ENGAGE YOUR ASSOCIATES TO IMPROVE YOUR RESULTS Happy! Happy! Happy! 1
Engage Your Associates to Improve Your Results What is employee engagement? How does engagement impact your business? How can I drive engagement? Where can I get more solutions? 2
Engage Your Associates to Improve Your Results - Independent Business What is employee engagement? 3
What is employee engagement? Engaged associates want their organization to succeed because they feel connected emotionally and socially to its mission, vision and purpose. Webster says Engagement is..emotional involvement or commitment; state of being in gear 4
What is employee engagement? Three Types of Employees Engaged employees: o Passionate, connected to the company o Drive innovation move the organization forward Not Engaged employees: o Checked-out o Putting in time not passionate or energized Actively Disengaged employees: o Unhappy at work; acting it out o Undermining the progress made by engaged employees Gallup, 2013 5
What is employee engagement? employee engagement continues to be an important predictor of organizational performance, even in a challenging economy. (Gallup, 2013) 6
What does employee engagement look like? White paper c/o ROOT, Inc. (2014) 7
What is employee engagement? 8
Engage Your Associates to Improve Your Results - Independent Business How does engagement impact YOUR business? 9
How does engagement impact your business? Engagement in the U.S. The 30 million engaged employees in the U.S. come up with most of the innovative ideas, create most of a company s new customers, and have the most entrepreneurial energy. Gallup, 2013 10
Employee Engagement How does engagement impact your business? Engaged vs. Disengaged: Business Performance High Businesses in the TOP HALF These have nearly DOUBLE the odds of success Low Businesses in the BOTTOM HALF Gallup, 2013 compared to these. 11
How does engagement impact your business? What about those who are disengaged? Disengaged employees are more likely to steal from their companies, negatively influence their coworkers, miss workdays, and drive customers away. Gallup, 2013 12
Image: thehealthculture.com How does engagement impact your business? Engagement and healthcare costs The top 25% of teams (the best managed) versus the bottom 25% in any workplace (the worst managed) have nearly 50% fewer accidents and have 41% fewer quality defects. Teams in the top 25% versus the bottom 25% incur far less in healthcare costs. Gallup, 2013 13
How does engagement impact your business? The Benefits of Engagement When organizations successfully engage their customers and their employees, they experience a 240% boost in performance-related business outcomes compared with an organization with neither engaged employees nor engaged customers. Gallup, 2013 14
How does engagement impact your business? Business Outcomes affected by Engagement Gallup continues to find a strong correlation between engagement and these business outcomes: Gallup, 2013 Customer ratings Profitability Productivity Turnover Safety Shrinkage (theft) Absenteeism Quality The outcomes are highly consistent across different organizations from diverse industries and regions of the world. 15
How does engagement impact your business? Cost of Turnover Based on a (2000) survey the average cost to hire and train ONE new employee is $3, 637 Frank 2000 New Ideas for Retaining Store Level Employees 16
How does engagement impact your business? Cost of Turnover Based on 2013 CAP study 16% of annual salary for high-turnover, low-paying jobs (earning under $30,000 a year). For example, the cost to replace a $10/hour retail employee would be $3,328. 20% of annual salary for mid-range positions (earning $30,000 to $50,000 a year). For example, the cost to replace a $40k manager would be $8,000. How many new employees does your business hire and train each year? CAP Center for American Progress November 2013 17
How does engagement impact your business? Cost of Poor Management Skills Managers spend an average of 17% of their time dealing with problem employees. Lost Hours p/week Lost Salary p/week Lost Hours Annually Lost Salary Annually 7.65 $114.75 397.80 $5,967 (Based on a 45-hour work week at $15 per hour.) LA Times, 2011 18
How does engagement impact your business? The average company can reduce their turnover by 9%-32% by simply improving their manager's skills. Ken Blanchard Companies, 2011 19
Engage Your Associates to Improve Your Results - Independent Business How can I drive employee engagement? 20
How do you drive engagement? 21
How can I drive engagement? managers are primarily responsible for their employees engagement levels. Your managers are a key determining factor of the engagement levels amongst your hourly associates. Gallup, 2013 22
How can I drive engagement? Engaged Managers Engaged Associates Managers engagement has a direct impact on employee s engagement. Employees who are supervised by highly engaged managers are 59% more likely to be engaged than those supervised by actively disengaged managers. Gallup, 2015 23
How can I drive engagement? Bringing it to Life in Your Organization Select the right people especially managers Select candidates based on their specific talent to manage others, not for their years of seniority or standout performance in their current role When companies systematically pick the right managers, they can achieve 27% higher revenue per employee than average. Gallup, 2015 24
How can I drive engagement? Start at the Beginning Implement employee/manager on-boarding best practices for new hires Employees are as engaged as they will ever be during the first six months of their tenure at an organization. Pair them up with a workplace friend to show them the ropes Provide plenty of recognition for their early efforts Provide a way to have their opinions be heard Hold your managers accountable to helping in on-boarding Gallup, 2013 25
How can I drive engagement? Communicate and Embody What does your company stand for? People want to know what their organization stands for and why, and to understand how their role supports the organization s overarching purpose and goals. (Gallup, 2015) Help employees verbalize and internalize the company s mission and purpose Embody the behaviors and attitudes you expect Gallup, 2013 26
How can I drive engagement? Develop your people Provide opportunities to learn and grow Individualized stretch projects and assignments Additional responsibilities and accountabilities Coaching Mentorship People who get the opportunity to continually develop are twice as likely as those on the other end of the scale to say they will spend their career with their company. (Gallup, 2015) 27
How can I drive engagement? Accelerate engagement Develop and focus on employees strengths people who use their strengths every day are six times more likely to be engaged on the job. (Gallup, 2013) Encourage your managers to focus on employees strengths How do you feel when you are doing something you are good at? 28
How can I drive engagement? Build Relationships Show you care Employees respond to managers who make an extra effort to show that they care. Managers should keep this in mind during day-today interactions: Find ways to communicate interest Inquire about their work and other important aspects of their lives Gallup, 2013 29
How can I drive engagement? Accelerate Engagement Enhance Employees Wellbeing Healthier & engaged employees: Lower medical costs Fewer days of work missed Accelerated performance outcomes Happier employees Gallup, 2013 30
Engage Your Associates to Improve Your Results - Independent Business Where should I start? 31
Where should I start? Ask for feedback from employees, managers and even customers Clarify the Company s Mission and Vision be sure all people leaders clearly understand and can communicate Establish solid communication processes Clarify expectations of your managers for engaging their associates Implement people-development tools and practices across your business Embody what you wish to see 32
Where should I start? Self-evaluate: Would your employees agree or disagree with the following? 1. I know what is expected of me at work. 2. I have the materials and equipment I need to do my work right. 3. At work, I have the opportunity to do what I do best every day. 4. In the last seven days, I have received recognition or praise for doing good work. 5. My supervisor, or someone at work, seems to care about me as a person. 6. There is someone at work who encourages my development. Gallup, 2013 33
Where should I start? Self-Evaluate: Would your employees agree or disagree with the following? 7. At work, my opinions seem to count. 8. The mission or purpose of my company makes me feel my job is important. 9. My associates or fellow employees are committed to doing quality work. 10. I have a best friend at work. 11. In the last six months, someone at work has talked to me about my progress. 12. This last year, I have had opportunities at work to learn and grow. Gallup, 2013 34
Where should I start? Come visit us! Booth #611 Organizational surveys Performance consulting Custom training solutions People Merchandising Operations Financial Customer Service Webinar solutions elearning Management solutions SDI (Supermarket Directors Institute) DMA (Department Manager Academy) 35
Engage Your Associates to Improve Your Results What is employee engagement? How does engagement impact your business? How can I drive engagement? Where can I get more solutions? 36
Resources Articles Frank, B. (2000). New Ideas for Retaining Store-Level Employees. Retrieved from http://ccrrc.org/wp- content/uploads/sites/24/2014/02/new_ideas_for_retaining_store- Level_Employees_2000.pdf Gallup. (2013). State of the American Workplace. Retrieved from http://www.gallup.com/strategicconsulting/163007/state-americanworkplace.aspx The Ken Blanchard Companies. (2011). Making the Case. Retrieved from http://www.kenblanchard.com/leading-research/research/making-the- Business-Case Hsu, T. (2012, Nov 10). Managers spend almost a day a week on slacker workers, study says. Los Angeles Times. Retrieved from http://articles.latimes.com/2012/nov/10/business/la-fi-bad-employees-20121110 37
Resources (continued) CAP Study (Center for American Progress) November 2012 https://www.americanprogress.org/wp-content/uploads/2012/11/costofturnover.pdf Gallup 2015 http://www.gallup.com/services/182138/state-american-manager.aspx YouTube videos The Ken Blanchard Companies. (2010, Apr 7). Engaging Your Employees. [Video file]. Retrieved. Wegmans. (2010, Nov 30). Empowerment a Wegmans Who We Are Value. [Video file]. Retrieved. Wegmans. (2010, Nov 30). High Standards a Wegmans Who We Are Value. [Video file]. Retrieved. Wise, E. (2014, May 31). Happy (Pharrel) Hunt Valley Wegmans. [Video file]. Retrieved. 38
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