Mashreq Bank’s Engagement Journey: Driving Business Success Through Engagement Culture

ASHOK GOPAL

HEAD – TALENT & OD

MASHREQ BANK

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Established in 1967 as Bank of Oman,Mashreq is one of UAE's oldest and

most prominent financial institutions.

Mashreq is among the highestperforming banks in the region bothfrom a business standpoint and for

leading banking innovation.

With over 50 branches, we continue tolead the way in innovation as the firstUAE bank to offer chip-based credit

cards, digital point-of-sale readers, andmany more.

The Mashreq Engagement Culture – both the outcome and process have received globalvindication

Mashreq is one of an elite group of 36 companies across theworld to win the Gallup Great Workplace Award (GGWA). Inthe Middle East, we are one of only 3 winners (and the onlybank)

Mashreq is the first (and only) winner of the Trailblazer Award.Of the 36 companies that won the GGWA, Mashreq was theonly organisation to be recognized as a Trailblazer.The award demonstrates success in building the engagementmomentum with focus on long-term sustainability and growth.TrailblazerTr

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Structure of this Document

▪ The Global state of Workforce Engagement

▪ The Mashreq story - Impact of Engagement

▪ The Mashreq story - Driving Staff Engagement

A picture of the Global workforce

ENGAGED NOT ENGAGED

EMPLOYEEACTIVELY DISENGAGED

EMPLOYEE

“I can’t wait to getback to work”

“My job is okay, but…”

“Oh No, it’s Sundayagain…”

2012

2010

13% 63% 24%

11% 62% 27%

PASSIONATECHECKED - OUT DESTRUCTIVE

Source : Gallup data

…engagement of employees at Mashreq stands out…

..this does really matter…a leading indicator of performance….

Source : Gallup data

…engagement at Mashreq was at fairly pedestrian levels only a fewyears ago…..

Key Demographics

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Structure of this Document

▪ The Global state of Workforce Engagement

▪ The Mashreq story - Impact of Engagement

▪ The Mashreq story - Driving Staff Engagement

What contributed to this evolution?

– Key role played by 3 different constituencies:

– Leadership

– HR

– Manager and team

– Change in thinking :

– Engagement not = Money & Rewards alone, not socialisation

– Engagement everyday

• Strategic use of Employee Engagement surveys

– Simple, focused

– Linked to Performance (Show me the Money)

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Involving Leadership - Making the business case for engagement….

In 2011, it was important to establish a business case for engagement, or to risk itdying out.2011 Business Impact

Business Casepresented in 2011

‘Engaged Employees’ have a 28% better performance versus targets

Mashreq Branches with higher engagement outperform lower engaged branches

Attrition among employees with higher engagement (>=75th %tile) was half thatof the bank as a whole.

How????????

Driving engagementDriving engagement

Leadership

Line ManagersHR

EMPLOYEEENGAGEMENT

Enterprise + Local level actionEnterprise + Local level action

SPONSORSHIP

CATALYSIS OWNERSHIP

..without Leadership ownership, no hope…

..because as per an old German proverb

‘ A fish stinks from the head’

What does Leadership commitment mean?

• Visible action

• Involvement

• Assign senior sponsors/champions in each group

• Look for every opportunity to involve employees workingtogether

Leadership endorsement - Engagement became the platform around whichto deliver on Key Strategic Initiatives……

EngagementEngagement

Driving RevenueDriving Revenue

Grow overseas contributionGrow overseas contribution

Driving the Nationalization agendaDriving the Nationalization agenda

Mashreq works on a 3 year strategy with key strategic initiatives identified for theperiod. Engagement became the platform around which each of these Strategicinitiatives was driven

Strategic Initiatives

What drives engagement at Mashreq – Leadership commitment….

MEEUmbrella

InstillingPride

Sense ofbelonging

RecognitionPhysical Well

Being

Communication

HR ROLE – CATALYSTS

Impact engagement through the year…

Communication

CA Townhall CA Townhall CEO’ s Townhall Engagement SurveyCommunication campaign

Al Mashreq -InternalMagazine

Skip Level meetings Al Mashreq -InternalMagazine

Recognition Rewards & RecognitionBudgets

CEO’s Club -U.A.E, Qatar+Egypt Closure of R&R Budgets

PerformanceManagement

Setting MBO Mid Year Review PerformanceManagement Internal

Poll

Annual Appraisal

MEE

Sharing Engagementresults

Engagement - healthcheck via internal Poll

MEE survey Share Survey results withindividual groups

Engagement TrainingWorkshops

Engagement TrainingWorkshops New

managersImpact planning sessions Review of Impact Plans

Corporate SocialResponsibility

Health awareness camp Blood Donation drive Free health checkupcamps

OD Initiatives

Family Day Summer Camp for Staffchildren

Mashreq Cares – Rewardstaff children for their

academic achievements

Mashreq First Step(internship program for

staff Children)

1st Quarter1st Quarter 2nd Quarter2nd Quarter 3rd Quarter3rd Quarter 4th Quarter4th Quarter

Constant review..

• Onboarding• PMS• Help draw lines to existing initiatives – eg.

Engagement + Lean• C & B

– Regular internal surveys

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…the myth of organisation culture …

Workplace Engagement

The Local Manager/Leader

Poor Great

44

621860

1019

2011 2012 2013 2014

Building culture where it is created

Triggering the catalyst……

Team based Action Plans

Managers held accountable to Engagement, trained onhow to impact it

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Mindset change - driving/sustaining Engagement through theyear….

Copyright © 2009 Gallup, Inc. All rights reserved.

• One employee at a time….

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Structure of this Document

▪ The Global state of Workforce Engagement

▪ The Mashreq story - Impact of Engagement

▪ The Mashreq story - Driving Staff Engagement

..employee engagement at Mashreq has indeed been a leading indicator ofMashreq’s financial performance…

In the last 2 years, Mashreq’s Net Profit has more than doubled This pace of growthhas outstripped competition. External vindication has come from a string ofprestigious international awards, including being the ‘Best Banking group in UAE”.

Bank Overall

The above illustration depicts Mashreq’s financial performancecompared to its peer group.

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Less than 30 questions in the questionnaire – Standardisation +Customisation

Easy to administer, no fatigue – focused on areas that relate toemployee performance

Covers the entire organisation

Same time each year – part and parcel of way organisation runs (nocompromises even during cost-cutting)

Focus on what matters – simple, short survey….

GARBAGE IN GARBAGE OUT……..

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ENGAGEMENT AND SATISFACTION ARE DIFFERENT

Lessons learnt from driving Change

Change takes timeLeadership involvement, Manager led action, HR catalysesDemonstrate the linkages to Performance – else, GIGOBrand the engagement processCoach managers on how to drive action - Create Accountability

APPENDIX