Kenexa

EMPLOYEE SURVEYS: More than a temperature check? How can surveys affect the bottom line?

©Copyright Kenexa ® 2008 1

Agenda



About Kenexa



EMPLOYEE SURVEYS



Why?



Methodology



Outcome

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Kenexa Overview

Founded:

1987

Employee Population:

1,600+

Revenue:

€ 145M-€148M (FY 2008)

NASDAQ Symbol:

KNXA

Expertise:

• Hire the very best employees • Maximize their experience with the organization ©Copyright Kenexa ® 2008

Global Locations

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Select Survey Clients

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Kenexa HR-Solutions

Maximizing their performance Surveys

are part of Kenexa‘s HR-Portfolio

Hiring the very best people Recruiting Applicant Tracking Assessment Tools Interviews

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SURVEYS… More than a temperature check?

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Employee Engagement

Drivers of Engagement Engagement Engagement Outcomes Organizational Performance

• Communication • Future/vision • Growth & development • Involvement & belonging • Leadership/trust • Meaningful/challenging work • Recognition & rewards • Variable dimensions TBD • Advocacy • Commitment • Pride • Loyalty • Discretionary effort • Commitment • Retain key talent • Revenue growth • Market share • Customer loyalty • Innovation ©Copyright Kenexa ® 2008

How we measure Engagement?

• •

Engagement Index = Satisfaction + Advocacy + Commitment + Pride When individual employees are truly engaged, they can tolerate limited periods of lower work satisfaction and stay highly committed. Engagement is a combination of attitudes and priorities that has a consistent and predictable impact on behavior.

KENEXA-ENGAGEMENT-ITEMS:

    Overall, I am satisfied with <> as a place to work.

(Satisfaction)

I would gladly refer a good friend or family member to <> for employment.

(Advocacy)

I rarely think about looking for a new job with another company.

(Commitment)

I am proud to work for <>.

(Pride)

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Linkage Analysis: Research Overview advocacy

Engagement

commitment

Company/ Function

F500 transportation company Telecommunications company

Employee Engagement Accounts for:

 39%

on-time delivery

variance  30% more favorable

customer service ratings

 15% more likely to reach

Net Income Plan

Retailer (field sales)  17%

sales increase

variance  22%

net profit increase

variance International beverage company  8% increase

productivity/hour

 20% decrease in

absenteeism

 22% reduction in

waste costs

 Total

savings

of $11M/year

Higher Engagement



Quantifiable Business Results

©Copyright Kenexa ® 2008 10

Linkage Analysis: Total Shareholder Return (TSR)

Total Shareholder Return

by

Top

and

Bottom

10 % on Engagement Index Scores

Engagement Index Group

Top 10% Bottom 10%

1-Year TSR

12.09% -2.36%

5-Year TSR

11.13% -22.17% • The

average high-performing

organization on employee engagement shows a

6 times greater shareholder return

than does an average bottom-performing organization on employee engagement over a

1-year period

• The

average high-performing

organization on employee engagement shows a

3 times greater shareholder return

than the average bottom-performing organization on employee engagement over a

5-year period

©Copyright Kenexa ® 2008 11

Linkage Analysis: Customer Satisfaction 45.0000

44.0000

43.0000

42.0000

41.0000

40.0000

39.0000

Lowest Lower Higher Highest

Store Engagement Level (by quartile)

©Copyright Kenexa ® 2008 Copyright Kenexa ® , 2007

Engagement and Customer Satisfaction is significantly correlated.

Only Stores for which 2007 Engagement data was available are included in this analysis (n=653).

METHODOLOGY IN PRACTICE

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Design

Design Administration Reporting Behaviour Change Measure what matters – clear understanding of a company’s objectives driving the survey process

• Factors that drive high performance • Engagement and your culture • Alignment with strategy and processes • Involve appropriate key stakeholders ©Copyright Kenexa ® 2008

Administration

Design Administration Reporting Behaviour Change

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Survey Management System

https://surveys.kenexa.com/v1301Demo/tools/default.asp

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Reporting

Design Administration Reporting Behaviour Change

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Response Scale - Reporting

SURVEY REPORT

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ES: Employee Engagement Priorities

Fictitious Sample Data Only

Results for Engagement

Main drivers

to improve Engagement ©Copyright Kenexa ® 2008

How we indentify Drivers?

Priority Items for Engagement

 Engagement priorities tell us which areas we can act on that will have the most impact on improving engagement.

 What themes are most influential across the company.

 What items provide the most leverage.

 Statistical analyses performed to identify

priority items with the strongest influence on engagement

.

 The natural tendency is to focus energy on the lowest rated items. Resist. ©Copyright Kenexa ® 2008

Behaviour Change

Design Administration Reporting Behavior Change

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CHANGE… Something that happens as a matter of course?

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Getting the Best Out of the Survey?

high expectations 70%

of enterprise companies conduct employee surveys on a regular basis

disappointment frustration How to use the results effectively to gain a lasting effect?

~ 50 – 60 %

of employees think they receive sufficient information on the results of the survey

~ 20 – 30 %

of employees are satisfied with the way in which the results are used for improvements ©Copyright Kenexa ® 2008 23

Action Planning Effectiveness Stores scoring low on the Enterprise-focused item saw Engagement decrease.

Those scoring in the top half saw Engagement improve by over 12% in one year!

14% 12% 10% 8% 6% 4% 2% 0% -2% -4% Copyright Kenexa ® , 2007

One Senior Leadership/Enterprise Focused item

Low Action Planning Ratings ©Copyright Kenexa ® 2008 High Action Planning Ratings

BASIC-Elements*

Of Successful Follow-Up Processes

EIGHT Basic success factors

Project Management Commitment of the Top Management Controlling/ Monitoring of the Procedures Qualification of Line Managers Communication/ Action Plan/ Marketing of the Follow-Up Realization of Processes Inclusion of the the Procedures Employees HR Acting as Internal Advisor *based on an interview study with companies conducting regular employee surveys ©Copyright Kenexa ® 2008 Project Management 25 25

Contacts

Kenexa Germany GmbH

Georg-Brauchle-Ring 60 D-80992 Munich Astrid Wammers (Program Director) Tel: +49 (0)89 13 06 80 26 [email protected]

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THANK YOU!

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