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Tele2 NL on ESS.The Power of Indexes and How ESS Helped us Overcome High Employee Turnover<br />

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2<br />Quick One: <br />Can you have high employee satisfaction and a high employee turnover at the same time?<br />Can you have high employee satisfaction and very few ambassadors in your company?<br />Can you have a low score on leadership and low employee turnover?<br />Do we agree that high employee turnover and very few ambassadors in your company hurt the business?<br />

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3<br />What is remarkable about these numbers?<br />5.3<br />&gt;32%<br />-18<br />

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4<br />So: “Yes We Can”<br />5.3 = Employee Satisfaction 2007 on a scale of 7<br />&gt;32% = Employee turnover 2007<br />&gt;40%&lt;1year tenure<br />-18 = Nett Promotor Score 2007<br />

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5<br />The Compelling Business Reason<br />Turnover is averagely estimated at <br /> SEK 304.685,- a head<br />

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6<br />The Compelling Business Event<br />Turnover is averagely estimated at <br /> SEK 304.685,- a head<br />So when 1/3 of 800 employees leave a year costs are approaching 80Mio SEK !<br />An attainable 30% improvement yields 24Mio SEK cost savings.<br />

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7<br />The Compelling Business Reason<br />Turnover is averagely estimated at <br /> SEK 304.685,- a head<br />So when 1/3 of 800 employees leave a year costs are approaching 80Mio SEK !<br />

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8<br />Reasons for High Turnover<br />Obvious aftermath of acquiring Versatel<br />Analysis showed Three reasons why people leave the company<br />Number 1: LACK OF ATTENTION BY MY MANAGER<br />Number 2 & 3 respectively: Perspective & Salary<br />Number 2 & 3 are issues that many companies deal with<br />Salary is easy to copy so not a differentiator one can compete on and not one we will and want to compete on (plus hardly a reason why people leave in their first two years of service)<br />In terms of importance the survey group weighted the number 1 reason with 60% and 2&3 respectively with 20% and 20%.<br />

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9<br />Low Performance on LSI & NPS<br />In addition to high employee turnover and its indicators<br />Low Performance on LSI: <br />Overall 56 (/100)<br />50% of managers (70) &lt;green treshold score of 63<br />NPS of -12<br />Overall a lot of ‘yellow’<br />

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10<br />LSI is ‘King’<br />We decided to embark on a mission<br />(1) Increasing overall LSI<br />(2) Increasing individual LSI<br />(3) Positive NPS<br />

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11<br />The Measures Taken<br />All managers to go through Situational Leadership Training<br />All managers to organize ESS workshops<br />All managers to have an individual LSI target (part of bonus)<br />An intensive Corporate Communications campaign on ‘Ambassadors’<br />In interim Barometer survey yielding interim LSI / NPS scores<br />CEO organizing ‘All Mgrs’ meeting with LSI themes<br />Tele2 Learning Center launching ‘LSI development paths’<br />

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12<br />LSI development paths<br />Development path 1 <br />Communicate goals & Performance<br />Development path 2 <br />Coaching & Feedback<br />Development path 1 <br />Communicate goals & Performance<br />Development path 3 <br />Handling Conflicts<br />Development path 4 <br />Building Trust<br />Development path 5 <br />Team Communication<br />Development path 2 <br />Coaching & Feedback<br /><ul><li>Has your immediate manager clearly communicated the goals for your work group?

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Do you regularly get to know how you are doing in your work?

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Do you think your performance review talks are productive?

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Do you think your immediate manager can handle conflicts?

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Does your immediate manager show you respect?

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Do you get sufficient information from your immediate manager?

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Do you think your work group is managed in a satisfactory way? </li></li></ul><li>13<br />

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20<br />Space for text<br />More text<br />More text<br />

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23<br />What is remarkable about these numbers?<br />5.4<br />&lt;15%<br />+12<br />

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24<br />Question<br />What do you think ‘leavers’ indicate now as the number one reason for their exit?<br />

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25<br />Question<br />What do you think ‘leavers’ indicate now as the number one reason for their exit?<br />“Perspective”<br />

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26<br />Necessary Conditions for Succes<br />Compelling Business Reason<br />CEO that firmly believes in ESS but more importantly in the indexes (in that he doesn’t let his direct reports get away with ‘circumstantial’ indicators’)<br />Structural embedding leaving very little room for escape<br />

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