Employee Engagement, Who Cares? - Strategic HR Training and HR

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Employee Engagement, Who Cares?

What Difference Does an Engaged Workforce Make to an Organization and What Leadership Behaviors are Needed?

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Krystin Fakalata

Today’s Moderator

@KrysAtWork

Krystin (Brazie) Fakalata

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Jack Wiley

Today’s Featured Guests

Kieran Colville Executive Director

Kenexa High Performance Institute

Head of Leadership, EMEA Kenexa

Nick Goldberg Head of Leadership, North America

Kenexa

EMPLOYEE ENGAGEMENT

WHO CARES? DR. JACK WILEY, NICK GOLDBERG

& KERIAN COLVILLE

PRESENTATION OBJECTIVES

• Validate the importance of employee engagement and leadership effectiveness as essential parts of an HR strategy

• Convert theoretical research findings into practical advice for fostering employee engagement and leadership effectiveness

EMPLOYEE ENGAGEMENT

EMPLOYEE ENGAGEMENT DEFINED

The extent to which employees are motivated to contribute to organizational success, and are willing to

apply discretionary effort to accomplishing tasks

important to the achievement of organizational goals

EMPLOYEE ENGAGEMENT INDEX

Employee Engagement Index (EEI) is comprised of four items:

• Pride: I am proud to work for my organization.

• Satisfaction: Overall, I am extremely satisfied with my organization as a place to work.

• Advocacy: I would gladly refer a good friend or family member to my organization for employment.

• Commitment: I rarely think about looking for a new job with another organization.

Engaged employees care more, perform better, stay longer

COUNTRY-LEVEL ENGAGEMENT SCORES

BELOW GLOBAL AVERAGE SCORES

• Australia

• South Africa

• Argentina

• Germany

• Russia

• China

LOWER SCORES

• Italy

• United Kingdom

• Finland

• France

• Korea

• Japan

HIGHER SCORES

• Denmark

• India

• The Netherlands

• Brazil

• Mexico

ABOVE GLOBAL AVERAGE SCORES

• United States

• Canada

• Indonesia

• Turkey

• Spain

• Switzerland

• Sweden

ENGAGEMENT DRIVERS

1. Confidence in organization’s future

2. Promising future for one’s self

3. Organization supports work/life balance

4. Contribution is valued

5. Excited about one’s work

6. Opportunity for growth and development

7. Safety is a priority

8. Leadership has communicated a motivating vision

9. Organization’s CR efforts increase overall satisfaction

10. Quality and improvement are top priorities

EMPLOYEES ARE ENGAGED BY:

• Leaders who inspire confidence in the future

• Managers who recognize employees and emphasize quality and improvement as top priorities

• Exciting work and the opportunity to grow and develop

• Organizations that demonstrate a genuine responsibility to their employees and communities

Global macro drivers remarkably stable over time

• These studies document the engagement and business performance relationship

• They are among the first to examine the relationship across industries and countries

EMPLOYEE ENGAGEMENT AND BUSINESS PERFORMANCE

THE IMPORTANCE OF LEADERSHIP

LEADERSHIP EFFECTIVENESS INDEX

Leadership Effectiveness Index (LEI) is comprised of five items:

• Vision: The senior leaders of my organization have communicated a vision of the future that motivates me.

• Ability: Senior management at my company has the ability to deal with the challenges we face.

• People: Senior management demonstrates that employees are important to the success of the company.

• Quality: Senior management is committed to providing high quality products and services to external customers.

• Confidence: I have confidence in my company’s senior leaders.

IMPACT OF LEADERSHIP ON ENGAGEMENT

0

10

20

30

40

50

60

70

80

90

100

EEI Pride Satisfaction Advocacy Commitment

Perc

en

t F

avo

rab

le

Effective Leadership Ineffective Leadership

Copyright Kenexa® High Performance Institute, 2011

PER

CEN

T FA

VO

RA

BLE

EEI PRIDE SATISFACTION ADVOCACY COMMITMENT

10

20

30

40

50

60

70

80

90

100

0

EFFECTIVE LEADERSHIP INEFFECTIVE LEADERSHIP

LEI BY INDUSTRY

High-tech Manufacturing

Banking and Financial Services

Retail Heavy/Light Manufacturing

Healthcare Services

Government

PER

CEN

T FA

VO

RA

BLE

70

60

50

40

30

20

10

0

Copyright Kenexa® High Performance Institute, 2011

LEADERSHIP EFFECTIVENESS AND BUSINESS PERFORMANCE

Recent KHPI research indicates that leadership effectiveness is positively and significantly related to Diluted Earnings Per Share (DEPS) and Total Shareholder Return (TSR)

22 Copyright Kenexa® High Performance Institute, 2011

.

LEADERSHIP EFFECTIVENESS AND CURRENT BUSINESS RESULTS (2009 DEPS)

LEADERSHIP EFFECTIVENESS AND LONGER- TERM BUSINESS RESULTS (3-YEAR TSR)

Global LEI Drivers

1. Trust organization’s leadership

2. Quality and improvement are top priorities

3. Communication is open and two-way

4. Organization serves interests of multiple stakeholders

5. Employees are recognized for outstanding customer service

6. Action taken on new ideas

7. Employees motivated to work hard

8. Confidence in organization’s future

9. Productive employee recognized

10. Performance evaluated fairly

LEI Macro Drivers

Employees describe effective leaders as:

– Inspiring trust and confidence

– Valuing quality and customer service

– Open and communicative

– Holding a multi-stakeholder perspective

– Holding lower-level managers accountable

THAN THOSE RUN BY LESS CAPABLE ONES

“ “ BUSINESSES HEADED BY EFFECTIVE LEADERS MAKE MORE MONEY

-THE SUNDAY TIMES

Standardize Specialize Align goals Hierarchy

Plan Control Comply Reward

TRADITIONAL ORGANIZATION

SIMPLE STABLE

COMFORTABLE

AN OLD MANAGEMENT PARADIGM

CHALLENGING ENVIRONMENT

SIMPLE STABLE

COMFORTABLE

Complex Dynamic Hostile

Innovate Connect

Adapt Engage

Diversity Passion

Personal development Purpose

MODERN ORGANIZATION

Standardize Specialize Align goals Hierarchy

Plan Control Comply Reward

TRADITIONAL ORGANIZATION

A NEW MANAGEMENT PARADIGM

40% OF SUCCESS LEADERSHIP CAN BE ATTRIBUTED TO

…and yet 60% companies are facing

leadership shortages and another 30% expect to in the NEXT 5 YEARS

6 F

AC

ETS

OF

A H

IGH

NATURE

HIGH PERFORMING

LEADER

LEADERSHIP PERSONALITY

LEADERSHIP MOTIVATION

LEADERSHIP CAPABILITIES

LEADERSHIP MINDSET

LEADERSHIP EXPERIENCE

LEADERSHIP INTELLIGENCE

NURTURE

PER

FOR

MIN

G L

EAD

ER

BEHAVIORS VALIDATED HIGH PERFORMANCE

Building Talent

Understanding Others Fostering Collaboration

Developing People

Value diversity Listen to others

Create trust Build relationships

Develop people Promote teamwork

Influencing Others Building Confidence Communicating with

Impact

Give direction Create clarity

Build confidence Inspire others Decide swiftly Get support

Inspiring People

Achieving Performance

Making things Happen Measuring Success Building Customer

Value

Great execution Make things happen

Empower others Drive change

Customer value Pursue excellence

LEADERSHIP CAPABILITY:

Creating Strategy

Searching for Information

Creating Ideas Flexible Thinking

Seek information Make sense of chaos

Create ideas Develop strategy Foster innovation Handle ambiguity

HIGH PERFORMANCE BEHAVIOR

High Performance Benchmark

0

2

4

6

8

10

12

14

Hig

h P

erfo

rman

ce B

ehav

ior

Sco

re

Well understood and developed Undervalued and underdeveloped

OVERALL SCORES

MACRO ENGAGEMENT DRIVERS

GLOBAL ENGAGEMENT DRIVERS

Leaders Who Inspire Confidence

in the Future

Confidence in Organization’s Future

Motivating Vision of the Future

Promising Future for Me

Exciting Work and the Opportunity to Grow

and Develop

Excited About Work

Opportunity for Development

Organizations that Demonstrate a

Genuine Responsibility to Their Employees and Communities

Safety is a Priority

Organization Supports Work/Life Balance

CSR Efforts Increase Satisfaction

Managers Who Recognize Employees

and Emphasize Quality and Improvement

HPB

Building confidence

Creating ideas

Communicating with impact

Searching for information

Developing people

Influencing others

Flexible thinking

Making things happen

All 12 behaviors combined will impact positively on these drivers

Measuring success

Building customer value

Fostering collaboration

Understanding others

Organization Values Contribution

Quality and Improvement are Top Priorities

LEADERS WHO

INSPIRE CONFIDENCE

IN THE FUTURE

MOTIVATING VISION

OF THE FUTURE

“Clear definition of goals” “Compel the actions of others through a motivating vision”

“Truthfulness from managers and leaders” “Open communication and transparency”

CONFIDENCE IN ORGANIZATION’S

FUTURE

PROMISING FUTURE FOR ME

BUILDING CONFIDENCE

CREATING IDEAS

COMMUNICATING WITH IMPACT

SEARCHING FOR INFORMATION

Managers Who Recognize

Employees and Emphasize Quality and

Improvement

Organization Values

Contribution

Quality and Improvement

are Top Priorities

Measuring success

Building customer

value

Fostering collaboration

Understanding others

“I want to be respected and recognized as a valuable team member” “Recognize the contributions of all employees, not just a few; it would help develop the team

spirit and cooperation that are vital for us to succeed in the current economic climate”

Exciting Work and the

Opportunity to Grow and Develop

Excited About Work

Developing people

Influencing others

Flexible thinking

Making things happen

“I would like to broaden the scope of the work that I do, be a little more creative”

“A challenging job, not the same every day with tasks I can do with my eyes closed”

“Good leadership that is interested in my personal and professional development”

“I want to see the potential for a growth opportunity”

Opportunity for Development

Organizations that

Demonstrate a Genuine

Responsibility to Their

Employees and

Communities

All 12 behaviors

combined will impact

positively on these drivers

Safety is a Priority

Organization Supports Work/Life Balance

CSR Efforts Increase

Satisfaction

DRIVING ENGAGEMENT THROUGH ON TRACK GETTING LEADERSHIP DEVELOPMENT AT NETWORK RAIL

“striving to provide Britain with a safe, reliable and efficient railway fit for the 21st century”

Network Rail

DEF

ININ

G W

HA

T G

OO

D L

OO

KS

LIK

E Th

e N

etw

ork

Rai

l Le

ade

rsh

ip C

apab

ility

Mo

de

l

Making things happen

Tracking performance

Putting the customer first

PEO

PLE

D

EVEL

OP

MEN

T IN

SPIR

ING

P

EOP

LE

THIN

KIN

G

AC

HIE

VIN

G

Searching for information Creating solutions Thinking flexible

Understanding others Building teams

Maximising Potential

Influence others Building confidence

Communicating clearly

1

2 3 THE FOUNDATION – BUILDING SELF AWARENESS

Regular informal performance

conversations and feedback

Effective performance reviews and reward

Managing underperformance

effectively

Motivating higher performance through

development discussions

CORNERSTONE

SET OBJECTIVES

CORNERSTONE CORNERSTONE

GATHER DATA RATE PEOPLE

FOUR PILLARS

3000 BAND 2 - 5 LEADERS 2 DAY WORKSHOP

87 PAY FOR PERFORMANCE LEADERS 2 DAY WORKSHOP

100 HR MANAGERS 2 DAY WORKSHOP

EXECUTIVE GROUP & TOP 100

1 DAY WORKSHOP

-0.10

+0.00

+0.10

+0.20

+0.30

IMPACT ON EMPLOYEE ENGAGEMENT

NATIONAL TRAIN PUNCTUALITY 2000 - 2009

2000/1 2001/2 2002/3 2005/6 2006/7 2007/8

PP

M%

88

86

84

82

80

78

76

74

92

90

2008/9 2003/4 2004/5

RAILTRACK RAILTRACK/NETWORK RAIL NETWORK RAIL

SUCCESSES AND LESSONS LEARNT

ENGAGE

ENABLE

EMBED

EVALUATE

•Senior Sponsorship •Clear, consistent communication and engagement plan •Cascaded from the top via multiple channels

•Focused on the critical skills and capabilities •Targeted all key audiences •Practical learning approach and use of actors

•Leadership toolkits •Internal Champions •Continued communication

•Impact on performance and engagement •Clear tangible business outcomes identified •Evolving evaluation agenda

…but the future is

BRIGHT

Need assistance? Call Member Services (866) 538-1909 or email

support@hci.org

Questions?

Jack Wiley Kieran Colville Executive Director

Kenexa High Performance Institute

Head of Leadership, EMEA Kenexa

Nick Goldberg Head of Leadership, North America

Kenexa

Human Capital Institute (HCI)

www.hci.org @human_capital Human Capital Institute

Thank you!