delivering worksite wellness programs that empower healthy lifestyles
Driving Performance with Engaged Employees
A presentation for:
SBANE Members
June 5, 2012

Agenda
 What is engagement?
 Why does engagement matter?
 What is the state of engagement in general?
 What drives engagement?
 How do I assess engagement in my company?
 Where do I start to improve engagement?
2

Introduction
“Eighty percent of success in
life is showing up“
Woody Allen
3

What is Engagement?
4

What is Engagement?
 “A positive, enthusiastic and effective connection with work that
motivates an employee to invest in getting the job done, not just well
but with excellence because the work energizes the person.”
Sloan Center on Aging & Work, BC
 “Personal engagement is defined by feelings of urgency, focus,
enthusiasm and intensity. It is the energized feeling that an employee
has about work.”
SHRM 2011 Employee Job Satisfaction and Engagement Survey
 “Research shows that engaged employees are more productive
employees. They are more profitable, more customer-focused, safer,
and more likely to withstand temptations to leave the organization. In
the best organizations, employee engagement transcends a human
resources initiative. – it is the way to do business.”
Employee Engagement What‟s your Engagement Ratio – Gallup Consulting
5

Engaged Employees
Three Types of Employees
ENGAGED employees work with passion and feel a
1 profound connection to their company. They drive
innovation and move the organization forward.
NOT-ENGAGED employees are essentially „checked
out‟. They‟re sleepwalking through their work day,
2 putting time – but not energy or passion – into their
work
ACTIVELY DISENGAGED employees aren‟t just
unhappy at work; they‟re busy acting out their
3 unhappiness. Every day, those workers undermine what
their engaged coworkers accomplish.
Source: Gallup Management Journal; “At Work, Feeling Good Matters” by Jerry Krueger and Emily Killham
6

What is Engagement?
 Engagement Opinions - The “feel” of employee engagement
• Employees are determined to accomplish their work goals AND
confident that they could meet those goals
34% strongly agree 49% agree 83% TOTAL
 Engagement Behaviors - The “look” of employee engagement
• Employees are encouraged to be proactive and take action when
they see a problem or opportunity
19% strongly agree 41% agree 60% TOTAL
 The “conditions” of employee engagement
• Employees need the capacity to engage, reasons to engage and
the feeling that they are free to engage.
Source: SHRM 2011 Employee Job Satisfaction and Engagement Survey.
7

Maslow‟s Hierarchy
8

Employee Hierarchy of Needs
Career Success
Training and Development
Recognition
Health/Welfare Benefits
Compensation
Job Security
9

Engagement is Unlocking Potential
10

Why does Engagement Matter?
 Highly engaged workers tend to have a 26% higher
productivity rate, a lower turnover rate, and miss 20% fewer
work days.
 A survey of 400 companies by Hay Associates showed that
those in the top quartile on engagement had 2.5 times the
revenue of comparison companies.
 According to Gallup, more than two-thirds of American
workers are disengaged in their workplaces. As of Q3 2005,
actively disengaged employees cost the US economy about
$370B in lost productivity per year.
11

Cost of Disengagement
 Decreased productivity costs of $3.4 - $10K per disengaged
employee (Gallup Research)
 More sick days and tardiness
 Missed deadlines and poor sales results
 Customer complaints
 Cynicism, negativity, and “can‟t do” – versus “can do” attitude
Source: June, 2011 PeopleMetrics
12

Current State of Engagement
 According to Gallup, more than two-thirds of American workers
are disengaged in their workplaces.
 Gallup Engagement Ratio: a macro-level indicator of
organizational health
• World class organizations: 9.57 engaged:1 actively disengaged
employee
• Average organizations: 1.83 engaged:1 actively disengaged
employee
 Cost of a disengaged employee – estimated at $16K per
employee
• lost productivity + absenteeism + customer dissatisfaction +
product quality/rework
13

Current State of Engagement
 SHRM 2011 survey responses:
• 99% of HR leaders said engagement is a key issue to but
nonstrategic engagement and recognition programs continue to
pervade companies
• Employee engagement is the most critical HR challenge in the next
three to five years, with 99% of HR professionals listing it as
important or very important
• 86% of HR leaders track engagement
• 71% monitor in exit interviews
 Cost of turnover – missed opportunity to understand what it
takes to engage employees
• Rule of thumb – cost 3x as much to replace an employee as it does
to keep them
Source: 2011 SHRM/Globoforce Employee Recognition Tracker Survey
14

Case Examples
 Diamond Antenna – sense of purpose
• Design and manufacture rotary components
• Asked sales to identify end use of product with 3 questions
• Used variety of visuals to generate interest & enthusiasm
 Rapid7 – impact of culture on success
• Leading provider of security risk intelligence solutions
• Over 900% increase in revenue over last 4 years
• Employee passion, drive, commitment and knowledge are key
• Work hard and play hard – celebrating success is company‟s DNA
15

Drivers of Engagement
16

What Drives Engagement?
BENEFITS OF ENGAGEMENT BENEFITS OF ENGAGEMENT
FOR EMPLOYEES FOR EMPLOYERS
Engaged employees report lower Engaged employees use less health
stress. care.
Engaged employees report higher Engaged employees take fewer sick
job satisfaction. days.
Engaged employees indicate more Engaged employees are more
satisfaction with personal lives, productive.
overall.
Engaged employees have longer
tenure.
Engaged employees create stronger
customer relationships.
Engaging the 21st Century Multi-Generational Workforce – Findings from the Age & Generations Study 17

Drivers of Engagement
Source: Sloan Center on Aging & Work, BC – Engaging the 21st Century Multi-Generational Workforce 18

Drivers of Engagement
Source: Sloan Center on Aging & Work, BC – Engaging the 21st Century Multi-Generational Workforce 19

Assessing Engagement
20

Assessing Engagement at Your Workplace
 What do we need to know?
 What information do we have?
 How do we get the data we need?
 When should we get it?
 Where does YOUR organization stand?
21

One Model – Gallup‟s 12 Questions
 Do you know what is expected?
 Do you have materials and equipment to do your best?
 Do you have the chance to do your best every day?
 Were you recognized or praised in the last 7 days?
 Does your boss or someone at work care about you?
 Does someone at work encourage your development?
22

One Model – Gallup‟s 12 Questions (continued)
 Do your opinions count?
 Does the company‟s mission and purpose make you feel your
job is important?
 Are your colleagues committed to doing quality work?
 Do you have a best friend at work?
 Has someone discussed your progress in the last 6 months?
 Have you had chances to learn and grow during the last year?
23

Assessing Engagement at Your Workplace
 Connection
• Do managers link engagement to business priorities?
 Commitment
• Do managers at all levels recognize “above & beyond”?
 Attitudes
• Do employees describe their work as energizing and meaningful?
 Helps
• What promoters of engagement exist?
 Barriers
• What has to be overcome?
 Audits
• Employee/job satisfaction survey
• Done by a third party provide anonymity and objectivity
• Management needs to be willing to take action on the results
24

Assessing Engagement in Your Organization
Utrecht Work Engagement Scale – Sloan study
Find out what Work out ways
makes YOUR to provide it to
employees keep the
tick… wheels moving.
Group Activity
Source: Sloan Center on Aging & Work, BC – Engaging the 21st Century Multi-Generational Workforce 25

Where to Start to Impact
Engagement
26

Where to Start to Impact Engagement
 Build Engagement into all your business practices
• i.e., Recruiting, Retention, Performance Evaluations
 Prioritize what‟s most important
• Maslow‟s model – satisfy basic employee needs first
 Segment the strategy and tactics
• Use your assessment info
• A diverse workgroup will need a variety of engagement factors
 Examples:
• Summary of Factors Related to the Levels of Engagement by
Age/Generational Group
• Total Rewards Checklist
27

Total Reward Definitions
TOTAL REWARDS
DEFINITIONS
COMPONENT
Pay provided by an employer to an employee for services rendered (i.e. time, effort, and skill). Includes
COMPENSATION both fixed and variable pay tied to levels of performance.
Programs an employer uses to supplement the cash compensation that employees receive. These health,
BENEFITS income protection, savings and retirement programs provide security for employees and their families.
A specific set of organizational practices, policies and programs, plus a philosophy, that actively supports
WORK-LIFE efforts to help employees achieve success at both work and home.
Performance: the alignment of organizational, team and individual efforts toward the achievement of
business goals and organizational success. It includes establishing expectations, skill demonstration,
assessment, feedback and continuous improvement. Recognition: Acknowledges or gives special
attention to employee actions, efforts, behavior or performance. It meets an intrinsic psychological need
PERFORMANCE & for appreciation of one‟s efforts and can support business strategy by reinforcing certain behaviors (e.g.
RECOGNITION extraordinary accomplishments) that contribute to organizational success. Whether formal or informal,
recognition programs acknowledge employee contributions immediately after the fact, usually without
predetermined goals or performance levels that the employee is expected to achieve. Awards can be
cash or noncash (e.g. verbal recognition, trophies, certificates, plaques, dinners, tickets, etc.)
Development: A set of learning experiences designed to enhance employees‟ applied skills and
DEVELOPMENT & competencies. Development engages employees to perform better and engages leaders to advance their
organizations‟ people strategies. Career Opportunities: Involve the plan for employees to advance their
CAREER career goals. May include advancement into a more responsible position in an organization. The
OPPORTUNITIES company supports career opportunities internally so that talented employees are deployed in positions that
enable them to deliver their greatest value to the organization.
Source: WorldatWork 28

29

Tactics to Improve
Engagement 30

Tactics – Promote Positive Culture
 “Thinner Winner”
 “Live Well” cookbook
 Foosball or ping pong table
 Healthy office parties
 Walking meetings
 Gym subsidies
 Recognition – thank you, money/gift cards, senior managers,
peers
Let them know you care!
31

Tactics – Effective Leadership
“Know them. Grow them. Inspire them.
Involve them. Reward them.”
Source: Towers Watson Viewpoints. Employee Well-Being: Taking Engagement and
32
Performance to the Next Level. D. Fairhurst, J. O‟Connor. 2010

Tactics – Communicate A Sense of Purpose
Stay focused on your purpose…
The business and your job, and how you make a difference.
33

Tactics – Compensation and Performance
 Provide internally fair and competitive base pay
• Benchmark to know where you are
• Consider what you can afford
• Communicate the basics about how pay decisions are made
 Tell employees where they stand with a strong performance
management program
• Set SMART* goals at the start of the year
• Provide ongoing feedback
• Use a consistent, easy-to-complete form with clear rating definitions
• Deliver timely annual reviews
• Make it count – tie rewards to performance
*Specific, Measurable, Achievable, Relevant and Time bound
34

Build on the Foundation
 Develop your leaders and employees
 Communicate the total investment you make to employees
 Offer a simple, company-sponsored recognition program
 Build a culture of success, team spirit and celebration
35

Well-being Drives Engagement
36

What is Well-being?
“The „well‟ being is not necessarily the strong, the
brave, the successful, the young, the whole, or even the
illness-free being. A person can be living a process of
wellness and yet be physically handicapped; aged;
scared in the face of challenge; in pain; imperfect. No
matter what your current state of health, you can begin
to appreciate yourself as a growing, changing person
and allow yourself to move toward a happier life and
positive health.”
Source: Wellness Workbook: How to Achieve
Enduring Health and Vitality, 3rd Edition, John W.
Travis, M.D., and Regina Sara Ryan
37

Relative value of health to the organization
27%
41%
22%
10%
Lost productivity: job performance Lost productivity: absence
All medical costs Wage replacement
Source: Integrated Benefits Institute
38

Causes of presenteeism
 Health-related issues
• Allergies
• Arthritis
• Asthma
• Any cancer
• Depression/sadness/mental illness
• Diabetes
• Heart disease
• Hypertension
• Migraine/headache
• Respiratory infections
39

Why are employees disengaged?
40

Causes of presenteeism
 Non-health-related issues
• Distractions
• Financial troubles or „credit stress‟
• Child/eldercare
• Divorce/family problems
• Employer/employee conflict
• Workplace conditions
• Temperature, lighting, air quality, communications
41

What‟s the issue?
 Unhealthy lifestyle choices
• Smoking
• Lack of seat belt use
• Inadequate sleep
• OTC medication abuse
• Excessive caffeine use
• Little physical activity
• Lack of periodic screenings
• High saturated fat diets
42

Engagement and Well Being
Engagement in the absence Engagement with well-being
of well-being can lead to a enables sustained employee
burned-out workforce performance
Low Well-Being High Well-Being
High Unstable Engagement Sustainable Engagement
Engagement
Low Engagement Chronic Disengagement Complacent
Disengagement
Source: Towers Watson Viewpoints. Employee Well-Being: Taking Engagement and
Performance to the Next Level. D. Fairhurst, J. O‟Connor. 2010
43

Drivers of Well-Being
 Leader/Manager Effectiveness
• Immediate Management
• Senior Leadership
 Positive Working Relationships
 Competence and Environmental Mastery
 Sense of Purpose
 Personal Growth and Aspiration
 Rewards, Performance and Security
44

Wrap Up
 What is engagement?
 Why does engagement matter?
 What is the state of engagement in general?
 What drives engagement?
 How do I assess engagement in my company?
 Where do I start to improve engagement?
45

Contact Information
 Erika Chin
Executive Director
Chin Compensation & Performance
978-621-5171
echinccp@comcast.net
 Karyn White, PHR
Human Resources Director
Diamond Antenna and Microwave Corp.
978-486-0039
kwhite@diamondantenna.com
 Mari Ryan, MBA, MHP, CWWPC
CEO
AdvancingWellness
617-921-0784
mari@advwellness.com 46