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The Employee Experience: From Engagement to Energy

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In times of change, the employee experience helps hold the company together. Whether it be changes to leadership, products, or culture, the employee experience is the one item that should remain constant and strong in order to keep employees engaged. In this research-based presentation, Josh Bersin, principal and founder, Bersin™, Deloitte Consulting LLP, will highlight the latest trends in the employee engagement market and explain why citizenship, purpose, meaningful work, and “energy, not just engagement” are the most important business strategies you have.

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The Employee Experience: From Engagement to Energy

  1. 1. GLINT PEOPLE POWERED SUCCESS 1 The Employee Experience From Engagement to Energy. Are you Ready? Sponsored by Josh Bersin Principal and Founder BersinTM Deloitte Consulting LLP
  2. 2. GLINT PEOPLE POWERED SUCCESS 2 Real-Time Visibility • Real-time, frequent feedback • Holistic view of the employee journey • Leaves no population behind Predictive Insights • Predicts risks & opportunities • Automatically links to business outcomes • Makes comment data concrete & actionable Effective Action • Manager dashboards • Personalized recommendations • Guided action planning & progress tracking
  3. 3. GLINT PEOPLE POWERED SUCCESS 3 Leading Companies Use Glint
  4. 4. Josh Bersin Principal and Founder, Bersin™ Deloitte Consulting LLP Copyright © 2017 Deloitte Development LLC. All rights reserved. The Employee Experience: Engagement to Energy. Are You Ready?
  5. 5. Copyright © 2017 Deloitte Development LLC. All rights reserved. 5 Demographic upheavals: Millennials make up more than half the workforce, and Boomers are working into their 70s and 80s. Digital technology everywhere: Technology is disrupting business models and radically changing the workplace and how work is done. Speed of digital business: Business must become more agile and experimental to keep up with the rapid pace of change. New social contract: Younger workers demand rapid career growth, compelling and flexible workplace, and a sense of purpose at work. Forces Disrupting Organizations Today
  6. 6. Copyright © 2017 Deloitte Development LLC. All rights reserved. 6 Robots Average cost below $25,000. China purchasing 150,000 in 2016 to deal with shrinking workforce Source: Robots: The new low-cost worker, Dhara Ranasinghe, CNBC, April 10, 2015. https://www.cnbc.com/2015/04/10/robots-the-new-low-cost-worker.html Source: China Can’t Buy Enough Industrial Robots, Jethro Mullen, CNNTech, June 23, 2016 http://money.cnn.com/2016/06/23/technology/china-industrial- robots/index.html
  7. 7. Copyright © 2017 Deloitte Development LLC. All rights reserved. 7 1 billion smartphones iPhone ® launched 100 million Twitter users Since 2011 productivity gains have slowed to crawl US productivity last ten years Productivity is suffering—is technology helping?
  8. 8. Copyright © 2017 Deloitte Development LLC. All rights reserved. 8 Sources: Deloitte Human Capital Trends 2014 and 2015 The “average” US worker now spends 25% of their day reading or answering emails Fewer than 16% of companies have a program to “simplify work” or help employees deal with stress. More than 80% of all companies rate their business “highly complex” or “complex” for employees. The average mobile phone user checks their device 150 times a day. The “average” US worker works 47 hours and 49% work 50 hours or more per week, with 20% at 60+ hours per week 40% of the US population believes it is impossible to succeed at work and have a balanced family life. Employees are overwhelmed
  9. 9. Copyright © 2017 Deloitte Development LLC. All rights reserved. 9 We are working more hours: A vacation crisis • Since 2000, US workers lost an entire week of vacation, dropping average vacation days from 20.3 to 16.8 • Americans left 662 million unused vacation days forfeiting $66 billion in benefits • 39% “want to be seen as a work martyr” to their boss, yet these over-workers are less likely to receive a promotion or raise than their peers. • Employees who forfeit time are less likely than non-forfeiters to be promoted or receive a raise or bonus 35% of Millennial women feel guilty about taking time off (25% of men) Source: The State of American Vacation 2017, Project: Time Off https://www.projecttimeoff.com/state-american-vacation-2017
  10. 10. Copyright © 2017 Deloitte Development LLC. All rights reserved. 10 Cost of Stress at Work: $300 Billion per Year According to CDC Research in 2016, 40% of US workers believe they have very stressful jobs, resulting in accidents, fatigue, nervousness, and lack of energy. This translates to $300B spent on employee wellness, healthcare, and absence costs every year. Source: http://safetymanagement.eku.edu/resources/infographics/work-related-stress-on-employees-health/
  11. 11. Copyright © 2017 Deloitte Development LLC. All rights reserved. 11 Workplace culture is hot: wellbeing Google trends search for Wellbeing since 2004 Jump since 2008 recession Source: Google Trends
  12. 12. Copyright © 2017 Deloitte Development LLC. All rights reserved. 12 • 64% expect economic and political conditions to get worse in the coming two years • In mature markets, 64% of millennials believe they will be less well off financially than their parents and 69% say they will be less happy • 77% of Millennials actively take part in volunteerism and charity work to help improve their community • 88% of Millennials believe business can be a major force for positive social change Millennials focused on mission and purpose Citizenship on the rise Deloitte Millennial Survey, 2017, n=70,000
  13. 13. Copyright © 2017 Deloitte Development LLC. All rights reserved. 13 Need for Social Cohesion Happiness Index (1-10) Health: Life expectancy Income per Capita Social Support Trust In Government Freedom (wealth and social) US 2006 7.2 68.97 10.84 0.96 0.62 0.89 US 2016 6.8 70.08 10.87 0.9 0.72 0.8 US last ten Years -5.6% +1.6% +0.3% -6.2% -16.1% -10.1% Nordics 7.54 70.13 10.75 0.95 0.37 0.94 Nordics vs. US 10.9% +0.1% -1.1% +5.6% +48.6% +17.5% Higher Similar Lower Higher Way lower Higher Source: World Happiness Report, 2017, Heliwell, Sacks, Layard “In order for US happiness to reach 2006 levels through income growth the US GDP would have to be 54% higher than it is today.” We are not suffering from economic malaise we are suffering from social malaise.
  14. 14. Copyright © 2017 Deloitte Development LLC. All rights reserved. 14 Diversity Workplace culture is hot Google trends search for diversity & inclusion since 2004 Jump since 2008 Recession Source: Google Trends
  15. 15. Copyright © 2017 Deloitte Development LLC. All rights reserved. 15 Average 3.2 What are these companies doing? Summer, 2016 Glassdoor Bersin by Deloitte Research Engagement remains a challenge
  16. 16. Copyright © 2017 Deloitte Development LLC. All rights reserved. 16 What Gives People Energy At Work? Mindfulness Wellness Programs Health Insurance Recognition Feedback Systems Management Great technology Teamwork Email policies Unlimited Vacation High salaries Employee Resource Groups Performance Management Training Personal Coaching Safety Programs Stock Options Parties Free Food Fast Growth Exercise Facilities Game Rooms Yoga Employee Assistance Volunteer Time OffInspirational Leadership
  17. 17. Copyright © 2017 Deloitte Development LLC. All rights reserved. 17 47% of today’s jobs may be gone in 10 years 41% of US workforce participates in crowd/gig economy Essentially all the “new jobs” created since 2008 fall into the category of “alternative work” Is the Fear and Hype True? Source: Oxford Economics, National Bureau of Economic Research, and Bureau of Labor Statistics
  18. 18. Copyright © 2017 Deloitte Development LLC. All rights reserved. 18 What Gives People Energy At Work? Physical Needs Safety Love Belonging Accomplishment Esteem Self Actualization Salary Benefits Flexibility Inclusive Management Small Intimate Team Meaningful Work Mission and Purpose Personal Growth Teamwork
  19. 19. Copyright © 2017 Deloitte Development LLC. All rights reserved. 19 The Simply Irresistible Organization® Energy Demands A Focus on Employees First Meaningful work Hands-on management Positive work environment Growth opportunity Trust in leadership Autonomy Clear transparent goals Flexible, humane work environment Facilitated talent mobility Mission and purpose Selection to fit Coaching & feedback Recognition rich culture Career growth in many paths Investment in people, trust Small teams Leadership development Open flexible workspace Self and formal development Transparency and communication Time for slack Modern performance management Inclusive, diverse culture High impact learning culture Inspiration Collaboration and connection
  20. 20. Copyright © 2017 Deloitte Development LLC. All rights reserved. 20 Autonomy and freedom to contribute Select the right fit Small empowered teams Time for slack Meaningful work
  21. 21. Copyright © 2017 Deloitte Development LLC. All rights reserved. 21 A C D E B How things were How things “are” B A DCF G E Shared values and culture Transparent goals and projects Free flow of information and feedback People rewarded for their skills and abilities, not position How things work A network of teams Organization design will be challenged everywhere Source: Rewriting the rules for the digital age. 2017 Deloitte Global Human Capital Trends
  22. 22. Copyright © 2017 Deloitte Development LLC. All rights reserved. 22 Fantastic Work Environment Flexibility Humanistic workplace Culture of recognition Inclusion and diversity
  23. 23. Copyright © 2017 Deloitte Development LLC. All rights reserved. 23 Flexible, open, modern work environments
  24. 24. Copyright © 2017 Deloitte Development LLC. All rights reserved. 24 believe internal processes for collaboration are working well believe their employees are fully aligned with the corporate purpose 23% 14% are excellent at building a differentiated employee experience 22% are using design thinking as part of crafting the employee experience 10% Source: Deloitte and Facebook, “Transitioning to the future of work and the workplace,” November 2016 38% Say problem is urgent Culture, Engagement, and Beyond Focus on the Employee Experience
  25. 25. Copyright © 2017 Deloitte Development LLC. All rights reserved. 25 Factors that link culture and engagement Culture: The way things work around here Engagement: The way people feel about the way things work around here The work environment Reward systems Development and career Compensation Recognition Clear goals Meaningful workHands-on managementTrusted leadership Risk and governance Courage Innovation Mission and purpose Inclusion
  26. 26. Copyright © 2017 Deloitte Development LLC. All rights reserved. 26 Essential talent activities Standalone disconnected staffing, training, and performance practices Level 1 Critical talent growth Critical talent segments, focus on hiring, training, performance Level 2 Managed talent relationships Workforce planning, development planning, leadership development integrated into talent strategy Level 3 Inclusive talent system Talent strategies integrated with inclusion, diversity, and culture Level 4 BersinbyDeloitte 10% 19% 59% 12% The New Bersin Talent Management Maturity Model Source: Bersin by Deloitte, Deloitte Consulting LLP, 2015. Inclusive talent practices drive financial results
  27. 27. Copyright © 2017 Deloitte Development LLC. All rights reserved. 27 Clear and transparent goals Coaching not evaluation Invest in development of managers Agile performance management Supportive management
  28. 28. Copyright © 2017 Deloitte Development LLC. All rights reserved. 28 Enterprise feedback architecture The listening organization Social media monitoring Job boards & adsEmployment brand Customer satisfaction Anonymous feedback tools Pulse surveys Annual survey Performance check-ins Exit interviews Performance appraisals Integrated reporting & analytics Sentiment analysis Network analysis
  29. 29. Copyright © 2017 Deloitte Development LLC. All rights reserved. 29 EmployeeVitality Business Performance Cost Reduction Labor Productivity Retention Productivity Collaboration Team Performance Leadership Health Monitoring Employee Assistance Medical Benefits Fitness Challenges Nutrition Exercise Sleep Stress Sustainable Performance Recognition Skills and Training Work Environment Rewards Leadership Management Clear Goals Growth Opportunities Drive Wellbeing Self Discovery Career Purpose Mindfulness Abundance Mentality Positive Thinking Culture Fit Family From Wellness to WellBeing to Performance
  30. 30. Copyright © 2017 Deloitte Development LLC. All rights reserved. 30 Wellness Apps Now Used More Than Twitter 290% reduction in workers compensation claims 65% more engaged than non-users 9% greater work productivity Source: Virgin Pulse Client Research, 2017
  31. 31. Copyright © 2017 Deloitte Development LLC. All rights reserved. 31 Training and support on the job Career and talent mobility Dynamic self-directed learning High-impact learning culture Growth opportunities
  32. 32. Copyright © 2017 Deloitte Development LLC. All rights reserved. 32 How Development Creates Energy PerformanceorProductivity Time Onboarding Training Plateau New Assignment Discretionary Effort from High Engagement Coaching, management support, feeling of value and success.. meaningful organizational and peer recognition.
  33. 33. Copyright © 2017 Deloitte Development LLC. All rights reserved. 33 Four primary approaches to career management Focused on preparing & moving workers through well-defined career paths designed to follow the organizational structure. Focused on moving workers through well-defined levels of an organization, with flexibility in career paths and jobs to accommodate development & organizational needs Focused on facilitating the work by assembling the most appropriate talent. Movement based on worker interest and organization need. Often used in team environments. Focused on facilitating the work by finding and utilizing the best talent sources – either external or internal 19% 32% 33% 16% Structured Flexible Open Transitory Source: Rewriting the rules for the digital age. 2017 Deloitte Global Human Capital Trends
  34. 34. Copyright © 2017 Deloitte Development LLC. All rights reserved. 34 Mission and purpose Investment in people Transparency Inspiration Trust in leadership
  35. 35. Copyright © 2017 Deloitte Development LLC. All rights reserved. 35 What matters to employees Culture, value, leadership, and career (the big four) 0.00 0.12 0.13 0.22 0.28 0.30 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 Year founded (age) Compensation & benefits Work life balance Career opportunities Senior leadership Culture and values Correlation of employment factors to Glassdoor recommendations as place to work Culture and leadership are 3X more important than salary in your employment brand. Career development and learning are almost 2X more important than comp, benefits, and work environment.Source: Bersin Research and Glassdoor data
  36. 36. Copyright © 2017 Deloitte Development LLC. All rights reserved. 3636 Source: Firms of Endearment, by R. Sisodia, D. Wolf, and J. Sheth (2007) 89% of companies rate culture as an urgent issue… …yet only 14% really know what “good culture” looks like Companies with a strong mission and purpose outperformed the S&P 500 by 8-fold over a 20 year period. These companies performed 4x higher than “Good to Great” companies. Culture as business strategy
  37. 37. Copyright © 2017 Deloitte Development LLC. All rights reserved. 37 Companies with “soul” had a 1026% return from 1996 through 2006, 8x higher than S&P 400 firms Companies with “soul” experience: • Much higher engagement and retention • Better customer service • Long-term profitability • Note: 77% of Millennials now actively take part in volunteerism in their community Source: Simply Irresistible: Engaging the 21st Century Workforce, Bersin by Deloitte, Deloitte Consulting LLP, 2014, Deloitte Millennial Study 2016 Importance of mission and purpose
  38. 38. The Bottom Line: Building a Simply Irresistible Organization Drives Energy and Productivity
  39. 39. Copyright © 2017 Deloitte Development LLC. All rights reserved. 39 Is your company’s collective worth more than the sum of the individuals? The Essential Question Are leaders and individuals working together to optimize the whole? Or are they acting in their own self- interests?
  40. 40. Copyright © 2017 Deloitte Development LLC. All rights reserved. 40 What are you doing to Create Energy?
  41. 41. About Deloitte As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of our legal structure. Certain services may not be available to attest clients under the rules and regulations of public accounting. This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. Copyright © 2017 Deloitte Development LLC. All rights reserved.

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