Employee Engagement – The Next Generation of Workforce Management Why Employee Engagement? The Next Generation of Workforce Management © 2016 Cultural Chemistry, LLC All right reserved

Employee Engagement – The Next Generation of Workforce Management Why Employee Engagement Top performing Business Increased Productivity Lower Employee Turnover Higher Customer Satisfaction Improved Quality Stronger Supplier Relationships Reduced Waste/ Improved processes Organizations that have an high employee engagement have 22% more stakeholder return compared to organizations who have average employee engagement Employee Engagement is directly tied to the success of the business. But why is employee engagement the current buzz word? © 2016 Cultural Chemistry, LLC All right reserved

Employee Engagement – The Next Generation of Workforce Management Current generations in the workforce Generation Birth year Age (2011) % of workforce 1 Experiences work as 2 Baby boomers1946 – – 6548%Team player Workaholic Title is the reward Generation X – 4622%Entrepreneur Eliminate the task Freedom is the reward Generation Y (millennials) %Participative Goal Oriented Meaningful work is the reward 1 4% of workforce is older than Current thinking originates from different generations in the workforce.

Employee Engagement – The Next Generation of Workforce Management Autonomy Employees at all levels have responsibility Employees can make decisions Manager focus on outcome – are coaches Strong relationships - teamwork AutonomyMasteryPurpose

Employee Engagement – The Next Generation of Workforce Management Mastery Being an expert in something Growing skills in this specific area Able to showcase specific knowledge Roles and jobs are clearly defined Strong employee development plan AutonomyMasteryPurpose

Employee Engagement – The Next Generation of Workforce Management “Why are we in business” is understood by all Mission and vision is aligned with this “why” Management walk the talk - ALWAYS Employees can align their work to the V&M Social Responsibility is key Profit motive is attached to purpose motive Purpose AutonomyMasteryPurpose

Employee Engagement – The Next Generation of Workforce Management From Focus to What Autonomy, Mastery & Purpose are the three focus areas when thinking about Employee Engagement. To improve those focus areas an organization can use the combination of these three tools: 1. Leadership 2. Communication 3. Organizational Development

Employee Engagement – The Next Generation of Workforce Management Leadership Defines a clear mission, vision & strategy; Communicates the vision clearly to the employees and keeps it in front of them; Communicates with all layers; Communicates success; © 2011 Cultural Chemistry, LLC All right reserved LeadershipCommunicationDevelopment

Employee Engagement – The Next Generation of Workforce Management Communication Translate vision, mission in a common language; Communicate with the employees not to the employees; Have meetings where day to day work is discussed and the bridge is made to the mission, vision & strategy; Leadership talks directly to employees during formal & informal meetings; Keep communicating and repeating the messages; LeadershipCommunicationDevelopment

Employee Engagement – The Next Generation of Workforce Management Organizational Development Job descriptions explain purpose of the role, skills needed and expected output of the role clearly tied back to the vision, mission and strategy; Each employee has a development plan to increase their knowledge and improve their output; Measure effectiveness of your approach and adjust the tools to the outcome of the measurement; CELEBRATE SUCCESS LeadershipCommunicationDevelopment

Employee Engagement – The Next Generation of Workforce Management Leadership: improve appreciation Challenge: Employees don’t feel appreciated. Facts: Owner took employees on free lunches, a boat trip, gave the tools needed when requested. But never explained why he provided the fun and tools. He thought “They just know”. The Solution: Awareness at the owner level around creating appreciation resulted in better communication to the employees. Appreciation efforts were linked to business results. Appreciation and engagement increased. Lesson learned: You can never over communicate. Never assume “they know”, always communicate and link appreciation to business results. © 2011 Cultural Chemistry, LLC All right reserved

Employee Engagement – The Next Generation of Workforce Management Communication: increase buy in to company mission Challenge: To let employees buy in to owner’s vision Facts: the owner has a strong belief in being socially responsible and creating products that are environmentally friendly. Employees do believe in the quality of the product but don’t believe in the purpose of the company. Many communications sent to the employees were cookie cutter and not customized to the organization and its mission. Solution: Employees and owner developed/reviewed core values and employees developed programs to implement the core values in their day to day work. All communications written with this in mind.

Employee Engagement – The Next Generation of Workforce Management Organizational Development : Recruiting Challenge: Reduce Turnover Facts: Within 18 months 6 employees left on their own terms, or needed to be let go. Hiring process is based on skills, only traditional channels are used to approach candidates. Demotivated and underperforming seems to be the main reason to separation. Solution: The recruiting process is overhauled. Job descriptions include a description of the company's values. Hiring managers are trained on how to look for a match in organizational culture and not solely on skills while interviewing candidates. Increased engagement levels, reduction of turnover and improved productivity are the result.

Employee Engagement – The Next Generation of Workforce Management Overview Autonomy Mastery Purpose Focus Leadership Communication Development (organizational) How Increased Productivity Increased Engagement Decreased turnover Outcome © 2016 Cultural Chemistry, LLC All right reserved