Driving Employee Engagement PROVEN STRATEGIES FOR BUILDING A CULTURE OF ENGAGEMENT

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1 Driving Employee Engagement PROVEN STRATEGIES FOR BUILDING A CULTURE OF ENGAGEMENT

2 A bit about me Over 25 years of experience Different types of organizations Public/private Nonprofit/corporate Variety of industries Confectionary Bioservices Consumer Distribution Some current clients Thermo Fisher Scientific Harvard Business Publishing Zaxby s Chicken Association for Talent Development

3 Employee Engagement How do youdefine it?

4 Our definition Definition: Employee engagement is the emotional commitment the employee has to the organization and its goals. This emotional commitment means engaged employees actually care about their work and their company. They don t work just for a paycheck, or just for the next promotion, but work on behalf of the organization s goals. When employees care when they areengaged they use discretionary effort. (Kruse, 2016)e

5 Satisfaction Identification Dimensions of employee engagement Commitment Loyalty Source: MIT Sloan Management Review Article Measuring the benefits of Employee Engagement by V Kumar and Anita Pansari Summer 2015 Performance

6 Employee Engagement Engaged employees outperform average employees by 20 percent (2004 study conducted by the Corporate Executive Board) Only 32% of employees are actively engaged in their jobs, while 51% are not-engaged, and 17% are actively disengaged (Gallop 2015) Turnover reduction Companies with engaged employees lower employee turnover by 31 % (Bersin 2015) Business Results COMPANIES WITH HIGHLY ENGAGED WORKFORCES OUTPERFORM THEIR PEERS BY147% IN EARNINGS PER SHARE (Gallup 2017) Why have the conversations?

7 Business impact Best Buy indicates that stores that improve employee engagement scores by 1/10 of a point (on a five point scale) will see a $100,000 increase in sales volume (David Ulrich & Wendy Ulrich) A study bytowers Perrin in 2008showed that organizations with engaged employees experienced a 19 percent increase in operating income over a 12-month period, compared to a 33 percent decrease in companies with disengaged employees. Highly engaged employees are 87% less likely to leave your company. (Gallup) Companies with higher engagement have 233% higher levels of customer loyalty (Aberdeen) Companies with engaged employees outperform their peers by 147% in EPS (Gallup 2017)

8 Manager Impact Managers account for at least 70% of variance in employee engagement scores (Gallup) 80% of those dissatisfied with their managers are also disengaged from their employers (Dale Carnegie)

9 Management behavior that drives engagement If your Manager primarily Ignores you Focuses only on your weaknesses Focuses on your strengths Your chances of being actively disengaged are Source: Gallup Management Journal Gmi.gallup.com

10 Can we drive both engagement and results? HBR study by Jack Zenger and Joseph Folkman June 2017 Analyzed 360 Feedback for 60,000 leaders Found leaders in the top quartile for both skills ranked in the 91 st percentile of all leaders The BEST (13% ) do both! Identified SIX Powerful Skills that drove engagement AND results By Jack Zenger and Joseph Folkman June 2017

11 Six Powerful Behaviors Communicates clear strategy and direction Inspires and motivates Establishes stretch goals Has high integrity and inspires trust Develops others Is coachable Source: HBR Article How Managers Drive Results and Employee Engagement at the Same Time By Jack Zenger and Joseph Folkman June 2017

12 Seven s that drive engagement and results Context Goal Setting Relationship Building s Feedback Performance Management Development Confrontation

13 Seven s Context Goal Setting Relationship Building s Feedback Performance Management Development Confrontation

14 Context Establishing

15 The Context Establishing The Context Establishing The Importance of Connecting Employees to the Organization An analysis of over 300 potential drivers of engagement found that when employees understand the connection between their work and organizational strategy, they are more likely to go beyond the minimum requirements of their job. A sense of connection with the organization can drive employee effort by as much as 32.8%. A mere 7% of employees today fully understand their company s business strategies and what s expected of them in order to help achieve company goals. from Robert S. Kaplan and David P. Norton, The Strategy- Focused Organization, Harvard Business School Press, 2001

16 Seven s Context Goal Setting Relationship Building s Feedback Performance Management Development Confrontation

17 Goal Setting Prioritizes employee activities Aligns goals with organizational strategy Facilitates shared ownership Details development plans into actionable tasks Makes work measurable and observable Enables employees to achieve more Among employees who strongly agree with the statement, "My manager helps me set work priorities," 38% are engaged. Among employees who disagree, only 4% are engaged (Gallup)

18 Does goal setting matter? Need a volunteer to demonstrate the fact that goals drive higher achievement.

19 1 2 3 S M A R T 4 5 Specific Measurable Achievable Relevant Time limited Describe exactly what will be accomplished. Quantify the goal by adding a measure to describe what success looks like. While the goal should be a stretch, it should / be something that is possible to reach. Every goal should contribute the organization and/or department s overall success. Identify when the date is to be completed. Smart Goals

20 Seven s Context Goal Setting Relationship Building s Feedback Performance Management Development Confrontation

21 Importance of interaction According to a recent Gallup Study the employee s perception that the manager cares is a key predictor of employee performance and links to business outcomes Look for day-to-day opportunities to connect Dialogue with each team member regularly Listen actively and respond in a timely manner Make sure your team members know they matter Help employees find tangible, immediate solutions to work challenges

22 Our people have to feel they make a difference. They could probably make fifty cents an hour more, with fewer responsibilities at a big box store down the street. So I need to communicate that I care about them, I need to connect them to Ann Taylor, I need to make sure they know they are important to me and to the company. Susan DeProfio, Ann Taylor Store Manager, The Value of s with Employees, Gallup.com

23 Seven s Context Goal Setting Relationship Building s Feedback Performance Management Development Confrontation

24 Informal Feedback Drives Performance Manager knowledgeable about employee performance Feedback directly related to helping the employee do their job better Feedback emphasizes strengths, not only when there is something wrong Emphasis solely on the negative decreases performance by 11% Fair and accurate feedback = 40% rise in performance

25 How do you feel about feedback? Which picture best reflects how you feel about giving feedback? Do you love to give feedback? Why or why not? What are the common pitfalls of feedback?

26 STRUK feedback

27 Feedback model When What Why So What? Whendid it happen? Describe the context. Whatdid the person do? Focus on behavior. Be very specific. Whyis it worth providing feedback? What is the impact? Positive or negative impact, depending on situation. Whatare you requesting? Do it again? Do something different next time.

28 Seven s Context Goal Setting Relationship Building s Feedback Performance Management Development Confrontation

29 Capability Can Can t Won t Unwilling but Able Sell the importance. Listen to why. Ensure successes. Recognize effort only forward. Provide +/- consequences. Unwilling and Unable Focus on tasks. Plan and execute. Create small wins. Monitor closely; reduce support over time. Possible difficult conversation or corrective action. Willingness Willing and Able Recognize achievement and independence. Give more responsibility. Coach to develop talent and engagement. Willing but Unable Train or provide mentor. Build skill; relate to previous work. Build confidence; relate to previous successes. Recognize growth improved skills. Will

30 Optimizing the Performance Management Focus on positive Emphasis on strengths in performance reviews improves performance Performance strengths by 36% Personality strengths by 21% Suggest areas for improvement Be specific on the outcomes Emphasize the future

31 Seven s Context Goal Setting Relationship Building s Feedback Performance Management Development Confrontation

32 Lessons of Experience How successful executives develop on the job The Center for Creative Leadership has conducted research to examine how successful executives develop on the job. Careers of successful executives were systematically evaluated to determine what had the greatest impact. The most significant learning came from a variety of experiences. The breakdown is as follows: Challenging assignments 42% Significant other people 22% Hardships 20% Other events 16%

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34 Seven s Context Goal Setting Relationship Building s Feedback Performance Management Development Confrontation

35 When would confrontation be the conversation?

36 The BEST Leaders Confront 25,000 professionals studied 10,000 hours of observation to identify patterns Compared A Leaders (top performers) to B Leaders (consistent, solid performers) Discriminating difference was one skill set A Leaders more rapidly & more effectively confronted tough problems Source: Crucial Confrontations By Kerry Patterson & Joseph Grenny

37 In A Situation That Requires Confrontation Source: Crucial Confrontations By Kerry Patterson & Joseph Grenny

38 Fight or Flight is a Choice... But what happens when you choose fight or flight?

39 In A Situation That Requires Confrontation Stop your story! Source: Crucial Confrontations By Kerry Patterson & Joseph Grenny

40 STOP the Story! Fundamental attribution error Assuming negative intent for behavior when it is someone else s behavior Assuming external impact for behavior when it is my behavior

41 Ask a Harmonizing Question Why might a reasonable, rational and decent person do what he/she did? Source: Crucial Confrontations By Kerry Patterson & Joseph Grenny

42 Confrontation Model

43 Seven s that drive engagement and results Context Goal Setting Relationship Building s Feedback Performance Management Development Confrontation

44 Have a phenomenal weekend!

45 Precision Talent International

46 Confrontation Model