Optimizing employee engagement in your organization
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1 Please disable popup blocking software before viewing this webcast Optimizing employee engagement in your organization Thursday, Sep. 28, :00 PM ET
2 CPE reminders To receive CPE, you must be active for the entire webcast and respond to at least 75% of the polls. You will have 90 seconds to answer each poll. CPE is not offered for audio-only attendees or replay viewing. Group participation will not receive CPE. You must be logged in individually to receive CPE credit. Upon conclusion of the program, please complete the final evaluation and your CPE certificate will be available if you have met the minimum CPE requirements. Turn off all pop-up blockers to download your CPE certificate. Use Q&A to ask questions during the webcast. Grant Thornton LLP. All rights reserved. 2
3 For a better webcast experience Use a wired internet connection from your local office and turn off your computer's Wi-Fi signal. For optimal viewing speed, close all other applications, including Outlook. Most technical issues (e.g., buffering, silenced audio) can be resolved by refreshing your feed using the F5 key. Use the Help button if you have technical difficulties. You can also call or contact GTWebcast@Level3.com Click the Resources button to download the presentation materials. Grant Thornton LLP. All rights reserved. 3
4 Speakers Sharon Whittle (Moderator) Principal Mid-South Human Capital Services Ken Cameron Director Human Capital Services Tiffany Yates Senior Manager Human Capital Services Stephen Porter Senior Associate Human Capital Services Grant Thornton LLP. All rights reserved. 4
5 Learning objectives Illustrating key strategies being used to improve employee engagement Describing how to adopt a continuous feedback-based performance management system Explaining how to use surveys and new technologies to get a real-time pulse of your organization, especially in times of change or uncertainty Describing the latest trends in the human capital industry Grant Thornton LLP. All rights reserved. 5
6 Agenda Employee engagement overview The importance of feedback Employee engagement surveys Total rewards GT's culture journey Grant Thornton LLP. All rights reserved. 6
7 Employee engagement overview
8 Why is employee engagement important? Corporations whose employees are engaged perform better than companies whose employees are not by over 200%. When compared with business units in the bottom quartile of employee engagement, those in the top quartile realize improvements in the following areas: A company with an engaged workforce realizes the benefit of employees who: 41% lower absenteeism 20% higher sales 21% higher profitability 40% fewer quality incidents Go above and beyond duties Advocate for their company Collaborate with coworkers Take initiative * Grant Thornton LLP. All rights reserved. 8
9 Employee engagement overview Between 65%-70%* of the workforce falls into a state of disengagement 100% 80% 60% 40% 20% 0% Employee Engagement trends % Engaged % Not Engaged % Actively Disengaged * Grant Thornton LLP. All rights reserved. 9
10 The American workforce by numbers American workers are confident in the market and looking to make changes 19% of Americans said it was a good time to find a quality job in 2012 vs. 42% of Americans responded the same in 2016* * Grant Thornton LLP. All rights reserved. 10
11 The American workforce by numbers 68% 51% 63% 60% of employees believe they are overqualified for their current job of US employees say they are actively looking for a new job or watching for openings of Americans believe it is "very likely" or "somewhat likely" that they would find as good a job or better than they have now of employees say the ability to do what they do best in a role is "very important" to them" * Grant Thornton LLP. All rights reserved. 11
12 Employee engagement What exactly does this mean? Employee engagement is determined by an individual's level of contribution and satisfaction in their role Employee engagement isn't just adding bean bags and ping pong tables to breakrooms Employee engagement measures how much employees are committed to the organization and put discretionary effort into their work Grant Thornton LLP. All rights reserved. 12
13 Total rewards
14 Total rewards A true differentiator of engagement Surveys have shown time and time again that a well though-out total rewards strategy differentiates organizations from their peer organizations, attracts higher talent levels, improves retention and engagement and ultimately, improves employee productivity Look at all elements of the rewards program Integrate with career development Use of variable pay Recognition Clearly communicate objectives and align Grant Thornton LLP. All rights reserved. 14
15 Total rewards evolution "Old school" Used to support traditional organizational structure Focuses on duties and tasks Training provided only when needed Very formalized structure limited flexibility Limited communication to employees Work-Life balance (what is that?) "Meat and Potatoes" Rewards and Recognition Bonus, merit increase "New school" Programs are aligned with organizational goals and strategies operationalized by linking to company values Focuses on employee contributions; used to motivate Flexible Transparent Training and Development - implicit in employee value proposition Work-Life balance (flexible time-off, telecommuting, etc.) Creative, brand-based Rewards and Recognition Grant Thornton LLP. All rights reserved. 15
16 Branding total rewards Just like top performing organizations have a strong brand, best-in class reward programs are branded for communication and alignment purposes Clear, concise and formally documented total rewards philosophy Communicated throughout the organization "tone at the top" Aligned with organizational culture, mission, vision and values Operationalized by connecting values to behaviors to outcomes Grant Thornton LLP. All rights reserved. 16
17 Grant Thornton perspective for best practices Total rewards model illustration Pay & benefits Prosper Achieve Recognition & engagement Base pay (tied to performance) Competitive healthcare plan Wellness & preventive care Retirement plan Competitive paid time off Engagement action planning Focus on innovation Individual recognition High performance team Clear two-way communication Grow Learning & development Local & national opportunities Learning framework Performance development review Tuition reimbursement Numerous development tools Work environment Connect Work/life flexibility Team concept Mission & values culture Challenging work Meaningful impact Grant Thornton LLP. All rights reserved. 17
18 The importance of feedback
19 The importance of feedback 40% 39% 58% 78% $605B of workers are actively disengaged when they get little or no feedback of workers feel they are not appreciated at work of managers believe they give enough feedback the number of employees that said that being recognized motivates them in their job in productivity is lost every year¹ due to actively disengaged employees * Grant Thornton LLP. All rights reserved. 19
20 Why is feedback important? Leaders who give more feedback are 3X more likely to have highly engaged employees The benefits of feedback: It gives a feeling of belonging and purpose It increases growth for both the giver and receiver It unlocks change and innovation Prevents us from getting "stuck" ¹ Issue-Zenger-Folkman.pdf Grant Thornton LLP. All rights reserved. 20
21 What does good feedback look like? Good feedback looks like An intention to help the employee grow Openness on the part of the feedback giver Invites the employee into the problem solving process Timely find a time to discuss constructive criticism as soon as possible Specific rather than vague Empathetic and caring Open minded allow for a reciprocal dialogue Good feedback doesn't look like An intention to show him/her that he/she was wrong Close-mindedness or self-protection on the part of the feedback giver Points out a mistake without collaborating on how to try things differently Bringing up past mistakes months after they have happened Use of absolutes, i.e. "You're always late" Cold and unfeeling Top-down without a chance for additional discussion Grant Thornton LLP. All rights reserved. 21
22 How to give feedback? Research suggests that those who are new to something want more positive feedback in order to boost confidence As people gain expertise, their tolerance and desire for constructive criticism increases Using words like and or what if, rather than but is a way to offer suggestions and allow creative juices to flow without fear Encourage a culture of continuous feedback don't limit this to quarterly or annual reviews Grant Thornton LLP. All rights reserved. 22
23 Feedback cycle Discover issues Evaluate improvement Analyze causes & effects Commit to action Review options & solutions Grant Thornton LLP. All rights reserved. 23
24 When to focus on formal feedback? Performance management coaching Performance management coaching feedback steps: Performance coaching is an ongoing process which helps build and maintain effective employee and supervisory relationships Supervisors and employees can work collaboratively on creating action plans that might include training, new assignments, job enrichment, self-study, or work details Build trust between coach and coachee Define the issues to be improved upon Create a plan of action Deliver frequent feedback Grant Thornton LLP. All rights reserved. 24
25 When to focus on formal feedback? Accelerating high performers High performers can deliver 400% more productivity than the average employee¹ 50% of high performers expect a monthly sit-down with their managers Only 53% actually receive the monthly feedback Steps for feedback to high performers: Tip: Let them steer the focus of feedback session Ask what they think they can do better or differently Let them have a say in their stretch goals Take the time to learn from them if possible Don't discontinue positive feedback always commend on jobs well done Make sure that feedback is specific² ¹ ² Grant Thornton LLP. All rights reserved. 25
26 Employee engagement surveys
27 Using employee engagement surveys Employee engagement surveys that provide a thorough understanding of staffs' attitudes and perceptions are the first key step for any organization to develop strategies that improve employee motivation, reduce staff turnover and lead to better customer retention Surveys decrease turnover and save the company money Surveys convey to the employees that their opinions are valued If administered anonymously, surveys uncover issues you wouldn t have known about otherwise Surveys bolster employee engagement Grant Thornton LLP. All rights reserved. 27
28 Measuring employee engagement: Surveys 92% 35% 25% 40% of companies issue employee engagement surveys¹ average response rate to internal company surveys² of employee engagement survey responses included some kind of suggestion for improvement of employee engagement survey respondants knew their company's goals and strategy ¹ ² Grant Thornton LLP. All rights reserved. 28
29 Measuring employee engagement: Surveys Surveys are some of the most widely-used tools to gain a pulse on the voice of the employee Tips for creating employee engagement surveys: 1) Ensure absolute anonymity you won't get accurate results if employees fear they'll be reprimanded for their candor 2) Give employees a reason to participate in the survey 3) Ask the right number of questions (too many is overwhelming; too few doesn't give enough insight) 4) Don't include subjective terminology such as "easy" or "hard"-- ensure your variables can be validated Grant Thornton LLP. All rights reserved. 29
30 Survey results: Action plans Employees need to see that their responses make material changes in the way the workplace is run this will increase participation in next year's survey but also increase faith in leadership To prove that participating in workplace surveys is worthwhile, the organization has to commit to making changes based on the results. After the survey is completed, identify a team to analyze the results and come up with a change management strategy Grant Thornton LLP. All rights reserved. 30
31 Pulse surveys Unlike more traditional employee surveys, pulse surveys are issued frequently once a week or once every other week. These surveys are less comprehensive than more traditional approaches Sometimes known as "pulse checks" Ideally issued every 1-2 weeks Typically 1-3 questions in length Rotate questions each week to provide variety and gain different insights Grant Thornton LLP. All rights reserved. 31
32 Pulse surveys Many organizations, including Apple, have settled on one central question: "On a scale of zero to ten, how likely is it you would recommend this company as a place to work? After using pulse surveys for three months: - 4 out of 10 employees become happier at work - 51% of employees who initially rated their happiness level below 7 out of 10 * Grant Thornton LLP. All rights reserved. 32
33 Millennials Millennials currently make up 1/3 of the workforce and will account for over half the workforce by 2030 Millennials want flexibility in their jobs, frequent feedback, and a higher sense of purpose. Some questions that are particularly good for the millennials demographic are the following: Does your supervisor seem to care about you as a person? Is there someone at work who encourages your development? Do you feel your work is important? Grant Thornton LLP. All rights reserved. 33
34 GT's culture journey
35 Grant Thornton's culture journey What is the culture journey at Grant Thornton? In 2015, Grant Thornton began an intentional, multi-year culture transformation to truly live our values of Collaboration, Leadership, Excellence, Agility, Respect and Responsibility We did this through: New programs, initiatives, policies and practices New organizational structures to enable those programs and practices New measures to gauge our progress Continual touchpoints and communication with our people to ensure we deliver on that promise Grant Thornton LLP. All rights reserved. 35
36 People and culture efforts Grant Thornton s People and Culture team is addressing how current, future and alumni talent experience our firm from every aspect of what they think, feel and say about their experience at GT 1 People first mindset 4 Renewed focus on professional development and advancement 2 GT was the first of the Top Ten accounting firms to launch Flexible Time Off (FTO) to support work-life balance along with other flexible work arrangements 5 Diversity and inclusion focus with eight different employee Business Resources Groups (BRG's) 3 Living our values and reinforcing them through linking to formalized behaviors and outcomes and reinforcing through monthly "culture conversations" 6 Focus on continuous and real-time feedback to employees that allows them to be the "Captains of Their Career" Grant Thornton LLP. All rights reserved. 36
37 Proof is in the pudding.. 10% 8% 16% 11% Grant Thornton's firmwide turnover rate dropped 10 percentage points in 2016 Engagement at Grant Thornton has increased 8 percentage points over the past several years based on engagement factors included in our employee survey Our engagement scores are 16 percent above other prefessional services benchmark scores Firmwide increase in revenue for 2016 Grant Thornton LLP. All rights reserved. 37
38 Improving engagement is an opportunity Increase in productivity and profitability Lower absenteeism Improve retention rates Better communication Increase collaboration Increase recruitment success rates Grant Thornton LLP. All rights reserved. 38
39 Questions? Grant Thornton LLP. All rights reserved. 39
40 Speakers Sharon Whittle (Moderator) Principal Mid-South Human Capital Services Ken Cameron Director Human Capital Services Tiffany Yates Senior Manager Human Capital Services Stephen Porter Senior Associate Human Capital Services Grant Thornton LLP. All rights reserved. 40
41 Disclaimer This Grant Thornton LLP presentation is not a comprehensive analysis of the subject matters covered and may include proposed guidance that is subject to change before it is issued in final form. All relevant facts and circumstances, including the pertinent authoritative literature, need to be considered to arrive at conclusions that comply with matters addressed in this presentation. The views and interpretations expressed in the presentation are those of the presenters and the presentation is not intended to provide accounting or other advice or guidance with respect to the matters covered For additional information on matters covered in this presentation, contact your Grant Thornton, LLP adviser Grant Thornton LLP. All rights reserved. 41
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43 Thank you for attending Visit us online at: twitter.com/grantthorntonus linkd.in/grantthorntonus To receive future Grant Thornton CPE tax webcast invites, For questions regarding your CPE certificate, contact Grant Thornton LLP. All rights reserved. 43
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