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howengagearemyemployeesexecrrguide-1251988767863-phpapp02

howengagearemyemployeesexecrrguide-1251988767863-phpapp02

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Published by Chinmay Shirsat
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Published by: Chinmay Shirsat on Jun 26, 2013
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06/26/2013

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HOW ENGAGED ARE MY EMPLOYEES?

-PriceWaterhouseCoopers Only 17% of today’s workers are highly willing and able to contribute to their organizations success.2% decline for companies with low engagement.HOW ENGAGED ARE MY EMPLOYEES? High engagement firms experience an EPS growth rate of 28% compared to a 11. and an alarming 19% of workers have mentally checked out of their jobs. -Gallup 95% of executives are concerned about retaining their key employees. -Leadership IQ Employee engagement should be the #1 concern for organizations over the next 24 months . -Towers Perrin When employees are highly engaged. -Towers Perrin Disengaged workers cost the economy $300B or more per year. -WatsonWyatt 47% of your top performers are currently looking for a job. a significant improvement in employee engagement was associated with a $95 million increase in revenue. -WatsonWyatt Senior management’s ability to demonstrate genuine interest in employees is the top engagement driver globally. their companies enjoy 26% higher employee productivity. -Towers Perrin FORTUNE 500 companies in the lowest quartile in profitability had 50% fewer engaged employees compared to the top quartile. -Gallup For the typical S&P 500 organization.

employee engagement is a must to ensure an organization is positioned to survive the economy and flourish well into the future. It is possible to have satisfied employees that are not aligned with the strategic direction of the organization. 2000 . They lack a connection to the organization and possibly have no passion for their company’s mission. 2 NOT ENGAGED Employees are “going through the 3 ACTIVELY DISENGAGED Disconnected employees Why is employee engagement critical to an organization? As the statistics show. Quinn: “The Employee-Customer Profit Chain at Sears”. employee engagement is a critical driver of business success. Voluntary turnover The link between engagement & profit Engaged employees stay longer Retention of key employees drives customer satisfaction Satisfied customers remain customers Customer retention drives profitability Profits drive shareholder value Source: Rucci. The three types of employees 1 ENGAGED Highly enthusiastic employees work smart and take pride in their contributions to the organization. They seek out others to commiserate with in order to undermine the organization. motions”. Employee engagement is NOT the same as employee satisfaction. They maintain a high morale and are role models for co-workers. at a time when layoffs. The engagement of your employees will determine how they spend their discretionary time. ultimately impacting efficiency and effectiveness. Often engagement can be characterized by the level of enthusiasm or morale demonstrated by the employee.What is employee engagement? Employee engagement is the alignment of an organization’s people with the overall goals and objectives of the company. the level of effort they put forth and their inclination to work on productive activities. A company’s most important asset is its people. more than ever. Now. Harvard Business Review. spread their low morale amongst co-workers. Kirn. expense reductions and revenue declines are prevalent.

healthy living. Within each of these types of programs. you must know where you are today and where you want to go in the future. Second. “Companies with a strong link between enterprise strategy (corporate business objectives) and reward programs generate a return almost 40% higher than competitors without such strategies. seamless enterprise solution. training. This is not as simple as it sounds. rule structures are designed to reinforce and motivate positive behaviors that lead to goal achievement. The most common types are discretionary based. stakeholders. The easiest. employee retention. you must orchestrate corporate objectives. Drive business in an evolving market Involvement + Commitment = Engagement = Increased Effort = Better Results . technology and reward fulfillment into a cohesive.What is an employee engagement program? An employee engagement program. Work/Life Health and wellness Idea/innovation Safety Process improvement Best practices How do you design an employee engagement program? There are several steps involved in the planning of an employee engagement program. demonstrations of core values. Multiple employee programs may run at once but should be consolidated onto an integrated.” -Aberdeen Group Discretionary Manager spot awards Team-based recognition Peer-to-peer E-card Discretionary sales initiatives/contests Engagement Performance based Training/certification Customer service and satisfaction Employee referrals Years of service Corporate celebrations/ anniversaries. etc. engagement based and work/life based. is a formal initiative in which an organization invests in strategies that help drive the human behaviors it needs to achieve organizational success. or employee recognition program. central platform. First. cost savings and/or revenue generation. most effective and efficient way to design a program is to work with a proven partner within the People Performance Management (PPM) industry. The chart to the right identifies some of the most common employee programs.

Qualitative data is key to understanding the overall level of engagement amongst your people. There are several qualitative ways to measure engagement including surveys. administration and measurement of the program. technology. Regardless of the type of benchmarks you choose. Quantitative – metrics that provide quantitative data about the levels of engagement amongst your people are ideal for measuring the success of your program. you will need to conduct an analysis of the trends to determine overall program success. employee turnover. As with most enterprise-wide initiatives. However. it’s important to ensure the metrics you utilize allow you to analyze the performance of your program in relation to your goals and objectives. These metrics. ensure that they have a methodology to return on this investment. PUBLIC RELATIONS 60% 40% 20% (Source: Incentive Research Foundation) PUBLICATIONS ADVERTISING CONSULTING DIRECT MAIL 80% INCENTIVE PROGRAMS . Operational – these metrics include such things as ease of use of the technology platform. etc. is 20 to 30% of the program. when coupled with the quantitative and qualitative data. customer service reports. focus groups. When choosing a PPM partner. The difference in the two numbers will help define employee engagement levels within your employee base and determine the overall success of your program. the type of communications you implement. as a general rule of thumb. performance appraisals. participant earnings reports. your culture. unlike other sales and marketing strategies. etc.How do you measure an employee engagement program? Employee engagement can be measured in a variety of ways. Quantitative. Fixed costs of commonly used sales and marketing strategies 100% The fixed cost of incentive programs. the complexity of the program rules and the size of the team necessary to administer the program. Investment considerations must be given to your starting point. What does an employee engagement program cost? The investment you make to improve the performance of your organization will vary depending on scope. Once you have the data collected on a pre. client retention and other definitive data on a pre. provide an excellent look into the engagement of your people and the overall impact your engagement program is having on your employees’ performance. In order to measure the ability of your program to improve engagement levels. you should analyze data related to absenteeism. The good news is that these programs pay for themselves. Qualitative – these metrics provide you a snapshot into the mindset of your employee base from which you can start to define levels of engagement and the impact your program has on that level. your demographics. you will need to allocate up to 25% of the total budget for communications. you can expect to invest between 1-5% of total payroll on a successful employee engagement program.and post-program level. The remaining 70 to 80% is paid only when the program’s goals are reached. interviews. qualitative and operational metrics can all be applied to measure the level of engagement within your organization. redemption trends. Recognition is for accomplishments and achievements that have improved the company financially. Engaged employees increase your employee lifetime value (ELTV) while they work smarter on a daily basis.and postprogram level.

you’re wasting money and limiting effectiveness. so a majority of your people may be aligned with the strategic objectives of the organization. If you have separate internal programs. loss of productivity and loss of relationships. if your people are highly compensated where is the motivation in cash? Provide them with a reward that will stay engrained in their mind and help drive the behaviors you want repeated. While cash is important. While you may have the right people in place and the correct strategic plan today. how do you ensure that alignment continues across your workforce? The worst thing that could happen is to hire a number of new employees who do not align with the direction or objectives of your organization. they hinder it.Not sure an employee engagement strategy is right for your organization? Unsure whether or not your current program is returning a benefit to your organization? Ask yourself the following questions: Are you running disparate internal recognition programs? Are your people all on the same page? If so. as well as bad. Can you guarantee your success will last? Are you paying your people for the work and results they are delivering? Sooner or later money will not satisfy an employees needs and the employee will wear out and look to move onto a more manageable work load. Instead of helping your business. . It takes years to develop a culture of success. what happens if something goes against your plan? What happens when the growth curve flattens or the attitude of success starts to recede? Ensure your people are being motivated for demonstrating behaviors that will endure good times. Are you concerned with employee turnover? It can cost upwards of 150%+ of base salary in recruiting and training fees. Don’t lose your momentum because of employee turnover. It is much easier to encourage and groom the proper behaviors during the good times than it is to force the proper behaviors during down times. But as you add staff. By becoming a disturbance within your walls and altering the alignment of others around them. how are you ensuring the communications are consistent? You have had success. It takes a lot less time to tear it down. Aligning all of your employees is done one way — through consistent and repeated communications. This number can reach 250% for sales and management positions.

We guarantee our results with the industry’s only pay for performance financial guarantee model. we have driven powerful and proven results through: > Sales incentives > Employee Recognition and Reward Initiatives > Business-to-Business Loyalty Solutions > Product Launches > Meetings and Events To learn more about ITAGroup and how we can help motivate and engage your people to greater performance.itagroup.com. Since 1963. Contact us to learn more about how we truly invest our own money in the success of your organization. . visit our Web site at www.ITAGroup is a full-service people performance management company.

IA 50266-6770 .4800 Westown Parkway West Des Moines.

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