The Essence of Engagement: Achieving Results Through People

1
The Essence of EngagementAchieving Results
Through People

• Anna Erickson, Ph.D.Director, Consulting
  ServicesQuestar, Organizational Insights
  Groupwww.questarweb.com
• Presentation to
• Association of Information Technology
  Professionals
• Northwest Chapter
• October 7, 2008

2
Who am I?

• Industrial Organizational Psychologist
• (Curious? Learn more about I/O Psych at
  www.siop.org)
• 15 years experience
• Employee Selection/Hiring
• Succession/Talent Management
• Leadership Development
• Employee Surveys
• Lead consulting team at Questar Data Systems
  Organizational Insights Division

3
Who is Questar?

• Survey research company based in Eagan, MN with
  offices in the United Kingdom
• Founded in 1985
• 100 Employees
• 3 Divisions
• Organizational Insights Group
• Customer Experience Management
• Public Sector Research
• Global Data Collection
• Multiple methods paper, internet, IVR
• 75 countries, 48 languages

4
Trends weve seen

• Workplace stress on the rise
• Growing importance of senior leadership
• Better understanding of business outcome
  implications
• Increased attention toward building Employee
  Engagement

5
Research Says
More than 80 percent of employees feel that
companies are expecting too much work from too
few people. (Randstad) The average workweek has
increased since the 1970's while leisure time has
decreased by 37. (Louis Harris Poll)
6
Employees Say

• We are under a great deal of stress here in the
  field. The company doesnt truly value our work
  as employees.
• I sometimes feel that managers think that a job
  can be produced by pushing a button once an idea
  has happened.

7
Research Says
Two-thirds of both men and women say work has a
significant impact on their stress level, and
one in four has called in sick or taken a "mental
health day" as a result of work stress. (American
Psychological Association)
8
Employees Say

• The pace of each day is grueling.
• Employees in my work group are stretched far
  too thin, the workload is heavy and constant, and
  the work day is very long. As a working mom, I
  find my job enormously gratifying but hugely
  demanding.
• The balance is a struggle each day.

9
Research Says

• 62 of American workers said that their workload
  has increased over the past six months and that
  they had not used all of their allotted vacation
  time in the past year.
• (Kronos Inc.)

10
Employees Say

• We work grueling hours, sacrificing time with
  family and friends and those sacrifices on a
  daily basis don't seem to be appreciated.

11
Research Says

• 70 of employees say you have to work late and
  work overtime to get ahead.
• 62 of employers agree.
• (Randstad)

12
Employees Say

• Management's philosophy seems to be to devalue
  individual employees...
• to create a sense that the employee should be
  grateful just to have a job.

13
Research Says

• One-fourth of employees view their jobs as the
  number one stressor in their lives.
• (Northwestern National Life)
• Workplace stress causes approximately one million
  U.S. employees to miss work each day.
• (American Institute of Stress)

14
Employees Say

• Because we are such a competitive industry, a
  lot of behaviors from management that would not
  be generally accepted in the population at large,
  are rampant here.
• Screaming supervisors,
• cursing supervisors regularly reduce staff
  members to tears.

15
Research Says

• Problems at work are more strongly associated
  with health complaints than are any other life
  stressor.
• (St. Paul Co.)
• Workers who must take time off work because of
  stress, anxiety, or a related disorder will be
  off the job for about 21 days.
• (US Bureau of Labor Statistics)

16
Employees Say

• I have been humiliated, insulted and treated
  really bad by my manager. We cannot express our
  opinions or suggestions. The stress level is so
  high and my manager blames everything on me.

17
Research Says

• Productivity losses related to personal and
  family health problems cost U.S. employers 1,685
  per employee per year, or 225.8 billion
  annually.
• (Stewart et al.)

18
Employees Say

• People are looking for growth.
• Most employees are more than willing to go the
  extra mile but the reward is often a punishment
  of being trapped in a position that is no longer
  motivating.

19
Research Says

• Companies with higher revenue growth are better
  at motivating employees and provide more
  opportunities for growth and development.
• Employee engagement levels in these high
  performing organizations are more than 20 higher
  than those of their counterparts.
• (Hewett Associates)

20
Employees Say

• There is still a "good ole boys network" here
  that some opportunities are awarded based on who
  you know and not what you know.

21
Research Says

• Only 23 percent of U.S. adults report engaging in
  regular, vigorous exercise for at least 20
  minutes three or more days per week and 40
  report no leisure time physical activity at all.
• The major barriers to increased physical activity
  are lack of time, inadequate access to convenient
  and affordable fitness facilities and lack of a
  safe environment in which to be active.
• (U.S. Department of Health and Human Services)

22
Employees Say

• If people do try to workout at lunchtime to
  relax, get into shape, or de-stress, they are met
  with a management mind frame which frowns upon an
  extra 10 minutes of lunch time exercise
• and yet this same management is ok with an extra
  10 minutes of outside smoking time periodically
  throughout the day.
• What is wrong here????

23
Research Says

• Despite the proven success of interventions, only
  about a quarter of companies with 500 or more
  employees provide smoking cessation services at
  the worksite and only 22 percent of health plans
  offered by employers with ten or more workers
  provide smoking cessation benefits.
• (William M. Mercer)

24
Employees Say

• There is no reason why we should have to
  breathe in other people's smoke and have our
  clothes smell of smoke when we are trying to
  enter our office building.

25
Research Says

• Depression results in more days of disability
  than chronic health conditions such as heart
  disease, hypertension, and diabetes.
• (National Committee for Quality Assurance)
• According to the National Institutes of Mental
  Health, depression costs an estimated 23 billion
  in lost workdays every year.

26
Costs of Job Stress Job stress is estimated to
cost U.S. industry 300 billion annually.
27
Research shows performance decreases
with increases in work-related stressors
including

• role ambiguity
• role conflict
• role overload
• job insecurity

• work-family conflict
• environmental uncertainty
• situational constraints

Even subtle suggestions related to power,
ability, expectations and stereotypes have
measurable impact on individual performance.
Gilboa, Shirom, Fried, Cooper (2008). A
meta-analysis of work demand stressors and job
performance Examining main and moderating
effects. Personnel Psychology, 61,
227-271. Smith, Jostmann, Galinsky, van Dijk
(2008). Lacking power impairs executive
functions. Psychological Science, 19, 441-447.
28
History of Research on Employee Attitudes

• Hawthorne Studies 1934
• Increase in Employee Morale Surveys during WWII
• Cold War Skepticism
• there is little evidence in the available
  literature that employee attitudes of the type
  usually measured in morale surveys bear any
  simple or, for that matter, appreciable
  relationship to performance on the job
  (Brayfield Crockett, 1955)
• Skepticism continued into 1980s
• satisfaction and performance are only slightly
  related to each other (Muchinsky (1985)
• Employee Engagement emerged in mid 1990s

29
The Holy Grail of Employee Research

• Employee Morale
• Employee Satisfaction
• Employee Involvement
• Organizational Commitment
• Job Enrichment
• Employee-Customer-Profit Chain
• Employee Engagement

30
What is Employee Engagement?

• Studies show that engaged employees
• know what is expected of them
• make optimum use of their skills
• feel valued by their leaders
• enjoy the people they work with
• deliver quality
• And most importantly
• have confidence in the company and leadership

31
(No Transcript)
32
These employees

• will be more productive
• stay longer with the company
• become spokespeople for the company a
  valuable source of PR
• contribute to the bottom line and company value

33
Higher engagement ? higher productivity
Based on research by the Corporate Leadership
Council (Building the High-Performance Workforce,
2002) Hewitt Associates (The Link Between
Employee Engagement and Business Results, 2003)
Watson-Wyatt (Watson-Wyatt Work-USA Survey, 2002)
and Towers-Perrin (Working Today Exploring
Employees Emotional Connections to their Jobs,
2003)
34
Engagement and Customer Satisfaction
Stores with highly engaged employees.
Stores with moderately engaged employees.
Stores with less engaged employees.
Year 1
Year 2
Year 3
35
Engagement and Comparable Store Sales
Stores with highly engaged employees.
Stores with moderately engaged employees.
Stores with less engaged employees.
36
Key Drivers of Employee Engagement
My Job
My Job
Company Image
Company Image
Senior Leadership
Senior Leadership
Overall Engagement
Overall Engagement
Quality/Customer Service
Quality/Customer Service
Key
Key

Improved performance

Improved performance
Drivers
Drivers

Increased morale

Increased morale

Decreased turnover

Decreased turnover
Supervision
Supervision
Co
-
Workers
Co
-
Workers
Employee Value
Employee Value
Performance Management
Performance Management
37
Many people believe that
People dont leave the company, they leave their
boss.
38
Drivers of Intention to Leave
Relative Importance
Employee Value Company Image Senior Leadership My
Job Performance Management Quality/Customer
Service Supervision Co-Workers
Includes data from a cross section of employed
adults across industries and employers
38
39
An Emerging Trend

• Across companies and industries, supervision is
  among the least important drivers of intent to
  leave.
• In several individual studies for specific
  companies, the same trend emerged.
• Conclusion while the employee-supervisor
  relationship cannot be ignored, its NOT just the
  boss!

40
SHRMs Job Satisfaction Survey

• According to Employees
• Benefits
• Compensation/pay
• Feeling safe in the work environment
• Job security
• Flexibility to balance work/life issues
• Communication between employees and senior
  management
• Relationship with immediate supervisor

• According to HR
• Relationship with immediate supervisor
• Management recognition of employee job
  performance
• Benefits
• Communication between employees and senior
  management
• Compensation/pay
• Opportunities to use skills/abilities
• Flexibility to balance work/life issues

From April 2005 issue of HR Magazine published
by The Society for Human Resource Management.
41
Impact on Turnover

• In a study comprising a cross-section of employed
  adults across industries and employers
• 48 would remain with their companies even if
  offered a comparable job elsewhere
• 25 would NOT and 26 arent sure!
• Strongest intent to leave is seen among younger
  employees

42
How likely are employees to leave?

• Item I would remain with this company even if
  offered a comparable job in another company.
• Examined the percent of people who strongly
  disagreed with that statement people who are
  the most likely to leave
• Variables dealt with aspects of the supervisor,
  the job, senior management, and the company

43
Employees are highly likely to leave if
No pride in Dont see Values arent Dont know
working for job related to aligned with what
is company company goals company expected of
me values
44
Contrast that with
Not No opportunity Supervisor Supervisor recogniz
ed for growth doesnt cant manage for good and
understand people work development our work
45
Conventional wisdom may be wrong

• Conventional wisdom said that issues closer to
  the employee supervision, working conditions,
  pay benefits had the greatest impact on
  whether you stayed or left.
• Today, it appears that this decision is being
  made based on broader issues
• Do I believe in this company? Is it a good fit
  for me?
• Is it being run properly? Will it remain
  successful?

46
Company Image driven by

• Actual products and services produced
• Emphasis on the value of employees
• Confidence in Senior Leadership

47
Drivers of Confidence in Leadership

• Looking for key drivers of confidence in senior
  leadership across a number of organizations,
  several themes emerged.
• Interpersonal factors seem to be more important
  than factors related to competence or
  organization direction.
• Integrity, fairness, and respect
• Employees feeling valued
• Communication and support for change

48
Building Engagement

• Minimize impact of stress on everyday work
  interactions.
• Find ways to empower employees.
• Look for and communicate clear expectations for
  performance and deliverables.
• Align with company values and understand
  contribution to larger goals.
• Understand larger constructs like company image
  and senior leadership as well as items actionable
  at a work group level.
• Continually monitor reasons for turnover within
  your organization.

49
Most Common Mistakes

• Assume that pay doesnt matter
• Gather data but fail to act
• Or fail to make action a priority
• Miss warning signs for turnover
• Miss relationships in the data
• Gather data in a non-objective way
• Fail to monitor progress
• Blame the boss

50
Dont forget to follow-up

• Stop asking my opinion when its so painfully
  obvious from the results of the last two surveys
  that you dont want to fix what were telling you
  is wrong.

• This survey is a complete fraud. Why does the
  company waste its money on this? It no more
  gives a damn about what employees think than
  yesterdays underwear.

• . . . surveys are without a doubt interesting,
  but they often fail to live up to expectations.

51

• For more information, contact
• Anna Erickson, PhD.
• Director, Consulting Services
• Questar Organizational Insights Group
• aerickson_at_questarweb.com
• 651.683.8697