The Engaging Leader. From Leader Personality to Employee Engagement. Tomas Chamorro-Premuzic, PhD

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2 The Engaging Leader From Leader Personality to Employee Engagement Tomas Chamorro-Premuzic, PhD 2

3 Defining engagement Engagement boosts performance 3

4 Disengagement kills productivity 4

5 Rise in self-employment rates And entrepreneurship 5

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7 1. boss or supervisor (most frequently cited) 2. no control over work 3. bad decisions by upper management 4. poor teamwork 5. the company 6. office politics 7. no accountability 7

8 1. boss or supervisor (most frequently cited) 2. no control over work 3. bad decisions by upper management 4. poor teamwork 5. the company 6. office politics 7. no accountability 8

9 Yes, bad bosses disengage 9

10 Promoting on technical expertise Ignoring the dark side 10

11 Bosses of disengaged employees 11

12 Last thoughts: Can we all be engaged? 12

13 Last thoughts: Can you be too engaged? Last thoughts: Can you be too engaged? 13

14 Last thoughts: Reciprocal causal links 14

15 Last thoughts: High EQ 15

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17 How To Grow Employee Engagement Using Leader Personality June

18 Why Does Engagement Vary So Much? Overall Company Engagement: 78% Top Quartile Bottom Quartile % Favourable in Engagement Looking at 502 Units across FMCG Org hierarchy (Work Level 2+) We know that leadership is critical Leaders About 15% of Engagement is related to this Engagement Performance Managers About 25% of Engagement is related to this 18

19 But it s not just leaders that matter 30% Individual Employee Factors 40% Leadership & Mgmt Behaviour/Style 30% Organisational Factors Look at what s driving Performance CLEAR STRATEGY CLEAR GOALS ACCOUNTABILITY Strategy TOOLS & RESOURCES INNOVATIVE TEAMS EXCELLENT PROCESSES Leadership Performance Employees STRONG VALUES POSITIVE MANAGEMENT BEHAVIOURS Managers ENGAGED COMMITTED ENTHUSIASTIC 19

20 Help Leaders Become Self-Aware 16% Turnover Very Under confident -1 Point Gap or More 12% Turnover Somewhat Under confident -.5 to -1 11% Turnover Self Aware -.5 to % Turnover Somewhat Overconfident +.5 to +1 20% Turnover Very Overconfident +1 Point Gap or More Sirota Case Study LOOK FOR PERSONAL INSIGHT Who You Are How You Behave How You Affect Your Team Leader Personality Decisions and Behaviors Climate and Culture Employee Engagement Performance 20

21 THE ASSESSMENT Self-assessment (validated for reputation) Bright and Dark side Personality Values and Motivations Ask the manager (via Hogan Personality Assessment) Upward Feedback (validated for performance) Manager Effectiveness Team Effectiveness and Engagement Ask the team (via Sirota team survey) Manager Effectiveness, Team Effectiveness, Engagement My Mgr gives me a clear picture of the company s direction My Mgr inspires me to do my best Our team has a clear sense of direction Our work is well organised My Mgr clearly communicates expectations My Mgr is accessible when I need him We make decisions without delay We regularly discuss how to improve things Performance My Mgr s actions are consistent with his words My Mgr helps me improve my performance Our team values different perspectives Our team shows flexibility when priorities change Feel: I m confident in my manager s ability to lead this team Think: I often think of better ways to do things Act: I would recommend my team as place to work 21

22 Leadership is the ability to build and maintain a high performing team, and is the c fundamental resource for the survival and the effet iv eness the team. Engagement is the tie that binds the leader to a high performing team. Great leaders engage followers, and harness their energy to perform to their highest ability. A team s engagement is the single greatest indicator of its potential success or failure. From making money to winning wars, the most engaged teams prosper. The strongest e influnce on an indi vi dual s engagement is his or her direct boss. As ea leader, you influnce your employees performance and your team s success. 1 meet the three basic needs. To have good relationships- A leader can foster teamwork, friendship, and collaboration through modeling c healthy conflit and good relationships, or they can divide and isolate employees through manipulation, micromanaging, or command and control leadership. To be successful- A leader can promote employee contributions and champion their successes, or they can blame them for failures and compete with d them. To fin me ani ng in wo r k and life - A leader s individual avalues will have a significnt imp act on hi s or her abi lity t o connect with others. Employee Engagement is the extent to which employees think, feel, and act in ways that represent high levels of commitment to their organization. Engaged employees are motivated to contribute 100% of their knowledge, skills, and abilities to help their organization succeed. They care deeply about their company, want to contribute to its success, and regularly have peak experiences at work. Engagement represents the motivational capital that exists within an individual, a unit, or an organization. It is a valuable resource that can boost company performance. Our research shows that engagement is linked to a number of important business outcomes. For example, we have found the following: Engaged r employees a offe significnt l y hi gher lev els of service to customers Engaged managers are more likely to create a work environment that is collaborative, creative, and stimulating Engaged work teams tend to have fewer accidents and injuries We have been studying employee attitudes since Based on a careful analysis of nearly four decades of survey data, we have found that employees seek three fundamental things from their work. Achievement: The vast majority of employees want to achieve something important and meaningful at work. They want to grow and develop their skills and capabilities and they want to be rewarded and recognized r for their effots. Camaraderie: We are social beings. Employees enjoy working productively with others while developing healthy interpersonal 2 relationships. How managers interact with their teams is especially important in motivating employees to go above and beyond. Equity: Employees want to be treated fairly when it comes s to pay and benefit, dayto day treatment, and psychological and physical safety. This represents our Three Factor Theory of Human Motivation in the Workplace. When these needs are met, employees are highly engaged even enthusiastic at work. For more information on this theory and the research behind it, please see our book, The Enthusiastic Employee (Sirota, Mischkind, & Meltzer, 2005, Wharton School Publishing). Based on our research and experience, we believe that there are cognitive, c affet i v e,and behavioral components to Employee Engagement. Intellectually engaged employees are constantly coming up with new and creative ideas and innovations. Emotionally engaged employees are passionate and enthusiastic about the work they do. And behaviorally engaged employees are willing to go above and beyond for their company, their customers, and their team members. Our comprehensive survey database includes over 15 unique engagement items. Using these items, we create a customized engagement index (typically consisting of about 5 items) that s fit the culture of an organization and is aligned with critical business success factors. For example, companies that rely on innovation to succeed will often include more intellectual engagement items. Organizations with a high number of customer-facing employees may want an index that includes more emotional and behavioral engagement items. By customizing our instruments, we can develop an engagement index that provides specificfeedback on an organization s critical success factors. Listed below are sample Engagement Index items. I ntellectual Engagement I am continuously thinking of new and better ways of doing things to help XYZ succeed Emotional Engagement I care about the future of XYZ Behavioral Engagement I am willing to go beyond what is normally expected to help XYZ be successful 3 First, the business case for employee engagement must be established for senior leadership. Engagement is not merely about making employees happier at work; it is about bringing out the best in people and tapping their full potential on a dayto day basis. Second, employee engagement levels must be monitored and measured on a regular basis, particularly in an ever changing business world. Our clients generally bconduct organization wide engagement surveys once a year, with smaller scale pulse surveys as needed. Finally, engagement requires action. Each year, employees and managers face new challenges. Attitudes shift. Frustrations can build. By understanding changes and addressing barriers to success, organizations can ensure their workforce is motivated to do their best work THE ENGAGING LEADER REPORT THE ENGAGING REPORT LEADER Making Leaders More Engaging Why Engagement Matters A leader s personality and values have tremendous impact on an individual s ability to EMPLOYEEENGAGEMENT: WHATIS IT? WHYIS EMPLOYEE ENGAGEMENT IMPORTANT? WHATFACTORS FOSTEREMPLOYEE ENGAGEMENT? HOWDOYOU MEASUREEMPLOYEE ENGAGEMENT? Emotionally engaged employees are passionate and enthusiastic about the work they do. WHAT S THEBESTWAYTO BUILDANDSUSTAIN EMPLOYEE ENGAGEMENTLEVELS IN AN ORGANIZATION? Engagement is not merely about making employees happier at work; it is about bringing out the best in people and tapping their full potential on a day today basis. What am I saying? Engagement Engagement matters experience shows that key intervention point is the manager-team dynamic Leadership Leadership matters but it s not the only influence on the team effectiveness. Team Performance Leaders need to understand who they are, how they behave and how this affects their teams in order to enable higher engagement and stronger performance 22

23 Over to you STAY IN TOUCH THEENGAGINGLEADER.COM SIROTA.COM 23

24 THE ENGAGING LEADER RESOURCES Frequently Asked Questions Start at the Team level 24

25 Start helping managers Snr leadership: recognizes the value of employee engagement. 90 Snr leaders: engagement to be a key business driver and performance indicator. Effective job making the business case for engagement. Effective at analyzing our employee engagement data. Effective at measuring employee engagement. Leaders work hard to create an environment of employee engagement Leaders understand the role they play in improving engagement and performance. 61 EE program has had positive impacts on business outcomes. 59 Good job of taking action on our employee engagement data. 52 Leaders know how to build a culture of employee engagement. 50 Even after all this time, only half feel they know how to act on the data %Favorable Research with The Engagement Institute Engagement matters Stock prices in high morale companies are consistently higher than matched peers Stock Prices Efficiency Engaged steel mill employees required 34% fewer labor hours to produce a ton of steel. National Weather Service meteorologists working on highly engaged teams were more accurate at predicting tornadoes. Team Performance Innovation Financial services employees who felt supported by their bosses were significantly more intellectually invested in their work. Turnover Customer Service Employees satisfaction ratings explained 22% of the difference in turnover. Sales Performance Customer focused retail stores demonstrated a 10% greater year over year sales increase. An increase in employee attitudes was linked to 28 million dollars in revenue due to increased customer satisfaction. 25

26 Recognise that Leader Personality Impacts Behavior Leader Personality Leader Behavior (360) Adjustment r=.269* Effective Strategist Calm leaders are better strategists Prudence r=.335* Customer Focused Prudent leaders are more customer focused Sensitivity r=.284* Inclusive Team Sensitive leaders build more inclusive teams Colorful r= -.242* Decisive Colorful leaders are less decisive Leader Values Tradition r=.325* Decisive Leaders who value tradition are more decisive Recognition Hedonistic r=.-279* r= -.302* Manages Self Effective Strategist Recognition-hungry leaders are less effective at managing themselves Hedonistic leaders are less effective strategists Sirota Case Study AND PERSONALITY & BEHAVIOR IMPACT TEAM ENGAGEMENT & TURNOVER Sirota Case Study 26

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