Employee Engagement – Leveraging Leadership and Communications to make a Difference

This material and any accompanying remarks are provided for informational purposes only and VA State SHRM – April 30, 2014 Copyright 2014 Willis North America, Inc.

Why Employee Engagement Matters

1| Page TO WIN CUSTOMERS – and a bigger share of the marketplace – companies must first win the hearts and minds of their employees       Engaged companies outperform their competition 22% higher profitability 21% higher productivity 10% higher customer metrics 37% lower absenteeism 48% fewer safety incidents 41% fewer quality incidents (defects)

Definition of Employee Engagement

“A heightened emotional and intellectual connection that an employee has for his/her job, organization, manager, or coworkers that, in turn, influences him/her to apply additional discretionary effort to his/her work.” --The Conference Board

2| Page New Rules of Engagement – BI World Wide

Employee Engagement

Employees engage with their employer in four distinct ways: 1.

2.

Company – employees feel personal attachment, affiliation, passion toward the company as a whole Job employees value and feel personal involvement with their work and the tasks associated with their specific jobs 3.

4.

Supervisor/Leader leaders – employees feel personal attachment, commitment, and affiliation with their direct supervisors and higher level Colleagues/coworkers that they work with directly.

– employees value relationships and feel emotional attachment to the other members of their team or to colleagues 3| Page When it Comes to Employee Engagement, One Size Does Not Fill All, Cornell University CAHRS April 2013

Current State of Employee Engagement

   50% would like to leave their jobs, including 25% of best performers. (Right Management) 74% of departed employees cited a lack of employer engagement as their principal reason for leaving. (Harvard Business Review) Disengaged employees are 24% less likely to quit than engaged employees .

(Conference Board) 4| Page

Can you tell by looking?

Fully Engaged

(30%)

Partially Engaged

(50%)

Disengaged

(20%) 5| Page The Gallup Organization – 2013 State of the American Workplace Report

Engagement Categories

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Drivers of Engagement

In addition to

Transparency Openness

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So how can we move engagement levels?

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Leadership, Communications and Knowing your Workforce

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Top drivers of sustainable engagement among U.S. workers are

 Leadership  Stress, balance and workload  Goals and Objectives  Supervision  Organization’s image (more specifically your EVP) 10| Page 2012- 2013 Towers Watson Talent Management & Rewards Survey

1. Leadership

  Employee engagement starts at the top.

– Key driver is the actions of senior leaders • Leaders must demonstrate support for an engaged company culture by personally living their company’s values.

Best Practices from Best Employers – – Make Employee Engagement a Business Priority 6 out of 10 companies report Employee Engagement as the #1 objective of their people program investment 11| Page

Leadership

 Senior Leader Mindset: A. “Give ‘em an inch and they’ll take a mile” OR B. “If we give, they will give back.” A.

B.

Employee Engagement is desirable OR Employee Engagement is critical for our business success 12| Page

Leadership and Connecting with Employees

 Encourage senior management to be a part of the employees’ corporate life. – Install regular sessions where senior management speaks to all employees and create virtual ask your CEO — where employees are being heard.

CEO CORNER

•

Write to Dominic

•

Read Dominic’s Blog

•

Request a video, phone call or client visit with Dominic

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Leadership and Connecting with Employees

Communication: The Cornerstone of an Engaged Workforce Culture

“When leaders tell employees where they are going, why they’re going there and how they are going to get there – and when they provide appropriate levels of trust, recognition and empathy - productivity goes up.”

The Nine Principles of Service and Organizational Excellence

1. Commit to Excellence 2. Measure the Important Things 3. Build a Culture around Service 4. Create and Develop Leaders 5. Focus on Employee Satisfaction… 8. Communicate at all Levels 14| Page

How to Increase Belief In Leadership

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2. Relationship with Direct Manager

  Connect – Leaders must show that they value and respect their employees.

• If an employees’ relationship with their managers is fractured, then no amount of perks will persuade employees to perform at top levels.

Convey/Communicate – Good Leaders provide clarity around expectations, provide regular and routine feedback about performance (both individual and organizational) and what one needs to do to advance or take on new tasks/opportunities.

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7 Things Every Great Boss Should Do

       Acknowledge – let employees know they are doing a good job Motivate – set high standards and stick to them enlisting employee input Communicate – clearly, honestly and often Trust – believe your employees can meet or exceed organizational goals and support them in their endeavors Develop potential provide tools and training so as your employees can reach full Direct – challenge your employees but not overwhelm them Partner – create and cultivate a sense of camaraderie 17| Page

In simpler terms:

 Treat your employees right: – Respect (being sensitive to needs, desires and goals) – – – Objectives (set clear objectives involving them in the process) Awareness (increase awareness by providing feedback) Dialogue (on-going regular communications) ROAD 18| Page

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3. Communications – Leadership/Management

 Managers person-to-person, day to day interactions influence how they feel about their work environment, the value they create for the organization and their pay and growth opportunities.

 Their communications and interactions with their team needs to be cognizant of their workforce’s communication preferences and other characteristics to make this relationship a positive one.

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Adopt your Management Style – Find Opportunities to Connect/Convey & Motivate

 Emotional Intelligence – Blended Leadership 21| Page

Know your Workforce…

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Managing/Coaching Millennials

 Offer plenty of help  Create a collegial and team-oriented culture  Rewards for innovating and taking appropriate risks (Praise can be more powerful than money)  Checklists/guideposts/milestones —lots of feedback (Millennials mistake silence for disapproval)  Provide regular “developmental coaching” (Positive, forward –looking, skill building) 23| Page

How to increase Satisfaction with Immediate Supervisor

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Organization’s Image - Employee Value Proposition

Communication of the things that make your organization a great place to work is essential.

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Communications and HR Employees are ill informed…

    26| Page 41% of workers rely on word of mouth among friends for advice/info about benefits 16% of employees say they are not very informed about benefits offered at their company Only 25% of employees felt they received a lot of information about their compensation systems Only 46% were satisfied with the openness of their compensation programs/systems Sibson’s Rewards of Work Study

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Best Practice Example

Employee Value Proposition

At the Front Counter – Engaged and Committed Employees To identify McDonald’s EVP, they conducted an unprecedented effort to gather input from crew and managers. They received responses from nearly 10,000 restaurant employees from 55 countries about what they love most and least about working at McDonald’s. Identified key themes around ““People and Culture,” “Flexibility and Variety,” and “Development and Opportunity” Family & Friends – “I work in an enjoyable, energizing atmosphere where everyone feels part of the team.” Flexibility – “I have a challenging, varied job that has the flexibility to fit into my lifestyle.” Future – “I have an opportunity to grow and progress by learning personal and work skills that will last me a lifetime, whatever I choose to do.” 28| Page

HR Communications

 Do you believe your employees are paid fairly?

 Do you believe you are paid fairly?

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What information is shared within your entity regarding compensation?

 Salary Ranges  Incentive Programs  Managers also tend to share what it takes to – – – Expand an employees role Improve performance Obtain training 30| Page

Employee Communications

31| Page 2012 AON Hewitt Study

When it comes to Communication – one size definitely does not fit all

   Print Collateral – – Direct Mail Total Rewards Statements Face to Face Communications – – – Focus Groups Town Hall Meetings Benefit Fairs Electronic/Digital – – – – Internet/Intranet Email – Text Messaging Videos Social Media 32| Page

• • •

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generations in the work force with different: Thoughts and values Perspectives Ways of managing, communicating and problem solving

Know your workforce/audience

 Where they are located;  How long they’ve been employed;  Their job role;  Age and Gender, etc.

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Total Rewards and EVP Statements

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EVP Brochure

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Employee/Total Rewards Portals

“one-stop shop” for total rewards information

Available Courses Courses Completed Professional Development 37| Page

Print Collateral - Direct Mail

Sent to new hires as part of a welcome packet from the Chief Human Resources Officer.

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Electronic - Intranet and Internet

39| Page Campbell's compensation philosophy supports our Success Model. The foundation of the model — “Winning in the Workplace” — recognizes that our people drive profitability and our competitive advantage .

We understand that paying competitive wages is critical to attracting and retaining the talent we need to build a company that can produce extraordinary results and compete over the long term.

• • Our compensation program is market-based and performance-driven: Campbell conducts a comprehensive market analysis each year to ensure our compensation programs are competitive with the appropriate set of peer companies.

Employee performance is evaluated as part of Campbell's annual Performance Management process. Consistent with the Campbell Leadership Model, employees are evaluated and rewarded based both on what they do (results they create) and how they do it (behaviors they demonstrate ).

www.campbellsoupcompany.com

Engagement & Recognition We believe that our employees feel most valued when they are fully informed, understand the company's business goals and plans, and are invited to offer their feedback on a regular basis.

Research shows that engaged employees are more productive and profitable as well as more customer-focused, safer, and more likely to stay with the company. At Campbell, we firmly believe that employee engagement is one of the most important indicators of our ability to drive performance improvement and win in the workplace. In fact, every employee who participates in our Performance Management process must include a specific objective around engagement .

The Way We Work Building a safe, diverse, inclusive, engaged and socially responsible workplace that delivers business results with integrity

While we are continually looking for ways to leverage Campbell’s world-class engagement to drive sustainable business results, we believe employees feel most valued when they are: • • • • 40| Page Recognized and celebrated for their contributions Well-informed and aligned with how their work connects to the Company’s overall goals and plans Encouraged to bring their uniqueness to work each day Engaged in an ongoing dialogue that encourages the sharing and challenging of ideas Measures how Campbell’s overall Grand Mean score compares relative to Gallup’s overall database of respondents

Electronic –

Video Post Cards

    Unique way to engage employees (and applicants) Distributed via email to employees’ inboxes Views can be tracked and measured Can be viewed on smartphones 41| Page

Social Media

 Vehicle to share company information and get employees to talk, share information and collaborate.

– – Internal social media platforms allows employees to post presentations, ideas, etc. and receive instant feedback from other workers.

Examples • • Experience Forum – connects new hires with other new hires to share experiences or answer questions.

PepsicoConn3ct – LinkedIn group for young professionals within Pepsi.

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Targeted Communication Solution – Knowing your Audience

Social Media & Gen Y  40% check their cell phone every 10 mins   45% check social media as part of their daily routine Don’t block facebook at work – 56% won’t work at your company if you ban it!

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Formula for Communications Success

 Plan before you launch  Define objectives, identify key stakeholders, and create a strategy and plan of action.

  Stick to your message  Determine key messages at the beginning and communicate them consistently.

Make sure Managers/Supervisors are onboard  Don’t underestimate this group—they have influence over employees and can be advocates or barriers  Rinse and Repeat  Reinforce key messages multiple times and across a variety of media in a coordinated way . People are affected differently by different formats and messages.

 44| Page Measure the overall effectiveness of the initiative

In Closing…

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What are High Performing Companies Doing Differently?

    47| Page Increased leadership capabilities at all levels of the company – Leaders are accessible, visible and listen/encourage employee feedback Inspire trust and respect throughout the organization Connect today's work, initiatives, and changes with where the business is heading Communications is core to the culture – They commit to open, honest, regular communication – Employees understand the “why” behind their jobs – what they’re expected to achieve and why it’s important to the greater good of the organization.

Top performing firms cultivate engaging cultures

HR and Communications

• Organization • Culture • Mission/ Values Leadership “Great Company” • • People Talent Social Networks Compensation • Base • Variable/ Incentive “Great Rewards” • • Benefits Health & Welfare Financial Security Employee Value Proposition • • Career & Development Training Performance Management • • • Work Environment Challenge Autonomy Experiences “Great Job” 48| Page

Treat employees as valuable people with skills rather than as people with valuable skills People will support a ‘world’ they understand, support and help to create

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HUMAN CAPITAL PRACTICE

Human capital’s impact on business results is a critical source of opportunity and risk. At Willis, we understand the human capital risk our clients face, and we work in partnership to deliver solutions that drive and support your organizational goals.

BROKERAGE AND CONSULTING

 Program renewals and marketing  Request for Proposal (RFP) processes  Proposal analysis  Carrier selection and implementation

SUBJECT MATTER EXPERTISE

 Communication  Health Outcomes   HR Partner National Legal & Research Group (NLRG)  Reporting & Analytics Contact your local office for more information on our Human Capital Practice 51| Page