Employee Engagement: The Key to Organizational Success Ron Thomas Managing Director Strategy Focused Group Dubai, UAE

Opportunities for engaging the workforce* 63%: Employers feel strongly that their company is a “great place to work” 43%: Employees believe that this is true 65%: Employers feel that they are loyal to their employees 38%: Employees agree on loyalty 39%: Employees strongly hope that they will be working for another company in the next few years *MetLife Benefits Study

Opportunities for engaging the workforce* “Softer” areas such as culture and engagement, leadership, and development have become urgent priorities. Culture and engagement: This year, culture and engagement was rated the most important issue overall edging out leadership Business Challenge: Gain a clear understanding of their organization’s culture and reexamine every HR and talent program as a way *Deloitte Human Capital Trends 2015

Financial advantage A recent study by Tower Watson, found that companies with low engagement scores had an average operating margin under 10% Those with the highest "sustainable engagement" scores had an average one-year operating margin of 27% According to recent studies by MelCrum, 70% of all strategic and change initiatives fail, and the number one cause of that failure is the inability of leaders to evolve the mindset and attitudes of their employees

The Dollars and Sense of Engagement Engagement Level Distribution Performance delta over cost by engagement level Impact on Organizational Performance Level 4 Fully Engaged 12% 120% 14% Level 3 Engaged 40% Cost and value are equal Level 2 Somewhat Disengaged 39% 80% 31% Level 1 Actively Disengaged 9% 60% 6% Current Performance Potential 91%

Engagement Business Case: Costs of Poor Engagement Engagement Level Distribution Impact per Employee (combined salary 80K) Total Impact Based on 500 Employees Level 4 Fully Engaged 12% $16,000 positive $960,000 positive Level 3 Engaged 40% Cost and value are equal Level 2 Somewhat Disengaged 39% $16,000 negative $3,120,000 negative Level 1 Actively Disengaged 9% 32,000 negative $1,440,000 negative Current Impact $3,600,000 negative

Engagement Business Case: First Year Improvements Engagement Level Distribution New Distribution Total Impact based on 500 employees Level 4 Fully Engaged 12% 24% $1,920,000 positive Level 3 Engaged 40% 55% Cost and value are equal Level 2 Somewhat Disengaged 39% 19% $1,529,000 negative Level 1 Actively Disengaged 9% 6% $960,000 negative Current Impact $569,000 negative

Managers Drive Engagement Managers account for at least 70% of the variance in employee engagement scores across business units. *Gallup A manager’s leadership style was responsible for 30% of the company’s bottom-line profitability! *Daniel Coleman’s Leadership That Gets Results, Harvard Business Review study

Drivers of Engagement: Your Managers 35% of managers are engaged 51% are not engaged 14% are actively disengaged. 50% of employees have left their job to get away from their manager at some point in their career. Managers’ engagement has a direct impact on employees’ engagement. Employees who are supervised by highly engaged managers are 59% more likely to be engaged than those supervised by actively disengaged managers.

Great Managers Talent They motivate every single employee to take action and engage employees with a compelling mission and vision. They create a culture of clear accountability They make decisions based on productivity, not politics They have the assertiveness to drive outcomes and the ability to overcome adversity and resistance They build relationships that create trust, open dialogue and full transparency

Who is the manager? Organizations often put people in managerial roles for reasons that have nothing to do with their talent to manage. TOP TWO REASONS PEOPLE BECOME MANAGERS: “I was promoted because I was successful in a previous non-managerial role.” “I have a lot of experience and tenure in my company

The Disengaged Organization 1 Disengaged Leaders 2 Disengaged Managers 3 Disengaged Employees

The Engaged Organization 1 Engaged Leaders 2 Engaged Managers 3 Engaged Employees

Key to Organizational Success Start with your Leaders Proceed to your Managers Remember it has nothing to do with perks