Engagement February 2010

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Engagement byFluid February 2010

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Page 2Contents3-4 Introductionto Fluid5-6 Definition7-9 Dealing with poor performance10-11 Dealing with a newcomer’s poor performance12-13 Engagement and performance14-15 Give feedback, get back performance16-17 Five traps of performance measurement18-19 Benchmarking performance20-21 Conducting performance or performing conduct22-23 The corporate prisoner24-25 Fuelling the fire26-27 How can HR and Training raise performance?28-29 Case study-Mantech30-34 High performing organisations35-39 Finishers, maxperformers, elite performers and star teams40-42 Crystal ball time43-44 Conclusion and questions

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Page 3Introduction

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Page 4Introduction toFluidFluid Consulting Limited (Fluid) is a specialist human resources consultancy headed by Tim Holden MCIPD 10 years in banking10 years in Human Resources consultancyFluid trading since 2006The core services provided by Fluid are:Retention

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

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Page 5Definition

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Page 6WHAT ISENGAGEMENT, WHY IS IT IMPORTANT AND HOW DOES AN ENGAGED EMPLOYEE BEHAVE?

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Engagement is measurableand its drivers can be identified

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Different employee groupsand organisations will present their own particular challenges

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The two keyengagement drivers are job satisfaction/autonomy and feeling valued/involved

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Reward may causedisengagement but not engagement

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Long-serving employees typicallyhave low engagementDefinition

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Page 7Benefits

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Page 8Profit-related pay

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Sabbaticals

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Home working

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Flexible benefits

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Duvet days

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Gifted daysBenefits

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Page 9Working inharmony

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Page 10Do youremployees know who they work for?

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Communicate well andearly

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Work hard toget your message across

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Induct employees properly

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Don’t stop afterthe induction

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Appoint a mentor

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Avoid heroes

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Treat employees asa separate audienceWorking in harmony 1 of 3

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Page 11INFORMING KEYPEOPLE

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Organisation strategy andbusiness goal

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Products and services

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Company interaction

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Values and ethos

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Performance expectationsWorking inharmony 2 of 3

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Page 12TOP TIPS

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Adopt a marketingmindset

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Ensure information presentedto employees is credible

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Individuals need opportunitiesto step outside their comfort zones and speak to colleagues from other teams

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Encourage dialogue andforward planning between managers

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Capitalise on newtechnologyWorking in harmony 3 of 3

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Page 13Engagement drivers

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Page 14BUSINESS AIDSTO UNDERSTAND ENGAGEMENT DRIVERS

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Realistic job previews

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Screening questionnaires

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Ability tests

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Personality and motivationquestionnaires

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Assessment exercises

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Exit questionnairesEngagement drivers

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Page 15Top andbottom of the league

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Page 16TOP 10SECTORS

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Animal welfare 67%

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Charity/voluntary 66%

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Architecture/art & design64%

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Business/professional services 61%

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Property 61%

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Archaeology 60%

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New and onlinemedia 60%

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Construction 57%

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Education 57%

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Arts and entertainment55%Top and bottom of the league 1 of 2

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Page 17BOTTOM 10SECTORS

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Retail 42%

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Distribution 42%

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Automotive 44%

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Wholesale trade 45%

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Government and civilservice 45%

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Manufacturing 46%

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Hospitality 46%

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Travel and tourism47%

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Transport and storage47%

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Cleaning and wasteservices 47%Top and bottom of the league 2 of 2

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Page 18Real-life examples

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Page 19FOLLOWING AMERGER IT WAS FELT A NEW CULTURE SHOULD BE BUILT ACROSS THE BUSINESSES AND REGIONS-co-operative, 7800 employees-WHAT IT DID

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Elected 140 individualsas representatives to ‘Colleague Councils’ for each trading or support group, giving employees at all levels involvement in the group’s business decisions since no more than a third of the posts on each council can be taken by management. Meetings take place each quarter and there is a biannual executive council chaired by the Chief Executive. The councils consider the most important issues for the workplace, focus on how they can implement changes and then communicate these actions and progress to colleagues after meetings. Training is provided and there is a ‘news and views’ newsletter which promotes communication of any decisions made. MidCounties Co-Operative 1 of 2

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Page 20FOLLOWING AMERGER IT WAS FELT A NEW CULTURE SHOULD BE BUILT ACROSS THE BUSINESSES AND REGIONS-co-operative, 7800 employees-BENEFITS AND ACHIEVEMENTS

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Carried out areview of carrier bag usage

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Launched a paperrecycling initiative

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Put up newcolleague noticeboards

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Reviewed bonus payments

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Held a reviewof support materials, such as benefits booklet

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Achieved 89% participationin annual colleague surveyMidCounties Co-Operative 2 of 2

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Page 21IN 2007EMPLOYEE ENGAGEMENT WAS ONLY 54%, WIH 18% OF THE WORKFORCE HAVING EXPERIENCED BULLYING & HARASSMENT-trade union, 800 employees-WHAT IT DID

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Developed a Dignityat Work charter

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Set up across-organisational working group including union representation

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Invited all employeesto comment on results of the discussions of 22 focus groups

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Launched Dignity atWork with a live webcast to all RCN officesRoyal College of Nursing 1 of 2

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Page 22IN 2007EMPLOYEE ENGAGEMENT WAS ONLY 54%, WIH 18% OF THE WORKFORCE HAVING EXPERIENCED BULLYING & HARASSMENT-trade union, 800 employees-BENEFITS AND ACHIEVEMENTS

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March 2009 showed74% of employees were now engaged

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77% think theRCN respects individual differences

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82% feel happyto work for the RCN (17% up on 2007)

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A reduction inabsenteeism and attritionRoyal College of Nursing 2 of 2

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Page 23IMPLEMENT ANEFFECTIVE ENGAGEMENT STRATEGY FOLLOWING A MERGER-travel business, 17000 employees-WHAT IT DID

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Asked for employeefeedback for a new vision, values and strategy

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Created an employeebrand ‘Be Social’

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Aligned HR processeswith the company vision

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Developed communication channelsto suit the company’s range of demographics and roles

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Launched a ‘Workin Partnership’ initiative to give employees a role in the decision-making processTUI Travel 1 of 2

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Page 24IMPLEMENT ANEFFECTIVE ENGAGEMENT STRATEGY FOLLOWING A MERGER-travel business, 17000 employees-BENEFITS & ACHIEVEMENTS

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15 months afterthe merger, 97% of the top 700 managers said they would work over and above what is expected of them

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Decisions made inthe ‘Work in Partnership’ forums meant that the deadlines for integration were achieved

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‘Be Special’ isnow more than a brand, and has come to represent the newly merged entity’s culture TUI Travel 2 of 2

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Page 25HIGHLY MOTIVATEDWORKFORCE, FOCUS ON USING ENTERTAINING EXPERIENCES

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Cut the numberof surveys from 14 to four

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Ran an employeemusic competition with a touring recording studio

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Published e-zines, posters,newsletters and a Chief Executive’s blog

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Ran an internalfootball tournament with a main prize of Cup Final tickets

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Developed and introducedtailored NVQs and apprenticeships

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Held environmental roadshowsand encouraged participation in community projectsVodafone 1 of 2

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Page 26HIGHLY MOTIVATEDWORKFORCE, FOCUS ON USING ENTERTAINING EXPERIENCES

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Its employee engagementindex score is now 72.4/100-its highest yet

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Made the SundayTimes 20 Best Companies to Work For list for the second year running

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Made the FinancialTimes 50 Best Places to Work list in first year of entering

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80% of customer-facingstaff have access to professional qualifications, and its 92% NVQ pass rate is one of the highest in the UK Vodafone 2 of 2

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Page 27Staying onside

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Page 28HOW TOKEEP THE WORKFORCE ONSIDE

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Show that youhave a plan

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Be open butbe realistic

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Do it inperson

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Involve your people

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Show your compassion

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Redefine success

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Offer recognition

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Keep on celebratingStayingonside

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Page 29Views onengagement

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Page 30Educational differencesabound

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Occupation dictates whatis important

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Women value relationshipsat work

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Age doesn’t justbring experience, but different engagement

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Ethnicity impacts careerprogression engagementViews on engagement

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Page 31Creating anengaging environment

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Page 32Focus oncreating a performance-led culture to deliver future organisational goals

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Define your employeevalue proposition

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Set your priorities,then focus on the key elements and deliver them to an outstanding level

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Create a coherentstory, not just a series of related initiativesCreating an engaging environment

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Page 33Communication

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Page 34COMMUNICATING THEENGAGEMENT STRATEGY

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Involve as manyof your HR team in the process as possible, so that the strategy becomes a shared story.

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Spend one-to-one timewith key senior managers to address their concerns and ensure they see the benefit to their part of the business.

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Share the strategydirectly with the wider management population-don’t assume they’ll read emails or that others will articulate your strategy clearly.

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Bring the strategyto life-focus on the benefits for each group and on the role that managers will play in delivering it.

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Ensure people haveplenty of time to ask questions.

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Keep revisiting themessage and highlight the benefits as they become apparent.Communication

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Page 35Return oninvestment

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Page 36MEASURE THEROI FROM ENGAGEMENT

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Use a combinationof business and HR metrics

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Evaluate all aspectsof the employee life cycle using a range of measurement sources

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Ensure you canaccess reliable date when you need it.Return on investment

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Page 37Engagement ina recession

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Page 38IMPROVING ENGAGEMENTIN AN ECONOMIC DOWNTURN

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Cheer up theoffice mood by throwing a staff party or night out, or provide free food at work

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Give constant praise,encouragement and recognition to employees

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Reassure staff aboutjob security where possible

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Encourage more flexibleworking (reducing hours reduces pay)

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Make sure seniormanagement come across as involved, positive and honest

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Communicate, even ifthere’s no new news, and enable employees to feed back concerns

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Ramp up employeetraining; make sure they are comfortable in their roles and know the job inside out Engagement in a recession

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Page 39Management behaviours

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Page 40TOP BEHAVIOURSOF ENGAGING MANAGERS

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Communicates, makes clearwhat is expected

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Listens, values andinvolves team

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Supportive, backs team/youup

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Target focused

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Clear strategic vision

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Show active interestin others

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Good leadership skills

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RespectedManagement behaviours 1of 2

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Page 41TOP BEHAVIOURSOF DISENGAGING MANAGERS

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Lacks empathy/interest inpeople

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Fails to listenand communicate

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Self-centred

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Doesn’t motivate orinspire

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Blames others, doesn’ttake responsibility

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Aggressive

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Lacks awareness

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Doesn’t deliverManagement behaviours2 of 2

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Page 42Exit interviews

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Page 43Exit interviews1 of 2WANT TO STOP THEM LEAVING?

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In the firstinstance, make sure the person is in the right job-match talent and training to the role

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Provide feedback onperformance-regular communication is critical

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Be available toyour team

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Treat all employeeswith fairness and respect

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Help team membersto balance work and home life Page 44WANT TO GET LEAVERS BACK?

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Give exit interviewsto people who were productive or eligible to return

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Get to thebottom of why people leave-don’t accept soft soap

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Let some timepass after departure and then…

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Keep regular quarterlycontact with leavers to gauge their happiness-or otherwise

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Make sure ifthey know they have made a mistake you are there to advise-and would perhaps welcome them backExit interviews 2 of 2

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Page 45The MacLeodReview

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Page 46RECOMMENDATIONS

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National campaign onengagement

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Senior sponsor groupto raise awareness.

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Support for employers,including case studies and coaching advice made available from March 2010.

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Existing government resourcesincluding Acas, UKCES and Sector Skills Councils should be aligned to provide better support in developing skills needed for engagement.The MacLeod Review

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Page 47Case studies

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Page 48Case studiesA-L

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Page 49Case studiesM -Z

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Page 50Conclusion &Questions

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Page 51ConclusionSummaryQuestions

Engagement February 2010

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