Employee Engagement Sample Results

2 Defining Employee Engagement Employee Engagement is a critical measure of person-organization alignment Engaged employees share a common set of attitudes and beliefs which, taken together, reflect a vital aspect of organizational health -Pride and Commitment -Job Satisfaction -Motivation -Advocacy

3 Engagement Impact - Examples Why is it better to have employees with HIGH vs. LOW levels of engagement? An estimated 19% of the US workforce is disengaged, costing the US economy upwards of $300 Billion in lost productivity* Fortune's 100 Best Companies to Work For have had a 10.6% annual return since 1998, while companies listed on the S&P 500 have had only a 5.7% return in that period * *Information from Izzo and Withers (2000)

4 Engagement Impact – Continued Highly engaged companies are * : 29% higher in revenue 50% more likely to have above-average customer loyalty 44% more likely to turn above-average profits Highly engaged workgroups are ** : 44% higher retention 56% higher in customer loyalty 50% more productive 33% more profitable *Information from Izzo and Withers (2000) **Information form The Right Group and Manpower (2002)

5 Importance of Engagement It is essential that every person understands and commits to your business strategy—as stated in your brand, vision, mission or values—for your organization to be successful in the marketplace Employees must know specifically what they can do on their individual jobs each and every day to truly make a measurable difference in bottom line results Engagement must be based on strong diagnostics and executed with a focused, creative strategy designed to prove the impact on business results

6 Results

7 Survey Participation 500 Surveyed  475 Responded = 95% response rate Margin of Error = +/- 95% confidence Surveys were administered on-line and processed by Right Management Rating Scale: Strongly Agree Neutral Disagree Strongly Not Agree Disagree Applicable NA

8 Sample Characteristics Job Level VPs & Above 8 1.7% Team Leader/Director % Team Member % % Division Claims Services % Account Services % Information Technology % Legal % Finance % Underwriting & Product Services % HR & Organizational Effectiveness % % Tenure Less than 1 year % 1 to up to 3 years % 3 to up to 10 years % More than 10 years % % Location Phoenix home office % Tucson field office % Other field office % % n %

9 Interpretation Guidelines All Systems Go! Warning Red Alert! % Favorable 60 or more or less

10 Theme Level Analysis Reliability Items

11 Item Level Analysis: Culture (8) Item N Mean Employees feel encouraged to own their work, support one another and suggest innovative ideas; however, they don’t feel comfortable speaking up and expressing differences of opinion is not encouraged.

12 Qualitative Analyses

13 One Improvement (N= 379) Employees recommended improvements to their benefits (e.g., higher salaries, telecommuting opportunities, additional time off) -Overall compensation, either through salary increases or significantly increased vacation time -More opportunities for telecommuting, as long as job duties are covered. -Wages paid more fairly on the job and responsibilities, instead of by the broadband -TYPE goals - to change or remove this process. Even though it has been addressed to let team members know if they are not participating, not all team members participate, yet receive tip goal payments Employees would like to have development plans and see improvements in the performance evaluation system -Simplified performance evaluation system, and a improved HRIS -Change how employees are reviewed. The 360 reviews are useless, and the milestone settings are too unreachable which discourages more than it encourages. -Hold ALL employees accountable for their work performances/attendance

14 What Not to Change (N= 206) Employees like the benefits they receive (e.g., medical, retirement plans, vacation, etc.) -I very, very, very much appreciate the benefits package provided to us. It is unheard of in the business community and puts my mind at ease. -No more additional costs associated with our health benefits. -Flex time or working from home. Employees appreciate the organizations investment in employee development -The opportunity for education offered to all of us. This benefit is better than any other company and this organization encourages everyone to take advantage of this. -I would not want the education benefits to change, I love that this organization supports our personal and professional growth. -The opportunities offered to move or learn about different aspects of the company or outside the company.

15 Employee Engagement

16 Defining Employee Engagement Employee Engagement is a critical measure of person-organization alignment Engaged employees share a common set of attitudes and beliefs which, taken together, reflect a vital aspect of organizational health -Pride -Job Satisfaction -Motivation -Advocacy

17 Right’s Model of Employee Engagement Satisfaction Motivation Pride Advocacy Performance & Profitability Sales & Employee Attraction Customer Service Productivity Turnover Employee Engagement Business Outcomes TM

18 Employee Engagement Level 60% Low Medium High 30% Engaged Not Engaged % Engaged 48.5% 51.5%

19 Employee Engagement Model 2005 Survey 49% 60% 74% 75% Right Benchmark* 60% 74% 86% 89% 81% products/services 74% employer Pride Advocacy Motivation Employee Engagement Satisfaction TM 92% 75% *Best-in-Class Companies - 14% Reliability = %- 14% - 11% - 1% - 11%

20 Key Outcomes

21 Key Outcome Measures Item N Mean

22 Retention Which statement best describes your current plans? % Agree I am leaving this organization as soon as I can 2% I plan on leaving in the next 6 months 6% I plan on being here another year but I am not sure after that 11% I plan on being here for the next 2 years 26% I have no plans whatsoever to leave 55% Total100%

23 Driver Analyses

24 Model of Organization Performance Item 2 Drivers Impact Engagement Impact Key Outcomes Item 1 ? ? ? Item 3 ? Motivation Satisfaction Pride Advocacy Outcomes

25 Key Driver Analysis  Engagement Driver Impact Outcome Employee Engagement * MY LEADER.15 R = 36% 2 *Composite measure of Advocacy, Pride, Motivation, and Satisfaction. COMMUNICATION.17 REWARD & RECOGNITION.24 CULTURE.15

26 Key Driver Analysis  Employee Attraction Drivers Engagement Impact Key Outcome.13 Motivation Satisfaction Pride Employer Advocacy Employee Attraction* Communication Reward & Recognition My Leader R = 39% This organization promotes employees who deserve it. (Reward & Recognition, 25%) 60. The Executive Team works well together. (Executive Leaders, 28%) Culture 2. I feel well informed about what is going on. (Communication, 45%) This organization rewards its employees well compared to its competitors. (R&R, 35%)

27 Segmentation Analysis

28 Engagement – Great Place to Work Matrix Great Place to Work High Low High Stars 55% Disconnected 15% Free Agents 15% Benchwarmers 15% Engaged

29 Demographic Segmentation Stars Bench Free-Agents Saboteurs warmers Level VPs & Above (8) 100% 0% 0% 0% Team Leader/Director (42)76% 10% 4% 10% Team Member (413)44% 30% 1% 25% Tenure Less than 1 year49% 29% 0% 22% 1-3 years37% 28% 3% 32% 3-10 years48% 31% 2% 19% More than 10 years49% 26% 1% 24% Division HR75% 17% 0% 8% IT58% 27% 0% 15% Legal58% 25% 0% 18% Claims Services48% 34% 1% 17% Finance 47% 22% 6% 25% Account Services46% 23% 1% 30% Underwriting35% 40% 0% 25%

30 Key Differences Analyses

31 Demographic Differences Key VariablesDemographic Variables LevelLocationDivisionTenure My Leader Culture Work Environment Executive Leadership Recognition & Rewards Communications Learning & Development Engagement Retention Great Place to Work Employee Attraction

32 Demographic Differences - Level The ratio of engaged to disengaged employees is best among Team Leaders and VPs & Above.8 to 1 4 to 1 8 to 1 Ratio N=413 N=42 N=8

33 Demographic Differences - Level Team Members are significantly less positive about this organization as a Great Place to Work compared to VPs & Above. N=413 N=42 N=8

34 Summary & Implications

35 Summary and Implications Strengths: Within team effectiveness (role clarity, support, etc.) 55% Stars overall Team Leaders and VPs are highly engaged Opportunity Areas: Cross functional effectiveness Communication and perception of leaders 25% Benchwarmers overall Team Member engagement scores are moderate Level of Engagement: Medium, 49% Drivers of Engagement: Reward & Recognition Communication My Leader Culture

36 Next Steps

37 Next Steps Executive Managers Employees Leadership Presentation of Results Action Planning Sessions Employee Survey Communications Strategic Tactical Feedback EMPLOYEE OPINION SURVEY DATA Survey Data

38 Percentage Analysis of Written Comments