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  1. Achieving Corporate Objectives through Employee Engagement One Source Total Recognition® Presented by: John Doe, Senior Vice President October xx, 2008
  2. What Keeps an Employee Engaged? 8 Implementation Process Flow 26 - 2 - Agenda Summing it Up 4 Value Proposition 5 Our Approach 6 Technology Behind the Solution 21 Marketing Communications 24 Formal & Informal Events 25 Top Five Main Employee Organization Concerns 9  Turnover Employee Turnover 10  Create a Communication Culture 12  Inspire Leadership 13  Continuous Training and Development 15  Encourage Diversity 16 Organization Concerns Linked with Desired Behaviors 18 Investment Analysis 27 Our Journey to Today 28 Total Recognition Value of Partnership 29 Re-cap: 3 year Anticipated Results 30
  3. The New Standard Corporation Sales and marketing consulting company that provides solutions to organizations to improve employee communication and develop performance-based programs for increasing customer satisfaction and product quality. - 4 - Summing it Up Top Three Prevailing Themes  Quality Customer Experience/Satisfaction/Retention  Engaged Workforce/Dedicated/Recognition Culture  Improved Growth/sales and sustained Profits Anticipated 3-Year Results:  100% Employee Participation  Increase Employee Engagement by 20 to 30%  Improve Customer Satisfaction  Create an Engaging Workplace  Boost Sales and Profits  Growth and Development of Employees  Develop a Recognition Culture Recognition is a driver that will deliver effective employee engagement, enhance employee motivation and satisfaction, increase employee productivity, and contribute to improved organizational performance. Organizations that successfully implement employee engagement programs tend to have a recognition strategy and architecture that are integrated, multi-faced, and multi-tiered.
  4. - 5 - Value Proposition As a leading provider in global recognition solutions, it has been our experience that people performance starts at the top to mobilize an organization toward achieving their goals.  As the nucleus, our client’s priorities help us to link rewards and performance to corporate goals and objectives in order to strategically deliver a solution that supports corporate culture and cultivates company values.  It is important that employees not only know their contribution is valued, but that they are recognized for their contribution.  Through our successful program(s) our clients have measured success not just in terms of money [spent, saved, earned], but also in terms of optimizing the return on investment in their employees.
  5. Our strategy is to create brand buy-in internally by creating a points program that will educate, motivate, involve and engage The New Standard Corporation’s employees to ensure the brand, its message, values, and strategy are effectively communicated throughout the organization. - 6 - Our Approach By implementing our One Source Total Recognition® methodology, we can consolidate all of your employee recognition initiatives under one unique employee recognition program.  Customized to meet your company’s goals & objectives  Flexible to accommodate TNS’s changes  Provide increased efficiency, control and selection
  6. The Total Vision Recognition® (Total Vision) is a complete points-based recognition portal that binds information technology into the fabric of your recognition culture. It provides greater program visibility with robust backend reporting functionality. Total Vision can handle the demands of companies of all sizes. This technologically advanced application is adaptable to diverse industries, manages multiple initiatives simultaneously, and offers extensive customizable features. - 7 - Our Approach One Source Total Recognition® methodology has three phases. Each phase plays a key role in developing a program that is perfect for your needs. Phase 1: Develop Phase 2: Implement An interactive process during which our recognition experts will work with your internal team to understand your organization’s critical business objectives, mission, vision, core values and desired employee behaviors. By gathering this information, our team will be able to fully understand your objectives in order to link them with the desired employee behaviors to determine an appropriate program design. Phase 3: Measure Assessment and measurement is an essential component of the recognition process. Successful evaluation of an employee’s engagement is through employee assessment tools. The program is designed to assist your organization in determining the impact made to your solution. Post program data is collected and compared with pre-program baselines, control group differences and expectations to generate performance metrics.
  7. Employee engagement is defined as "the extent to which employees commit to something or someone in their organization, how hard they work and how long they stay as a result of that commitment.“ Corporate Leadership Council. (2004). Driving performance and retention through employee engagement. Washington, DC: Corporate Executive Board. - 9 - What Keeps an Employee Engaged? People  Sr. Leadership  Managers Compensation  Pay  Benefits  Work/Life Balance  Physical Work Environment  Safety  Intrinsic Motivation & Values  Work Tasks  Resources Opportunities  Career Development  Recognition  Company Policies  HR Procedures Quality of Life Work/Values Processes & Procedures Source: Hewitt Associates LLC.  Coworkers  Customers  25% of workers have been at the same job for less than one year.  45% of workers want to change jobs every 3-5 years.  150% is the cost of employee turnover at current salary level (tangible and intangible).  A worker will change jobs ten times before age 40.  18 is the number of months where an employee is most vulnerable to leaving.
  8. TNS’s Top Five Main Employee Organization Concerns Turnover Employee Turnover According to the U.S. Department of Labor, it costs one-third of a new hire’s annual salary to replace them. Direct costs include advertising, sign on bonuses, headhunter fees and overtime. Indirect costs include recruitment, selection and training and decreased productivity while current employees pick up the slack. Create a Communication Culture Employee engagement and communication is important, even necessary, to the success of any organization. Inspire Leadership  Step Up Middle Management The dividends of developing a reputation for ethical leadership leads to fewer legal problems, increased employee satisfaction, increased employee commitment and increased ethical conduct.  Engage Senior Leadership Executives that exhibit a much higher level of engagement in the organization relative to their employees drives engagement in the organization. Continuous Training and Development Organizations that outperform their competitors cite the opportunity for learning and development as one of the most important elements in building employee engagement. Encourage Diversity Today’s rapidly changing demographics and increasing emphasis on a global world continue to move workplace diversity to the forefront of effective organization strategies.
  9. The Cost of Turnover Call Center Rep  Estimated turnover cost: $8,000 - $12,000 depending on industry. Costs include: advertising, screening, recruiter salary, manager interview time, trainer salary & equipment, agent salary while in training and not in production, cost of learning (mistakes) during transition to average number of calls. Retail Worker  Estimated turnover cost for an 8/hour employee: $3,500 Costs include: customer service disruption, emotional costs, loss of morale, burnout/absenteeism among remaining employees, loss of experience, continuity, and “corporate memory”. - 11 - SHRM 2005; Q&A: Training & Retaining Good Reps. “Estimated costs of turnover in the United States economy: $5 trillion per year. The cost of disengagement: $300 billion Disengaged employees miss an average of 3.5 more days per year.” - Frank, F.D., Finnegan, R. P., & Taylor, C.R.,The Race for Talent Getting Engaged by Steve Bates, HR Magazine, February 2004.
  10. - 12 - How Does Your Organization Compare? “Research shows that engaged employees perform better and are more optimistic about their work goals. Employers with engaged employees tend to experience low employee turnover and more impressive business outcomes.” Kevin Sheridan, HR Solutions Employee Engagement HR Solutions, Inc, 2007. 59% 16% Actively Disengaged 16% 25% Ambivalent 59% Engaged 25%
  11. - 13 - Create a Communication Culture Communication is essential for employee retention, positive morale and good customer service Good communication is a hallmark of a high-retention work environment. Source: sharedHR Monthly Bulletin, Good Communication results in Employee Retention. “Engaged Employees demonstrate higher productivity, loyalty and stamina, and that usually contributes to a healthier bottom line. They are easier to retain, and they help foster the retention of their fellow employees. And employees who are given an even broader culture of communication yield even greater benefits. They tend to be innovators and thought-leaders who drive progress for their organization.”  In a recent survey conducted by Chart Your Course, International, 69% of respondents replied that they would like to see their supervisors “be better at communicating”.  In a survey conducted by Watson Wyatt (2008), employees stated the number on reason for leaving was the poor relationship with their supervisors (many attributing this to poor communication).  High-access Organizations shares information and communicating to the highest extent possible. Employees, given the maximum information, will make good business judgments, and react more quickly to the changing needs of customers and the environment.  Low-access Organizations have difficulty in responding to change, traditional hierarchical management, failure to change and satisfy customer needs and poor morale. Organizations experiencing problems due to low access to information rapidly can improve a wide array of issues by improving communications. - itzblog.com, May 16, 2007. Good communication: “An organization characterized by high access to information”.
  12. 700 people working in a variety of jobs about how their bosses treated them included men and women of various ages and races in the service industry and manufacturing from companies large and small. - 14 - Stepping Up Middle Management Source: Wayne Hochwarter, Associate Professor of Management in the College of Business at Florida State University, Florida State University Study, January 2 ,2007. “Leading with integrity is at the root of ethical leadership. Broadly defined, ethical leadership is the demonstration of normatively appropriate conduct through personal actions and interpersonal relationships and the promotion of such conduct among followers through two-way communication, reinforcement and decision-making process.”  The study found that Employees don’t leave their job or company, they leave their boss.  39% of workers said their supervisor failed to keep promises.  37% said their supervisor failed to give credit when due.  31% said their supervisor gave them the “silent treatment” in the past year.  27% said their supervisor invaded their privacy.  23% said their supervisor blamed others to cover up mistakes or to minimize embarrassment. - Society for Human Resource Management. (n.d.). SHRM HR glossary of terms, October 17, 2005.
  13. Hewitt finds that Employee Engagement Higher at Double-Digit Growth (DDG) Companies. - 15 - Engage Top Management Hewitt found that DDG companies generate higher levels of employee and executive engagement than SDG companies. Source: Hewitt, Research Brief, Employee Engagement Higher at Double- Digit Growth companies: Double-Digit Growth and Engagement. 2004. People are a key component of any company’s ability to execute its strategies and achieve its goals. Companies who are able to better engage their people also deliver better business performance and return to shareholders. DDG companies effectively measure and reward contribution and employee engagement. Effective leaders who are committed to growth and success are at the helm of DDG companies. These leaders are engaged, motivating, and inspiring their employees toward a growth mind-set.  Employee Engagement at DDG Companies (63%) exceeds average employee engagement at Single Digit Growth Companies (SSD) by over 20%.  28% more employees at DDG companies are more likely to have confidence in their organization’s future business direction, and to feel that the company is positioning itself for future growth.  When looking across all companies, executives’ engagement levels are 25% higher than for other employees. In DDG companies, however, executive engagement levels are 33% higher than for other employees – this manifests itself in how leaders speak about the company and their confidence in the future.  DDG companies have 39% more employees who are highly engaged, thus contributing even more to the companies success. Conversely, DDG companies also have 45% fewer highly disengaged employees who often drain the company’s ability to perform effectively.  DDG companies demonstrate higher levels of engagement as tenure increases.
  14. - 16 - Continuous Training & Development 40 hours of training a year for every employee is recommended by The American Society for Training and Development. This is consistent with the emphasis employees place on the opportunity to grow and develop both their skills and career while employed. Source: Susan M. Heathfield, About.com, Training: Your Investment in People Development and Retention, 2008. “Organizations that invest in opportunities for growth and learning generate significant returns on employee retention, motivation, trust and initiative.” - Strategic Training and Development: A Gateway to Organizational Success”, SHRM, 1st Quarter 2008.  The chance for ongoing development is one of the top five factors employees want to experience at work.  Training that helps each employee grow their skills and knowledge to better perform their current job is appreciated as a benefit.  The inability of an employee to see progress is often a cited reason for leaving an employer.  Learning provides the basis for personal growth, job expansion, and career opportunity.  Top performers are 50% more likely to link their learning and development strategy to their company’s strategic plan.  Training also increases employee loyalty, and thus retention, and helps attract the best possible employees. Source: Raymond Baumruk and Ted Marusarz, Employee Engagement: Insights into Why It Matters and What You Can Do About It.
  15. - 17 - Encourage Diversity According to diversity practitioners, the most successful outcomes that resulted from effective diversity management in the organizations were: It is important for an organization to create and maintain a work culture that fosters effective diversity management. Source: SHRM 2007 State of Workplace Diversity Management: A Survey Report by the Society for Humban Resource Management, February 2008. “New, innovative solutions must be continually created, implemented and evaluated to find, keep and motivate employees who require different things from the work experience.” - “A Workforce Engagement”, WorldatWork Press, 2007.  Creating a work environment or culture that allows everyone to contribute all that they can to the organization.  Achieving appropriate representation of racial and ethnic groups.  Enhancing the ability of people from different backgrounds to work effectively together.  96% of HR professionals indicated that this type of work culture was extremely or somewhat important for developing effective diversity management.  75% of HR professionals believe it was extremely important for their organizations to leverage the diverse talents of their workforce.  94% of HR professionals indicated that enhancing their employee’s diversity management skills was extremely or somewhat important.
  16. - 18 - Diversity Accomplishments When asked to what extent their organization’s diversity practices accomplished specific objectives: More than half (52%) reported that their organization’s practices had created a work environment or culture that allowed everyone to contribute all that they could to the organization to a “large extent”. Source: SHRM 2007 State of Workplace Diversity Management: A Survey Report by the Society for Human Resource Management, February 2008.
  17. Organization Concerns Linked with Desired Behaviors Communication - 19 - Organization Concerns Desired Employee Behaviors Create a Culture Teamwork Inspire Leadership Transfer of Knowledge Encourage Diversity Loyalty Trust Respect Think Creatively Communicate Effectively Company Pride Continuous Training & Development Focus on Achievement Turnover Employee Turnover Choosing to Engage Employee Engagement
  18. Organization Concerns Linked with Desired Behaviors Concerned Behaviors Communication Incentives - 20 - Desired Behaviors ROI Loyalty • Turnover Turnover • Create a Communication Culture • Inspire Leadership • Continous Training and Development • Encourage Diversity • Voluntering • Mentoring • Coaching • Longevity • Respect for Fellow Worker
  19. Organization Concerns Linked with Desired Behaviors - 21 - Incentives Major Concerns Desired Behaviors Communicate Employee Engagement ROI
  20. Organization Concerns Linked with Desired Behaviors - 22 - Major Concerns Desired Behaviors Incentives Communication ROI
  21. Organization Concerns Linked with Desired Behaviors Desired Behaviors Major Concerns - 23 - Incentives Communication
  22. - 25 - Solution Total Engagement Points Program: A revolutionary program entirely designed to achieve an organization’s goals by focusing on the drivers that impact employee engagement. “The answer is employee engagement or the ability to capture the heads, hearts, and souls of your employees to instill an intrinsic desire and passion for excellence. Engaged employees want their organization to succeed because they feel connected emotionally, socially, and even spiritually to its mission, vision, and purpose.” - “Human Sigma”, John H. Fleming, Ph.D., and Jim Asplund
  23. Marketing communications is more than the coordination of outgoing messages between media and the consistency of the message throughout. You must capture the attention of the employees so that they properly attribute the message to your new program and are motivated to participate. While there are literally hundreds, if not thousands, of marketing vehicles available, the following are examples of the vehicles available to help roll out a new recognition program in an effort to create awareness and excitement among employees: Newsletters Voicemail/Broadcast - 26 - Marketing Communications Applying an employee-focused marketing communications campaign will:  Create awareness and participation.  Help raise more employees to a deeper level of commitment and support regarding the company’s mission, vision and core values. Intranet Brochures Posters Postcards Virtual Meetings E-mail Blasts Paycheck Insert Kiosks Meetings/Gatherings Memos Letters
  24.  Online Reporting  Dedicated Relationship Coordinator  Local Management  Vendor and SKU Management  Employee Data Management & Security  Fulfillment & Distribution  Branded Recognition Solution  Recognition Portal  Multiple Opportunities to be Recognized  Hassle-free Return Policy  24/7 365 Availability - 28 - Total Recognition Value of Partnership  Interactive Voice Response Ordering Available  Extensive Web-based Gift Catalog  User Friendly Ordering System  Activity Order & History Statements  Updateable User Profile  Dedicated 800# Call Center Capabilities  Program Flexibility  Global Supply Chain Management Attributes  Extensive Gift Selection  ISO 9001 Certified  SAS 70 Compliant  Merchandise Guaranties  Extended Warranties  Proven Track Record  98% Customer Retention Rate  Leader in Innovation  Industry Thought Leader  Award Winning Management Team  High Retention Rate  Ownership Commitment
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