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Employee Engagement SurveysDriver or a Waste of Time?
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Izabela Widlak, M.S.Sr. Research ConsultantHuman Capital Growth
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Presenter
Dr. Shreya Sarkar‐BarneyPresident & FounderHuman Capital Growth
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Talent Management Excellence
Leadership Excellence
US India
We help organizations achieve talent management excellence and leadership excellence using science, analytics, and empathy.
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Talent Management Excellence
Leadership Excellence
What We Do
STRATEGY
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Global Human Capital Trends 2016
Source: Deloitte University Press
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CEO Concerns about Employee Engagement (EE)
Source: KPMG (2016) Now or Never. 2016 Global CEO Outlook.
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Agenda
• What is employee engagement (EE)?• What do EE surveys measure?• What does EE predict?• Scientific view on employee engagement• Recommendations
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Concerns with EE Surveys
HR‐ManagementStagnant engagement levels
EmployeesNo change as a result of the survey
“Personally, I am sick to death of surveys to “check how our employees are feeling about things”. They are a waste of my time, minor changes are intoduced to grab a headline and the big issues get pushed to the back through a “requiring more analysis” approach which kicks it into the long grass.”
I know our leaders are concerned with our employee engagement scores…not sure they match realities on the ground. I am concerned about getting side tracked when there are other bigger issues that need to be dealt with…
Lack of accurate insights Lack of actionable insights
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“Hard evidence is mounting that contrary to popular belief, engagement doesn'tdrive performance. In fact, the inverse is true. Performance drives engagement.”
"There is a massive industry behind the belief that if a company drives upengagement productivity will increase.
Inability to drive value
Organizational Concerns
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$$$$$
Total Addressable market of employee surveys: $35 to $75 Billion
Company spend: $50,000- $1,000,000
Source: http://blog.thestarrconspiracy.com/employee‐engagement‐and‐market‐share‐the‐74‐billion‐question
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Value of EE Surveys
Insightful Actionable Drive value
Are Employee Engagement Surveys worth it?
Employee Engagement Trends
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United States: Employee engagement 2002 to 2012
Source: Gallup; ID 261240
18% 19% 19% 18%20% 20%
15% 15%17% 17% 17%
52% 52% 53% 54%51% 50%
55%59%
54% 55%53%
30% 29% 28% 28% 29% 30% 30%26%
29% 28%30%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002
Shar
e of
resp
onde
nts
Actively disengaged Not engaged Engaged
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2015 Employee Engagement Landscape Study
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Conflicting story on the state of employee engagement at work
How is Employee Engagement Defined?
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Definition (Vendor)
PWC: The extent to which employees are motivated to contribute to business success and are willing to apply discretionary effort to accomplish tasks important to the achievement of business goals.
Deloitte: An employee’s job satisfaction, loyalty, and inclination to expend discretionary effort toward organizational goals. It predicts individual performance and drives business outcomes.
Aon Hewitt: The psychological state and behavioral outcomes that lead to better performance…[it includes] affective and continuance commitment, motivation, and organizational citizenship behaviors…required for optimal performance and productivity.
Gallup: …employees care about the future of the company and are willing to invest the discretionary effort to see that the organization succeeds.
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Models of Engagement (Vendor)
Motivation
Discretionary effort/OCB
Commitment
Goal achievement
Performance
Productivity
Business Performance
Customer SatisfactionLoyalty
Job Satisfaction
DRIVER
S OUTCO
MES
Safety
Turnover
Engagement
Psychological State Value
The Outcomes of Employee Engagement
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PRODUCTIVITY
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http://www.theacsi.org/national‐economic‐indicator/us‐overall‐customer‐satisfaction
Customer Satisfaction
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http://www.bls.gov/news.release/pdf/osh.pdf
Safety
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Turnover
https://www.bls.gov/web/jolts/jlt_labstatgraphs.pdf
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Companies with top quartile engagement levels (72% or above) have 50% higher total shareholder return (TSR) than the average company
Companies with bottom quartile engagement levels (50% or lower) have 50% lower TSR than the average company.
Disengaged Moderately Engaged Highly Engaged
Did not meet sales targets
Exceeded sales targets
Are they disengaged
or poor performers or both?
Engagement and Total Share Holder Return
Engagement and Sales Performance
Lack of Clarity
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Questions
• Are those who are disengaged, poor performers?• Does engagement lead to performance or does performance lead to engagement?
• What is the lead/lag time between engagement and performance?
Science‐based Perspective on Engagement
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Engagement (Psychological)
William Kahn introduced the concept of engagement in 1990
Engagement is the extent to which employees are psychologically present or absent from work. This
influences performance and extent to which employees are content with their role.
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Science‐based perspective
Employee Well‐being
ENGAGEMENT BURNOUTLeads to health impairments
Leads to motivation
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Engagement
Psychological presence or absence from work
Think (absorbed)
Feel (excited)
Act (energetic)
ENGAGEMENT
Job Performance(job duties and helping)
EXPERIENCE EFECTIVENESS
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Burnout
Energized, fulfilled, and meaningful
Exhausted, cynical, and detached Job Demands
ENGAGEMENT BURNOUT
1. Employees who are engaged and performing at one point in time, can experience burnout because of the job conditions.
2. A person can go from engagement to burnout, and back to being engaged as things improve
3. If you can control job demand, you can prevent burnout
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PRODUCTIVITY
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Surprises
VENDOR MODELS
Performance Employee well‐being and performance
SCIENCE‐BASED MODELS
Focus
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Surprises
VENDOR MODELS
Engagement and disengagement measured on the same scale
Engagement and burnout measured using different scale
SCIENCE‐BASED MODELS
Measure
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Surprises
VENDOR MODELS
Dashboard
Move/exit disengaged employees
Diagnose
Intervene before engagement turns into
burnout
SCIENCE‐BASED MODELS
Actions
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RecommendationVALUE (Driving outcomes)• Move from explaining the past to predicting the future
INSIGHTS (what you measure) • Move from measuring engagement only to measuring
engagement and burnout• Move from measuring snap shots to trends over shorter
periods of time
ACTIONS (What you do with the data)• Move from dashboarding to detecting and preventing
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EMPLOYEE ENGAGEMENT SURVEYS
Promise delivered or failed experiment?
Promise yet to be delivered
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Questions?
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Questions?
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Most Influential Scientific Findings in Talent Management from 2016
HCG Team
Next HCG Webinar
Thursday, April 6th, 20178am PT
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Talent Management Excellence
Leadership Excellence
STRATEGY
AUDIT
DESIGNANALYTICS
EDUCATION DEVELOP
ALIGN
ASSESS
For a free one hour consultation email us at [email protected]
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Thank you!Izabela Widlak, M.S.
Shreya Sarkar‐Barney, [email protected]
+1.707.317.7644
