Employee Engagement: Myth or Magic

Gary A. Higbee EMBA CSP

CEO Higbee & Associates, Inc.

North American Management Institute

Senior Global Consultant SafeStart

Key Points

1. What is employee engagement?

2. Why does it matter?

3. How do we know if our employees are engaged?

4. How have organizations achieved high levels of engagement?

5. How to get started

In Addition - Maybe

6. Complacency Curve

7. Risk Assessment Study

8. Managing Complex Change

9. Data from Gallup & NAMI

Employee Engagement Matters

Supervision

is always a

Key Factor

Engagement

should be

measured

(Surveyed)

Engagement is

not just an

“initiative” or

“program”

HR has

critical role There are

some simple

thing we can

do to get

started

Key Factors

Retention is Important

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Under 30 30-39 40-49 50+

Federal

State

Local

Private

What is Employee Engagement?

Heightened connection to work, organization, mission or co-workers

Beyond job satisfaction or happiness

Personal meaning in work

• Pride valued by society

• Belief their organization values them

More likely to go above minimum and provide “discretionary effort.”

Goe for customers

Volunteers ideas

Works hard – and smart

Doesn’t quit

Calls in sick only when ill

Stays alert to safety hazards.

Discretionary Effort

Go extra mile for customers

Volunteer ideas

Work hard – Smart - Suggestions

Don’t quit

Call in sick only when ill

Stay alert to safety hazards, Report Them, Suggest Improvements

Why Does Engagement Matter?

Lack of Demotivators

What Might Cause This?

Pressure to complete the task in a certain amount of time

Lack of Personal Pride

What Else?

Power of Employee Engagement

-70% -60% -50% -40% -30% -20% -10% 0% 10% 20% 30%

Absenteeism

Turnover (high-turnover orgs))

Turnover (low-turnover orgs)

Lost or stolen inventory

Safety incidents

Customer scores

Productivity

Profitability

Key Performance Indicators

Top- and Bottom-Quartile Work Groups

Power of Employee Engagement

-70% -60% -50% -40% -30% -20% -10% 0% 10% 20% 30%

Absenteeism

Turnover (high-turnover orgs))

Turnover (low-turnover orgs)

Lost or stolen inventory

Safety incidents

Customer scores

Productivity

Profitability

Key Performance Indicators

Top- and Bottom-Quartile Work Groups

Safety

Deloitte

Higher levels of engagement drive:

Improved employee performance to support mission

More collaborative and innovative work environments

Lower costs of disengagement.

Levels of Employee Engagement

13

63

24

Engaged Not Engaged Actively disengaged

Worldwide

Engagement in the U.S.

28

54

18

Engaged Not Engaged Actively disengaged

US Employees are the most productive in the world

Engaged Employees

Highly motivated to work hard

Go the extra mile

Recommend organization as good place to work

Stay – even for

less money

(IH Calling)

Have strong relationships

in organization

On the Other Hand …

Not engaged

Not strongly committed to organization

Feels trapped

Gives bare minimum

Actively disengaged

Poor relationship with organization

Only going through the motions

On the Other Hand …

It’s About Leadership

35% of U.S. workers polled

said they’d willingly forgo a

substantial pay raise in

exchange for seeing their

direct supervisor fired

How Do We Know If

Our Employees

are Engaged?

Ask Them!

Engagement Survey Questions

Pride in work or workplace

1. My organization is successful at accomplishing its mission

2. My work unit produces high-quality products and services

3. The work I do is meaningful to me

4. I would recommend my organization as a place to work

Satisfaction with leadership

5. Overall, I am satisfied with my supervisor

6. Overall, I am satisfied with managers above my immediate supervisor

Opportunity to perform well

7. I know what is expected of me on the job

8. My job makes good use of my skills and abilities

9. I have the resources to do my job well

10. I have sufficient opportunities (such as challenging assignments or projects) to earn a high performance rating

Satisfaction with recognition received

11. Recognition and rewards are based on performance in my work unit

12. I am satisfied with the recognition and rewards I receive for my work

Engagement Survey Questions

Prospects for personal and professional growth

13. I am given a real opportunity to improve my skills

Positive work environment and teamwork

14. I am treated with respect at work

15. My opinions count at work

16. A spirit of cooperation and teamwork exists in my work unit

17 – 20. Additional Questions Unique to the

Organization

Engagement Survey Questions

Observation Feedback Leading Indicators

Job Instructions

Written procedures

2 of 8

Machine Utilization Key Performance Indicator

Run Time measured by machine cycle

Are these people engaged?

Are they allowed to be engaged?

Engagement Story

Engagement Process Model

Communicate

4. Take Action

1. Plan

2. Survey

3. Analyze

5. Sustain Engagement

and Resurvey

“Measurement Without Targeted Action is Useless”

“You Said, We Did”

Taking Action on Survey Data

Taking Action on Survey Data

Form engagement teams

Collect additional data

Identify priorities – areas of strength

and weakness

Focus on individual work units

Develop and implement action plans

Provide education and training

Identify outcome measures

Establish accountabilities

Communicate

How Do We Achieve High Levels of Engagement?

Managing Complex Change & Employee Engagement Criteria

Effective Practices

Engagement is everyone’s responsibility

It must be a strategy

Lead from the top

Involve labor

Hire with care; probation is part of selection

Onboard well.

Effective Practices

Select supervisors who can supervise – and build engagement

Give them training, resources and support

Hold supervisors accountable for engagement

Careful about assignments

Effective Practices

Manage performance

• Make sure employees know what is expected – and how work links to mission

• Meet regularly with employees

• Provide opportunities to grow and develop

• Hold employees accountable – avoid transferring poor performers

Recognize contributions

Make sure employees’ opinions count

Create a positive work environment –respect work/life balance

Communicate

Measure and re-measure engagement.

What is HR’s Role?

Champion engagement

Facilitate

process

Identify

organization-

wide issues

Lead action

Be a

role model

Drive cultural

change

Building a Culture of Engagement

A set of accepted

organizational values,

behaviors, and practices

that promotes increasing

levels of engagement as a

cultural norm

Getting StartedGetting Started

Make the long-term commitment

Communicate the business case

Get leaders, managers and supervisors on board

Involve unions

Plan and communicate strategy

Survey employees

Follow through

Key Take-Aways

Employee engagement matters

Engagement

levels are low

But can be

improved

Engagement

should be

measured

Survey results must

be acted on

Engagement is

not just an

“initiative” or

“program”

HR has

critical role –

champion,

facilitator and

model

Complacency Curve

Time

Task Skills

Awareness Awareness: risk consciousness while driving, working, walking, biking, etc.

First Stage of Complacency(mind can wander)

First Stage of Complacency: no longer pre-occupied with the

risk so your mind can wander

Second Stage of Complacency: no

longer thinking about the risk unless

external stimulus occurs (no “internal”

stimulus or fear)

The Awareness/Complacency Continuum

Time

Second Stage

of Complacency[requires external

stimulus]

The Awareness/Complacency Continuum

First Stage of Complacency[mind can wander]

Awareness

Time

Second Stage

of Complacency[requires external

stimulus]

Observations

Pre-Job Checks

Annual Training

Units/EAUs/TT

Etc.

The Awareness/Complacency Continuum

Awareness

First Stage of Complacency[mind can wander]

Time

The Awareness/Complacency Continuum

Awareness

First Stage of Complacency[mind can wander]

Second Stage of Complacency[requires external stimulus]

Perceived

Risk

Actual Risk

(SIFs & SIDs)

Questions?

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