Employee Engagement Disampaikan kepada: Mahasiswa S1 Karyawan Unsada Oleh: Yunus Triyonggo, PhD., CAHRI. 23 Desember 2017

Content What is employee engagement? Why does it matter? How do we know if our employees are engaged? How have organizations achieved high levels of engagement? How to get started

What is employee engagement? Heightened connection to work, organization, mission or co-workers Beyond job satisfaction or happiness Personal meaning in work Pride Belief their organization values them More likely to go above minimum and provide “discretionary effort.”

What is employee engagement? Engagement is not the same a employee satisfaction. Engagement is made up of two elements: Motivation: means how hard someone is willing to work, how much they are willing to make an extra effort, how much they want to do their best – in other words, how motivated someone is to do their job well. Commitment: means how much a person cares about the company they work for; how much they want it to be successful; how much they want to make their career with the company.

Engaged employees Have strong relationships in organization Highly motivated to work hard Stay – even for less money Go the extra mile Recommend organization as good place to work

On the other hand.. Not engaged Not strongly committed to organization Feels trapped Gives bare minimum Actively disengaged Poor relationship with organization Only going through the motions

Why Employee Engagement? Human Capital Metric Why Employee Engagement? A number of studies* show top quartile versus bottom quartile companies on engagement scores had: 12% higher profit growth rate *Harter, et. al., Journal of Applied Psychology (2002); Watson, Wyatt (2004); Globoforce (2005); Towers, Perrin, Global Workforce Study (2007-2008), Wiley (2011)

Why Employee Engagement? Human Capital Metric Why Employee Engagement? A number of studies* show top quartile versus bottom quartile companies on engagement scores had: 3.44 points higher net profit margin *Harter, et. al., Journal of Applied Psychology (2002); Watson, Wyatt (2004); Globoforce (2005); Towers, Perrin, Global Workforce Study (2007-2008), Wiley (2011)

Why Employee Engagement? Human Capital Metric Why Employee Engagement? A number of studies* show top quartile versus bottom quartile companies on engagement scores had: 18% greater productivity *Harter, et. al., Journal of Applied Psychology (2002); Watson, Wyatt (2004); Globoforce (2005); Towers, Perrin, Global Workforce Study (2007-2008), Wiley (2011)

Why Employee Engagement? Human Capital Metric Why Employee Engagement? A number of studies* show top quartile versus bottom quartile companies on engagement scores had: 12% higher customer satisfaction *Harter, et. al., Journal of Applied Psychology (2002); Watson, Wyatt (2004); Globoforce (2005); Towers, Perrin, Global Workforce Study (2007-2008), Wiley (2011)

Why Employee Engagement? Human Capital Metric Why Employee Engagement? A number of studies* show top quartile versus bottom quartile companies on engagement scores had: 62% fewer accidents *Harter, et. al., Journal of Applied Psychology (2002); Watson, Wyatt (2004); Globoforce (2005); Towers, Perrin, Global Workforce Study (2007-2008), Wiley (2011)

Why Employee Engagement? Human Capital Metric Why Employee Engagement? A number of studies* show top quartile versus bottom quartile companies on engagement scores had: 52% lower inventory shrinkage *Harter, et. al., Journal of Applied Psychology (2002); Watson, Wyatt (2004); Globoforce (2005); Towers, Perrin, Global Workforce Study (2007-2008), Wiley (2011)

Why Employee Engagement? Human Capital Metric Why Employee Engagement? A number of studies* show top quartile versus bottom quartile companies on engagement scores had: 51% lower voluntary turnover *Harter, et. al., Journal of Applied Psychology (2002); Watson, Wyatt (2004); Globoforce (2005); Towers, Perrin, Global Workforce Study (2007-2008), Wiley (2011)

Why Employee Engagement? Human Capital Metric Why Employee Engagement? A number of studies* show top quartile versus bottom quartile companies on engagement scores had: 27% less absenteeism *Harter, et. al., Journal of Applied Psychology (2002); Watson, Wyatt (2004); Globoforce (2005); Towers, Perrin, Global Workforce Study (2007-2008), Wiley (2011)

How Do We Know If Our Employees are Engaged? Ask them

Employee Engagement Survey finding Engagement score for PT XYZ is 75% which places in the Top Quartile 2016

How to increase Engagement score Engaged employees are categorized into Moderately Engaged & Highly Engaged

High Scores/ Low Scores vs Impact Engagement Engagement zero correlation (no impact) strong correlation (high impact) Root Cause 1 Root Cause 2 Root Cause 3 Engagement Engagement Root Cause 4 These scattercharts show that knowing that a Root Cause score is low or high does not, by itself, indicate whether it will have a weak or strong impact on Engagement in your company. Some Root Causes with low scores have little impact on engagement. Some Root Causes with high scores have little impact on Engagement. We will point out which are more important, relatively speaking, tan others for IPC as we present the results. zero correlation (no impact) strong correlation (high impact)

Summary of Root Cause => Engagement The previous slides illustrate the strongest relationships between Root Causes and Engagement. To get a better sense for the relationship between Root Causes and Engagement, Motivation, and Commitment, the following table of correlations is provided. Correlations ≥0.80 are quite strong: Engagement Motivation Commitment Job Satisfaction 0.95 0.89 Teamwork 0.91 Empowerment 0.86 0.88 Friendship Manager Caring 0.84 Job Clarity 0.87 Recognition 0.80 0.85 Company Values 0.83 0.77 Company Pride 0.82 Manager Effectiveness 0.81 0.73 0.78 Career 0.68 Company Policies 0.76 0.66 0.75 0.62 Compensation 0.70 Work Conditions 0.55 0.74 Resources 0.54 Executive Leadership 0.65 0.51 0.71 0.61 0.45 Training 0.69 0.59 0.43 0.57 0.36 0.33

*A difference of more than 0.02 is significant. Engagement Overview   Dec 2015 25th 50th 75th 50%ile Gap* Engagement Index 4.16 3.97 4.10 4.22 0.06 Job Satisfaction 4.24 3.89 4.00 0.24 Teamwork 4.01 3.71 3.83 3.95 0.18 Work Conditions 3.85 3.55 3.87 0.14 Career 3.73 3.43 3.60 3.77 0.13 Friendship 4.29 4.11 4.20 0.09 Job Clarity 4.12 4.06 4.17 Compensation 3.10 2.80 3.05 3.30 0.05 Manager Caring 4.04 3.90 4.03 4.15 0.01 Empowerment 3.76 3.88 Manager Effectiveness 3.79 3.70 3.82 3.94 -0.03 Company Values 3.58 3.50 3.65 -0.07 Recognition 3.81 3.75 -0.08 Company Policies 3.47 3.40 3.59 -0.12 Resources 3.48 3.61 -0.13 Company Pride 3.78 3.98 -0.25 Training 3.31 3.44 3.63 -0.32 Executive Leadership 3.29 3.45 3.64 -0.35 *A difference of more than 0.02 is significant.

Engagement Process Model 1. Plan 5. Sustain Engagement and Resurvey 2. Survey Communicate 3. Analyze 4. Take Action

How Do We Achieve High Levels of Engagement?

Effective Practices Engagement is everyone’s responsibility It must be a strategy Lead from the top Involve unions Hire with care; probation is part of selection Onboard well.

Effective Practices Select supervisors who can supervise – and build engagement Give them training, resources and support Hold supervisors accountable for engagement

Effective Practices Manage performance Recognize contributions Make sure employees know what is expected – and how work links to mission Meet regularly with employees Provide opportunities to grow and develop Hold employees accountable – avoid transferring poor performers Recognize contributions Make sure employees’ opinions count Create a positive work environment – respect work/life balance Communicate Measure and re-measure engagement.

Getting Started Make the long-term commitment Communicate the business case Get leaders, managers and supervisors on board Involve unions Plan and communicate strategy Survey employees Follow through