FEBRUARY 25, 2014

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THE NINE CIRCLES OF EMPLOYEE DISENGAGEMENT

AN ESCAPE PLAN

JEN SARTORSr. Product Marketing Manager

@globoforce

DARCY JACOBSENContent Manager & Blogger

@darcyjacobsen

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GLOBOFORCE

Social recognition Global reach

(140 countries) Powered by SaaS Mobile access Data-driven talent

analytics

“Abandon All Hope Ye Who Enter Here”

5

Limbo

Lust

Gluttony

Greed

Wrath

Heretics

Violence

Fraud

Treachery

Disengagement Hell

18%

Source: Gallup 2013 State of the American Workplace

Actively Disengaged

30%Engaged

52%Disengaged

1. Limbo

1. STAGNATION Lack of development

Lack of advancement opportunities

Unclear goals

Poor succession planning

"This miserable way is taken by the sorry souls of those who lived without disgrace and without praise.” – Dante Alighieri

Engaged Disengaged

78%

25%

14%

30%

8%

45%

Disagree or Strongly Disagree

Neither Agree nor Disagree

Agree or Strongly Agree

BlessingWhite: “I have Career Opportunities in this organization” by engagement level

Source: BlessingWhite , 2012 Employee Engagement Research Report

THE WAY OUT: LEARNING & DEVELOPMENT

26%

18%15%

12%

10%

BlessingWhite: #1 reason employees stated for leaving their company was: “I don’t have opportunities to grow or advance.”

Source: BlessingWhite , 2011 Employee Engagement Report

34%Only 34% of

organizations can effectively identify

future leaders

THE WAY OUT: SUCCESSION PLANNING

Source: Quantum Workplace

1%Only 1% of executives

believe their succession plans are

excellent

66%66% of executive rate their succession plans

as fair or worse.

THE WAY OUT: FLOW

CIRCLE 1: TOP 3 TAKEAWAYS

1. Create a culture of learning

2. Identify, develop and promote top performers

3. Focus on identifying and developing strengths rather than uncovering weaknesses

2. Lust

2. NO ALIGNMENT Lack of purpose

Lack of vision

Unclear and unpracticable values

Poorly defined culture

“The infernal hurricane that never rests hurtles the spirits onward in its rapine whirling them round, and smiting.”– Dante Alighieri

2. NO ALIGNMENT

Highly Engaged Disengaged

88%

38%

Towers Watson: “I understand how my job contributes to the organization achieving its business goals.”

Source: Towers Watson 2012

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Modern Survey: “Employees who know and understand company values are 30X more likely to be fully engaged.”

THE WAY OUT: VALUES

Source: Modern Survey 2012

POLL #1: WHY DO YOU STAY?

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A. My careerB. My financesC. ComplacencyD. My manager E. Our missionF. My job conditions G. The economy H. My colleagues I. My work

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THE WAY OUT: MISSION

38%

19%

17%

5%

5%

16%

14%

19%

11%

10%DisengagedEngaged

My finances

Complacency

My career

Our mission

My work

BlessingWhite: Why do you stay?

Source: BlessingWhite 2013

CIRCLE 2: TOP 3 TAKEAWAYS

1. Articulate a meaningful mission, goals and values

2. Acknowledge and reward “small wins”

3. Make your values practicable day to day

3. Gluttony

3. LACK OF SUPPORT Lack of enablement

Inadequate resources

Inability to form strong relationships

Inability to use strengths

Poor wellbeing

“The secret of getting things done is to act!” – Dante Alighieri

3. LACK OF SUPPORT

Highly Engaged Disengaged

78%

27%

Towers Watson: “My manager helps remove obstacles to doing my job well.”

Source: Towers Watson 2012

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Hay Group: Engaged employees are 10% more likely to exceed performance expectations. Highly engaged and enabled employees are 50% more likely to exceed performance expectations.

THE WAY OUT: EMPLOYEE ENABLEMENT

Source: Hay Group 2012

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THE WAY OUT: EMPLOYEE WELL-BEING

Engaged

Disengaged

94%

35%

92%

40%

Level of Well Being Level of EngagementSource: Towers Watson 2012

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THE WAY OUT: STRENGTHS-BASED DEVELOPMENT

Focus on Strengths

Focus on Weakness

Actively Ignored

1%22% 40%

38%

33% 57%

61% 45%2%

EngagedNot EngagedActively Disengaged

Source: Gallup 2013

CIRCLE 3: TOP 3 TAKEAWAYS

1. Focus on and develop strengths rather than weakness

2. Offer flex time and encourage well-being

3. Consider measuring enablement as well as engagement

4. Greed

4. BUDGET Lack of budget for

engagement & investment

Failure to invest for the long term

“There is nothing lost, that may be found, if sought.” – Dante Alighieri

4. BUDGET

1 2 3 4 5 6 7 8 9 10 11

7%

15%

20% 20%17%

13%

4% 2% 1% 0% 0%

W@W: # Recognition Programs Of-fered

Source: WorldatWork 2013

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Aberdeen: “The number one way best-in-Class organizations improve employee engagement is through employee recognition programs. This is even above other activities such as work-life balance and interaction with managers.”

THE WAY OUT: EMPLOYEE RECOGNITION

Source: Aberdeen 2013

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THE WAY OUT: RECOGNITION SPEND

W@W: Recognition Budget: 1-2% Mode: 1% Average: 2% Median: 1%

Source: WorldatWork 2013

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Employee gifts Birthday gifts & parties Attendance awards Employee of the month Sales contests Safety awards Employee social events Health & Wellness awards Referral bonuses

Sign-on bonuses Holiday bonuses Incentive plans Perks SPIFs Car allowances Retirement celebrations Personal milestone celebrations

THE WAY OUT: CONSOLIDATION

Source: Gallup 2013

CIRCLE 4: TOP 3 TAKEAWAYS

1. Recognize and reward all employees

2. Consolidate programs to find hidden spend

3. Allocate 1+% of payroll budget to recognition

5. Wrath

5. WRATH Bad managers

Bad feedback

Poor communication

Focus on what is going wrong

“Open your mind to what I shall disclose, and hold it fast within you; he who hears, but does not hold what he has heard, learns nothing”. – Dante Alighieri

5. WRATH

2% 4%

40%54%

SHRM: Importance of communication between employees and immediate supervisors for job satisfaction

Source: SHRM 2013

5. WRATH

Gallup: Managers who give little or no feedback fail to engage 98% of employees

98%

Source: Gallup 2013

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THE WAY OUT: POSITIVE FEEDBACK

90%

10%

Workforce Mood Tracker: 90% of employees see positive feedback as more motivating.

Source: Globoforce Workforce Mood Tracker 2013

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THE WAY OUT: BUILD NETWORKS, NOT HIERARCHIES

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THE WAY OUT: BUILD NETWORKS, NOT HIERARCHIES

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THE WAY OUT: BUILD NETWORKS, NOT HIERARCHIES

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THE WAY OUT: BUILD NETWORKS, NOT HIERARCHIES

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THE WAY OUT: BUILD NETWORKS, NOT HIERARCHIES

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THE WAY OUT: CROWDSOURCED REVIEWS

Workforce Mood Tracker: Peer-reviewed employees are 21% more satisfied with their jobs. 88%

67%

Source: Globoforce Workforce Mood Tracker 2013

CIRCLE 5: TOP 3 TAKEAWAYS

1. Train managers on positive feedback

2. Consider crowdsourcing the review process

3. Create an emotional network of people through communications and feedback

6. Heresy

6. HERESY

Engagement “Not My Job”

Lack of HCM visibility

Short term or situational thinking

No HR seat at the table

““Because your question searches for deep meaning,I shall explain in simple words.” – Dante Alighieri

6. HERESY

9%

18%

24%

51%

58%

77%

What is the Primary Reason you are in HR Field?

To help people grow and develop

To help my company maximize its profitability

To help balance organization and employee needs

To represent the needs of employees

I enjoy being part of a for-profit organization

It’s one of many functions I want to learn aboutSource: New Talent Management Network 2013

POLL #2: WHY ARE YOU ARE IN HR?

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A. To help people grow and develop

B. To help my company maximize its profitability

C. To help balance organization and employee needs

D. To represent the needs of employees

E. I enjoy being part of a for-profit organization

F. It’s one of many functions I want to learn about

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THE WAY OUT: INTEGRATED TALENT STRATEGY

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THE WAY OUT: INTEGRATED TALENT STRATEGY

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Recruitment Metrics Retention Metrics Comp/Benefits Metrics Culture and Diversity Metrics Staffing/Performance/Productivity Metrics Development Metrics Health, Safety & Sustainability Metrics

THE WAY OUT: BUILD AN HR METRICS DASHBOARD

CIRCLE 6: TOP 3 TAKEAWAYS

1. Think holistically and strategically

2. Speak the language of senior leaders

3. Keep a strong metrics dashboard

7. Violence

7. RESPECT & RELATIONSHIPS

Hostile Environment

Lack of Respect

Workplace Bullying

Organizational Trauma

“I wept not, so to stone within I grew.” – Dante Alighieri

7. RESPECT & RELATIONSHIPS

Engaged Disengaged

90%

51%

BlessingWhite: “I trust my manager” - favorable responses by engagement level.

Source: BlessingWhite 2012

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Top 5 things candidates look for:1. Stability2. Compensation3. Respect4. Health Benefits5. Work-Life Balance

THE WAY OUT: RESPECT

Source: CEB 2013

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– Have Higher Emotional Well-Being – Get Along Better with Others– Are More Resilient to Trauma – Sleep Better– Are Physically Healthier – Are Less Depressed – Pay It Forward – Achieve More – Are Better Corporate Citizens – Are Less Likely to Burn Out – Are More Moral

THE WAY OUT: GRATITUDE

Academic studies show that grateful people:

Source: Globoforce Blog

CIRCLE 7: TOP 3 TAKEAWAYS

1. Commit the organization to trust and respect

2. Encourage gratitude and reflection

3. Offer employees opportunities to give

8. Fraud

8. FRAUD

Broken emotional contract

Choosing the right managers

Not hiring for cultural fit

"You were not made to live as brutes, but to follow virtue and knowledge” – Dante Alighieri

8. FRAUD

WorkUSA: Average employee engagement drops 9% in first year.

Less than Six Months

6-12 Months

71%57%

Source: Watson Wyatt WorkUSA 2009

8. FRAUD

Company has a reputation for providing a good employment

deal

Company lives up to the deal after an employee is hired

Company aligns the deal with what the organization stands for

in the marketplace

93%

92%

92%

12%

11%

12%

Engagement and the “Employee Deal”

Source: Watson Wyatt Work USA 2009

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THE WAY OUT: STRONG EMPLOYER BRAND

Traffic to careers website

Customer satisfaction/retention

Number of applications received

Brand awareness surveys

Employee engagement scores

21%

27%

30%

32%

35%

Top 5 Most Improved Metrics Due to Brand Strategies

Source: Hodes Employer Brand Study 2012

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Happy Employees:

Stay twice as long in their jobs

Believe they are achieving their potential 2x as much

Spend 65% more time feeling energized

Are 58% more likely to go out of the way to help a coworker

Identify 98% more strongly with company values

Are 186% more likely to recommend their organization

THE WAY OUT: EMPLOYEE HAPPINESS

Source: WSJ and iOpener Institute 2012

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“People who merely witness or hear about a helpful interchange may… experience the positive emotion of elation. [This sparks] a generalized desire to become a better person and perform helpful acts oneself. […]

Experiences of elevation, then, carry the potential to change people as well as groups, organizations and communities.”

- Dr. Barbara Frederickson, UNC

THE WAY OUT: WITNESS EFFECT

Source: WSJ and iOpener Institute 2012

CIRCLE 8: TOP 3 TAKEAWAYS

1. Put culture first

2. Measure and manage employee happiness

3. Identify cultural energizers and influencers

9. Treachery

9. TREACHERY

Lack of leadership

Lack of leader engagement

Lack of focus on culture from the top

“The darkest places in hell are reserved for those who, in times of great moral crisis, maintain their neutrality.” – Dante Alighieri

9. TREACHERY

Engaged Disengaged

85%

30%

BlessingWhite: “I trust the senior leaders of this organization”

Source: BlessingWhite 2012

POLL #3: ARE YOUR SENIOR LEADERS STRONG COMMUNICATORS?

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A. Yes, they love to connect with employeesB. Yes, when they remember or are coaxedC. No, but they are okay with coachingD. No, they are a disaster

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THE WAY OUT: COMMUNICATION

Have perception that constructive changes occurred as a result of a survey

Get feedback on performance from supervisor at least monthly

Have communication from senior management at least weekly

71%

65%

53%

6%

39%

23%

Low Engagement High Engagement

Engagement follows frequency of interaction, feedback and action

Source: Watson Wyatt Work USA 2009

CIRCLE 9: TOP 3 TAKEAWAYS

1. Level the communication playing field

2. Help executives to see the ROI of engagement

3. Engage senior leaders directly in culture initiatives

PARADISO

9 OVERALL TAKEAWAYS

1. Break down inter- and intra-organizational barriers

2. Cultivate emotional engagement and relationships

3. Treat employees as partners

4. Focus on the positive

5. Create meaning through actionable vision and goals

6. Offer opportunities for giving and gratitude

7. Be flexible in both thinking and strategy

8. Visualize your culture: measure to manage

9. Communicate more clearly and more often

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