Top 5 HR Processes Ripe

for the Social Enterprise

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Presented by

Todd Horton, Founder/CEO

KangoGift

November 6, 2013

Our Agenda

What is a social enterprise?

Current state of research on employee sentiment

Top 5 processes ripe for a social enterprise

Common metrics for success

Q&A

2

3

“The Instant Workplace”

Where employees expect immediate access to

ideas, people, and resources.

4

Companies Will Start to Embrace Social Tools to Facilitate Information

5%

69%

Companies

Individuals

Source: McKinsey. Ways companies use social media for recognition and HR practices.

Pew data for individual.

Social Media Usage

It’s only a matter of time before companies catch up

5

A social enterprise is one where employees have the

resources necessary to collaborate and advance the

mission of their organization.

6

Today we are not only talking about technology and tools.

We are discussing the organizational mindset of enabling

employees to work socially.

7

Social Impacts All Areas of HR

Talent Attraction Represent your corporate brand as

an employer of choice.

Development HR leaders have new tools to tap

into the wisdom of the entire

workforce for L&D.

On-boarding The ways in which employees

enter a company are changing.

Engagement Managers and employees have new

ways to be more timely and visible.

1

2

3

4

Current Research

and Trends

9

We do all those old tricks electronically now.

What the Workplace Values

Global

Mindset

“Instant-ness”

Cultural IQ

Country specific workers. Cross border connectedness.

Why am I here?

Wait for feedback and information. Access to information and people.

Understand your surroundings. Understand the needs and desires

of people around you.

Pay and stability.

Old New

Personal and social impact.

A Few Big Trends

Converting traditional HR processes from infrequent tasks to on-

going conversations.

Capturing and reporting on timely data to create a smarter

workforce.

Tapping into a spirit of “getting things done” with simple tools.

Creating and delivering HR programs that are customized to each

employee’s needs.

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The Workplace in 2020

46% Millennials (born 1977 to 1994) will make

up almost half of the US workforce.

Number of global internet users.

Global trade will increase 2.5x from today. $41T

5B

70% Employees don’t feel like they are fully engaged in their work according to Gallup. Companies need to address this cultural misalignment.

New Motivational Theories for a Global Worker

Focused on understanding employee

motivations and desires.

Many companies now design jobs to provide

employees with opportunities to make

choices, develop skills, do work that matters,

and strengthen interpersonal relationships.

Social tools target the opportunity to

strengthen relationships at work and gain

insight into employee desire.

“Classic” Motivational Theory New Motivational Theory

• Largely based on

financial incentives

• Pay

• Stock

• Cash Bonus

Money is no longer the only driver in retention and employee engagement.

A McKinsey Study Found That Non-Cash Motivators Are

More Effective Than Cash Motivators

Performance-Based Cash Bonuses

Increase in Base Pay

Stock or Stock Options

Recognition from Immediate Manager

Attention From Leaders

Opportunities to Lead Projects or

Task Forces

20%

30%

40%

50%

60%

70%

80%

20% 30% 40% 50% 60% 70% 80%

Financial vs. Non-Financial Incentives—Effectiveness vs. Use , 2009

“Nonfinancial motivators play critical roles in making employees feel that

their companies value them, take their well-being seriously, and strive to

create opportunities for career growth.”

Note: Financial Incentives are marked with a circle; non-financial incentives are market with a

diamond. Source: McKinsey Quarterly, “Motivating people: Getting Beyond Money,” November

2009; Based on McKinsey survey of 1,047 executives, managers, and employees.

Eff

ectiveness

(% o

f R

espondents

That V

iew

Motivato

r as

Eff

ective)

Use (% of Respondents That Use Motivator)

Impact on Operational Performance of Organizations Providing What Employees Want

Source: Respect by Jack Wiley and Brenda Kowske 16

74% 78%

81% 79%

56%

45%

50% 49% 51%

30%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

POI Our Customers are verysatisfied

We produce higher qualityproducts/services than our

competitors

We compete well in ourindustry

Our performance hasimproved in past 12 months

Employees whose most important want is fulfilled Employees whose most important want is unfulfilled

Impact of Employee Recognition on Views of Managerial Performance

Source: Respect by Jack Wiley and Brenda Kowske 17

81%

76% 75%

80%

65%

30%

26% 29%

34%

16%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Overall Performance People Management Task Management Keeps Commitments Outstanding Leader

Satisfied with Recognition Dissatisfied with Recognition

Truthful Communication Employees Want

Source: Respect by Jack Wiley and Brenda Kowske 18

22%

40%

38%

Communication in General Communication about Performance Honest Communication/Information

Top Five Processes Ripe

for a Social Enterprise

Performance Reviews

Transitioning Reviews from Point in Time to On-Going Conversations

Relevancy

Impact

Insight

Shift from a once year compliance

task to active management.

More timely assessment of where an

employee stands.

Broader set of data points an

employee can draw from. Employees are better able to

manager their careers.

Employees better understand

where they fit. Direct benefits to engagement and

discretionary effort.

How Benefit

Employee Feedback

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Capturing More Timely Employee Feedback

Peer feedback

Manager

feedback

Cross-

functional

Casual email or chat. HR provides a structured way to

capture and deliver feedback.

Ad-hoc, event driven. Managers can look at peer

feedback employee has received

and coach.

Rare, sporadic. Social companies facilitate

cross functional feedback.

Old Way New Way

Recognition and Awards

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Organizations Seek to Deliver Informal and Timely Recognition in a Measurable Way.

Social Recognition

Ad-hoc Awards (Lunch or coffee)

Verbal Praise (Good job, pat on the back)

High

Low

Delayed Immediate

Sta

nd

ard

ized

Time Diminishes Impact

Annual Reviews (Standard performance review)

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Attributes of a Social Recognition Program Timely We live in an instant world.

Immediate feedback is the most

engaging.

Shared Giving visibility internally or

externally amplifies impact and

program participation.

Tangible A real reward (even micro)

makes the recognition more

impactful.

Remembered Social recognition creates a living

performance review and provides

managers with detailed statements.

1

2

3

4

Keep it simple and

people will embrace

Training

28

Using the Wisdom of the Workforce for Training

Using video or an internal “YouTube”

Enabling employees to share their expertise

Peer testing and skills assessment

Timely employee surveys

Knowledge Management

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Centralizing Institutional Knowledge

Internal FAQ pages – Quora for the enterprise.

Providing employees pages everyone can access to

tap into expertise.

Support collaboration through online communities,

file repositories, and internal messaging.

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The theme is that many of these tasks can be done from common

platforms (including mobile) rather than disparate tools.

In other words, tools designed for the way your employees work often

see the most success.

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Top Worries and Benefits When Talking about Social

‣ We want a tool that

appeals to all employees.

‣ We want to be a great

place to work and

improve culture.

‣ If we can track it, we can

map talent.

‣ We want something cost

effective.

Benefits

Loss of control

Does it work?

Not sure where to start

Is it really measurable?

Who else does this?

Case Studies

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Real-World Examples

Knowledge Management

Global manufacturing company

Social Recognition

Global automotive company

Service Awards

Financial company

Learning and Development

Regional healthcare company

Metrics for Success

36

Common Questions Companies Want to Answer

Performance

Enablement

Engagement

How do we create environments that attract the

best employees and ensure their success?

How do we provide our workforce tools to advance our

goals and help them succeed?

How do we define success? Profit, impact, reach?

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Choose the Metric Suitable to Your Goals

Retention

Satisfaction

Engagement

Operational Gains

Profit per employee

Time and Cost Savings

Budget Optimization

Compensation Alignment

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Dashboards

Newer social tools help managers understand the contributions of their employees in one snapshot.

Employee Satisfaction Is Important and Necessary for Company Success

Professor Alex Edmans (Wharton School)

examined the stock returns of companies with

high employee satisfaction and compared it to

the broader market.

His research found that firms cited as good

places to work earn returns that are more than

double those of the overall market.

Furthermore Edmans has recently updated the

study and found that results still hold―returns

were 3.5% per year higher for the top 100 best

companies to work for than those of their peers. 0 0

0 0

Equity Returns – Top 100 Best

Companies to Work For vs. the Overall

Market, 1998-2005

“The results are consistent with human relations theories which argue that

employee satisfaction causes stronger corporate performance through improved

recruitment, retention and motivation.”

Sources Knowledge@Wharton, “How Investing in Intangibles – Like Employee

Satisfaction –Translates into Financial Returns, January 9, 2008; Professor Alex Edmans,

“Does the Stock Market Fully Value Intangibles? Employee Satisfaction and Equity

Prices,” 2011.

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Social Tools Coupled With Executive Support Can Dramatically Increase Program Participation

Equipping employees at all levels of the organization can impact the rate of program success.

Parting Thoughts

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Create Your Own Social HR Roadmap

Step 1 2 3 4 Open it up

Requirements What are your employee

“wants”? What behaviors do

you want to drive.

What assets do you have Understand what your org already has

in place and untapped. Cultural IQ.

Benchmark Understand how social

can be a differentiator for

your org.

Launch and learn Measure outcomes.

Toolkit Selection Identify the resources necessary for

success. Start small.

Thank You

Todd Horton

617-861-8335

Todd@kangogift.com

http://www.linkedin.com/in/toddhorton

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