Compensation & Motivation. October 6, 2014

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1

2 Compensation & Motivation October 6, 2014

3 Don MacPherson President & Co-Founder Website: Blog:

4 Mission Accelerating people to the extraordinary.

5 Solutions

6

7 Q U A L I T Y

8 S E R V I C E

9 F A I R V A L U E

10 Our Model

11 Our Model

12 fill fill

13 fill fill

14 fill fill

15 Employee Engagement Engagement is the degree to which employees are psychologically invested in the organization and motivated to contribute to its success. Engagement results in discretionary effort toward attaining organizational goals.

16 HOW WE MEASURE Intent to stay Inspired to give extra effort Willingness to refer Pride in the organization Sense of future

17 Spring 2014 Engagement 70% 60% 50% 40% 35% [ 1] 30% 24% [ 3] 27% [ 1] 20% 10% 13% [0] 0% Disengaged Under Engaged Moderately Engaged Fully Engaged

18 ENGAGEMENT LEVELS Gen Y Gen X Disengaged Under Engaged Moderately Engaged Fully Engaged 0 Disengaged Under Engaged Moderately Engaged Fully Engaged Boomers Disengaged Under Engaged Moderately Engaged Fully Engaged

19 ENGAGEMENT LEVELS Percent Fully Engaged All Responses Financial Services Accommodation & Food Services Heavy Manufacturing Healthcare Government / Public Adminstration Communications Light Manufacturing Business Services Retail Trade Education Transportation

20 DISENGAGEMENT LEVELS Percent Disengaged All Responses Communications Accommodation & Food Services Light Manufacturing Retail Trade Government/Public Adminstration Business Services Transportation Healthcare Education Heavy Manufacturing Financial Services

21 Trust Senior Management Direct Manager 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 94% 96% 87% 80% 57% 36% 34% 9% Disengaged Under Engaged Moderately Engaged Fully Engaged

22 VALUES GUIDE BEHAVIORS

23 COMPENSATION Satisfaction with compensation has risen to 57% favorable from 51% in Fall Communications is at 66% favorable, while Education is at 39% favorable.

24 My total compensation package is competitive in our industry. % Favorable Fall 2010 Spring 2011 Fall 2011 Spring 2012 Fall 2012 Spring 2013 Fall 2013 Spring 2014

25 My total compensation package is competitive in our industry. 26 % Unfavorable Fall 2010 Spring 2011 Fall 2011 Spring 2012 Fall 2012 Spring 2013 Fall 2013 Spring 2014

26 My total compensation package is competitive in our industry. Percent Favorable All Employees 57 Males 60 Females 54 Gen X 58 Boomers 57 Gen Y

27 My total compensation package is competitive in our industry. Percent Favorable All Responses Communication Services Financial Services Heavy Manufacturing Light Manufacturing Business Services Transportation Government / Public Adminstration Healthcare Retail Trade Accommodation & Food Services Education

28 I am paid fairly for the work I do. % Favorable Fall 2010 Spring 2011 Fall 2011 Spring 2012 Fall 2012 Spring 2013 Fall 2013 Spring 2014

29 I am paid fairly for the work I do. 32 % Unfavorable Fall 2010 Spring 2011 Fall 2011 Spring 2012 Fall 2012 Spring 2013 Fall 2013 Spring 2014

30 I am paid fairly for the work I do. Percent Favorable All Employees 53 Males 58 Females 49 Gen X 56 Gen Y 53 Boomers

31 I am paid fairly for the work I do. Percent Favorable All Responses Communication Services Financial Services Heavy Manufacturing Business Services Transportation Government / Public Adminstration Healthcare Light Manufacturing Accommodation & Food Services Retail Trade Education

32 ENGAGEMENT DRIVERS 1. Organization Headed in Right Direction 2. Can Grow and Develop 3. Personal Accomplishment from Work Engagement 4. Values Guide Behavior 5. Organization Treats Employees Well 6. Confidence in Future of Organization

33 PERSONAL ACCOMPLISHMENT 74% of U.S. workers have a sense of personal accomplishment from their work. The education industry is at 82%, while communications is at 61%.

34 CAREER DEVELOPMENT Career development is the second strongest driver of engagement. 50% of the U.S. Workforce feel they can grow and develop at their company/organization. That is up from 43% just two years ago.

35 COMPANY CONFIDENCE 64% of the U.S. Workforce has confidence in the future of their company or organization. That is up from 55% in Fall 2011.

36 RECOGNITION 57% of U.S. workers feel they are recognized when they do excellent work. 60% feel their organizations treat employees well. Recognition builds trust, it s free, and employees don t get tired of receiving it.

37 ENGAGEMENT KNOWLEDGE Of all U.S. Employees, Among people who manage employees it is know what the concept of employee engagement is.

38 ENGAGEMENT OWNERSHIP 70% 60% 50% 40% 30% 39% 32% 20% 10% 12% 17% 0% Senior Leaders Managers Employees All Three Equally

39 The Employee s Responsibility You cannot create a culture of engagement until employees know what engagement is and that they have a responsibility for their engagement.

40 Build Awareness

41 Build Awareness

42 Build Awareness

43 Build Awareness

44 modernsurvey.com

45 WOMEN ARE MORE ENGAGED Men Women 70% 60% 50% 40% 30% 29% 27% 26% 23% 20% 10% 10% 13% 15% 12% 0% Since Disengaged Since Fully Engaged Spring Disengaged Spring Fully Engaged

46 YET LESS SATISFIED On 16 of 40 items, women are significantly less satisfied than men Men are significantly less satisfied than women on 0 of 40! Recognized for excellent work Grow and develop Career advancement opportunities Fair pay Total comp Treated fair by direct manager Confidence in senior management Management communicates effectively Kept well informed Strong quality emphasis I know how I contribute to company Employees participate in decisions New employees get training I have the needed tools/resources We have enough people We work together as a team

47 WHAT S NEXT? Whitepapers Published Blog Posts The Conversation Continues Use Modern Survey as a Resource

48 Don MacPherson President & Co-Founder Website: Blog:

49 Can every employee reach their performance potential?

50

51 Don MacPherson President & Co-Founder Website: Blog:

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