Employee Engagement: Myth or Magic

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1 Employee Engagement: Myth or Magic Gary A. Higbee EMBA CSP CEO Higbee & Associates, Inc. North American Management Institute Senior Global Consultant SafeStart

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3 Key Points 1. What is employee engagement? 2. Why does it matter? 3. How do we know if our employees are engaged? 4. How have organizations achieved high levels of engagement? 5. How to get started

4 In Addition - Maybe 6. Complacency Curve 7. Risk Assessment Study 8. Managing Complex Change 9. Data from Gallup & NAMI

5 Key Factors Employee Engagement Matters HR has critical role Engagement is not just an initiative or program There are some simple thing we can do to get started Engagement should be measured (Surveyed) Supervision is always a Key Factor

6 50% Retention is Important 45% 40% 35% 30% 25% 20% Federal State Local Private 15% 10% 5% 0% Under

7 What is Employee Engagement? Heightened connection to work, organization, mission or coworkers Beyond job satisfaction or happiness Personal meaning in work Pride valued by society Belief their organization values them More likely to go above minimum and provide discretionary effort.

8 Discretionary Effort Go extra mile for customers Volunteer ideas Work hard Smart - Suggestions Don t quit Call in sick only when ill Goe for customers Volunteers ideas Works hard and smart Doesn t quit Calls in sick only when ill Stays alert to safety hazards. Stay alert to safety hazards, Report Them, Suggest Improvements

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10 Why Does Engagement Matter? Lack of Demotivators

11 What Might Cause This?

12 Lack of Personal Pride Pressure to complete the task in a certain amount of time What Else?

13 Power of Employee Engagement Profitability Productivity Customer scores Safety incidents Lost or stolen inventory Turnover (low-turnover orgs) Turnover (high-turnover orgs)) Absenteeism -70% -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% Key Performance Indicators Top- and Bottom-Quartile Work Groups

14 Power of Employee Engagement Profitability Productivity Customer scores Safety Safety incidents Lost or stolen inventory Turnover (low-turnover orgs) Turnover (high-turnover orgs)) Absenteeism -70% -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% Key Performance Indicators Top- and Bottom-Quartile Work Groups

15 Higher levels of engagement drive: Improved employee performance to support mission More collaborative and innovative work environments Lower costs of disengagement. Deloitte

16 Levels of Employee Engagement Worldwide Engaged Not Engaged Actively disengaged

17 Engagement in the U.S US Employees are the most productive in the world Engaged Not Engaged Actively disengaged

18 Engaged Employees Have strong relationships in organization Highly motivated to work hard Stay even for less money Go the extra mile (IH Calling) Recommend organization as good place to work

19 On the Other Hand Not engaged Not strongly committed to organization Feels trapped Gives bare minimum Actively disengaged Poor relationship with organization Only going through the motions

20 It s About Leadership

21 35% of U.S. workers polled said they d willingly forgo a substantial pay raise in exchange for seeing their direct supervisor fired

22 How Do We Know If Our Employees are Engaged?

23 Ask Them!

24 Engagement Survey Questions Pride in work or workplace 1. My organization is successful at accomplishing its mission 2. My work unit produces high-quality products and services 3. The work I do is meaningful to me 4. I would recommend my organization as a place to work Satisfaction with leadership 5. Overall, I am satisfied with my supervisor 6. Overall, I am satisfied with managers above my immediate supervisor

25 Engagement Survey Questions Opportunity to perform well 7. I know what is expected of me on the job 8. My job makes good use of my skills and abilities 9. I have the resources to do my job well 10. I have sufficient opportunities (such as challenging assignments or projects) to earn a high performance rating Satisfaction with recognition received 11. Recognition and rewards are based on performance in my work unit 12. I am satisfied with the recognition and rewards I receive for my work

26 Engagement Survey Questions Prospects for personal and professional growth 13. I am given a real opportunity to improve my skills Positive work environment and teamwork 14. I am treated with respect at work 15. My opinions count at work 16. A spirit of cooperation and teamwork exists in my work unit Additional Questions Unique to the Organization

27 Engagement Story Observation Feedback Leading Indicators Job Instructions Written procedures 2 of 8 Machine Utilization Key Performance Indicator Run Time measured by machine cycle Are these people engaged? Are they allowed to be engaged?

28 Engagement Process Model 1. Plan 5. Sustain Engagement and Resurvey Communicate 2. Survey 4. Take Action 3. Analyze

29 Taking Action on Survey Data Measurement Without Targeted Action is Useless You Said, We Did

30 Taking Action on Survey Data Form engagement teams Collect additional data Identify priorities areas of strength and weakness Focus on individual work units Develop and implement action plans Provide education and training Identify outcome measures Establish accountabilities Communicate

31 How Do We Achieve High Levels of Engagement?

32 Managing Complex Change & Employee Engagement Criteria

33 Effective Practices Engagement is everyone s responsibility It must be a strategy Lead from the top Involve labor Hire with care; probation is part of selection Onboard well.

34 Effective Practices Select supervisors who can supervise and build engagement Give them training, resources and support Hold supervisors accountable for engagement Careful about assignments

35 Effective Practices Manage performance Make sure employees know what is expected and how work links to mission Meet regularly with employees Provide opportunities to grow and develop Hold employees accountable avoid transferring poor performers Recognize contributions Make sure employees opinions count Create a positive work environment respect work/life balance Communicate Measure and re-measure engagement.

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37 What is HR s Role? Champion engagement Drive cultural change Be a role model Facilitate process Identify organizationwide issues Lead action

38 Building a Culture of Engagement A set of accepted organizational values, behaviors, and practices that promotes increasing levels of engagement as a cultural norm

39 Getting Started Make the long-term commitment Communicate the business case Get leaders, managers and supervisors on board Involve unions Plan and communicate strategy Survey employees Follow through

40 Key Take-Aways Employee engagement matters HR has critical role champion, facilitator and model Engagement is not just an initiative or program Survey results must be acted on Engagement levels are low But can be improved Engagement should be measured

41 Complacency Curve

42 The Awareness/Complacency Continuum Awareness: risk consciousness while driving, working, walking, biking, etc. First Stage of Complacency: no longer pre-occupied with the risk so your (mind mind can wander) can wander Task Skills Second Stage of Complacency: no longer thinking about the risk unless external stimulus occurs (no internal stimulus or fear) Time

43 The Awareness/Complacency Continuum Awareness First Stage of Complacency [mind can wander] Second Stage of Complacency [requires external stimulus] Time

44 The Awareness/Complacency Continuum Awareness First Stage of Complacency [mind can wander] Second Stage of Complacency [requires external stimulus] Observations Pre-Job Checks Annual Training Units/EAUs/TT Etc. Time

45 The Awareness/Complacency Continuum Awareness Perceived Risk Actual Risk (SIFs & SIDs) First Stage of Complacency [mind can wander] Second Stage of Complacency [requires external stimulus] Time

46 Questions? Thank you for attending our session. If you d like more information on anything we ve discussed, please fill out the sheet provided. I will be around for a if you want to talk! My personal Cell number is