International Conference “ АDDRESSING QUALITY OF WORK IN EUROPE”, October 2012 Employees` engagement – effects on business performance and main drivers Gergana Gancheva, PhD Candidate, SU”St.Kliment Ohridski”,

210/18/2012 Contents 1. Main Research Questions and Research Database – details 2. Employee Engagement (EE) concept 2.1. Theoretical background 2.2. Employee engagement VS Other Constructs 2.3. AONHewitt definition of EE 3.EE – impact on company performance 4.EE and quality of work 5.Results and trends for Bulgaria Conclusion

310/18/ Main Research Questions & Research database 3

410/18/ Research Questions and database Does and How EE reflects on the overall company performance and other business metrics? Which factors from the working environment have impact on employee engagement? How organizations in Bulgaria improve the level of engagement of their employees? What are the drivers that influence employee performance in the recent years in Bulgaria? 360 Bulgarian companies, 13 industries employee opinions gathered 587 top managers 4 consecutive years

510/18/2012 The Measurement Scale Agreeing respondents Positive hesitants Negative hesitants Disagreeing respondents Completely satisfied SatisfiedRather satisfied Rather not satisfied Not satisfied Not satisfied at all Totally agreeAgreeRather agreeRather not agreeDisagreeTotally disagree Opinions were measured on a scale of 6 (1= I absolutely do not agree, 6= I totally agree), so as to force even those to voice an opinion for whom it is harder to explain/voice what they think. Section: About the Study

6[MM/DD/YYYY] 2. Employee Engagement (EE) concept 6

710/18/ Theoretical background 1. Academics – Kahn, Macey, Schaufeli 2. Business/Management perspective 3. Employees perspective

810/18/ EE VS Other Constructs Organisation al Citizenship Behaviour (OCB) Organisational commitment InvolvementDedication Employee satisfaction Engagement Employee motivation

910/18/ AonHewitt definition of Engagement(1) SATISFACTION Do people like working for this company? COMMITMENT Do employees want to contribute to the success of the company? AONHewitt ENGAGEMENT Employees do want to contribute to the success of the company, and they really act upon that?

1010/18/ Engagement is a behavior… Engagement is the state of emotional and intellectual involvement that motivates employees to do their best work.

1110/18/ Three key behaviors cumulatively indicate strong Engagement: Employees consistently speak positively about the organization to co-workers, potential employees and most critically, customers (current and potential) Employees have an intense desire to be a member of the organization Employees exert extra effort and engage in work that contributes to business success SAYSTAYSTRIVE 2.3. AonHewitt definition of Engagement(cont.)

1210/18/ EE – impact on company performance 12

1310/18/ Does Engagement Really Drive Business Results? We have identified strong and consistent links between engagement and performance measures: – Productivity and retention – Employee commitment, in-role and extra-role behavior – Customer satisfaction and loyalty – Performance – Quality – General financial results - as profitability, revenue growth, earnings per share Multiple lines of evidence demonstrate and support this link: – Cross-Company and Employee Engagement and Motivation research – Academic research – Case studies

1410/18/ Does Engagement Really Drive Business Results? (cont.) % of organisations 26% 28% 21% 26% 30% 9% 18% Productivity Employee turnover Absenteeism Retention of key talent 180° / 360° manager feedback Financial indicators Customer satisfaction or loyalty 41% Source: Aon Hewitt Future of Engagement Study May 2010 What links have you established to employee engagement?

1510/18/ EE – impact on quality of work 15

1610/18/ EE and quality of work …understand the organization’s objectives and their role …passionate and enthusiastic about their work …have a strong desire to be part of the organization …motivated to go above and beyond in their jobs …have significantly better outcomes Engaged employees

1710/18/ EE and quality of work(cont.) Employee Value Proposition Total Reward Senior Leadership 1.Organization is considered a best place to work 2.Organization delivers on promises to employees 3.Support learning and development of employees 1.Benefit plan meets needs well 2.Recognition for accomplishments 3.Future career opportunities 4.Paid fairly Strong Senior Leaders Enabling Performance 1.Tools and resources to support productivity 2.Work processes support productivity

1810/18/ Managing Engagement among Bulgarian employees 18

1910/18/2012 Bulgarian employees High Satisfaction Physical Work environment Colleagues and the support they get from them Quality of the work equipment

2010/18/2012 Bulgarian employees Low Satisfaction Career opportunities Pay and benefits Senior Leadership

21[MM/DD/YYYY] Thank you! 218/15/2007