Engagement June 2010

Engagement

by Fluid

June 2010

Introduction

Contents3-4 Introduction to Fluid5-6 Maximising engagement7-8 Unleashing the concealed

power9-10 Engagement and the

community11-14 Linking engagement with

business performance15-18 Employee surveys19-20 Succession planning21-22 Exercise A23-41 Real-life examples42-43 Measuring engagement at

New Balance44-45 The MacLeod Review46-47 Exercise B48-49 Case studies50-51 Conclusion and questions

Introduction to Fluid• Fluid Consulting Limited (Fluid) is a specialist

human resources consultancy headed by Tim Holden MCIPD

• 10 years in banking• 10 years in Human Resources consultancy• Fluid trading since 2006• The core services provided by Fluid are:

- Retention- Selection- Attraction- Remuneration & Reward - Outplacement- Training & HR consultancy

Maximising engagement

Maximising engagement• Let everyone known what is expected of them• Give people the tools for the job• Give people opportunities to learn and shine at

what they are good at• Be generous but specific in your praise• Listen to your employees• Help them believe in the purpose or product of

the organisation• Encourage friendships at work

Unleash the concealed power

Unleash the concealed power• CATERPILLAR TO BUTTERFLY-UNLEASHING THE

CONCEALED POWER OF ITS STRATEGY• Step one-develop a unique strategy• Step two-support strategy with the appropriate

environment• Step three-sell your strategy to win emotional

commitment • Step four-keep strategy flexible

Engagement and the community

Engagement and the community• KEYS TO COMMUNITY• The global group• The locally loyal• The matrixed middle• HOW MUCH TO INVEST IN COMMUNITY?• What is the purpose of my community?• What business goals do I expect it to help with

me with?• How much community can I afford?

Linking engagement with business performance

Linking engagement with business performance 1 of 3

• B&Q• Ensure your day to day HR function works• Gain the support of senior executives and

the board• Ensure there is an honesty in your

business culture


• DSG INTERNATIONAL• Keep it real• Know your motive• Don’t run before you can walk


• AVIVA• Analyse your date with care• Consider increasing the number of surveys

you carry out• Never carry out a survey before you are

about to give bad news

Employee surveys

Employee surveys 1 of 3• KEY ELEMENTS• Project analysis• Communication• Questionnaire• Analysis levels• Fieldwork• Response• Data processing, analysis and interpretation• Reporting and action planning

Employee surveys 2 of 3• ACHIEVING A SUCCESSFUL SURVEY• Senior management must be committed to the

survey• Involve employee representatives at all stages• Tell people about it by publicising the survey

through all available media• Keep it real by addressing issues of importance to

employees• Give employees prompt and relevant feedback on

the results• Act on the results

Employee surveys 3 of 3

• If you ask a question, show you value the response

• Managers’ reactions to a survey can be as telling as the results of the survey itself

• Don’t try to use the results in isolation-they are a starting point for conversations

• Don’t assume poor response rates or poor results are a departmental problem. Isolating individuals’ results will show the real hot spots that need action.

• Don’t let people explain away the results-if they do, they miss the opportunity to improve

Succession planning

Succession planning• CREATING A LAYER OF COMMUNICATIVE AND

ENGAGING MANAGERS• Start at the top, as managers will adopt the

behaviours of their leaders• Make sure your managers understand the

purpose and plan of the organisation• Involve them in planning the detail• Include communication in managers’ job

descriptions• Develop communication guidelines• Provide communication training• Reward effective communication

Exercise A

Real-life examples

Abellio 1 of 2• IMPLEMENTED A CONSULTATION PROGRAMME

TO LOOK AT BUSINESS PLANNING AND HIGH STAFF TURNOVER-bus operator, 1700 employees-WHAT IT DID

• Defined its aims and objectives as a business• Developed an employee engagement strategy• Appointed an HR Manager, part of the senior

team• Launched employee survey and award schemes• Introduced one-to-one reviews

Abellio 2 of 2• IMPLEMENTED A CONSULTATION PROGRAMME TO

LOOK AT BUSINESS PLANNING AND HIGH STAFF TURNOVER-bus operator, 1700 employees-BENEFITS & ACHIEVEMENTS

• Attrition rates fell from 42% in 2005 to 15% in 2008

• All training is competency based and aligned to individual and organisational needs

• Absence levels have fallen from 13% to 6%• Good relationships with trade unions• Achieved Investors in People status in November

2008

Birmingham City Council 1 of 2• IN 2006 ONLY 56% OF EMPLOYEES WERE

MOTIVATED IN THEIR JOBS, AND THE CHALLENGE WAS TO ENGAGE EVERY EMPLOYEE-council, 60000 employees-WHAT IT DID

• Brought in consultants to identify attitudes to be changed

• Identified core values of belief, excellence, success and trust (BEST)

• Involved the unions• Get senior buy-in from the outset

Birmingham City Council 2 of 2• IN 2006 ONLY 56% OF EMPLOYEES WERE

MOTIVATED IN THEIR JOBS, AND THE CHALLENGE WAS TO ENGAGE EVERY EMPLOYEE-council, 60000 employees-BENEFITS AND ACHIEVEMENTS

• 83% of employees motivated in their job(2008)• 76% of employees highly and frequently engaged• More than 6000 service improvements

implemented, all generated by employees• £17M in increased productivity• Changed the BEST programme from a fixed-

timescale project to be part of business as usual

Broadway 1 of 2• IMPROVE PERFORMANCE IN BEST COMPANIES

SURVEY-charity, 170 employees-WHAT IT DID• Structured briefings led to suggestions on how

the organisation could perform better• Senior management came up with a response

and action plan based on these ideas and communicated the results

• Through a progressive and well thought through HR strategy the charity has created a climate of engagement where 91% of the workforce believe they work with colleagues who are committed and professional

Broadway 2 of 2• IMPROVE PERFORMANCE IN BEST COMPANIES SURVEY-

charity, 170 employees-BENEFITS AND ACHIEVEMENTS• 92% of the workforce believe Broadway makes a positive

difference to people’s lives• 95% of external appointments are filled after the first

attempt• Average length of stay for employees has increased from

2.2 years to four years• Sickness absence rate of 2% compared to the CIPD

average for the voluntary sector of 4%• 71% of managerial appointments made internally• Broadway receives more requests for job packs and has

the highest volume of applications compared to any other charity within its customer base

Everest Home Improvements 1 of 2

• A NEW APPROACH TO UNDERSTANDING ENGAGEMENT WAS INTRODUCED BY THE HR & COMMUNICATIONS TEAM-construction, 980 employees-WHAT IT DID

• Identified 32 champions• Organised a workshop for the champions, asking them

to spell out what they saw as a great place to work• Had the champions help design an ongoing

programme of workshops, the results of which were fed back to other staff

• Asked the champions to help develop a cost-cutting solution, resulting in a request for people to volunteer to take pay cust-84% of workers volunteered

Everest Home Improvements 2 of 2

• A NEW APPROACH TO UNDERSTANDING ENGAGEMENT WAS INTRODUCED BY THE HR & COMMUNICATIONS TEAM-construction, 980 employees-BENEFITS AND ACHIEVEMENTS

• £1.2M saved through salary reduction• Nearly £4M reduction in operating costs since the

programme began• Additional activities were launched to support the

programme, including the Everest Value Awards

FMG Support 1 of 2• RAPID EXPANSION BETWEEN 2004 & 2008 CO-

INCIDED WITH HIGH ATTRITION AND ABSENCE PLUS LOW MORALE-fleet management, 440 employees-WHAT IT DID

• Implemented a reward framework linking pay with performance

• Improved operational training and introduced behavioural development programmes

• Introduced leadership and management development programmes

• Developed an internal communication platform

FMG Support 2 of 2

• RAPID EXPANSION BETWEEN 2004 & 2008 CO-INCIDED WITH HIGH ATTRITION AND ABSENCE PLUS LOW MORALE-fleet management, 440 employees-BENEFITS AND ACHIEVEMENTS

• Attrition has fallen from 27% in 2006-7 to 25% in 2007-8

• The 2009 employee survey found that 94% of people are proud to work for FMG Support

• 91% feel there is a real commitment to the company, and 90% still want to be working there in 12 months’ time.

HM Prison Morton Hall 1 of 2• IN 2008 SICKNESS ABSENCE AVERAGED 10.9 DAYS

AND ONLY 65% OF THE WORKFORCE COMPLETED THE ANNUAL SURVEY-prison, 226 employees-WHAT IT DID

• Implemented sick meetings for employees returning from sickness absence

• Arranged for the HR business partner and the performance management team to manage employee sickness

• Introduced one-to-one wellbeing clinics with an occupational health adviser

• Set up an employee survey team• Arranged employee consultation events

HM Prison Morton Hall 2 of 2

• IN 2008 SICKNESS ABSENCE AVERAGED 10.9 DAYS AND ONLY 65% OF THE WORKFORCE COMPLETED THE ANNUAL SURVEY-prison, 226 employees-BENEFITS AND ACHIEVEMENTS

• By the year-end 2008-9 sickness absence had fallen to 5.2 days, the lowest of any UK prison

• Attrition for the same year fell to 10• 103 employees did not take sick leave• 78% of employees completed the survey• 89% of employees were clear about what was

expected of them in their job

Heart of England NHS Foundation Trust 1 of 2

• MERGER RESULTED IN THE NEED FOR A ‘ONE TRUST’ CULTURE-NHS, 10000 employees-WHAT IT DID

• Series of events hosted by the Chief Executive, bringing together more than 3000 employees

• On-site Q&A sessions hosted by the Chief Executive, plus a FAQ newsletter and regular email communication

• Designing and implementing the first local employee survey in the NHS

• Creating a dedicated jobs unit to support employees during the restructuring

Heart of England NHS Foundation Trust 2 of 2

• MERGER RESULTED IN THE NEED FOR A ‘ONE TRUST’ CULTURE-NHS, 10000 employees-BENEFITS AND ACHIEVEMENTS

• The trust saved £750000 on redundancy costs making only six redundancies rather than an expected 50

• Achieved £3M in efficiencies by reducing back-office posts

• Engaged and developed leaders to effectively manage the human aspects of large-scale organisational change

• Collected valuable intelligence on employee perceptions of the trust-75% of the workforce would recommend the hospital for treatment

• The Trust was awarded ‘Top Employer’ status by The Guardian

Iceland Foods 1 of 2• IMPROVE ENGAGEMENT LEVELS TO ENCOURAGE

RECOVERY OF THE BUSINESS-retail, 16000 employees-WHAT IT DID

• Improved annual employee survey to monitor levels of engagement rather than satisfaction, allowing an independent company to manage it

• Use of 360 degree feedback to ensure its leaders demonstrate the right behaviours and all employees must work towards key performance indicators

• In addition there is a forum for retail employees where representatives from each store share concerns, with the information passed on to regional and national meetings where the Board of Directors attend to listen to views/ideas

Iceland Foods2 of 2• IMPROVE ENGAGEMENT LEVELS TO ENCOURAGE

RECOVERY OF THE BUSINESS-retail, 16000 employees-BENEFITS AND ACHIEVEMENTS

• Employee survey response increased over three years from 74% to 91%

• Focus groups were held to address areas of poor engagement

• Latest survey gave an engagement score of 76% with 58% classed as highly engaged

• Employees agree positively with statements such as ‘I feel a strong sense of family’, ‘My manager motivates me to give my best every day’ and ‘I feel proud to work for this organisation’

• Reduction in absence and staff turnover• Accreditation in Best Companies to Work For

Intercontinental Hotels 1 of 2• DEVELOP VALUES TO DRIVE A DISTINCTIVE AND

DIFFERENT STYLE OF SERVICE-hotels, 130000 employees-WHAT IT DID

• Ran 70 workshops in 20 countries with more than 1000 people in just one month. This led to the creation of five core values called ‘Winning Ways’ which were launched at a leadership conference by the company’s CEO. The values were then communicated to the whole company using workshops designed to bring the values to life. Other initiatives included: a ‘jigsaw challenge’ where hotels could submit examples of Winning Ways behaviour a ‘chase the extraordinary’ tour of IHG hotels in the US, which invited more than 10000 people to pledge to live the Winning Ways

Intercontinental Hotels 2 of 2• DEVELOP VALUES TO DRIVE A DISTINCTIVE AND

DIFFERENT STYLE OF SERVICE-hotels, 130000 employees-BENEFITS AND ACHIEVEMENTS

• Employee engagement jumped by 8.5% over six months

• Engagement among managers rose 6% over the same period

• 80% of employees will put in extra effort based on the impact of the new values set

• 80% said they see people around them living the Winning Ways, and 83% said they see their manager living them

• 82% would recommend it to others as a good place to work

Measuring engagement at New Balance

Measuring engagement at New Balance

• Each point is marked out of ten so that the overall index provides an engagement rating:

• 100-120 Outstanding• 80-100 You are doing OK• 60-80 Halfway there• 40-60 Challenging times• 0-40 Dangerous times

The MacLeod Review

The MacLeod Review

• RECOMMENDATIONS• National campaign on engagement• Senior sponsor group to raise awareness. • Support for employers, including case studies

and coaching advice made available from March 2010.

• Existing government resources including Acas, UKCES and Sector Skills Councils should be aligned to provide better support in developing skills needed for engagement.

Exercise B

Case studies

Conclusion & Questions

Conclusion

• Summary• Questions

Engagement June 2010

Business

Transcript of Engagement June 2010