Employee Engagement – Leveraging Leadership and Communications to make a Difference

This material and any accompanying remarks are provided for informational purposes only and nothing contained in either should be taken as a legal opinion or as legal advice

Copyright 2014 Willis North America, Inc. VA State SHRM – April 30, 2014

Why Employee Engagement Matters

22% higher profitability 21% higher productivity 10% higher customer metrics 37% lower absenteeism 48% fewer safety incidents 41% fewer quality incidents

(defects)

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Engaged companies outperform their competition

TO WIN CUSTOMERS – and a bigger share of the marketplace – companies must first win the hearts and minds of their employees

Definition of Employee Engagement

“A heightened emotional and intellectual connection that an employee has for his/her job, organization, manager, or coworkers that, in turn, influences him/her to apply additional discretionary effort to his/her work.”

--The Conference Board

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New Rules of Engagement – BI World Wide

Employee Engagement

Employees engage with their employer in four distinct ways:•Company – employees feel personal attachment, affiliation, passion toward the company as a whole

•Job - employees value and feel personal involvement with their work and the tasks associated with their specific jobs

•Supervisor/Leader – employees feel personal attachment, commitment, and affiliation with their direct supervisors and higher level leaders

•Colleagues/coworkers – employees value relationships and feel emotional attachment to the other members of their team or to colleagues that they work with directly.

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When it Comes to Employee Engagement, One Size Does Not Fill All, Cornell University CAHRS April 2013

Current State of Employee Engagement

50% would like to leave their jobs, including 25% of best performers.

(Right Management)

74% of departed employees cited a lack of employer engagement as their principal reason for leaving.

(Harvard Business Review)

Disengaged employees are 24% less likely to quit than engaged employees. (Conference Board)

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Can you tell by looking?

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Fully Engaged (30%)

Disengaged (20%)

Partially Engaged

(50%)

The Gallup Organization – 2013 State of the American Workplace Report

Engagement Categories

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Drivers of Engagement

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In addition to

Transparency

Openness

So how can we move engagement levels?

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Leadership, Communications and Knowing your Workforce

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Top drivers of sustainable engagement among U.S. workers are

Leadership

Stress, balance and workload

Goals and Objectives

Supervision

Organization’s image (more specifically your EVP)

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2012- 2013 Towers Watson Talent Management & Rewards Survey

1. Leadership

Employee engagement starts at the top.– Key driver is the actions of senior leaders

• Leaders must demonstrate support for an engaged company culture by personally living their company’s values.

Best Practices from Best Employers– Make Employee Engagement a Business Priority– 6 out of 10 companies report Employee Engagement as the #1 objective of

their people program investment

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Leadership

Senior Leader Mindset:

A. “Give ‘em an inch and they’ll take a mile”

OR

B. “If we give, they will give back.”

A. Employee Engagement is desirable

OR

B. Employee Engagement is critical for our business success

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Leadership and Connecting with Employees

Encourage senior management to be a part of the employees’ corporate life. – Install regular sessions where senior management

speaks to all employees and create virtual ask your CEO — where employees are being heard.

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•Write to Dominic•Read Dominic’s Blog•Request a video, phone

call or client visit with Dominic

CEO CORNER

Leadership and Connecting with Employees

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“When leaders tell employees where they are going, why they’re going there and how they are going to get there – and when they provide appropriate levels of trust, recognition and empathy - productivity goes up.”

Communication: The Cornerstone of an Engaged Workforce Culture

The Nine Principles of Service and Organizational Excellence

1. Commit to Excellence2. Measure the Important Things3. Build a Culture around Service4. Create and Develop Leaders5. Focus on Employee Satisfaction…8. Communicate at all Levels

How to Increase Belief In Leadership

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Connect– Leaders must show that they value and respect their employees.

• If an employees’ relationship with their managers is fractured, then no amount of perks will persuade employees to perform at top levels.

Convey/Communicate– Good Leaders provide clarity around expectations, provide

regular and routine feedback about performance (both individual and organizational) and what one needs to do to advance or take on new tasks/opportunities.

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2. Relationship with Direct Manager

7 Things Every Great Boss Should Do

Acknowledge – let employees know they are doing a good job

Motivate – set high standards and stick to them enlisting employee input

Communicate – clearly, honestly and often

Trust – believe your employees can meet or exceed organizational goals and support them in their endeavors

Develop- provide tools and training so as your employees can reach full potential

Direct – challenge your employees but not overwhelm them

Partner – create and cultivate a sense of camaraderie

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In simpler terms:

Treat your employees right:– Respect (being sensitive to needs, desires and goals)– Objectives (set clear objectives involving them in the

process)– Awareness (increase awareness by providing feedback)– Dialogue (on-going regular communications)

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ROAD

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3. Communications – Leadership/Management

Managers person-to-person, day to day

interactions influence how they feel

about their work environment, the value

they create for the organization and their pay and

growth opportunities.

Their communications and interactions with their team needs to be cognizant of their workforce’s communication preferences and other characteristics to make this relationship a positive one.

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Emotional Intelligence – Blended Leadership

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Adopt your Management Style – Find Opportunities to Connect/Convey & Motivate

Know your Workforce…

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Managing/Coaching Millennials

Offer plenty of help

Create a collegial and team-oriented culture

Rewards for innovating and taking appropriate risks(Praise can be more powerful than money)

Checklists/guideposts/milestones—lots of feedback(Millennials mistake silence for disapproval)

Provide regular “developmental coaching”(Positive, forward–looking, skill building)

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How to increase Satisfaction with Immediate Supervisor

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Organization’s Image - Employee Value Proposition

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Communication of the things that make your organization a great place to work is essential.

Communications and HREmployees are ill informed…

41% of workers rely on word of mouth among friends for advice/info about benefits

16% of employees say they are not very informed about benefits offered at their company

Only 25% of employees felt they received a lot of information about their compensation systems

Only 46% were satisfied with the openness of their compensation programs/systems

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Sibson’s Rewards of Work Study

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Best Practice Example

Employee Value PropositionAt the Front Counter – Engaged and Committed Employees

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To identify McDonald’s EVP, they conducted an unprecedented effort to gather input from crew and managers. They received responses from nearly 10,000 restaurant employees from 55 countries about what they love most and least about working at McDonald’s. Identified key themes around ““People and Culture,” “Flexibility and Variety,” and “Development and Opportunity”

Family & Friends – “I work in an enjoyable, energizing atmosphere where everyone feels part of the team.”Flexibility – “I have a challenging, varied job that has the flexibility to fit into my lifestyle.”

Future – “I have an opportunity to grow and progress by learning personal and work skills that will last me a lifetime, whatever I choose to do.”

HR Communications

Do you believe your employees are paid fairly?

Do you believe you are paid fairly?

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What information is shared within your entity regarding compensation?

Salary Ranges

Incentive Programs

Managers also tend to share what it takes to – Expand an employees role– Improve performance– Obtain training

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Employee Communications

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2012 AON Hewitt Study

Print Collateral– Direct Mail– Total Rewards Statements

Face to Face Communications– Focus Groups– Town Hall Meetings– Benefit Fairs

Electronic/Digital– Internet/Intranet– Email – Text Messaging– Videos– Social Media

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When it comes to Communication – one size definitely does not fit all

4 generations in the work force with different:•Thoughts and values•Perspectives•Ways of managing, communicating and problem solving

Know your workforce/audience

Where they are located;

How long they’ve been employed;

Their job role;

Age and Gender, etc.

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Total Rewards and EVP Statements

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EVP Brochure

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Employee/Total Rewards Portals

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“one-stop shop” for total rewards information

Available Courses

Courses Completed

ProfessionalDevelopment

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Print Collateral - Direct Mail

Sent to new hires as part of a welcome packet from the

Chief Human Resources Officer.

Electronic - Intranet and Internet

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Campbell's compensation philosophy supports our Success Model.

The foundation of the model — “Winning in the Workplace” — recognizes that our people drive profitability and our competitive advantage.

We understand that paying competitive wages is critical to attracting and retaining the talent we need to build a company that can produce extraordinary results and compete over the long term.

Our compensation program is market-based and performance-driven:

•Campbell conducts a comprehensive market analysis each year to ensure our compensation programs are competitive with the appropriate set of peer companies.•Employee performance is evaluated as part of Campbell's annual Performance Management process. Consistent with the Campbell Leadership Model, employees are evaluated and rewarded based both on what they do (results they create) and how they do it (behaviors they demonstrate).

www.campbellsoupcompany.com

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Engagement & RecognitionWe believe that our employees feel most valued when they are fully informed, understand the company's business goals and plans, and are invited to offer their feedback on a regular basis.

Research shows that engaged employees are more productive and profitable as well as more customer-focused, safer, and more likely to stay with the company. At Campbell, we firmly believe that employee engagement is one of the most important indicators of our ability to drive performance improvement and win in the workplace. In fact, every employee who participates in our Performance Management process must include a specific objective around engagement.

The Way We WorkBuilding a safe, diverse, inclusive, engaged and socially responsible workplace that delivers business results with integrity

While we are continually looking for ways to leverage Campbell’s world-class engagement to drive sustainable business results, we believe employees feel most valued when they are:

•Recognized and celebrated for their contributions•Well-informed and aligned with how their work connects to the Company’s overall goals and plans•Encouraged to bring their uniqueness to work each day•Engaged in an ongoing dialogue that encourages the sharing and challenging of ideas

Measures how Campbell’s overall Grand Mean score compares relative to Gallup’s overall database of respondents

Electronic – Video Post Cards

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Unique way to engage employees (and applicants)

Distributed via email to employees’ inboxes

Views can be tracked and measured

Can be viewed on smartphones

Social Media

Vehicle to share company information and get employees to talk, share information and collaborate.– Internal social media platforms allows

employees to post presentations, ideas, etc. and receive instant feedback from other workers.

– Examples• Experience Forum – connects new hires

with other new hires to share experiences or answer questions.

• PepsicoConn3ct – LinkedIn group for young professionals within Pepsi.

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Targeted Communication Solution – Knowing your Audience

Social Media & Gen Y40% check their cell phone every 10 mins45% check social media as part of their daily routineDon’t block facebook at work

– 56% won’t work at your company if you ban it!

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Formula for Communications Success

Plan before you launch Define objectives, identify key stakeholders,

and create a strategy and plan of action.

Stick to your message Determine key messages at the beginning

and communicate them consistently.

Make sure Managers/Supervisors are onboard Don’t underestimate this group—they have influence over employees and can

be advocates or barriers

Rinse and Repeat Reinforce key messages multiple times and across a variety of media in a

coordinated way . People are affected differently by different formats and messages.

Measure the overall effectiveness of the initiative

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In Closing…

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What are High Performing Companies Doing Differently?

Increased leadership

capabilities at all levels

of the company– Leaders are accessible, visible and listen/encourage employee

feedback Inspire trust and respect throughout the organization Connect today's work, initiatives, and changes with where the

business is heading Communications is core to the culture

– They commit to open, honest, regular communication – Employees understand the “why” behind their jobs – what they’re expected to achieve and why it’s important to the greater good of the organization.

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Top performing firms cultivate engaging cultures

HR and Communications

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Employee Value Proposition

Organization•Culture

•Mission/ Values

•Leadership

People•Talent•Social

Networks

Work Environment•Challenge•Autonomy

•Experiences

Career & Development

•Training•Performance Management

Benefits•Health & Welfare

•Financial Security

Compensation•Base

•Variable/Incentive

“Great Company”

“Great Job”“Great Rewards”

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Treat employees as valuable people with skills rather than as people with valuable skills

People will support a ‘world’ they understand, support and help to create

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HUMAN CAPITAL PRACTICE

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Human capital’s impact on business results is a critical source of opportunity and risk. At Willis, we understand the human capital risk our clients face, and we work in partnership to deliver

solutions that drive and support your organizational goals.

BROKERAGE AND CONSULTING Program renewals and marketing Request for Proposal (RFP) processes Proposal analysis Carrier selection and implementation

SUBJECT MATTER EXPERTISE Communication Health Outcomes HR Partner National Legal & Research Group (NLRG) Reporting & Analytics

Contact your local office for more information on our Human Capital Practice