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July 2, 2013

Employee Engagement Survey: Executive Report – ExCo Results for Company XYZ

© 2013 Hay Group. All rights reserved.

www.haygroup.com


Management Summary Subject

Results Employee Engagement Survey (EES) 2013

Goal

 Sharing new EES approach and results.  Creating awareness of the importance of employee engagement.  Deciding on key themes, setting goals, action planning and translating from NL level to operational level.

Why

 Results EES are available.  Employee engagement of critical importance for business results.  Engagement scores 2013 are lower than 2011.

What

 New EES questionnaire focuses more on day to day practice of employees & Company XYZ strategy.

 EES scores show:

 that employees are critical about Company XYZ’s strategy & leadership and experience hindering in their jobs;

 a high satisfaction with their own managers, teams and job autonomy.  Company XYZ’s situation demand a different and really effective approach:

 Action planning in the past has proven not to have been effective (as outcome indicates).  Real commitment of (top level) management and employees is of utmost importance.  Fully aligned communication of NL strategy, segment strategies and departmental operations. Discussed with

MT HR

This year’s survey provides representative scores based on overall response rate of 69%1 EP only

    

With the new approach and questionnaire Company XYZ decided for voluntary participation (intrinsic motivation); this provides more reliable data. 4 weeks of surveying resulted in the 69% response rate, exceeding our desired threshold value of 60%. Employees do not feel much is done with last survey results (22% agree), possible reason for lower response. More focus on internal engagement instead of external benchmarking. Survey answers remained equal over time; we would not expect the outcomes to change substantially with a higher response rate. Response Rates (EP only)

Company XYZ NL

business line 1

business line 2

business line 3

business line 4

business line 5

business line 6

segment 1

69%

74%

70%

67%

70%

69%

48%

75%

1

Average response of companies in Hay Group database is 84% (range: 65% - 95%). Sample based on companies both international and within NL in banking, retail, pharmaceutical, consumer & telco 2/15 Employee Engagement Survey

www.haygroup.com


Engagement of critical importance for business results Company XYZ scores 2013 could hinder realizing the 2015 strategy comfort, high Company XYZ scores 2013 retention rate  Engagement scores 2013 lower than 2011  Company XYZ employees are very satisfied with their managers, their colleagues and their teams (outperforming other Dutch companies)  Company XYZ employees critical on Company XYZ’s overall strategic direction and decisions made by Board of Management (falling far behind from other Dutch companies) employees know what to do, but low recognition of strategy

Trending Engagement scores Company XYZ NL 2013 significantly lower than 2011 Three questions in particular indicate the level of engagement Year

Question

% neutral

% agree

2011

I feel proud to work for Company XYZ

13%

77%

2013

I am proud to be working for Company XYZ

22%

72%

2011

I am willing to work beyond what is required to help this company succeed

5%

92%

2013

I am happy to be able to do a little bit more to contribute to Company XYZ's success

10%

88%

2011

I have confidence in the decisions made by the Board of Management of Company XYZ

17%

69%

2013

I have confidence in the decisions that are taken by Company XYZ’s Board of Management

47%

30%

Regression analysis results in key driver themes that directly improve engagement

3/15 Employee Engagement Survey

www.haygroup.com


Highest and lowest scores Company XYZ by theme and by question Top 3 Theme

Company XYZ

Questions

Company XYZ

1. Team

91%

1. I enjoy being with my colleagues (Pleasure)

95%

2. Pleasure in work

88%

2. Within our team, we help each other (Team)

94%

3. Manager

77%

3. I know what is expected of me (Performance & Development)

91%

Bottom 3 Theme

Company XYZ

Questions

Company XYZ

1. Company XYZ Strategy & Leadership

41%

1. I enjoy being with my colleagues (Pleasure)

95%

2. How dynamic am I (Vitality)

56%

2. Within our team, we help each other (Team)

94%

3. My working environment

65%

3. I know what is expected of me (Performance & Development)

91%

Results per theme Company XYZNL including key drivers Regression analysis shows key driver themes that directly improve engagement for Company XYZ Company XYZ

N = 9771

88%

Pleasure in your work Putting trust in others and  being trusted

2

77%

15%

69%

Everything for the customer

3

Company XYZ's strategy and  leadership

10%

18%

56%

How dynamic am I?

14%

18%

65%

My working environment

17%

31%

41%

14%

38%

20%

91%

My Team

7%

77%

My Manager

16%

72%

Proud and enthusiastic 0%

10%

20% Favourable

30%

Neutral

50%

60%

70%

80%

3% 7%

21%

40%

3% 9%

16%

72%

Professional Skills

1

9%

7% 90%

100%

Unfavourable

Key drivers for engagement

4/15 Employee Engagement Survey

www.haygroup.com


Key drivers may vary per segment Strategy & Leadership, Everything for the customer, Vitality and Pleasure in work are constant factors Key drivers for engagement Segments Company XYZ

1 Strategy & Leadership

2 Everything for the customer

3 Vitality (“How dynamic am I”)

Business line 6

Strategy & Leadership

Everything for the customer

Vitality

Business line 5

Strategy & Leadership

Everything for the customer

Vitality

Business line 3

Strategy & Leadership

Everything for the customer

Pleasure in work

Business line 2

Strategy & Leadership

Everything for the customer

Pleasure in work

Business line 4

Strategy & Leadership

Vitality

Everything for the customer

Business line 1

Everything for the customer

Strategy & Leadership

Pleasure in work

Segment 1

Vitality

Strategy & Leadership

Pleasure in work

Segment 2

Strategy & Leadership

Everything for the customer

Vitality

Segment 3

Everything for the customer

Pleasure in work

Strategy & Leadership

Benchmarking: COMPANY XYZ’s results in perspective Indication of a big gap on key themes between Company XYZ and High Performing Organizations Company XYZ

High Performing Organizations

NL companies

Industry

Professional skills

72%

74%

69%

67%

My working environment

65%

68%

62%

60%

My manager

77%

72%

66%

65%

Proud & Enthusiastic

72%

80%

76%

72%

Benchmark by theme (benchmark applied where possible)

Company XYZ

High Performing

Within our team, we help each other

94%

80%

I am given sufficient authority to be able to do my work properly

87%

74%

My manager encourages cooperation

81%

66%

Company XYZ

High Performing

I have confidence in the decisions that are taken by Company XYZ’s Board of Management

30%

69%

Company XYZ strategy is in line with what Company XYZ needs at this time

45%

78%

I think that Company XYZ is one of the leaders in terms of CSR

49%

85%

Highest scores compared to benchmark

Lowest scores compared to benchmark

5/15 Employee Engagement Survey

www.haygroup.com


Segments compared Business line 2 and Business line 6 perform significantly higher and lower respectively + >5% deviation from Company XYZ = green - > 5% deviation from Company XYZ = red

Company XYZ

1

2

5

3

4

6

N (total # respondents)

9.771

733

1.119

1.425

2.280

2.729

1.485

Pleasure in your work

88%

90%

91%

85%

86%

89%

85%

Putting trust in others and being trusted

77%

80%

81%

75%

75%

77%

73%

Everything for the customer

69%

73%

76%

70%

69%

69%

64%

Professional Skills

72%

76%

76%

71%

69%

75%

65%

My working environment

65%

71%

73%

65%

61%

64%

62%

How dynamic am I?

56%

60%

62%

56%

52%

58%

49%

Company XYZ strategy and leadership

41%

45%

52%

37%

39%

45%

32%

My Team

91%

89%

92%

89%

90%

92%

89%

My Manager

77%

79%

81%

75%

74%

80%

73%

Proud and enthusiastic

72%

75%

85%

65%

73%

75%

59%

Where we can improve and where we score best Many employees are critical on Company XYZ’s strategic direction and feel hindered in their job

Company XYZ employees are happy with their managers and their teams and appreciate the autonomy they have in their jobs

A third of Company XYZ’s workforce (30%)* have confidence in the decisions made by the Board and 35%** have confidence in Company XYZ’s goal of becoming the best service provider Processes seem to hinder people in their work; almost half of the employees (49%)* experience obstacles in getting their work done and less than one third (32%)* thinks processes within their job are straightforward * lower than benchmark Dutch companies ** cannot be benchmarked

6/15 Employee Engagement Survey

 

The vast majority of Company XYZ has pleasure in work (84%)** and is very content with their own team (91%)** and manager (77%)** Almost all of Company XYZ’s workforce (91%)* knows what is expected from them People feel they can work out for themselves what is expected of them (78%)* and get the responsibility to do a good job (87%)* * higher than benchmark Dutch companies ** cannot be benchmarked

www.haygroup.com


Key themes and follow up Strategic Employee Engagement Approach What (key themes & goals)

How

1. The right translation of the NL strategy to any level with external (customer) focus with the sole purpose of achieving strategic goals so every employee knows how they can contribute.

One consistent and inspiring story on the content of our strategy (the ‘what’ and the ‘why’) by continuous story telling:  ExCo NL members ensure that the proper translation of Company XYZ’s strategy reaches their middle management and through them any other level of management and operations  They do that by creating a personal, authentic and safe atmosphere that evokes open dialogue (sub strategy meetings, management cafes, soapbox sessions, roadmap), as already started in the Strategy Meeting

2. Processes, systems and the way we work are clear and simple. Clear accountabilities on the right level.

 Simplicity as a target 2014 for ExCo NL members to be  

3. Working at Company XYZ has a positive impact on wellbeing and performance. Employees feel vital.

Who ExCo

Person A

translated into & aligned with segment themes & targets De-layering hierarchy and processes in order to simplify and accelerate execution Achieve quick wins, enlarge and create awareness for current programs, visible execution of simplification program with external focus, using WoW as an instrument

 Key theme CLA 2013 as mentioned by staff and unions  Important role for Performance Management, open

Person B

dialogue between manager and employee about impact of vitality on performance

7/15 Employee Engagement Survey

www.haygroup.com


Communication Top Down

ExCo NL July 2nd: sharing results, creating awareness of importance of employee engagement, deciding on key themes, setting goals, action planning, translating from NL to operations. July 8th: blogging: we are happy to see confirmation of your “green hearts” in the very high appreciation of your jobs, teams and managers (higher than NL companies); that gives Company XYZ a huge advantage in achieving our goals. On the other hand we have concerns when it comes to connection between our strategic goals and day to day operations, the complexity of our processes and the attention you experience from Company XYZ for keeping you dynamic in any stage of your work life. Three priorities and follow up. As from July 8th: Segment communication based on communication CEO; Cascading Segment MTs > Business line MTs > Teams: sharing the outcome, determining what actions to be taken en how to implement them. As from July 8th: Start execution Strategic Employee Engagement Approach.

Framed Feedback Loop (Bottom Up) “Based on the scores, what could you, your team and Company XYZ do in order to contribute to the goals set in Person A’s blog from July 8th?” September 15th: Wrap up by management in segment MTs to come to conclusions and actions on segment level and to be able to provide feedback on ExCo level to strengthen (execution of) Strategic Employee Engagement Approach. August 1st-September 15th: Employees can provide feedback on the outcome to their direct managers and discuss this in their teams.

As from August 1st: MO Portal results available to all employees and managers (own score, team score, segment score and Company XYZ score), employees are invited to provide feedback on team results based on the question above.

8/15 Employee Engagement Survey

www.haygroup.com


Strategic topics: Collaboration, Compliance & CSR Collaboration Company XYZ NL + Company XYZ Group (all) Collaboration Company XYZ

89%

8%

3%

Segment 1

89%

8%

3%

10%

14%

76%

Segment 2

6% 2%

92%

Segment 3 Segment 4

3%

8%

89%

5%0%

95%

Segment 5

7% 2%

91%

Business Line 2

3%

9%

88%

Business Line 1

Business Line 3

86%

11%

3%

Business Line 4

87%

9%

4%

0%

10%

20%

30%

40%

Favourable

2%

7%

91%

Business Line 6

4%

8%

88%

Business Line 5

50%

Neutral

60%

70%

80%

90%

100%

Unfavourable

Compliance Company XYZ NL + Company XYZ Group (all) Compliance

Business Line 4

68%

Business Line 5

67%

0%

10%

20% Favourable

30%

14%

18% 18%

15% 13%

17%

70%

Business Line 6

13%

20%

67%

Business Line 3

10%

16%

75%

Business Line 2

10%

16%

74%

Business Line 1

6%

16%

78%

Segment 5

9%

18%

72%

Segment 4

11%

20%

69%

Segment 3

14%

19%

68%

Segment 2

13%

18%

69%

Segment 1

13%

18%

69%

Company XYZ

40%

50%

Neutral

60%

70%

80%

90%

100%

Unfavourable

* E-plus: pilot (n=17) 9/15 Employee Engagement Survey

www.haygroup.com


Corporate Social Responsibility Company XYZ NL + Company XYZ Group (all) MVO Company XYZ

53%

31%

16%

Segment 1

53%

31%

16%

66%

Segment 2

29%

62%

Segment 3

46%

Segment 4 Segment 5

14% 26%

57%

16%

32%

51%

19%

30%

56%

Business Line 6 0%

10%

20% Favourable

13%

38%

49%

Business Line 5

14%

25%

46%

Business Line 4

30%

6%

29%

62%

Business Line 2 Business Line 3

9%

39% 69%

Business Line 1

6%

29%

19% 31%

40%

50%

Neutral

60%

70%

13% 80%

90%

100%

Unfavourable

* E-plus: pilot (n=17)

10/15 Employee Engagement Survey

www.haygroup.com


Questions Collaboration, Compliance and CSR Collaboration  Within our team, we help each other  We work together well and this helps achieve results  My manager encourages cooperation Compliance  I feel safe enough to dare to be critical  I know what is expected of me  I have sufficient resources to do my work properly  I do not feel that there are any obstacles to me getting my work done  I am given sufficient authority to be able to do my work properly  The processes in my work are straightforward  I have confidence in the decisions that are taken by Company XYZ’s Board of Management  Within our team, we help each other  Within my team, we speak to each other about meeting the agreements that have been made  My manager sets a good example

       

I feel safe enough to dare to be critical Company XYZ pays sufficient attention to keeping me dynamic Company XYZ offers me work that is appropriate for my stage in life I think that Company XYZ is one of the leaders in terms of corporate social responsibility I am confident that Company XYZ will be the best by 2015 I am proud to be working for Company XYZ I would recommend Company XYZ as an employer to my family and friends As a Company XYZ employee I am willing to participate as a volunteer on a yearly basis for the “Best Contact Fund”

11/15 Employee Engagement Survey

www.haygroup.com


Demographic analyses Small difference between EP and AP Company XYZ NL (incl. AP) Company XYZ 88% 89%

Pleasure in your work

77% 77%

Putting trust in others and  being trusted

69%

Everything for the customer

66% 72%

Professional Skills

68% 65% 63%

My working environment

56%

How dynamic am I?

51% 41% 42%

Company XYZ's strategy and  leadership

91% 91%

My Team

77% 77%

My Manager

72% 73%

Proud and enthusiastic 0%

10%

20%

30%

40%

50%

60%

EP (N = 9628)

70%

80%

90%

100%

AP (N = 1930)

*difference with 9.771 = ‘other’

Potentials more engaged than non-potentials Company XYZ 91% 88%

Pleasure in your work

87%

Putting trust in others and  being trusted

77% 72% 70%

Everything for the customer

80%

Professional Skills

73% 69% 65%

My working environment

69%

How dynamic am I?

57% 51%

Company XYZ's strategy and  leadership

43% 88% 91%

My Team

83%

My Manager

78% 80%

Proud and enthusiastic

74% 0%

10%

20%

30%

40%

50%

Potential (N = 267)

12/15 Employee Engagement Survey

60%

70%

80%

90%

100%

Non‐Potential (N = 7870)

www.haygroup.com


Management is more engaged than non-management Company XYZ 92%

Pleasure in your work

87% 85%

Putting trust in others and  being trusted

75% 77%

Everything for the customer

68% 80%

Professional Skills

71% 70%

My working environment

64% 71%

How dynamic am I?

54% 55%

Company XYZ's strategy and  leadership

39% 92% 90%

My Team

82%

My Manager

76% 84%

Proud and enthusiastic

70% 0%

10%

20%

30%

40%

50%

60%

Management (N = 1139)

70%

80%

90%

100%

Non‐management  (N = 8632)

Sales is more engaged than non-Sales Company XYZ 92%

Pleasure in your work

87% 81%

Putting trust in others and  being trusted

76% 72% 69%

Everything for the customer

76%

Professional Skills

71% 69%

My working environment

64% 63%

How dynamic am I?

55% 53%

Company XYZ's strategy and  leadership

40% 93% 90%

My Team

83%

My Manager

76% 84%

Proud and enthusiastic

70% 0%

10%

20%

30%

40%

50%

Sales (N = 1138)

13/15 Employee Engagement Survey

60%

70%

80%

90%

100%

Non‐sales (N = 8633)

www.haygroup.com


Job ABC slightly less engaged than others Company XYZ 85% 88%

Pleasure in your work

73%

Putting trust in others and  being trusted

77% 66%

Everything for the customer

70% 67%

Professional Skills

73% 59%

My working environment

66% 47%

How dynamic am I?

58% 38%

Company XYZ's strategy and  leadership

42% 91% 90%

My Team

72%

My Manager

78% 69%

Proud and enthusiastic

72% 0%

10%

20%

30%

40%

50%

60%

Call Center (N = 1750)

70%

80%

90%

100%

Non‐Call Center (N = 8021)

Male and female engagement differ per theme Company XYZ 87% 89%

Pleasure in your work

76% 77%

Putting trust in others and  being trusted

69% 70%

Everything for the customer

71% 73%

Professional Skills

64% 66%

My working environment

55%

How dynamic am I?

59% 40%

Company XYZ's strategy and  leadership

45% 91% 91%

My Team

77% 77%

My Manager

71% 74%

Proud and enthusiastic 0%

10%

20%

30%

40%

50%

Male (N = 7225)

14/15 Employee Engagement Survey

60%

70%

80%

90%

100%

Female (N = 2403)

www.haygroup.com


New Way of Working population slightly more engaged Company XYZ 88% 88%

Pleasure in your work

78% 77%

Putting trust in others and  being trusted

72% 69%

Everything for the customer

75% 72%

Professional Skills

68%

My working environment

63% 61%

How dynamic am I?

54% 45% 42%

Company XYZ's strategy and  leadership

90% 91%

My Team

79% 77%

My Manager

74% 74%

Proud and enthusiastic 0%

10%

20%

30%

40%

50%

60%

HNW ‐ Yes (N = 3677)

70%

80%

90%

100%

HNW ‐ No (N = 4466)

Full time employees more engaged than part time employees Company XYZ 88% 86%

Pleasure in your work

77% 75%

Putting trust in others and  being trusted

70% 68%

Everything for the customer

73%

Professional Skills

69% 65% 64%

My working environment

57%

How dynamic am I?

52% 42% 40%

Company XYZ's strategy and  leadership

91% 90%

My Team

78% 75%

My Manager

72% 70%

Proud and enthusiastic 0%

10%

20%

30%

40%

50%

Full time (N = 6966)

15/15 Employee Engagement Survey

60%

70%

80%

90%

100%

Part time (N = 2662)

www.haygroup.com


Anoniem employee engagement survey