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Paul M. Sanchez ABC Fellow, APR Buck Consultants Building Best-In-Class Employee Engagement Programs …from research to programming IABC Orange County.

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Presentation on theme: "Paul M. Sanchez ABC Fellow, APR Buck Consultants Building Best-In-Class Employee Engagement Programs …from research to programming IABC Orange County."— Presentation transcript:

1 Paul M. Sanchez ABC Fellow, APR Buck Consultants Building Best-In-Class Employee Engagement Programs …from research to programming IABC Orange County

2 Overview 1.From Satisfaction to Engagement 2.Defining Employee Engagement and the relationship to organization culture 3.Getting a Handle on Engagement 4.Stages of Employee Engagement 5.Program Implications (Communications and HR) 6.Conclusion and Discussion 2

3 Purpose of this session 1.To explore the topic of employee engagement 2.How these insights can inform and guide the development of Communications and HR programs 3.Highlight the role of Communications in various enterprise aspects. 4.Discuss your views on this topic 3

4 Defining Engagement… Why is a definition needed? 4

5 From Satisfaction to Engagement Research 1 has clearly established that work environment perceptions influence a range of positive organizational performance outcomes Organization Performance -Employee Retention -Productivity -Market Share -Customer Satisfaction -Safety Behaviors Satisfaction, Commitment and Engagement 1 See, for example, Harter, J.K., Schmidt, F.L., & Hayes, T.L. Business-unit-level Relationship Between Employee Satisfaction, Employee Engagement, and Business Outcomes: Meta-Analysis. Journal of Applied Psychology, 87(2),

6 From Satisfaction to Engagement Over time, the drivers of employee satisfaction and commitment have evolved Employee Satisfaction 1980s 1990s  Pay equity  Job security  Personal accomplishment  Opportunities for input  Professional development  Personal accomplishment  Clear sense of company direction  Opportunities for input  Work/life balance Employee Commitment 6

7 From Satisfaction to Engagement Over the last decade, employers’ focus has moved beyond just “satisfied” or even “committed” employees, to employees who are “engaged” SatisfactionCommitment Engagement  Satisfied with pay, benefits, supervisor, working conditions, etc.  Not indifferent to the organization…willing to stay ? 7

8 From Satisfaction to Engagement Although there are some country-specific drivers, a consistent set of engagement drivers is emerging globally Employee Engagement and Business Results Engagement Drivers in this Century  The work itself, including opportunities to grow  Confidence and trust in leadership  Recognition and rewards  Communication 8

9 Company Strategy Brand values Business Environment Business Performanc e - Employee Retention - Customer Satisfaction - Performance - Quality Metrics Employee Perceptions & Behaviors Human Resources Strategy & Organization Communications How employees experience their work environment has a critical impact on business results Employment Value Chain From Strategy to Performance Results 9

10 …Defining Employee Engagement 10

11 Defining Employee Engagement 1.Engagement is the result of how employees perceive the work experience–the company, its leaders, the work itself, the communication climate and colleagues 2.Employee engagement manifests itself as: A willingness to go the extra mile Motivation to perform to the highest standards Creative energy applied to work tasks and duties Customer orientation A vested interest in the company’s success 3.Employee Engagement is both a reflection of the culture and primary force is shaping the culture 11

12 Culture Culture: The patterns of behavior the organization and its people reward and sustain. “The way things get done around here.” Culture: The sum of all factors that make an organization and its people unique and identifiable Culture: The way that an organization’s stated values are internalized and thus influence the building blocks: Strategy Structure People Processes Employee engagement is both an outcome of and a force in forging a culture 12

13 Organizational Building Blocks and Culture CULTURE PeopleStrategy Processes Structure Vision Values Mission 13

14 Studies have linked Worker Engagement to Business Outcomes Extensive research demonstrates that high levels of engagement (typically 60% or more) create positive employee outcomes which, in turn, drive business results Izzo & Withers (2000)National Research Forum (2004) Corporate Leadership Council (2004) 29% higher in Revenue 50% higher in Customer Loyalty 44% higher in Profitability 44% higher Retention 56% higher Customer Loyalty 50% higher Safety 50% more Productive 33% more Profitable Engaged employees: increased performance of up to 20 percentile points are 87% less likely to leave an organization Vance (2006) 70% more Productive 34% higher Customer Satisfaction 80% fewer Union Grievances Highly Engaged Companies Highly Engaged Companies 14

15 Employee Engagement Index and Drivers of Engagement… Asking Employees 15

16 Engagement and Drivers Employee Engagement index is typically comprised of five items: Engagement Index 1. I feel a strong sense of commitment to this company. 2.I am proud to work for this company. 3.I would recommend my organization to others as a good place to work. 4.I intend to stay with this company over the next 12 to 24 months. 5. I am willing to go “above and beyond” in my job to help this company be successful. 16

17 Drivers of Engagement Once measured, what drives engagement? The experience of: Strategy Structure Processes People Identified and analyzed Twelve dimensions Fifty to sixty “items” Open ended question 17

18 External Influences on Engagement Regional and national characteristics State of the economy The sector The external brand image of the organization Leadership’s public personalities 18

19 Stages of Employee Engagement 19

20 From Satisfaction to Engagement Committed  Loyal to organization, optimistic for the future  Sees the bigger picture with a sense of how job fits in  Collaborates to achieve team goals  Openly ambitious for self, team and company  Believes the organization will enable his/her good performance  Has a sense of belonging to organization–feels valued and involved at work —expresses views freely Motivated  Contributes energetically  Strives to achieve personal goals  Values achieving personal goals more than team/organizational goals  Focused individual contributor  More loyal to personal professional goals rather than organization Advocate  Contributes discretionary effort  Proactively seeks opportunities to serve the mission of the organization  Speaks positively about the organization’s products and services  Recommends organization as an employer  Is willing to withhold criticism and/or be constructively critical for the good of the organization  Resilient to short-term dissatisfiers Satisfied  Enjoys job  Is not dissatisfied with terms and conditions  Content to work alone  Does not go “above and beyond”  Not necessarily a team player  Often externally focused Disengaged Workers 20

21 Engagement Stages Reflect Employee Disposition and Management Focus Engagement stages: Satisfied Motivated Committed Advocate Insights and applications: Psychological State Factors Employee Profile Management Focus 21

22 Satisfied Stage Employee Profile Psychological State Management Efforts to Optimize Working Relationship Satisfied  Enjoys job  Is not dissatisfied with terms and conditions  Content to work alone  Does not go “above and beyond”  Not necessarily a team player  Often externally focused  Work tools, resources and equipment  Work environment  Reward (reward level and understanding of the rationale for reward change)  Recognize work efforts 22

23 Motivated Employee Stage Employee Profile Psychological State Management Efforts to Optimize Working Relationship Motivated  Contributes energetically  Strives to achieve personal goals  Values achieving personal goals more than team organizational goals  Focused individual contributor  Establish fair performance goals  Communicate clear expectations about job role  Regularly clarify priorities and feedback  Support by removing obstacles to optimal performance  Recognize and reward his/her performance  Delegate work to this employee  Support employee skill development 23

24 Committed Stage Employee Profile Psychological State Management Efforts to Optimize Committed  Loyal to organization, optimistic for the future  Sees the bigger picture with a sense of how job fits in  Collaborates to achieve team goals  Openly ambitious for self, team and company  Believes the organization will enable his/her good performance  Has a sense of belonging to organization–feels valued and involved at work—expresses views freely  Resilient to short-term dissatisfiers  Help employees build meaningful long-term careers  Ensure recognition and reward for long term commitment  Listening to employees, sharing insights and experience, making time to informally develop the employee  Develop employee trust by fairness consistency transparency  Develop understanding among employees of long-term vision and business plans  Promote organization values and reinforce them through management behaviors 24

25 Advocate Employee Stage Employee Profile Psychological State Management Focus Advocate  Contributes discretionary effort  Proactively seeks opportunities to serve the mission of the organization  Speaks positively about the organization’s products and services  Recommends organization as an employer  Is willing to withhold criticism and/or be constructively critical for the good of the organization  Communicate organization's progress and challenges  Relate business results to team and individual roles  Endorse strong customer focus  Share understanding of customer needs with team  Challenge and grow through delegation  Establish comprehensive career development plans  Encourage upward communication  Encourage innovation  Recognize and reward 25

26 Core Engagement Elements and Program Implications Acts in accord with the expressed values of the organization Allocates resources in ways that support strategy Visible & transparent involvement with the customers and employees Making the connections between strategy and process that will aid employees in seeing the big picture Treated with respect Work valued for overall contribution Opportunity to grow in job and laterally Work aligned with the success of the enterprise Participating in developmental opportunities Reward practices that are perceived as fair and competitive Total compensation approach (bringing it all together) Benefits components integrated with the total reward package Employees recognized in tangible and immediate ways Exploration of non-cash recognition for outstanding performance Organization culture that is built on a two-way exchange of information Communication that is planned Supervisors are active participants in the cascade of information Full mix of media to reach all levels of the organization (adult learning model) Communication training for supervisors Leaders and managers take communications seriously Leadership The Work Itself Recognition and RewardsCommunication 26

27 Conclusion Critical success factors:  How the mission is framed and internalized for employees  How values are lived (made apparent) by leaders and managers  How customer input information is used to inform employees  How employees are treated: Two-way communication environment Recognition Development Rewards 27

28 Conclusion 1.Presented an engagement model and the stages of engagement 2.Examined how this information provides insight in developing approaches for:  Creating an engaged workforce  Building Communication & HR programs  Touched the question of Culture  Influencing positive business results 3.Questions and discussion? 28


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