The Importance of The Importance of Employee EngagementEmployee Engagement

How secure is thefuture of your

organization inthese rapidly

changing times?

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TodayToday’’s Landscapes LandscapeThe world is changing at an exponential rate

As a result, business is also changing & facing serious threats

One of the biggest changes for business is the new workforce –people do not want the same things from their jobs & careers as they once did

Employee engagement is seen as one of the most important concepts for business today – how committed are employees to their jobs and the companies they work for?

Keeping people happy will bring about more organizational productivity and profit than nearly any other business issue

Business managers and HR departments must act proactively to come up with programs and strategies to engage employees and customers

The old management methods are no longer effective. Business needs to leverage “leadership” to drive employee engagement

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What is Employee Engagement?What is Employee Engagement?

Satisfied and motivated employeesSatisfied and motivated employees

Employees who are well aligned with achieving Employees who are well aligned with achieving the organizationthe organization’’s objectives, goals, and successs objectives, goals, and success

Management understanding what motivates Management understanding what motivates their people and how performance can be their people and how performance can be impacted by values and beliefsimpacted by values and beliefs

Drives company success: Customer Satisfaction, Drives company success: Customer Satisfaction, Culture, Operations, Financial Performance Culture, Operations, Financial Performance

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Why Do You Want Engaged Employees?

Enhanced interEnhanced inter--personal communication / personal communication / relationships (trust)relationships (trust)

More involvement and accountabilityMore involvement and accountability

Higher performing teams / departmentsHigher performing teams / departments

Retain and attract the best talentRetain and attract the best talent

Greater customer satisfactionGreater customer satisfaction

Improved business performanceImproved business performance

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Business Challenges

Obtaining new customers & retaining the old onesWorking too many hours80% of time spent re-activelyHiring, retention, turnoverFinding great salespeopleBTB: how to get to top decision makersBTC: how to get to the best buyersFinding competitive advantageWorking on the business instead of in the business

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Professional ChallengesProfessional Challenges

Workload, deadlines – inability to reach goalsInsufficient time and resourcesFinancial survivalLow trustDisempowermentChange and uncertaintyStaying current with technologyConfusion – lack of shared vision and valuesJob satisfaction – don’t enjoy workLack of integrity in boss/top management

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The War for Talent

Key employees are a major cost and value building factor in most companies in the 21st century

In both service & product companies, key employees are an increasingly immediate source of sales, revenues & earnings

A company’s ability to attract, keep and develop good employees is a distinct success factor

Key employees add to productivity and innovation like no other segment within the organization Source: Michaels, Ed. The War for Talent,

McKinsey & Company, 2001

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Key to Productivity & Innovationto Productivity & Innovation

The competence and professional skills of employees, their enthusiasm, motivation & loyalty, the spirit with which they interact between themselves, and with clients & customers, their willingness to endorse and work by corporate mission and standards, the empowerment they get from management, the corporate culture – are all crucial to productivity, innovation and other company growth and earning factors.

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The New Workforce

Employees want more time to spend with their families and for hobbies, sports & cultural events

Employees want to commute less, although they will relocate almost anywhere in the world for the right job

Employees want more respect and recognition. They are often as educated as their supervisors, and they want the respect and challenges that go with it and recognition for their suggestions & ideas

Employees want more than a great salary. They are interested in having a more fulfilled life, less stress, and more decision-making authority within their jobs

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Gallup StudyGallup Study

Source: Gallup Management Journal, 10/12/06

56%

29%

15%

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Impact on Financial PerformanceImpact on Financial Performance

Source: Gallup Management Journal, 10/12/06

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Employee vs. Customer Retention

A 2000 study in 6 different industries found a “significant” link between employee retention and the retention of customers

60% of the 3,000 customers interviewed were dissatisfied with the service they received

Twice as many blamed personnel over product or price

Many felt turnover was a “crucial” factor and said that lack of employee continuity and training are impeding their ability to get high quality service

Only 20% thought that their service-provider would be a good company to work for

Source: Roper Starch Worldwide & Unifi Network, a division of Pricewaterhouse Coopers, 2000

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Summing it up

One of the biggest challenges is the changing workforce

Active disengagement is costly to the organization

The “engagement” of the employee influences the “engagement” of the customer

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What Should Management do?

1. To achieve real productivity and profit, management needs to adopt methods of connecting the personal development of its employees with the organizational growth of the company

2. This “connection” is possible when employees are truly engaged

3. This level of engagement comes about when:

• employees have a strong emotional connection with their colleagues, their company & their clients

• employees are allowed to self manage

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Gallup Research

Source: Gallup Management Journal

Gallup research has shown that engaged employees:

Are more productive & profitable

Are safer

Create stronger customer relationships

Stay longer with their company than less engaged employees.

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Elements of Employee Engagement

1. The employees know what is expected of them and know what resources are being provided

2. The employees feel they are contributing to the organization

3. The employees must feel that their opinions are important and are being heard

4. The employees have the opportunity to discuss their progress

Source: Gallup Management Journal, 3/12/05

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“How to” for ManagersChart the Course for EmployeesChart the Course for Employees

Increase the ability to articulate the (strategic) big picture tIncrease the ability to articulate the (strategic) big picture to provide o provide increased meaning and value to the work done.increased meaning and value to the work done.Establish a set of mutually defined objectives and goals to focuEstablish a set of mutually defined objectives and goals to focus activities s activities and measure successand measure success

Establish a Working Environment that Drives Engagement Establish a Working Environment that Drives Engagement Understand the core elements of trust and how it promotes engageUnderstand the core elements of trust and how it promotes engagementmentUnderstand communication styles, individual motivating factors, Understand communication styles, individual motivating factors, and how to and how to drive engagement through interpersonal dialogue.drive engagement through interpersonal dialogue.

Ensure Employee Development and GrowthEnsure Employee Development and GrowthAlign employee roles and responsibilities for maximum effectivenAlign employee roles and responsibilities for maximum effectiveness ess Establish performance expectations, and delegating responsibilitEstablish performance expectations, and delegating responsibility to y to encourage employeesencourage employees’’ professional developmentprofessional development

Coach Employees for High PerformanceCoach Employees for High PerformanceDevelop coaching skills for increased engagement and optimized Develop coaching skills for increased engagement and optimized performanceperformanceManage employee performance and establish a climate of accountabManage employee performance and establish a climate of accountabilityility

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Chart the Course for EmployeesSet DirectionSet DirectionEstablish factors critical to your success.Establish factors critical to your success.Connect products/services to core competencies Connect products/services to core competencies and the value you provide to your customers.and the value you provide to your customers.Define specific measures to support success Define specific measures to support success factors.factors.Identify and implement initiatives/actions to Identify and implement initiatives/actions to reach goals objectives.reach goals objectives.Involve your employees in the dialog to shape Involve your employees in the dialog to shape your future success.your future success.

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Establishing a Working Environment that Drives Engagement

Establish the level of trust in your organization.Lead by example – increase trust through trustworthy actions.Establish a framework for effective communication (common language).Establish an environment that promotes active listening and understanding.Increase collaboration and productivity through dialogue.

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What Motivates your Employees?What Motivates your Employees?

A recent survey asked employees what factors influenced their commitment and motivation - The results are:

1. Being treated with respect …………………..85%2. Work/life balance ……………………………….79%3. Providing good service to others ………….74%4. Quality of work colleagues …………………74%5. Type of work …………………………………….73%6. Flexible working arrangements …………….70%7. Base pay ……………………………………………65%8. Variable pay ……………………………………….34%

Source: Mercer Human Resource Consulting HighImpact People Strategies; What’s Working Survey, 2004

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Ensure Employee Development and Growth

Evaluate how you spend your time relative to the five leadership roles. (Manager, Technician, Coach, Architect, Trailblazer)Identify and provide opportunity for employee growth.Delegate responsibility effectively Evaluate individual capabilityAssign responsibility in alignment with capability and growth potential

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Coaching Employees for High Performance

Evaluate your ability as a coach.Coach with purpose and avoid weakening tendencies.Leverage every interaction to coach.Establish clear non-negotiables.Confront poor performance and elevate accountability.

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Out with Old Management StylesOut with Old Management Styles

The traditional management role –command & control – is obsolete

Today, employees have systems (communications, IT) at their disposal and they can manage these systems themselves

Management needs to be available as a “helper,” to provide guidance, not to control employees by barking out commands that must be followed

Coaching should be the new management trend

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What is Coaching?What is Coaching?

Executive and business coaching is a process that allows the coach and client to directly focus on effectiveness, performance and satisfaction all at the same time

Coaching helps individuals gain clarity, remove self-imposed restrictions, and develop a plan for action

Coaching is a formal system that quickly and effectively brings about positive change – and sustains it!

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Act Now!Act Now!

Improve employee morale by improving your working environment

Train managers to think and act more like leaders to inspire employees to perform at their best

Develop strategic plans to help your company overcome the threats and changes affecting business & individuals in the 21st century

Help your executives set meaningful priorities that connect the people to the business

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Thank You Thank You for Your for Your

Time!Time!

David LiddellDavid Liddell

603603--424424--99999999

dliddell@skye-solutions.com