Why is employee engagement hot? 1

Engagement is a major key to future success How can you make your organisation and your employees more productive? What really motivates every individual employee? How can you create commitment and solidarity? How can you promote and retain the talent in your organisation? How can you align your employees with your organisation’s vision and objectives? GLOBALISATION INDIVIDUALISATION HUMANISATION DEMOGRAPHICS CONTINUOUS CHANGE

What is employee engagement? 2

Engagement, more than satisfaction motivate employees intrinsically to strengthen the competitiveness of the organisation (Re)vitalising HR Employee Value Organisational Value Dissatisfied Satisfied Engaged Transforming HR satisfy employees to bind them to the organisation Step 1 Step 2

5 features of an engaged employee Be loyal and respect the organisation! Do your employees behave loyally? Go the extra mile! Is your employees’ performance excellent? Recommend and defend the organisation with pride! Do your employees behave like ambassadors? Love the job, have fun! Do your employees show passion? Take on your work with passion! Are your employees bursting with energy?

Average distribution dissatisfied – satisfied – engaged Source: SD Worx – Engagement Study © 61% 17% 22% dissatisfied satisfied engaged

Why invest in employee engagement? 3

Stronger customer relations Loyal builders of the future Productivity and extra efforts Lower costs Optimisation and innovation Image and reputation 1 2 3 4 5 6

Stronger customer relations Engaged employees maintain much better relations with your customers. They consider the communications with and understanding of customers to be excellent in no less than 98% of all instances. 1

Stronger customer relations Customer relations are rather bad Customer relations are rather good Source: SD Worx – Engagement Study © 93% 98% 2% 7% 66% 34% engaged satisfied dissatisfied

Service profit chain Engaged employees deliver value for their customers and create engaged customers who in turn foster organisational success Employee engagement Customer engagement Revenue growth Profitability

Loyal builders of the future Engaged employees have no intention to leave the company. At the same time you ensure that your investment in your human capital bears profit in the future and that your organisation's continuity is assured. 2

More loyalty, less employee turnover Intends to stay with the organisation for a long, indeterminate period Is looking for another employer Is actively looking for another employer 31% 47% 14% Dissatisfied Satisfied Engaged 87% 17% 3% 98% 6% 2%

Productivity Engaged employees perform better. Growth and engagement go hand in hand. 3

Higher productivity Engaged employees are 50% more productive than colleagues who are not engaged dissatisfied satisfied engaged

Higher productivity +13% increase in productivity 40% 50% 10% Source: SD Worx 10% 50% 40% dissatisfied satisfied engaged

Lower costs Engagement also offers advantages on the expenses side. Dissatisfied employees are absent twice as often from work as their engaged colleagues and have a substantially greater intention to leave the company. The costs of absenteeism and employee turnover are huge and therefore an even bigger reason to develop engagement. 4

Sick leave - 53% cost of sick leave Yearly average cost per employee: € 816 Source: SD Worx 10% 50% 40% dissatisfied satisfied engaged 40% 50% 10%

Employee turnover Employee turnover % Source: SD Worx – Engagement Study © 3% 9% 24% dissatisfied satisfied engaged

- 44% turnover cost Turnover cost / employee 75% of the yearly total reward package 40% 50% 10% Employee turnover Source: SD Worx 10% 50% 40% dissatisfied satisfied engaged

Innovation & optimisation Employee engagement drives innovation and optimisation. It is no surprise that in traditional organisations the number of engaged employees is 8 times less than in innovative organisations. 5

Innovation engaged satisfied dissatisfied Source: SD Worx – Engagement Study © Traditional organisation Innovative organisation 24% 69% 7% 47% 50% 3%

Image & reputation And finally, engaged employees help you build your image. They will actively promote their organisation in their own surroundings. 6

Image engaged satisfied dissatisfied Source: SD Worx – Engagement Study © Organisation with bad reputation and image Organisation with good reputation and image 22% 68% 10% 53% 45% 2%

I talk about my organisation with pride Ambassadorship Source: SD Worx – Engagement Study © 100% 82% 24% dissatisfied satisfied engaged

How to create employee engagement? 4

Impact Esteem Opportunities for growth Mission, vision & strategy Culture Support Social environment Working conditions Comp & ben Job security Job Source: SD Worx – Engagement Study © Impact on engagement Scores items

How to build and gain employee engagement? 5

Our approach COMMUNICATION COMMUNICATION Intake Action plan Evaluation Current state Future state Project 1 - ... Project 2 - ... Project 3 - ... Project 4 - ... Interviews 1 Strategic workshop 2 “ Future state” 3 Dashboarding 4 Intake 1 Communication 2 Execution 3 Processing 4 Analysis & reporting 5 Communication 6 Action plan 7

Measuring the current state Our employee engagement survey I am enthusiastic in my work I am motivated to deliver a strong performance I believe I make a clear contribution to the company’s results I like to work hard I perform better than I am expected to The buzz and drive in my immediate environment (colleagues, managers, etc.) stimulate me in my work Performance Score Age: All values (5) Age 2: All values (5) Score

Actions you might be taking right now

Action items dissatisfaction satisfaction engagement Social relations Internal communication … Reward communication Flex income plan Wages positioning Strategic reward policy … Team scan Team assessment MBTI Leadership development (social architect) … Stress & ergonomics Wellfare policy Work-life (homeworking, ...) …

Action items dissatisfaction satisfaction engagement Culture analysis Values workshop Leadership brand Change management Employer branding … Career development Career counselling Learning & development Development centre Job rotation Talent management Succession planning Job analysis Job crafting Performance management Assessment centre Talent review Job & organisational design … Strategic workshops Performance management Internal communication KPI’s … Leadership brand Leadership development Team building Feedback & communication Motivation of employees Coaching …

Need help with increasing employee engagement? Go to http://www.sdworx.be/engagement and give us a call

Good luck! Brouwersvliet 5B 2000 Antwerpen Tel 078 15 90 27 www.sdworx.com Koen De Valck Managing Consultant [email_address]