Best Practices in Creating Employee Engagement

How to really drive employee engagement
bamboohr.com payscale.com

Rusty Lindquist
V P H C M S T R A T E G Y &
I N T E L L E C T U A L P R O P E R T Y
A T B A M B O O H R
Mykkah Herner
M O D E R N C O M P E N S A T I O N
E V A N G E L I S T
A T P A Y S C A L E

Differentiation by Innovation

A Fierce Economy
GLOBALIZATION
has shrunk the world
TECHNOLOGY
has leveled the playing field
LOW ENTRY BARRIER
has increased startups

"HR today sits smack-dab in the middle of
the most compelling competitive battleground
in business”
Matthew D. Breitfelder
HBR: “Why did we ever go into HR”

Commoditization of Innovation

SUSTAINING DIFFERENTIATION TODAY
is less about
WHAT YOU DO
WHO YOU ARE
and more about

Focus on Who You Are
PEOPLE
Relentlessly attracting, inspiring,
and empowering great people.
CULTURE
Creating a great place to work,
so great work can take place.
Don’t just focus on what you do

HR needs to be less optimized around
processes, policies, and procedures,
and more around people, productivity,
and performance.

Ram Charan
Best-selling Author, Business Advisor

70% of American workers
are “not engaged” or are
“actively disengaged”
- Gallup, 2013
40% of employees are
passively or actively
disengaged.
– Aon Hewitt, 2012
v70% v40%
51% of employees were still
‘not engaged’, and 17.5%
were ‘actively disengaged’
– Gallup, 2014
It’s all about engagement
v51%

What is engagement ?
“emotional involvement or
commitment”
Merriam Webster
"an employee's involvement
with, commitment to, and
satisfaction with work.”
Schmidt et al., 1993

Impact on results
Engaged employees have higher impact on Key Business Drivers

Employees who
perceivea‘fairand
transparent pay
practice’havelower
intenttoleaveand
highersatisfaction
PERCENT OF
RESPONSES
LOW AVERAGE HIGH
50% 31% 19%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
1 2 3 4&5
% Responses with Intent to Leave % Responses with High Satsifaction

16 ELEMENTSof engagement, satisfaction, and performanceObjective
Know where you’re going
Ob
The building blocks of high
performing people, cultures,
and organizations.Alignment
Doing work that fits
Al
Plan
Knowing how to move forward
Pl
Leadership
Having a mentor or guide
Le
Space
What you need to progress
Sp
Contribution
Having an impact
Co
Growth
Mastery and progress
Gr
Score
Measuring Progress
Sc
Meaning
Finding fulfillment
Me
Momentum
Having inertia
Mo
Identity
How you see yourself
Id
Value
Total rewards
Va
Investment
Having skin in the game
In
Relationships
People and connections
Re
Environment
Culture, cues, ecosystem
En
Renewal
Restoration and balance
Rn
© Rusty Lindquist

Having a clear destination, a cause, and caring about it.
Objective
Knowing where you’re going
Ob Objective
Ob

Being tasked with work we can succeed at.
Alignment
Doing work that fits
Al Alignment
Al
Competency
Opportunity Passion
The sweet spot

Knowing next steps, or how to move forward.
Plan
Knowing what to do
Pl Plan
Pl

Having what you need to move forward.
Space
Having space to work
Sp Space
Sp
Autonomy
Ownership
Permission
Trust
Point me inthe rightdirection then
getoutofmy way.
Empowerment
Influence
Tools
Influence

Getting things done and feeling like you’re making a difference.
Contribution
Having an impact
Co Contribution
Co

Being able to measure progress, impact, and be accountable.
Score
Measuring progress
Sc Score
Sc

Having momentum, a sense of inevitability, and moving forward
Momentum
Having inertia
Mo Momentum
Mo
We tend to be carried
forward in life
by the inertia of our past.
People in motion tend to
stay in motion, people at
rest tend to stay at rest.

Feeling like you have skin in the game, or something to lose.
Investment
Having skin in the game
In Investment
In
LossAversion

Feeling like you’re gaining mastery, progressing personally or professionally.
Growth
Mastery & Progress
Gr Growth
Gr

Finding meaning, fulfillment, and purpose in what you do.
Meaning
Finding fulfillment
Me Meaning
Me

Feeling appreciated, valued, and adequate rewarded for your effort.
Value
Total rewards
Va Value
Va
Rewards Recognition Compensation

Knowing who you are, what you’re capable of, and believing in yourself.
Identity
Id Identity
Id
Functional Fixedness

Identity
Id Identity
Id
Beliefs
Results Behaviors

Identity
Id Identity
Id
We tend to move toward
our most dominant
thought process
Maxwell Malts
Psycho Cybernetics

Identity
Id Identity
Id
The two most important days
in your life are the day you
are born, and the day you
find out why.
— Mark Twain
Whether you think you can,
or you can’t, you’re right.
— Henry Ford

Having someone who believes in us, challenges us, and shows us the way.
Leadership
Having a mentor or guide
Le Leadership Le

Having connection and relationship with people you care about
Relationship
People and connections
Re Relationship Re

Having surroundings that support and enable our efforts.
Environment
Culture, cues, & ecosystem
En Environment En

Finding restoration and renewal through balance and moderation.
Renewal
Restoration and balance
Rn Renewal Rn

The key to sustainable competitive
advantage is the optimization of human
capital; attracting, inspiring, and
empowering great people.

Immediate Actions
 Decide to measure engagement
 Use the model to frame 1:1’s
 Use the model to triage underperformance
 Train managers and executives on what to look for

Thank you!
BambooHR
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PayScale

Rusty Lindquist
V P S T R A T E G I C H R I N S I G H T S
B A M B O O H R
@ r u s t y l i n d q u i s t
r u s t y @ b a m b o o h r . c o m
w w w . l i n k e d i n . c o m / i n / r u s t y l i n d q u i s t
Mykkah Herner
M O D E R N C O M P E V A N G E L I S T
P A Y S C A L E
@ m y k k a h _ h e r n e r
M y k k a h H @ p a y s c a l e . c o m
w w w . l i n k e d i n . c o m / i n / m y k k a h h e r n e r
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Best Practices in Creating Employee Engagement

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