Employee Engagement Presentation

Employee
Engagement
Don Barkman
The Business Center
Oak Ridge, TN
www.bizcenter.com
1

Objectives
 Acquaint you with:
 What employee engagement is.
 It’s relationship to business results.

 How it is practiced.

 How it is measured.

 Gain some personal insight about your
organization’s engagement practices and level.

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Agenda
 Definition of engagement.
 Introduction and history.
 Simple statistics.
 Correlation and causality.
 Engagement spectrum.
 Levels of engagement described.
 Engagement survey.
 8 Engagement factors.
 Approaches to engagement & common practices.
 Surveys.
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What is Engagement?
 If you had to write a definition of engagement in
25 words or less, what would it be?

 Write it now.
 You have 100 seconds.
 Share it with the person to your right.

 You are now engaged with our topic!
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Definitions
There Are Many
 “The harnessing of organization members’ selves to
their work roles; in engagement, people employ and
express themselves physically, cognitively, and
emotionally during role performances.” Kahn 1990

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Definitions
There Are Many
 “Consistently doing what is required to make the
organization a success.” Barkman 2012

It’s not just more effort, it’s better effort.

It’s willingly doing the right thing well.

 It’s about being engaged with your work and the total
success of the enterprise.

The Business Center
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History
 “Engagement” by any other name ...
is “motivation.”
 1950’s
 Emery and Trist – Socio-technical systems. 1950
 McClelland – Achievement motivation. 1953
 Maslow – Need hierarchy – 5 levels. 1954
 1960’s
 McGregor – Theory X and Theory Y. 1960
 Hertzberg – Motivators and dissatisfiers. 1968
 Hackman and Oldham – Work redesign. 1980
 Pink – Purpose, mastery, autonomy. 2009

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How about Us?
 What percentage of your workforce is:
 Engaged – employees feel a strong connection to the
organization and work with passion to innovate and improve.
 Not Engaged – employees do the work expected of them;
they put in time, but do not put in extra effort; some are
described as “checked out.”
 Actively Disengaged – employees aren’t just unhappy, they
are spreading their unhappiness to coworkers and
undermining their work.
 Take 15 seconds to list your three percentages.

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Engagement Results
 Gallup Statistics – Engagement and good results are
correlated.

Engaged 33% 67%
Not
49% 26%
Engaged
Actively
18% 7%
Disengaged
Average World Class

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Do Statistics Lie?
 Of course not! But ...
 Firms who survey engagement and provide consulting
service to improve engagement have an incentive to
suggest engagement levels are suboptimal.
 One way to do that is to define “normal” effort as
being “not engaged” while only superior effort qualifies
for “engaged.”
“A ‘fully engaged’ employee, by our definition, is one who can answer
all the questions in the Gallup Q 12 with a strong affirmative.”

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Engagement = Business Results ?
a Correlation Quiz
 Fact: Higher engagement levels correlate with
better business results.
 Conclusion: (Pick one)
 A. More engaged employees produce better results.
 B. A better performing business causes employees
to become more engaged with it.
 C. Cause and effect are not proven by this
correlation.
Birth rates in Europe are directly correlated with the stork population.
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Does Engagement Matter?
 Engagement can influence personal behavior.
 Business results are influenced by personal
behavior and other factors. Technology
Competition
Personal Behavior Economy
Absenteeism
Level
Turnover Business Results
of Safety Market Share
Engagement Customer Treatment
Profitability
Quality / Output
ROI, ROA, ROE
Creativity /Innovation
Stock Price
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Agenda
 Definition of engagement.
 Introduction and history.
 Simple statistics.
 Correlation and causality.
 Engagement spectrum.
 Levels of engagement described.
 Engagement survey.
 Surveys.
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Engagement and Pace
 Everyone has a work pace.
 Intense
 Normal
 Slow
 Example: Run / jog / walk / amble / rest.
 The majority operate at normal and step up to intense
when required. A few are always intense or slow.
 It is fatiguing to work intensely all the time, but normal
is sustainable indefinitely.

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Employees’ Inclination to Engage
 Newton’s laws of Engagement:
 Employees are naturally more, or less engaged
unless acted upon by the organization.
 Natural inclinations to engagement:
 Self-engaging – in their DNA.
 Engageable – motivated by what surrounds them.

 Resistant – disinclined to respond, regardless.

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Engagement Spectrum
 Four degrees of engagement along a spectrum.
 Zone of discretionary effort.
 Firing line.
Highly Engaged

Normally Engaged
Zone of
Discretionary
Marginally Engaged Effort

Disengaged Firing Line

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Inclinations Along the Spectrum

Engagement Spectrum
3 Inclinations
Highly Engaged
Self-Engaging

Engageable Normally Engaged
Zone of
Discretionary
Marginally Engaged Effort
Resistant
Disengaged Firing Line

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Highly Engaged Gems
Why isn’t everyone like this?

 Work extra hours or days. “Whatever it takes!”
 Make suggestions for improvements.
 Reach out to willingly help others.
 Go beyond the rules to help customers.
 Solve problems instead of passing them on.
 Stick up for the organization.
 Promote harmony.
 Take a leadership role in activities.
 Seek opportunities for growth and performance.

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Normally Engaged Workers
The Dependables

 Come to work every day. “A fair day’s work
for a fair day’s pay”
 Come to work on time.
 Stay all day.
 Remain at the job.
 Refrain from distractions: internet, socializing.
 Refrain from personal business, calls, texts.
 Finish tasks correctly and on time.
 Treat others with respect.
 Follow the rules.

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The Marginally Engaged & the Disengaged
The Living Dead in the Workplace

 Miss work or cut hours short. “Loafing or leaving.”
 Find ways to avoid work. Give work to others.
 Say “It’s not my job.”
 Hide behind the rules.
 Bad mouth the organization and others.
 Use work time for personal items.
 Produce marginal quality or output of work.
 Do just enough not to get fired.
 Look for another job.
 Sabotage work processes.
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An Engagement Survey
 Compared to how well you could perform at work,
how much are you really exerting yourself?
5 = Using greater than 85% of my potential
4 = 70 – 84%
3 = 55 – 69 %
2 = 40 - 54%
1 = less than 40% of my potential

Poll : Show of hands.

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Agenda
 Introduction and history.
 Simple statistics.
 Engagement spectrum.
 Levels of engagement described.
 Engagement survey.
 Surveys.
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Engagement Factors
 Different people respond to different sources of
engagement.
 Must manage many factors to produce a total
environment of engagement.
 Managing for engagement can also create an
attractive and satisfying workplace.
 All 8 factors may not have equal effects on
business results.
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Engagement Factors
 Let’s investigate 8 factors that engage the workforce.
1. Circumstances.
2. Company image and success
3. Physical work environment.
4. Reward and recognition practices.
5. Relationships with others.
6. The social-intellectual work environment.
7. Nature of the work.
8. Self.

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Engagement Factors
 1. Circumstances
 The chance to be a leading organization.
 The need to survive.
 Even a lazy crew will save a sinking ship.
 2. Company Image and Success.
 Working for a winning organization that is respected
in the industry and community fosters engagement.
 “Staying on top” or “getting on top” brings out
better effort.
 Avis: “We try harder!”
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Engagement Factors
 3. Physical Work Environment.
 Reflects the organization’s concern for its people.
 A basic “quid pro quo.”
 4. Reward and Recognition Practices
 Size / Frequency / Source / Attainability /
Predictability / Relationship to effort.
 Annual “merit” increase vs. monthly sales bonus.

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Engagement Factors
 5. Relationships with Others.
 Most people are social animals, but not all are.
 A culture where coworkers expect engagement.

 Camaraderie with coworkers – team spirit.

 Supervisor relationships are crucial.

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Engagement Factors
 6. Social-intellectual Work Environment.
 Vision / mission / goals / measures / feedback.
 Focus on achievement and improvement in the culture.
 Introduction and indoctrination.
 Opportunity for growth + training and development.
 Information sharing and seeking.
 Personal contact with supervisor and top leaders.
 Participation in shaping work and org. practices.
 Surveys / focus groups / feedback / follow-thru.
 Individual attention and fairness.
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Engagement Factors
 7. Nature of the Work.
 Purpose, mastery, autonomy. Pink
 Task itself:
 Significance.
 Completeness.
 Challenge and variety.
 Autonomy – personal freedom to act.
 Feedback from work itself (vs. others).

Engagement with work is the primary focus.

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Engagement Factors
 8. Self
 Personal motivation to achieve regardless
of task or surroundings.
 McClelland’s “achievement motivation.”

 DNA that only some people have.

 Is there a disengagement gene?

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Engagement Factors
Opportunities to minimize disengagement and maximize engagement.

1. Circumstances. 5. Relationships with
2. Company image and others.
success. 6. The social-intellectual
3. Physical work work environment.
environment. 7. Nature of the work.
4. Reward and recognition 8. Self.
practices.
Summary

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Engagement R Us?
 What does your organization do to promote
engagement?
 Share with the person in front / behind you.
 Take two minutes.

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Systematic Approaches to Engagement

 Comp and benefit plans – gainsharing and profit
sharing, bonuses, etc. ~ contingent plans.
 Attitude / satisfaction / engagement surveys.
 Employee involvement:
 Participative management.
 Quality circles.

 Kaizen teams.

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Systemic Approaches to Engagement

 Work design – job enrichment.
 Socio-technical systems design – people and the
process as one total system.
 Self-directed work teams.
 Open-book management.
 Scanlon plans.

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Common Practices
 Hiring the right people & orienting them.
 Focus on running the organization successfully.
 Vision / goals / measures / feedback.
 Continuous challenge to improve.

 Demonstrated concern for engagement.
 Continuous cycle of surveys and follow-thru.
 Face-to-face information sharing and seeking
from top leadership with rank and file.
 Personal growth opportunities – T&D.
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Surveys
 Aon Hewitt
 5,700 employers = 5,000,000 employees
 Hay Group
 1,600 employers = 5,000,000 employees
 Gallup
 17 yrs. = 17,000,000 employees
 Q12 survey is the biggest.
 12 questions
 5 point scale: 1 = Strongly Disagree / Extremely Dissatisfied
5 = Strongly Agree / Extremely Satisfied

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Poll
 Who does an “engagement” or employee survey
at least every two years?
 Could be one large survey.
 Could be several mini surveys.

 Raise your hand.

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Gallup’s Q12 Survey
 12 questions.
 Chosen because responses to them positively
correlate to improved personal behaviors and
therefore business results.
 Answers to each question use a 5 point scale:
 5 = Strongly Agree / Extremely Satisfied
 1= Strongly Disagreed / Extremely Dissatisfied

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Gallup’s Q12 Survey Questions
 Does the mission/purpose of my company
make me feel my job is important?
 Do I know what is expected of me at work?
 Do I have the materials and equipment I need to
do my work right?
 At work, do I have the opportunity to do what I
do best everyday?

The Gallup Q12 questions are copyrighted by Gallup Inc. for its use.
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Gallup Q12 Questions
 Does my supervisor, or someone at work, seem
to care about me as a person?
 In the last 7 days, have I received recognition or
praise for doing good work?
 Is there someone at work who encourages my
development?
 In the last 6 months, has someone at work
talked to me about my progress?
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Gallup Q12 Questions
 This last year, have I had opportunities at work
to learn and grow?
 At work, do my opinions seem to count?
 Are my coworkers committed to doing quality
work?
 Do I have a best friend at work?

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Gallup Q12 and Engagement
 A "fully engaged" employee, by our definition, is one who can answer all the
questions in the Gallup Q 12 with a strong affirmative.
 These question items were identified through extensive research that
correlates employee attitudes to five outcome measures:
 Employee retention
 Productivity
 Customer satisfaction/engagement
 Safety
 Profitability.
 While The Path only illustrates the link between engaged employees and
customer engagement, there are often very direct links between an increase in
the number of engaged employees and profit, either indirectly through an
increase in productivity, or directly through major decreases in employee
turnover.
Source: Gallup Inc.
http://www.gallup.com/consulting/1531/Gallup-Path-Business-Performance.aspx

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Correlation Exists
 Comparing the top 25% of engaged workgroups to the bottom
25% shows dramatic differences in: *
 Productivity.
 Profitability.
 Safety incidents.
 Absenteeism.
 Gallup has proven that engaged organizations have 3.9 times the
earnings per share (EPS) growth rate compared to organizations
with lower engagement in the same industry.

* Source: Gallup Inc.
http://www.gallup.com/consulting/1531/Gallup-Path-Business-Performance.aspx

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Statistics
 Gallup – 2005
 Engaged employees = 28%
 Not engaged = 54%
 Actively disengaged = 17%
 Aon Hewitt – Nov. 2011
 “…the workforce is by and large indifferent to organizational success or
failure.”
 SHRM – Nov. 2011
 “…employees are moderately engaged at work -- 3.6 / 5.0.”
 Hay Group – 2012
 66% of workers feel engaged.

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Agenda
 History.
 Statistics.
 Engagement spectrum.
 6 Engagement factors.
 Approaches to engagement & common practices.
 Surveys.
 Summary

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Summary
 The E4 Model
 Envision: create inspiration and accountability by
using a vision, missions, goals, measures, and
reporting mechanisms that link individuals to the
total organization.
 Empower: provide the means for success through
 Technical, social, business skills training.
 Developmental experiences and coaching.

 Equipment, systems, information, and feedback.

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Summary
 E4 Model
 Engage: encourage responsible contribution in
areas of expertise through participative structures,
behaviors, info sharing, consultation, and autonomy.
 Equilibrate: balance efforts and rewards to
equitably meet the needs of all stakeholders –
customers, investors, employees, suppliers,
community – and protect the environment.
 More details by emailing tbc@bizcenter.com.
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Summary
 It starts with whom you hire.
 It is driven by leaders who use the 8 factors to
create an engaging culture.
 Training and development is one cog on a large
wheel of engaging elements.
 There is a correlation between engagement
levels and business results, and...
success requires managing for both.
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Conclusion
Thank you very much for your engagement!

Have an engaging time at work!

Don Barkman
The Business Center
Oak Ridge, TN
865-483-5850
www.bizcenter.com

The Business Center

Copyright Notice
This material is copyrighted by:

Donald F. Barkman
The Business Center
120 Westview Lane
Oak Ridge, TN 37830
865-483-5850

Copyright © 2012
All Rights Reserved.
No part of this material may be stored, transmitted, reproduced, or presented
without the express permission of The Business Center.

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Employee Engagement Presentation

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