State of the American

State of the American Workplace

The State of the American Workplace

ANNAMARIE MANN

Workplace Analytics Practice Manager

“The key to an organization’s growth has been and always will be its workforce.”

- Gallup’s State of the American Workplace report

Inside the State of the American Workplace Report

U.S Workers: Increasingly Confident and Ready to Leave

Do Employees Want What Your Workplace Is Selling?

The Real Truth About Benefits and Perks

The Competitive Advantage of Engaging Employees

A Shift in Managing Performance

A Closer Look at the 12 Elements of Engagement

Making Sense of Matrixed Teams

The Changing Place and Space of Work

Employee Engagement: A Snapshot

The Workplace Is Changing

What has changed in your ____ in

the last five years?

- organization

- workforce

- self

10-Second Introduction

1. Name

2. Hospital or Organization

3. Role or Area of Focus

4. Biggest change in last five years

Take a moment to talk with a neighbor

Discussion

Employee Expectations are ShiftingWhat employees want and need

THE PAST

My Paycheck

My Satisfaction

My Boss

My Annual Review

My Weaknesses

My Job

OUR FUTURE

My Purpose

My Development

My Coach

My Ongoing Conversations

My Strengths

My Life

LEADER AS COACH

Only 22% of employees strongly agree that the leadership of their organization has a clear

direction for the organization.

Only 15% of employees strongly agree that the leadership of their organization makes

them enthusiastic about the future.

Only 13% of employees strongly agree that the leadership of their organization

communicates effectively with the rest of the organization.

An Urgent Need for Leadership Action

Majority of U.S. Employees Are Not Engaged

Data from January-September 2016

33%ENGAGED

16%ACTIVELY

DISENGAGED

51%NOT ENGAGED

A Crisis of Engagement

12% 13% 14% 14% 15%17%

26% 30% 30% 28% 29%

30% 30% 29% 28% 28% 29% 30% 30% 31% 32% 33%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2017

Best Practice Orgs

Gallup Daily Tracking

Workers Are Feeling More Optimistic

Employees Are Hyper Connected

Workforce Demographics Are Changing

Performance Management Is Evolving

U.S. Workers Are Feeling More Optimistic …

About the Job Market

Americans Are Feeling Better About the Job Market and What It Has to Offer

+18 2016

Gallup U.S. Job Creation Index

19%2016

Now Is a Good Time to Find a Quality Job

51% of employees say they are actively looking for a new job or watching for openings.

Employees Are Looking and Leaving

35% of workers report changing jobs within the past three years.

91% of employees say they left their employer the last time they switched jobs.

Employees Look for Fit to Role, Culture and Life

% WHO SAY THESE FACTORS ARE “VERY IMPORTANT”

1. the ability to do what they do best (60%)

2. greater work-life balance and better personal well-being (53%)

3. greater stability and job security (51%)

4. a significant increase in income (41%)

5. the opportunity to work for a company with a great brand or reputation (36%)

Five most important attributes employees consider when deciding whether or not to take a job with a

different organization

Career pathing and career trajectories help paint a vision for the future, but many employees aren’t

willing to wait for that future. When offering opportunities to learn and grow, don’t just offer training

courses.

• Co-develop career and personal development goals

• Help employees identify the growth they are experiencing on the job

• Provide opportunities to grow within the role

• Advocate for your employees

Development is A Critical Key in Retaining Employees

Managers have a unique opportunity to help their employees visualize both current

and future growth opportunities.

Employees Are Hyper Connected …

Elevating the Importance of Their Experience

What happens internally spreads externally

Employees Rely on the Opinions of Others to Inform Their Employment Decisions

PLEASE INDICATE THE EXTENT TO WHICH YOU USE OR HAVE USED THE FOLLOWING

RESOURCES TO LEARN ABOUT JOB OPPORTUNITES.

SOMETIMES, OFTEN OR

ALWAYS USE

Websites of the organizations you have interest in 77

Referrals from current employees of an organization 71

Suggestions from family members or friends 68

Online job sites (e.g., Monster, CareerBuilder) 58

Publications or online sources in your professional field 57

General web search (e.g., using Google, Bing, Yahoo) 55

Professional network site (e.g., LinkedIn) 47

Professional or alumni organization 41

News media (e.g., ads in newspapers or magazines, TV or radio ads, news reports) 39

Majority of Employees Are Indifferent About Their Work and Workplace

18% of employees strongly agree that employees who perform better grow faster at

their organization

21% of employees strongly agree that their performance is managed in a way that

motivates them to do outstanding work

33% of employees are engaged in their work

The Competitive Advantage of Engaging Employees

I know what is expected

of me at work.

I have the materials and

equipment I need to do

my work right.

At work, I have the

opportunity to do what I

do best every day.

In the last seven days, I have

received recognition or praise

for doing good work.

My supervisor, or someone

at work, seems to care about

me as a person.

There is someone at

work who encourages

my development.

At work, my opinions

seem to count.

The mission or purpose of

my company makes me

feel my job is important.

My associates or fellow

employees are committed

to doing quality work.

I have a best friend

at work.

In the last six months,

someone at work has

talked to me about

my progress.

This last year, I have had

opportunities at work to

learn and grow.

Engagement Elements That Drive Performance

Ongoing Changes Affect the Role of Management in Meeting Basic Needs

The Gallup Q12 items are Gallup proprietary information and are protected by law. You may not administer a survey with the Q12 items or reproduce them without written consent from Gallup.

Needs Changes

Clear expectations Digitization

Materials and equipment Mobile technology

Do what I do best Matrix

Recognition Flexible scheduling

Cared about as a person Remote working

Development Job hopping

Opinions count Contingent workers

A mission or purpose

Committed coworkers

Strong social bonds

Progress discussions

Learning and growth

Publicly traded organizations that received the Gallup Great Workplace

Award experienced

4 TIMESHIGHER GROWTH IN EARNINGS PER SHARE (EPS)

than that of their competitors over the same period of time.

Gallup estimates that actively disengaged employees

cost the U.S. $483 billion to $605 billion each year in

lost productivity.

The Staggering Cost of Active Disengagement

CONVENTIONAL THINKING:

• Survey or program

• Emphasis on data and scores

• Favorability

• Isolated

• Happiness

STRATEGIC THINKING:

• Ongoing performance management

• Developing employees and managers

• High-bar performance predictor

• Integrated

• Ownership and well-being

Divide in Approaches to Employee Engagement

Group DiscussionDiscuss the following questions:

• How are the changes in your workplace impacting the engagement and performance of your

employees?

• What adjustments have you made to replicate best practices in and across your organization?

Workforce Demographics Are Changing …

Creating Untapped Opportunities

The Workplace is Becoming Increasingly Diverse

Millennials account for the largest generation in the workforce.

38% of the U.S. Workforce

This percentage will continue to climb as

baby boomers retire.

Understanding Millennials

Everything in your organization, from performance to servicing your customers to stock price,

depends on deepening your understanding of how millennials live, work and spend their money.

Unattached Unconstrained Idealistic Connected

Millennials Are The Most Racially and Ethnically Diverse Generation

Identify as

Non-Hispanic White

MILLENNIALS

54%GEN XERS

64% BABY BOOMERS

77% TRADITIONALISTS

Identify as Hispanic,

Non-Hispanic Black,

Asian, Other and

Undesignated

MILLENNIALS

47%GEN XERS

36% BABY BOOMERS

23% TRADITIONALISTS

Organizations are not as homogenous as they once were

Millennials Have Received the Most College Education

Some College

MILLENNIALS

26% GEN XERS

23% BABY BOOMERS

24%TRADITIONALISTS

21%College Graduate

MILLENNIALS*

21% GEN XERS

20% BABY BOOMERS

17%TRADITIONALISTS

Level of Education

*Based on millennials ages 21 and older

The Least Engaged Generation

71%of millennials are either not engaged or

actively disengaged in the workplace. 16%of millennials are actively

disengaged in the workplace.

55%of millennials are simply “not

engaged” in the workplace.

Millennials as Job-Hoppers

21%have changed jobs within

the last year.

50%plan to be with their company

one year from now.

6 in 10are open to different job

opportunities.

How to Engage and Leverage Your Millennial Workers

Clarify Expectations and Priorities

Have Ongoing Feedback and Communication

Provide Opportunities to Learn and Grow

Create Accountability and Purpose

Performance Management is Evolving …

Creating a Shift in How Employees Need to be Managed

of employees

strongly agree their

performance is

managed in a way that

motivates them to do

outstanding work.

A Disruption in Traditional Performance ManagementTwo Forces

DISAPPOINTING RETURN ON

INVESTMENTCHANGES IN THE WORKFORCE

Costly to the organization

Disengaging

Does not improve performance

Serves as a barrier to development

Constant changes in technology

Globalization

Overwhelming information flow

Changes in the workforce

As Gallup studied the annual review, it found five flaws in the traditional annual performance review approach. Gallup’s analysis

reveals that employees’ aversions to ratings, rankings and manager judgment are strongly tied to five obstacles:

Traditional Approaches Rely Too Heavily on The “Annual Evaluation”

The Five Pitfalls of the Annual Review

1 Infrequent Feedback

2 Lack of Clarity

3 Manager Bias

4 Adverse Reactions to Evaluation and Feedback

5 Misplaced Focus on Pay Incentives

The Current State of Performance Management

UNIFORMED

MANAGERS 34% of employees strongly agree that their manager knows what projects and

tasks they are working on

INEFFECTIVE

PERFORMANCE

COACHING23% of employees strongly agree that their manager provides meaningful

feedback to them

DISENGAGING

PERFORMANCE

REVIEWS14% of employees strongly agree that their performance reviews inspire them

to improve

Key Reasons Why Performance Management is Suffering

1Unclear and misaligned

expectations

2Ineffective and infrequent

feedback

3Unfair evaluation practices and

misplaced accountability

Many employees are not motivated to perform to their full potential.

Effective performance management must equip, inspire and improve performance.

The Shift to Performance Development

Traditional Performance Management

Occurs annually

Evaluations are based on performance ratings

Focused on fixing or addressing weaknesses

Top-down cascading of goals from leaders to individual

contributors

Primarily evaluates past behaviors

Top down, led by manager

Aimed at comparing employees for sake of compensation

Gallup’s Approach to Performance

Development

Continual performance conversations

Progress reviews based on clear expectations and accountability

Focused on leveraging strengths

Aligning individual goals with team goals and organization’s

objectives

Coaching focused on recognizing successes and reaching future

achievements

Collaboration between manager and employee

Aimed at individualizing expectations and development

Gallup’s Performance Development Cycle

Establish Expectations Lead Ongoing Coaching Conversations Create Accountability

1 2 3 4 5Role and

Relationship

Orientation

ConnectCheck-In Developmental

CoachingProgress

Review

Ongoing Coaching Conversations should be frequent, focused, and future-oriented.

Conversations should address expectations, successes and barriers.

CULTIVATING INDIVIDUALIZED DEVELOPMENT

Coaching Conversations RoadmapFive Conversations That Drive Performance

Examples of How Organizations Are Beginning the Transformation

Multiple Paths

Assessing the current state within the company

Introducing new manager development curriculum and

expectations

Adjusting performance metrics and management practices for

critical roles

Full Scale Transformation

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be copied, quoted, published or divulged to others outside your organization. All of Gallup, Inc.’s content is protected by copyright. Neither the client nor the

participants shall copy, modify, resell, reuse or distribute the program materials beyond the scope of what is agreed upon in writing by Gallup, Inc. Any violation of

this Agreement shall be considered a breach of contract and misuse of Gallup, Inc.’s intellectual property.

This document is of great value to Gallup, Inc. Accordingly, international and domestic laws and penalties guaranteeing patent, copyright, trademark and trade secret

protection safeguard the ideas, concepts and recommendations related within this document.

No changes may be made to this document without the express written permission of Gallup, Inc.

respective owners.

The Q12 items are Gallup proprietary information and are protected by law. You may not administer a survey with the Q12 items or reproduce them without written

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