Employee Engagement

February 26, 2014

Presentation Covers

• What is Employee Engagement

• Evolution of Employee Engagement

• Importance of Employee Engagement

• Employee Engagement at Engro

What is Employee Engagement?

Engagement as a psychological state in which employees feel a vested interest in the company’s success and are both willing and motivated to perform to levels that exceed the stated job requirements.

Engaged Employees

bring positive energy and

commitment

Increased Discretionar

y Efforts

Stronger Intent to

stay

Employee Engagement Evolution

- Enjoys the job

- Is not dissatisfied with terms and conditions

- Not necessarily a team player

Satisfaction

- Strives to achieve personal goals

- Contributes energetically

-Values achieving personal goals more than team/ organizational goals

Motivation

-Proactively seeks opportunities to serve the mission of the organization

-Willing to go the “extra mile”

-Is willing to withhold criticism and/or be constructively critical for the good of the organization

Commitment

-Loyal to organization, optimistic for the future

-Collaborates to achieve team goals

-Has a sense of belonging to organization

Engagement

What it is and What its not....

IS not about Is about

Pleasing all people all time How we treat and relate to people

A catch phrase for all HR programs Shared responsibility for creating future together

Having the best of every amenity Opportunities for performer

Continuous communication

EMPLOYEE ENGAGEMENT IS NOT A PROGRAM …… IT’S A CULTURE!!

Category of Engagement

Impact of Employee Engagement

Productivity and Performance

Profitability

Low Turnover

Innovation

Customer Satisfaction and Loyalty

Physical and Psychological well being

Less quality defects

Your customer tell your

friend

Their friends call

you and want to buy

You get business results!

1. You treat your people

well

2. Your people

treat your customers

well

Impact of Employee Engagement..cntd.

Similar businesses engagement level checked, data points: 681,799 employees,

23,910 independent business units in 125 companies

Fully engaged employees are:

62% less likely to be involved in an accident on the job

18% more productive

12% more profitable

51% less likely to leave the organization

12% better at engaging customers

27% less prone to absenteeism

Employee Engagement & Business Results

Data: 2002-2004 performance of 89 publically traded companies were compared to their actual competitors (7.3 competitors on average per

company)

18% higher EPS than competitors

15.6% increase from baseline

Growth rate of high engagement companies was 2.6 times the growth rate

of the low engagement companies

Need for Employee Engagement for Engro

• Performance

• Business Results

• High voluntary turn over

1. Overall engagement

level

2. Identifying pain points

3. Strategy to address pain points

4. Execution

Process for Initiating Employee Engagement

1. Identification

of problem

2. Made part of

the objectives

3. Vender Selection

4. Report Generation

4. Action Plan

1. Data Driven approach to gauge effectiveness of HR & leadership practices

2. Input for HR strategy & initiatives

3. Employee engagement to be the KPI in Corp Board dashboard

4. Target from Board.

Employee Engagement Survey

• Launched for the first time in 2011.

• Mercer methodologies was selected based on proper valuation by a cross functional HR team.

• CEO message was sent to all as a launch.

• Branding was done to create impact.

What’s next……

Results presente

d to Manage

ment

Special Session

were held with

Departments

Employee’s

feedback

communicated to the

DMs

Departmental

EEI

Target

Setting

Employee’s

feedback

communicated to the DMs

Unit

EEI

Action plans

reviewed

Execution and close

monitoring

Results Communication

Action Plan

Target Setting

HR Dimension

Quality and Customer Focus

Ethics and Integrity

Teamwork and Cooperation

Comm. and Info. Exchange

Leadership and Direction

Infrastructure and Support

Immediate Manager

Career Growth

Performance Management

Compensation & Benefit

Training and Development

Work - Life Balance

Key Enablers Acquire Bond Comprehend Defend

Outcome

Advocacy Overall

Satisfaction Discretionary

efforts Boundary less

Talent

Business Results Business Focus Performance Low Attrition

Employees clearly know their role, have what they need to fulfill their role, and can see the connection between their role and the overall

organizational purpose

Employee Engagement Framework

Improvement made resulted in…

• Performance – increase in Production of products (PVC, EDC, Caustic)

• Business Results –from losses to profits

• High voluntary turn over- 4% drop in the attrition over the past three years

“Connect the dots between individual roles and the goals of the organization. When people see that connection, they get a lot of energy out of work. They feel the importance, dignity, and meaning in their job.” -Ken Blanchard and Scott Blanchard, Do People Really Know What You Expect from Them? Fast Company

Thank you!

ANNEXURE

Employee Engagement Survey Evaluation

No. Criterion Description Wt.

Score on the relative scale of 5, 5 being the best among options

Q12 Hay Mercer Engage

HR Nerejo

HR

1 Level of analysis

How well the survey links the outcome on various engagement criteria to root cause? Does it help in selecting key focus areas that, if improved, will result in significant enhancement in employee engagement levels? Is the analysis statistically valid?

35% 5 4 4 2 3

2 Subsidiary specifics Does the survey give the option of adding few subsidiary specific questions?

10% 5 5 5 5 5

3 Support Services &

Trainings

Quality of customer support service and training mechanism? Capability of the service provider to support us in developing and implementing post survey strategy?

25% 2 2 3 1 2

4 Alignment with internal systems

Alignment of survey with the terminology and systems currently being used in the organization?

10% 1 5 3 1 1

5 Benchmarking Does the survey allow to benchmark results with local and international organizations?

20% 3 3 5 1 1

Overall Score 3.45 3.5 3.95 1.75 2.35

Criteria of Evaluation

Why Mercer?

Validity of tool

Depth of analysis

Local presence of Mercer’s team

Local benchmarks – LOTPTA, Coke, Nestle, Telenor

International benchmarking with similar business possible

Facilitation in action planning process

Affordability

Employee Engagement Levels

Dissatisfied

Drivers of Engagement – Input Variables

1. Work Organization

2. Quality & Customer Focus

3. Communication

4. Work/Life Balance

5. Job Security & Career Growth

6. Teamwork & Cooperation

7. Ethics & Integrity

8. Immediate Manager

9. Performance Management

10. Compensation

11. Leadership & Direction

12. Training & Development

13. Engro specific dimensions etc; Safety & Security

How does it work??

Action Planning – Organization and Divisional Segmentation

Focus Areas –Drilling Down the Dimensions with High Correlation with EEI and Low Ratings by Employees to Identify Pain Point

Analysis – Correlation with 12 HR Dimensions

Outcome – Employee Engagement Index (EEI)

89%

76%

82%

77% 73%

76% 72%

62%

57%

62% 65%

83%

66% 69%

61% 60% 58%

64%

42%

47%

35%

40%

30%

40%

50%

60%

70%

80%

90%

AIMA

Engagement Drivers