters

= 26%

Detractors

= 45%

ENPS score-18

Net Promoter Score 2012 - Place to work

10

How likely would you be to recommend ISS services to others?

This question was asked on an 11-point scale. The scoring method is shown in the following figure:

Overall ENPS is calculated by subtracting the % of Detractors from the % of Promoters.

Extremely likely

Not at all

likely

Promoters Passive Detractors

Promoters

= 30%

Detractors

= 42%

ENPS score-13

Executive summary 2012: Key Facts

• A slight improvement on response rate; 52% for ISS UK.

• Results show some improvements, particularly in career development and talent.

• However there are declines, particularly in employee engagement and senior leadership.

High performing companies defined as >50 international companies (surveyed by Hay Group in the past 5 years) which exceeded industry averages in terms of 5-Year ROA, ROI and ROE by 40% to 66%.

Executive summary 2012 : Key Facts

• Benchmark results are positive compared with other service companies and, in some cases, high performing companies.

• Work environment remains highly enabled, significantly more than high performing companies.

• White collars scores improved around delivering to customers, social responsibility and attracting high quality employees, but declined around direction, leadership, managing contracts and career opportunities.

High performing companies defined as >50 international companies (surveyed by Hay Group in the past 5 years) which exceeded industry averages in terms of 5-Year ROA, ROI and ROE by 40% to 66%.

Hay Group’s Employee Effectiveness framework

Our flexible framework uniquely focuses on both engagement and enablement

Clear & promising direction Confidence in leaders Quality & customer focus Respect & recognition Development opportunities Pay & benefits

Performance management Authority & empowerment Resources Training Collaboration Work, structure, & process

Drivers

Employee Engagement Commitment Discretionary effort

Employee

EffectivenessEmployee

Effectiveness

Employee Enablement Optimised roles Supportive environment

Productivity

Financial performance

Attraction and retention of talent

Customer loyalty

Innovation

Enhanced corporate reputation

Dimension summary 2012

vs. 2011

Employee Enablement 0

Managing Performance 0

Respect and Well-Being 0

Delivering for Customers (wc only q’s) 0

Training and Development 0

Equal Opportunities (online only q) --

Employee Engagement -1

Senior Leadership (wc only q’s) -1

Recognition and Pay 0

Career Development and Talent (wc only q’s) +1

78

76

73

73

72

71

69

65

61

53

14

14

16

19

16

20

18

26

17

32

10

11

12

9

12

9

13

10

22

16

-- New dimension

My job makes good use of my skills and abilities 0 +5 +3

I can do a good job without anything getting in the way -1 +19 +13

Employee Enablement 2012

vs. Services

norm

vs. HP

norm

vs. 2011 norm

Employee Engagement 2012

I am motivated to contribute more than is expected of me at work -1 +2 +1

I feel proud to work for my contract / business area -1 -- --

I feel proud to work for ISS 0 -3 -15

I would recommend ISS to others as a good place to work 0 +2 -9

I intend to continue working here for: -2 -5 -19

-

vs. Services

norm

vs. HP

norm

vs. 2011 norm

More than 5 yrs 3-5 yrs Less than 2 yrs

Employee Development

People Development Routes

People Development

Exporting UK Talent

Its our in our DNA

Thank you