Engage To Retain Azshrm Presentation 2010

Employee Engagement

What’s the business case?OR

“Why should I care?”

Presented byKaren Loftus, MBA/SPHR

Engage To Retain

August 31, 2010 Karen Loftus, Engage To Retain

Hewitt Associates statistics

HIGH Engagement organizations (65%+) outperformed the total stock market index.

1. During 2009, total shareholder return for these companies was 19% higher than the average.

2. Conversely, organizations with LOW levels (<40%) had a total shareholder return that was 44% lower than the average.


Towers Watson statistics

HIGH engagement companies posted a 19% increase in Operating Income & a 28% increase in EPS.

LOW engagement companies’ Operating Income declined by nearly one-third and EPS dropped 11%.

Conclusion: a 15% improvement in engagement will cause a 2% improvement in firm’s operating margin.


World’s Most Admired Companies (WMACs)

Nearly 70% say they are emerging from recession with their employees feeling more loyal than before (vs 50%).

94% report reduced staff turnover (vs 67%).

92% say they work innovatively, using new technologies or creative approaches to improve internal effectiveness (vs 73%).


EE Engagement defined

A high level of employee involvement, commitment to the organization, and job satisfaction.


Engaged employees…

Value, enjoy & have pride in their work; Are more willing to help each other and

the organization succeed; Take additional responsibility; Invest more effort in their jobs; Share information with other employees;

& Remain with the organization longer

than employees who are less engaged.


Source: The Gallup Organization


Bridge over troubled water?

"Everything we've seen suggests that trust, compassion, stability, and hope are what people need from leaders in times of trouble."

Jim Harter, Ph.D. Gallup's chief scientist of workplace management and wellbeing Co-Author of 12: The Elements of Great Managing


Fulfillment of 12 human needs

Such as… I know what is

expected of me at work.

I have the materials and equipment I need to do my work right.

I have a best friend at work.

This last year, I have had opportunities at work to learn and grow.


Driving Performance

Engagement alone isn’t enough to drive individual & organizational performance.

Employees also need to be ‘enabled’ to channel their efforts productively


Enabling (in a good way!)

Having the right tools to do their job Information Technology Equipment Finance Other support

Freedom to focus on their responsibilities without being distracted by procedural restrictions & non-essential tasks


Hay Group statistics

Companies in the top quartile on both engagement and enablement achieve revenue growth 4.5 times greater than those in the bottom quartile. Employee performance is 10% higher in

companies in the top quartile on engagement than those in the bottom quartile.

Employee retention is 40% higher. Customer satisfaction is 71% higher.


What can leaders do?

Encourage managers to engage employees by making it a performance criteria & rewarding engagement through incentive programs


What else can leaders do?

Think in terms of total rewards and not just financial rewards

Work environment or organization climate,

Work-life balance The nature of the job &

quality of the work, and Career opportunities


Anything else we can do?

Conduct EE Engagement Surveys.

Management must respond to input & suggestions with concrete actions and change.

Involve EE’s in these change efforts.


Anything else?

Demonstrate firm leadership and that you are capable of executing on strategic objectives.

Clear, transparent communication is key, especially in adverse conditions.

Questions? Comments?

Karen Loftus, MBA/SPHR

Engage to Retainwww.EngageToRetain.com

480-335-2367

[email protected] Complimentary 30 min consultation

Engage To Retain Azshrm Presentation 2010

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