PEOPLE ENGAGEMENT

brief theory & practices

2

What Scholars has Said?

What Survey has Found?

Hows the Practice?

3

4

What Scholars has Said?

What Survey has Found?

5

Employee engagement has become a top business priority for

senior executives. In this rapid cycle economy, business leaders

know that having a high performing workforce is essential for

growth and survival. They recognize that a highly engaged

workforce can increase innovation, productivity, and bottom line

performance while reducing costs related to hiring and retention

in highly competitive markets.

But while most executives see a clear need to improve employee

engagement, many have yet to develop tangible ways to measure

and tackle this goal. However, a growing group of best-in-class

companies says they are gaining competitive advantage through

establishing metrics and practices to effectively quantify and

improve the impact of their engagement initiatives on overall

business performance.

71% - Employee engagement as very

important to

achieving overall

organizational

success

72% - recognition given for high

performers as

having a significant

impact on employee

engagement

24% - employees in their organization

are highly engaged

Based on survey

6

Employee engagement has become a top business priority for

senior executives. In this rapid cycle economy, business leaders

know that having a high performing workforce is essential for

growth and survival. They recognize that a highly engaged

workforce can increase innovation, productivity, and bottom line

performance while reducing costs related to hiring and retention

in highly competitive markets.

But while most executives see a clear need to improve employee

engagement, many have yet to develop tangible ways to measure

and tackle this goal. However, a growing group of best-in-class

companies says they are gaining competitive advantage through

establishing metrics and practices to effectively quantify and

improve the impact of their engagement initiatives on overall

business performance.

71% - Employee engagement as very

important to

achieving overall

organizational

success

72% - recognition given for high

performers as

having a significant

impact on employee

engagement

24% - employees in their organization

are highly engaged

engagement

has become Top

business priority

highly engaged

workforce can increase

innovation, productivity,

many have yet to

develop tangible ways to

measure and tackle

Based on survey

7

71% - Employee engagement as very

important to

achieving overall

organizational

success

72% - recognition given for high

performers as

having a significant

impact on employee

engagement

24% - employees in their organization

are highly engaged

ASPECT RESPONSE

High level of customer service 80%

Effective communications 73%

High level of employee engagement 71%

Strong executive leadership 71%

Efficient productivity 68%

Continuous quality improvement 59%

Ability to innovate 59%

Strong sales and marketing capabilities 58%

Factors Most Likely

to Bring Success

Based on survey

ASPECT RESPONSE

Recognition given for high performers 72%

Individuals have clear understanding of how job contributes to strategy

70%

Senior leadership continually updates/communicates strategy

70%

Business goals communicated company wide and understood

69%

Individual Staff goals aligned with corporate goals 67%

Assessments and performance reviews aligned with corporate goals

64%

Some or all staff pay linked to corporate goal achievement 54%

Training and development organized around corporate goals

52%

Most Impactful

Employee

Engagement Drivers

GALLUP SURVEY

Identify

Strengths

The Right

Fit

Great

Managers

Engaged

Employees

Engaged

Customers

Sustainable

Growth

Real Profit

Increase

Stock

Increase

The Gallup Path

Focus on strengths

ability to provide

consistent, near

perfect performance

in a given activity of

every employee

8

99th percentile of Gallup engagement database have nearly 5x of having

above average performance at their jobs as those in the 1st percentile.

Compared with bottom quartile business units, top quartile units have;

-12% higher customer metrics

- 18% higher productivity

-16% higher profitability

- 37% lower absenteeism

- 25% lower turnover (in high turnover organizations)

- 49% lower turnover (in low turnover organizations)

- 27% less theft

- 49% fewer safety incidents

- 60% fewer product defects

199 research studies

across 152 org.

in 44 industries

in 26 countries

32,394 work units

955,905 employees

9

GALLUP SURVEY

53%

28%

19% not engaged

engaged

activey disengaged

Engaged best colleagues, creative force, performance

Not Engaged just here, killing time, thinking about lunch break, dont care

Actively Disengaged there to destroy, exhaust managers, negativity

10

GALLUP SURVEY

Understand

employees who are

sitting in

organizations

High Engagement = Individual Behavior + Organizational Conditions

Individual Behavior Organizational

Conditions

Sustainable

High Engagement

Take primary

responsibility for

their own

engagement

Feels the

least entitled

Engage customers

Remain highly

engaged almost

everywhere

Apply six

behavioral drivers:

connect, shape,

learn, stretch,

achieve, contribute

HOW ARE HIGHLY ENGAGED EMPLOYEES DIFERENT?

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Hay Group Research

- 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 Enablement

- Optimized Roles

- Supportive Environment

Employee

Effectiveness

Productivity

Financial

Performance

Attraction &

Retention of Talent

Customer Loyalty

Innovation

Enhanced Corporate

Reputation

Employee Effectiveness Framework

not only to

motivate but also

to enable employees

to channel extra

efforts productively

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Hay Group Research

DETACHED EFFECTIVE

INEFFECTIVE FRUSTRATED H

igh

L

ow

Em

plo

ye

e E

nab

lem

en

t

Employee Engagement

High Low High performers motivation contribute to ability to be

successful

Aligned with organization

directions, but held back by roles

that dont suit them

Suit with the roles and

environments, but the

engagement levels insufficient

Struggle with their

job roles,

Lack of enablement for the employee who is engaged

may be a bigger problem than

the lack of engagement for the enabled employee

Need to take action on this part; lack

of training, inefficient workflow, poor

communication, inadequate

performance feedback

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not only to

motivate but also

to enable employees

to channel extra

efforts productively

14

Career development is a critical driver for getting and keeping employee, also base salary and work location

ATTRACTION

Base salary Work location

Career opportunities Learn new skills opportunities

Healthcare & wellness benefits

RETENTION

Base salary Relationship with Manager

Career advancement opportunities

Retirement benefits Work location

23%

42%

35%

Disagree

Agree

Neutral

I have to join another organization in order to advance to a job at a higher level

87% high performer 63% age under 40 49% willing to relocate globally

Towers Watson

Survey

What managers believe about reasons employees leave and

why employees say they leave?

11%

89%

What Managers Believe

Other Reasons

More Money

12%

88%

What Employees Say

More Money

Other Reasons

19%

30%

51%

Employee Engagement Survey Results

Actively Engaged

Engaged

Disengaged

Saratoga &

Gallup

Survey

16

Being passed over for promotion Realizing that the job is not as

promised Transfer to undesired different

role Having the hiring boss replaced by

new boss the employee doesnt like

Being assigned to a new region

Being asked to do something unethical

Learning that the company is

doing something unethical

Earning enough money to retire or

pursue new life choice

Favoritism in organization

One paid higher than others, but

less responsibilities

Unfair promotion

Attitude of co-worker or boss

Receiving sudden outside

job offer

Ideas not welcomed

Getting much more complicated

work process Excessive workload

Disagreeing with the boss

Having conflict with co-worker

Receiving low or no pay increase

Events That

Trigger

Employee

Disengagement

Push Factors?

Pull Factors?

Inadequate benefit

Long working hours

No career growth clarity

Poor communication

Lack of teamwork

Unfair pay increases

Too many changes

17

Many managers dont care or notice if their people are bored or unchallenged

Many managers dont delegate enough to make jobs more interesting or

challenging

Employees do not know their own strengths and the kind of work that would fit

them best

Many organizations have no way of effectively assessing the talent of their

employees

Employees are reluctant to discuss their dissatisfaction with their managers

Many jobs are so overly defined and narrowly drawn that almost anyone placed

in those jobs would be underemployed

Managers are in such a hurry to hire that they end up just hiring warm bodies

Some organizations are simply inept or oblivious when it comes to evaluating

talent and matching people to the right job

For many managers, helping their employees grow and use new talents is not a

high priority

Employee

testimony on

routine

relationship

18

Hows the Practice?

Engagement Drivers & Indicators

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CULTURE

Leadership Behavior

Living Values

Transparency

Communication

Employee Survey

Work Life Balance

Corporate Social Responsibility

DEVELOPMENT

Learning Concept & Program

Succession Plan

Career Plan

Promotion Ratio

External Hiring

Internal Placement

Job Rotation

ORGANIZATION

Recruitment process

Job Design

Turnover Ratio

Productivity Ratio

Reward System

Business Performance

Competitor Analysis

Job Profile

Service Year Average

HR Business Partner

RECOGNIZE

UNDERSTAND

SENSITIVE

CONSISTENT

FOLLOW UP

REVISIT

REVIEW

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What Might Work?

RECOGNIZE

UNDERSTAND

SENSITIVE

CONSISTENT

FOLLOW UP

REVISIT

REVIEW

CLEAR EMPLOYEE VALUE PROPOSITION?

REWARD COMPETITIVENESS?

EMPLOYEE SURVEY?

ANALYTIC CLIMATE REVIEW?

WHO ARE COMPETITOR?

ORGANIZATION DESIGN REGULAR REVIEW?

FINANCIAL RECOGNITION WORK PROCESS

Structured Reward System

Transparent Reward Systems

Salary Range

Differentiate Performers

Performers to Median

Incentives/Bonus

Long-term Incentives

Share Options

Work-Life Balance

Learning Environment

Career Development

Mentoring/Coaching

Routine gathering

Family gathering

Performance Differentiation

Flexi Working Hours

Work-from-Home

Transit Office

Health Care

Child Education

Child Care

Sports-club

Pilgrimage Assistance

Medical Coverage

Staff Formal Education

Employee Soft Loans

Well-being Programs

Mobility Programs

CSR Programs

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What Might Work?

RECOGNIZE

UNDERSTAND

SENSITIVE

CONSISTENT

FOLLOW UP

REVISIT

REVIEW

High performance culture

Clear job process flow

Organization Communication

Business Communication

Proper Tools

Clear Stakeholder Management

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SUGGESTED

FLOW

Analyze

Climate

Review

Rationale

Visit the

Symptom

Solution

Options

Solution

Implement

ation

Evaluate

Management

Commitment

People Forum

Consistent rituals

Engagement indicators

Union/Informal

Leaders feedback

At least 2x/year

Detail

Analytical

Pragmatic

Out of the box

FGD

External feedback

Involve business/

functions

Cost

Leadership

Major changes

Minor changes

Scope

Acceptance

Return

Major changes

Minor changes

Scope levels

Long term

Medium term

Short term

Efficient

Organization

Business

Monthly monitoring

FGD

Engagement

indicators

Union/Informal

Leaders feedback

Revisit the flow

Maximum Business Performance Consistent Growth

Employee Positive Contribution Employee Pride and Happiness - Self and Family

Respected Organization - Communities

objective

Corporate Culture Management Vision Corporate Positioning Respect Listen

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- The Coming Jobs War, Jim Clifton (Chairman of Gallup), 2011

- The Employee Engagement Mindset, Timothy R. Clark, 2012

- The Enemy of Engagement, Mark Royal & Tom Agnew (Hay Group), 2012

- The 7 Hidden Reasons Employee Leave, Leigh Branham, 2012

- The Impact of Employee Engagement on Performance, Harvard Business Review, 2013

- Trend in Talent and Career Management, Towers Watson, 2013

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LITERATURE