Key Drivers to an Engaged Workforce
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1 Key Drivers to an Engaged Workforce Rich Kortum Director, Strategic Partnerships Goals Understand how employee engagement impacts the customer experience Identify the five key drivers for employee engagement Learn why employee data must be integrated into performance improvement activities 2 1
2 What is Employee Engagement? Employee satisfaction Employee satisfaction is the extent to which employees are happy or content with their jobs and work environment. Specific: focused on fundamental organizational practices Actionable: you can determine where process improvement opportunities exist 2
3 Employee engagement Employee Engagement is the emotional connection an employee feels toward his or her employment organization, which tends to influence his or her behaviors and level of effort in work related activities. 1 Culture-based: provide information about how the culture of the community is fostering the loyalty and engagement of the employees Perception-based: provide insights into how the employee feels about their job 1. BusinessDictionary.com 5 Overall goal is to have satisfied and engaged employees! 6 3
4 Why do companies measure employee engagement? Why do we measure employee engagement? Quality of service Customer satisfaction Customer loyalty Productivity Retention Growth (personal / business) Profit 8 4
5 Why don t all companies measure employee engagement? Why don t some leaders measure engagement? I have an open door policy We have a comment box I don t have the time We do employee one on one s Annual employee reviews Too expensive I m afraid to hear what my employees think 10 5
6 Is today s workforce engaged? Only 29% of today s workforce is fully engaged! 26% 29% 45% Fully Engaged Partially Engaged Disengaged Source: Dale Carnegie / MSW ARS Research 11 What disengaged employees are costing us Source: Officevibe 12 6
7 Turnover in Assisted Living Department Percentage Resident assistants/personal 36.63% care aides Dining Services 35.74% Certified Nursing Aides (CNA) 29.58% Registered Nurses (RN) 28.74% Licensed Practical Nurses (LPN) 27.39% Medication Aides 22.81% Environmental Services 21.29% Marketing 17.16% Top-Level Executives 11.33% ALL EMPLOYEES 34.96% Source: NCAL / LeadingAge McKnight s Senior Living January Direct turnover costs Recruitment Covering the open positions Interviewing Reference checking Drug testing / background checks Orientation & training 14 7
8 Cost of turnover 30% of an annual salary $25,000 Salary or $12.20/hr. = $7,500 $30,000 Salary or $14.42/hr. = $9,000 What this means 20 people at $7,500 = $150, people at $9,000 = $180,000 Cost of Turnover Calculator Staff-Stability.aspx 15 Source: NRC Health: My InnerView Assisted Living data 8
9 Customer experience in Assisted Living 31% Have Trust and confidence in Assisted Living 13% 8% 7% 7% Very High 24% Fairly High 24% 49% Very High Fairly High Some Fairly Low Very Low Source: NRC Health Market Insights National Study, August 2015 n size: 25,
10 Perception vs. Reality 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 31% Trust/Confidence Resident Recommendation 91% 91% Family Recommendation Trust/Confidence Resident Recommendation Family Recommendation Source: NRC Health Market Insights Study, and My InnerView Family/Resident surveys % 80% 60% 40% 20% 0% Resident Recommend 91% 91% Familiy Recommend 20 10
11 Assisted Living resident results Source: NRC Health Assisted Living Resident Experience Surveys collected in Assisted Living resident results Source: NRC Health Assisted Living Resident Experience Surveys collected in
12 Assisted Living resident quadrant analysis 20. Variety of meals 21. Appeal of food Source: NRC Health Assisted Living Resident Experience Surveys collected in What matters most in Assisted Living Communities Nation s Residents Say: 1. Responsiveness of Management 2. Comparison of Charges 3. Competency of Staff 4. Care (Concern) of Staff 5. Choices/Preferences Source: NRC Health Assisted Living Resident Experience Surveys collected in
13 Assisted Living family results Source: NRC Health Assisted Living Family Experience Surveys collected in Assisted Living family results Source: NRC Health Assisted Living Familyt Experience Surveys collected in
14 Family quadrant analysis 20. Variety of meals 21. Appeal of food Source: NRC Health Assisted Living Family Experience Surveys collected in What matters most in Assisted Living Communities Nation s Families Say: 1. Competency of Staff 2. Care (Concern) of Staff 3. Responsiveness of Management 4. Choices/Preferences 5. Responsiveness of Staff Source: NRC Health Assisted Living Family Experience Surveys collected in
15 What matters most in Assisted Living Resident Responsiveness of Management Comparison of Charges Competency of Staff Care (Concern) of Staff Choices / Preferences Family Competency of Staff Care (Concern) of Staff Responsiveness of Management Choices / Preferences Responsiveness of Staff 29 Communities with higher employee satisfaction have better family satisfaction EMPLOYEE SATISFACTION SCORE Mean = 70.1 Lowest Low High Highest < to to 86.7 > 86.7 FAMILY SATISFACTION Source: NRC Health-Assisted Living My InnerView employee and family surveys 15
16 Communities with better work environments have higher family satisfaction EMPLOYEE ENVIRONMENT SCORE Mean = 61.3 Lowest Low High Highest < to to 86.7 > 86.7 FAMILY SATISFACTION Source: NRC Health-Assisted Living My InnerView employee and family surveys Communities with better employee training have higher family satisfaction EMPLOYEE TRAINING SCORE Mean = 61.6 Lowest Low High Highest < to to 86.7 > 86.7 FAMILY SATISFACTION Source: NRC Health-Assisted Living My InnerView employee and family surveys 16
17 Communities with better management have higher family satisfaction EMPLOYEE MANAGEMENT SCORE Mean = 58.3 Lowest Low High Highest < to to 86.7 > 86.7 FAMILY SATISFACTION Source: NRC Health-Assisted Living My InnerView employee and family surveys Employee engagement / satisfaction in Assisted Living 17
18 The engagement journey 0-3 Months 4-12 Months 1+ Year 35 Engagement levels in Assisted Living Source: NRC Health Assisted Living Employee Surveys collected in
19 The Power of Mentoring Shows the Company Cares More Engaged Workforce High Job Satisfaction Increase Retention Leadership Development 37 6 Keys to a Successful Mentor Program 1. Begin with the end in mind 2. Don t just communicate over communicate 3. Set the right standards 4. Make mentors feel special 5. Involve mentors in the designing of the program 6. Stick to it (Mentoring, do it right) 38 19
20 Engagement Questions Always Usually Sometimes Never Source: NRC Health Assisted Living Employee Surveys collected in Assisted Living employee results Source: NRC Health Assisted Living Employee Surveys collected in
21 Assisted Living employee results Source: NRC Health Assisted Living Employee Surveys collected in Source: NRC Health Assisted Living Employee/Resident surveys 21
22 Assisted Living employee quadrant analysis Comparison of Pay Source: NRC Health Assisted Living Employee Surveys collected in What matters most in Assisted Living Communities Nation s Employees Say: Top five key drivers why employees recommend 1. Care (concern) of management 2. Assistance with job stress 3. Attentiveness of management 4. Clear guidelines by management 5. Support of career Source: NRC Health Assisted Living Employee Surveys collected in
23 Source: NRC Health Assisted Living My InnerView Surveys collected 45 23
24 Manager VS LEADER Maintains Has a short-range view Focuses on systems and structure Asks how and when Accepts the status quo Does things right Puts fires out Develops Has a long-range perspective Focuses on people Asks what and why Challenges the status quo Does the right thing Fires people up 48 24
25 A manager can lead the horse to water, but a Leader will make the horse thirsty 49 Are you a Thermometer or a Thermostat Leader? 50 25
26 51 Why do we measure Employee Engagement? Quality of service Customer satisfaction Customer loyalty Productivity Retention Growth (personal / business) Profit 52 26
27 The path to Improvement never ends! Reevaluate Communicate Results Identify 1-2 areas of focus Take Action Set a realistic goal Dig Deeper Ask Why, Why, Why 53 Companies with engaged employees outperform those without by over 200% Source: Gallup 27
28 Make sure you can tell your team what temple they are building! Three workers are working by the side of a road, breaking stones. A passerby notices one of them is very unhappy, another is ok and the 3 rd is extremely happy. Curious as to what is going on, the passerby asks each one. The first one, the unhappy one, says I m breaking stones. Hard work, and I can t wait until 5:00! The second one, the contented one, says I am making a good living. I have a family to feed. The third one, the happy one, says I am Building a Temple! 55 Key Drivers to an Engaged Workforce Rich Kortum Director, Strategic Partnerships rkortum@nrchealth.com
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