Looking Ahead: 2015 Hospital Workforce Engagement

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1 Survey Solutions Employee Engagement Looking Ahead: 2015 Hospital Workforce Engagement Actionable Insights from the 2014 Employee Engagement National Database

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4 Road Map Insights from the 2014 Employee Engagement National Database 3 Re-engaging Our Leadership Ranks Our Development Roadmap 2014 The Advisory Board Company advisory.com

5 5 An Overview of Advisory Board Survey Solutions Providing a Comprehensive Suite of Surveys and Support for Building a High-Performance Culture Employee Engagement Physician Engagement Best-in-class survey platform providing real-time data queries and prescriptive results User-friendly change management tools, expert consultations, networking Culture of Safety Strategic Action Planning Tool Physician-specific survey platform with Dedicated Advisor support Targeted questions for employed, affiliated, and independent physicians Nursing Engagement AHRQ culture of safety survey setup and administration Best-practice and action planning support Magnet-compliant survey instrument with department and unit-level drill-downs Hands-on nurse-leader training and expert consultations

6 Our 2014 Employee Engagement Database: A Snapshot Partner hospitals 665,000+ Respondents in our benchmark 82% Average member response rate Facility Type Post-Acute Care System Participation Physician Practice/ Clinic Children s and Specialty 1 10% 5% 29% 34% Outpatient 7% Non- 10% Clinical 2 5% Critical Access Health System 69% 31% Hospital Short-Term Acute 1) Includes psychology, children s, and heart institute. 2) Includes research and corporate services. Source: Advisory Board Survey Solutions Employee Engagement National Database, 2013.

7 7 How We Define Engagement Setting a High Bar To be considered "engaged" respondents must answer "Strongly Agree" to at least two of the four items listed here, and no less than "Agree" to any item. Excerpted from the Advisory Board s Employee Engagement Survey instrument: Source: Advisory Board s Employee Engagement Survey

8 8 National Engagement Hitting a Plateau After Three Years of Gains, Engagement Leveling off Engagement and Disengagement Trends Percentage by Calendar Year of Survey Administration 45% 40% 36.2% 39.0% 40.8% 41.1% 40.5% 35% 30% 25% 20% 15% 10% 5% 5.4% 6.5% 5.6% 5.5% 5.8% 0% * Percent Disengaged Percent Engaged * Year to date Source: Advisory Board Survey Solutions National Employee Engagement Database, 2014.

9 9 Gains Stagnant Across Departments Engagement Trends by Department Type Percentage by Calendar Year of Survey Administration 50% 44.1% 45.5% 45.3% 41.8% 44.8% 40% 39.9% 40.2% 39.5% 37.2% 34.8% 30% 36.8% 37.7% 36.9% 35.0% 32.2% 20% 10% 0% * Nursing Clinical Non-Clinical * Year to date Source: Advisory Board Survey Solutions National Employee Engagement Database, 2014.

10 10 Engagement Slowdown Comes as No Surprise Continuous Improvement Gets Harder As You Do Better Year over Year Increases Percentage of Facilities Improving Comparing Initial Scores to Relevant Database Median Percentage points among improving facilities that began above median Percentage points among improving facilities that began below median 63% Below median 40% Above median Source: Advisory Board Survey Solutions National Employee Engagement Database, 2014.

11 11 Last Year s Model Still Resonating Top 10 Drivers by Impact on Engagement Determined by Multivariate Regression Analysis of 42 Engagement Drivers 1 Driver I believe in my organization s mission. The actions of executives in my organization reflect our mission and values. My organization provides excellent care to patients. My current job is a good match for my skills. I am interested in promotion opportunities in my unit/department. My ideas and suggestions are valued by my organization. My organization helps me deal with stress and burnout. I understand how my daily work contributes to the organization s mission. My organization recognizes employees for excellent work. Executives at my organization respect the contributions of my unit/department Rank Rank ) Based on multivariate regression of 42 engagement drivers. The 2014 model contains 21 drivers with an r2 value of.63. 2) The driver replaced from spot 10 in the 2013 regression was Training and development opportunities offered by my organization have helped me to improve, which is #11 in the 2014 model. Source: Advisory Board Survey Solutions National Employee Engagement Database, 2014.

12 12 and Virtually Identical for High and Low Performers Top 10 Drivers by Impact on Engagement Determined by Multivariate Regression Analysis of 42 Engagement Drivers 1 Driver I believe in my organization s mission. My organization provides excellent care to patients. My current job is a good match for my skills. The actions of executives in my organization reflect our mission and values. I am interested in promotion opportunities in my unit/department. My ideas and suggestions are valued by my organization. My organization helps me deal with stress and burnout. I understand how my daily work contributes to the organization s mission. Training and development opportunities offered by my organization have helped me to improve. 2 My organization recognizes employees for excellent work. 1) The above median model contains 20 drivers with an r2 value of The below median model contains 21 drivers with an r2 value of ) The driver replaced from spot 10 in the below median regression is Executives at my organization respect the contributions of my unit/department, which is #11 in the above median model. Rank Engagement Below Median Rank Engagement Above Median Source: Advisory Board Survey Solutions National Employee Engagement Database, 2014.

13 13 How Do You Measure Up to Our High Performers? Performance Variation on Agreement with Top Impact Drivers, Percentage of Respondents Agreeing/Strongly Agreeing by Performance on Engagement Top 10 Drivers, Above Median Impact Model 2 I believe in my organization's mission Below Engagement Median Above Engagement Median Gap 81.5% 89.2% -7.8% Your Score My organization provides excellent care to patients 77.1% 85.7% -8.6% My current job is a good match for my skills 79.8% 83.6% -3.8% The actions of executives in my organization reflect our mission and values 58.2% 71.2% -13.0% I am interested in promotion opportunities in my unit/department 64.6% 70.7% -6.1% My ideas and suggestions are valued by my organization 51.3% 61.4% -10.0% My organization helps me deal with stress and burnout 37.7% 46.8% -9.1% I understand how my daily work contributes to the organization' mission. 82.6% 88.0% -5.4% Training and development opportunities offered by my organization have helped me to improve 59.9% 67.5% -7.7% My organization recognizes employees for excellent work 52.5% 63.1% -10.6% 1) Year to date 2) Drivers shown in rank order by impact Source: Advisory Board Survey Solutions National Employee Engagement Database, 2014.

14 14 Setting an Aspirational Bar Industry-Wide Opportunities for High Performing Organizations Performance Variation on Top 10 Impact Drivers: Organizations Above the Median Percentage of Respondents Agreeing or Strongly Agreeing Per Organization, % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Believe in organization's mission Organization provides excellent care Current job is good match for skills Executive actions reflect mission Interested in promotion Ideas and suggestions are valued Given support for stress and burnout Daily work contributes to mission Training and development are effective Organization recognizes employees Maximum 75 th percentile 25 th percentile Minimum ) Year to date Source: Advisory Board Survey Solutions National Employee Engagement Database, 2014.

15 15 Five Moves Worthy of Your Consideration Committing to Continuous Improvement in Reinvigorate leadership engagement 2 Better equip mid-level leaders to drive frontline staff engagement Identify the best opportunities to address hot spots in your leadership ranks Find the right mix of support across peers, executives, and HR partners 3 Set more meaningful goals for staff engagement 4 Leader-centric action planning Cascade goals and targets that effectively motivate leaders to turn the dial on engagement Give leaders one plan to drive performance improvement for their unit or department 5 The cultural approach to engagement Over-invest in building an ingrained, unique culture that advances your specific market vision Source: Advisory Board Survey Solutions interviews and analysis.

16 16 Raising the Roof (and the Floor) Progressive Organizations Continue to Redefine What s Possible Variation in Percentage of Staff Engaged by Organization By Calendar Year of Survey Administration 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 76.2% 88.2% 47.3% 47.2% 33.9% 33.7% 10.0% 13.3% Surveyed in 2013 Surveyed in 2014 (to date) Maximum 75 th percentile 25 th percentile Minimum Source: Advisory Board Survey Solutions National Employee Engagement Database, 2014.

17 Road Map Insights from the 2014 Employee Engagement National Database 3 Re-engaging Our Leadership Ranks Our Development Roadmap 2014 The Advisory Board Company advisory.com

18 18 Trouble at the Top? Executive Engagement Declines Began in 2013 Percentage Engaged by Leadership Level, 2014 Change in Engagement Level, % 57.9% Executive Director/ Manager Frontline Staff 0.2% 38.9% (3.8%) (6.4%) Executive Director/ Manager Frontline Staff Source: Advisory Board Survey Solutions National Employee Engagement Database, 2014.

19 19 Leadership Engagement a Leading Indicator Clear Connections Between Leadership and Frontline Engagement Correlations Between Leadership Engagement, Leadership Effectiveness, and Staff Engagement.67 CORRELATION BETWEEN MANAGER EFFECTIVENESS AND ENGAGEMENT.39 CORRELATION BETWEEN LEADER ENGAGEMENT AND FRONTLINE ENGAGEMENT.31 CORRELATION BETWEEN LEADER ENGAGEMENT AND MANAGER EFFECTIVENESS Source: Advisory Board Survey Solutions National Employee Engagement Database, 2014.

20 Reinvigorate Leader Engagement 20 What s Most Important To Leaders? Top 10 Engagement Drivers For Leaders Determined by Multivariate Regression Analysis of 42 Engagement Drivers 1 Rank Executives All Staff Rank Rank Managers and Directors All Staff Rank 1 Excellent care 3 2 Benefits meet my needs N/A 3 Executive actions reflect our values 2 1 Believe in mission 1 2 Executive actions reflect our values 2 3 Job matches my skills 4 4 Executives respect my department s contributions 10 4 Excellent care 3 5 Effective performance reviews 13 6 Job security 14 7 Right amount of autonomy 21 8 My work contributes to mission 8 9 Boss communicates tough messages N/A 10 Clear performance expectations 20 5 Recognition for excellent work 9 6 Training helps me improve 11 7 My ideas are valued 6 8 My work contributes to mission 8 9 Job security Interest in promotion opportunities 5 Drivers that are in the top 10 impact list for both executives and mid-level managers appear in bold 1) Based on multivariate regression of 42 drivers. For executives, regression contains 11 drivers and r 2 =.42. For other leaders, regression contains 24 drivers and r 2 =.55 Source: Advisory Board Survey Solutions National Employee Engagement Database, 2014.

21 21 Where Are the Biggest Gains and Declines? Trends For Top Impact Drivers Across All Leaders Calculated Using Percentage Agree/Strongly Agree Comparing Surveys Administered in 2012 vs Driver Executive Impact Rank Mid-Level Impact Rank Executives Mid-Level Leaders Frontline Staff Excellent care #1 #4 +0.9% +0.8% -0.4% Executive actions reflect our values #3 #2-8.2% -4.8% +0.1% Job security #6 #9 +0.1% -4.1% -0.9% My work contributes to mission #8 #8 +1.3% +0.9% -0.6% 1) 2014 data is year to date; trend was compared to 2012 because that is when leader engagement started to decline Source: Advisory Board Survey Solutions National Employee Engagement Database, 2014.

22 22 Where Are the Biggest Gains and Declines? Trends For Additional Leader Top Impact Drivers Calculated Using Percentage Agree/Strongly Agree Comparing Surveys Administered in 2012 vs Driver Impact Rank Executives Mid-Level Leaders Frontline Staff Benefits meet my needs #2, Executives -2.3% -5.5% -0.5% Executives respect my department s contributions #4, Executives -4.9% -2.6% +0.8% Effective performance reviews #5, Executives -4.6% -0.7% +1.6% Right amount of autonomy #7, Executives +1.3% +0.4% -1.0% Boss communicates tough messages #9, Executives -2.0% +0.2% +2.5% Clear performance expectations #10, Executives +0.6% +1.5% -0.1% Believe in mission #1, Mid-Level -2.1% -1.8% -0.1% Job matches my skills #3, Mid-Level +2.8% +0.5% -1.2% Recognition for excellent work #5, Mid-Level -4.1% -1.8% +1.8% Training helps me improve #6, Mid-Level +2.8% +2.5% -0.7% My ideas are valued #7, Mid-Level -2.8% -2.1% -0.9% Interest in promotion opportunities #10, Mid-Level +1.1% -0.9% -2.2% 1) 2014 data is year to date; trend was compared to2012 because that is when leader engagement started to decline Source: Advisory Board Survey Solutions National Employee Engagement Database, 2014.

23 23 A Dedicated Focus on Re-Engaging Your Leaders Leadership Hot Spots Likely Require a Differentiated Approach Key Questions for Addressing Leadership Hot Spots 3 What else do I need to do to ensure my actions reach this group? 1 Do our executives, directors, or managers merit special focus? 2 Which drivers represent the best opportunity to address those hot spots? How much overlap is there with our opportunities overall? Source: Advisory Board Survey Solutions interviews and analysis.

24 Road Map Insights from the 2014 Employee Engagement National Database Re-engaging Our Leadership Ranks 3 Our Development Roadmap 2014 The Advisory Board Company advisory.com

25 25 Onsite Innovation in Action DA-Led Action Plan Tune Up Sessions Highly Effective for HSHS Percentage Point Increase in Engagement Eastern Wisconsin Division Departments 17.3% Led by One-on- One Participant 8.5% Other Leaders One-on-One Action Plan Tune Up Sessions 30 minutes per leader Participants selected based on combination of low engagement, low manager effectiveness index, high unionization risk index Sessions conducted during action plan implementation, focused on increasing project depth and scope, overcoming obstacles Source: Advisory Board Survey Solutions interviews and analysis.

26 26 New Options to Reduce Survey Fatigue Magnet and AHRQ Questions for Clinical Staff Now Available AHRQ Administration Questions for Magnet 2016 Measuring and reporting on AHRQ items as custom questions available to all Action planning tools support culture of safety initiatives Simultaneous or staggered administration of AHRQ survey with engagement survey can be added to your contract Validated bundles map to 6 of 7Forces of Magnetism required for 2016 designation Benchmarks for all items drawn from employee, nurse and culture of safety data sets Signoff on approach obtained from Magnet Source: Advisory Board Survey Solutions interviews and analysis.

27 27 Integrated Results Reporting (2015) Source: Advisory Board Survey Solutions interviews and analysis.

28 A parting thought 28 Considering Our Alternative Approach Top Opp Approach to Driving Engagement and Alignment 1 z 2 3 Conduct employee survey Identify best improvement opportunities Pursue responsive tactics Cultural Approach to Driving Engagement and Alignment 1 z Define market vision Define unique culture to advance vision Determine approach to ingrain culture Pursue proactive tactics Conduct employee survey Source: Advisory Board Survey Solutions interviews and analysis.

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30 30 For More Information Laura Knowles Member Services (202)