1. The High Cost of Low Morale
Jason Turner
VP – Talent and Growth Initiatives, ArcBest

2. ArcBest
1923
+13,000
$2.7 billion
FOUNDED
EMPLOYEES
REVENUE IN 2016

3. Employee Engagement Defined
The pride, energy and optimism that fuels employees’ discretionary effort and intent to stay.
Discretionary: The power to decide.
To win customers – and a bigger share of the marketplace – companies must first win the hearts and minds of their employees. (Gallup CEO)
Gallup award winning companies routinely build employee engagement goals into their annual planning process.

4. Percentage of Employees Indicating High Levels of:
Employee Engagement Model
CEB ClearAdvantage Engagement Model
Engagement Metrics
Intent to Stay
An employee’s desire to stay with the organization, based on whether he or she intends to look for a new job within a year, frequently thinks of quitting, has actively been looking for a new job, or has taken steps such as placing phone calls and sending out résumés
Discretionary Effort
Employee willingness to go above and beyond the call of duty, such as helping others with heavy workloads, volunteering for additional duties, and looking for ways to perform the job more efficiently
Employee engagement is the combination of an employees’ pride, energy, and optimism that fuels their discretionary effort and intent to stay.
Percentage of Employees Indicating High Levels of:
Pride
Identification with company
Recommending the company
Energy
Sense of urgency
Excitement and/or enthusiasm
Focus
Optimism
Confidence in the future
Belief in progress
© 2017 The Corporate Executive Board Company.
All Rights Reserved. -CEB SYN
Source: CEB analysis.

5. Global Trends

6. Employee Engagement Level of the Firm
Why is employee engagement important?
Impact of Engagement on Financial Performance
Profit Margin2 4%
14%
Return on Assets1 9% 3%
N = 93 organizations.
Higher levels of employee engagement are also associated with higher:
Employee performance – Every 10% improvement in engagement can increase an employee’s effort level by 6%, which can improve an employee’s performance by 2%.
Employee retention – Every 10% improvement in engagement can decrease an employee’s probability of departure by 9%.
Customer satisfaction – Customers of firms with high levels of employee engagement are 9% more satisfied than customers of firms with low levels of employee engagement.
Firms with high levels of employee engagement report financial outcomes (i.e., return on assets, profit margin) three times higher than firms with low engagement.
Employee Engagement Level of the Firm
Bottom quartile
Top quartile
1 Return on assets is an indicator of how profitable a company is relative to its total assets, including how efficient a firm is at using its assets to generate earnings. It is calculated by dividing a company's annual earnings by its total assets. It may also be referred to as "return on investment".
2 Profit margin is a ratio of profitability calculated as net income divided by revenues, or net profits divided by sales. It measures how much out of every dollar of sales a company keeps in earnings.
© 2017 The Corporate Executive Board Company.
All Rights Reserved. -CEB SYN
Source: CEB 2014 ClearAdvantage Survey

7. Lack of Human Capital Development
IF WE ARE UNABLE TO ATTRACT AND RETAIN NEW TEAM
MEMBERS, INCLUDING SENIOR MANAGEMENT, WE MAY
NOT BE ABLE TO ACHIEVE OUR BUSINESS OBJECTIVES.

8. Current State of Employee Engagement
Satisfaction with the Employment Value Proposition
Impact of EVP Satisfaction on Employee Engagement
Engagement among employees in the United States is above average.
The 38 attributes of the employment value proposition fall into five categories. Employees in the United States are least likely to be satisfied with those related to opportunity.
Employees in the United States who are satisfied with their EVP are more likely to report high discretionary effort and intent to stay.
Most Important EVP Drivers
Not all aspects of the EVP are equally important. The attributes below are those most frequently selected by employees in the United States as reasons to join or leave an organization.
Rewards
• Compensation
• Health Benefits
• Retirement Benefits
• Vacation
Opportunity
• Stability
• Future Career Opportunity
Organization
• Ethics/Integrity
• Respect
People
• Coworker Quality
• Manager Quality
• People Management
Work
• Location
• Work-Life Balance
© 2017 The Corporate Executive Board Company.
All Rights Reserved. -CEB SYN

10. Top 10 Drivers of Satisfaction & Engagement
Job security
The work itself
Opportunities to use skills and abilities
Relationship with co-workers
Organization’s financial stability
Relationship with immediate supervisor
Compensation
Contribution of work to business goals
Benefits
Autonomy and independence
Senior management communication
Meaningfulness of job
Variety of work
Recognition of employee performance
Overall corporate culture 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 10 10
Source: Society for Human Resource Management (SHRM) 2011 Employee Job and Satisfaction Survey.

11. ArcBest Engagement Survey Topics
Employee engagement
Management style
Working relationships
Supervision
Culture
Communications
Succession planning

12. Engagement Survey - Supervision
My Supervisor:
Sets a good example.
Treats me fairly.
Is a good coach.
Keeps me informed.
Gives me performance feedback.
Recognizes my achievement.

13. Engagement Survey - Culture
Trust
Management trusts employees.
Employees trust management.
Positive Environment
High standards
Spirit of cooperation
Errors result in education, not punishment
Wellness

14. Engagement Survey - Communication
In my department:
There is clear communication of job details.
I have access to needed work information.
I know where to go for answers.
Upward communication is encouraged.
Across all departments:
Well informed about the company.
Consistent communications.

15. Engagement Survey – Succession Planning
Performance evaluations
Employee is an active participant.
Focus on helping employee improve.
Discussion of long-term interests.
Training & Development
Employee receives training necessary to advance.
Opportunities
Awareness of opportunities.

16. What Now?