Employee Engagement Today: The Simply Irresistible Organization

Qualtrics
8 Dec 2016
Employee Engagement Today: The Simply Irresistible Organization
Employee Engagement Today: The Simply Irresistible Organization
Employee Engagement Today: The Simply Irresistible Organization
Employee Engagement Today: The Simply Irresistible Organization
Employee Engagement Today: The Simply Irresistible Organization
Employee Engagement Today: The Simply Irresistible Organization
Employee Engagement Today: The Simply Irresistible Organization
Employee Engagement Today: The Simply Irresistible Organization
Employee Engagement Today: The Simply Irresistible Organization
Employee Engagement Today: The Simply Irresistible Organization
Employee Engagement Today: The Simply Irresistible Organization
Employee Engagement Today: The Simply Irresistible Organization
Employee Engagement Today: The Simply Irresistible Organization
Employee Engagement Today: The Simply Irresistible Organization
Employee Engagement Today: The Simply Irresistible Organization
Employee Engagement Today: The Simply Irresistible Organization
Employee Engagement Today: The Simply Irresistible Organization
Employee Engagement Today: The Simply Irresistible Organization
Employee Engagement Today: The Simply Irresistible Organization
Employee Engagement Today: The Simply Irresistible Organization
Employee Engagement Today: The Simply Irresistible Organization
Employee Engagement Today: The Simply Irresistible Organization
Employee Engagement Today: The Simply Irresistible Organization
Employee Engagement Today: The Simply Irresistible Organization
Employee Engagement Today: The Simply Irresistible Organization
Employee Engagement Today: The Simply Irresistible Organization
Employee Engagement Today: The Simply Irresistible Organization
Employee Engagement Today: The Simply Irresistible Organization
Employee Engagement Today: The Simply Irresistible Organization
Employee Engagement Today: The Simply Irresistible Organization
Employee Engagement Today: The Simply Irresistible Organization
Employee Engagement Today: The Simply Irresistible Organization
Employee Engagement Today: The Simply Irresistible Organization
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Employee Engagement Today: The Simply Irresistible Organization

Notes de l'éditeur

  1. The findings 92 percent of companies believe that redesigning the organization is important, making it No. 1 in ranked importance among this year’s respondents. Companies are decentralizing authority, moving toward product- and customer-centric organizations, and forming dynamic networks of highly empowered teams that communicate and coordinate activities in unique and powerful ways. Three in four respondents report that they are either currently restructuring their organization or have recently completed the process.   Why is this? A new mode of organization—a “network of teams” with a high degree of empowerment, strong communication, and rapid information flow—is now sweeping business and governments around the world. The growth of the Millennial demographic, the diversity of global teams, and the need to innovate and work more closely with customers are driving a new organizational flexibility among high-performing companies. They are operating as a network of teams alongside traditional structures, with people moving from team to team rather than remaining in static formal configurations. Two major factors are driving change. Small teams can deliver results faster, engage people better, and stay closer to their mission. Second, the digital revolution helps teams stay aligned. Today, teams use web or mobile apps to share goals, keep up to date on customer interactions, communicate product quality or brand issues, and build a common culture.   What’s needed? The days of the top-down hierarchical organization are slowly coming to an end, but changing the organization chart is only a small part of the transition to the network of teams. Now, more than ever, is the time to challenge traditional organizational structures, empower teams, hold people accountable, and focus on building a culture of shared information, shared vision, and shared direction.
  2. Our research shows that, in 2014, it will be hard to keep good people. “Responsible companies” had much higher levels of engagement and retention, customer service, and long-term profitability. People want to work for organizations that fulfill a larger mission. People want to work for organizations that are inspiring to work for – and offer a greater sense of purpose (this is even more true for Millennials – which will be 75% of our workforce in 10 years.)   People also desire flexibility or control/autonomy over workload, time and schedules, as well as opportunities to grow and contribute. All of this (plus more – inclusion, workspace design, etc.) is part of a holistic work environment. 68% of women without children would rather have more free time than make more money — even more than those with children (62%). More magazine – 2013, “Women in Workplace Study,” http://www.more.com/flexible-job-survey One of every five employees cares for elderly parents, a number that could increase to almost half of the workforce over the next several years. http://whenworkworks.org/research/downloads/FlexAtAGlance.pdf 40% of professional men work more than 50 hours per week. Of these, 80% would like to work fewer hours. We have the “overwhelmed employee” problem to address. Center for American Progress. August, 2013 http://www.americanprogress.org/wp-content/uploads/issues/2012/08/pdf/flexibility_factsheet.pdf Transition: So let’s talk about this a bit more on the next slide
  3. 12/8/2016
  4. First let’s talk about Work itself. Without the right job, nobody finds their employer irresistible. There are four keys here. The first is designing a job which allows meaningful contribution – giving people autonomy, and freedom add real value. Zeynte Ton, the MIT business professor, studied the difference between “good jobs” and “bad jobs” in her new book “The Good Jobs Strategy.” Her research, which focuses heavily on retail, shows that companies that design jobs for higher value far outperform their competitors. She lists Home Depot, Costco, Nordstrom, UPS, and Mercedona as firms that pay their people 2-3X their peers, lavish them with training, yet are far more profitable than their “low cost competitors.” Why? In these companies, people have the time, motivation, and skills to cover for each other, rearrange the store to help sell more, and feel good about serving customers. How many times have you walked into a store when there’s nobody around and felt like walking out? Her research shows that companies with higher payroll per square foot are MORE PROFITABLE. The second key Meaningful Work is selecting the right people. We did research in 2011 and looked at the performance of cosmetic sales people, retail sales workers, customer service agents, and life scientists. In each of the companies we studied, we found a unique and company-specific set of qualities that helped fit the right person into the right job. At Bon-Ton Stores, this process of using I/O science to find just the right fit resulted in a doubling of sales in the first 12 months. The third key is the use of small, self-organizing teams. In the 1980s Fred Brooks learned that when you put more software engineers into a large project it actually goes slower, leading to the beginning of the agile software movement. Jeff Bezos uses the “two pizza rule” – if there are more than two pizzas at lunch, the team is too big. The fourth is to design slack into the system. People need time – time to improve the place, relax, learn, and collaborate. Google designed “20% time” – at Costco, when the store is slow, they let people go home for a few hours. When you “understaff” and overwork you create errors, waste, and ultimately burn people out. When you give people a little extra time you get engagement, improvement, and learning..
  5. Now let’s talk about management. We all know that in today’s work environment, management is perhaps your greatest key to success. But as I mentioned earlier, management and leadership are the biggest challenges companies face. What’s going on? We have to recognize that the role of a “manager” has dramatically changed. While managers still supervise and direct, today they must serve as people who coach, inspire, and help their team. And the days of managers “sitting behind a desk” are over – they need to understand the work their people do. As GE put it, managers have to be “more electric” and “less general.” We also have to invest in first- and second-line leaders. I met with IBM, one of the best managed companies in the world, late last year and the CHRO Diane Gherson told us they found that over the years she believed they spent too much money on “leadership” and not enough on “management” – and I would say that I hear this over and over around the world. In January I had the opportunity to visit GE’s Crotonville leadership center, and I was amazed at the level of investment, focus, and passion the company has about management. At GE and other winning companies the role of manager is honored, and the company continuously invests in the tools, coaching and support managers need to be effective. Which leads me to another topic I want to touch on – the whole issue of performance management and the performance appraisal.
  6. The third element in the irresistible organization is “Flexibility and Inclusion.” As you look at the “best places to work” and “firms of endearment” you find something else: a special, highly flexible, humanistic work environment. Today most of us struggle with tremendously complicated lives. We have children at home, elderly parents, or health and wellness issues of our own. According to More Magazine, 68% of women would rather have more free time than make more money —and while 40% of professional men work more than 50 hours per week, 80% would like to work fewer hours. So if we want people to engage with work, we have to give them a flexible and supportive work environment. SAS, the #2 place to work for the last 15 years, has an in-house day care center, gym, and pool. Their turnover rate is below 2%. Google has a bowling alley and yoga rooms. But flexibility goes far beyond just having a nice place to hang out. The workplace also has to be open, welcoming, and warm . Michael Bloomberg ripped out all the offices in NY City Hall and created an open bullpen to encourage collaboration. Companies like Deloitte, WL Gore, Apple, and Pixar design their facilities to bring together to help build relationships and trust. We all know the story of Yahoo asking employees to stop working at home and the failure of Best Buy to drive “results only work environment.” We aren’t proposing that people stop coming into the office. But we do have to create flexibility, give people tools and freedom to work the way they want. According to Entrepreneur magazine, companies with flexible work options have 40% higher levels of innovation and 12% higher employee satisfaction. And let me mention inclusion and diversity. There is no way you will become an “irresistible organization” unless you are truly inclusive to all – all races, genders, ages, and ways of thinking. This week we are launching our new diversity and inclusion research and the startling finding is that while 78% of respondents feel their companies promote themselves as highly diverse and inclusive, only 11% strongly agree that they are! Our research shows that “highly inclusive teams” outperform non-inclusive teams by 8:1. Remember David Rock’s research? When you don’t feel “included,” you feel threatened, and your productivity, customer service, and creativity goes away.
  7. The fourth element of being irresistible is designing your organization for personal and professional growth. One of the top reasons people leave organizations is that they “can’t grow here.” I won’t spend a lot of time on high-impact learning, you’ve heard that from me many times. But what you do have to focus on is three big things: First, your management and structure must facilitate talent mobility. Managers should be incented to move people and create programs to help people succeed in new positions. Kim Lamoureux’s new succession management research, which is being launched this week, shows that fewer than 20% of companies have any succession plans at the first and second line level and only 3% have reached what a level we call “transparent talent mobility.” Facebook, Google, and Dropbox all have rotational assignment programs for new college graduates. United Health Group is developing a company-wide online assessment and job seeker program for their staff. I talked with Telstra, the largest telco in Australia, about bringing in professional career coaches to support managers and employees as they look for new jobs. You should invest in this area – today’s high-performers see work as a “tour of duty” and if you’re not giving them that tour they’ll find it elsewhere. Second, you must redesign your L&D function to be “pull” not “push.” Google, YouTube, and MOOCs are now becoming the fastest growing ways people learn, we must redesign your own L&D function to focus on making content easy to find, facilitating sharing of expertise, and adding lots of “flipped learning” to the mix. Third, you must take on a “supply chain” view of skills. As we wrote about in the Human Capital Trends study, it often takes many years to build expertise in various roles. Oil and Gas companies tell us it takes 5-7 years to reach “time to autonomy” in exploration and production. So if you are not constantly looking at your skills supply chain – and I’m talking about functional and technical skills, not just leadership – you will fall behind. This means changing the way people think about their career, giving managers tools to develop and move people, creating technical and functional career ladders, and convincing top management that investment in learning and mobility is well worth the money. Today we can no longer “hire” for top talent – we have to build it. Make your company a place to learn and grow and you will be amazed at how performance goes up.
  8. Finally, I want to close on the topic of leadership. When you look at the “irresistible organizations” around the world, you always find top leaders who really care. They build trust, meaning, and purpose into their organizations – and they understand how to connect and take care of people. As Benjamin Disraeli said long ago, “When I was young I admired people who were clever, as I got old I admired people who were kind.” As Jeff Bezos put it, “It’s easier to be clever than it is to be kind.” Leaders today have to work hard to consider all the stakeholders in a business: yes they have to keep investors happy, but without a sense of “soul” and “love” for the organization itself, chasing profits alone will not succeed. Remember the story of Circuit City and how they fired 20% of their workforce to make their numbers back in the mid-2000s? They’re gone today. Look at what happened to Enron and MCI – these companies that lost the trust of their stakeholders don’t just under-perform, they disappear. And leaders must be willing to invest. Companies that try to starve their spending on people shoot themselves in the foot. Efficiently-run organizations invest heavily in people at all levels, they partner with their labor unions, and they pay above average wages. And they see inordinate amounts of employee loyalty and engagement and profit as a result. Finally don’t forget inspiration. It has become one of the top leadership values in business today. People will follow you if they believe in your mission – and being “irresistible” is often as much about ethos as it is about benefits.
  9. Key points to highlight: Over the last two years, we have discovered that responses to questions 1, 2, and 4 are the strongest drivers of increasing engagement and performance We have also discovered that if the responses to questions 4 and 8 decline over time, then there is a risk of voluntary attrition for the responder