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SHRM Thought Leaders Retreat October 2006 Presented by: William A. Schiemann CEO, Metrus Group
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Title
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Desired Learning – Measuring Engagement “Tools for measuring engagement and for impacting the drivers” “Actual metrics used by successful companies”
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Desired Learning: Linkage “Effective ways to link engagement to manager performance” “Metrics that demonstrate the link between engagement and business results” “How to be able to use (metrics) within a scorecard that is used by company executives”
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Desired Learning: Building Buy-In “Prevent engagement from becoming the “flavor of the month”” “Engage those who have not bought into the concept of engagement” “Connect managers with their responsibilities for employee engagement”
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Desired Learning: Implementation “Rapidly increase and sustain high levels of engagement” “Better tapping into the mindset of Gen X and Gen Y” “Develop a successful employee engagement strategy” “Cost/resources efficient and effective practices”
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Pre-Conference Survey 49% 52% 40% 42% 71% 50% 24% 17% 29% 21% 11% 22% 27% 31% 37% 18% 28% FavorableNeutralUnfavorable Strategic measures in place for people strategy Measuring engagement Measuring employee alignment with strategy Measuring capabilities to execute strategy Engagement a key metric on Corporate Scorecard Engagement linked to business outcomes
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The Power of Measures Engagement linked to business outcomes Senior leadership is convinced of the value of engagement Over the last three years Employee Engagement at our organization has increased 0%20%40%60%80%100% Strategic measures in place for People Strategy Strategic measures NOT in place
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Who Gets Funded? Have a clear People Strategy Measuring employee alignment with strategy Engagement linked to business outcomes Engagement a key metric on Corporate Scorecard 0%20%40%60%80%100% HR Gets Fair Share of Budget HR Gets Less Than Fair Share
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What Differentiates Companies Where Engagement Is Growing? Have a clear People Strategy Measures in place for People Strategy Linked to business outcomes Leadership convinced of value Engagement on Corporate Scorecard 0%20%40%60%80%100% Engagement increased significantly in past year Engagement flat or decreasing
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Typical Low People Equity Profiles
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Typical High People Equity Profiles
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Biggest Barriers to Improving Engagement Culture/attitudes - 24% Understanding - 22% Measurement - 20% Resources - 14% Leadership - 14% Other - 6%
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Barriers Culture/Attitudes “As the workforce changes, old methods of connecting and engaging aren’t as effective” Understanding “Helping managers understand they play a key role in employee engagement & retention” Measurement “Reliance on financial measures over true people engagement measures” Resources “Time to do it right” Leadership “Lack of a clear corporate strategy”
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“Selling” Engagement Linkage to Business Outcomes –“Grab them by their P&L's and their hearts and minds will follow” –“We had a compelling reason to change. Our financials and customer service were horrible.” –“ROI” –“Demonstrating the link to business strategies and identifying the right metrics” –“Organizational survey results reflected employee engagement as a primary driver of intent to stay” –“Linkage to guest satisfaction and financial performance” –“Human capital as an asset not an expense”
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People Equity A A lignment Are we going in the same direction? C C apabilities Do we have what we need to succeed? E E ngagement Are we committed?
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