What Drives Employee Engagement for Environmental Workforce Results from ECO Canadas 2011 Professional Engagement Study

Presentation Overview 1.Environmental Engagement in Canada 2.Attributes of Engagement 3.Engagement by Company Size 4.Key Recommendations

What does Employee Engagement mean?

Engaged workers are those that would recommend their employer as a good place to work, are motivated to do more than what is normally required and feel their contribution is valued.

Emotional and Rational Motivators The impact of heart and mind – or emotional and rational motivators – play a key role in determining the degree to which employees are engaged.

Employee Engagement Model Employee Engagement model helps organizations and industries identify the areas of strength that can be leveraged and barriers to creating a motivated and loyal work force. Using a simple yet powerful causal model, the cause and effect relationships between the human resource management practices and the level of engagement of employees are defined and tested. Grounded in theories of organizational behaviour and years of practical application, this approach provides strategic insights into the degree to which employee engagement is driven by the heart (emotional) rather than the head (rational) and tactical insights into which specific aspects need focus to improve business results.

The Employee Engagement Index The engagement index for environmental workers is 78, fourteen points higher than the index for Canadian workers overall. However, in comparing environmental employees to employees overall, it should be noted that the benchmark includes many people working in jobs where a low level of commitment would be expected, such as minimum wage jobs that do not require a high level of skill. As a result, it is important for the environmental sector to strive for a level of commitment that is well above this benchmark. Employee Engagement Among Environmental Employees in Canada

**The overall Engagement Index is based on the level of agreement with three attributes: 1.Employees would recommend their employee as a good place to work; 2.Discretionary effortemployees are motivated to do more than what is normally required for their jobs; and, 3.Employees believe that their contribution is valued by their employer. Employee Engagement Among Environmental Employees in Canada Employee Engagement Index I would recommend my company as a good place to work. I am motivated to do more than what is normally required for my job. My contribution is valued by my employer.

Compared to the National Employee Engagment benchmark, environmental employees: Are more likely to believe that their contribution is valued by their employer. Seventy-seven percent of environmental employees agree or strongly agree with this statement, as compared to only 58% of employed Canadians. They are more likely to state that they would recommend their employer as a good place to work (77% vs. the benchmark of 64%). Importantly, environmental workers are more likely to expend discretionary effort, one of the hallmarks of employee engagement.Eighty percent of environmental practitioners state that they are motivated to do more than what is normally required for their jobs, as compared to only 71% of Canadian employees. Employee Engagement Among Environmental Employees in Canada

Emotional and Rational Motivators Emotional MotivatorsRational Motivators TrustPrideJob Satisfaction All and all, its worth it Environmental employees are more connected to their employers in terms of the emotional motivators than the average employed Canadian. They are 23 points above the benchmark when it comes to trust and 13 points above for being proud to work for their employer. The results for the rational motivations are mixed. Environmental employees report higher job satisfaction, but are less likely to agree or strongly agree that All and all, I would say it is worth it for me, my family, and my career to work here. Remuneration and job security appear to be concerns for environmental employees.

Engagement Segmentation among Environmental Employees

Engagement Segmentation Among Environmental Employees Strategic Switchers Committed DisgruntledDetached Engagement Level Less than Fully Engaged Fully Engaged* <3 Years3+ Years Years Expect to Stay With Your Company Fully engaged and plan to stay with their current employer for three years or longer. Environmental employees have a greater tendency to fall into the Strategic Switchers segment. They are fully engaged, however they do not plan to stay with their current employer. Compared to the workforce overall, environmental workers are less likely to be: Disgruntledless engaged employees that do not plan to stay at their current employer; or, Detachedemployees that plan to stay with their employer even though they are not fully engaged.

Age Out of all 3 generations, Baby Boomers are most likely to be in the Committed segment A higher Proportion of Millenials are disgruntled. Generation X employees are as likely as Millenials to be Strategic Switchers. Strategic Switchers Committed DisgruntledDetached

Level of job responsibility Strategic Switchers Committed DisgruntledDetached Engagement tends to increase with increased level of responsibility

Career Paths Segmentation Employees managing people or projects tend to be the most Committed employees. Subject Matter Experts, Technologists and Technicians tend to be Strategic Switchers or Detached Strategic Switchers Committed DisgruntledDetached

those working for smaller companies are more likely to be Strategic Switchers, perhaps due to a perceived lack of opportunity for advancement within a smaller organization. Number of Employees Canada wide Those employed by large organizations (over 1,000 employees) are more likely to be Detached. Strategic Switchers Committed DisgruntledDetached The proportion of committed employees is similar across different- sized organizations at around one-half

Attributes of Environmental Employee Engagement in Canada

Attributes and key drivers of engagement The attributes of employee engagement are characteristics that differentiate engaged employees from those that are not engaged. These include characteristics such as commitment to their employer, recommending their employer as a good place to work and willingness to expend discretionary effort. The key drivers are those attributes which are strongly related to individual employees levels of commitmentthe attitudes and behaviours that are likely to characterize engaged employees, and are usually not characteristics of uncommitted workers.

n/a Corporate Culture and Communications % Disagree/ Strongly Disagree % Strongly Agree/ Agree n/a My employer demonstrates integrity, for example by being against bribery, corruption and human rights abuses. I trust the leadership of my company. My companys staff are ready and willing to adapt to change. Environmental employees hold positive opinions of their employers corporate culture and communication attributes. The highest rated attributes are demonstating integrity, and having a safe and healthy work environment. I have a safe and healthy work environment.

n/a Corporate Culture and Communications % Disagree/ Strongly Disagree % Strongly Agree/ Agree n/a My employer is an environmentally responsible organization. My work and my employers goals align with my personal values. My employer demonstrates corporate philanthropy, including encouraging employees to take part in fundraising and other activities to benefit others. Sufficient effort is made to obtain the opinions of employees. My work and my employers goals align with my personal values is a key driver of overall engagement for environmental employees.

Commitment to results % Disagree/ Strongly Disagree % Strongly Agree/ Agree I have a clear understanding of how my work contributes to achieving my companys overall goals. The employees I work with cooperate to get the job done. My department has a clear understanding of our customers needs (note: your customers may be internal or external). There are usually enough employees in my department to handle the workload. Im motivated to do more than what is required for my job. Discretionary effort – being motivated to go above and beyond job expectations – is a key driver in engagement.

Management Effectiveness - Contribution % Disagree/ Strongly Disagree % Strongly Agree/ Agree I feel encouraged to come up with new and better ways of doing things. My immediate supervisor demonstrates interest in my well being. My immediate supervisor understands the realities and circumstances that I experience in my job. My contribution is valued by my employer. Environmental employees are more likely to perceive that they are effectively managed than is the norm. They are especially likely to feel that their employer values their contribution (a key factor for engagement), and to feel encouraged to come up with new and better ways of doing things.

Management Effectiveness - Recognition % Disagree/ Strongly Disagree % Strongly Agree/ Agree My immediate supervisor provides the necessary objectives and direction. My immediate supervisor provides me with regular positive feedback and suggestions for improvement if necessary. When I do a good job, my performance is recognized. Employees in my department who perform poorly are appropriately managed.

Training and Development I am given opportunities and encouraged to learn or train to improve my skills. I believe that I have the opportunity for growth and development at my company. My company is doing a good job of developing its people to their full potential. % Disagree/ Strongly Disagree % Strongly Agree/ Agree Doing a good job of developing its people to their full potential is the top Training and Development priority, as it is a key driver of engagement.

Treatment, Balance and Respect % Disagree/ Strongly Disagree % Strongly Agree/ Agree I am not personally subject to sexual, racial or any other kind of harassment from my companys employees or customers. I am able to maintain a healthy balance between my work and personal life. Employees are treated with dignity, respect and fairness regardless of their position of background. I feel that I am treated fairly at my company. The amount of work that I am expected to do is reasonable. n/a Environmental employees are above average when it comes to work-life balance, having an employer that treats employees with dignity, respect and fairness, and feeling that they are fairly treated.

Job Satisfaction % Disagree/ Strongly Disagree % Strongly Agree/ Agree n/a I understand the role and responsibilities of my job. I have enough flexibility in my job to provide good service to my customers. I like the people with whom I work. My work is satisfying because it contributes directly to a better community/environment /world.

Job Satisfaction n/a % Disagree/ Strongly Disagree % Strongly Agree/ Agree My job gives me the chance to do challenging and interesting work. My job gives me a feeling of accomplishment. I am proud to work at my company. I feel a strong sense of commitment to my company The 5 key aspects of Job Satisfaction – those which have the greatest impact on employee engagement – are: Feeling of accomplishment Feeling committed to employer Pride Willingness to recommend company as a good place to work Over satisfaction

Job Satisfaction n/a % Disagree/ Strongly Disagree % Strongly Agree/ Agree I would recommend my company as a good place to work. My work is near where I live or in a place I like to live in. Considering everything, how satisfied are you with your job?

Job Security, Remuneration. Benefits % Disagree/ Strongly Disagree % Strongly Agree/ Agree I am paid fairly for my duties, responsibilities and performance. All and all, I would say it is worth it for me, my family and my career to work here. I feel secure in my job Although environmental employees are more positive about many aspects of their jobs as compared to the Canadian workforce in general, this is not the case when it comes to the key elements of job security, and remuneration.

Job Security, Remuneration. Benefits % Disagree/ Strongly Disagree % Strongly Agree/ Agree How do you rate your benefits program/package overall? n/a How do you rate your incentive programs or bonus systems? Environmental workers are fairly positive in their assessment of their benefits program or package, with 70% rating it as excellent or good. They are less enthusiastic about their incentive/bonus system, with only 46% rating it as excellent or good.

Key drivers of engagement Key drivers that employers can directly impact include: Demonstrating that employee contributions are valued Recognizing good performance Developing employees to their full potential Treating employees fairly Actions or communications to enhance sense of job security

How can employers increase engagement?

Difference of Key Drivers of Engagement for Large and SMEs (in order of the strength of the correlation with overall engagement) Small and Medium Employers (Less than 100 employers) Base: 309 I would recommend my company as a good place to work. My contribution is valued by my employer. I am motivated to do more than what is normally required for my job. I am proud to work at my company. Overall job satisfaction. My job gives me a feeling of accomplishment. I feel a strong sense of commitment to my company. I feel that I am treated fairly at my company. Large Employers (100 employees or more) Base:665 I would recommend my company as a good place to work. My contribution is valued by my employer. I am motivated to do more than what is normally required for my job. I feel a strong sense of commitment to my company. I am proud to work at my company My job gives me a feeling of accomplishment. Overall job satisfaction. I feel that I am treated fairly at my company.

Focus on communications and activities that support in employees a sense of fair treatment increased feelings of accomplishment pride commitment to the organization Employees of large organizations find value in being recognized for their contributions. Large Employers – increase engagement

The drive for employees to go above-and-beyond expectations in large organizations is related to Feelings of commitment to their employer The willingness to recommend their employer Feeling a sense of accomplishment in daily work Leverage these feelings by ensuring employees feel their workload as reasonable fairly treated able to maintain work-life balance flexibility in providing customer service

Large Employers – increase engagement Employees of large organizations find value in being recognized for their contributions. This is supported by an employer: recognizing good performance encouraging strong, positive relationships with employees and their supervisor providing opportunities for employee learning and growth

Small to Medium Employers – increase engagement Focus on communications and activities that support an employees ability to: Understand customer needs Understand employer goals Brainstorm new and improved methods of productivity Access opportunities for training and development

Small to Medium Employers – increase engagement Employees of SMEs find value in contributing to a larger cause. Support this by action and communication that emphasizes trust making an effort to hear employee opinions maintaining open, honest communication ensuring employees feel treated with dignity, respect and fairness encouraging work-life balance

Compared to large organizations, SMEs are doing a better job of valuing employee contributions and encouraging outside-the-box solutions.

Key Recommendations for Large Organizations Ensure Workloads are reasonable Employees feel fairly treated Employees have a strong sense of recognition and accomplishment

Key Recommendations for SME Organizations Ensure Employees feel fairly treated Employees have flexibility to provide good customer service Employees maintain a work/life balance

Overall Recommendations for all organizations Leverage key attributes by ensuring A feeling of accomplishment and recognition for good performance A feeling of fair treatment for all staff Employees can access opportunities to develop themselves to their full potential Alignment of work, employer and personal goals.

For more information contact: Chris Stewart (403)