Building Engagement Through Leadership Northwest Human Resource Council April 10, 2014

Today’s Objectives Review the current state of engagement / engaged employees Know the 4 drivers of engagement and how to leverage each Understand the leader’s role in engagement Discuss HR’s role and how we might incorporate the drivers of engagement

Agenda How We Doing? Current State of Employee Engagement What’s Going On? Environmental Factors Impacting EE What / How Do We Build Engagement? –The Four Drivers of Engagement Leader’s Role Opportunities / Barriers HR Role Where Do We Go From Here?

Engagement Defined: The extent to which employees commit to something or someone in their organization and how hard they work and long they stay as a result of that commitment Corporate Executive Board

How We Doing?

How’s Important is Engagement? 53% - Important 26% - Urgent

How Ready are We? 52% - Somewhat Ready 30% - Not Ready

What’s Going On? Environmental Factors Impacting Employee Engagement

What’s Going On? Economy – Recession Rise of the Millennials Positive Psychology Gets Its Due INVASION

Recession - What’s the Impact?

" Your ability to attract, develop, and retain young leaders will make or break your company in the coming years.” -Job Hopping Is the 'New Normal' for Millennials, Forbes.

Millennials - Largest segment of U.S. labor force and will continue to grow. 13 Source: Bureau of Labor Statistics and Virtuali analysis. 71.8M +30% 38.1M -28% U.S. Labor Force by Generation

Millennials change jobs frequently 14 91% of Millennials leave their jobs after 3 years. 1 $24,000 The average per employee cost of Millennial attrition but can be % of annual salary. 2, 1 in 2 HR execs believe that retaining top talent and developing the next generation of corporate leaders will be the greatest future HR challenges. 4

Millennials change jobs in pursuit of personal and professional growth. “Learning opportunities are an employers’ #1 most important asset.” 5 15 “I want the opportunity to work overseas.” 6 “Flexibility is one of an employer’s most important benefits.” 7 What do Millennials look for in an employer? 33%71%62%

“Millennials approach work as an experience… to learn, experiment, gain experience and become more well- rounded.” -What is Work to a Millennial?, Chief Learning Officer Magazine.

Target – Behavior and Attitudes 17 Prioritize time with friends Seek experiences Want freedom vs control (my time vs obligation) Seeking more Behavior Attitudes Value original thinking and carving own path Seeking authenticity

“ Employees today (particularly Millennials) are looking for employers that inspire passion and allow them to fulfill their professional, personal, and social goals.” -Global Human Capital Trends 2014: Engaging the 21 st -Century Workforce, Deloitte University Press.

Positive Psychology

EXTRINSIC to INTRINSIC

What / How Do We Build Engagement?

Four Drivers of Engagement Autonomy Mastery Meaning Membership

Four Drivers of Engagement Leader’s Role Opportunities / Barriers HR Role

Four Drivers of Engagement Edward Deci Daniel Pink Rosabeth Moss Kanter

Autonomy

“To act in accord with one’s self” – DeCici Autonomy = Empowerment Not Autonomous = Control

“The ultimate freedom for creative groups is the freedom to experiment with new ideas. Some skeptics insist that innovation is expensive. In the long run, innovation is cheap. Mediocrity is expensive – and autonomy can be the antidote.” Tom Kelley, General Manager, IDEO

Autonomy – Leader’s Role Use non-controlling language Google – 20% / “FedEx Off-Site” 4 T’s: –Task –Time –Technique –Team

Autonomy – HR’s Role Autonomy Audit’s –How much autonomy do you have at work – your main responsibilities / tasks and what you do in a given day? –How much autonomy do you have over your time at work – for instance, when you arrive, when you leave, and how you allocate your hours each day? –How much autonomy do you have over your team at work – to what extent are you able to choose the people with whom you typically collaborate? –How much autonomy do you have over your technique at work – how you actually perform the main responsibilities of your job?

Mastery

“ CFO asks CEO: “What happens if we invest in developing our people and they leave?” CEO: “What happens if we don’t and they stay?” Peter Baekland – Resourceful Leadership

Mastery “Desire to get better and better at something that matters” Not Training Not just “10,000 hours”

Mastery – Leader’s Role Facilitate Experience – Coach / Mentor –Allow for mistakes –Feedback 3 Set a “Learning Goal” Develop to Strengths

© StrengthsTest.com. All Rights Reserved. Focus on Strengths? Focusing on strengths, rather than weaknesses, removes disengagement from teams. Impact of Strengths-Focus on Disengagement Focus on StrengthsFocus on Weaknesses 22 of 100 disengaged 1 of 100 disengaged Source: Gallup Organization; StrengthsFinder 2.0

Strengths Based Development Teams who pursue strengths-based development realize a increase in engagement levels… Employee Engagement No strengths-based development With strengths-based development 10x increase Intent-to-Stay No strengths-based development With strengths-based development 2.3x increase …and retention of team members. Source: Gallup Organization; StrengthsFinder 2.0

Mastery – HR’s Role Make development part of the job Development plans focus on Strengths Offer broad experiences

Meaning

Autonomous People with Mastery = High Performance Autonomous People with Mastery and Purpose can change the world

“As an emotional catalyst, wealth maximization lacks power to fully mobilize human energies” Gary Hamel

“Companies Struggle to Instill Passion and Purpose”

Meaning “A purpose – a cause greater and more enduring than ourselves” It’s the Work “…not just Millennials…”

Meaning – Leader’s Role Avoid the Language of Management Micro-Soft CEO It’s...Experiential...Personal... Conversational... people pursue purpose in their own terms

Meaning – HR’s Role Repeat, reinforce a larger purpose – emphasize positive impact of work Allow people to pursue purpose in their own terms Humanize Performance Management Process

Membership

“Create community by honoring individuality” “Best Friend at Work” Bring whole person to work

Membership – Leader’s Role Build relationships Listen... Facilitate teamwork / collaboration

Membership – HR’s Role Facilitate opportunities for people across the organization to meet Give team members tools to connect –Leader Assimilation –Preference Assessment / Profiles

Where Do We Go From Here?

Change Our Engagement Approach FROM : a.HR driven b.Extrinsic Focus c.Formal – Yearly – Organizational surveys TO : a.Leader lead – Confidence + Authentic b.Intrinsic Focus c.Informal – Daily – Individual / Team conversations

Today’s Objectives Review the current state of engagement / engaged employees Understand the leader’s role in engagement Know the 4 drivers of engagement and how to leverage each Discuss how to incorporate the drivers of engagement and HR’s role

Companies Say No to Having an HR Department Employers Come Up With New Ways to Manage Hiring, Firing and Benefits

A P P E N D I X

Endnotes 54 1.Millennials Will Soon Rule The World: But How Will They Lead?, Forbes: The Cost of Millennial Retention Study, Millennial Branding and Beyond.com: Retaining Talent: A Guide to Analyzing and Managing Employee Turnover, SHRM: The Top Workplace Trends According to HR Professionals, SHRM: Multi-Generational Worker Attitudes, Millennial Branding and Monster.com: Millennials at work: Reshaping the workplace, PricewaterhouseCoopers: Workplace Survey Shows Patterns in Flex Options, Moms Corp.:

55 DESIRE FOR AUTHENTICITY DIGITALIZATIONDIGITALIZATION FEMINIZATION OF CULTURE ECONOMIC PRESSURES DEATH OF THE ALPHA MALE EMERGING ADULTHOOD CONTEMPORARY FRIENDSHIP Contemporary friendships are shaped by myriad contextual factors... ‣ Social, economic and demographic shifts challenge guy’s ability to connect…making it even more important to take time to foster the bonds of friendship LDA MILLENNIALS DESIRE TO LIVE AN AUTHENTIC LIFE... AND THEIR FRIENDSHIPS ARE NO EXCEPTION FRIENDS RELY ON EACH OTHER FOR SUPPORT AND GUIDANCE MOBILE TECHNOLOGY AND SOCIAL NETWORKING PLATFORMS ENCOURAGING LESS FACE TO FACE INTERACTION MALE FRIENDSHIP GROUPS ARE MORE EXPRESSIVE, SUPPORTIVE AND EMOTIONAL AS A RESULT OF GENDER EQUALITY AND FLUIDITY... FRIENDS ARE MUCH MORE COLLABORATIVE AND INTER- DEPENDENT THE RECESSION HAS PLACED PRESSURE ON GUYS…FRIENDS ARE NEEDED TO RELEASE THIS PRESSURE

Go! provides the experience that Millennials are looking for in a turnkey and scalable package. 56 Go! is an international immersion and leadership development program for “emerging leaders.” Its key characteristics are: Employees live abroad for 30 days. 60-day curriculum tailored to emerging leaders. Employees continue to work remotely in their current job. Includes full suite of relocation services. International Immersive Flexible Turnkey