Research on Employee Engagement Fully engaged employees: Perform 20% better and are 87% less likely to leave. Corporate Leadership Council, 2004 Feel more secure at work, are more productive, profitable, safer, and they create stronger relationships. Gallup Management Journal, 2006 Handle workplace stress differently—they report feeling better equipped to take on new challenges and opportunities. Gallup Management Journal, 2006 “Perhaps you have seen the recent research on Employee Engagement. If this data is true—and we can trust its validity given the research organizations who have done this work — Employee Engagement rightfully takes on new prominence in the strategic goals of American business. Given that technology and information have made it more difficult for companies to distinguish themselves in terms of products and services, employee effectiveness/emplyee engagement may now be the most reliable method for creating and sustaining industry advantage, brand loyalty, and profitability.

Research on Employee Engagement In a survey of 360,000 employees: Those companies that had a high number of self-identified “disengaged employees” lost 2.01% operating margin and were down 1.38% in net profit during a three-year period. During that same period, those companies that reported having a highly-engaged work force boasted a 3.74% operating margin and 2.06% net profit margin. Human Resource Planning, 2004

Diversity A successful Diversity initiative is typically measured by metrics that include: compliance, increases in representation in new hires and promotion, and retention of traditionally under-represented groups. It is also often measured by the level of compliance or attendance for Diversity Awareness training and events. Success is largely defined by increases in numbers and percents.

Inclusion A successful Inclusion initiative is typically measured by metrics similarly used to measure organizational health: contribution, commitment, engagement, efficiency, accuracy, and innovation.

Diversity and Inclusion Diverse organizations aren’t necessarily inclusive. Inclusive organizations aren’t necessarily diverse. Diverse organizations do not out perform non-diverse organizations. Well-managed and inclusive firms that are diverse out perform well-managed and inclusive firms that are not diverse.

The Results Examined during a 10-year period, the 2006 DiversityInc Top 50 Companies for Diversity Index outperformed the NASDAQ by 28.2%, the Standard & Poor’s 500 by 24.8% and the Dow Jones Industrial Average by 22.4%. DiversityInc Magazine, 2006

The Solution Leveraging Diversity efforts and Inclusion strategies separately will allow organizations to do both better.

21st Century Workforce 3 to 4 generations Gender, ethnic, and cultural diversity Gay, lesbian, bisexual, and transgendered workers (GLBT) Multi-lingual and migrant staffs Differently-abled workers Numerous economic and social classes Varied work styles and religions Many other aspects of diversity *Briefly describe the current/future workforce present in American businesses—3-4 generations, gender ethnic and cultural diversity…. *“Our premise is that learning to manage inclusion is the most reliable method for getting our diverse workforce more fully engaged in the high value work of the company. *Solicit and capture on flipchart examples of the unique advantages represented by such broad diversity. (Ex, creative ideas; consumer knowledge, varied perspectives) *Solicit example of the potential types of managerial challenges that come along with this diversity. (Ex, varying points of view about how to get a task done; cultural and other clashes; team collaboration issues, etc) *Next slide

MI&E Premise Learning to Manage Inclusion is the most reliable method for getting our diverse work force more fully engaged in the high value work of the company. Individually, each group brings to the business unique and valuable advantages and points of view. Collectively, such diversity brings unprecedented managerial challenges.

Diversity & Inclusion Diversity Any dimension that can be used to differentiate groups and individuals from one another Inclusion Management practices and environmental influences that support and enable the full engagement and development of all associates

The Business Case Safety Profitability Quality Environment Customer Service Employees Vendors Community Shareholders

People Engagement

Individuals in the House are assigned Continuous Improvement projects related to business targets take initiative to improve products, services, and processes engage in Continuous Learning understand business objectives and put forth the effort to achieve them focus on understanding and meeting the needs of the customer/client think of ways to reduce cost and increase profit

fe=c2 The Fully Engaged Employee Fully Engaged (c2) employees demonstrate consistently high levels of contribution and commitment. They: Pursue involvement in the essential work of the organization and actively drive toward business targets. Sustain energy and passion, even in the face of change and challenge. Think about their assignments in a holistic way. Are innovative, taking responsibility for solving incidental and chronic problems. Demonstrate loyalty, good judgment, and integrity. Work collaboratively, often emerging as strong and positive leaders of others. Make professional development a priority. Say: “Fully engaged employees possess the qualities on your list, working with energy and passion—demonstrating consistent high levels of contribution and commitment…” (Trainer Note: Read list and add value.) (Trainer Note: Add value with your own crisp examples of this engagement type.) Ask: What % of your work team would you say is fully engaged? (Trainer Note: Have participants record % on the LL p9)

fe=c2 Insight Full engagement is discretionary. People make a choice each day about their contribution and commitment to the business.

fe=c2 Insight While people are responsible for their own c2… …the nature of the work environment does play a part in the number of people who are fully engaged in the high value work of the business.

The Relationship Position Disposition

Position and Disposition No feedback Ambiguous expectations Menial tasks No support No access to resources Poor communication No respect Position Characteristics Confused Go through the motions Do the minimum to get by Unmotivated Poor customer focus Blame others Feel like a “bit player” Impact on Disposition

Position and Disposition Consistent, balanced feedback Clear expectations Stretch Assignments Support Access to resources Open communication Position Characteristics Confident Engaged Risk-taking Motivated Customer focused Accountable My efforts make a difference Impact on Disposition

The Power Of Inclusion: Insight Diversity unmanaged can have a negative impact on engagement and productivity. We should strive to understand how organizations use inclusive leadership practices to engineer and inspire high levels of c2.

The Power of Inclusion Success as an organization is based on achieving business targets. Business targets are best achieved through fully engaged employees. Engaged employees are the products of consistent quality treatment