Employee engagement. Introduction. benchmark trends report. Our ETS benchmark
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- Preston Lambert
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1 Employee Introduction We re delighted to publish this employee. It s heartening that so many companies now run an employee survey. However, for lots of them, it can still be a challenge to demonstrate the value in doing so. Results are analysed and understood, and actions are discussed. Yet, and particularly where scores appear high, knowing exactly how and where to act isn t always clear. Benchmarking survey results provides essential context and helps you to better understand high and low scores. It enables you to compare your scores internally, and externally against other organisations of a similar size, in the same industry or against top-performers. In this report we share data, insights and analysis to give you an overview of the current state of employee. Areas we look at include; the most common drivers of, historical comparisons, differences across industries, and the impact of transition and organisational change. All findings are based on the ETS data. We hope you find it useful. And if our team at ETS can help you further, either with ing or any other aspect of employee or surveys, please do let us know. Our ETS The ETS is made up of 1,785,903 employee responses taken from a total of 99 surveys. The database contains data up to December 2016 and so offers a contemporary comparison. 1
2 Historical trends Employee Employee, just like other business metrics, is influenced by various factors. From year to year, scores go up and down. It s still useful, though, to step back and explore historical data. QUESTION Overall I am satisfied working for the company 86% 86% 80% 87% 87% I intend to be still working for the company in a year s time 86% 88% 86% 84% 84% Morale in the company is high at present 57% 52% 48% 63% 59% I am proud to work for the company 87% 91% 88% 87% 84% I am willing to go the extra mile for the company 81% 93% 90% 90% 86% I would recommend the company as a great place to work 81% 83% 75% 76% 77% I enjoy my job 86% 88% 87% 88% 86% I am motivated by the company to do the best job I can 83% 83% 82% 83% 80% I have recommended the products and/or services of my company 90% 95% 91% 93% 91% I feel a strong sense of belonging to the company 85% 82% 80% 81% 76% I am challenged and motivated in my job 71% 81% 80% 81% 84% I believe action will be taken as a result of this survey 70% 71% 68% 69% 60% Engagement average* 81% 84% 81% 83% 81% This table features 12 core survey questions most often used in indices and shows how the scores for each have fluctuated over the last five years. Key: These bandings are based on a normal distribution of the current ETS. *Engagement average is made up of scores across the most common drivers of for companies in our. This is not an overall score. Very Good Good Moderate % 89-96% 71-88% Poor 64-70% Very Poor 0-63% Did you know? In 2016, the most common index questions were: 1. I would recommend the company as a great place to work (78%) 2. I am proud to work for the company (75%) 3. I intend to still be working for the company in 12 months time (64%) *Percentages indicate the proportion of companies with these questions in their index. 2
3 Employee Main themes Engagement scores are static (between 81% and 84%) Employees feeling challenged is up sharply (84%) Some of the question scores for common key drivers in our are pretty high. And, at an overall level, they ve remained static during the last five years. This is no surprise as, during times of change such as the current VUCA business environment, for those already engaged typically remains the same while declining for disengaged employees. This is backed up by our finding of a decrease in disagree but an increase in strongly disagree survey responses over the same period. There has been a significant rise of 13% over the last five years for employees feeling challenged and motivated. This reflects the notion that higher uncertainty equals higher challenge. The good news is that employees who are engaged are typically more resilient and therefore relish challenge. It s no wonder then that fostering greater resilience and a growth mind-set is something more companies are looking to develop in teams. Drop in employees belief in action post survey (60%) Employees sense of belonging is down (76%) The 10% fall in employees believing action will be taken following a survey is worrying. If employees feel it s just a tick box exercise then a decline in the scores, and in survey response rates, is probable. It s probably more likely to be the case, though, that employees did not hear about actions taken post survey, which leads to cynicism on their part. Widespread organisational change, mergers and acquisitions could explain the 9% fall in sense of belonging as this leads to detachment from the brand. However, given that job enjoyment and company pride were unaffected, this is likely to be only true for companies with multiple brands. A bigger factor could be the influence of the Millennial generation as they tend to move jobs more often. From an employer s perspective, this shift means that encouraging a sense of belonging may soon become a less significant indicator of. And, in turn, employees may increasingly no longer need to feel they belong, in order to be engaged. 3
4 Key drivers of Employee To better understand which factors are having the greatest influence on employee for most companies, we looked at the aggregate level findings of key driver analyses conducted by ETS in Benchmark score: I am happy with my opportunities for career development DEVELOPMENT Benchmark score: Benchmark score: 68% 83% The company puts the customer first CUSTOMER FOCUS 77% Key driver score: 43% Key driver score: 33% Key driver score: 29% The company treats its employees fairly FAIR TREATMENT Benchmark score: I am satisfied with the package of benefits I receive PAY AND BENEFITS Benchmark score: 76% 74% Key driver score: 29% Key driver score: 29% My ideas and views count (employee voice) EMPLOYEE VOICE The figures above show the percentage of companies for whom these questions are key drivers. Data is based on surveys at 21 companies comprising a total of 74,132 respondents. We found 139 key driver themes (54 individual questions) an average of six or seven per survey. Commentary and analysis Career development is key The most common key driver question for nearly half (43%) of companies was I am happy with my opportunities for career development (68% favourable score). This reinforces the need to provide development opportunities at all levels. Too often, training is prioritised for high potentials or is seen as a reward for achievement. While this ensures a strong talent pipeline, a more inclusive approach fosters a culture of fairness and helps to increase. Importance of putting customers first It s interesting to see the influence on of a company putting the customer first. This was a key driver for 33% of companies (83% favourable score). Our linkage analysis shows that the more engaged a workforce is, the higher its customer satisfaction scores are, so this clearly is a virtuous circle. And, given the huge importance to businesses and their brands of having employee and customer advocates, this is certainly an area worth targeting. Employee-led development Where appropriate, try to empower and enable employees to drive their own career development. This could be through providing online tools for employees to track their skills and see where they could succeed cross-functionally. You should also develop more sophisticated career paths, helping employees find opportunities available to them. Such technology-enabled approaches are consistent with global mega-trends around better harnessing technology for business success. 4
5 Employee Industry comparisons We explored data across our five most frequently surveyed industries finance, manufacturing, professional services, retail and utilities. This allowed us to understand where some industries scored significantly higher or lower than the overall. I intend to be still working for the company in a year s time 80% Overall I am satisfied working for the company 89% I am proud to work for the company 82% I am willing to go the extra mile for the company 88% FINANCE I would recommend the company as a great place to work 77% I am motivated by the company to do the best job I can 92% I feel a strong sense of belonging to the company 78% I am challenged and motivated in my job 84% I enjoy my job 96% I believe action will be taken as a result of this survey 61% I intend to be still working for the company in a year s time 90% MANUFACTURING Overall I am satisfied working for the company 97% I am proud to work for the company 91% I am willing to go the extra mile for the company 85% I would recommend the company as a great place to work 80% I have recommended the products and/or services of my company 87% I enjoy my job 91% I feel a strong sense of belonging to the company 70% PROFESSIONAL SERVICES Morale in the company is high at present 86% I intend to be still working for the company in a year s time 87% I am proud to work for the company 92% I would recommend the company as a great place to work 84% I enjoy my job 84% I believe action will be taken as a result of this survey 83% This table shows differences in scores for common questions across different industries (next page for more). 5
6 Industry comparisons (continued) I intend to be still working for the company in a year s time 75% I am proud to work for the company 82% RETAIL UTILITIES I am willing to go the extra mile for the company 86% I have recommended the products and/or services of my company 93% I feel a strong sense of belonging to the company 79% I would recommend the company as a great place to work 74% I enjoy my job 87% I intend to be still working for the company in a year s time 87% Overall I am satisfied working for the company 80% I am proud to work for the company 89% I am willing to go the extra mile for the company 93% I would recommend the company as a great place to work 85% I am challenged and motivated in my job 85% I believe action will be taken as a result of this survey 72% I enjoy my job 92% This table shows differences in scores for common questions across different industries. Commentary and analysis The manufacturing paradox Interestingly, manufacturing employees sense of belonging to the brand is quite low at 70% but pride in working for the company is extremely high (91%). This could be due to employees connecting more with the product or project they work on, rather than with the brand as a whole. This view is supported by the high score for advocacy of products and services (87%). It s a good thing to keep in mind for any large multi-brand companies across different industries. Financial services advocates in short supply It s telling that only 77% of financial services employees say they would recommend their employer, despite 96% of respondents enjoying their jobs. This is almost certainly a result of a tough last 10 years for the industry. Quite naturally, issues like negative publicity, regulatory reform and restructuring have given way to greater uncertainty, lower pride and fewer employees who are willing to be advocates. What to do with intention to stay? Intention to stay has a considerably lower average in retailers which, given the high turnover here, is to be expected. Where this is the case, design an index that exemplifies what it means to be engaged at your company. Or, if higher employee churn is accepted, use employee advocacy, motivation or attachment to the brand as a more meaningful measure of. If you do want to encourage employees to stay for longer, a clear career progression model is imperative. 6
7 Employee High performers We analysed our high performance, which features the highest scores (those in the top quartile). We wanted to find, statistically, the biggest differences between high performers and the rest. Doing this provides a more stretching comparison, showing how much room for improvement there might be on certain survey questions. All the departments in the company work well together High Benchmark score: 90% My pay reflects my performance High Benchmark score: 84% I am happy with my opportunities for career development High Benchmark score: 95% I believe action will be taken as a result of this survey High Benchmark score: 87% I have seen improvements since the last survey High Benchmark score: 87% I would recommend the company as a great place to work High Benchmark score: 96% 61% 56% 68% 65% 67% 76% This table shows the top five survey questions with the biggest variance between high performers and the overall. 29% 28% 27% 22% 20% 20% Commentary and analysis Stop, collaborate and listen At +29%, the score for departments working well together saw the biggest variance. Better internal communication and possibly also a more collaborative working culture are likely factors here, as could be organisational structure. For employees, particularly younger generations, a flat and less hierarchical organisational structure is now expected, one that promotes cross-functional and collaborative working. This, naturally, has a major bearing on what employees experience at a company day-to-day and, therefore, on their. Career development to the fore Employee satisfaction with career development opportunities (+27%) is another area with a significant variance. We ve already explained the importance of this in the section on key drivers of. The discrepancy here shows that there s a big opportunity for companies to improve, which will have an impact on their broader levels. Those companies scoring in the top quartile are probably already providing structured development plans for employees, with line managers also focusing more on coaching and developing the direct reports within their teams. Have a plan for action Action-planning is a common area of struggle for companies after a survey. But this high performance data shows it can, and really must, be done better. The right approach to action ownership and process will depend on your business. Where possible, it can be good to actively involve employees in this. And, where communication around actions is concerned, aim for this to be little and often tell employees what you re going to do, tell them what you re doing, and tell them what you ve done! 7
8 Transitional Employee Organisational change and business transformation is commonplace, particularly among larger companies. Naturally, this can impact employees outlook and. We collated data for six companies undergoing such transition to see how their survey scores were affected. I am proud to work for the company Transitional Benchmark score: 72% 86% The company takes health & safety in the workplace seriously Transitional Benchmark score: 77% 91% My manager provides constructive feedback on my performance Transitional Benchmark score: 68% 80% I believe action will be taken as a result of this survey Transitional Benchmark score: 54% 65% I receive adequate recognition (beyond compensation) for my achievements Transitional Benchmark score: 56% 67% I enjoy my job Transitional Benchmark score: 77% 87% 14% 14% 12% 11% 11% 10% I would recommend the company as a great place to work Transitional Benchmark score: 66% I intend to be still working for the company in a year s time Transitional Benchmark score: 77% 76% 85% This table shows the questions that have the greatest difference from the overall in companies undergoing transition, plus selected key questions. 10% 7% Commentary and analysis Pride takes a fall Employees pride in working for the organisation saw the most dramatic fall, down by over 14%. This reflects the higher uncertainty employees typically experience in such circumstances, as well as factors such as the dilution of the brand, diversification and possible redundancies and restructuring. Internal initiatives on the backburner? It s apparent that common internal initiatives (such as development tools) aren t always a priority in times of change. This is a natural by-product-product, as all other internal communication can be diluted when large changes are ongoing. However, survey results provide valuable insight into where this is affecting perceptions of the business most, giving you an opportunity to respond positively. Lack of survey action A degree of cynicism among employees is common in companies going through transition. However, surveying during transition offers a fantastic opportunity to take stock and give the employees a voice that they may feel they ve been lacking during change. What s crucial is listening to the themes raised and communicating back to employees what action will be taken. Role of surveys during transition Surveys provide valuable insights into how business change is perceived by employees, what s going well and what could be improved. Use findings to fine tune your strategy live during the process. And don t be afraid to dig deeper using focus groups or town halls to gain greater context. Keeping lines of communication open with employees is never more important than during transition. 8
9 Employee Next steps We hope you ve found this report interesting. We d love to help you more with employee here are just a few of the ways we can do this: 1. Giving you a FREE report, offering a comprehensive comparison which maps your own latest employee survey results against our 2. Providing the tools and expert consultancy support to devise a full census or pulse survey programme 3. Creating and running a high-impact improvement programme for your company. References: Job Demand-Control model by Kerasek (1979) and further validated by Van der Deof & Maes (2010). Naomi Eisenberger and Matthew Lieberman, The Pains and Pleasures of Social Life, Science, vol. 323, no. 5916, February 2009, : Explication of social pain and social pleasure, and the impact of fairness, status, and autonomy on brain response. Ernst & Young Global Megatrends Report (2015) Expert Training Systems (ETS) plc 9
10 Please get in touch with us to find out more. +44 (0)
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