Cultivating Nearshore Employee Engagement: Proven Practices & Benefits
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Transcript of Cultivating Nearshore Employee Engagement: Proven Practices & Benefits
December 3-5, 2013 | San Jose, Costa Rica
© 2013 IAOP® All Rights Reserved
Proven Practices & Benefits
Jon Butler Information Services Group
Cultivating Nearshore Employee Engagement
December 3-5, 2013 | San Jose, Costa Rica
© 2013 IAOP® All Rights Reserved
► Sourcing, Strategy and Benchmarking market leaders ► $65 billion in client savings delivered ► 70% of the Global F100 are our clients ► Overseen 60% of all global advisory-led transactions ► Five decades of global leadership in sourcing-based solutions ► 12,000 engagements ► $365B+ in transactions ► Operations in 21 countries on 6 continents ► Data driven with the most comprehensive and deepest client databases in the market ► End-to-end solutions from opportunity assessment to new service operation ► Proudly independent with deep collaborative relationships with all major service and
technology providers
December 3-5, 2013 | San Jose, Costa Rica
© 2013 IAOP® All Rights Reserved
Lucky you! You’ve:
• negotiated a great deal with your service provider,
• signed the contract,
• put the proper governance and PMO mechanisms in place,
• established meaningful SLAs to ensure your business case will be met,
• set up favorable periodic contract re-evaluations and rate benchmarking,
• and finally outsourced that whole people management thing because…
…THAT is now your service provider’s problem, right?
But why are you continuously missing SLAs and why are the wheels falling off your business case?!?
December 3-5, 2013 | San Jose, Costa Rica
© 2013 IAOP® All Rights Reserved
► Why should you listen to me? I planned, created and operated the
fastest growing delivery center in a multi-national’s 52+ center network
Leading center in financial terms Lowest attrition in LatAm – among
lowest in the 200,000+ FTE company Delivery always on time, on budget The highest employee engagement in
the company!
Fact: Employee
Engagement is the emotional commitment the
employee has to the organization and its goals
Thrive
Stay
Say
Engaged employees go the extra mile!
Employee Engagement 101
December 3-5, 2013 | San Jose, Costa Rica
© 2013 IAOP® All Rights Reserved
While the Engagement-Profit relationship is obvious remember: Driving engagement for the sake of money is a dead-end street, driving engagement for the sake of people is a highway.
Companies with High Employee Engagement:
► Have twice the customer loyalty rates than those with low engagement
► Have a 5x total shareholder return
► Have 6% higher net profit margins
► Deliver products with fewer defect and better quality (one F100 company went from 5,658 to 52 parts per million)
Highly Engaged Employees:
► Are 87% less likely to leave their organization than non-engaged employees
► Average fewer sick days per year (2.69 versus 6.19)
► Are 5x less likely to have a safety incident and 7x less likely to lose time as a result
The Dollars and Sense Are There …if Done for the Right Reasons
December 3-5, 2013 | San Jose, Costa Rica
© 2013 IAOP® All Rights Reserved
Service providers
► Communicate to your teams how you help
the client meet its goals – reinforce the fact that this would be difficult for your clients to do by themselves – that’s why they have hired YOU!
► Communicate to your team your own organization’s goals and vision as a service provider
Employees stay with organizations when they believe it is in their self-interest; they exert discretionary effort when they believe in the value of their job, team or organization.
What value does your organization bring?
Clients
► Communicate to your teams how your
organization makes life better for people and clearly communicate their part in your organization’s vision and goals
► Spend time with your service provider employees to explain to them your business and how you are different from your competitors
¿Quien eres? / Who Are You?
December 3-5, 2013 | San Jose, Costa Rica
© 2013 IAOP® All Rights Reserved
Service providers
► Get rid of typical hierarchical structures ► Encourage people at junior levels in the
organization to speak up and reward them when they do – even when they are wrong!
► When clients visit arm your juniors with insightful questions to pose to the clients – the clients will be impressed and your people will feel a sense of pride
In order to affect, you must connect. Do junior people in your organization feel empowered to speak up?
Clients
► Communicate to all members of your team
and not just leaders ► During site visits spend time with the
management team AND with people more junior in the organization (without management around!)
► Remember: some of the best innovations come from people who are doing the day-to-day work
Aplanar el campo / Flatten the Field
December 3-5, 2013 | San Jose, Costa Rica
© 2013 IAOP® All Rights Reserved
Service providers
► If you are not a local national provider, see
the client perspective ► If the lead is not from the region, then insist
the lead learn the local opinions and perspectives on the service provider home country as well as client countries
► Remind clients interviewing your people about collectivism, simpatía, respecto and personalismo
History 101: Do you know the collective story of the people with whom you are working?
Clients
► Know the history of the area in which you
are working ► Determine where you want to fit in and the
role you should play ► Spend time understanding what people in
the region think of people from your country
► Essentially, find the cultural void/hurt and fill/fix it
“Conquistadores versus Gringos” / Father Figure or Big Brother?
December 3-5, 2013 | San Jose, Costa Rica
© 2013 IAOP® All Rights Reserved
Service providers
► When people join the organization give
them a tee shirt, when you have an event give them a polo shirt, when you are not busy give them something else to wear
► Get rid of the Styrofoam cups and get company-logoed ceramic mugs
► Rain pens, pencils and even umbrellas on everyone – all with company logos
When employee closets are full of company-logoed items it’s much harder to consider leaving an organization (and lose half their wardrobe). What do your employees wear?
Clients
► During site visits bring the treasure chest of
your own company-logoed items: Pens, pencils, mugs, mouse pads
► Fill your work area at the service provider with banners, posters, etc. that make it feel like “home” to the people in the trenches
► Bring unique products you may produce and give them to your employees
Llevar la Playera / Wear the Company Shirt
December 3-5, 2013 | San Jose, Costa Rica
© 2013 IAOP® All Rights Reserved
Service providers
► Do lots and lots of events – things
employees like to do (solicit their ideas) ► Go outside the normal “corporate”
activities and get creative: paintball, baseball games, mountain hikes, bowling, employee music bands, organized sports
► Have the lead participate in planning to lightly control it and show commitment
► Put junior people in leadership roles
When employees are busy planning events, outings and parties they don’t have time to think about working somewhere else. What are your employees thinking about?
Clients
► Try to schedule visits during events so that
you can participate ► Give money to your teams to sponsor
events (creates envy among other support team members to be on yours)
► Encourage team members to show you the local flair during visits so you can create collective “fun” memories with all team members
Diversión / Fun
December 3-5, 2013 | San Jose, Costa Rica
© 2013 IAOP® All Rights Reserved
Service providers
► Motivate the team by sharing every single
superlative about them ► Remind the team that your company is the
best so that when your team is tops in an internal category you can tell them they are the “best of the best”
► Challenge other centers in “friendly” competitions for the same reasons
Employees feel a sense of pride when they work for a “best in class” organization. What do your employees think about your organization?
Clients
► Recognize your service provider team when
they do something well and are recognized at higher levels within the organization
► Share every single recognition with them ► Give client-sponsored awards and
certificates to service provider personnel
Los Mejores de los Mejores / The Best of the Best
December 3-5, 2013 | San Jose, Costa Rica
© 2013 IAOP® All Rights Reserved
Service providers
► Find/create a common enemy, a rallying
point for the team ► Use a “rival” office location or anything that
helps to unite the team against the “enemy”
Remind your employees that you are all still part of “one big family”
Employees love to be part of a winning team. Are your employees accustomed to habitually winning?
Clients
► Find industry competitors and share
information about how your service provider team is helping you win in the marketplace
► Look internally for other locations against which you can compete:
Work quality Charitable giving Etc.
El Enemigo Común / The Common Enemy
December 3-5, 2013 | San Jose, Costa Rica
© 2013 IAOP® All Rights Reserved
Service providers
► Find opportunities for everyone in the
office to give to the community ► Never just donate money – invest sweat
equity into projects ► Make participation mandatory for all center
leaders – they don’t get to just supervise, they get to sweat, too
► Encourage employees to plan charitable events that pull everyone together
During a well-planned charitable event employees instantly see the fruits of their labor and experience a heightened sense of family. What brings your employees together?
Clients
► Consider sponsoring delivery center
charitable time – a low-cost option to increase your corporate “hours of time donated to charity” numbers
Dar a la Comunidad / Give to the Community
December 3-5, 2013 | San Jose, Costa Rica
© 2013 IAOP® All Rights Reserved
Service providers
► Don’t call your people a “team,” “group” or
even “employees” ► Use the word “family” on every occasion ► Being part of a family makes people
Reluctant to leave More proactive in helping others More likely to dispense
judgment/encouragement across all organization levels
People are social creatures and “long to belong.” Do your employees feel like part of the family?
Clients
► Remind people how they are part of your
client family ► Show them that you care and how valuable
each family member is
La Familia / Family
December 3-5, 2013 | San Jose, Costa Rica
© 2013 IAOP® All Rights Reserved
► To summarize: Having people who are emotionally
entangled with an organization’s success yields more benefits than the most well-written contract or set of SLAs ever could
Engaged employees will go the extra mile and do what needs to be done to make the organization successful
Service providers: Create highly engaged environments!
Clients: Get engaged with your service provider’s people!
December 3-5, 2013 | San Jose, Costa Rica
© 2013 IAOP® All Rights Reserved
¡Prosigamos!
Thanks / Gracias
Jon Butler +001 (704) 904-4444