High Performing Workplace Index

Transcription

1 High Performing Workplace Index S A M P L E B E N C H M A R K R E P O R T Company XYZ Monday, September 21, 2015 C o n f i d e n t i a l

2 Table of Contents P A R T O N E... 1 High Performing Workplace Index L E A D E R S H I P E M P L O Y E E E X P E R I E N C E S I N N O V A T I O N C U S T O M E R O R I E N T A T I O N F A I R N E S S P R O D U C T I V I T Y P A R T T W O P A R T T H R E E Age Gender Education Type of Employment Management Level Tenure Income Background to the High Performing Workplace Index i

3 P A R T O N E The High Performing Workplace Index 1

4 High Performing Workplace Index E X E C U T I V E S U M M A R Y How to read your High Performing Workplace Index report: Congratulations! You are a High Performing Workplace. This is an outstanding result. Keep up the good work. You are a role model for others. The hexagon chart above shows your overall percentile on the HPW Index. The colours of the 6 individual hexagons indicate your performance in each area of the HPW Index: You are high performing Good work / Take notice Red needs attention The radar charts on the following pages show your benchmark results against peers in each area of the High Performing Workplace Index. Whilst overall you are high performing, these results indicate there are still opportunities for improvement in some areas. Your staff participation rate in the survey was 55%. 2

5 High Performing Workplace Index (HPWI) Introduction Company XYZ has adopted the High Performing Workplace Index as a tool to support leadership development and continuous improvement. The HPWI provides an assessment of workplace productivity and its drivers, and identifies organisational strengths and opportunities for improvement in key business areas such as innovation, leadership and customer focus. The HPWI is an academically validated and multi-disciplinary method developed in collaboration between Australian and international universities, public and private organisations, policy makers and industry associations over a 5 year period. The approach reflects international trends in the measurement of workplace leadership and management, such as the US Census Management and Organizational Practices Survey, and the quantification of wellbeing at work in contemporary positive psychology. The High Performing Workplace Index was implemented within Company XYZ in August 2015 to provide a snapshot of your organisation, and to benchmark your progress towards becoming high performing. It was open to all staff for a period of three weeks. Participation was voluntary and anonymous. This Benchmark Report provides an overview of your results in six domains of organisational performance: Leadership Customer Orientation Employee experiences & Well-being Fairness Innovation Productivity. The Report also highlights your performance across key management practices that align with high performance. The High Performing Workplace Index has proven to have significant power in predicting financial performance. High Performing Workplaces are up to 3 times more profitable than their peers. In dollar terms, this difference equates to High Performing Workplaces earning on average $40,051 more in earnings before interest and tax per full time equivalent employee per annum (industry adjusted). This Benchmark Report can be used to facilitate discussion about business improvement with your industry business advisors and mentors. It may also be used with Australian Federal and State Government grants and programs that support enterprises to achieve higher productivity, growth and workplace performance. Please visit for a list of useful contacts. 3

6 1. L E A D E R S H I P Meaningfulness Participation in decision making Confidence Autonomy People Management Vision Trust Tension & Conflict Overall Competency Leadership Leadership is a process whereby one person exerts influence over another in an attempt to guide and influence activities and relationships towards shared organisational goals and objectives. High performing leaders make work meaningful by helping staff understand how their work fits into the bigger picture. They involve staff in decision processes, have confidence in staff, provide autonomy to staff over how to do their job and prioritise people management. With high quality leadership, there is a shared vision and shared goal amongst staff, team members trust their leader and tension and conflict between the leader and staff is low. Your Results Meaningfulness Congratulations. Employees feel leaders help them understand how their jobs fit into the bigger picture and how their work objectives and goals relate to those of the organisation. Staff have a strong sense of doing work that is worthwhile. Keep up the good work! Participation in decision making Congratulations. Leaders are viewed as providing opportunities for employees to have a say in decision making processes. Employees feel their views are genuinely listened to. Keep up the good work! Confidence Well Done. Overall, you score above average. However, some leaders are viewed as not having sufficient confidence in all their staff to do a good job. Speak with leaders and supervisors about what they can do to improve. Autonomy Congratulations. Employees consider they have freedom and choices over how to do their work and that their leaders provide them with ample autonomy. Keep up the good work! People Management Well Done. Overall, you score above average. However, some employees consider leaders could spend more time and effort managing staff and teams. People management is not always 4

7 considered to be a top priority. Speak with leaders and supervisors about the importance of good people management skills. Vision Take notice. A number of employees consider leaders to be unclear about where the organisation is going. Leaders do not always inspire employees with their plans about the future. Keep an eye on this area going forward. Trust Well Done. Employees trust their leaders. However, not all staff feel they can rely upon their leaders. Not all staff would be willing to let leaders have complete control over their future in the organisation. Speak with leaders and supervisors about techniques for building trust with their staff. Tension & Conflict Congratulations. Employees experience low levels of tension and conflict with their leaders. Keep up the good work! Overall Competency Well Done. Overall, employees feel their leaders are competent in their role as leaders but there are still opportunities to improve the quality of leadership. Keep an eye on this area going forward. Investigate what can be done to keep improving leadership skills. 5

8 1. L E A D E R S H I P B E N C H M A R K R E S U L T S How to read your benchmark scores You Average High Performing Workplaces 6

9 2. E M P L O Y E E E X P E R I E N C E S Job Satisfaction Commitment Turnover intention Emotions Well-being Employee Experiences Employee experiences concern the overall job satisfaction of staff, their commitment to the organisation and their turnover intention. For high performing workplaces, it also involves staff s positive and negative emotions and their general well-being. Staff satisfaction is important to the overall performance of the organisation. Organisations with high staff satisfaction outperform those with low levels both on financial performance and customer satisfaction. Committed employees exert greater effort and consistently go beyond their formal job description to satisfy customers and solve problems. Pride in the organisation and advocating the organisation to friends is more pronounced in organisations with a highly committed workforce. Employees turnover intentions are much smaller in high performing workplaces than in lower performing workplaces. This has financial consequences for the organisation, not only due to the cost associated with hiring new staff but also due to the loss of productivity (due to loss of knowledge and expertise) that occur when an employee leaves the organisation. Emotional capital is critical to an organisation s overall performance. Research shows that positive emotions (such as feeling cheerful, loved and optimistic) are much more prevalent amongst employees in high performing workplaces, whilst negative emotions (such as feeling anxious, inadequate, worried, depressed and fearful) are more prevalent amongst employees in low performing workplaces. One in every four respondent (25%) in LPWs reports feeling depressed, whereas in HPWs it is one in every seven respondents (14%). Well-being was coined by Professor Martin Seligman, one of the founders of the field of positive psychology. He defined 5 pillars of wellbeing. The PERMA Profiler measures these five pillars: Positive emotions include feelings of joy and contentment at work. Engagement refers to being absorbed, interested, and involved in work activities. Relationships refer to feeling supported and valued by others at work. Meaning refers to having a sense of purpose at work. Accomplishment involves working toward goals, and feeling able to complete daily work responsibilities. Additional areas have been added to PERMA: 7

10 Physical health is about a person s health and vitality. Negative emotions involve feeling angry, sad or anxious at work. Loneliness is how lonely a person feels at work. Resilience In the PERMA radar chart below, you find your score on the PERMA Profiler. Your scores on positive and negative emotions are the same as reported separately in a more detailed form in the radar on emotional capital. Your Results Job Satisfaction Well Done. Overall, staff satisfaction is above average. However, not all employees are satisfied in their jobs. Investigate what is causing some staff to be dissatisfied. This is critical to the overall performance of your workplace. Commitment Congratulations. Employees are very committed to their workplace. They feel a strong sense of belonging to their workplace. Keep up the good work! You are a role model for others. Turnover intention Congratulations. Employees wish to stay in their job and do not plan on leaving their job anytime soon. Keep up the good work! Emotions Well Done. There is a mix of positive and negative emotions amongst staff. Many employees feel excited, valued, happy, enthusiastic and proud of their work. Keep up the good work. However, some staff feel anxious, angry, depressed or worried about their work. Investigate what is causing negative emotions amongst some staff and what can be done to reduce these. Well-being Well Done. Overall, staff wellbeing is above average. However, not all employees experience wellbeing in their job. Some staff do not feel their work is meaningful and some staff miss a sense of accomplishment and strong relationships at work. Investigate what might be causing some employees to experience lower levels of well-being. 8

11 2. 1. J O B S A T I S F A C T I O N B E N C H M A R K R E S U L T S How to read your benchmark scores You Average High Performing Workplaces 9

12 2. 2. E M P L O Y E E C O M M I T M E N T, T U R N O V E R I N T E N T I O N A N D N E T P R O M O T E R S C O R E B E N C H M A R K R E S U L T S How to read your benchmark scores You Average High Performing Workplaces 10

13 2. 3. E M O T I O N A L A S S E T S (H O W S T A F F F E E L A B O U T T H E I R W O R K) B E N C H M A R K R E S U L T S How to read your benchmark scores You Average High Performing Workplaces 11

14 2. 4. E M O T I O N A L L I A B I L I T I E S (H O W S T A F F F E E L A B O U T T H E I R W O R K) B E N C H M A R K R E S U L T S How to read your benchmark scores You Average High Performing Workplaces 12

15 2. 5. E M P L O Y E E W E L L B E I N G B E N C H M A R K R E S U L T S How to read your benchmark scores You Average High Performing Workplaces Negative characteristics, such as Negative Emotions and Loneliness, are reverse scored so that larger numbers mean better performance. 13

16 3. I N N O V A T I O N Employee Creativity Team Creativity Innovation Support Innovation Outcome Innovation In high performing workplaces, innovation is taken seriously. Innovation processes are organised from idea generation all the way through to prototyping and trialling new products and taking these to the public. Creativity concerns the production of new ideas, whether individually by employees or by teams. Ideas are the first step in the innovation process. Ideas need support to be converted into meaningful outputs that are of value to the organisation. Innovation support involves: 1) capturing ideas from employees (e.g. through mechanisms, such as town hall meetings and innovation zones); 2) implementing formal processes to systematically assess and respond to ideas from employees; and investing resources into new strategic initiatives. Innovation outcome is the end result of the innovation process. It measures new products and services, new organisational processes, new marketing methods and new structural innovations Your Results Employee Creativity Take notice. Overall, employee creativity is below average. Employees come up with some new ideas for how to improve their work but could do better. There is a risk that not all staff are engaged in creative thinking or are good at coming up with solutions to emerging problems. Investigate what can be done to boost creativity amongst staff. This is critical to staff motivation and performance. Team Creativity Well Done. Overall, team creativity is above average. Teams come up with a number of new ideas for how to improve their work but some feel they could do better. Keep an eye on this area going forward. Investigate what can be done to boost creativity amongst all teams of staff. Innovation Support Alert. Support for innovation is low. There are few or no resources available to fund new strategic initiatives. There are few or no mechanisms in place for capturing ideas from employees (e.g. Town Hall Meetings, Innovation Zones, online forums). There are few or no formal processes in place for systematically assessing and responding to innovation ideas from employees and for transforming new ideas into 14

17 new services. Take action. Investigate what needs be done to provide more support to staff for innovation. Innovation Outcome Take notice. Overall, innovation outcomes are below average. In the past 12 months, some new innovations have been introduced but there is still room for improvement. Investigate what might be blocking innovation outcomes from coming to fruition. 15

18 3. 1. C R E A T I V I T Y, I N N O V A T I O N S U P P O R T & I N N O V A T I O N O U T P U T B E N C H M A R K R E S U L T S How to read your benchmark scores You Average High Performing Workplaces 16

19 4. C U S T O M E R O R I E N T A T I O N Customer Orientation Meeting Customer Goals Customer Orientation Customer orientation involves taking the customer seriously. It concerns efforts made by the organisation to shape its offerings and activities around the customers needs and interests. High performing workplaces invest significant time and resources in understanding the needs of customers. They are receptive to customer feedback and staff engage in dialogue with customers and actively listen to and learn from customers Meeting customer goals measures whether the organisation has met its customer satisfaction goals in the past 12 months Your Results Customer Orientation Congratulations. Employees are taking the customer seriously. They invest significant time and resources in understanding the needs of customers. Employees are receptive to customer feedback and engage in dialogue with customers and actively listen to and learn from customers. Keep up the good work! You are a role model for others. Meeting Customer Goals Congratulations. Customer satisfaction goals have been met in the past 12 months. Keep up the good work! You are a role model for others.. 17

20 4. C U S T O M E R O R I E N T A T I O N & S A T I S F A C T I O N G O A L S B E N C H M A R K R E S U L T S How to read your benchmark scores You Average High Performing Workplaces 18

21 5. F A I R N E S S Distributive fairness Procedural fairness Fairness Fairness is related to employee perceptions of distributive and procedural justice in the organisation. A lack of fairness in the workplace can cause staff turnover and conflict and reduce employee s motivations to do a good job. Distributive fairness concerns the implementation of reward systems to ensure employees are fairly recognised and rewarded for their efforts, responsibilities and contributions. Procedural fairness is whether supervisors implement organisational procedures and policies in a manner that is fair and equitable to all employees. Research has found that employees in lower performing workplaces are less fairly rewarded for their work efforts and contributions than employees in high performing workplaces (42.3% lower), and that supervisors in lower performing workplaces are less likely to implement policies in a manner that is fair and equal to all employees (16.6% lower than HPWs). In other words, high performing workplaces are those who take steps to implement distributive and procedural fairness for all employees. Your Results Distributive fairness Congratulations. Employees feel they are fairly recognised and rewarded for their efforts, responsibilities and contributions. Keep up the good work! Procedural fairness Congratulations. Employees perceive their supervisors as implementing organisational procedures and policies in a manner that is fair and equitable to all employees. Supervisors treat all staff equally. Keep up the good work! You are a role model for others.. 19

22 5. D I S T R I B U T I V E & P R O C E D U R A L F A I R N E S S B E N C H M A R K R E S U L T S How to read your benchmark scores You Average High Performing Workplaces 20

23 6. P R O D U C T I V I T Y Employee Productivity Team Productivity Meeting Stated Goals Productivity Employee Productivity measures how productive employees are. It asks Compared to what is possible (100%), estimate how productive you are at your job. 100% means employees perform to their fullest potential. Team Productivity measures how productive teams are. It asks Compared to what is possible (100%), estimate how productive your team is. 100% means teams perform to their fullest potential. Meeting goals measures whether the organisation has met its goals in key performance areas in the past 12 months. This includes innovation, financial and human resources goals. It also includes goals for meeting delivery schedules on time. Your Results Employee Productivity Take notice. Compared to what is possible (100%), employees perform below their full potential. There is likely to be a gap in productivity performance. Staff could do better. Investigate what is blocking staff from realising their full potential. Team Productivity Well Done. Compared to what is possible (100%), most teams perform close to their full potential. Meeting Stated Goals Well Done. Stated goals have largely been met in the past 12 months. 21

24 6. P R O D U C T I V I T Y B E N C H M A R K R E S U L T S How to read your benchmark scores You Average High Performing Workplaces 22

25 P A R T T W O Top 10 Management Practices 23

26 Top 10 Management Practices Management practices are systems, processes and programs that the organisation puts into place to achieve its performance goals. As an example, a talent management program will encourage staff to exert extra effort and become more committed, which in turn reduces employee turnover and costs. The bar chart on the following page shows your performance on the Top 10 Management Practices. These 10 practices have the highest correlation with the High Performing Workplace Index. Responsiveness to Change These questions measure how difficult it is for the organisation to change its plans and activities to adjust to shifts in the external market, such as a change in customer needs, economic conditions or the competitive landscape. The more responsive the organisation is to shifts in the external market, the better its performance is likely to be. The antithesis is a lack of responsiveness, which results in the organisations being out of sync with the market and its stakeholder needs. Skills Utilisation Skills utilisation concerns the extent to which employees are allowed or enabled to fully utilise their skills and abilities at work. Skills utilisation consistently proves to be of high importance to employees, more so than other issues such as good pay. Maximising the utilisation of employee skills is important to employee commitment, job satisfaction and productivity. Organisations maximise skill utilisation by asking employees to engage in problem solving and in the design of creative solutions to emerging problems. Participation in Strategy, Planning and Setting Targets Participation in decision making is important to high performing workplaces because it ensures knowledge is shared and power is distributed amongst employees. Low levels of participation in decision making have been proven to slow down workplace efficiency and responsiveness. It can also reduce employees motivation and commitment to the organisation. In contrast, higher levels of participation can improve the speed of decision processes. It also gives employees a greater sense of authority, fairness and voice and can lift staff commitment and motivation. Effectiveness of Training in Helping Employees do a Better Job These questions ask if the training provided by the organisation helps employees do their job better. These questions explore the premise that organisations with employees with enhanced skills (as a result of training) are more productive and perform better. For training to be effective, it has to assist the employee do his/her job better Use of Accounting Controls (e.g. Strategic Plans, Budgets, KPIs). Accounting controls are put into place to achieve organisational objectives. They include budgets, targets, plans, scorecards etc. Controls are used to track progress towards 24

27 goals and to identify emerging opportunities. High performing workplaces use accounting controls diagnostically to increase productivity and interactively to innovate. Use of Information, Communication and Technology to be Productive ICT is a key resource in high performing workplaces. ICT reduces the service delivery costs, supports an organisation s operational processes and improves productivity and profitability. ICT is likely to be a key resource for employees to carry out their daily tasks. The use of ICT in HPWs has little to do with the types of technology used (e.g. intranets, blogs, social networking sites). This suggests that what counts is how the technology is used rather than simply having more (and different kinds) of it. Flexible Work Arrangements Flexible work arrangements include flexibility in the hours of work (such as changes to start and finish time) and location of work (such as working from home). Flexibility is beneficial to working parents with responsibility for the care for a child who is school aged or younger. Flexibility can increase job satisfaction and commitment. Job Autonomy Job autonomy concerns the degree of autonomy employees have in carrying out their work. In a high performing workplace, employees have significant autonomy in determining how they do their jobs and opportunity for independence and freedom. Autonomy has been shown to foster creativity and innovation and improved staff morale as employees feel trusted to do a good job and exert extra effort to this end. Unpaid Overtime Hours This measures the number of hours that employees work overtime but is not paid for that additional work. Critics point to work intensification and a lack of proportionate reward for additional effort reduce organisational outcomes like productivity and innovation. This is true for high performing workplaces, where unpaid overtime is negatively correlated with performance outcomes on the High Performing Workplaces Index. In other words, it does not pay off to not pay workers fairly. Tension and Conflict with Colleagues These questions measure the degree of conflict and tension faced by the employees in their workplace. Researchers have indicated that tension and conflict is inevitable at work. There can be various sources of tension and conflict. These questions gauge the extent to which the employee faces tension and conflict with colleagues. Interpersonal conflict in the workplace has been shown to be one of the most frequently reported job stressor. Disagreement brings about stress, poor staff morale and negative emotions. In high performing workplaces, tension and conflict is negatively correlated with performance outcomes on the High Performing Workplaces Index. 25

28 T O P 1 0 M A N A G E M E N T P R A C T I C E S How to read your benchmark scores You Average High Performing Workplaces 26

29 P A R T T H R E E Demographic Survey Information 27

30 Demographic Survey Information Age This represents a breakdown of the age brackets of the survey respondents. For your workplace: Across all workplaces surveyed: 28

31 Gender This represents a breakdown of the gender of the survey respondents. For your workplace: Across all workplaces surveyed: 29

32 Education This represents a breakdown of the educational qualifications of the survey respondents. For your workplace: Across all workplaces surveyed: 30

33 Type of Employment This represents a breakdown of the full-time/part-time/casual staff of the survey respondents. For your workplace: Across all workplaces surveyed: 31

34 Management Level This represents a breakdown of the management levels of the survey respondents. For your workplace: Across all workplaces surveyed: 32

35 Tenure This represents a breakdown of the tenure of the survey respondents. For your workplace: Across all workplaces surveyed: 33

36 Income This represents a breakdown of the income of the survey respondents. For your workplace Across all workplaces surveyed: 34

37 Background to the High Performing Workplace Index In 2010, the Australian Commonwealth Government funded a 3 year project on High Performing Workplaces. In line with international trends, the project sought to identify ways of increasing productivity in Australia by focusing on the characteristics and behaviours of High Performing Workplaces. Labour Productivity Growth in some Australian industry sectors, such as Property and Business Services, had been poor for three decades: at -1.6 ( ), -2.0 ( ) and 0.9 ( ). The High Performing Workplace Index measures an organisation s performance in 6 categories, featuring 25 performance measures. The 6 categories are: Leadership (L) Employee Experiences (E) Innovation (I) Customer Experiences (C) Fairness (F) Productivity & Financial Performance (P) The High Performing Workplace Index is an academically validated and multi-disciplinary research method developed in collaboration between Australian universities, public and private organisations, policy makers and industry associations over a 5 year period. The methodology is unique in that it captures employee voices across 4 levels of staff: senior executives, middle managers, front line managers and non-managerial employees. This is a benefit when compared to surveys such as Management Matters, which only captures one executive response from participating organisations. Where possible, the HPW methodology collects firm level financial data allowing an objective calculation of firm level Total Factor Productivity. 1 Today, the High Performing Workplaces database consists of 1,170,481 employee and 59,475 firm level question responses, totalling approximately 80,000 pair wise relations. The High Performing Workplace Index has proven to have significant power in predicting financial performance. High Performing Workplaces are up to 3 times more profitable than their peers. In 1 Total Factor Productivity is the proportion of output not explained by the use of tangible capital and labour. 35

38 dollar terms, this difference equates to High Performing Workplaces earning on average $40,051 more in earnings before interest and tax per full time equivalent per annum (industry adjusted). The High Performing Workplace Index classifies workplaces as High Performing Workplaces, Mid Performing Workplaces and Low Performing Workplaces. Organisations that are more than one standard deviation above the mean are considered to be higher performing. Organisations that are more than one standard deviation below the mean are considered to be lower performing. The High Performing Workplace Index is calculated by averaging the scores for the 6 categories to an overall score for each workplace. The six categories are weighted equally. The resulting Index is converted to a z-score (a mean of zero and a standard deviation of 1). 36