The engagement equation Tom Barry November 2008

 2008 BlessingWhite, Inc. All Rights Reserved / 2 THE EMPLOYEE ENGAGEMENT EQUATION As much as $350 billion is lost annually due to lower productivity from actively disengaged workers Gallup Management Journal Highly engaged firms experienced growth of 28% compared to an 11% decline in disengaged firms Towers Perrin One company saved $1,721,760 in one year by strengthening employee engagement SHRM Report Why engagement?

 2008 BlessingWhite, Inc. All Rights Reserved / 3 THE EMPLOYEE ENGAGEMENT EQUATION Employee Engagement and Brand Engagement….. of customers leave because of poor employee attitude Source: Parkington and Buxton, Study of the US Banking Sector, Journal of Applied Psychology 68% Source: MCA Brand Ambassador Benchmark of customers are loyal because of a good employee attitude 41% of customer brand perception is determined by experiences with people Source: Ken Irons, Market Leader 70%

 2008 BlessingWhite, Inc. All Rights Reserved / 4 THE EMPLOYEE ENGAGEMENT EQUATION Agenda How do we define engagement? Who’s engaged and who’s not? What’s the link between engagement and retention? What are employees looking for? What is the role of leaders? So, what are the issues for HR and Trg & Dvt? –What can we do?

 2008 BlessingWhite, Inc. All Rights Reserved / 5 THE EMPLOYEE ENGAGEMENT EQUATION About our study 4 th study in the series Global online survey – 7,508 respondents – 9% from Europe 40 interviews –HR leaders –Line leaders

 2008 BlessingWhite, Inc. All Rights Reserved / 6 THE EMPLOYEE ENGAGEMENT EQUATION Global respondent profile 44% North America 9% Europe 3% China 32% India 6% Australia/ SE Asia 49% Supervisor or above 27% Gen Y, 40% Gen X, 31% Baby Boomers 60/40 Male/female Mix of industries and functions 7,508 respondents

 2008 BlessingWhite, Inc. All Rights Reserved / 7 What do we mean when we say… … ‘employee engagement’?

 2008 BlessingWhite, Inc. All Rights Reserved / 8 THE EMPLOYEE ENGAGEMENT EQUATION organisation Success Values, Goals, Strategy Individual Maximum Satisfaction Maximum Contribution JOB Engaged employees are enthused and in gear THE APEX

 2008 BlessingWhite, Inc. All Rights Reserved / 9 THE EMPLOYEE ENGAGEMENT EQUATION The state of engagement Maximum Satisfaction Maximum Contribution 23% The Engaged 26% The Almost Engaged 14% The Crash & Burners 15% The Honeymooners & Hamsters 22% The Disengaged UK & Ireland Data

 2008 BlessingWhite, Inc. All Rights Reserved / 10 THE EMPLOYEE ENGAGEMENT EQUATION The state of engagement – ICBE Maximum Satisfaction Maximum Contribution 37% The Engaged 16% The Almost Engaged 11% The Crash & Burners 21% The Honeymooners & Hamsters 16% The Disengaged ICBE Data

 2008 BlessingWhite, Inc. All Rights Reserved / 11 THE EMPLOYEE ENGAGEMENT EQUATION Summary ICBE v UK/Ireland Maximum Satisfaction Maximum Contribution 37% v 23% 16% V 26% 11% V 14% 21% V 15% 16% V 22% ICBE Data Where are you?

 2008 BlessingWhite, Inc. All Rights Reserved / 12 THE EMPLOYEE ENGAGEMENT EQUATION A global view Global Data n = 7,508

 2008 BlessingWhite, Inc. All Rights Reserved / 13 THE EMPLOYEE ENGAGEMENT EQUATION A generational view UK & Ireland Data

 2008 BlessingWhite, Inc. All Rights Reserved / 14 THE EMPLOYEE ENGAGEMENT EQUATION How is engagement different in turbulent times?

 2008 BlessingWhite, Inc. All Rights Reserved / 15 THE EMPLOYEE ENGAGEMENT EQUATION Where are most of your employees? Maximum Satisfaction Maximum Contribution 23% The Engaged 26% The Almost Engaged 14% The Crash & Burners 15% The Honeymooners & Hamsters 22% The Disengaged UK & Ireland Data

 2008 BlessingWhite, Inc. All Rights Reserved / 16 In 2008… …will they stay or will they go?

 2008 BlessingWhite, Inc. All Rights Reserved / 17 THE EMPLOYEE ENGAGEMENT EQUATION Engagement & retention 16% “Yes, definitely” 47% “Probably” 37% “No Way” 31% “Yes, definitely” 54% “Probably” 15% “No Way” 76% “Yes, definitely” 22% “Probably” <1% “No Way” “Assuming you have a choice, do you plan to stay through 2008?” Maximum Satisfaction Maximum Contribution UK & Ireland Data 58% “Yes, definitely” 37% “Probably” 5% “No Way” 40% “Yes, definitely” 44% “Probably” 16% “No Way”

 2008 BlessingWhite, Inc. All Rights Reserved / 18 What do employees need… …to increase their satisfaction and contribution?

 2008 BlessingWhite, Inc. All Rights Reserved / 19 THE EMPLOYEE ENGAGEMENT EQUATION Common factors To increase satisfaction: 1.More opportunities to use talents 2.Career development & training UK & Ireland Data Maximum Satisfaction Maximum Contribution Other options: A better relationship with my manager Improved cooperation among my coworkers Greater clarity about what the organisation needs me to do – and why More challenging work More say in how my work gets done Greater clarity about my own work preferences and career goals

 2008 BlessingWhite, Inc. All Rights Reserved / 20 THE EMPLOYEE ENGAGEMENT EQUATION Common factors Maximum Satisfaction Maximum Contribution To increase contribution: 1.Regular, specific feedback 2.Greater clarity about what org needs, why and a coach or mentor other than my manager (tied) Other options: A better relationship with my colleagues Development opportunities and training Better communication with my manager More resources UK & Ireland Data

 2008 BlessingWhite, Inc. All Rights Reserved / 21 How do leaders fit in?

 2008 BlessingWhite, Inc. All Rights Reserved / 22 THE EMPLOYEE ENGAGEMENT EQUATION ICBE Comparison: Trust ICBE Data

 2008 BlessingWhite, Inc. All Rights Reserved / 23 THE EMPLOYEE ENGAGEMENT EQUATION “I trust senior leaders” UK & Ireland Data

 2008 BlessingWhite, Inc. All Rights Reserved / 24 THE EMPLOYEE ENGAGEMENT EQUATION “I trust my manager” UK & Ireland Data

 2008 BlessingWhite, Inc. All Rights Reserved / 25 THE EMPLOYEE ENGAGEMENT EQUATION “My manager encourages my talents” UK & Ireland Data

 2008 BlessingWhite, Inc. All Rights Reserved / 26 THE EMPLOYEE ENGAGEMENT EQUATION In your packs.. Action Plan (p13) 3 actions I will take to engage myself 1 action I will take with a specific team member

 2008 BlessingWhite, Inc. All Rights Reserved / 27 So what… …do organisations need to do?

 2008 BlessingWhite, Inc. All Rights Reserved / Survey less, act more..or “Why measure with a micrometer if you implement with a sledgehammer?”

 2008 BlessingWhite, Inc. All Rights Reserved / 29 THE EMPLOYEE ENGAGEMENT EQUATION Survey less, act more Take the pulse. –Who’s engaged –Who’s not –Why Look for trends and actionable insights. Tailor programmatic strategies. Equip and hold leaders accountable. organisation Success Individual Maximum Satisfaction Maximum Contribution

 2008 BlessingWhite, Inc. All Rights Reserved / 30 THE EMPLOYEE ENGAGEMENT EQUATION Align, align, align Start at the top. Communicate strategy constantly –Keep it fresh –Show the math Translate into day to day priorities –Make it a 2 way dialogue Use technology to enable. organisation Success Individual Maximum Satisfaction Maximum Contribution

 2008 BlessingWhite, Inc. All Rights Reserved / 31 3 – Redefine “Career” “I always wanted to be somebody… …but now I realize I should have been more specific.” - Lily Tomlin

 2008 BlessingWhite, Inc. All Rights Reserved / 32 THE EMPLOYEE ENGAGEMENT EQUATION Redefine ‘Career’ Clarify what ‘career’ looks like in your organisation. Communicate roles for the organisation, employees, managers. Help employees determine what they want. –57% of employees don’t know what they want to do next. Provide examples, resources, tools. –How do you communicate promotions? Make development a priority. organisation Success Individual Maximum Satisfaction Maximum Contribution

 2008 BlessingWhite, Inc. All Rights Reserved / 33 THE EMPLOYEE ENGAGEMENT EQUATION Leverage managers Find out if your managers at all levels are engaged. Equip managers to “connect the dots.” –Coaching for career and performance. Hold managers accountable for organisational values and team development, not just results. Remove “bad managers.” organisation Success Individual Maximum Satisfaction Maximum Contribution Leaders

 2008 BlessingWhite, Inc. All Rights Reserved / 34 THE EMPLOYEE ENGAGEMENT EQUATION Pay attention to culture Make sure senior leaders set the tone. –Clarifying values, standards of behavior. –Walking the talk. –Communicating strategy. Align systems. Keep investing in your managers. organisation Success Individual Maximum Satisfaction Maximum Contribution

The engagement equation Tom Barry November 2008