© Ceridian Corporation. All rights reserved. The ‘Healthy Organisation’; engaging the power of employees James Slater - LifeWorks

© Ceridian Corporation. All rights reserved. Focus of the session ‘Healthy Organisations’ engage their employees ‘Engaged Employees’ stimulate ‘Healthy Organisations’ Virtuous Circle Vitality Focus Adaptability Profitability Innovation Sustainability

© Ceridian Corporation. All rights reserved. The UK Working Context Uncertainty and Instability More for less Always on work structures Move from fixed to uncertain roles Performance management Continual change and reorganisation Breakdown in traditional psychological deal and trust Loss of Security and Loyalty Work intensification

© Ceridian Corporation. All rights reserved. 38% of employees feel under excessive pressure in their jobs 26% of employees don’t think they have the right work life balance 46% of employees have noticed an increase in stress levels Around 175 million working days lost to sickness absence each year cost to economy £13 billion a year (CBI) Loss of productivity from those ill but still in work - estimated cost of £15 billion from mental ill health alone (Sainsbury Centre for Mental Health) MSD's affect 1 million in the UK - cost to society approx. £7 billion. (Work Foundation) The State of Working UK

© Ceridian Corporation. All rights reserved. Less than a quarter of employees are ENGAGED A climate of distrust is affecting many employees

© Ceridian Corporation. All rights reserved. The Big Idea – Success requires focusing on both performance and health The period of economic history from Enron to Lehman's was characterised by an obsessive focus on performance to the exclusion of health. As sure as burst follows bubble, organisations that failed to attend to their health have faltered and failed. Some organisations (e.g., Johnson & Johnson, Goldman Sachs, Southwest Airlines, Toyota, GlaxoSmithKline) not only outperformed their peers over the last decade, but now enter the next cycle in a fundamentally stronger position. How did they do this? They were able to hold two concepts at once - Performance and Health. Whilst relentlessly managing for shareholder returns, they also invested in their own health; the capabilities, attributes and competencies required for sustainable success.

© Ceridian Corporation. All rights reserved.7 – Most organisations fail to maintain above- average performance over time – very few sustain performance over the long-term All organisations aspire to be healthy and thrive. However, the path to get there varies The journey to health is a marathon, not a sprint The Big Idea – Success requires focusing on both performance and health

© Ceridian Corporation. All rights reserved. Organisations starting in the same era and the same field often have very different long-term performance (Founded: 1889) 2008 Revenues: USD billion Burroughs merged into Unisys in 1986 and ceased to exist (Founded: 1891) ( Founded: 1878) 2008 Revenue: £279.67m Accrington Stanley Football Club resigned from the Football League mid-season, entered liquidation in 1966 and ceased to exist

© Ceridian Corporation. All rights reserved.9 There are 9 vital signs of organisational health Innovation External orientation Environment and values Leadership Direction Accountability Coordination and control CapabilitiesMotivation Alignment Execution Renewal The organisation has a compelling vision and well articulated strategy, which is supported by its culture and values The organisation demonstrates executional excellence against its strategy and in delivering its services The organisation effectively understands, interacts, responds and adapts to its situation and external environment

© Ceridian Corporation. All rights reserved. Healthy Organisations create psychologically healthy workplaces The Psychologically Healthy Workplace Effective Leadership Work Load and Pace Role Clarity Career Path and Security Autonomy Workplace Justice Reduced Status Distinctions Social Environment Work Schedule Extrinsic Factors

© Ceridian Corporation. All rights reserved. An Engagement Model

© Ceridian Corporation. All rights reserved. An engaged employee

© Ceridian Corporation. All rights reserved. The Drivers of Engagement

© Ceridian Corporation. All rights reserved. The service to profit chain Company structure and Culture Effective Line Management Employee engagement and commitment Customer satisfaction with service Customer spending intention Change in sales Staff absence, presenteeism or disengagement The Healthy Organisation

© Ceridian Corporation. All rights reserved. The Engagement Ladder

© Ceridian Corporation. All rights reserved. Managers are key!!!!!!! Organisational Health Management Practice