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Engagement 2.0

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Engagement 2.0

  1. 1. Employee Engagement Where Have We Been? Where are We Going? Lewis Garrad Managing Director, Sirota Consulting
  2. 2. 16% Difference in stock performance of a highly engaged company vs. their matched comparisons 25 years …since the term “employee engagement” was coined 7,261 Employee engagement related books on Amazon.com 1 in 5 Proportion of disengaged people in the global workplace
  3. 3. • Founded in 1972 by a team of organisational psychologists • We survey 1-1.5 million employees every year in companies like these: WE HELP FIND PEOPLE SOLUTIONS TO BUSINESS CHALLENGES
  4. 4. 1 EMPLOYEE ENGAGEMEN T: WHAT IS IT? Employee engagement is the extent to which employees think, feel, and act in ways that represent high levels of commitment to their organization. 2 Engaged employees are motivated to contribute 100% of their knowledge, skills, and abilities to help their organization succeed. 3 Engagement is not merely about making employees happier at work; it is about bringing out the best in people and tapping their full potential on a day‐to‐day basis.
  5. 5. We’re Living in the Era of Employee Engagement Top Challenge for CEOs Human Capital: Attracting, retaining, engaging employees An Abundance of Advice Exists 7,261+ employee engagement related books on Amazon.com Spending is on the Rise Employers are investing millions annually on Engagement Programs
  6. 6. 18th Century 19th Century 20th Century 21st Century Industrial Age Efficiency Knowledge Age Analysis & Computing Conceptual Age Synthesis & Sense making Agricultural Age Manpower Service Age Connection & Empathy Adapted from Daniel Pink’s Whole New Mind Volatility Uncertainty Complexity Ambiguity Perhaps because Engagement speaks to our challenges Disruptive
  7. 7. 89 77 81 78 76 61 64 60 75 90 2008 2009 2010 2011 2012 2013 2014 Rate XYZ on Being Responsive to Customers 77 79 76 74 79 74 69 65 75 85 2008 2009 2010 2011 2012 2013 2014 I Understand my Company’s Business Strategy 75 68 69 67 66 69 69 65 75 85 2008 2009 2010 2011 2012 2013 2014 I Have the Opportunity to Learn and Grow 55 69 74 80 79 84 85 50 70 90 2008 2009 2010 2011 2012 2013 2014 XYZ is Knowledgeable About Customer Needs
  8. 8. About performance? About leadership? About managers? About employees? So what have we learnt over the last 25 years?
  9. 9. Efficiency Innovation Customer Service Sales Performance Turnover Team Performance Stock Prices Employees’ satisfaction ratings explained 22% of the difference in turnover. Customer focused retail stores demonstrated a 10% greater year over year sales increase. Stock prices in high morale companies increased 16% in one year. Low morale companies only increased 3% in the same year. An increase in employee attitudes was linked to 28 million dollars in revenue due to increased customer satisfaction. Engaged steel mill employees required 34% fewer labor hours to produce a ton of steel. National Weather Service meteorologists working on highly engaged teams were more accurate at predicting tornadoes. Financial services employees who felt supported by their bosses were significantly more intellectually invested in their work.
  10. 10. 40% Leadership & Mgmt Behaviour/ Style 30% Organisational Factors 30% Individual Employee Factors How is Engagement influenced?
  11. 11. Leaders Managers Engagement Performance About 15% of Engagement is related to this About 25% of Engagement is related to this We know that leaders are critical
  12. 12. “This company is a great place to work. It’s meaningful and I’m proud of it” “I am motivated to do whatever it takes , every day” Individual Fit & Fulfillment • Company cares about me, I fit in • What I do matters (job itself matters, sense of challenge and achievement) • I have a future with a company that has a future (career and development opportunity) Senior Leadership Fosters climate of . . . • Company as a “winner” with positive future • Great “deal” for employees (relationship with the company, roles, future) Local Management Fosters climate of . . . • Partnership and trust, “we’re in this together” • Openness, involvement • Higher performance (expectations, feedback) Analysis of 68 companies varying in size and global scale What? Who? Effectively Functioning Teams • Openly discuss barriers to effectiveness, make improvements • Do whatever it takes, “there for each other” as a team • Higher performing (if no extra-team barriers) But we need to be clear about roles
  13. 13. Employee EQ Employee Engagement Employee Performance Manager EQ Manager Engagement Manager Performance Multinational Hospitality Group: N=1034, 245 Managers, 799 Employees. 9 month time frame
  14. 14. 91 86 76 75 60 65 70 75 80 85 90 95 30 Day 90 Day 180 Day 365 Day Motivated to go above and beyond We need to stop de- motivating them We need to stop trying to motivate people
  15. 15. 50 52 59 61 65 71 71 73 79 90 Leaders know how to build a culture of employee engagement. Good job of taking action on our employee engagement data. EE program has had positive impacts on business outcomes. Leaders understand the role they play in improving engagement and performance. Leaders work hard to create an environment of employee engagement. Effective at measuring employee engagement. Effective at analyzing our employee engagement data. Effective job making the business case for engagement. Snr leaders: engagement to be a key business driver and performance indicator. Snr leadership: recognizes the value of employee engagement. %Favorable Research with The Engagement Institute Where is the impact? Even after all this time, only half feel they know how to act on the data
  16. 16. 70% 30 64% 48 52% 48 43% 48 Managers Individual Contributors I believe the results of this survey will be used constructively by management. The results of the last employee survey were used constructively by management.
  17. 17. Focus on performance Develop Engaging leaders Build Engaging Cultures Make better use of the data So what needs to happen?
  19. 19. Second, we need to develop Engaging Leaders Leader Personality Decisions and Behaviors Climate and Culture Employee Engagement Performance How You Behave How You Affect Your Team Who You Are
  20. 20. Competence Competencies Character Ability to get results KPIs Performance Management KSAs & Behaviors critical to mission 360s and Surveys Leadership Development Personality & Values Individual Assessments Selection & Coaching What makes for an Effective Leader? Based on George Hollenbeck’s (2009), “Executive Selection—What's Right … and What's Wrong” Industrial Organizational Psychology article
  21. 21. DNA of Engagement: How Organizations Create and Sustain Highly Engaging Cultures Third, make it happen every day
  22. 22. Alignment Philosophy Policies & Practices Communication Collaboration Assessment Leadership Business Impact 1. Engagement is a business imperative 2. Engagement is part of accomplishing the mission 3. Engaging employees is part of HR practice decisions 4. Open, transparent, 2-way communication 5. Structure and space that promotes collaboration 6. Regular assessment & feedback 7. Managers empowered to build Engagement 8. Engaged teams are shown to perform better
  23. 23. Onboarding Surveys Engagement Surveys Exit Surveys Performance Data • Manager Support at Day 10  Employee Engagement at Day 180 • Non-Financial Rewards in 2010  Engagement Increases in 2011 • Awareness of Career Growth Opportunities  2x Likely to Stay • 1% Increase in Store Engagement  $1,444.29 in quarterly sales Last, start connecting the dots
  24. 24. What am I saying? Engagement is an important business measure Over the last 25 years, we have learnt a lot But many organisations want to see more impact The next phase is about innovating what we DO rather than what we measure EE P Performance driver Leaders matter EQ matters Natural motivation 52 % 48 Good job of taking action on our employee engagement data Performance Data Culture Leadership
  25. 25. THEENGAGINGLEADER.COM SIROTA.COMSTAY IN TOUCH http://sg.linkedin.com/in/lewisgarrad/

Notas do Editor

  • Get the data
    Many organizations utilise engagement surveys, to evaluate commitment and help managers strengthen team performance.
    Lots of companies use personality profiling, for selection or development coaching. TEL combines both elements.
    Make the link
    Survey data shows lots of variance in the results: many managers struggle to take action, believing the issues are outside their ability to influence.
    Yet research shows that the line manager has the biggest influence on employee attitudes.
    Take action
    TEL looks at this manager:team dynamic in a unique way. Using validated instruments, the report provides each manager with a clear sense of how their behaviour influences team engagement – and what to do to about it.

    Combines validated Personality profiling with team engagement data – analysed and linked in a simple report lay-out
    Provides a clear picture of Who you are; How you behave and How this affects your team
    Enables managers to understand how to use their individual traits and behaviour to maximum advantage
    Recipients receive online help to interpret the results and decide on actions. Can easily be integrated with more focused coaching assistance.