Employee Engagement Meetings & Events Australia Presenter: Geoff Slade Chairman, Slade Group 5/4/2010 1
Since 1956, in the Western World, white collar jobs have outnumbered blue collar jobs. During the 20 th Century we moved from jobs that were typically low-discretion, requiring little decision making to the information age where high discretion, considerable thinking and decision making rested on workers. A strong work ethic remains a cultural norm that places a positive moral value on doing a good job and is based on a belief that work has intrinsic value for its own sake. 5/4/2010 2
What s changed about work? 5/4/2010 3
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Employee Engagement EMPLOYEE ENGAGEMENT is a modern concept. 2000 is the first year we can find reference to the term in common usage and in 2001 there were two mentions of the term Employee Engagement in the Fairfax Press In 2008 the terms scored 42 mentions in the same press. 5/4/2010 5
The Impact of Tougher Economic Conditions on Employee Engagement 5/4/2010 6
Employee Engagement Luxury or necessity in turbulent times? Slade Partners undertook 13 face-to-face discussions with 13 Australian organisations Calvary Health Care Brisbane City Council Pitcher Partners SEEK Goulburn-Murray Water Probuild NAB City of Melbourne Futuris ANZ MOvember Sunwater Visy 5/4/2010 7
Employee Engagement Why do organisations want high levels of employee engagement? Increasing attraction of good people Increasing retention of good people Decreasing absenteeism Increasing creativity and innovation Increasing discretionary effort Adherence to organisational values and behaviours Achieving goals and objectives 5/4/2010 8
Employee Engagement While every organisation we interviewed could demonstrate their support of Employee Engagement, each recognised particular challenges in these times: The impact of organisational restructuring The impact of redundancies The need to change work practices The need to reduce spending 5/4/2010 9
Employee Engagement No formal documentation but an overall belief that a tangible/practical approach is better than abstract or academic definition: Affirmative Action Beers on a Friday CEO forums Clear Communication Matching charitable donations Employee assistance services Extended leave Flexible working hrs Information updates Sustainability policies Engaging graduate programmes Study leave Preventative Health Checks Career acceleration programmes Training and Development Employee breakfasts Guest Speakers Understanding individual motivation 5/4/2010 10
Employee Engagement Leaner times means different thinking: Employee Engagement is as important or even more important in turbulent times How leaders keep people engaged is different now: Understanding employees and their personal motivation in their work/life interests Mentoring Training at work/formal courses Fast-tracking high potentials 5/4/2010 11
Some Quotes... 5/4/2010 12
Some Quotes... 5/4/2010 13
Getting Metrics Measurement includes: Benchmarking such as the Hewitt Surveys Exit interviews Retention Absenteeism Attraction rates Quality of candidates Climate surveys 5/4/2010 14
Findings... The Slade Partners study found: Employee Engagement has become entrenched as part of the way we do things around here. There is no one size fits all approach, however the ultimate value is around productivity and/or profitability. There is no one measurement tool nor a driving desire to find an objective measurement tool. Tougher times have meant a rethink not on intent but what s going to give us the biggest bang for our buck. 5/4/2010 15
The Contentious Slide WHY BOTHER? 5/4/2010 16
Who s actually engaged? Engagement Index by Tenure in Current Company 100% 80% Engaged 60% 40% Not Engaged 20% Actively disengaged 0% Australia 2004 Australia 2006 Australia 2008 5/4/2010 17
Employee Engagement: The Effort Most organisations of any size are now aware of and actively addressing the following and investing significant amounts of $$$ Robinson et al 2004 5/4/2010 18
Employee Engagement: The Effort I M P O R T A N C E Training, Development & Career Immediate Management Performance and Appraisal Communication Equal opps/ Fair Treatment Pay, conditions and benefits Health and Safety Co-operation Family friendliness Job Satisfaction Feeling Valued and Involved E N G A G E M E N T 5/4/2010 19
But again, who s engaged? Engagement Index by Tenure in Current Company 100% 80% Engaged 60% 40% Not Engaged 20% Actively disengaged 0% Australia 2004 Australia 2006 Australia 2008 5/4/2010 20
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The Elephant in the Room Dr John Sullivan, HR Strategist, thinks there is. If Employee Engagement is about productivity and profitability, then why do we keep engaging with our average performers? A 20 year longitudinal study in the US army shows that average performers at 6 months were also average performers at 20 years. Most performance management and most training doesn t change performance. Top performers consistently deliver 60% more than average performers. At Google there was a 300% difference between the top and the bottom. At Microsoft 1000% 5/4/2010 22
Battle of the HR Giants JOHN SULLIVAN KEVIN WHEELER 5/4/2010 23
Battle of the HR Giants John Sullivan If you re going to develop talent it is very risky and it takes a long time Use recruitment as your weapon hire the best from your competitors and diminish their strength, and retrench your low performers and send them to your competitors with a glowing reference! Kevin Wheeler People s performance can be improved by being in a better work environment, a more suitable job or working for a better manager Unless you re growing, you should be able to develop and retrain your own. IBM prefers to grow its own, investing and developing from within. Keep a very close eye on your top performers and engage closely with them. Classroom style training is old school people need to learn on the job. 5/4/2010 24
Who are our Top Performers? Jim Collins study of the 90 th Percentile (Only two variables) They share the organisation s values They have a passion for what they do (And four known EQ factors) The do as they say They don t need to be managed They have a window / mirror approach They have responsibilities not a job 5/4/2010 25
Talent Management If passion and values are the only two variables in the list of high performance attributes we have to ensure that at the point of hiring. (i)we fully understand what drives, motivates and excites a person. If the job and/or the organisation is not going to match these then let them go. (ii) We fully understand their core values and ask if they are aligned to our organisational values. 5/4/2010 26
Talent Management Some thoughts Imagine if even 50% of your staff were fully engaged. Imagine the increased productivity, creativity, innovation and output. Given top talent doesn t have to be managed, how much it would free up talent up the line. 5/4/2010 27
Food for Thought What are you doing? What would you like to change? THANK YOU! 5/4/2010 28