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

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)

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)

Importance of Engagement
It is essential that every person understands and commits to your business strategyas stated in your brand, vision, mission or valuesfor 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

Results

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
Strongly Agree

4
Agree

3
Neutral

2
Disagree

1
Strongly Disagree

NA
Not Applicable

Sample Characteristics
Job Level
VPs & Above Team Leader/Director Team Member

n
8 42 413 463 163 110 9.5% 40 36 20 12 421 45 54 146 219 464 380 39 35 454

%
1.7% 9.1% 89.2% 100.0% 38.7% 26.1% 9.5% 8.6% 4.8% 2.9% 100.0% 9.7% 11.6% 31.5% 47.2% 100.0% 83.7% 8.6% 7.7% 100.0%

Division
Claims Services Account Services Information Technology Legal Finance Underwriting & Product Services HR & Organizational Effectiveness 40

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

Interpretation Guidelines
% Favorable
60 or more
All Systems Go!

50-59
Warning

49 or less
Red Alert!

10

Theme Level Analysis

Favorable
Culture

Neutral

Unfavorable

Reliability Items

66 60 60 59 50 50 49
25% 50%

17 18 21 19 26 24 34
75%

17 22 19 21 23 26 17

.85 .81 .92 .78 .82 .86 .91

100%

8 8 11 8 8 9 8

Work Environment

My Leader

Learning & Development

Reward & Recognition

Communication

Executive Leadership

0%

11

Item Level Analysis: Culture (8)

Employees feel encouraged to own their work, support one another and suggest innovative ideas; however, they dont 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. 16. This organization encourages employees to openly express differences of opinion. 13. It is safe to speak up here without fear of retribution.

Favorable

Neutral

Unfavorable

Mean
4.20

87 80 78 72 67 63 45 35
25%

9 4 469 11 9 470 14 8 472 17 16 18 26

3.96
3.93 3.86 3.70 3.64 3.21 2.90

11 471 17 471 19
472 472 472
100%

29 39
75%

25
50%

0%

12

Qualitative Analyses

13

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

14

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.

15

Employee Engagement

16

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

17

Rights Model of Employee Engagement

Employee Engagement Business Outcomes
Performance & Profitability Motivation Sales & Employee Attraction Advocacy Satisfaction Customer Service Productivity Pride

TM

Turnover

18

Employee Engagement Level

100%

High
60%

% Engaged

50%

Medium

48.5% Engaged

30%

Low

0%

51.5% Not Engaged

19

Employee Engagement Model

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

Right TM Benchmark*
74% 92% 75% 86% 89% 60%
*Best-in-Class Companies

Motivation
Satisfaction

Employee Engagement

Reliability = .86

20

Key Outcomes

21

Key Outcome Measures

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

Favorable

Neutral

Unfavorable

Mean

75

17

7 469

3.97

73. This organization attracts the best people.

32

45

24

468

3.11

0%

25%

50%

75%

100%

22

Retention
Which statement best describes your current plans?
I am leaving this organization as soon as I can

% Agree 2% 6% 11% 26%

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

55%
Total 100%

23

Driver Analyses

24

Model of Organization Performance

Drivers Impact Engagement Impact Key Outcomes

Item 1

?
Motivation

Item 2

Pride

Advocacy

?
Outcomes

Satisfaction

?
Item 3

25

Key Driver Analysis Engagement

Driver Impact
.24

Outcome

REWARD & RECOGNITION

COMMUNICATION

.17

MY LEADER CULTURE

.15

Employee Engagement * 2
R = 36%

.15

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

26

Key Driver Analysis Employee Attraction

Drivers
Reward & Recognition
Motivation

Engagement

Impact

Key Outcome

Communication
Pride

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%)

Employer Advocacy

.13
Employee Attraction*
2

Satisfaction

R = 39%

.25 .18 .17 .15

27

Segmentation Analysis

28

Engagement Great Place to Work Matrix

High

Great Place to Work

Benchwarmers 15%

Stars 55%

Disconnected 15%

Free Agents 15%

Low

High

Engaged

29

Demographic Segmentation
Stars Bench warmers Free-Agents Saboteurs

Level VPs & Above (8) Team Leader/Director (42) Team Member (413) 100% 76% 44% 49% 37% 48% 49% 75% 58% 58% 48% 47% 46% 35% 0% 10% 30% 29% 28% 31% 26% 17% 27% 25% 34% 22% 23% 40% 0% 4% 1% 0% 3% 2% 1% 0% 0% 0% 1% 6% 1% 0% 0% 10% 25% 22% 32% 19% 24% 8% 15% 18% 17% 25% 30% 25%

Tenure
Less than 1 year 1-3 years 3-10 years More than 10 years Division HR IT Legal Claims Services Finance Account Services Underwriting

30

Key Differences Analyses

31

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

Demographic Variables
Level Location Division Tenure

32

Demographic Differences - Level

The ratio of engaged to disengaged employees is best among Team Leaders and VPs & Above
engaged 100% 81% 80% 60% 40% 20% 0%
Team Member N=413 Director N=42

disengaged 100%

Ratio

.8 to 1

4 to 1

8 to 1

55% 45%

49% 51%

19% 0%
VPs & Above N=8 Overall

33

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 5.0 4.0 3.0 2.0 1.0 0.0
Team Member
N=413

4.8 4.3 3.9

Director
N=42

VPs & Above

N=8

34

Summary & Implications

35

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

36

Next Steps

37

Next Steps

Executive
Leadership Presentation of Results Managers Action Planning Sessions

Strategic

Survey Data

Tactical

EMPLOYEE OPINION SURVEY DATA

Employees
Employee Survey Communications

Feedback

38

Analysis of Written Comments

80%

60% 52% 46% 48%

50% 43% 44% 44%

Percentage

Question Communication Leader Culture Executive Leadership Work Environment One Improvement Learning & Development Dont Change Reward & Recognition