Presentation on theme: "Tele2 proprietary The Power of the Index. Tele2 proprietary 2 The Compelling Business Reason Why did we have to work on ES? >32% Turnover in 2007 and."— Presentation transcript:
Tele2 proprietary The Power of the Index
Tele2 proprietary 2 The Compelling Business Reason Why did we have to work on ES? >32% Turnover in 2007 and 23% in % tenure of <1 year Turnover is averagely estimated at € 30,000- a head So when 1/3 of 1000 employees leave a year costs are approaching € 10 Mio ! An attainable 30% improvement yields > € 3 Mio cost savings.
Tele2 proprietary 3 Reasons for High Turnover Analysis (exit interviews and retention workshops) showed Three reasons why people left the company only 2 years ago 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 In terms of importance the survey group weighted the number 1 reason with 60% and 2&3 respectively with 20% and 20%.
Tele2 proprietary 4 Quick Question: 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?
Tele2 proprietary 5 What is remarkable about these numbers? 5.3 >32% -18
Tele2 proprietary 6 Recap of our results Initially the Employee Satisfaction was expressed in a number on a scale of 7 > 5.3 for 2008 Last survey yielded a so called ESI > 79% -18 = Nett Promotor Score 2008 LSI of 56 in 2008 (as of 63 it starts turning green)
Tele2 proprietary 7 A Closer Look at the Indexes Leadership Index (LSI) is designed to put a numerical value on the leadership in a work group. The LSI value lies between 0 and 100. The weighted average value of the answers from the employee survey creates the index. The highest level is attainable only through a high number of ‘Unconditional Yes Excellent’ scores. Nett Promotor Score (NPS) Obtained by 1 (one) question only: Would you recommend Tele2 as an employer with your family & friends? Employee Satisfaction Index (ESI) 11 Questions of which the Index is found to be linked with profitability if one scores on or above the benchmark (>4.5+)
Tele2 proprietary 8 LSI Questions & 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?
Tele2 proprietary 9 Low Performance on LeaderShipIndex (LSI) & Nett Promotor Score (NPS) In addition to high employee turnover and its indicators Low Performance on LSI: Overall 56 (/100) 50% of managers (70)
Tele2 proprietary 10 LSI is ‘King’ We decided to embark on a mission (1) Increasing overall LSI (2) Increasing individual LSI (3) Positive NPS
Tele2 proprietary 11 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: 20%) An intensive Corporate Communications campaign on ‘Ambassadors’ In interim Barometer survey yielding interim LSI / NPS scores CEO organizing ‘All Mgrs’ meeting with LSI themes New Initiative: Tele2 Learning Center launching ‘LSI development paths’
Tele2 proprietary 12 What is remarkable about these numbers? <13% +18 69
Tele2 proprietary 13 Question What do you think ‘leavers’ indicate now as the number one reason for their exit?
Tele2 proprietary 14 Question What do you think ‘leavers’ indicate now as the number one reason for their exit? “Perspective”
Tele2 proprietary 15 Recap of our Goals for 2010 ESI to 100% LSI to >69 All Managers to improve on individual LSI > 20% of bonus Employee Turnover < 13% Positive NPS >benchmark