Keys to Organizational Effectiveness: The Importance of Engaged Employees

Your Speaker Today Mike Phillips Director of Feedback Strategy Cvent Web Surveys mphillips@cvent.com

Employee “Engagement” Defined Employee Engagement Study, July 2012 An engaged employee is enthusiastically and proudly involved in his or her organization and day-to-day job responsibilities, and engagement keeps employees committed to their work. “A heightened emotional connection that an employee feels for his or her organization, that influences him or her to exert greater discretionary effort to his or her work.” - The Conference Board “The measurable degree of an employee’s positive or negative emotional attachment to their job, colleagues and organization that profoundly influences their willingness to learn and perform at work.”

Why is Engagement Important? Engagement Benchmarks “Only 58% of public sector employees are fully engaged in their jobs.” “Depending on global region, industry type and company size, an average of 29% - 33% of employees can be considered at any particular point in time.” Engaged public sector employees are… Twice as likely to stay in their current job 2.5 times more likely to feel they can “make a difference” 2.5 times more likely to recommend their workplace to others Three times as likely to report being “very satisfied” in their jobs

Why is Engagement Important? Revenue: engaged employees play a major role in helping achieve revenue goals. Employee retention: engaged workforces enjoy higher retention rates. Productivity: engaged employees are more productive. Morale: engaged employees have higher morale. Creativity: engaged employees are viewed as more creative and innovative. Stakeholder loyalty: engaged employees are key to creating more loyal stakeholders.

Getting to “Engagement”

Employee Engagement – First Principles Source: Employee Engagement Benchmark Study Demand Metric Research Corporation December, 2013

Measuring Engagement “How do you measure effects of employee engagement?” Source: Employee Engagement Benchmark Study Demand Metric Research Corporation December, 2013

Creating an Engaged Culture “How do you create and maintain engagement?” Source: Employee Engagement Benchmark Study Demand Metric Research Corporation December, 2013

Key First Steps What are the components of engagement? How do my levels compare to others’ levels? How does engagement differ by division, department, region, management level, etc…? Measure Engagement Levels How do the drivers of engagement differ across various units and levels? Are current programs focused on engagement or something less? Assess Factors Driving Engagement Recognize and reward engagement (share stories, recognize good work, reinforce positives) Remediate areas of disengagement (create clarity, revise messaging, re-focus training) Take Action!

Current State of Measurement “In spite of the importance of employee retention to agency success, more than two-thirds of those surveyed do not have a formal process, such as employee opinion surveys or other research tools, for assessing employee engagement.” Employee Engagement Study, July 2012

Quantifying and Acting on Engagement

2 Key Dimensions to Engagement Alignment Empowerment Engagement

Engagement Segmentation Alignment Questions: I know what is expected of me at work. The mission/purpose of my company makes me feel my job is important. My associates (fellow employees) are committed to doing quality work. I have a best friend at work. In the last six months, someone at work has talked to me about my progress. Empowerment Questions: I have the materials and equipment needed to perform my duties. I have the opportunity to do what I do best every day. In the last seven days, I have received recognition or praise for doing good work. My supervisor cares about me as a person. Someone at work encourages my development. At work, my opinions seem to count. In the last year, I have had opportunities to learn and grow.

Engagement Segmentation Step 1: Based on agreement w/each of the 12 Engagement Statements, each Employee can be segmented into Engaged or Disengaged segments based on agreement with specific statements. aligned Productive contributors Do not use their own judgment or make their own decisions DIsengaged No connection w/organization Source of income only Engaged Make decisions and take actions that they believe are in the best interests of the company empowered Feel free to make their own decisions Do not feel responsible for success of firm Empowered

Engagement Segmentation Step 2: Predictive statistical analysis can then be performed to determine what attributes of the experience best predict differences between Engaged and Disengaged segments. DIsengaged No connection w/organization Source of income only Engaged Make decisions and take actions that they believe are in the best interests of the organization. Experience Attributes Defining the Difference

Employee Engagement Segmentation Basic Profile: Key Metrics Employee Engagement Segments “Engaged” Employee Segment Profile Empowered Engaged Aligned Disengaged Attribute Satisfaction Recommend Aligned w/Mission Empowered to Act Index 164 152 168 181 121 133 124 166 112 131 157 89 77 65 58 Below Average Agreement Above Average Agreement Index: Index of 100 = average for all respondents

Employee Engagement Segmentation Demographic Profile Report Example Employee Demographic Profile by Engagement Segment Above Average Below Average Index: Index of 100 = average for all respondents

Employee Engagement Segmentation Key Driver Analysis of Engagement % Importance in Predicting Employee Engagement

Employee Engagement Segmentation Key Driver Analysis of Engagement Key Primary/Sub-Drivers of Employee Engagement Attribute Importance Supervision 42% Supervisor is a Positive Influence 22% Regular Feedback on Performance 20% Problem Resolution 32% Feel Free to Solve Customer Problems 17% Have Tools Needed to Do Job 15% Training 26% Training is High Priority

Full Circle Employee Engagement and Organizational Effectiveness Committed Ambassadors New Service Ideas Empowered Problem Solvers Higher Retention Engaged Employees Great Stakeholder Experience Loyalty Strong Performance Results Prouder Employees Investment in Employees Source: Temkin Group

Mike Phillips mphillips@cvent.com 571-830-2149