CAUBO June, 2007 Employee Surveys as a Strategic Tool: Making Use of Employee Research Data

Content Current approaches to employee research Survey analytics to guide action planning Feedback and action planning with a purpose Employee research in the context of a University: Challenges and Opportunities

Traditional Employee Surveys Mercer’s Survey Approach Current Approaches to Employee Surveys Designed to inform organizational decisions Traditional Employee Surveys Mercer’s Survey Approach Improve employee satisfaction Focused solely on satisfaction with pay, benefits, job security, working conditions — the “Me” issues Often used strictly to avoid negative occurrences Strictly an HR process, with little connection to the business strategy Priorities determined only through benchmarking — How do we compare? Improve employee satisfaction and engagement Focused broadened to include efficiency, leadership, teamwork, customer orientation, and career development — the “We” issues Used to better leverage people assets to achieve business results Integrated diagnostic with direct connection to organization strategy Priorities determined by identifying key drivers of employee satisfaction and engagement

Current Approaches to Employee Surveys Engagement lies at the heart of a winning employee experience Employee engagement is a heightened and sustained emotional and intellectual connection employees have for their job, organization, and co-workers that dramatically increases discretionary effort and significantly improves work performance* It calls for a partnership between our employees and the organization - a partnership that drives organizational transformation and performance Extraordinary employee engagement drives performance *Adapted from US Conference Board definition of employee engagement

Current Approaches to Employee Surveys What does engagement mean to employees? Current perspectives on engagement indicate that it includes three major elements: Cognitive Affective Behavioral The specific manifestation of those elements will vary from organization to organization, reflecting, among other things: History of the organization Culture of the organization Mission of the organization Employment brand of the organization Empirical analysis of survey data will reveal the specific make-up of engagement, as influenced by the unique qualities of the work place and people

Current Approaches to Employee Surveys Measuring engagement for your employees Because engagement means something different to different populations within different industries and different organizations, survey design should include a range of possible index elements UOttawa’s Engagement Index Mercer’s Engagement Index I am proud to work for the University of Ottawa. I am willing to go beyond the requirements of my assigned duties to help the University succeed. I have a strong sense of commitment to the success of the University. I have a strong sense of commitment to the success of my faculty/department/service. I have a strong sense of commitment to the success of the University’s students. I am proud to work for this organization. I am willing to go “above and beyond” to help this organization succeed. I have a strong sense of commitment to this organization. I would recommend this organization to friends and relatives as a good place to work. At the present time, I am not seriously considering leaving this organization.

Content Current approaches to employee research Survey analytics to guide action planning Feedback and action planning with a purpose Employee research in the context of a University: Challenges and Opportunities

Survey Analytics to Guide Action Planning Creating an engagement index Factor analysis of survey items reveals engagement index Common components: Pride in the organization Commitment to the organization Willing to go beyond the requirements of the job Typically find strong factor loadings and high reliabilities (above .80) Relies on effective survey construction Method of representing the index in numerical terms depends on desire for ease of replication, ease of interpretation/understanding More than one engagement index? Conceptual and empirical considerations

Survey Analytics to Guide Action Planning Engagement driver analysis Determining the key drivers of engagement informs the organization on how they might deploy resources most efficiently to support and enhance engagement among employees There are many “lists” of employee engagement drivers, and certain items appear on many lists, such as: Work that gives a feeling of personal accomplishment Challenging work opportunities for continuous learning Career advancement opportunities Paid fairly given performance and contribution to the organization Belief that the organization is well-managed Mercer research indicates that key drivers of engagement vary among organizations and among business units within each organization

Survey Analytics to Guide Action Planning Engagement driver analysis Hypothesized Drivers Key Driver #1 ? Key Driver #2 Leadership & Direction Resources to Do the Job Customer Service Communication Training Professional Development Immediate Manager Performance Management Compensation & Benefits Teamwork & Collaboration Ethics & Integrity ? Employee Engagement Key Driver #3 ? ? Key Driver #4 ? Key Driver #5

Survey Analytics to Guide Action Planning Engagement driver analysis (cont’d) 54. Overall, I am confident I will be able to achieve my long-term career objectives at this organization .34 12. I have a clear understanding of our organization’s future direction .27 Employee Engagement 32. My supervisor encourages open, honest two-way communication .21 .19 10. I am given good opportunities to improve and develop my skills at my organization .15 13. Employees at my organization are treated fairly, regardless of position or background

Survey Analytics to Guide Action Planning Analyzing key findings An overview of the survey results for the organization as a whole Analysis of key differences across segments Analysis of important differences among demographic groups (e.g., short- vs. long-tenure employees) Comparisons to normative data Identification of key drivers of employee engagement Discussion around integrating key findings into ongoing human capital strategies

Content Current approaches to employee research Survey analytics to guide action planning Feedback and action planning with a purpose Employee research in the context of a University: Challenges and Opportunities

Feedback and Action Planning Typical patterns of survey use Always conducted (73%) Survey Development Survey Administration Survey Processing Survey Reporting and Analysis Survey Feedback to Employees Feedback and Action Planning Training Action Plan Implementation Tracking and Monitoring Action Planing Sessions Integration of Action Plans Sometimes conducted (68%) Occasionally and/or ineffectively conducted (44%) Organizational Improvement

Feedback and Action Planning Building acceptance “There must be something wrong with the questionnaire because our scores couldn’t be that low.” “I need to ensure we let everyone know that this action is driven by the survey” Action Denial “What a bunch of complainers. They don’t realize how good they have it here.” Decision Anger “I think some of our scores are low because we simply haven’t communicated all the good things we are doing.” “There are things we can do to change some of this . . ..” Acceptance Negotiation “The scores are low, but what should we expect given the changes we have been going through? I’m surprised they’re not even lower!” Depression “These results are awful. I don’t know how we will survive if our employees feel this way.”

Progress communication Establish change teams Feedback and Action Planning Survey follow-up process: P.A.C.E. Priorities Accountabilities Ownership of issues Progress communication Accountability Change Allocate resources Establish change teams Root-cause analysis Recommendations Implementation Trainer Notes Communicating Actions - Alignment of Timing If possible, recommendations should have an estimated financial value in either saving or benefit terms. Communication during the follow-up process helps to ensure that recognition is won for action taken. This communication of actions taken can have a significant impact on long-term employee perceptions of survey effectiveness and response rate for future surveys. The alignment of action throughout the organization will ensure optimal benefit is gained from the action implementation phase. In other words, making sure that actions happen at the same time, wherever possible. The five types of actions outlined earlier need to be communicated at the same time if at all possible. This is shown in the slide above. Evaluation

Feedback and Action Planning Assessing the context for action planning Collaborative People • • Consultative Productivity drivers • Directive Rewards Processes Style of leadership Transformational Mercer’s Change DynamicTM Structure Scale of Type of change change Decision making Incremental Information and knowledge The Change Dynamic is the internal look. It helps us understand the capacity of the organization to change relative to what the business imperative requires. We examine four key organizational elements: the scale of change the type of change the depth of change required the style of leadership Notice that Mercer’s Human Capital Wheel is linked to the type of change. This is because the levers for improved productivity are so closely aligned with meeting the business imperatives. Depth of change (sources of Enhance action planning and engage leadership by mapping survey results back to the University’s strategic objectives and considering the change dynamics involved energy) • Whole organization • Business unit • Personal

Feedback and Action Planning Depth of change Organization-Wide Local Issue 1 Issue 2 Short-term Issue 4 Issue 3 (local support) Issue 5 Long-term Issue 3

Feedback and Action Planning Accountabilities Development of Action Plans Communication of Actions Development of Budgets and Integration with Business Planning Process Monitoring of Actions Employee Updates

Feedback and Action Planning Accountabilities Senior Administration Follow-up Champion Issue 1 Champion Issue 2 Issue 3 Data Refinement e.g. focus groups/management review Supported by: Specialists (HR, IT, Comms, etc.) Local Leaders Special Issue Project Teams Cross-functional teams

Feedback and Action Planning 10 tips for communicating results Communicate results and the process for next steps as soon as possible. Prompt communication establishes credibility, helps avoid rumors and ensures information is official and accurate Structure expectations by explaining the time-scale and responsibilities for follow-up Consider which communication vehicles are available and best Share the purpose and goals of the survey process Communicate University overall first, then faculty/service results and local results Handle the sharing of local results with sensitivity Present a balanced picture of strengths and concerns Restrict the number of issues to the ‘vital few’ which have the greatest impact on performance Demonstrate the links between the survey findings and strategic objectives Establish clear timetables, responsibilities and deliverables for action planning

Feedback and Action Planning Action planning & implementation What are we doing already? Actions are currently in place to address the issue. The requirements are: Review the action and modify as required Communicate the effectiveness of the action to employees In-Process Activities What can we do in the short-term? Actions can be fully implemented within one year of conducting the survey. The requirements are: Clarify root causes of problem, develop options Develop action plan with budget, assigned responsibilities and schedule Short-term Activities What are our longer-term goals? Actions will require one to two years to fully implement. The requirements are: Clarify root causes of problem, develop options Develop action plan with budget, assigned responsibilities and schedule Long-term Activities

Feedback and Action Planning Survey feedback sessions to develop insights Survey feedback sessions with employees help leaders become more deeply involved in the survey process by gaining a better understanding of the areas of concern: Review, present and explain survey results, providing the case for priority areas Brainstorm – List issues and write down all ideas / reactions Categorize statements – Draw possible connections between ideas / reactions Develop ‘core’ statement of problem – Generate through individual attempts, consensus, or start with item wording Identify actions to address core statements and check for completeness – Who, what, when, where, why, how… Finalize problem statement – Modify or add to a problem statement if necessary (often incorporating answers to questions above) Generate recommendations for solutions Select next issue

Feedback and Action Planning Monitoring and evaluating The process of monitoring and evaluating progress is critical to lead and demonstrate change. Maintain the momentum on the survey Make the link between the survey results and improvement initiatives to clearly demonstrate that employee input does make a difference Share accomplishments: Measure progresses versus the measures of success you previously identified; report progress on a regular basis and give credit for actions taken; communicate on the status of any outstanding issues with employees Continue to listen to your employees Invite feedback from employees to gauge progress, either formally (during interviews…) or informally Discuss actions / progress / challenges with your managers/leaders Share key learnings Identify best practices and transfer them to other teams / departments

Content Current approaches to employee research Survey analytics to guide action planning Feedback and action planning with a purpose Employee research in the context of a University: Challenges and Opportunities

Challenges and Opportunities Clearing post-survey hurdles Cleared Unresolved Understanding why the University has conducted a survey Able to play an active role in contributing to the University’s objectives Process is disregarded Understanding the data First step in feeling involved in the feedback process Able to consider the results for oneself Data is disregarded Connecting the data to one’s own goals and objectives Motivation to communicate and take action No personal stake Communicating the results to one’s team Employees feel heard & see the value in the process Leader seen as “hiding” the data Involving the team in action planning Greater ownership, power, and cooperation One-person effort against inertia Potential for “getting it wrong” Communicating plans and activities Efforts and results are recognized Greater likelihood of cooperation Efforts and results may go unnoticed or be misunderstood

Challenges and Opportunities Employee research in a University setting Critical Audience Expert knowledge of research design, statistics Culture of skepticism and critique Participation Participation rates for University surveys are typically very low (typically 20% - 55%) Multiple Stakeholders Administration Faculty Support Staff Timing of process Public scrutiny Role spans and perceptions The role of Dean may be perceived differently by incumbents versus employees Ownership of action planning

Challenges and Opportunities Employee research in a University setting Critical Audience Expert knowledge of research design, statistics Culture of skepticism and critique Connecting with other measures Trending against NESI scores over time Linkage analysis with other measures

Combining both approaches provides a more robust picture Challenges and Opportunities Measuring both what employees “say” and what they “do” Focus groups Senior leadership and HR interviews Climate surveys Exit surveys What employees say as measured through: Qualitative HRIS/payroll Employee turnover Performance/ productivity Student ratings How employees actually behave as measured through: Quantitative Combining both approaches provides a more robust picture