Employee Engagement

EMPLOYEE ENGAGEMENT Mamta Joshi 07EP-024

Flow of Presentation 

 

  

Introduction  Identify Sectoral Problem  Research Problem formulation Research Statement Research Design  Methodology  Exploratory Research  Primary Research  Study Sample  Data Collection Procedure  Data Analysis Literature Survey Key Findings Conclusions and Recommendations

Introduction 

Your People- The key to attain DSCA



Attracting and retaining talented employees is hottest strategic issue



Issue gains more importance as the current environment provides employees with a vast array of employment choices and higher than usual pay levels



Identifying factors which influence an employee’s decision to stay and commit to the company will be a priority human resource focus that has direct bottom line impact



Engagement is not just about staying with the organization but whether employees are working to their optimum potential and whether they feel motivated and inspired in their current positions

Problem Identification at Kellogg’s 

Fast Growing production demands, to be met within the existing framework of equipment and personnel



Make shift HR set up



Formation of union



Employees not actively supporting union



Increase in attrition rate

Unanswered questions…  



    

Are the Union members just a bunch of disengaged employees? Given the fact that other crew members have not supported the union at all, is the level of employee engagement high amongst Kellogg’s employees? What is the present level of engagement and what are the key drivers of Employee engagement? Does engagement level differs with the level and with the Tenure with the company? What all activities management can undertake to further enhance Employee Engagement? How the attrition rate is related to Employee Engagement variables? Do Engaged Employees contribute towards the increased Productivity? Are the Employees working to their full potential? Are they motivated enough to remain engaged? Are they satisfied with their job and company?

The Research Statement     



Literature Survey

Employee Engagement 

Physical, cognitive and emotional involvement in a role



Related construct to engagement in OB is Notion of Flow. Flow is a ‘holistic sensation’ that, people feel when they act with total involvement. Flow is the state in which there is little distinction between the self and environment



Job satisfaction which is more on cognitive side whereas engagement is built on emotions at work place and how one is treated in the organization



Level of commitment and involvement an employee has towards their organization and its values. An engaged employee is aware of business context. Works with team to improve performance within the job for the benefit of the organization



The organization must nurture engagement, which requires a two-way relationship and thus different from Organizational Citizenship

Contd… 



Employee engagement is a barometer measuring the association of a person with the organization There will always be people who never give their best efforts no matter how hard HR and line managers try to engage them.

Aspects of Employee Engagement 

Employees and their own psychological makeup and experience



Employers and their ability to create conditions that promote engagement



Interaction between employees at all level



Thus it is organizations responsibility to create environment and culture that is conducive to this partnership and win-win equation

Advantages of Engaged Employees 

Engaged employees will stay with the company



Be your brand ambassadors



Perform better and are more motivated



Emotional connection with the company. This impacts their attitude towards the company’s clients, and thereby improves customer satisfaction and service levels



It builds passion, commitment and alignment with the organization’s strategies and goals



Increases employees’ trust in the organization, creates a sense of loyalty in a competitive environment and provides a high-energy working environment



Boosts business growth. There is a significant link between employee engagement and profitability ( Watson Research)

Factors leading to Engagement 

Career Development opportunities to develop their skills and realize their potential



Leadership



Clarity on core values of company



Respectful treatment of employees



Empowerment, involvement in decision making



Image- Perception about the quality of company’s products and willingness to endorse



Equal opportunities and fair treatment

Contd… 

Pay and Benefits



Health and safety



Job Satisfaction- Whether job matches career goals which makes work enjoyable



Open Communication



Friendliness culture and cooperation



The strongest driver is the feeling of being valued

Gall Up Q12 Based on hundreds of focus group and interviews with employees, Gallup Q. 12, identifies strong feelings of employee engagement 1. Do you know what is expected of you at work? 2. Do you have the materials and equipment you need to do your work right? 3. At work, do you have the opportunity to do what you do best every day? 4. In the last seven days, have you received recognition or praise for doing good work? 5. Does your supervisor, or someone at work, seems to care about you as a person? 6. Is there someone at work who encourages your development? 7. At work, do your opinions seem to count? 8. Does the mission/purpose of your company make you feel your job is important? 9. Are your associates (fellow employees) committed to doing quality work? 10.Do you have a best friend at work? 11.In the last six months, has someone appreciated your performance? 12.In the last year, have you had opportunities at work to learn and grow? 

Gall Up Research 

The Gallup study Q12 is based on positive Psychology and emotions.



Having a best friend at work or receiving recognition every week makes you feel cared for and proud respectively. If you want to keep recreating those positive emotions, then you keep coming back to work.



Borden – and Build theory is about evolutionary significance of positive emotions which are better observed over the long haul. Their effects accumulate and compound overtime and the adaptive benefits are evident from later, when people face new challenges



The Gallup research has contributed an additional ‘P’ to the 4 P’s of marketing i.e. product, price, and promotion place and now people to the mix



The Gallup defines a great workplace as one where employees were satisfied with their jobs which helps produce positive business outcomes.

IES Survey 2003

Categories of Employee Engagement According to the Gallup there are there are different types of people Engaged– Builders  They want to meet and exceed desired expectations  Keen to know about the company and their place in it  Perform at consistently high levels using their strengths at work every day  Work with passion, drive innovation and move their organization forward 

Not Engaged  Concentrate on tasks rather than the goals and outcomes  Tend to feel their contributions are being overlooked, and their potential is not being tapped  They often feel this way because they don't have productive relationships with their managers or with their coworkers.

Contd… 

Actively Disengaged   



Cave dwellers. Consistently against Virtually Everything They're not just unhappy at work; they're busy acting out their unhappiness Sow seeds of negativity at every opportunity. Every day, actively disengaged workers undermine what their engaged coworkers accomplish As workers increasingly rely on each other to generate products and services, the problems and tensions that are fostered by actively disengaged workers can cause great damage to an organization's functioning .

Primary Research  

Study Sample: 100 employees of Kellogg’s Data Collection through Questionnaire

Employees opinion of the organization 1. PERCEPTION OF THE COMPANY I think I work for a great company 2. SOCIAL RESPONSIBILITY I view my company as socially responsible 3. CULTURAL VALUES I feel the cultural values of my company align with my own 4. FEELING VALUED IN THE WORK PLACE I feel valued by my company 5. EMPLOYEE COMMITMENT I am strongly committed towards the company

Workplace factors 6. TRAINING AND DEVELOPMENT OPPORTUNITIES I am offered good training and development opportunities 7. COMMUNICATION My opinions are listened to 8. PAY AND RENUMERATION I am paid a fair wage for what I do 9. REWARD AND RECOGNITION My efforts are recognized by the company 10. EMPLOYEE POTENTIAL I am working to my full potential 11. JOB SATISFACTION I am satisfied with my current job 12. CHALLENGES My work is interesting and challenging

Employee opinion of the management 13. MANAGEMENT SKILLS- RELATIONSHIPS I am satisfied with the relationship I have with my manager 14. MANAGEMENT SKILLS-COMMUNICATION My manager communicates clearly 15. MANAGEMENT SKILLS- MANAGING My manager is good at managing people 16. MANAGEMENT SKILLS-PROBLEM SOLVING My manager is good at problem solving 17. MANAGEMENT SKILLS-SUPPORT My manager supports my developmental goals 18. MANAGEMENT SKILLS-GOALS AND OBJECTIVES My manager sets clear goals and objectives 19. MANAGEMENT SKILLS-EQUALITY My manager treats all employees equally 20. MANAGEMENT SKILLS-APPRECIATION My manager appreciates me 21. MANAGEMENT SKILLS-MOTIVATION AND INSPIRATION My manager motivates and inspires me

Employee Tenure 22. On a scale of 1 to 7, how much longer do you think you will stay with company? Use the following for indicating your choice  Less than 6 months 1  6-12 months 2  12-24 months 3  24-36 months 4  36-60 months 5  60-84 months 6  Always 7

Disengagement Factors 23. Most             

important reasons as to why you would not remain with company beyond 24 months There are no career advancement prospects I am not recognized or rewarded for my efforts I am bored with my job I can get better pay elsewhere Lack of communication/cooperation with management The culture is not very supportive or friendly The job has poor work/life balance I face unreasonable pressure and demands My manager and I have poor relationship Personal Reasons Lack of job security Poor corporate social responsibility I do not get along well with my co-workers

Staff retention factors 24. Most important reason that is keeping them engaged with the company  A sense of purpose and meaning in my job  A good relationship with my co-workers  A good relationship with my manager  New and interesting challenges  Great work/life balance  Fair and reasonable Pay and Employee Benefits  Long Term job security  Development opportunities  A culture of fairness/equality among co-workers  Open communication with Management  Reward and Recognition  A set career path/promotional opportunities  Feeling more valued by the organization  Better social responsibility

Key Findings Primary Research

Employees opinion of the company I WORK FOR A GREAT COMPANY 45 No. of Employees

40 35 30 25 20 15 10 5 0 S Disagree

Disagree

M Disagree

Neither

M Agree

Agree

S Agree

Agree

S Agree

No. of Employees

MY COMPANY IS SOCIALLY RESPONSIBLE 50 45 40 35 30 25 20 15 10 5 0 S Disagree

Disagree

M Disagree

Neither

M Agree

I work for a great company  86% Agree,7% disagree,1% s disagree  Level of agreement amongst people leaving 40% compared to 95% with people staying put  Interpreted by position type, a strong level of agreement is more in a senior position. My company is socially responsible  86% agree,6% disagree & 1% s disagree  75% agreement amongst employees leaving & 90% amongst rest  Stronger agreement with senior management and employees in later stages of career

Contd… CULTURAL VALUE OF MY COMPANY ALIGN WITH MY OWN 40 No. of Employees

35 30 25 20 15 10 5 0 S Disagree

Disagree

M Disagree

Neither

M Agree

Agree

S Agree

Agree

S Agree

I FEEL VALUED BY MY COMPANY 40 No. of Employees

35 30 25 20 15 10 5 0 S Disagree

Disagree

M Disagree

Neither

M Agree

Cultural values of my company align with my own  82% agreement,12% disagreement  6.5 out of 10 of outgoing employees agree compared to 9.5 amongst rest I feel valued by the company  74% agree, 18% disagree  8 out of 10 employees leaving disagree compared to 1 out of 10 in rest  Disagreement high amongst junior employees

Contd…

I AM STRONGLY COMMITTED TO MY COMPANY 40 No. of Employees

35 30 25 20 15 10 5 0 1

2

3

4

5

6

7

8

I am strongly committed to my company  83% agree, 9% disagree,1 in 10 disagree  50% agreement amongst employees leaving compared to 95% amongst rest

Employee opinion of workplace factors I AM OFFERED GOOD TRAINING 35 No. of Employees

30 25 20 15 10 5 0 S Disagree

Disagree

M Disagree

Neither

M Agree

Agree

S Agree

Agree

S Agree

MY OPINIONS ARE LISTENED TO 40 No. of Employees

35 30 25 20 15 10 5 0 S Disagree

Disagree

M Disagree

Neither

M Agree

I am offered good training and developmental opportunity  80% agree,12% disagree and 2% strongly disagree  1 in 6 from executive & managerial group feel trg inadequate  32% disagreement amongst people leaving compared to 9% amongst rest My opinions are listened to  84% agree,11% disagree  9% crew and 52% senior manager strongly agreed indicating stronger agreement at senior levels  6 out of 10 disengaged compared to 9 out of 10 agree

Contd… I AM PAID FAIR WAGE 40 No. of Employees

35 30 25 20 15 10 5 0 S Disagree

Disagree

M Disagree

Neither

M Agree

Agree

S Agree

I am paid a fair wage and benefits  78% agree,16% disagree. 1 in 6 employees disagree  34% disengaged disagree compared to 11% engaged

MY EFFORTS ARE RECOGNIZED BY MY COMPANY

No. of Employees

35 30 25 20 15 10 5 0 S Disagree

Disagree

M Disagree

Neither

M Agree

Agree

S Agree

My efforts are recognized by the company  77% agree,15% disagree  5 out of 10 disengaged agree compared to 9 out of 10 engaged

Contd… I AM WORKING TO MY FULL POTENTIAL

No. of Employees

35 30 25 20 15 10 5 0 S Disagree

Disagree

M Disagree

Neither

M Agree

Agree

S Agree

I AM SATISFIED WITH MY CURRENT JOB

No. of Employees

35 30 25 20 15 10 5 0 S Disagree

Disagree

M Disagree

Neither

M Agree

Agree

S Agree

I am working to my full potential  72% agree, 23% disagree. 1 in 4 feel they are not working to their optimum potential  42% disagreement amongst disengaged employees compared to 20% amongst engaged

I am satisfied with my current job  73% agree, 20% disagree. 1 in 5 disagree  23% disagreement in lower positions  1 in 2 disengaging employees dissatisfied compared to 1 in 10 engaged

Contd…

MY WORK IS INTERESTING AND CHALLENGING 40 No. of Employees

35 30 25 20 15 10 5 0 S Disagree

Disagree

M Disagree

Neither

M Agree

Agree

S Agree

My work is interesting and challenging  84% agree,10% disagree  13% crew and 50% executives strongly agree  3 out of 10 disengaged employees disagree compared to .5 out of 10 engaged

Employees opinion of the management I am satisfied with the relationship I have with my manager  I AM SATISFIED WITH THE RELATIONSHIP I HAVE WITH MY MANAGER



35 % of Employees

30 25 20 15 10 5 0 S Disagree

Disagree

M Disagree

Neither

M Agree

Agree

S Agree

79% agree,15% disagree 54% of those leaving agree compared to 85% who will stay put

Contd… My manager is good at managing people

MY MANAGER IS GOOD AT MANAGING PEOPLE 35



No. of Employees

30 25



20 15 10 5 0 S Disagree

Disagree

M Disagree

Neither

M Agree

Agree

S Agree

My manager communicates clearly

MY MANAGER COMMUNICATES CLEARLY



35 No. of Employees

30



25 20 15 10 5 0 S Disagree

Disagree

M Disagree

Neither

M Agree

73% agree, 21% disagree 5 out of 10 employees leaving agree compared to 9 out of 10 amongst rest

Agree

S Agree

73% agree, 19% disagree 43% leaving employees disagree compared to 14% amongst rest

Contd… My manager supports my developmental goals

MY MANAGER SUPPORTS MY DEVELOPMENTAL GOALS 40 No. of Employees

35



30 25



20 15 10 5 0 S Disagree

Disagree

M Disagree

Neither

M Agree

Agree

S Agree

My manager treats all employees equally

MY MANAGER TREATS ALL EMPLOYEES EQUALLY



No. of Employees

35



30 25 20 15 10 5 0 S Disagree

Disagree

M Disagree

Neither

M Agree

Agree

76% agree and 14% disagree 54% disengaging believe their manager supports their development goal compared to 84% for engaged employees

S Agree

70% agree and 22% disagree 46% disengaged employees agree compared to 76% engaged

Contd… MY MANAGER IS GOOD AT PROBLEM SOLVING

My manager is good at problem solving

No. of Employees

40 35 30 25



20 15



10 5 0 S Disagree

Disagree

M Disagree

Neither

M Agree

Agree

S Agree

My manager appreciates me

MY MANAGER APPRECIATES ME 40



No. of Employees

35 30



25 20 15 10 5 0 S Disagree

Disagree

M Disagree

Neither

M Agree

79% agree,13% disagree 59% agreement amongst disengaged compared to 85% amongst engaged

Agree

S Agree

81% agree, 11% disagree 58% agreement amongst disengaged compared to 94% amongst engaged

Contd… My manager sets clear goals

MY MANAGER SETS CLEAR GOALS

No. of Employees

35



30 25



20 15 10 5 0 S Disagree

Disagree

M Disagree

Neither

M Agree

Agree

S Agree

My manager motivates & inspires me

MY MANAGER MOTIVATES AND INSPIRES ME

No.of Employees

30



25 20



15 10 5 0 S Disagree

Disagree

M Disagree

Neither

M Agree

Agree

83% agree,18% disagree Disagreement 60% compared to 15% amongst engaged employees

S Agree

64% agree, 24% disagree 60% disagreement amongst disengaged employees compared to 17% amongst engaged

Employee’s expected tenure HOW LONG YOU WILL STAY WITH THE COMPANY

No. of Employees

35 30 25 20 15 10 5 0 <6 months

6-12months

12-24months

How long will you stay with the company     

Up to 12 months 12-24 months 24-36 months 36-60 months More than 5 years

13% 12% 18% 26% 31%

24-36months

36-60months

>60months

Reasons for engagement ENGAGEMENT FACTORS Other

5

CSR Feeling valued by the organisation

4

Rew ard and Recognition Open communication

3

Equality/fairness Culture Developmental opportunities

2

Long term job security Fair Pay and benef its

1

Great w ork/lif e balance

0

10

20

30

No. of employees

40

50

New and interesting challenges A good relationship w ith manager A sense of purpose in job

      

A sense of purpose and meaning in my job (32) A good relationship with my manager (22) New and interesting challenges (20) Pay and benefit (47) Career development opportunities (42) Equality culture (29) Having a sense of purpose and meaning in the job most important to managers at 83%, this group also achieved the highest result for rating new and interesting challenges 72%

Reasons to disengage 5

Personal Reasons Poor relationship w ith Manager

4

Unreasonable pressure and demands The job has a poor w ork/life balance The culture is not very friendly

3

Lack of communication I can get better pay elsew here

2

I am bored w ith my job I am not rew arded for my eff orts No career advancement prospects

1 0

     

2

4

6

8

10

12

14

There are no career advancement prospects (7) Poor relationship with boss (13) I am bored with my job (3) I can get a better pay elsewhere (11) Executives/ junior managers are likely to leave the company due to career opportunities and levels of pay Senior managers were likely to leave due to lack of challenges and reward and recognition frameworks

Summary-Opinion of company 

Kellogg’s employees believe they work for a great company, contrary to prevalent trends of dissatisfaction and cynicism in employees



Company in itself generates high levels of satisfaction, is socially responsible, and strongly aligned to personal values.



Senior employees rated the company higher than lower level employees



Strong positive perception is more at managerial cadre



Interpreted by projected tenure, relationship between how long an employee will remain in their current role with their agreement that their company is socially responsible (.20), they are feeling valued(.29), their belief in company’s values (.14) or even their commitment (.19)



47% of variation in the decision to stay vis-a vis opinion of the company is explained through regression

Summary-Management skills       

Employees have fairly positive views of their managers Dissatisfaction with direct managers with disengaged employees 45% compared to 15% engaged, relationship with boss is key to engagement Inequality was concerning feature regarding this section with 22% disagreement Employees at the executive and junior management level have shown maximum level of dissatisfaction with their leadership teams At managerial level, not all see their bosses as role model Regression results establish that 59% of variation in the decision about the projected tenure being explained by management skills variables Manager’s treating the employees equally(.29), being able to motivate(.44), being good at problem solving(.25) and supporting subordinates(.29) in their developmental goals are key factors contributing to this decision

Summary-Workplace factors  





Pay, relationship with boss and career advancement opportunities are the most cited reasons for engagement To senior managers reward and recognition was the most selected reason for wanting to leave their organizations. This is distinct from salary levels and alludes to broader employee benefits and perhaps more importantly, general recognitions of achievements Regression analysis shows 54% variation in decision to stay with company being explained by workplace factors. Wages(.34), developmental opportunities(.2), rewards frame work(.35) are significant contributors Only 72% agree to working to their full potential

Recommendations To bring in high level of association among the crew, it is recommended 

Educate the crew about the rich history, culture, and products of the company.



Conduct welfare activities/ training for the spouse too aimed at enriching their family life by personal development. This enhances emotional attachment



Always support your employees during difficult times, both financially and emotionally



Build emotional connect by involving families through functions like family day, picnic with families and say granting scholarships to wards of employees. Managers to know their men !!!

Contd… 

Create a culture of transformational leadership. Impart leadership training as 7 Habits to all managers. Percolate KBLM down to line managers



Team Leaders to encourage involvement of his team in decision making. The extent to which employees feel able to voice their ideas, and managers listen to these views and value employees’ contributions, makes a significant contribution towards how employees perceive their managers



Implement Suggestion Schemes, SGAs along with the reward framework



All managers to create Win-Win and Synergies through Ideation sessions



Workshops for people managers on holding critical conversations as well as coaching. This is to enhance the performance management by clear goal setting and on going coaching and mentoring

Contd… 

Promote and map out career pathways and developmental opportunities. Make this a part of an attraction and retention strategy



KPI for the managers- development of his Direct Reports. The opportunities and support employees have from their managers to develop their jobs is key to a positive perception of managers amongst the individuals



Create a transformational leadership culture, where individuals become well connected to the organization's purpose and overall mission through Open Forums



Remain competitive with salary. Do industry benchmarking and compensation survey



Job rotation and multi skilling to avoid boredom



Show concern for employees’ health and well being. Make them feel valued

References              

www.gallup.com http://en.wikipedia.org/wiki/Employee_engagement http://gmj.gallup.com/cms.aspx?ci=102037&title=HS www.simply-communicate.com http://www.employeeengagement.com/ www.aim.com.au/Publications http://www.banffcentre.ca/departments/leadership/library/pdf/driving_employee_engagemen t_Weiss-Molinaro.pdf www.cipd.co.uk http://www.isrinsight.com/Solutions/engagement.aspx http://www.york.ac.uk/admin/hr/about_hr/strategy/employee_engagement.htm http://www.employment-studies.co.uk/summary/summary.php?id=408 http://www.thepracticeofleadership.net/2007/02/27/the-ten-c%E2%80%99s-of-employeeengagement/ http://www.slackermanager.com/2008/05/300-free-employee-engagement-ideas-e-book.html http://www.shrm.org/foundation/1006EmployeeEngagementOnlineReport.pdf

Thanks