Presentation of Employee Engagement in Organisations containing results from recent global survey and forthcoming VaLUENTiS report 'Employee Engagement in Organisations: State of the Notion' 2013
VaLUENTiS Emp Eng Osney Media Conference pres110913 pres final dist copy
1. Employee Engagement
in Organisations:
The first days for ambitious HR
functions
‘Think
HR.
Think
Human
Capital.’
Tour
2013
Employee Engagement Conference
Osney Media
London UK September 2013
Nicholas J Higgins, DrHCMI MSc Fin (LBS) MBA (OBS) MCMI
CEO, VaLUENTiS Ltd & Dean, International
School of Human Capital Management (‘ISHCM’)
4. • First British firm to introduce Employee
Engagement model (known as the ‘5D’)
• First to publish live client HR scorecard
linking with employee engagement
• First to introduce CQ&Q people
management evaluation tool
(‘Management Pathfinder’ and ‘VB-HR
Rating’)
• First to introduce global value-based
HR function (VB-HR™) profiler
• First to comprehensively evaluate the
value of the Investors in People
framework
• First to publish global Human Capital
Reporting Standards (GHCRS2006 open
source)…
• Globally, first to set-up dedicated,
practitioner-based Business School on
Human Capital Management
• First to introduce Masters in Human
Capital Management
• First British business school to offer
dedicated people management
qualifications online (HCMI)
• Globally, first School to offer Masters
qualification with CMAS® technology
5. Source: The Enterprise-wide Application of Human Capital Intelligence (HCMi), N J Higgins & G Cohen ,VaLUENTiS white paper
When leading edge means leading edge…
HCM Intelligence – ‘The Full Monty’
HC Measurement
& evaluation
•Absenteeism
•Turnover (voluntary)
•Turnover (involuntary)
•Recruitment cost per FTE
•Time to fill
•Training days per FTE
•Training spend per FTE
•Revenue per FTE
•Profitper FTE
•HR FTE: FTE
•Employee costs per FTE
•HR costs per FTE
•% females in senior management roles
5.2%
8.6%
1.8%
£12,569
38 days
3.5
£871
£365,121
£67,119
1:112
£27,469
£1356
23%
•HCI (used with revenue per FTE to calculate HCIR per FTE)
•HR budget (adjusted using standard template)
•MD spend
•Internal/external management position fill ratio
•No of industrial tribunals
•% union membership
•HR service delivery (IT mix)
Plus portfolio of tertiary indicators which are more context/organisation specific
•HR spend per FTE
(adjusted using standard template)
•Formal job offer success
Plus portfolio of tertiary indicators which are more
context/organisation specific
•HC leverage
•HCIR per FTE
•HC Investment ratio
•Employee engagement
•Voluntary turnover1
•Absenteeism1
•Accident/injury rate
•VB-HR™
Rating
•HC Performance
•HCI (used with revenue per FTE to calculate HCIR per FTE)
•HR budget (adjusted using standard template)
•MD spend
•Internal/external management position fill ratio
•No of industrial tribunals
•% union membership
•HR service delivery (IT mix)
Plus portfolio of tertiary indicators which are more context/organisation specific
•HR spend per FTE
(adjusted using standard template)
•Formal job offer success
Plus portfolio of tertiary indicators which are more
context/organisation specific
•HC leverage
•HCIR per FTE
•HC Investment ratio
•Employee engagement
•Voluntary turnover1
•Absenteeism1
•Accident/injury rate
•VB-HR™
Rating
•HC Performance
DIVERSITY
EMPLOYEE
CENTRICITY
EMPLOYER
BRAND
HR
GOVERNANCE
HR
OPERATIONAL
EXCELLENCE
LEADERSHIP
ORGANISATION
CLIMATEORGANISATION
COMMUNICATIONS
ORGANISATION
DESIGN
PERFORMANCE
ORIENTATION
RESOURCING
RETENTION
REWARD
TALENT
MANAGEMENT
TRAINING &
DEVELOPMENT
79.6
+
81.3
+
74.2
67.4
+
61.5
43.1 +
48.7
64.2
62.8
59.460.3
+
68.4
65.7
59.9 41.6
DIVERSITY
EMPLOYEE
CENTRICITY
EMPLOYER
BRAND
HR
GOVERNANCE
HR
OPERATIONAL
EXCELLENCE
LEADERSHIP
ORGANISATION
CLIMATEORGANISATION
COMMUNICATIONS
ORGANISATION
DESIGN
PERFORMANCE
ORIENTATION
RESOURCING
RETENTION
REWARD
TALENT
MANAGEMENT
TRAINING &
DEVELOPMENT
79.6
+
81.3
+
74.2
67.4
+
61.5
43.1 +
48.7
64.2
62.8
59.460.3
+
68.4
65.7
59.9 41.6
Human
Capital
Practices
Human
Capital
Practices
External
Value
Proposition
External
Value
Proposition
Customer
Satisfaction
Customer
Satisfaction
Customer
Loyalty
Customer
Loyalty
Revenue
Growth
Revenue
Growth
ProfitabilityProfitability
Employee
Retention
Employee
Retention
Individual/
team
Productivity
Individual/
team
Productivity
‘Local’
Management
‘Local’
Management
Cost controlCost control
ComplianceCompliance
Portfolio mixPortfolio mix
X-sellingX-selling
ServiceService
Work valuesWork values
Line-of-sightLine-of-sight
DevelopmentDevelopment
RewardReward
Work environmentWork environment
Employee
Engagement
Employee
Engagement
Leadership
&
governance
Leadership
&
governance
Shareholder
value
Shareholder
valueEmployer
brand
Employer
brand
Human
Capital
Practices
Human
Capital
Practices
External
Value
Proposition
External
Value
Proposition
Customer
Satisfaction
Customer
Satisfaction
Customer
Loyalty
Customer
Loyalty
Revenue
Growth
Revenue
Growth
ProfitabilityProfitability
Employee
Retention
Employee
Retention
Individual/
team
Productivity
Individual/
team
Productivity
‘Local’
Management
‘Local’
Management
Cost controlCost control
ComplianceCompliance
Portfolio mixPortfolio mix
X-sellingX-selling
ServiceService
Work valuesWork values
Line-of-sightLine-of-sight
DevelopmentDevelopment
RewardReward
Work environmentWork environment
Employee
Engagement
Employee
Engagement
Leadership
&
governance
Leadership
&
governance
Shareholder
value
Shareholder
valueEmployer
brand
Employer
brand
VB-HR™ Rating
Workforce
Intelligence
HR Strategy
OrganisationalHCM
Capital
B B R
BB
RCCCCCC
BB
RCCCB
HCM
Architecture
BB
RBB
Management Employees
BB
RCCCB
BB
RCCCCCC
HR Customer-
agency
BB
HR Capability
BB
Human
Capital
HR Functional
Capital
Human Capital Management
Overall
ranking
AAA
AA
A
BBB
BB
B
CCC
CC
C
R
rmin
r
RR
RRR
B RB
HR Procurement
RBB
RBB
BB
BB
R
EFFECTIVENESS
MAINTENANCE
RISK
VB-HR™ Rating
Workforce
Intelligence
HR Strategy
OrganisationalHCM
Capital
B B R
BB
RCCCCCC
BB
RCCCB
HCM
Architecture
BB
RBB
Management Employees
BB
RCCCB
BB
RCCCCCC
HR Customer-
agency
BB
HR Capability
BB
Human
Capital
HR Functional
Capital
Human Capital Management
Overall
ranking
AAA
AA
A
BBB
BB
B
CCC
CC
C
R
rmin
r
RR
RRR
B RB
HR Procurement
RBB
RBB
BB
BB
R
EFFECTIVENESS
MAINTENANCE
RISK
BB
BB
R
EFFECTIVENESS
MAINTENANCE
RISK
3.11
Managing
ASP/software/
Outsource
Providers
4.11
Managing
ASP/ERP/soft
ware/Outsour
ce Providers
1.6
HR Policy
2.5
Organisation
Restructure/
Change/
Development
3.1
Workforce
Planning
1.7
HR
Performance/
Strategy
Review/ Audit
1.1
Employer
brand
4.1
Needs
Assessment
6.1
Total Reward
Programme
7.1
Employee
Communications
8.2
Risk
Assessment
1.2
HR Value
Proposition
1.3
HR Delivery
Structure
1.4
HC Reporting
1.5
HR Capability
10.9
Reporting/
Interfaces
2.6
Acquisition/
Divestiture/
Start-up Due
Diligence/
Support
2.1
Organisationa
l Design/
Capability
Planning –
Business Unit
Level
2.2
Organisationa
l Design/
Capability
Planning –
Multi-country
Level
2.3
Organisationa
l Design/
Capability
Planning –
Global Level
2.4
Job
Classification/
Evaluation
3.2
Candidate
Identification
Services
3.3
Job Profile
Services/
Requisition
Processing
3.4
Candidate
Selection
3.5
Temporary
and
Contractor
Staffing
3.6
General
Employment
Services
3.7
Relocation
3.8
Outplacement
Services
3.9
Employment
Law Services
3.10
Consulting
Line
Managers On
Staffing
Issues
4.2
General
Training
Design,
Development
and Delivery
4.3
Training &
Development
Management
4.4
Technical/
Functional/
Policy &
Procedure
Training
4.5
Employee
Induction/
Orientation
4.6
Competencies
/ Skills Model
Development
And
Assessment
4.7
Leadership/
Management
Development
4.8
Executive
Development
4.9
Career
Development
4.10
Consulting On
Managerial
Issues
5.1
Performance
(Talent)
Management
Assessment
5.2
Performance
(Talent)
Management
Development
5.3
Performance
Reviews
5.4
Succession
(Talent)
Management
6.2
Wage And
Salary
Management
6.3
Bonus/Incenti
ve/ Stock
Options
Compensatio
n
6.4
Senior/
Executive
Compensatio
n
7.2
Benefits
7.3
Attendance/
Leave Of
Absence/ Exit
Interviews
7.4
Return-To-
Work and Job
Accommodati
on
8.1
Risk
Management/
Regulatory
Compliance/
Security
9.1
HRIS Strategy
9.2
HRIS
Planning
10.1
Payroll
10.2
Employee/
Manager
Interaction/
Problem
Resolution
10.3
Time
Reporting
10.6
Tax
Reporting/
Audit
10.7
Employee
Reimburseme
nt
10.8
Statutory
Benefits/
Miscellaneous
Admin
10.10
Managing
Outsource
Providers
1.8
Managing
External
Consultants/
Outsource
Providers
2.7
Managing
External
Consultants/
Outsource
Providers
5.5
Attendance
Management
6.5
Expatriate
Compensatio
n
7.5
Company
Policies And
Procedures
8.3
Accident
Prevention
and Training
Programmes
8.4
Health/Medica
l Programmes
9.3
HRIS Support
9.4
Employee
Research &
Modelling
5.6
Employee
Coaching
6.6
Compensatio
n
Analysis/Pay
review
6.7
Healthcare/
Welfare/
Statutory/
Other Benefit
Programmes
7.6
Collective
Bargaining/
Negotiating/
Consultative
Processes
7.7
Work
Practices For
Represented
Employees
8.5
Incident
Tracking and
Reporting
8.6
Managing
External
Consultants/
Outsource
Providers
9.5
Benchmarkin
g
9.6
Measurement
and Reporting
10.4
Special Pay,
Adjustments
And
Deductions
10.5
Payroll
Accounting/
Recon/
Manual
Calculations
&
Disbursement
5.7
Employee
Counselling/
Case
management
5.8
PM
Compliance
Support
6.8
Pension
Management
6.9
Retirement
Planning/
Counselling
And
Administratio
n
7.8
Conflict and
Issue
Resolution
7.9
Corporate/
Community
Social
Responsibility
9.7
Employee
Records/Case
management/
Data
Maintenance
9.8
Reporting/
Interfaces
9.9
Managing
ASP/software/
Outsource
Providers
5.10
Managing
ASP/ERP/
Software
Providers
5.9
Consulting To
Line
Managers On
Performance
Issues
6.10
Managing
External
Consultants/
Outsource
Providers
7.10
Government/
Legislative
Issues
7.11
Managing
External
Consultants
HR
GOVERNANCE
ORGANISATION
DESIGN
RESOURCING TRAINING &
DEVELOPMENT
PERFORMANCE
(TALENT)
MANAGEMENT
REWARD
EMPLOYEE
RELATIONS
& COMMS
EMPLOYEE
HEALTH &
SAFETY
HRIS &
MEASURE-
MENT
PAYROLL
3.11
Managing
ASP/software/
Outsource
Providers
4.11
Managing
ASP/ERP/soft
ware/Outsour
ce Providers
1.6
HR Policy
2.5
Organisation
Restructure/
Change/
Development
3.1
Workforce
Planning
1.7
HR
Performance/
Strategy
Review/ Audit
1.1
Employer
brand
4.1
Needs
Assessment
6.1
Total Reward
Programme
7.1
Employee
Communications
8.2
Risk
Assessment
1.2
HR Value
Proposition
1.3
HR Delivery
Structure
1.4
HC Reporting
1.5
HR Capability
10.9
Reporting/
Interfaces
2.6
Acquisition/
Divestiture/
Start-up Due
Diligence/
Support
2.1
Organisationa
l Design/
Capability
Planning –
Business Unit
Level
2.2
Organisationa
l Design/
Capability
Planning –
Multi-country
Level
2.3
Organisationa
l Design/
Capability
Planning –
Global Level
2.4
Job
Classification/
Evaluation
3.2
Candidate
Identification
Services
3.3
Job Profile
Services/
Requisition
Processing
3.4
Candidate
Selection
3.5
Temporary
and
Contractor
Staffing
3.6
General
Employment
Services
3.7
Relocation
3.8
Outplacement
Services
3.9
Employment
Law Services
3.10
Consulting
Line
Managers On
Staffing
Issues
4.2
General
Training
Design,
Development
and Delivery
4.3
Training &
Development
Management
4.4
Technical/
Functional/
Policy &
Procedure
Training
4.5
Employee
Induction/
Orientation
4.6
Competencies
/ Skills Model
Development
And
Assessment
4.7
Leadership/
Management
Development
4.8
Executive
Development
4.9
Career
Development
4.10
Consulting On
Managerial
Issues
5.1
Performance
(Talent)
Management
Assessment
5.2
Performance
(Talent)
Management
Development
5.3
Performance
Reviews
5.4
Succession
(Talent)
Management
6.2
Wage And
Salary
Management
6.3
Bonus/Incenti
ve/ Stock
Options
Compensatio
n
6.4
Senior/
Executive
Compensatio
n
7.2
Benefits
7.3
Attendance/
Leave Of
Absence/ Exit
Interviews
7.4
Return-To-
Work and Job
Accommodati
on
8.1
Risk
Management/
Regulatory
Compliance/
Security
9.1
HRIS Strategy
9.2
HRIS
Planning
10.1
Payroll
10.2
Employee/
Manager
Interaction/
Problem
Resolution
10.3
Time
Reporting
10.6
Tax
Reporting/
Audit
10.7
Employee
Reimburseme
nt
10.8
Statutory
Benefits/
Miscellaneous
Admin
10.10
Managing
Outsource
Providers
1.8
Managing
External
Consultants/
Outsource
Providers
2.7
Managing
External
Consultants/
Outsource
Providers
5.5
Attendance
Management
6.5
Expatriate
Compensatio
n
7.5
Company
Policies And
Procedures
8.3
Accident
Prevention
and Training
Programmes
8.4
Health/Medica
l Programmes
9.3
HRIS Support
9.4
Employee
Research &
Modelling
5.6
Employee
Coaching
6.6
Compensatio
n
Analysis/Pay
review
6.7
Healthcare/
Welfare/
Statutory/
Other Benefit
Programmes
7.6
Collective
Bargaining/
Negotiating/
Consultative
Processes
7.7
Work
Practices For
Represented
Employees
8.5
Incident
Tracking and
Reporting
8.6
Managing
External
Consultants/
Outsource
Providers
9.5
Benchmarkin
g
9.6
Measurement
and Reporting
10.4
Special Pay,
Adjustments
And
Deductions
10.5
Payroll
Accounting/
Recon/
Manual
Calculations
&
Disbursement
5.7
Employee
Counselling/
Case
management
5.8
PM
Compliance
Support
6.8
Pension
Management
6.9
Retirement
Planning/
Counselling
And
Administratio
n
7.8
Conflict and
Issue
Resolution
7.9
Corporate/
Community
Social
Responsibility
9.7
Employee
Records/Case
management/
Data
Maintenance
9.8
Reporting/
Interfaces
9.9
Managing
ASP/software/
Outsource
Providers
5.10
Managing
ASP/ERP/
Software
Providers
5.9
Consulting To
Line
Managers On
Performance
Issues
6.10
Managing
External
Consultants/
Outsource
Providers
7.10
Government/
Legislative
Issues
7.11
Managing
External
Consultants
HR
GOVERNANCE
ORGANISATION
DESIGN
RESOURCING TRAINING &
DEVELOPMENT
PERFORMANCE
(TALENT)
MANAGEMENT
REWARD
EMPLOYEE
RELATIONS
& COMMS
EMPLOYEE
HEALTH &
SAFETY
HRIS &
MEASURE-
MENT
PAYROLL
HC Productivity Statement
CONTRACTED RESOURCE ye 31st
Dec 2005 ye 31st
Dec 2004
Total number of FTE days contracted in year 3,530,340 3,401,289
Total number of FTE vacation days taken in
year
336,987 333,144
TOTAL NUMBER OF CONTRACTED FTE
DAYS AVAILABLE
3,193,353 3,068,145
WORK RESOURCE ADJUSTMENT
FTE days gained through recorded overtime
work (+)
61,932 65,371
FTE days lost to illness (-) 18,431 19,016
FTE days lost to work-related illness/injury (-) 2,773 2,816
FTE days lost to industrial action (-) 249 167
FTE days recorded as lost under miscellaneous
(-)
763 1,075
ACTUAL NUMBER OF CONTRACTED FTE
DAYS WORKED
3,233,069 3,110,442
PRODUCTIVITY
HCI*Revenue per FTE day (optimal) £192.96 £185.42
HCI*Revenue per FTE day (actual) £190.59 £182.90
HCI*Revenue per FTE day differential £2.37 £2.52
EMPLOYER-EMPLOYEE RELATED INDICES
Employee engagement index 69.2 68.5
Employer brand index 71.3 71.0
HUMAN CAPITAL MANAGEMENT INDEX
VB-HR Rating BB-BB-R BB-B-R
HC Performance Sustaining + Sustaining +
HC Productivity Statement
CONTRACTED RESOURCE ye 31st
Dec 2005 ye 31st
Dec 2004
Total number of FTE days contracted in year 3,530,340 3,401,289
Total number of FTE vacation days taken in
year
336,987 333,144
TOTAL NUMBER OF CONTRACTED FTE
DAYS AVAILABLE
3,193,353 3,068,145
WORK RESOURCE ADJUSTMENT
FTE days gained through recorded overtime
work (+)
61,932 65,371
FTE days lost to illness (-) 18,431 19,016
FTE days lost to work-related illness/injury (-) 2,773 2,816
FTE days lost to industrial action (-) 249 167
FTE days recorded as lost under miscellaneous
(-)
763 1,075
ACTUAL NUMBER OF CONTRACTED FTE
DAYS WORKED
3,233,069 3,110,442
PRODUCTIVITY
HCI*Revenue per FTE day (optimal) £192.96 £185.42
HCI*Revenue per FTE day (actual) £190.59 £182.90
HCI*Revenue per FTE day differential £2.37 £2.52
EMPLOYER-EMPLOYEE RELATED INDICES
Employee engagement index 69.2 68.5
Employer brand index 71.3 71.0
HUMAN CAPITAL MANAGEMENT INDEX
VB-HR Rating BB-BB-R BB-B-R
HC Performance Sustaining + Sustaining +
Human Capital Operating Statement
ye 31st
Dec 2005 ye 31st
Dec 2004
OPERATING INCOME %
Revenue (£000s) 1,057,016 1,015,020
FTEs 16,352 16,047
Revenue per FTE 64,641 63,253
OPERATING COSTS
Total operating costs (£000s) 904,371 815,094
People costs (£000s) 532,181 464,317
Human Capital Intensity (HCI) 58.85 56.96
OPERATING INCOME ATTRIBUTABLE
TO HC (HCIR per FTE)
38,041 36,029
£ % £ %
ANCILLARY PEOPLE COSTS (APC)
Training & Development costs (£000s) 8,176 7,342
Recruitment costs (£000s) 2,314 2,954
Health & Safety costs (£000s) 740 691
HR functional and related costs (£000s) 6,254 6,879
Outplacement costs (£000s) 256 53
Total 17,740 17,919
HC LEVERAGE (HCIR/APC per FTE) 35.06 32.26
Human Capital Operating Statement
ye 31st
Dec 2005 ye 31st
Dec 2004
OPERATING INCOME %
Revenue (£000s) 1,057,016 1,015,020
FTEs 16,352 16,047
Revenue per FTE 64,641 63,253
OPERATING COSTS
Total operating costs (£000s) 904,371 815,094
People costs (£000s) 532,181 464,317
Human Capital Intensity (HCI) 58.85 56.96
OPERATING INCOME ATTRIBUTABLE
TO HC (HCIR per FTE)
38,041 36,029
£ % £ %
ANCILLARY PEOPLE COSTS (APC)
Training & Development costs (£000s) 8,176 7,342
Recruitment costs (£000s) 2,314 2,954
Health & Safety costs (£000s) 740 691
HR functional and related costs (£000s) 6,254 6,879
Outplacement costs (£000s) 256 53
Total 17,740 17,919
HC LEVERAGE (HCIR/APC per FTE) 35.06 32.26
PeopleFlow®
Statement
STAFFING ye 31st
Dec 2005 ye 31st
Dec 2004
%
No of full-time staff at start of year 14,011 13,865
Number of part-time staff at start of year (FTE
eqv)
1,932 1,491
Number of other at start of year (FTE eqv) 104 175
Full time equivalents (FTEs) at start of
year
16,047 15,531
STAFFING MOVEMENT % £ %
Number of FTEs recruited in period (+) 1,427 1,874
Number of acquisitioned FTEs during period (+) - -
1,427 1,874
Number of voluntary leavers (FTE) in period (-) 996 1,065
Number of FTEs made redundant or outplaced
in period (-)
35 217
Number of FTE retirements in period (-) 91 76
Number of FTEs outsourced in period (-) -
Full time equivalents (FTEs) at end of year 16,352 16,047
STAFFING MISCELLANEOUS
Mean tenure (years) 5.2 5.3
Mean age of workforce 34 34
Retirement population 5,391 5,304
PeopleFlow®
Statement
STAFFING ye 31st
Dec 2005 ye 31st
Dec 2004
%
No of full-time staff at start of year 14,011 13,865
Number of part-time staff at start of year (FTE
eqv)
1,932 1,491
Number of other at start of year (FTE eqv) 104 175
Full time equivalents (FTEs) at start of
year
16,047 15,531
STAFFING MOVEMENT % £ %
Number of FTEs recruited in period (+) 1,427 1,874
Number of acquisitioned FTEs during period (+) - -
1,427 1,874
Number of voluntary leavers (FTE) in period (-) 996 1,065
Number of FTEs made redundant or outplaced
in period (-)
35 217
Number of FTE retirements in period (-) 91 76
Number of FTEs outsourced in period (-) -
Full time equivalents (FTEs) at end of year 16,352 16,047
STAFFING MISCELLANEOUS
Mean tenure (years) 5.2 5.3
Mean age of workforce 34 34
Retirement population 5,391 5,304
HCM
Intelligence
Management
Pathfinder
(OE indicators)
‘RADAR’
Employee
engagement
Basic
metrics
Measurement
pyramid
Modelling analytics linking
performance to human capital
(management)
HR delivery
and
operational
risk
Human capital
reporting
8. 8
“As evidence-based management practitioners, our
purpose is to enhance effective people management
(and its impact on productivity/performance) in
organisations, whilst enabling greater individual
managerial professionalism.”
Our mission
10. The traditional view of employee engagement
contributing to improved organisational
performance...
Higher
employee
engagement
Higher
productivity
Higher
organisation
performance
11. Human capital management practice and
employee engagement contributing to improved
organisational performance (‘POP’ system)
Higher
employee
engagement
Higher
productivity
Higher
organisation
performance
More effective
human capital
management
12. “Employee
engagement is an
‘outcome-based’
concept.
It is the term used to
describe the degree to
which employees can
be ascribed as ‘aligned’
and ‘committed’ to an
organisation such that
they are at their most
productive.”
VaLUENTiS International School of HCM 2005
13. The concept of Employee Engagement:
A synthesis of antecedent theories and empirical evidence with human capital
management practice related to organisation performance – 100 years in the making
Source: The antecedents of Employee Engagement, Nicholas J Higgins - VaLUENTiS technical paper 2003
Wider
Group
Immediate
Team
OrganisationIndividual
•Group theory
•Trust theory
•Teams theory
•Conflict theory
•Decision-making theory
•Motivation theory
•Goal setting and task theory
•Equity (justice) theory
•Trait theory
•Expectancy theory
•Commitment theory
•Needs theory
•Social cognitive/
self efficacy theory
•Cognitive dissonance
•Wellbeing/Burnout
•Job satisfaction
•Organisation Citizenship Behaviour
•Learning theory
•Behaviourism
•Emotional Intelligence
•Psychological contract
•Leadership theory
•Organisational ‘fit’ theory
•Other I/O psychology
contributions
•Organisation performance &
measurement*
Human Capital Management practice/systems:
•Training & Development
•Performance management
•Reward & recognition
•Resourcing & selection
•Organisation communication
•Talent management
•Leadership
•Organisation culture
•Employer brand
•Human capital retention
•Organisation design
•Workforce diversity
•High performance work systems
•Fayol - Principles of management
•Taylor - Scientific management
•McGregor Theory X/Y
•Mayo/Hawthorne studies
•Tavistock – Socio-technical systems
•Lewin (MIT) - group dynamics/behaviour
•Munsterberg - Industrial psychology
•Follett - Management relations/integration
•Hertzberg – Two factor theory
•Drucker – Practice of management
•Kahn – Personal engagement
•Likert – Management system/measurement scale
14. 14
Psychological Conditions of Personal
Engagement and Disengagement at Work
William A. Kahn
Academy of Management Journal 1990
“Personal Engagement is the simultaneous employment and
expression of a person’s ‘preferred self’ in task behaviors that
promote connections to work and to others, personal presence
(physical, cognitive and emotional), and active, full role
performance.”
15. Employee engagement as a sum of constant work
‘forces’ (VaLUENTIS EESoF model) illustrative vectors
interpersonal
conflict
incentive
misalignment
perceived
reward inequityshort-staffed
uncaring new
boss
poorly
communicated
reorganisation
enlarged
role
planned
training
cancelled
Well-received
performance
appraisal hit personal
targets/
objectives
hit team
targets/
objectives
salary
increase
enrolled on MD
programme
“A further, more up to
date interpretation…”
16. “Human Capital
Management is the
term which is used to
describe an
organisation’s multi-
disciplined and
integrated approach to
optimising the
capabilities and
performance of its
management and
employees.”
VaLUENTiS International School of HCM 2005
18. Management Pathfinder ‘one-line descriptors’
[Reference]
Diversity [E2]
The focus and effectiveness of diversity of the workforce and diversity policies
within the organisation
Employee Centricity [legacy indicator] optional reporting indicator
The degree to which the organisation has ‘employee-centric’ policies in place and
delivers on them in terms of effectiveness including historical perspective
Employer Brand [E1]
The degree to which the organisation has an identifiable brand and its
contribution/ effectiveness in related organisational areas
HR Governance [H1] [expanded version only]
The overarching management of HR as a function governance of Human Capital
Management within the organisation.
HR Operational Excellence [H2] [expanded version only]
The degree to which the HR function possesses the requisite competence and
executes its delivery objectives in terms of quality and effectiveness
Leadership [F1]
The perceived effectiveness of distributed leadership across the organisation
Organisation Climate [S1]
The degree to which the current operating environment with in the organisation is
seen to be a positive/negative factor
Organisation Communications [S2]
The current effectiveness of communications in the organisation as perceived by
managers and employees
Organisation Design [S3]
The degree to which the overall organisation architecture, e.g. management
structure, job/role design is effective
Performance Orientation [F3]
The degree to which the organisation is viewed as effective in terms of focus and
actions re performance related areas
Resourcing [V1]
The effectiveness of current resourcing policies and processes/activities in terms of
organisation requirements
Retention [V2]
The effectiveness of current organisational retention approaches and efforts
Reward [V3]
The effectiveness of current reward policy/strategy
Talent Management [F2]
The effectiveness of current organisational approaches to talent, its scope and its
management
Learning & Development [E3]
The degree to which current approaches and application of training, learning and
development are effective
19. Organisation Performance
(as defined by organisation/unit scorecard measures and derivative metrics)
Examples of organisation performance areas:
Sales
Revenue
Service
delivery
Customer
satisfaction
Patient
care
Procurement
Operational
risk
Product
development
Organisation
support
Safety
Quality
Cost…
20. 20
Sub-optimal performance,
i.e. less than achievable
Or
Sub-optimal costs,
i.e. higher than necessary
Or
Both
Impaired Employee Engagement:
Impact on individual and team productivity/performance
21. Organisations and employee engagement:
The ‘4-ball’ practice model
Play down
‘We don’t...’
Play act
‘It’s all about PR…’
Play safe
‘At least we audit/
benchmark...’
Play make
‘We do it…’
The four progressive states
of employee engagement
embeddedness in
organisations
22. The ‘Six Pillars’…
EE PLAYBOOK
1. Grounded understanding of Employee Engagement
2. Working definition of Employee Engagement
3. Measurement wisdom
4. Actioning infrastructure
5. Dynamic EE-Performance ‘playbook’
DELETE
6. Competent leadership/management
23. Little.
Limited.
Mostly ephemeral in nature.
Exists in pockets with
variation in line
management.
Good working knowledge
embedded across
organisation.
No definition in use.
Most likely borrowed
without any real ownership,
or ‘false’ ownership.
Maybe borrowed with
internalisation or adapted
after some organisational
focus.
Distributed ‘ownership’,
whether borrowed, adapted
or created.
Limited to absenteeism
metrics, employee surveys
seen as event driven if done.
Probably undertaking
surveys but with no valid
construct; response rate/PR
main focus.
Will do measurement basics,
even to the extent of
engagement index etc.
Tick box is main focus.
People management
evaluation/measurement
seen as ‘core’ on a par with
CRM , finance etc.
Probably in the form of basic
training/management
courses.
Probably in the form of basic
management courses. Most
likely carry out some form of
branded programme.
Will have a number of
actioning elements in place
but not necessarily joined
up.
Will have necessary ‘toolkit’
to hand with ongoing
programmes to suit
organisation focus.
Does not exist.
May have something
articulated on ‘strategies’.
Most likely collection of
irrelevant case studies.
Playbook in the form of
‘manager manual’ or on-line
knowledge-share. Still being
developed.
Easy access in different e-
/physical formats at
different levels. Signals
‘embedded’ intent.
Will have varied mix of
skilled people managers.
Existing good performers
more through luck.
Will have varied mix of
skilled people managers.
Existing good performers
more through luck.
Will have varied mix of
skilled people managers but
level of competency higher
than Play-Act organisations.
Cohort of well-trained
people managers exists with
talent pools. Regular
evaluation/reinforcement.
‘PLAY DOWN’ ‘PLAY ACT’ ‘PLAY SAFE’ ‘PLAY MAKE’
I
Grounded
understanding of
employee engagement
II
III
IV
V
VI
Working definition of
employee engagement
Measurement wisdom
Actioning
Infrastructure
EE-Performance
Playbook
Competent leadership/
management
The ‘4-ball’ Employee Engagement reality matrix
Pillar
23
NEGATIVE NEGATIVE NEUTRAL POSITIVE
Overall value to organisation
performance/competitive
advantage
24. 0% 5% 10% 15% 20% 25% 30% 35% 40%
Understood across majority of managers and employees
Understood across majority of managers
Understood in some areas of management
Managers have heard the term but have little understanding
We collectively don’t really use the term
In your organisation/business unit how well is the concept of
employee engagement understood (and its potential impact in
the workplace – the Why)?
Source: VaLUENTiS Employee Engagement in Organisations –
‘State of The Notion’ report, September 2013
25. As an organisation/business unit we provide learning on
employee engagement and its impact...
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
At induction for line managers ONLY
Don’t know
At induction for employees and line managers
As part of our development programme for line managers ONLY
As part of our development programme for both employees and
line managers
We do not currently provide structured learning on employee
engagement
Source: VaLUENTiS Employee Engagement in Organisations –
‘State of The Notion’ report, September 2013
26. Does your organisation/business unit use a definition of
employee engagement?
0% 10% 20% 30% 40% 50% 60%
Yes
No
Don't know
Source: VaLUENTiS Employee Engagement in Organisations –
‘State of The Notion’ report, September 2013
27. How easy is this definition for communication and measurement
purposes across the organisation?
Easy to remember –
Easy to measure
39%
Easy to remember –
Hard to measure
21%
Hard to remember –
Easy to measure
7%
Hard to remember –
Hard to measure
9%
Don’t know
24%
Source: VaLUENTiS Employee Engagement in Organisations –
‘State of The Notion’ report, September 2013
28. How do we know what we are measuring is employee
engagement?
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Don't measure/No answer provided
Answer provided doesn't explain
Use assumed model/advice of consultants
Non-answer
Part research explanation but vague
Underpinning theory model(s)/rationale given
*Note: Categories derived from open text reclassification
Source: VaLUENTiS Employee Engagement in Organisations –
‘State of The Notion’ report, September 2013
31. Actioning Employee Engagement Infrastructure
(Purpose: ‘to embed’)
Supportive top
leadership and
‘signalling’…
‘Interactive’ people
management evaluation
process
map
Multi-survey
mapping and
planning
overlay
EE related
development/
learning
programmes
& workshops
People Manager
evaluation/
appraisal
(regular
‘practice runs’)
Defined ‘how to’
strategies around
engagement
elements
‘Live’ Employee
Engagement
adapted QFD
(‘House of
Quality’)
Dedicated
internal focus team or
nominated ‘on-point’
person
Nominated
People Manager
Engagement line
champions
Organisation
event logsLinks into wider
organisation
intelligence
analytics
Wider
communications/
branding
“Spinning plates cogs…”
32. Which of the following statements describes our
organisation/business unit’s approach to embedding employee
engagement infrastructure?
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
It’s basically in the guise of an action plan off the back of the
employee survey
We use employee surveys and other measurement instruments,
linked with performance/productivity data and actioning
initiatives
We use employee surveys and other measurement instruments,
linked with performance productivity data, backed up with
leadership/management education and actioning initiatives
We don’t have any recognisable support infrastructure
Source: VaLUENTiS Employee Engagement in Organisations –
‘State of The Notion’ report, September 2013
35. Once a year (census)
28%
Twice a year (census)
13%Once every two years
(census)
28%
Every quarter
(pulse) including
annual (census)
5%
As and when required
15%
None of the above
11%
Our organisation conducts an employee survey....
Source: VaLUENTiS Employee Engagement in Organisations –
‘State of The Notion’ report, September 2013
36. Less than 20
26%
20-40
23%41-60
21%
61-80
24%
Over 80
6%
Our survey question set includes how many questions?
Source: VaLUENTiS Employee Engagement in Organisations –
‘State of The Notion’ report, September 2013
38. A balanced mix of Question-statements plus
organisation performance data with generation of
indices/scorecards
Line-of-Sight Work Environment
VaLUENTiS 5D Employee Engagement Framework
Reward (equity) Development
That gives us around 10103
survey combinations
20Q
30Q
40Q
50Q
60Q
70Q
80Q
90Q
100Q
‘Standard sets’
Database contains over 1000
Question-Statements, though
around 290 are ‘Stems’, the
rest are variations….
42. With regard to the evaluation/measurement of people
management in your organisation/business unit, which one of
the following statements is the most accurate?
0% 5% 10% 15% 20% 25% 30% 35% 40%
We don’t measure on an ongoing basis
We have a basic scorecard of HR metrics like absenteeism,
turnover etc
We have basic scorecard of HR metrics plus employee
engagement scores
We have some form of evaluation across the various supporting
people processes/systems
We use a sophisticated mix of measurement approaches
including HR metrics, employee engagement, people
management, human capital reporting etc
Don’t know/Can’t decide
Source: VaLUENTiS Employee Engagement in Organisations –
‘State of The Notion’ report, September 2013
44. Employee Engagement triangulation
“Squaring the circle…”
New (re)hire data
Performance
appraisal data
Case data
Other internal
survey/assessment
data
Exit data
Organisation
event log data
Critical
incident data
Social media
data
Customer/client/
patient/citizen/
passenger data
Employee/management
survey data
45. New (re)hire data
Performance
appraisal data
Employee/manage
ment survey data
Case data
Other internal survey/
assessment data
Exit data
Organisation event
log data
Critical incident
data
Social media data
Customer/client/
patient/citizen data
“To this - The Engagement-Performance Matrix”
Performance area
‘Hawthorne’
for the 21st
Century
organisation”
“There is
much that
organisations
can do for
themselves”
47. ‘P12 modes of productivity’
More likely to
embrace set
values
More likely to
produce higher
grade/quality of
work (less errors)
More likely to be
flexible to
organisation needs (if
equitable)
Less likely to suffer
stress
(but more likely to
suffer burn-out)
More likely to
achieve goals set
More likely to ‘own’
their development
More inclined to
input into ideas/
innovation
More likely to give
discretionary effort
above contractual
obligations
Less likely to move
employer
Less inclined to take
days off
More inclined to
share knowledge
Applied across all job roles in the context of the role
specificity and environment which impact on individual and
collective performance
50. 0.00% 10.00% 20.00% 30.00% 40.00% 50.00%
Yes
No
Don't know
0.00% 10.00% 20.00% 30.00% 40.00% 50.00%
Yes
No
Don't know
As an organisation/business unit, we link
our employee survey data with other
people data (e.g. appraisals, exit, absence
etc)?
As an organisation/business unit, we link our
employee survey data with other performance
data (e.g. sales, customer/patient/team
productivity, safety etc)?
Source: VaLUENTiS Employee Engagement in Organisations –
‘State of The Notion’ report, September 2013
52. Embedding good employee engagement practice:
‘Mapping the management reality’
Individual Board members
Against embedding
(Status quo OK)
Let it happen
(Ambivalent/
non-committal)
Help it happen
(qualified
supportive)
Make it happen
(Actively
championing)
Senior managers
Middle managers
Line managers
Supervisors/Team leaders
Remember ‘actions speak louder than words…’
53. “Often overlooked:
Impaired management
engagement and its
impact…”
910
860
813
790
760
Management client cadre sample 2010-11
Sample size: 1400 managers representing 20,000 employees
Score range 200-1000Source: VaLUENTiS VB-HR™ Engagement database
‘Line management’ engagement
score by percentile
54. ‘Line Management’ engagement scores ‘bell curve’
Management client cadre sample 2010-11
Sample size: 1400 managers
(employee population: 20,000)
Score range 200-1000
Source: VaLUENTiS Engagement database
14.5% below one
standard deviation
738 1000200
“Same data as previous slide – different
graphic format…
Looking outside ‘the norm’ that’s one
in seven line managers posing serious
concern…”
13.9% above one
standard deviation
“the norm”
55. Employee Engagement:
Good people managers versus average managers......
...Good managers
High probability of:
1. Being self-aware (score well on EI)
2. Treating staff as the organisation’s ,not their own
‘little army’
3. Being pro-active, forward looking and confident no
matter the situation
4. Being knowledgeable of (successful) people-
management approaches
5. Understanding the importance of clear one-to-one
communication and being consistent
6. Getting results but not at the expense (or over-
reliance on good performers)
7. Making tough calls when required for the benefit of
the team
8. Don’t postpone/move important events such as
individual reviews/appraisals etc
9. Understanding that most managerial decision-making
is about equity in people situations/issues
10. Taking a natural interest in people development
above the mandatory level
11. Challenging team performance in different ways
12. View management role as a ‘privilege’, not a right
...Average/poor managers
High probability/tendency of:
1. Limited self-awareness
2. Treating staff as their own resource rather than
organisation’s
3. Being reactive, backward-looking and/or display
uncertainty on too many occasions
4. Being limited in their understanding of people
management
5. Their communication too often being seen as vague or
inconsistent when interacting with staff
6. Get results but tend to have higher absenteeism or
turnover of staff
7. Deferring tough calls, preferring to political expediency
even at the expense of others
8. History of postponing or procrastinating on individual
events such as individual reviews/appraisals
9. Limited awareness of or disregard the equity principle
when making managerial decisions
10. Show little interest in individual development save for
mandatory skill requirements
11. See team management as a ‘chore’
12. View management role as a ‘right’, not a privilege
56. The ‘people competency’ of line management – the
organisation view......
...common problems
• Lack of understanding across managers as to
what good people management is and its
impact
• Varied mix of line managers with variation in
people practice and resulting issues
• No set bar to becoming line ‘people manager’,
i.e. no ‘license to manage’
• Too many ‘B’-players in managerial positions
who limit employee engagement potential
• Too often, HR as ‘personnel function’
compensates for deficiencies
...’fixes’
• Clear communicated framework of good people
management practice together with learning
exposure
• Utilise management competency platform with
structured programme of learning and
assessments
• Adopt ‘license to manage’ standard with
appropriate hurdles and gradings
• Instigate talent assessment where necessary,
with career option route-paths including exit
• Assess if issue relates to cultural expectations,
vague HR role definition/value proposition or all
three, in conjunction with above actions
57. With regards to the competencies of people managers which of
the following statements best describes your organisation/
business unit?
0% 5% 10% 15% 20% 25% 30% 35%
Current people managers with requisite skills are there by luck through the
recruitment process rather than anything else
Current people managers with requisite skills are there by luck through the
recruitment process rather than anything else though some managers have
received some management training
Most, if not all, of our managers have been exposed to some form of
structured leadership/management development
Most, if not all, of our managers have been exposed to some form of
structured leadership/management development and continue to do so
ongoing
Some of our managers (through selection) have been exposed to some form
of structured leadership/management development
Source: VaLUENTiS Employee Engagement in Organisations –
‘State of The Notion’ report, September 2013
58. Does your organisation/business unit operate a ‘license to
manage’ (or similar) threshold for managers to become people
managers?
Yes
20%
No
68%
Don't know
12%
Source: VaLUENTiS Employee Engagement in Organisations –
‘State of The Notion’ report, September 2013
60. EE based Leadership Development…
Discussion
groups
High
High
Low
Learner autonomy over content
Learnerautonomyoverprocess
CBT
Traditional
classroom
lecture
Qualifications
Informed
reading
Action
Learning
events
Role
Plays
Simulations
/case studies
Mentoring,
Coaching,
Shadowing
Secondments
Structured
reading
EE work
sessions
62. Problem
Solving
Case
study
1 day workshop
Module: Employee Engagement
Pre-module
preparation
2-hr ‘work’ sessions ½ day workshop
CI
CI
CICritical
Incident
Mini-
case
study
Problem
solving
Employeebenchmarkdata(nominalset)
Pre-course
assessment
questionnaire
Post-course
assessment
questionnaire
Level 2
evaluation
diagnostic
Level 2 & 3
evaluation
diagnostic
Employeebenchmarkdata(timeseriesset)
3-6 Months (typical timeframe)
CI
CI
CICritical
Incident
Behavioural event journal
Post-course
assessment
questionnaire
Pre-course
assessment
questionnaire
Structured coaching/
work group
Example of Employee Engagement
structured module…
63. The theory states that monitoring and maintaining urban
environments in a well-ordered condition may stop further
vandalism as well as an escalation into more serious crime.
The ‘theory’ applied translates to: monitoring and maintaining work
environments in a well-ordered management condition may stop
further engagement erosion as well as an escalation into more
serious disengagement issues.
Applied to employee engagement…
The ‘Broken Windows’ hypothesis
65. ModelsStrategiesImplementationLearning
Contents
1. Engagement strategies
2. Engagement operating ‘system’ models and
analytics templates
3. Question-statement selection and construct
design
4. Measurement index construction,
maintenance and reporting
5. Engagement Driver Factor (EDF) analysis
6. Engagement ‘forcefield’ analysis
7. EE project management methodology and
flowcharts
8. Engagement ‘issue work-through’ tools
9. Management learning programme design and
evaluative criteria
10. Engagement Transformation Programme (ETP)
methodology
11. Core applied theory summary capsules
12. Human Capital Management framework
EE playbook4
Game Management
EE playbook example content
66. Does your organisation/business unit utilise an ‘Employee
Engagement playbook’…?
0% 10% 20% 30% 40% 50% 60% 70% 80%
Yes, in full
Yes, in part
Currently under design
No
Don’t know
Source: VaLUENTiS Employee Engagement in Organisations –
‘State of The Notion’ report, September 2013
68. Management
education,
assessment &
reinforcement
‘Not so much climbing
as jumping the curve’…
ACTIONING
INFRA-
STRUCTURE
People
data
availability
& quality
Employee
survey
information &
other
evaluations Management
‘positional
mapping’
‘Game
management’
Performance/
productivity/
engagement
‘holes’
69. Little.
Limited.
Mostly ephemeral in nature.
Exists in pockets with
variation in line
management.
Good working knowledge
embedded across
organisation.
No definition in use.
Most likely borrowed
without any real ownership,
or ‘false’ ownership.
Maybe borrowed with
internalisation or adapted
after some organisational
focus.
Distributed ‘ownership’,
whether borrowed, adapted
or created.
Limited to absenteeism
metrics, employee surveys
seen as event driven if done.
Probably undertaking
surveys but with no valid
construct; response rate/PR
main focus.
Will do measurement basics,
even to the extent of
engagement index etc.
Tick box is main focus.
People management
evaluation/measurement
seen as ‘core’ on a par with
CRM , finance etc.
Probably in the form of basic
training/management
courses.
Probably in the form of basic
management courses. Most
likely carry out some form of
branded programme.
Will have a number of
actioning elements in place
but not necessarily joined
up.
Will have necessary ‘toolkit’
to hand with ongoing
programmes to suit
organisation focus.
Does not exist.
May have something
articulated on ‘strategies’.
Most likely collection of
irrelevant case studies.
Playbook in the form of
‘manager manual’ or on-line
knowledge-share. Still being
developed.
Easy access in different e-
/physical formats at
different levels. Signals
‘embedded’ intent.
Will have varied mix of
skilled people managers.
Existing good performers
more through luck.
Will have varied mix of
skilled people managers.
Existing good performers
more through luck.
Will have varied mix of
skilled people managers but
level of competency higher
than Play-Act organisations.
Cohort of well-trained
people managers exists with
talent pools. Regular
evaluation/reinforcement.
‘PLAY DOWN’ ‘PLAY ACT’ ‘PLAY SAFE’ ‘PLAY MAKE’
I
Grounded
understanding of
employee engagement
II
III
IV
V
VI
Working definition of
employee engagement
Measurement wisdom
Actioning
Infrastructure
EE-Performance
Playbook
Competent leadership/
management
The ‘4-ball’ Employee Engagement reality matrix
Pillar
69
NEGATIVE NEGATIVE NEUTRAL POSITIVE
Overall value to organisation
performance/competitive
advantage
70. Employee Engagement in Organisations
0% 10% 20% 30% 40% 50% 60%
Play Down
Play Act
Play Safe
Play Make
Source: VaLUENTiS Employee Engagement in Organisations –
‘State of The Notion’ report, September 2013
*Note: Based on VaLUENTiS E3 INDEX scoring system
74. THE
EE
PLAYBOOK
Line of
sight
Work
environment
Operating
culture
Development
Reward
(equity)
Performance
link
What we bring…
Employee Engagement Solutions
Evidenced based definition,
understanding and application
Measurement wisdom
and expertise
On-line tools
and analytics
Survey design
expertise
Project
management
expertise
Actioning
strategies and
tactics
Frontline
blended
learning
‘License to
manage’
programmes
Senior management
feedback sessions
Global
reach
‘Ten years of
innovation…’
VaLUENTiS Ltd,
2nd Floor, Berkeley Square House,
Berkeley Square, London W1J 6BD
HO: +44 (0)207 887 6108/21
www.valuentis.com
www.ISHCM.com
76. Professional Services
www.valuentis.com
Smart. Smarter. Smartest...
‘PEOPLE SCIENCE®’
Organisation Intelligence
to
improve organisation performance
• Human Capital Management Evaluation
• Employee Engagement
• Talent Management
• Workforce Productivity & Performance
• Predictive Analytics
• HC Forensics & Risk
• HR Function ROI Analysis
• Organisation Measurement
• Management Education
• Organisation Strategy
SOLUTIONS
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