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Demystifying
Employee
Engagement
Dr. Brenda Kowske, Senior Analyst, Human Resources
Charles Goretsky, Principal Consultant
Bersin & Associates
HR1
Engagement at RoadAmerica
2
Engagement is Fuel for Performance
3
The Result of Engagement
Highly engaged organizations have:
40% lower turnover (The Hay Group)
10% higher customer loyalty scores (Questar)
5x* higher TSR and 2x the ANI (Kenexa Research Institute)
3x higher operating income, 5x higher income growth rate, 3x
higher EPS growth rate in a 12 mo period (Towers Watson)
Gallup estimates disengaged employees cost U.K employers
64.8 billion USD a year in lost productivity.
*Note: Multiplicatives have been rounded and are approximate.
4
By the Numbers
~71,000
57%
35%
19%
of US organizations
measure employee
engagement1
Say “most
important indicator
of TM success”
Say “leads to
business
outcomes”
Of employees
are “highly
engaged”2
1
71% of 100,000 – the number of organizations larger than 100 employees in the US
R. S., Bernthal, P., Phelps, M. (n.d.) Employee Engagement: The Key to Realizing Competitive Advantage. Pittsburg: DDI
2 Wellins,
5
Improving and Sustaining
Engagement
Bersin & Associates’
Definition of Employee Engagement
“The passion and commitment that drive
employees to devote their time and energy
to work, proactively going above and
beyond expectations to help their
organization achieve its goals.”
7
YOUR TURN…
What engages you in your work?
Flip-Charting Fun
8
How Does Engagement Improve
Performance?
Characteristics
Steps
How do we improve the drivers of engagement?
Hire EngagementReady Employees
Leverage
Organizational
Drivers
Engage
Employees
Improve
Employee
Performance
Applicants that
profile as:
Organizations that
have:
Employees that
show:
Employees that
achieve:
Positive
Confident
Self-motivated
Ambitious
Energetic
Identify with work
Leadership skills
Relationship with
manager
The job fit
Culture of
employee value &
development
Reciprocal trust
Belief in mission
Company loyalty
Interest in work
Job satisfaction
Empowerment
Enthusiasm
Investment in work
Proactivity
Their goals and
more
Consistent
timeliness
Efficiency
Respectfulness
9
Improve
Organizational
Performance
Organizations that
enjoy:
High customer
satisfaction
Meeting divisional
goals
Achieving
organizational
financial goals
Low turnover
Sustainable Engagement Supports Agility
Dynamic Business
Strategy Alignment
Organizational
Values Alignment
Strategy &
Governance
But
sustainability
and agility are
created
through
continual
change and
integration
Evaluate
Measure
Engagement
Program
Integrate
Teach
Action
Planning
Change
Learning and Continuous Improvement Culture
10
Many
organizations
invest more in
the
measurement
and reporting
cycle
The Steps to Improving Engagement
Step 1: Priming the Culture
Step 2: Strategy and Governance
Step 3: Measure and Teach
Step 4: Plan, Change, and Integrate
Step 5: Evaluate and Refine
11
Priming the Culture
STEP 1
13
Capitalizing on a Learning Culture
Top 10 Key Themes Related
to Engagement:
In the Top 20:
Engaged and committed to
goals
Leaders are open to “bad
news”
Risk-taking is rewarded
Asking questions
Core values govern action
Decision-making
Taking initiative
Influence
Employee opinions
surveyed & acted upon
Learning through mistakes
 Empowerment
 Opportunity in “Bad News”
 Alignment
Bersin’s 40 Best Practices of High Impact Learning Cultures, 2010
14
Supporting Continuous Improvement
 Embedded in the work system: Feedback from the
process and customer were evaluated against
organizational goals.
 Feedback: Reflect on what works, and what isn’t working
 Efficiency: Identify, then reduce or eliminate of
suboptimal processes.
 Evolution: Change through incremental, continual steps
rather than giant leaps.
15
Strategy and Governance
STEP 2
Strategy + Engagement
 Aligning engagement with strategic
imperatives and organizational values
 Workforce planning and retention
 Talent segmentation
17
Align Engagement with Strategy
Strategic Imperatives
Sustainable Performance
Contributing to Society
Efficiency, Effectiveness &
Business Alignment
Talent Outcomes
Definition Element
Engaged employees are…
A positive emotion only not a negative obsession
with work
Satisfied with their job
Values family
Health and well-being
Happy and enthusiastic
Meaningful work
Passion for one’s work
above and beyond
satisfaction
Alignment
Lean workforce
High-investment culture
Willingness to expend
discretionary effort to help
the organization
Loyal to their company
Interested in their work
Invested in, and identified by
work
Conscientious (hard-working,
ambitious, confident,
resourceful)
Self-motivated
High–Performance
Autonomy
Participative workforce
Being “active” at work and
going “above and beyond”
Proactive
Working at a level beyond
expectations
Empowered
18
Establishing Governance
Who
What
Program Governance
Front-Line Ownership
 Establishing program
philosophy/goals to
inform strategy
 Reinforcing culture
 Program management
 Taking action

Executive sponsor

Council

Owner
 Coaching
 Supporting
19

Leaders

Champions

Managers

Employees
Measure and Teach
And How Engagement Providers Can Help
STEP 3
Characteristics
Steps
How Does Engagement Improve
Performance?
Hire EngagementReady Employees
Leverage
Organizational
Drivers
Engage
Employees
Improve
Employee
Performance
Applicants that
profile as:
Organizations that
have:
Employees that
show:
Employees that
achieve:
Positive
Confident
Self-motivated
Ambitious
Energetic
Identify with work
Leadership skills
Relationship with
manager
The job fit
Culture of
employee value &
development
Reciprocal trust
Belief in mission
Company loyalty
Interest in work
Job satisfaction
Empowerment
Enthusiasm
Investment in work
Proactivity
Their goals and
more
Consistent
timeliness
Efficiency
Respectfulness
21
Improve
Organizational
Performance
Organizations that
enjoy:
High customer
satisfaction
Meeting divisional
goals
Achieving
organizational
financial goals
Low turnover
What is your biggest
measurement challenge…
…and how has it been
addressed?
Chat with your Neighbors
22
Common Challenges & Solutions
Challenge
Solution Area
Bersin Resource
Lack of program energy
Strategic alignment
Provider innovations
Engagement Primer
Engagement Solution Provider Review
Invalid data
Instrument/item validation
Improve response rates
Appropriate sampling
Delivering Accurate Metrics
Selecting Your Sample
Large administration
logistics
Provider expertise
Provider breadth/global reach
Engagement Solution Provider Review
Slow administration /
reporting
Provider technology / project
management
Engagement Solution Provider Review
Un-actionable results
Survey design & alignment
Drivers analysis
Reporting features
23
Engagement Primer
Creating an Actionable Survey
Participating Providers
 BlessingWhite
 Development Dimensions
International (DDI)
 eePulse
Thank You!
 Infosurv
 Kenexa
 OrgVitality
 Questar Data Systems
 Towers Watson
24
Commonly Measured Drivers
Percentage who
always/usually ask
89%
Engagement Driver
Career advancement
Goal-setting and feedback
89%
Recognition and non-monetary rewards
89%
Training and development
89%
Communication
78%
Teamwork and cooperation
78%
Job satisfaction
67%
Leadership skills
67%
Managerial skills
67%
Turnover intent
67%
Work-life balance and stress
67%
25
Logistics
Range
Average
Standard build times
1 to 30 days
7.7 days
Custom build times
1 to 30 days
13.9 days
Time to first report
1 to 15 days
6.6 days
Survey administration modes
• All can do online, paper and kiosk surveys
• 63% Mobile
• 50% Interactive Voice Response (IVR)
Geographic dispersion
• 38% specialize in multi-national, +50,000 employee
survey administrations
26
Teach (and Learn)
 Creating “dissonance” with normative comparisons
(i.e., norms)
• Internal
- Group comparisons
- Trends
• External comparisons
- Industry
- Country
- Best-in-class
 Instilling accountability through targeted manager
reports
 Actionable data
27
Innovative Ideas
 Alignment with strategy
 Hiring for engagement
 A focus on performance
 Future orientation
 Just-in-time delivery
28
Plan, Change, Integrate
STEP 4
What is your biggest obstacle
to taking action and making
change stick…
…and how has it been
addressed?
Chat with your Neighbors
30
After the Survey: Provider Offerings
Follow-up
Data
Collection
Technology
Training
Modules
Coaching
Consulting
Services
Action planning





Management development





Leadership development





Culture change





Team-building





Managing stress / WLB





Career building





L&D offerings assessment





High-potential development





Legend:  = 6-7 providers offer this;  = 3-5 providers;  = 1-2 providers
31
Sustainability through Integration and
Continuous Improvement
HR
Managers
Leaders
Selection & Assessment
Succession Management
On-boarding & Socialization
Learning & Development
Leadership Competencies & Development
Performance Management
Talent Management & Segmentation
Change Management Capabilities
32
Integration Across the Organization
Well-integrated engagement is subconscious.
Acting on the drivers happens every day, in every
work process, managerial encounter, and HR
program.
Deckers Outdoor says:
“Engagement is all around – employees are
emotionally connected to the organization.”
33
Evaluate and Refine
STEP 5
Evaluating Employee Engagement Efforts
 Test the metrics for validity and reliability
 Assess response rate
 Evaluate timeliness, quality and customer service
Has engagement improved?
 If so, which driver improvement programs had an impact, such as:
• Development initiatives
• Culture change efforts
• HR program improvements
Take those learnings, refine, and do it again.
35
In Conclusion
Engagement: The Fuel that Drives
Business Forward
37
Thank You!
Questions or Comments?
Let’s talk more!
email: Charles.Goretsky@bersin.com
: Charles Goretsky
email: Brenda.Kowske@bersin.com
: brendakowske
: Brenda Kowske