You are on page 1of 18

Employee Engagement

Employee Engagement • What is it? • Why does it matter? • What drives it? • How can you measure it? • Is it significant? .

not just passionate or proud.What is it? • Engaged employees are not just committed. . “Engagement: The Continuing Story 2007” • Employee Engagement is a combination of commitment to the University of York organisation and its values plus a willingness to help out colleagues. They have line-of-sight on their own future and on the organization’s mission and goals. It requires a two-way relationship between employer and employee. Blessing White. They are “enthused” and “in gear” using their talents and discretionary effort to make a difference in their employer’s quest for sustainable business success. Institute for Employment Studies. and works with colleagues to improve performance within the job for the benefit of the organisation. An engaged employee is aware of business context. “The State of Employee Engagement 2008” • A positive attitude held by the employee towards the organisation and its values.

Hockey (2000) says that people adapt to the demands of work in three ways: • Effort without distress (Engagement) – Working harder and deriving satisfaction • Distress without effort (Disengagement) – Giving up and feeling bad about it • Effort with distress (Strain) – Working harder but with fatigue and anxiety .What is it? It is inversely associated with stress.

What is it? It is closely linked to Affective Commitment: • The employee's positive emotional attachment to the Meyer & Allen (1990) organization. An employee who is affectively committed strongly identifies with the goals of the organization and desires to remain a part of the organization. Employees are involved in occupational activities that they enjoy and that they are able to effectively pursue unfettered by unnecessary organisational constraints. . O’Malley (2000) • The relationship exists because it is pleasurable.

What is it? Definitions may vary. a desire to work to make things better an understanding of business context and ‘bigger picture’ being respectful of. . the organisation belief in the organisations’ products/services a sense that the organisation enables the employee to perform well a wish to behave collaboratively and be a good team player a willingness to go beyond the requirements of the job. and pride in. but there is broad agreement on the basics: • • • • • • • • • a positive attitude towards. colleagues keeping up to date with developments in the field. and helpful to.

664.2% improvement in net income growth 19.2% decline in EPS (Source: ISR.8% decline in net income 32.000 employees world wide. one-year study.8% improvement in Earnings per Share Companies with LOW employee engagement saw 3.Why does it matter? Employee Engagement Business Performance Companies with HIGH employee engagement saw: 13. 2006) .7% decline in net income growth 11.2% improvement in operating income 27.

2004) .000 employees world wide. 50.Why does it matter? Engaged employees: • Perform up to 20% better than less-engaged employees • Are 87% less likely to leave the organisation than employees with low levels of engagement • Are more innovative • Are more committed to customer satisfaction • Contribute more to their organisation than their less engaged peers • Consistently go the extra mile (Source: CLC.

What drives it? • There have been innumerable studies looking for the common drivers of Engagement. • Substantial differences have been found between nationalities and types of people. • There seem to be four principle common themes in which the drivers lie…… .

What drives it? Organisational Commitment The psychological attachment of an employee to an organisation The shared ethos of meeting customer needs Service Commitment Engagement Work & Career Commitment The importance an individual places on the actual work they do and the development of a career The day to day impact of the work done and the immediate context within which it is set Job Satisfaction .

How can you measure it? • Invite respondents to agree or disagree with a series of statements that comprehensively address the four key themes. . This list can be reduced to between 10 and 20 items when set in the context of a broader employee survey. • We have identified a bank of 30 items.

How can you measure it? For each respondent we use an algorithm to calculate an Engagement score based on the individual items .and express it as a score out of 100. 90 100 80 70 60 50 40 30 20 10 0 68 Engagement Index .

excellent • External comparison of such a highly .critical .moderate .poor .How can you measure it? • The index provides a reliable comparative ‘single number’ measure for different groupings within the survey and on an historical basis personalised measure is fraught with danger but. in general: – – – – – Below 50% 50% to 60% 60% to 70% 70% to 80% Over 80% .good .

and any. 50 40 Frequency 30 Engagement Histogram 20 10 0 15 % 21 % 39 % 45 % 57 % 63 % 82 % 27 % 33 % 51 % 70 % 76 % 88 % 94 % 3% 9% Engagement level 10 0% . an histogram of the way in which Engagement is distributed. if numbers permit.How can you measure it? For each. business unit or demographic group within the survey we can then calculate an overall index score and.

It allows us to identify the proportions that fall into the main engagement categories: – – – – Engaged Enrolled Disenchanted Disengaged (70% engagement or higher) (50 to 70% engagement) (30% to 50% engagement) (30% engagement or less) .How can you measure it? • The histogram provides a powerful visual representation of something very complex.

90% being much easier to prove.Is it significant? • Statistical Significance is based on Confidence Intervals. and depends on three things: – The degree of confidence is the biggest influence. – The number of respondents is next – the CI for small groups can be enormous. We often set this at 95%. – The CI is widest for scores of 50% and gets easier to prove as scores increase or decrease. . 99% harder.

.What is significant? • At individual item level we can use the statistical Test for Proportions: • At index level we can use a t-test: P=[p1n1 + p2n2] / [n1 + n2] • However. this is only relevant to very large groups.

Even if it doesn’t it is highly unlikely to mean the opposite! . • If one figure is more than fractionally higher than another it probably means something. Significance addresses ‘random variation’ whilst we are dealing with considered responses.Is it significant? • Let common sense prevail. we are dealing with people not data.

45. 5.:069.

/.511.4:.:165.3 .

4:. .

51 .5179::. . .:0696.6            5.:.45.

/30647.  .93.9:656:0..30647.3      36  .6 "9 .6  .95.564.9.  '517961:.:9.60.6  .

.

.

.

.

0. 09.59 /.5:.1.3 .:969195.5165.3/.. 559.3:14..9675: .3 7669 4619. :5354/94. 661 0335.:9:9.5..690.:9.:: 79:65.

:9.45.46.5:.020390.69.3351:069.45.50.564.60..0     .51.69..51  54/9:794.569. :1:.:90.70967.303.5 . :.  5.9/.5 /:5::5.0 . .691469. 69.5.4                               3.1   706:03..505.

6 5.69..3 979:5.693:: ...45.4.6 .796769.65:.656:64.6 5.45.336::.335.45.7693:.. .  .1 :5..615.:9.  5.60..5.47961:.55.45.0.1 596331 :50.5906473 .564..69:     5.45.1  5.  ':.699 .

50:/.5/56946:  ':1:.919  '54/969:76515.9.6 796. ..5.9.:9.3&50.511751:65.::069:509.::5.::5.:.69:069:6 ...:50.0.6 796  .51..:.:.: .5350  6.3: .:9.33 '54/969:76515. 967:0.5:  '196065150:.69:4.  /540.:69109.:16565150 5./:.  &.:.5:.

0.4330...3..5.65: #(75 75*(5 5*  .5:.69#96769.  .51330..::50. :..:.5:.511.3':.

 .:..51330..5:.

::65393.9 967: .5..693.  69 .

5./34.5: :64.0.796/.767356.65.:..065:1919:765::  659:469.91.653:.56.9..9.33 9.64...59.35 .5.:50. &50.5.  .. .119:::9.3..6776:.064465:5:79.1.16:5.35.5164.50 ..5 5.:3 5323.9 1.