What’s Wrong with Employee Engagement?

Michael Netzley, PhD

6th July 2015

“ Just a one percent engagement improvement, for an organisation with a $750 million baseline operating income, can result in a $20 million increase to the bottom line.

Aon Hewitt study, 2014

§  Academic Director, SMU Executive Development

§  SMU faculty since 2002; 25 years in higher ed

§  2011 Champion’s Award, Innovative Course Design and Delivery

§  Editorial Board, Asian Management Insights

§  Founding Director, SMU Teaching Excellence Initiative

§  Author of numerous case studies and 4 books

§  Visiting positions in Argentina, Berlin, Finland, Slovenia, and Japan

§  Key clients include Unilever, IBM, IHG, Singapore Airlines, BNP Paribas, TCS, 3M, UOB, Singapore’s MFA & MoE, SingHealth, Raffles Medical, Schneider Electric, Sumitomo Chemical, Bosnalijek Pharmaceutical, Lundbeck Pharmaceutical, GSK Vaccines, and Bayer.

§  Daddy with 3 daughters & 1 son

Michael Netzley, Phd. 2014

Current State of Employee Engagement

2011-12 Employee Engagement Study 1 in 10 employees are actively engaged

Gallop, 2011-12

2013 State of Employee Engagement Data for SE Asia

Gallop, State of the Global Workplace, 2013

“ Over the past few years, we are seeing a global decline in employee engagement. Levels of engagement have stagnated at 2008 levels and are well behind the best performing companies – at the very point when organisations around the world need to deliver better performance.

Dr. Stephen Choo, Hay Group

Low Employee Engagement in 2014 A similar study finding similar results

Source: Kelly Global Workforce Index, 2014

Who Is Most Difficult to Engage?

Employee Engagement is a Challenge

§ Ranked 2nd most important issue on minds of HR leaders (behind leadership)

§ Engagement & building an enduring culture are critical

§  “Overwhelmed employee” one of the biggest challenges

Does any of this sound familiar?

Source: Predictions for 2015, Bersin by Deloitte

© 2014 IBM Corporation 11

RECOGNITION

This company values my contribution. This company recognizes productive

people. SUPPORT & INCLUSION

I feel supported in my efforts to adapt to organizational changes.

I feel that I am part of a team.

FUTURE / VISION I believe this company has an

outstanding future. The senior leadership of this company

has communicated a vision of the future that motivates me.

I can see a clear link between my work and this company’s objectives.

TRUST

I trust the leadership of this company. This organization shows a

commitment to ethical business decisions and conduct. COMMUNICATION

There is open and honest two-way communication at this company. My ideas and suggestions count.

GROWTH & DEVELOPMENT I have opportunities to advance in

this company. This company provides me with

opportunity for learning and development.

THE WORLD’S TOP DRIVERS OF

ENGAGEMENT

So What is Employee Engagement?

What is Employee Engagement?

§ Ability to harness employees’ personal enthusiasm in their work roles (Kahn, 1990)

§ Engaged employees feel “a strong emotional bond to their employer, recommending it to others and committing time and effort to help the organization succeed” (Quirke, 2008)

§  Individuals’ “involvement with, satisfaction with and enthusiasm for the work they do” (Robbins, Judge, Millett and Boyle, 2011)

Aon Hewitt Employee Engagement Model

Benefits of Employee Engagement

“ Organizations with a high level of engagement do report 22% higher productivity, according to a new meta-analysis of 1.4 million employees conducted by the Gallup Organization.

Gallop, 2013

“ Highly engaged organizations have double the rate of success of lower engaged organizations

Harvard Business Review, 2013

“ Top-quartile firms have lower absenteeism and turnover. Specifically, high-turnover organizations report 25% lower turnover, and low-turnover organizations report 65% lower turnover. 

Harvard Business review, 2013

Engagement Impacts Performance

48% Fewer Workplace

Safety Incidents

41% Fewer Quality

Incidents (i.e., defects)

People and products are better

Where to Begin?

Preferred Methods of Engagement Periodic contact comes first

Source: Kelly Global Workforce Index

Don’t Forget About Trust and Reputation! The Messenger Matters Greatly

Edelman Trust Barometer, 2014 33,000+ responses; 27 countries

Attend to What Other Employees Say The real issue is what others say about us, not what we say

Edelman Trust Barometer, 2014 33,000+ responses; 27 countries

Employees are a Skeptical Lot Thus less receptive to your messages

Edelman Trust Barometer, 2014 33,000+ responses; 27 countries

Employees Trust the CEO Less than Execs Do Factors helping and hurting organizational trust

Edelman Trust Barometer, 2014 33,000+ responses; 27 countries

Your Path Forward

Employee Engagement Checklist

1.  Are you even measuring the right things?

2.  Do implementation experts help you frame and present data in actionable ways?

3.  Do your planning processes link strategy to execution to employee engagement?

4.  Do you look at engagement during the hiring process (i.e., does this candidate have fuel remaining in the tank?)

5.  Have you made strategic use of corporate communication to embed a sense of purpose in our day-to-day work routines?

Specific action steps you can take

Critical Talent Imperatives for 2015 Guided path the the correct starting point

Source: Bersin by Deloitte, 2014

The Simply Irresistible Organisation Model Your desired destination

Source: Bersin by Deloitte, 2014