Rocket Trail: 5 Ways To Rapidly Increase Employee Engagement & HCAHPS Scores (AKA: Think Like Your CEO!) Presented By Dick Finnegan May 1st, 2015

Transcription

1 Rocket Trail: 5 Ways To Rapidly Increase Employee Engagement & HCAHPS Scores (AKA: Think Like Your CEO!) Presented By Dick Finnegan May 1st, 2015 Copyright C- Suite Analy3cs, 2015 All Rights Reserved

2 Today s AMBITIOUS Agenda 5 Ideas 1. Establish Engagement Goals 2. Survey Quarterly 3. Forecast Future Engagement 4. Report Engagement in $s 5. Conduct Stay Interviews What makes us happy? Free how- to- do- this tools 2

3 Good News: Engagement & RetenZon Drive Everything!

4 Bad News: We re Lost C- Suite ExecuZves: What is most likely to harm your organizazon financially over the next 12 months? 53% say insufficient talent HR survey: Which top priority do you solve least effeczvely? Engagement & Reten1on 4

5 U.S. Voluntary Quit Percentages, Post- Recession U.S. Bureau of Labor Sta1s1cs Young U.S. workers will hold jobs by age

6 Engagement Stuck Bersin/Gallup 6

7 Poll QuesZon: Engagement Goals 7 Does your company set an engagement goal other than beat last Zme or beat the benchmark?! Yes! No

8 Benchmark means standard, average, mediocre Are your pazent quality metrics based on do a Or be one hair beker than mediocre? likle beker? " 8

9 Poll QuesZon: SoluZons How does your company solve engagement & retenzon?! Employee programs! Manager accountabilizes 9

10 Are Your RetenZon Efforts Driven By AccountabiliZes or Programs? Business AccountabiliZes driven by execuzves from the top like service, quality, & safety RetenZon Programs driven from the side like town hall meezngs, employee appreciazon week 86% of the Zme 10

11 The Real Power of Supervision A global consulzng firm interviewed 1,000 recently- quit employees and asked about pay, benefits, development, advancement and relazonships with supervisors Offering a higher salary or developmental/advancement opportunity may not be enough to retain employees 11

12 Do Clinical Directors Really Drive Retention? One hospital that held nurse managers accountable for reten1on vs others that implemented programs & found Accountable hospital nurse turnover down 41% vs. others stayed the same. RecommendaZon: Hold clinical directors accountable for achieving retenzon goals 12

13 So the Punchline is Establish engagement and retenzon goals for leaders on all levels & focus on skills vs programs 13

14 Introducing the Power of Trust 14

15 The Fortune Top 100 # Baby bonding bucks, 12 weeks paid parental leave, horseshoe pits, Africa volunteering, subsidized massages, 3 wellness centers, 25 free cafeterias and free eyebrow shaping 15

16 Two- thirds of a company s score is based on the results of the Great Place To Work s Trust Index Survey Our approach is based on the major findings of 20 years of research that trust between managers and employees is the primary defining characteriszc of the very best workplaces. The Great Place to Work Ins1tute 16

17 Building Trust 1-1 Builds Profits 17

18 Can You Find The Engagement Goal- Serng Clue? 18

19 Engaged employees work with passion and feel a profound conneczon to their company Not engaged employees are essenzally checked out. They're sleepwalking through their workday Only Top Box Counts! Set goals for % employees who score in the top box AcZvely disengaged employees aren't just unhappy at work; they're busy aczng out their unhappiness 19

20 Will Bryan Bukowski of Community Health Systems Please Stand Up? 20

21 Poll QuesZon Does your survey company give you an engaged score of 50 or above?! YES?! NO? 21

22 Poll QuesZon Does your survey company give you an engaged score of 50 or above?! YES?! NO? If YES, you are likely gerng high and middle scores combined & only high scores drive produczvity 22

23 Poll QuesZon How ouen do you survey your employees?! Once per year! Less frequently! More frequently! We don t survey 23

24 Idea #2: Survey Quarterly Problem: Would you wait a year to re- survey your dissazsfied pazents? SoluZon: Track each managers improvements by quarter vs by year Because managers drive your engagement, retenzon, and HCAHPS scores! 24

25 Survey Quarterly It s not what you give them it s how you treat them Survey 25% sample quarterly & remove supervisors who do not improve Insanity: Doing the same thing over & over again & expeczng different results 25

26 Idea #3: Forecast Future Engagement Secret: ForecasZng is a sales SOLUTION because it drives salespeople to close sales So why not ask managers to forecast engagement? 26

27 How Should Your Managers Forecast Engagement? 1. Will your survey results increase this Zme? 2. What will be your survey score this Zme? 3. Will this employee score in the top box? 27

28 Engaged employees work with passion and feel a profound conneczon to their company Not engaged employees are essenzally checked out. They're sleepwalking through their workday AcZvely disengaged employees aren't just unhappy at work; they're busy aczng out their unhappiness Only Top Box Counts! Set goals for % employees who score in the top box 28

29 How Should Managers Forecast Engagement? 1. Will your survey results increase this Zme? 2. What will be your survey score this Zme? 3. Will this employee score in the top box? 29

30 Poll QuesZon Do you report either your survey scores or turnover percentages with dollar costs?! YES?! NO? 30

31 Idea #4: Report Dollars/Engagement What is Your CEO s Line of Sight? Revenue$ - Expense$ = Profit$ Engagement Scores + Turnover %s =? 31

32 Actual client turnover costs by job Physician $225,808 Nurse $46,250 Rehab Therapists $20,388 Phlebotomist $12,

33 Increasing # of engaged employees leads to 20-26% more # ProducZvity # Profitability # Shareholder returns # Employee retenzon And for certain HCAHPS scores! 33

34 Introducing The very best and only Engagement calculator I know 34

35 The Research Source Watson WyaL analyses show that a significant improvement (one standard devia1on) in employee engagement is associated with a 1.9 percent increase in revenue per employee. Debunking the Myths of Employee Engagement, Watson Wyak now Towers Watson

36 This Engagement Calculator Works! The C- Suite Analy1cs Engagement Calculator is a welcomed, one- of- a kind tool to help organiza1ons fully grasp the value of engaged employees as well as the huge number of dollars lex on the table when employees don t give their best. Perhaps its greatest value is that it dis1nguishes managers who influence engagement from those who do not, in specific dollar values. This calculator is based on broad- based research and its algorithms have a solid sta1s1cal founda1on. It can work with any engagement survey and assumes that survey measures engagement in a valid way. Dr. Gary Borich, Ph.D Endowed Fellow, QuanZtaZve Methods Program The University of Texas at AusZn 36

37 Engagement Calculator Example $ OrganizaZon earns $100 MM in annual revenue $ Conducted engagement survey that reported scores on a scale of 1-10 $ Targeted score was 8 $ Actual organizazon score was 7 $ DistribuZon of scores indicates 1 SD =

38 Engagement Calculator Example If organizazon score is 1 SD below target score SD = 1 Actual Score Target Score OrganizaZon is losing 1.9% of revenue. 019 x $100 MM = $1.9 MM 38

39 Engagement Calculator Example Technology Department $ OrganizaZon earns $100 MM in annual revenue $ Conducted engagement survey that reported scores on a scale of 1-10 $ Targeted score was 8 $ Technology department score was 9 $ DistribuZon of scores indicates 1 SD = 1 $ Technology department salaries & benefits = 10% of organizazon s total salaries & benefits 39

40 Technology Department Example If technology dept. score is 1 SD above target score SD = 1 Target Score Technology Dept. Score Technology dept is achieving 1.9% of addizonal revenue. 019 x $100 MM = $1.9 MM x.10 = $190,000 when technology department salaries & benefits comprise 10% of organizazon s total salaries & benefits 40

41 Idea #4: Report Dollars/Engagement Either A. Distribute correlazve studies B. Conduct correlazve studies with your company s data C. Apply C- Suite AnalyZcs engagement cost calculator 41

42 Poll QuesZon Do your managers conduct stay interviews?! Yes?! No? 42

43 Idea #5: Leaders Conduct Stay Interviews Structured discussion a leader conducts with each individual employee to learn the specific aczons she must take to strengthen that employee s engagement and retenzon with the organizazon Bring informazon that can be used today Focus on individual employees including top performers Put managers in the soluzon seat 43

44 Stay Interview IMMEDIATE RetenZon Improvements Reduced nurse turnover from 24% to 16% in one year, a 33% improvement Reduced nurse turnover from 28% to 17% in one year, a 39% improvement Reduced nurse turnover 70% in one year; 100% retenzon first 180 days 44

45 5 Highly- Researched QuesZons 1. What do you look forward to each day when you commute to work? 2. What are you learning here? 3. Why do you stay here? 4. What could cause you to leave us? Top- Selling SHRM- Published Book in History 5. What can I do to make your job beker for you? 45

46 Stay Interview Key Ingredients Cascade Tops Down Conducted by supervisors vs HR Once/year conznuing employees and twice for new hires, separate from performance meezngs Develop 1-1 stay plans for each employee Top- Selling SHRM- Published Book In History Have managers FORECAST retenzon 46

47 Managers Forecast RetenZon, Too Leader: Rodriguez Perf RaZng/ 5 Hi, 1 Lo Green 1+ yrs Yellow 6-12 Months Red 0-6 Months RetenZon Plan Kim Johnson 4 Provide mentor for Burt Brown 5 Develop skills for possible promozon to Cindy Stone 3 Pleased with current role & circumstance Ralph Jimenez 2 Coaching for performance 47

48 Great News! HealthStream will offer an automated Stay Interview soluzon soon by early 2016 if not sooner 48

49 5 Rocket Trail Ideas 1. Establish Engagement Goals 2. Survey Quarterly 3. Forecast Future Engagement 4. Report Engagement in $s 5. Conduct Stay Interviews Which has greatest impact for your organizazon? Versus which is easiest to do? 49

50 Fresh- thinking for solving the turnover problem in any economy BusinessWeek Dollars Goals Stay Interviews Forecasts Account- ability # Reduce Cost of Turnover # Improve Employee Engagement # Improve Revenue & Profitability suiteanaly3cs.com 50

51 Poll Question Gallup s 100-Year Commitment Surveying citizens of the world to learn what brings most happiness over 100 years. So far the answer is a.good health? b.a good job? c.love and respect from others? d.money for needs and more? e.better life for your children? 51

52 Gallup s 100-Year Commitment a. Good health b.a good job c. Love and respect from others d. Money for needs and more e. Better life for your children 52

53 To Obtain # How to Cost Turnover & Engagement # Engagement CorrelaZons to ProducZvity # The Stay Interview Manager Training Game Please Give Me Your Business Card Include # of Employees DFinnegan@C- SuiteAnalyZcs.com 53