Simplified Understanding

BC BENCHMARK

S e p t e m b e r 2 0 1 3

What is Employee Satisfaction Insights?

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Straightforward approach to accurately

measuring employee satisfaction and

understanding what is helping or hurting

an organization’s ability to keep staff

happy (or better, delighted)

and loyal to your organization.

Start to finish in as

little as 4 weeks

Advantages of Our Approach

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Flexible

National, BC and Alberta normative comparisons

Fast Turnaround

Cost Effective

Expertise

Employees have reassurance results are confidential

Projectable, quantifiable data

Expert question design

Recent Benchmarks

Less than you think: starting at $5,000

8-10-minute survey with

room to add custom

questions or add-on tools

Employee Satisfaction Insights Methodology

This report provides results from the normative wave in BC. Its purpose is to highlight key features of the Employee

Satisfaction Insights tool as well as demonstrate typical deliverables.

National and Alberta normative benchmarks also available.

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Employee satisfaction (overall and on 15 drivers)

Employee loyalty/retention

Employee engagement on 8 attributes

Driver analysis of 15 satisfaction attributes and 8 engagement attitudes versus overall satisfaction

Profiling analysis to identify groups more/less satisfied/loyal

ü  788n online interviews with British Columbians 18 years or older who are employed full or part time

ü  Margin of error is +3.5 percentage points, 19 times out of 20

ü  Field work June – July 2013

ü  Sample weighted in analysis by age and gender according to Census Canada figures

Key Insights

•  As a whole, most BC employees are happy with their employers, with overall ratings as well as ratings on many specific factors very positive.

–  Still, it is a small minority (about one in four) who are “delighted” by their employer (giving them a nine or ten out of ten).

–  And only a similar small percentage would highly recommend them to others. Further, there are more “detractors” than “promoters” on the recommend scale; on a traditional NPS, this means employers are in a negative position (-10).

–  Finally, and perhaps most concerning, more than half would consider leaving if the right opportunity came up.

•  Segmenting the market of employees based on overall rating and overall loyalty, 8% of BC employees are “delighted” with their employer yet would still consider leaving and 23% are “happy” and would still consider leaving – this means that one-in-three staff may be entirely happy, yet not loyal.

•  In particular, younger employees (under 55) and those who have been with an organization in the “middle zone” of time (2-9 years) are least satisfied, least likely to recommend and at the greatest danger of leaving. This may represent a particularly critical risk factor since much of the training investment has been done with this group of staff, yet they have many years to contribute to your organization.

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Insight: Job satisfaction does

not necessarily equate to loyalty. As such, BC organizations face a

significant challenge in staff retention and need

ways to improve their odds that valued staff

will stay.

Key Insights (cont.)

•  Driver analysis was done with 15 attributes ranging from salary, job security, working conditions, policies, relationships and processes. These attributes are similar to those that Herzberg* would have termed “hygiene” factors – that is, those that an organization must perform well on in order to prevent employees from becoming dissatisfied but yet do not necessarily lead to higher levels of motivation.

–  Of these drivers, results find that staff morale quite significantly outweighs the other factors in driving satisfaction.

–  Four other drivers (communications from senior management, training and learning opportunities, physical work environment and company processes and procedures) are also important drivers.

–  In contrast, the more “basic” attributes like benefits, vacation time, bonus, job security and wages/salary are less critical, as are working relationships with colleagues.

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Insight: As Herzberg pointed out,

both hygiene and motivational factors work together and employers need to pay attention to

both. This research suggests which aspects

of each will give an employer the most

“power” in improving job satisfaction and

ultimately loyalty. Among hygiene factors, staff morale outweighs all else; for motivational

factors, rewards for when an employee goes above and beyond stands out.

•  Driver analysis with 8 “commitment” factors or statements was also undertaken and these factors are like those that Herzberg would have termed “motivational” factors.

–  Of the 8, the one of most critical importance in driving job satisfaction is being rewarded for doing a good job.

Francis Herzberg’s Motivation-Hygiene Theory.

Key Insights (cont.)

•  When it comes to how BC employees feel about their employers on those same 15 attributes, they are happiest (at least seven out of ten satisfied) with their current employer when it comes to personal relationships (with their co-workers especially, but also supervisors) and a number of other basics like physical work environment, vacation time, job security, work/life balance and benefits.

•  The fewest employees are happy (fewer than six out of ten) when it comes to bonuses (even confined to being among those who receive them), opportunities for advancement, stress levels, company processes and procedures and communications from senior managements.

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Insight: Satisfaction ratings together with driver

analysis results suggest that the areas that BC employers most need to focus on improving

(those that are important and yet

employees are not as satisfied with) are:

communications from senior management, company processes

and procedures, stress levels and in

rewarding deserving employees for a job

well done.

•  Of the 8 commitment factors, it is clear that employees feel that they understand what is required of them and a large majority (more than nine in ten) are committed to the success of their organization and understand how their role contributes to the company goals.

•  On the less positive side, far fewer (six in ten) agree that they are rewarded for doing a good job.

As a way of demonstrating that we “practice what we preach”, Insights West makes for a good case study of what one employer has done to attract some of the best talent in the industry and ensure that employees are not just happy with their jobs, but fully committed to the organization’s success.

A Case Study

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Incorporated in 2012, Insights West is a progressive full-service research firm that provides insights-driven research solutions and interpretative analysis. It currently has 10 full-time and 5

part-time employees. Many of those employees followed the head of the company (Steve Mossop) from their previous employer (a large global research firm) to this new venture. Many have become shareholders, personally investing in Insights West. Staff work hard and have fun

doing it – they are not afraid to pitch in and do anything needed to make the company a success – from sanding the floors of the new office to working on the weekend to make a tough

deadline. So what has Insights West done to inspire this level of loyalty and commitment?

ü  Clear company values: Our company values were integral to the very first business plan written and are posted on our website.

ü  Passion for what we do and for doing it right: Every researcher, panel manager and marketer at Insights West is in the business because they love what they do – simply put, passion for the job is key hiring criteria. It is also an ongoing expectation with all the work that we do – that it is done right, and meets or exceeds every clients’ research needs.

A Case Study (cont.)

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ü  Respect for individuality: There is no “one size fits all” attitude at Insights West – each employee is encouraged to find the specific aspects of their job that they excel at and also to try new things. This means that we’re allowed to do tasks that engage us and yet might be outside of our usual job description: like the panel manager who designs infographics and the chief methodologist who organizes our electronic filling system. This also means that individual working styles (such as different working hours and working from home) are embraced because we know that respect for employees’ individual needs shows our trust in them.

ü  Strong leadership that communicates and listens: Steve Mossop is an inspiring leader – he cares for the people who work for him and it shows. Never stuffy, always welcoming new ideas from any staff member, he treats all members of the team (no matter how senior or junior) as if they and their opinions matter. He communicates regularly and clearly about the goals of the company and the progress towards those goals. Our Vancouver office is an open office, with no assigned desks or closed offices; all staff sit together when they are in the office (including Steve). End result: staff feel like they are an integral part of building a new, exciting company.

ü  Rewards: Salaries are market-competitive and benefits are generous and flexible (a simple dollar limit for each employee). When an employee goes above and beyond, they are rewarded. These rewards span from the more traditional (salary increases, bonuses, free stock, etc.) to the more ad-hoc (a Friday off, free flight, tickets to the PNE, dinner out, etc.).

ü  Fun corporate culture: We take time to have FUN – celebrating success, Friday afternoon cocktails, practical jokes in the office – creating a work culture that people want to be part of.

Simplified Understanding

DETAILED FINDINGS

10 – Excellent

9

8

7

6

5

4

3

2

1 – Poor

11%

15%

24%

21%

12%

6%

4%

3%

1%

3%

Understand how your employees rate your organization in comparison to the benchmark.

Overall Rating of Employer

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Base: Total respondents (n=788) A9. How would you rate your organization overall as a place to work?

Delighted 25%

Happy 45%

Not So Happy 29%

Average 7.1

16%

11%

18%

17%

7%

15%

3% 2%

2% 7% 10 - Extremely likely to recommend

9

8

7

6

5 - Neutral

4

3

2

1

0 - Not at all likely to recommend

Taking it a step further, understand if your employees are more or less likely to promote your organization as a place to work and assess the level of risk they are saying negative things to others.

Likelihood to Recommend Employer

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Base: Total respondents (n=788) A10. If someone you knew were looking for a job, how likely would you be to recommend your employer as a place to work?

NPS -10

Promoters 27%

Detractors 37%

Passives 35%

NPS Definition: (Net Promoter Score)

= Promoters less Detractors

26%

Subgroup analysis will allow us to identify those employees who are most/least content.

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27% 23%

18-34

35-54

55+

Delighted NPS

24% -12

23% -14

31% -1

$

< $40k

$40k to < $70k

$70k +

Personal Income

Decision Making

Work Status Gender

$

Job Type Years w/ Employer

-23 26%

25%

27%

Professional

Management

Admin.

Worker

24% 31%

23% 25%

-9 -11 34% -7

Age

< 2

2 to 9

10+

Delighted NPS

34% 0

24% -13

23% -12

-11

-6

0

+2

-3

-14

-22

Manage Others

Who’s Happy and Who’s Not

Delighted (9-10/10)

23% -11

23% -14

28% -6

29% 16%

-1 -30

Higher than comparison group(s) Base: Total respondents (n=788)

Dissatisfied Satisfied Not Applicable

Working relationship with colleagues 3%

Working relationship with supervisor 3%

Physical work environment 2%

Vacation time 7%

Job security 2%

Work/life balance 2%

Benefits 9%

Training and learning opportunities 6%

Wages or salary 1%

Staff morale 3% Communication from senior management 4%

Company processes and procedures as they impact you 5%

Stress level 1%

Opportunities for advancement 10%

Bonus 33%

41%

37%

27%

37%

34%

28%

28%

23%

18%

19%

20%

15%

14%

14%

16%

88%

78%

78%

76%

74%

72%

71%

66%

62%

60%

58%

57%

56%

54%

47%

3%

10%

7%

9%

8%

8%

12%

10%

14%

16%

21%

15%

17%

19%

28%

12%

22%

22%

24%

26%

28%

29%

34%

38%

40%

42%

43%

44%

46%

53%

Identify where your organization is succeeding and where it could use more work relative to benchmark. Attributes custom to your organization can be added.

Rating of Employer on Specific Drivers (Among Those For Whom Specific Applies)

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Base: Total respondents excluding not applicable (base varies for each attribute) A7. How would you rate your satisfaction or dissatisfaction with each of the following?

Very satisfied Somewhat satisfied Somewhat dissatisfied Very dissatisfied

Staff morale

Communication from senior management

Training and learning opportunities

Physical work environment

Company processes and procedures

Stress level

Working relationship with supervisor

Work/life balance

Opportunities for advancement

Wages or salary

Job security

Bonus

Vacation time

Working relationship with colleagues

Benefits

13.2%

9.7%

9.3%

9.1%

8.7%

8.3%

6.5%

5.9%

5.4%

5.3%

5.0%

4.0%

3.7%

3.3%

2.6%

Driver analysis using results for your organization can determine what is contributing most to satisfaction and what is not working as hard for you relative to benchmarks.

What Drives Overall Workplace Rating?

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Drivers Share of 100%

Base: Total respondents excluding not applicable (base varies for each attribute)

Reward/Penalty

Staff morale 108

Communication from senior management 83

Training and learning opportunities 100

Physical work environment 78

Company processes and procedures 87

Stress level 82

Working relationship with supervisor 131

Work/life balance 115

Opportunities for advancement 69

Wages or salary 100

Job security 74

Bonus 71

Vacation time 60

Working relationship with colleagues 132

Benefits 75

Base: Total respondents excluding not applicable (base varies for each attribute)

Penalty-Reward Analysis shows more specifically how these drivers can be helping or hurting.

Overall Rating of Employer

•  EXTRA CREDIT: Particularly important reward relative to penalty.

•  CAN HURT YOU: Particularly important penalty relatives to reward.

Penalty Reward

Sweet Spot

Danger Zone Eh

Derived Importance (Share of Importance)

Satis

fac

tion

(Ve

ry +

So

me

wha

t)

Less Important

More Important

More Satisfied

Less Satisfied

Brownie Points

Comparing satisfaction to importance allows you to identify where your organization should focus its resources.

Where to Focus Efforts

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Base: Total respondents excluding not applicable (base varies for each attribute)

Staff morale

Communication from senior management Company processes and procedures as they impact you

Working relationship with supervisor

Physical work environment

Wages or salary

Training and learning opportunities

Opportunities for advancement

Bonus

Stress level

Work/life balance

Working relationship with colleagues

Vacation time

Benefits

Job security

40%

50%

60%

70%

80%

90%

100%

0% 5% 10% 15%

I understand what is required of me

I am committed to the success of my organization

I understand how my role contributes to the company goals

I love the work that I do

I am encouraged to offer my opinions and ideas

I have enough freedom to make decisions

My skill set is used effectively

I am rewarded for doing a good job

58%

54%

52%

39%

36%

35%

36%

19%

94%

91%

90%

79%

79%

78%

77%

63%

Understand how your organization is doing relative to benchmarks on attitudes related to job “commitment.” Statements custom to your organization can be added.

Commitment Factors

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Base: Total respondents excluding not applicable (base varies for each attribute) A8. How much do you agree or disagree with the following statements about your current job and employer?

Agree Disagree

2%

1%

5%

6%

4%

6%

12%

6%

9%

10%

21%

21%

22%

21%

37%

Strongly agree Somewhat agree Somewhat disagree Strongly disagree

I am rewarded for doing a good job

I am encouraged to offer my opinions and ideas

My skill set is used effectively

I am committed to the success of my organization

I have enough freedom to make decisions

I love the work that I do

I understand how my role contributes to the company goals

I understand what is required of me

23.3%

15.7%

15.3%

13.6%

12.7%

10.8%

6.3%

2.2%

Driver analysis using results for your organization can determine what is contributing most to satisfaction and what is not working as hard for you relative to benchmarks.

How Commitment Factors Drive Overall Workplace Rating

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Share of Total Importance

Higher than comparison group(s) Higher than comparison group(s)

Higher than comparison group(s)

Higher than comparison group(s)

Base: Total respondents (n=788)

43%

43%

12%

2%

Future loyalty intentions can provide added insight beyond satisfaction.

Likely Future Loyalty

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Base: Total respondents (n=788) A11. Which of the following best describes what you think about your current job?

No plans to leave

Not actively looking, but would consider a new opportunity

Actively looking for a new job

Don’t know

May Leave 55%

42%

Subgroup analysis allows us to understand who is more likely to be loyal than others.

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45% 40%

$

< $40k

$40k to < $70k

$70k +

Personal Income

Decision Making

Work Status Gender

$

Job Type Years w/ Employer

33%

47%

48%

Professional

Management

Admin.

Worker

57% 40% 40%

37%

43%

Age

Manage Others

Who is More Likely to Stay Loyal

No plans to leave

43%

42%

43%

43% 43%

Higher than comparison group(s) Base: Total respondents (n=788)

<2

2 to 9

10+

42%

35%

54%

18-34

35-54

55+

35%

39%

60%

21%

21%

30%

20%

3%

2%

1%

1%

0%

1%

3%

10%

20%

22%

18%

10%

6%

5%

2%

4%

Combining overall rating and future loyalty metrics allows us to segment employees; it provides an understanding that the overall employer rating is only a starting point and will not guarantee employee loyalty.

Does Overall Workplace Rating Translate Into Likely Future Loyalty?

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Base: Total respondents (n=788) A9. How would you rate your organization overall as a place to work?

10 – Excellent

9

8

7

6

5

4

3

2

1 – Poor

Delighted 41%, 13%

Happy 50%, 41%

Not So Happy 9%, 46%

Base: Total respondents excluding don’t know (n=769)

18%

8%

22% 23%

4%

26%

Delighted and no plans to leave Delighted but may leave Happy and no plans to leave Happy but may leave Not so happy yet no plans to leave Not so happy and may leave

Overall Workplace Rating Status (Rating and Loyalty)

Average 8.1, 6.4

No plans to leave May leave

Simplified Understanding

RESPONDENT PROFILE

Employment Metrics

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Base: Total respondents (n=788) A5. When it comes to your role at work, would you say you are…?

Employment Status Years with Employer

A6. How many years have you worked for your current employer?

1 to less

than 5 28%

10 or more 35%

Part-time 19%

Full-time 81%

5 to less than 10 25%

Less than 1 12%

Professional

Administrative, coordination, finance, office or sales support

Other/middle/junior-level manager/supervisor

Other sales/service

Worker/labourer

Technical or paraprofessional

Tradesperson

Sales representative

Owner/President/CEO

C-suite/EVP/SVP/Partner/VP

22%

19%

13%

10%

9%

8%

6%

5%

2%

1%

Job Type/Level

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Base: Total respondents (n=788) A2. Which of the following best describes your job level or role?

Health care/social assistance Retail/trade

Educational services Professional/business services/consulting/agency

Public administration Finance/insurance

Scientific/technical services Transportation/warehousing

Arts/entertainment/recreation Construction

Manufacturing Accommodation/food services

Travel/tourism Agriculture, forestry, fishing

Wholesale trade Mining/quarrying/oil and gas extraction

Information/cultural industries Real estate/rental and leasing

Administrative and support, waste management and remediation Utilities

12% 10%

9% 8%

7% 6%

5% 5% 5% 5%

3% 3% 3% 3%

2% 2% 2% 2%

1% 1%

Industry

26

Base: Total respondents (n=788) A4. Which of the following best describes the industry you work in?

Employment Metrics

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Decision Making Role Employees Managed

None 18%

More than 10

16%

5 to 10 10%

1 to 5 22%

None 52%

Base: Total respondents (n=788) A5. When it comes to your role at work, would you say you are…? A3. How many people, if any, do you directly or indirectly manage?

Sole decision maker

15%

Key influencer

31% Partial

influencer 36%

Simplified Understanding

Catherine Dawson Senior Vice President & Chief Methodologist catherinedawson@insightswest.com (604) 620-7101