Transcript Employee Engagement: Key to Better Business Performance

Employee Engagement:
The Key to Better
Business Performance
Paul L. Belliveau, MBA, SPHR
Project Manager/
Lead HRMS Management Consultant
Presenter
Paul Belliveau, MBA, SPHR
 Over 25 years in HR Management & HRMS Consulting
 Industries: Healthcare, Retail, Manufacturing, Financial,
High Tech, Utilities, Pharmaceutical, Research & Services
 HR business strategies, HR/Payroll business process
assessment and improvement, HR transformation and HR delivery models
 HR Information Technology planning, readiness, implementation, & on-going
project support
 Formerly with big 4 consulting firm - ERP implementation, business program
development, project management and multi-workstream coordination
 Credentialed as a Senior Professional in Human Resources (SPHR), with
expertise in all major disciplines within Human Resources
 Committee Chair for the Human Capital Metrics Consortium
Kronos Incorporated (NASDAQ: KRON)
• 26
years of domain expertise
• 40,000+
customers
• 20,000,000
employees use a Kronos system
• 61
offices worldwide
• 2,400
employees
• 133
years of executive experience
• 97
quarters of revenue growth
• 68
quarters of profitability
Objectives
• Define employee engagement
• Identify link between employee engagement and
organizational performance
• Link performance management, reward programs
and employee development to maximize employee
engagement
• Plan that help promote employee engagement
What drives employee engagement?
• Showing interest in the well-being of employees
• Providing challenging work
• Empowering employees to make decisions
• Proving that the organization is focused on customers
• Providing career advancement opportunities
• Demonstrating fairness in the workplace
• Recognizing employee accomplishments
• Encouraging & supporting employee idea-sharing
Employee Engagement
Predicts Financial Performance
Analysis of 41 Global Companies
4%
3%
2%
1%
0%
-1%
3.74%
2.06%
-2.01%
-1.38%
Operating
Margin
Net Profit
Margin
Employee
Engagement:
low
high
-2%
-3%
36-Month Change
International Survey Research
-presented at 2003 SHRM Conference
Workforce Engagement in a Typical US Firm
Totally Turned
Off & Tuned Out
25%
US economy is
running at 30%
efficiency … Many
workers are not
contributing as much
as they could.
- Gallup Survey
Engaged &
Enthusiastic
25%
Just Enough
To Get By
50%
- HR Magazine,Feb. ‘04
Hire for Best Fit
• Starts with having the right person who is a fit for the job
• Candidate assessment as to fit is essential
• Apply assessment tools and techniques
• Indoctrination and setting expectations are also very vital
Those who will not be engaged
• Not all who do “just enough to get by” are above average
• Employee attitude and productivity may never change
• These folks may not be right fit for the job, team, or
organizational culture
Roadblocks to Engagement
• Disconnect with the immediate supervisor
• Feeling that the organization doesn’t care about him
• Can’t see the “what’s-in-it-for-me”
• Can’t define how his/her job fits in
• Ties to the organization’s larger goals are unclear
• Pathways to personal success are undefined/non-existent
Symptoms that Point to Need for Change
• Productivity does not meet expectations
• Job expectations unclear … employee satisfaction low …
increase in turnover
• Inability/reluctance to adapt to changing business needs
• Recent/planned organizational changes
• Disconnect between management, HR and workforce
• Need for organizational triage – stop the bleeding
• Technology has changed – HR and workforce must evolve
Events that Trigger Engagement Crisis
• Recent/planned organizational changes
– New management
– Mergers, acquisitions, divestitures or spin-offs
– Workforce reductions
• Organizational redirection, shift in business
• Company reputation
• Changes in the market
• Technology changes that require HR,
management and the workforce to evolve
Cure is Not that Painful
• Improving employee engagement not difficult or expensive
... Just takes extra effort and lot of work
• Recognizing the engagement gap is the first step
• Realize basic human need to contribute
• Front-line managers closest to workers are the key
Benefits of Engaging the Workforce
• Improved accuracy & reduced processing costs
• Free flow of innovative improvement
• Increase likelihood of goal attainment
• Managers can make better & faster decisions
• Increased employee satisfaction & employee retention
• lower turnover rates
• increased shareholder value (Watson Wyatt)
Goals Drive Value
Three-year Total Return to Shareholders (%)
1999-2001
Employees
Connected
to Goals
21%
Employees
Disconnected
from Goals
5%
0
5
10
15
20
25
Source: Watson Wyatt’s 2002 WorkUSA® Survey
How do you start engaging?
Identify with
engagement
potential
Ask for
their views
Get
Insights on
engagement
drivers
Listen for
Issues
- get
specifics
Act upon
new-found
information
Workplace Issues
Work Experiences
• Performance Appraisals
•Supervision
•Work relationships
•Employee involvement
•Training
•Working conditions
•Etc.
Organizational Functioning
•Communication
•Customer focus
•Pay & benefits
•Leadership
•Career development
•Company brand & reputation
•Etc.
Employee Engagement
How to Engage the Workforce
• Find opportunities to involve the employee
• Make it easy for employees to access leaders
• Make variety of communication vehicles available
• Provide meaningful, timely, and accessible information
• Communicate vital workforce performance metrics
How to Engage Individual Employees
Engaging employees starts with:
– Sharing the vision
– Aligning goals at all levels in the organization
– Collaborating on action plans
– Mutually establishing performance measures
– Gaining commitment and taking ownership
– Scheduling frequent check-ins and feedback sessions
– Providing self-sufficiency tools and resources
Active Performance Management
Planning
• Informal check-in
• Progress check
• Assure alignment
• Offer support & tools
Evaluation
• Self-Evaluation
• Manager Evaluation
- leverage check-ins
• Positive performance
• Motivation/engagement
Performance
Feedback
• Goal-Setting
• Action Plan
• Measurement Criteria
• Buy-In & Commitment
Rewards and Recognition
Rewards
• Fair pay
• Pay based on individual merit
• Variable pay
• Performance incentives & bonus
• Benefits & paid time off
• Rewards linked to company
performance
– Stock ownership
– 401k employer contributions
– Employee activities
Rewards and Recognition
Recognition
• Support & involvement
• Personal praise &
acknowledgement
• Autonomy
• Authority
• Sharing knowledge &
providing feedback
Total Rewards Statement
Total Rewards Summary for Jane Fallon
This pie chart illustrates the Company‘s
estimated annual cost for your benefits.
This pie chart illustrates how your pay and the
Company's estimated annual cost for your
benefits combine to form your total rewards.
Total Rewards: $51,093
Total Annual Company Benefit Cost: $8,738
Bonus
$2,355
Other
Benefits
$582
Disability/
Life $265
Savings
Plan $746
Base Pay
$40,000
Benefits
$8,738
Retirement
Plan $1,175
As you can see, your employee benefits program is an
extremely valuable part of your total rewards package.
Social
Security
$3,060
Health Care
$2,910
Building Technology into an Organization
Self Service
•Automate paper-based personnel-related processes
•Automate the processes that support the manager’s job
• Performance reviews
• Employee development
• Compensation planning
• Recruitment & staffing
•Approve requests
•Communicate & Interact with employees
Role of an HR Portal
• Provides a single source -- one-stop shopping
• Integrates components into a single point of service for
leaders, managers, employees and HR professionals
• Provides employees, managers & HR with direct access
• Enables applicants, vendors & trusted vendors with access
• Promotes efficiencies through enablement of HR processes
• Promotes acceptance from within the organization
Engaging Employees through Automation
Enterprise Portal / Intranet
Enterprise Content Management
(ECM) - Unstructured Data
Learning Management System (LMS)
- Training resources
 catalogs document-based info into  Enables rapid adaptation of training
searchable hierarchies
content to changing business needs
 includes external content
 allows individual matching of
developmental needs, training
 permits role-specific views,
deliverables
personalized delivery
Enterprise Resource Planning
(ERP)/ Data Mart - Structured Data
 Aggregates data from multiple
databases: HR, financial, CRM,
etc.
 allows role-specific views,
individual manipulation of data
Copyright © 2004 WorkStrategy
edocmagazine, April ‘04
Questions?
©2004, Kronos Incorporated. Kronos, and the Kronos logo are registered trademarks and “Improving the Performance of People and Business” is a trademark of Kronos Incorporated or a
related company. All other products or company names mentioned are used for identification purposes only and may be trademarks of their respective owners.
All rights reserved. Printed in the U.S.A.
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Employee Engagement:
The Key to Better
Business Performance
Paul L. Belliveau, MBA, SPHR
Project Manager/
Lead HRMS Management Consultant