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Transcript of 3M Human Resources Measurement © 3M 2010. All Rights Reserved. Karen B. Paul, Ph.D....
3M Human Resources Measurement
© 3M 2010. All Rights Reserved.
Karen B. Paul, Ph.D. ([email protected])Benjamin Schneider, Ph.D. ([email protected])
Engagement: A Multiyear Affair
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© 3M 2010. All Rights Reserved.
Karen B. Paul, Ph.D.
Manager, HR Measurement3M Company
Background Responsible for creation and execution of:
Assessment and testing Competencies 360’s Organizational survey research and executive assessment
Presented research for: ASTD, HRPS, SIOP, APA and APS
Published in professional journals: Journal of Applied Psychology Training and Development
Author of chapter in: Handbook of Employee Selection Managing Human Resources for Environmental Sustainability
Ph.D. Industrial and Organizational Psychology
Bowling Green State University
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Senior Research Fellow, Valtera & Professor Emeritus,
University of MarylandPh.D. in Industrial and Social Psychology
University of Maryland
Benjamin Schneider, Ph.D.
Background Responsible for advising on consulting projects, writing research
papers, and working with clients. Special interests in organizational climate and culture, employee
engagement, service quality, linking employee survey data to corporate effectiveness, and the role of personality in organizational life.
Published nine books and 150+ professional journal articles and book chapters. The latest book (with W. Macey, K. Barbera, & S. Young is Employee Engagement: Tools for Analysis, Practice and Competitive Advantage (Wiley-Blackwell, 2009).
Taught at the University of Maryland for many years as well as Yale University, Michigan State University and for shorter periods of time at Bar-Ilan University (Israel; on a Fulbiright), and Dartmouth College.
Winner of several awards for his research including SHRM’s 2009 Michael R, Losey Award for his work on service quality.
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Little Bit of Backgroundon 3M and Valtera
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More Than 35 business UnitsOrganized Into Six Market-Leading Businesses
Consumer and Office Display and Graphics Electro and Communications Health Care Industrial and Transportation Safety, Security and Protection Services
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AbAbrasives
BiBiotech
AcAcoustics
CeCeramics
AdAdhesives
DdDrug
Delivery
AmAdvancedMaterials
DiDisplay
AnAnalytical
DoDental &
Orthodontic Materials
AsApplicationSoftware
EcEnergy
Components
EmElectronicMaterials
FcFlexible
Converting & Packaging
FeFlexible
Electronics
FsFiltration,
Separation, Purification
FiFilms
ImImaging
FlFluoro-
materials
InInspection &
Measure-ment
IsIntegrated Systems Design
LmLight Mgmt
MdMedical
Data Mgmt
MeMetal Matrix Composites
MfMechanical Fasteners
MiMicrobial
Detection & Control
MoMolding
MrMicro-
replication
PePredictive
Engineering & Modeling
NtNano-
technology
NwNonwoven Materials
RpRadiation Processing
SeSensors
PoPorous
Materials & Membranes
PmPolymer
Melt Processing
WoWound Mgmt
VpVapor
Processing
SuSurface
Modification
SmSpecialty Materials
OpOpto-
electronics
PdParticle & Dispersion Processing
PrProcess
Design & Control
PpPrecision
Processing
TtTrack and
Trace
WeAccelerated Weathering
3M’s Technology Platforms
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SalesWorldwide.................................International (63% of total)........
EarningsNet income................................
R&D ExpendituresFor 2009................................... Total last 5 years...................
EmployeesWorldwide......................................... United States.................................
567 U.S. Patents Awarded
Year-End 20093M Facts
$23.1 billion$14.6 billion
$3.19 billion
$1.29 billion$6.86 billion
74,83531,513
$23.1 billion$14.6 billion
$3.19 billion
$1.29 billion$6.86 billion
74,83531,513
Where are We?
Sell products in over 200 countries Operations in more than 65 countries 35 international companies with manufacturing
operations, 35 with laboratories In the United States, operations in 28 states 6700 researchers worldwide; 3,400 in the
United States
Contributions:
In 2009, donations of cash and products totaled more than $50 million in the U.S. alone
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3M Human Resources
HR partners withthe business to drivegrowth through people
GOVERNANCE HR principles Strategic HR oversight Policy development and adherence Compliance
BUSINESSHR MANAGERS
INFORMATIONSERVICES
Benefits Compensation Employee relations Employee services Measurement and assessment Mergers, acquisitions and transitions Talent acquisition Talent development Workforce planning and management
CENTERS OFEXPERTISE
3M Source 24/7 Information and transactions
HR Contact Center Resolution and referral services
Leadership team counsel HR strategy supporting business
strategy Human Capital plans
emphasizing identification and development of talent
Brokerage of resources required to meet business HR plans
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Grow the current core business
Complimentary acquisitions
International growth
Build new businesses
6. Design compensation and benefits plans to meet evolving business needs
1. Engage employees and strengthen employment brand
2. Enhance ability to acquire and retain the right workforce
3. Enable effective human capital planning and increased workforce productivity
4. Optimize HR administration including global web and call centers
5. Accelerate the development of talent
Engaged, Productive
and Diverse 3M Employees
3M Strategy Acceleration Through HR
Leadership and Expertise
3M Workforce and Organizational
Readiness
Operational Excellence and Productivity of
Global HR Services
Protect the Corporation
3M StrategiesHR Business
Critical Ys
HR VisionHR partners with the business to
drive growth through people.
HR MissionProvide workforce and organizational
solutions to accelerate strategy execution and drive
operational excellence.
HR Strategies
2010-2014 Global
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About Valtera
Valtera provides premier human capital consulting and technology solutions to organizations worldwide in the following areas: Surveys and Analytics, Employee Engagement, Leadership Assessment, Testing and Selection, and HR Audits and Legal Support.
Valtera was founded in 1977 and has been providing employee survey services globally since that time. Valtera’s long and successful history of providing employee surveys has been built on the basis of our consistently high standard of delivery for some of the world’s leading corporations. Valtera managed the international data warehousing and reporting for the Mayflower global survey consortium from 1992 to 2010 with 100% accuracy.
Valtera corporate leaders are recognized authorities in the field of organizational/industrial psychology and they are intimately involved in the execution of large-scale projects. Their recently published work on the organizational drivers of customer satisfaction was selected as the winner of the 2009 Journal of Service Research Best Article Award sponsored by IBM.
Valtera uses a fully integrated online survey platform to administer paper and web-based, multi-language global surveys for hundreds of thousands of participants in a single wave.
Beyond offices just outside of Chicago Valtera has offices in the Netherlands and the Czech Republic, and working partnership with firms across the world including firms in Europe, China and India.
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Everybody wants to have an engaged workforce because it can forge a path to competitive advantage.
Yet ask five different people to define engagement andyou’ll likely get five different answers ….
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What is Engagement?
It is all about alignment.
3M’s Definition
en●gage●ment (in gājd/ měnt)
“an individual’s sense of purpose and focused energy, evident to others in the display of personal initiative, effort and persistence directed toward organizational goals.”
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Engaged employees behave:
Persistence at difficult tasks Helping others Taking Initiative Going beyond expectations And so forthSatisfied employees behave:
Low absenteeism Low turnover Low substance abuse
Is Satisfaction the Same as Engagement?Behaviors
Engaged employees are satisfied too…
And demonstrate satisfaction behaviors as well as engagement behaviors
© 2006 Valtera Corporation. All Rights Reserved.
Why Should We Care?
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A Broader Business Case
True competitive advantage is indexed between MANY firms, not simply measured within ONE firm.
© 2006 Valtera Corporation. All Rights Reserved.
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Engagement – Even More Critical in a Tough Economic Climate
When the urgency and need are clear, employees deliver!
3M has learned strong leadership “engages employees” in tough economic situations and pulls us through faster than the competition
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The Conditions that Yield Engagement Attitudes and Behavior
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ConditionsForEngagement
EngagementAttitudes
EngagementBehaviors
© 2006 Valtera Corporation. All Rights Reserved.
OrganizationalOutcomes
The Engagement Model
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© 3M 2010. All Rights Reserved. © 2010 Valtera Corporation. All Rights Reserved.
How to Build Conditions for Engagement
Treat people fairly Accountability and Rewards – metrics, pay,
promotions, performance management Interpersonally – respect, warmth Procedurally – keep promises, involve people in
decision-making, have an operational rhythm, distribute work equitably
Pay attention to the seemingly mundane Technology Support Internal battles
Recognize and celebrate
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How Does Trust in Management Impact Engagement?
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Engagement
BottomLine Results
Trust
Work Group
Supervision
Leadership
Based on US 2009 Standard Opinion Survey Results & 2009 US Leadership Survey
Communication
Growth
Resource Allocation
Alignment
CustomerFocus
Recognition
Values
Responsibility
IntentionTo Stay
Innovation
Change
Loyalty
JobSatisfaction
CommitmentFeedback
PerformanceManagement
Total Compensation
Diversity
Safety*
Job Demands
Career Progress
Conditions for Engagement<50%
Favorable
50-80%Favorable
>=80%Favorable
Legend
Poor
Good
Excellent
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We know from our own research at 3M that this is the single best predictor of employee attitudes….
The first lens of how employees view the workplace
Data from 3M Poll
Trust in Management
YESNO
56
28
16
919
72
Division Management has a highlevel of personal integrity.
Division Management has a highlevel of personal integrity.
Division Management is goodat driving the changes
needed for growth.
Division Management is goodat driving the changes
needed for growth.
57%57%
16%16%
2000 3M Poll2000 3M Poll
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Engagement happens when people feel safe to take action on their own initiative
People feel safe when they trust their environment People trust their environment when they feel fairly treated
by it
The key is to create a culture of trust in organizations
Fairness Trust Feel Safe Engaged
Basic Building Blocks of Engagement
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* From Whitener, Brodt, Korsgaard & Werner (1998)
Dimensions of Managerial Trust
Managerial consistency Acting with integrity Sharing and delegation of control Openness of communication Demonstration of concern
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Achieving Employee EngagementWhat are We Doing?
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Engagement Objective
Improve employee engagement levels to drive organizational outcomes
Key Components Corporate-wide:
• Improve employees’ understanding of 3M’s vision, future and decision-making• Increase communication of business goals, plans and achievement• Involve employees to help them understand what is engagement and what is
the business case
Within Businesses:• Provide support to the Big B/Area/Staff Groups to take action on the concepts
communicated in and through the corporate-wide components of the strategy• Additional areas of focus to address identified gaps
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HRStrategy
Enga
ge E
mpl
oyee
s
How to make my workchallenging and meaningful
Align to the big 3M
Leadership responsibility to build the environment
HRSub-strategies
HR TacticsIn Support of Sub-strategies
2008-9 Strategy Summary Global Goal Tree (1 of 4)
Career paths project
Mentoring
Coaching
Job rotation
360
Connection to work / life benefits
Connecting engagement to employment brand
NEO
Linking with sustainability
Integrate innovation into the story
Built into leadership competencies
Emails from CEO
Imbedded in leadership programs (GM/MD; ALDP, etc)
Messaging of engagement as a leadership responsibility
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CorporateLevelIntervention
CountryLevelIntervention
Business UnitIntervention
Train HR WWBuilt Corporate Tools and Resources
Where Are We?
Got most of the pieces in place Differences in U.S. / international structure require
more attention
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Our communities, our world.Respect our social and physical environment around the world.
Driving a Growth CultureEngaging Every Employee to Serve Our Customers, Shareholders and Communities
Customers Employees Shareholders
Brand Employment Brand Shareholder Promise
Innovative products with superior quality, value and service
Acquire, retain, value and develop employees’ diverse
talents, initiative and leadership
Provide attractive returns through sustainable global growth
Customer loyalty and share growth
Employee engagement, mind share and productivity Growth in 3M stock
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Alignment of HR Practices
Succession Planning
Human Capital
Planning
Performance Appraisal
Consensus Review
Tier ReviewsAssessment
Development
Leadership Attributes
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Leadership Attributes
Thinks from outside in Drives innovation and growth Develops, teaches and engages others Makes courageous decisions Leads with energy, passion and urgency Lives 3M values
Engagement is essentially a leadership responsibility.
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Seeing Worldwide Improvement in Scores
Book on Employee Engagement Came Out Named by APQC as one of the Best for
Rewarding, Engagement, & Retaining Key Talent Profiled by SHRM, Conference Board and webinar with i4cp 2008 Named by CEO Magazine #1 Best Companies for Leaders Named by Fortune #16 Global Top Companies for Leaders Engagement Video Series for Supervisors & Managers Well-Received Blog In Place HR Vendor Conference on Engagement Employment Value Tool was Rolled Out Great things going on in the businesses and countries
2009 Engagement
Employment Brand
Key Messages:Driving 3M’s global leadershipInventing the future with technologySucceeding through collaborationCreating solutions to sustainability challengesDeveloping diverse talents, building careers
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Building a Stronger Brand
Employee Engagement
Customer Engagement
Share of Customer
Sales Revenue
Start Here
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Definitely in Social Media www.facebook.com/3MCareers.US
What’s Next Globally?
Sales, Lab/TS:
Linked In
Landing Pages
SEO Pay-Per-Click Campaigns
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Employee Engagement
A Green 3M Employee
Assistance Program
Community Giving A Healthier You
Taking Careof the
Environment
Taking Careof Others
Taking Careof Our
Communities
Taking Careof Yourself
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3M Poland Green Week Program15-19 June 2009Program Objectives: Building and enhancing 3M image
(Employment Brand) as a socially responsible company
Creating positive impact on the Employees Engagement and work atmosphere
Ecological education including 3M best practices
Increasing environmental awareness among the Employees
Joint program of CMPA, EHS and HR
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Monday to Friday ActivitiesMonday: Recycling Wednesday: Switch Off Friday: Make It Green Presentation of the film: The
Inconvenient Truth global warming documentary movie
Collect used paper, cans etc. to gather money in return and donate the money to local ZOO
Mailing – recycling!
Take back event – a small gift for employees
Contest „Green eco-photo” (awards: books, calendar with ecological advices), exhibition of best works
Clean your office (one hour desk cleaning)
Mailing – switch off!
Day with a car (bicycle, car sharing) – small awards for those who arrive first to work on bicycle
Seat trees, sow grass Bicycle race – options: For each km 3M pays 1 PLN and
donates the money to local ZOO Training bike on the site. Mailing – Green Office!
Tuesday: Save Thursday: Go On Foot Contest “Eco-film” (ecological films
recorded on mobile phones) – award the best film employees voting
Presentation of 3M ecological and sustainability projects
Calculate the energy you use! – Mailing
Quiz Eco-knowledge on the baseof 3M materials and mailing
Voting and selecting the best Eco-film Event “Exchange or forward”: bring your
old books or any products you are not going to use and exchange for other products you might use.
Mailing – go on foot. Economic driving.
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3M Thailand
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"Green Touch Campaign" to Enhance the Employee Engagement For Sustainability
As one part of Green Touch campaign, Employees' Children Environmental Protection Painting Contest was launched from July to September. Over 60 lovely kids' paintings were collected. Finally 19 paintings won the awards thru online voting and some of them were selected for making 3M China's New Year eCard
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Employee Engagement and Sustainability 2010Need to Be Doing So Much More… Engagement video for supervisors
and managers (Top Ten Things You Should Know about Sustainability)
Video contest Leadership survey roll-out
on January 27th
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A Green 3M Employee
Assistance Program
Community Giving A Healthier You
Taking Careof the
Environment
Taking Careof Others
Taking Careof Our
Communities
Taking Careof Yourself
Employee Engagement
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Making a Difference: Healthy Living Resources
A diversified four-part program designed to:
Reduce the demand for costly medical interventionsand minimize employee productivity loss
Help employees better manage their lives physically, socially and emotionally
Other employee objectives:Engagement | Recruitment | Enhance organizational commitment
Lower our long-term health care costs and enhance employee productivity
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Where We’ve Been: Key Accomplishments to Date
17,899 employees participated and received $100 incentive
Health plan administrators have reached out to at-risk employees and offered coaching classes and additional programs
August 2008 Program Launch
December 2008 – March 2009 Health Screenings and Assessments
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Engagement:Aligning Individual’s Purpose and Energy with Organizational Goals
Pride
in 3M
Brand ambassador Community partner Social responsibility and sustainability Family appreciation events Media coverage External recognition and awards
Career Fulfillment
Performance oriented company Challenge and growth Career advancement and broadening Personal career development Effective supervisor and peer relationships
Regular and Open Communication
Basic Employee Needs
Safe working conditions Equitable compensation and benefits Ethical business practices HR principles 3M values
Employee Engagement: Key Strategy to Growth, Innovation and Retention
Active visible leadership is needed to promote stronger levels of engagement.
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Engagement as a Leadership Responsibility
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Fundamentals of engagement are universal
The desire for meaning and purpose in the workplace knows no borders
How you capitalize on the fundamentals is local
People have needs Organizations have needs How you align these 2 facts can produce
engagement and financial success but is context specific
Global vs. Local Debate
“After all, results from their recent survey showed that 3M Mexico employees boast a 95 percent favorability rating. That feedback”, according to Shivitz, “is the best indicator of future financial success.”
Ed Shivitz,Managing Director, 3M Mexico
Stemwinder April 23, 2007
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Engagement
EnthusiasticWork Climate
Pursue Development
Remain at 3M
Adapt to New Ways
Take on New Roles & Responsibilities
Recommend 3M
Excited About Contribution
Best Employer
2009 Best
Best Placesto Work Spain
2008 Best 3M Czech Republic
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Quick Hits You Can Do
Focus on the customer Read a book or journal article together and discuss Random lunches Buy 1001 Ways to Energize Employees by Bob Nelson
Engagement isn’t just recognition but it is a small start in the right direction.
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Innovation and Engagement(What’s the relationship?)
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Three Work Areas: With Innovation at the Core
Sweet SpotCulture of Innovation
Engagement
Employment Brand
Sustainability
Perception of your company In the market place and the Value our employees derive
from working here
“an individual’s sense of purpose and focused energy, evident to others in the display of personal initiative, effort and persistence directed toward organizational goals.”
Triple bottom line: People, Planet and Profit
Social responsibility Environmental sensitivity Economic viability
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Submit Your Ideas for Products
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Gary Hamel The Future of Management
Dramatically accelerating the pace of strategic renewal in organizations large and small
Making innovation everyone’s job, every day Creating a highly engaging work environment that inspires
employees to give the very best of themselves
(p.40-41)
Formidable Challenges that Confront Companies in this New Century
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We Know From Our Own Research
Those 3M business labs that are more “engaged” have a more positive view of Innovation and 2 years later were more profitable
(r=.56 Innovation and Engagement)
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How can we do better?William L. McKnight