Business Driven Diversity. PARE Human Resources Management Conference 2014 By Annette Schandorph Manager at ISS Denmark Job Developing Center

Transcription

1 Business Driven Diversity PARE Human Resources Management Conference 2014 By Annette Schandorph Manager at ISS Denmark Job Developing Center

2 Denmark Diversity measured on the bottom line 2

3 Country Manager Statement This presentation is under continuous development and will be updated regularly with new tools and pictures for optimising slide presentations. Diversity pays. The latest version of this presentation can be found online on at the ISS Way Portal (look under Group, Marketing Guidelines and tools ) I have been completely convinced of this since the first day I started in ISS and now it has been proved. Measurements done by the Consultancy Bureau PwC demonstrates that Questions as well as requests for new pictures can be directed to: diverse teams earns 3,7 percent more to the firm than non-diverse teams. For ISS Denmark this means that there is a big potential of increased earnings. ISS A/S - Group Marketing Bredgade 30 DK-1260 Copenhagen K DENMARK The Research is ground-breaking because no one in Denmark, and apparently neither in foreign countries, has done actual measurements on whether diversity pays off on the Bottom Line or not. group.marketing@group.issworld.com Phone: Maarten van Engeland, Country Manager ISS Netherlands, Previous Country Manager ISS Denmark 3

4 What is our approach? We measure on the following three parameters: employees, customers and finances Definition of diversity: - Max. 70 % of the same gender - Max. 70 % of the same nationality - Max. 70 % of the same generation Teams with at least five employees employees included in the research - a total of 469 teams Number of teams Non-diverse teams diverse teams Total Catering Cleaning West Cleaning East FM Industry Total

5 What do we measure? Employees Customers/Partners Finances Employee turnover Absence due to illness ISS training Employee satisfaction Management Customer satisfaction Branding / Media Growth Profitability 5

6 Diverse teams have 3,7 % greater earnings This corresponds to a potential 13.7 million Euro increase in profit per year. The profit is not caused by factors such as differences in core activities, geography, team size or seniority. It is primarily the diversity which creates the profit and not the profit which creates the diversity. Earnings Non-diverse teams Diverse teams Catering 5,0 % 6,2 % Cleaning West 14,8 % 17,0 % Cleaning East 17,2 % 21,6 % FM 17,3 % 19,2 % Industry 15,9 % 20,3 % Total 14,8 % 18,5 % 3,7 % 6

7 The Explanation of the Excess Profit Good management Less Absence of Illness The Potential in Diversity Greater Earnings Introduction Higher Employee Satisfaction 7

8 Management and introduction as the primary causes Earnings Non-diverse Diverse Total <4 in Management satisfaction 15,1 % 17,6 % 15,7 % >4 in Management satisfaction 17,4 % 22,3 % 18,8 % Total 15,8 % 19,2 % 16,7 % Note: Based on 2/3 of all teams, as not all teams have responded to the Employee Satisfaction Survey. Earnings Non-diverse Diverse Total <25 % on introductory course 14,2 % 16,8 % 14,8 % >25 % on introductory course 16,5 % 21,7 % 18,0 % Total 14,8 % 18,5 % 15,7 % 8

9 Diverse teams have less absence of illness Cleaning ISS 2% 3% 4% 5% Absence of illness in diverse teams is 0,7 percent less than in nondiverse teams. For ISS this corresponds to 1,5 percent greater earnings. Diverse Non-Diverse Absence of illness Non-diverse Diverse Total < 4 in Management satisfaction 4,2 % 4,4 % 4,2 % > 4 in Management satisfaction 4,5 % 2,6 % 3,9 % Total 4,3 % 3,8 % 4,1 % Note: Based on 2/3 of all teams, as not all teams have replied on the Employee Satisfaction Survey. 9

10 Income Higher satisfaction equals greater earnings Non-Diverse 0,13 points higher satisfaction in diverse teams. 0,13 points higher satisfaction can explain approximately 1 percent greater earnings. Diverse 3,8 3,85 3,9 3,95 4 4,05 4,1 The effect is in addition to the lower absence of illness. 100% 50% 0% -50% -100% Employee satisfaction 10

11 Summary 1. There is a clear connection between diversity and earnings in ISS. Other 1,2% Higher Employee satisfaction 1,0% Less Absence of Illness 1,5% 2. Especially when good management and thorough introduction is present. 3. The connection is not substantially caused by other factors. 4. It is primarily the diversity which increases the profit and not the profit which increases the diversity. 11

12 ISS Job Developing Center in Denmark Managing diversity in practice 12

13 Implementation of the diversity survey What How Why Recruitment Vacancy ads Instruction of all managers on how to recruit in a diverse manner Introduction E-learning for frontline employees Customer-specific Support functions and managers Management In all management training programs Training of all managers in the results of the survey Targets in the annual appraisal (MUS) Increase focus on diverse teams Questions in the employee engagement survey (EES) about diversity Action plans which are made based on the responses in the employee engagement survey (EES) Recruiting influenced by the existing team composition Increased number of employees on introduction Increase employee satisfaction Clear and measurable targets to increase survey scores on employee engagement survey (EES) Team composition Change existing team compositions Increase numbers of diverse teams from 25 % to 50 % 13

14 The Danish Active Labour Market Program Initiatives found in the Law of Active Employment motivates private companies to engage in diversity: Support and funding options: Unpaid job training Wage supplements Personal aids for disabled Mentor fee Commercial partnerships public/private 14

15 Organisation of The ISS Job Development Center ISS unique tools: Place in the labour market Competent staff Job mentor programs Workshops Commercial Partnerships Public/Private Collaboration with public Job Centres (Law of Active Employment initiatives) regarding 2353 unemployed people annually Course provider Framework Contract Public procurement ISS strenghts in CSR: Social responsibility The inclusiveness in the labor market Business Forum for Social Responsibility Advisor to Minister of Employment Fund supported projects 15

16 Number of participants in ISS programs and the effects ISS Denmark 2013 Measurement of success Number of participants % Effects Job/education % Effect Clarified work ability % Effect Success in total Prepared for employment ,64 5,98 34,62 Mixed undefined groups ,12 16,97 57,09 Public framework contract ,67 18,85 46,52 Vulnerable or disabled ,42 34,29 62,71 Linguistic projects for immigrants 76 23,93 44,87 68,80 Total/average ,76 24,19 53,95 16

17 Profits Economic and human benefits Key Point Indicators Value Target 2013 Achieved YTD YTD Unpaid job training in ISS hours Recruitments to ISS EUR Wage supplements to ISS EUR Allocation of unpaid training in ISS DK: Cleaning 43% Catering 29% Property 21% Support Funktions 7% Value indicators: 1) Unpaid Job training: 590 people x 8,5 weeks x 9,25 ours per pr. Week = ours 2) Recruitments 151 x *1.342,49 EUR. *Estimated value for one recruiment 3) Wage supplements: 65 x 6 MD x 1.342,49 EUR 17

18 Profits Economic and human benefits Pride Human skills Branding Sharing of knowledge to other companies Diverse Teams Respect Awards 18

19 Questions????? 19