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Tele2 NL on ESS.
The Power of Indexes
and How ESS Helped
us Overcome High
Employee Turnover
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Quick One:
Can you have high employee satisfaction and a high employee turnover
at the same time?
Can you have high employee satisfaction and very few ambassadors in
your company?
Can you have a low score on leadership and low employee turnover?
Do we agree that high employee turnover and very few ambassadors in
your company hurt the business?
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What is remarkable about these numbers?
5.3
>32%
-18
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So: “Yes We Can”
5.3 = Employee Satisfaction 2007 on a
scale of 7
>32% = Employee turnover 2007
>40%<1year tenure
-18 = Nett Promotor Score 2007
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The Compelling Business Reason
Turnover is averagely estimated at
SEK 304.685,- a head
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The Compelling Business Event
Turnover is averagely estimated at
SEK 304.685,- a head
So when 1/3 of 800 employees leave a year
costs are approaching 80Mio SEK !
An attainable 30% improvement yields 24Mio
SEK cost savings.
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The Compelling Business Reason
Turnover is averagely estimated at
SEK 304.685,- a head
So when 1/3 of 800 employees leave a year
costs are approaching 80Mio SEK !
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Reasons for High Turnover
Obvious aftermath of acquiring Versatel
Analysis showed Three reasons why people leave the company
Number 1: LACK OF ATTENTION BY MY MANAGER
Number 2 & 3 respectively: Perspective & Salary
Number 2 & 3 are issues that many companies deal with
Salary is easy to copy so not a differentiator one can compete on and
not one we will and want to compete on (plus hardly a reason why
people leave in their first two years of service)
In terms of importance the survey group weighted the number 1 reason
with 60% and 2&3 respectively with 20% and 20%.
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Low Performance on LSI & NPS
In addition to high employee turnover and its indicators
Low Performance on LSI:
Overall 56 (/100)
50% of managers (70) <green treshold score of 63
NPS of -12
Overall a lot of ‘yellow’
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LSI is „King‟
We decided to embark on a mission
(1) Increasing overall LSI
(2) Increasing individual LSI
(3) Positive NPS
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The Measures Taken
All managers to go through Situational Leadership Training
All managers to organize ESS workshops
All managers to have an individual LSI target (part of bonus)
An intensive Corporate Communications campaign on ‘Ambassadors’
In interim Barometer survey yielding interim LSI / NPS scores
CEO organizing ‘All Mgrs’ meeting with LSI themes
Tele2 Learning Center launching ‘LSI development paths’
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LSI development paths
Development path 1
Communicate goals & Performance
Development path 2
Coaching & Feedback
Development path 1
Communicate goals & Performance
Development path 3
Handling Conflicts
Development path 4
Building Trust
Development path 5
Team Communication
Development path 2
Coaching & Feedback
Has your immediate manager clearly communicated the goals for
your work group?
Do you regularly get to know how you are doing in your work?
Do you think your performance review talks are productive?
Do you think your immediate manager can handle conflicts?
Does your immediate manager show you respect?
Do you get sufficient information from your immediate manager?
Do you think your work group is managed in a satisfactory way?
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Space for text
More text
- More text
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What is remarkable about these numbers?
5.4
<15%
+12
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Question
What do you think ‘leavers’ indicate now as the
number one reason for their exit?
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Question
What do you think ‘leavers’ indicate now as the
number one reason for their exit?
“Perspective”
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Necessary Conditions for Succes
Compelling Business Reason
CEO that firmly believes in ESS but more importantly
in the indexes (in that he doesn’t let his direct reports
get away with ‘circumstantial’ indicators’)
Structural embedding leaving very little room for
escape
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