Research studies show that less than one-third of the workforce is highly engaged. Employee engagement not only impacts your bottom line through higher absenteeism, lower productivity and negativity, but also through the relationships these employees have with your customers and suppliers. Over the past three years employers have focused less attention on engagement strategies and more on fiscal survival. In tough economic times, cost cutting measures hit employees the most through staff reductions, wage freezes or reductions and the elimination of employee incentive programs. This has left the members of organizations feeling over worked and unappreciated. Improving engagement levels by focusing on employees needs is a cost effective way to ignite motivation and regain the commitment of your employees without a huge outlay of funds. Creating Engagement through Employee Needs will offer participants an understanding and awareness of:  The cost of employee engagement to an organization  Why employee needs are relevant to engagement  The theoretical support to the significance of need as found by Abraham Maslow (1943 - A Theory of Human Motivation)  How needs can build engagement or create disengagement  How to create and implement cost effective engagement strategies that serve employee needs

1. Creating Engagement through
Employee Needs
Cindy Gordon CA CPCC
Culture Shock Coaching

2. The Changing Face of the Workplace

3. What is Employee Engagement
• The employee’s willingness and ability to
contribute to the success of the Company.
www.towerswatson.com
• Level of discretionary effort an employee is
willing to contribute.

4. Why Engagement Matters
• The lost productivity of actively disengaged
employees costs the US economy $370 BILLION
annually. (Gallup)
• 78% would recommend their company’s products of
services, against 13% of the disengaged. (Gallup)
• Engaged employees generate 43% more revenue.
(Hay Group)

5. Why Engagement Matters
• 69% of employees would work harder if they were better
recognized.
• Those companies with a highly engaged workforce
improved operating income by 19.2% over a period of 12
months, while those companies with low engagement
scores saw operating income decline by 32.7% over the
same period. (Towers Watson)
• Engaged employees in the UK take an average of 2.69
sick days per year; the disengaged take 6.19. (Gallup)

6. Benefits of Engagement
• Better performance;
• Better communication;
• Greater customer satisfaction;
• Better team work;
• Greater commitment;
• Lower employee turnover and a greater ability to
recruit top performing people.

7. Employee Productivity
• Highly Engaged 125%
• Engaged 100%
• Somewhat engaged 75%
• Disengaged 50%

8. The Jack Welsh Theory
20% are high performers (highly engaged)
10% should be out of the company (disengaged)
The rest are somewhere in between (engaged
and somewhat engaged)

9. Happy Place Company
The Cost of Lost Productivity
• Scenario 1:
 20% highly engaged
 10% disengaged
 35% engaged
 35% somewhat engaged
 Annual payroll of $10,000,000

10. The Cost of Lost Productivity –
Happy Place within
Level of %
Company
% Performance Performance
Engagement Organization Level Impact
(A) (B) (A x B)
Highly 20% 125% 25%
Engaged 35% 100% 35%
Somewhat 35% 75% 26%
Disengaged 10% 50% 5%
CURRENT PERFORMANCE POTENTIAL (C) 91%
% OF LOST PERFORMANCE (100% – C) 9%
TOTAL ANNUAL WAGES AND SALARIES $10,000,000
VALUE OF LOST PRODUCTIVITY DUE TO $900,000
ENGAGEMENT

11. Happy Place Company
The Cost of Lost Productivity
• Scenario 2:
▫ Employee engagement shifts the engagement level
of the middle 70%
 20% of the 35% engaged employees become highly
engaged
 20% of the 35% somewhat engaged employees
become engaged

12. The Cost of Lost Productivity –
Happy Place within
Level of
Engagement
% Company
Organization
% Performance
Level
Performance
Impact
(A) (B) (A x B)
Highly 27% 125% 34%
Engaged 35% 100% 35%
Somewhat 28% 75% 21%
Disengaged 10% 50% 5%
CURRENT PERFORMANCE POTENTIAL (C) 95%
% OF LOST PERFORMANCE (100% – C) 5%
TOTAL ANNUAL WAGES AND SALARIES $10,000,000
VALUE OF LOST PRODUCTIVITY DUE TO $500,000
ENGAGEMENT
VALUE OF PRODUCTIVITY IMPROVEMENT $400,000

13. Happy Place Company
The Cost of Lost Productivity
Assuming -150 employees:
Scenario 1 Scenario 2
Highly engaged 30 40
Engaged 53 53
Somewhat engaged 52 42
Disengaged 15 15
Total employees 150 150

14. The Cost of Lost Productivity
• Conclusion:
▫ By improving the engagement level of just 20% of
the middle 70% of your workforce, a 5%
improvement in overall productivity was achieved.
▫ This effectively improved the value of productivity
being generated by the company’s workforce by
$500,000.

15. MASLOW’S HIERARCHY OF NEEDS

16. HIERARCHY OF EMPLOYEE NEEDS

17. Types of Motivators
• Extrinsic
 Tangible rewards e.g.: pay raises; bonuses; benefits.
 Other people control their size and whether or not
they are granted.
• Intrinsic
 Psychological rewards that employees get from
doing meaningful work and performing well.

18. HIERARCHY OF EMPLOYEE NEEDS

19. Safety and Security
• Mission Statement – James Madison University
Protecting the health and safety of employees, students, guests, and
the environment is the primary concern of all of us at James
Madison University. This goal can be met through the development
of a comprehensive and effective environmental health and safety
plan that endeavours to eliminate unsafe conditions and minimize
the impact of hazardous situations. Such a program can benefit the
university community by reducing illness and injury to students and
personnel, preventing property damage, and preserving the
environment.
(http://www.jmu.edu/safetyplan/overview/mission.shtml)

20. HIERARCHY OF EMPLOYEE NEEDS

21. HIERARCHY OF EMPLOYEE NEEDS

22. HIERARCHY OF EMPLOYEE NEEDS

23. HIERARCHY OF EMPLOYEE NEEDS

24. Applying the Hierarchy of Needs
• Retail grocery chain
• Full time employees – relatively low turnover
• Part-time employees – mostly teens and
students with high level of turnover
• Direct contact with customers by many
employees
• Some employees work during the day, some
nights or weekends

25. Making Monday the Best Day of the
Week