Employee Engagement Sample Results

Defining Employee Engagement

• Employee Engagement is a critical measure of person-organization alignment • Engaged employees share a common set of attitudes and beliefs which, taken together, reflect a vital aspect of organizational health Pride and Commitment Job Satisfaction Motivation Advocacy 2

Engagement Impact - Examples

Why is it better to have employees with HIGH vs. LOW levels of engagement?

• An estimated 19% of the US workforce is disengaged, costing the US economy upwards of $300 Billion in lost productivity* • Fortune's 100 Best Companies to Work For have had a 10.6% annual return since 1998, while companies listed on the S&P 500 have had only a 5.7% return in that period * *Information from Izzo and Withers (2000) 3

Engagement Impact – Continued

• • •

Highly engaged companies are * :

29% higher in revenue 50% more likely to have above-average customer loyalty 44% more likely to turn above-average profits • • • •

Highly engaged workgroups are ** :

44% higher retention 56% higher in customer loyalty 50% more productive 33% more profitable

*

Information from Izzo and Withers (2000)

**

Information form The Right Group and Manpower (2002) 4

Importance of Engagement

• It is essential that every person understands and commits to your business strategy—as stated in your brand, vision, mission or values—for your organization to be successful in the marketplace • Employees must know specifically what they can do on their individual jobs each and every day to truly make a measurable difference in bottom line results • Engagement must be based on strong diagnostics and executed with a focused, creative strategy designed to prove the impact on business results 5

Results

6

Survey Participation

• • • 500 Surveyed  475 Responded = 95

%

response rate Margin of Error =

+/- 1.1% @ 95% confidence

Surveys were administered on-line and processed by Right Management • Rating Scale: 5 4 3 2 1 NA

Strongly Agree Neutral Disagree Strongly Not Agree Disagree Applicable

7

Sample Characteristics

Job Level

VPs & Above Team Leader/Director Team Member

Division

Claims Services Account Services Information Technology Legal Finance Underwriting & Product Services HR & Organizational Effectiveness

Tenure

Less than 1 year 1 to up to 3 years 3 to up to 10 years More than 10 years

Location

Phoenix home office Tucson field office Other field office 40

n %

8 42 1.7% 9.1% 413 89.2% 463 100.0% 163 110 9.5% 38.7% 26.1% 40 36 20 9.5% 8.6% 4.8% 12 2.9% 421 100.0% 45 54 146 9.7% 11.6% 31.5% 219 47.2% 464 100.0% 380 83.7% 39 35 8.6% 7.7% 454 100.0% 8

Interpretation Guidelines

All Systems Go!

% Favorable 60 or more 50-59

Warning Red Alert!

49 or less 9

Culture Work Environment My Leader Learning & Development Reward & Recognition Communication Executive Leadership 0%

Theme Level Analysis

Favorable Neutral Unfavorable 66 60 60 50 59 50 49 25% 50% 17 18 21 19 26 24 34 75%

Reliability Items

17 22 19 21 23 26 17 100% .85 8 .81 8 .92 11 .78 8 .82 8 .86 9 .91 8

10

Item Level Analysis: Culture (8)

Employees feel encouraged to own their work, support one another and suggest innovative ideas; however, they don’t feel comfortable speaking up and expressing differences of opinion is not encouraged.

Item

15. I am encouraged to take ownership of my work.

11. I am encouraged to share learnings and best practices.

12. This organization takes good care of its customers.

18. I have opportunities to suggest innovative ideas at work.

14. Everyone is treated equally here regardless of their race, ethnic origin, gender, age, sexual orientation, etc.

17. Teamwork is strong in my team.

Favorable Neutral 80 78 72 67 63 87 Unfavorable 17 16 18 11 14

N Mean

9 4 469 9 8 17 19 470 472 11 471 471 472 4.20

3.96

3.93

3.86

3.70

3.64

16. This organization encourages employees to openly express differences of opinion.

13. It is safe to speak up here without fear of retribution.

45 35 25 26 29 39 472 3.21

0% 25% 50% 75% 472 100% 2.90

11

Qualitative Analyses

12

• •

One Improvement (N= 379)

Employees recommended improvements to their benefits (e.g., higher salaries, telecommuting opportunities, additional time off)

Overall compensation, either through salary increases or significantly increased vacation time More opportunities for telecommuting, as long as job duties are covered.

Wages paid more fairly on the job and responsibilities, instead of by the broadband TYPE goals - to change or remove this process. Even though it has been addressed to let team members know if they are not participating, not all team members participate, yet receive tip goal payments

Employees would like to have development plans and see improvements in the performance evaluation system

Simplified performance evaluation system, and a improved HRIS Change how employees are reviewed. The 360 reviews are useless, and the milestone settings are too unreachable which discourages more than it encourages.

Hold ALL employees accountable for their work performances/attendance 13

What Not to Change (N= 206)

• •

Employees like the benefits they receive (e.g., medical, retirement plans, vacation, etc.)

I very, very, very much appreciate the benefits package provided to us. It is unheard of in the business community and puts my mind at ease.

No more additional costs associated with our health benefits.

Flex time or working from home.

Employees appreciate the organizations investment in employee development

The opportunity for education offered to all of us. This benefit is better than any other company and this organization encourages everyone to take advantage of this. I would not want the education benefits to change, I love that this organization supports our personal and professional growth.

The opportunities offered to move or learn about different aspects of the company or outside the company.

14

Employee Engagement

15

Defining Employee Engagement

• Employee Engagement is a critical measure of person-organization alignment • Engaged employees share a common set of attitudes and beliefs which, taken together, reflect a vital aspect of organizational health Pride Job Satisfaction Motivation Advocacy 16

Right’s Model of Employee Engagement

TM

17 Employee Engagement

Motivation Advocacy Satisfaction Pride

Business Outcomes • Performance & Profitability • Sales & Employee Attraction • Customer Service • Productivity • Turnover

100%

Employee Engagement Level

High

60% 50% 30% 0%

Medium Low

48.5% Engaged

18

51.5% Not Engaged

Employee Engagement Model

2005 Survey - 14% - 11% - 1% 60% 81% products/services 74% employer - 12% - 14% 74% 75% - 11% 49% Pride Advocacy Motivation Satisfaction

TM Right

Benchmark* 74% 92% 75% 86% 89% Employee Engagement 60% *Best-in-Class Companies Reliability = .86

19

Key Outcomes

20

Key Outcome Measures

Favorable Neutral Unfavorable

Item

72. Taking everything into account, this organization is a great place to work.

75

N Mean

17 7 469 3.97

21

73. This organization attracts the best people.

32 0% 25% 45 50% 24 75% 100% 468 3.11

Retention

Which statement best describes your current plans?

I am leaving this organization as soon as I can I plan on leaving in the next 6 months I plan on being here another year but I am not sure after that I plan on being here for the next 2 years I have no plans whatsoever to leave

Total % Agree 2% 6% 11% 26% 55% 100% 22

Driver Analyses

23

Model of Organization Performance

Drivers Impact Engagement Impact Key Outcomes 24

Item 1 Item 2

?

?

Motivation Pride Advocacy Satisfaction

?

?

Outcomes Item 3

Key Driver Analysis



Engagement

Driver Impact Outcome

.24

REWARD & RECOGNITION

.17

COMMUNICATION MY LEADER

.15

Employee Engagement * 2 R = 36%

.15

CULTURE

25

*Composite measure of Advocacy, Pride, Motivation, and Satisfaction.

26

Key Driver Analysis



Employee Attraction

Drivers Engagement Impact Key Outcome

Reward & Recognition Communication My Leader Culture 44. This organization promotes employees who deserve it. (Reward & Recognition, 25%) 60. The Executive Team works well together. (Executive Leaders, 28%) 2. I feel well informed about what is going on. (Communication, 45%) 43. This organization rewards its employees well compared to its competitors. (R&R, 35%) Motivation Pride Employer Advocacy

.13

Satisfaction

.25

.18

.17

.15

Employee Attraction* 2 R = 39%

Segmentation Analysis

27

Engagement – Great Place to Work Matrix

28

High Benchwarmers 15% Disconnected 15% Stars 55% Free Agents 15% Low High Engaged

Demographic Segmentation

Stars Bench Free-Agents Saboteurs warmers Level

VPs & Above (8) Team Leader/Director (42) Team Member (413)

Tenure

Less than 1 year 1-3 years 3-10 years

Division

More than 10 years HR IT Legal Claims Services Finance Account Services Underwriting

100% 76% 44% 49% 37% 48% 49% 0% 0% 10% 4% 30% 1% 29% 28% 31% 26% 0% 3% 2% 1% 0% 10% 25% 22% 32% 19% 24% 75% 17% 0% 8% 58% 46% 35% 27% 0% 23% 1% 40% 0% 15% 58% 25% 0% 18% 48% 34% 1% 17% 47% 22% 6% 25% 30% 25%

29

Key Differences Analyses

30

Demographic Differences

Key Variables

My Leader Culture Work Environment Executive Leadership Recognition & Rewards Communications Learning & Development Engagement Retention Great Place to Work Employee Attraction

Level        

Demographic Variables

Location  Division Tenure              31

Demographic Differences - Level

The ratio of engaged to disengaged employees is best among Team Leaders and VPs & Above

100% engaged disengaged 100%

Ratio

80% 60% 81% .8 to 1 4 to 1 8 to 1 45% 55% 49%51% 40% 20% 19% 0% Team Member

N=413

0% Director VPs & Above

N=42 N=8

Overall

32

Demographic Differences - Level

Team Members are significantly less positive about this organization as a Great Place to Work compared to VPs & Above.

Great Place to Work 4.8

5.0

4.0

3.0

2.0

1.0

0.0

3.9

Team Member

N=413

4.3

Director VPs & Above

N=42 N=8 33

Summary & Implications

34

• • • •

Summary and Implications

Strengths:  Within team effectiveness (role clarity, support, etc.)  55% Stars overall  Team Leaders and VPs are highly engaged Opportunity Areas:  Cross functional effectiveness    Communication and perception of leaders 25% Benchwarmers overall Team Member engagement scores are moderate Level of Engagement: Medium, 49% Drivers of Engagement:  Reward & Recognition    Communication My Leader Culture 35

Next Steps

36

Next Steps

Survey Data EMPLOYEE OPINION SURVEY DATA Executive

•

Leadership Presentation of Results

•

Managers Action Planning Sessions

•

Employees Employee Survey Communications Strategic Tactical Feedback

37

Analysis of Written Comments

80% 60% 46% 52% 48% 50% 43% 44% 44% 38 Communication Leader Culture Executive Leadership

Question

Work Environment One Improvement Learning & Development Don’t Change Reward & Recognition