Leaders and Engagement
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1 Leaders and Engagement Presentation for NAREIT Ilene Gochman, Ph.D. Global Leader, Integrated Talent Management, Korn/Ferry International October 15, 2012
2 What s Your Experience with Engagement? 2
3 Agenda What Is Engagement and Why Does It Matter Engagement Drivers Engaging High Potentials Engagement and Leadership Building Engagement in Your Organization 3
4 What Is Engagement? Employee engagement is a mind-set of taking personal stakeholder responsibility for the success of the organization and applying incremental effort aligned with the organization s goals Engagement involves action and is not just an attitude or a feeling Attitudes such as morale (belief in an organization and its goals) and job satisfaction (contentedness with one s job) do not involve action and should not be used as terms that are interchangeable with engagement Source: FYI for Talent Engagement TM, Korn/Ferry International 4
5 Evidence of Engagement in an Organization A higher level of engagement is evident if employees: Are willing to go above and beyond Have their heads in the game Care about the future of the organization Are receptive to organizational change Are persistent Identify themselves with the organization Seek opportunities to contribute Volunteer for assignments/projects Desire a long-term relationship (i.e., stay with the company) Are enthusiastic and energetic Effective employee engagement is generally evident when: Employee retention is high Individuals are meeting or exceeding their performance indicators Employees want to improve the business Evidence of lower employee engagement could include: Top talent leaving the company Lack of increased productivity or breakthrough ideas Increased mistakes on the job Source: FYI for Talent Engagement TM, Korn/Ferry International 5
6 Measuring Engagement Palpable Talent Management Overall High Potential Not High Potential Percent of respondents % Favorable % Neutral % Unfavorable Mean % Trust and Respect in Top Management Overall High Potential % 27% Not High Potential 3.30 Personal Impact Overall High Potential % Not High Potential 3.19 Positive People Treatment Overall High Potential Not High Potential A. B. C. D. Percent favorable 40. My job is very meaningful to me. (Nature of the Job) Drivers Palpable Talent Management No Favorability 37.5% Low Favorability 12.5% Moderate Favorability 10.4% Significant Favorability 39.6% 53. The work I do makes a meaningful difference. (Personal Influence) 5. My immediate manager welcomes my views, even when I disagree. (Immediate Manager Working Relationship) 52. Peers in this organization seek out each other for advice, counsel, and support. (Peer Culture) Trust and Respect in Top Management 35.4% 6.3% 8.3% 50.0% 19. I find it easy to work with peers outside of my immediate work group. (Peer Culture) 49. My immediate manager always treats me fairly. (Immediate Manager Working Relationship) Personal Impact 16.7% 6.3% 6.3% 70.7% 11. The job(s) I have had and think I will have in the future here are interesting and challenging. (Nature of My Career) Positive People Treatment 27.1% 14.6% 10.5% 47.8% 8. I have a strong network of talented colleagues throughout the organization. (Peer Culture) 7. My job is very challenging. (Nature of the Job) 3. Senior leaders are very approachable. (Trust in Senior Leadership) 6
7 Why Engagement Is Important: Performance Organizations with engaged employees outperform those organizations with less engaged employees Engaged employees demonstrate distinct behaviors that are aligned with organizational goals. They: are invested in organization s future are willing to do more are willing to go beyond expectations strongly recommend the organization This behavior results in improved performance indicators, including: Growth in revenue (sales per employee) Profitability (income per employee) Customer loyalty (retention rates) Retention (voluntary turnover) Lost time (sick days and accident days) Source: FYI for Talent Engagement TM, Korn/Ferry International 7
8 Engagement Drivers Communication and Alignment with Strategy Trust in Senior Leadership Manager Relationship Peer Relationships, Cooperation and Teamwork Reward and Recognition Empowering Decisions and Actions Job Design and Support Career Support and Leadership Development Source: FYI for Talent Engagement TM, Korn/Ferry International 8
9 Engagement Drivers that are Critical for High Potentials in Senior Leadership Trust and Respect in Top Management Senior leaders have the capability to effectively execute the organization s strategies and create a culture of trust and integrity that fosters a highly committed and performing workforce. Palpable Talent Management Management is committed to and visibly involved in the development and careers of employees. Personal Impact The organization has a strong culture of employee involvement and solicits and implements employee input. Employees perceive that they make a real difference in their company. Positive People Treatment Management throughout the organization demonstrates sincere interest in the welfare of all employees and ensures that they are managed fairly and given individualized consideration Korn/Ferry International. ALL RIGHTS RESERVED. 9
10 Engaging High Potentials We found that high potentials must score higher than the rest of the employee population on a subset of specific engagement items or they present a retention risk 10
11 Why High Potentials Matter High Performers are Not Always High Potentials But, High Potentials are Mostly High Performers 29% of high performers are high potentials 7% of high potentials are not high performers High Potentials Not High Potentials 71% of high performers are not high potentials High Performers Lo Performers 93% of high potentials are high performers Source: High-Potential Management Survey, Corporate Leadership Council,
12 Who High Potentials Are High potentials are individuals with high learning agility Learning agility is the willingness and ability to learn the right lessons from experience, and apply those lessons in other new, first-time situations Learning agility is different from just learning or being smart In other words, learning agile leaders know what to do when they don t know what to do 12
13 Why is Learning Agility Important? Research Finding: Learning agility is the leading predictor of success in new and leadership roles Source: Lombardo and Eichinger,
14 Two Styles Leaders Use to Engage Others High Professional Passion for what they do Leverage expertise Conscientious, structured and processoriented approach to situations and people More comfortable engaging similar people A good mentor and developer of direct reports and others High Potential Passion for new ideas; visionary, outof-the-box thinking Leverage broader knowledge base Vary communication style and approach to people based on situation Understand how to engage and motivate a diversity of people Enthusiasm for change- may enjoy leading organizational change efforts Can be more focused on engaging self - may become bored dealing with similar people issues over time 14
15 Which Engagement Style Does Each Leader Likely Have? High Professional Passion for what they do Leverage expertise Conscientious, structured and process-oriented approach to situations and people More comfortable engaging similar people A good mentor and developer of direct reports and others High Potential Passion for new ideas; visionary, out-of-thebox thinking Leverage broader knowledge base Vary communication style and approach to people based on situation Understand how to engage and motivate a diversity of people Enthusiasm for change- may enjoy leading organizational change efforts Can be more focused on engaging self - may become bored dealing with similar people issues over time 15
16 Leadership Competencies Most Associated with Engaging Employees Listening Informing Delegation Conflict Management Motivating Others Building Effective Teams Managing Vision and Purpose Patience Developing Direct Reports and Others Understanding Others Source: FYI for Strategic Effectiveness TM, Korn/Ferry International 16
17 Engagement Through the Talent Lifecycle Onboarding Development Deployment Communicate strategy and what it means for the individual Support new hires in developing relationships Provide mentors and career support Provide feedback on what people are doing well and what they could improve Support leaders in developing leadership competencies associated with engagement Place people, especially high potentials, in roles that will stretch them and where they will have an impact Performance Management Rewards & Recognition Have a consistent process to evaluate people that is as fair as possible Communicate results to employees Align rewards and recognition to performance Use multiple methods, not just financial means 17
18 What has worked to engage employees in your organization? What hasn t worked? 18
19 Lessons Learned from Other Organizations Do: Develop and monitor an engagement strategy/ program as you would any other business strategy/ program Facilitate focused activities designed to address specific drivers of engagement that are issue areas Listen carefully to feedback, communicate what you heard and take action as appropriate Don t: Make it a stop and start program Have office parties and birthday parties as a way to drive engagement Ask for feedback and not hear it Say engagement is important but not walk the talk Just reward the what, also reward the how 19
20 Engagement Best Practices Make sure the workforce understands and work towards business objectives Get commitment from the top and establish Senior Leaders as the owners of the engagement strategy Engaged leadership fosters engaged employees Handle engagement with the same rigor and attention as other business strategies Measure engagement periodically and link specific initiatives to survey data Develop leaderships skills that drive engagement Get front-line managers involved Develop and implement a strategy for engaging high potentials Source: FYI for Talent Engagement TM, Korn/Ferry International 20
21 Measuring for Business Impact Hi-Po Impact Retention Extra effort and initiative Greater contribution Persistence Organizational change leadership Increased engagement and loyalty Raise the bar on overall organizational performance Productivity Business Impact Role readiness Attrition cost avoidance Customer loyalty Employee morale 21
22 COPYRIGHT 2012 Korn/Ferry International. ALL RIGHTS RESERVED.
23 Biography Ilene Gochman, Ph.D. Ilene Gochman, Ph.D., is a Senior Partner for Korn/Ferry Leadership and Talent Consulting and the Global Leader for Integrated Talent Management, based in the Firm s Chicago office. For more than two decades, Ms. Gochman has been helping individuals, groups, and organizations improve their business effectiveness. She has extensive experience developing human capital strategies to enhance employee attraction, retention, and engagement; using analytics to produce data-driven change linked to business performance; improving the effectiveness of senior leadership and board-level teams and individuals; designing talent management strategies and programs, including succession planning, performance management, 360º feedback, and competency development. Prior to joining the Firm, Ms. Gochman served in several global and North American leadership roles at Towers Watson, Watson Wyatt, and Towers Perrin. As part of her responsibilities, she led ongoing global research efforts on how human capital practices and employee engagement impact financial performance. Senior Partner Leadership and Talent Consulting CHICAGO Ilene.Gochman@kornferry.com Ms. Gochman has spoken at conferences around the world and is frequently quoted in business and human resources publications. She has worked with clients across a wide variety of industries, including manufacturing, healthcare, insurance and financial services, retail, advertising, professional services, transportation, and logistics. Earlier in her career, she served as director of organization planning, development, and quality at International Paper and as an assistant professor of psychology at Rutgers University. She is a member of the American Psychological Association, the Society for Industrial and Organization Psychology, and the Human Resources Planning Society. Ms. Gochman earned her doctoral degree in psychology from the University of Washington and a bachelor s degree in psychology from Carnegie Mellon University. 23
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