Confidentional

Better Bottom Line Results Through Employee Engagement

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The People Profit Connection The People Profit Connection

Did you know…..

• 88% of engaged employees believe they can impact the bottom line but only 38% of disengage employee feel the same way? (Tower Watson)

• Nearly half (49%) of employees surveyed in are either looking for a new job plan to this year(Deloitte)

• In world-class organizations, the ratio of engaged to actively disengaged employees is 9.57 to 1 but in average organizations, the ratio of engaged to actively disengaged employees is 1.83 to 1 (Gallup)

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The Engaged Organization The Engaged Organization

Employees

ManagersExecutives

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EmployeesEmployees

Employees align what they want — and what the business needs— and then take action to achieve both

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Ownership

Clarity

Action

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ManagersManagers

Managers understand each employees talents and skills and match to the businesses objectives — while at the same time creating personal, trusting relationships

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Coaching

Relationships

Dialague

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ExecutivesExecutives

Executives demonstrate consistency in words and actions, communicate a lot, and align business practices and behaviors throughout the organization to drive results and engagement.

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Trust

Communication

Culture

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Bob Kelleher’s- “Louder Than Words” Bob Kelleher’s- “Louder Than Words”

1. Link your engagement efforts to high performance – not employee satisfaction

2. Engagement starts at the top3. Engage First Line Leaders4. Focus on Communication5. Individualize your engagement6. Create a motivational culture7. Create feedback mechanisms8. Reinforce and reward the right behaviors 9. Track and communicate progress10. Hire and promote the right behaviors and traits for your

culture

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Key Performance IndicatorsKey Performance Indicators

Customer loyalty/engagement ProfitabilityProductivityTurnoverSafety incidents/LawsuitsAbsenteeismShrinkageQuality (defects)

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Measuring ProductivityMeasuring Productivity

• Average Costs of an Employee– Salary– Benefits

• Percentage of Revenue by Employee

• Employment Costs as a % of Operating Expenses

• % of time lost to absences

• Average overtime per employee

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Employee Turnover/ RetentionEmployee Turnover/ Retention

• Total replacement hires per year

• Total cost to hire

• % of new hires achieving 6 months

• % of new hires achieving 12 months

• % of new hires achieving satisfactory appraisals

• Cost of training per employee

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Workplace ComplianceWorkplace Compliance

• Total number of complaints

• Total number of lawsuits/audits– cost of defense as a % of revenue

• Lost time to accidents

• Training– Measure impact of training year to year against

lawsuits and complaints

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Measuring Engagement Gallup Q12Measuring Engagement Gallup Q12

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, seem 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 at work talked to you about your

progress? 12. In the last year, have you had opportunities at work to learn and grow?

Reprinted with permission. Copyright 1992-1999 The Gallup Organization, Princeton, NJ. All rights reserved. Gallup and Q12 are registered trademarks of The Gallup Organization.

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Measuring Engagement - My WayMeasuring Engagement - My Way

1. Do you know what is expected of you at work? 2. Are you engaged in what is expected of you at work?3. Do you have the materials and equipment you need to do your work right? 4. At work, do you have the opportunity to do what you do best every day? 5. Do you receive recognition or praise for doing good work on a daily basis?6. Does your supervisor or another manager care about you as a person? 7. Does your supervisor or another mentor encourage your development? 8. At work, do your opinions count? 9. Does the mission/purpose of your company make you feel your job is

important? 10. Are your associates (fellow employees) committed to doing quality work? 11. Do you experience strong supportive relationships at work? 12. In the last 30 days, has someone at work talked to you about your progress? 13. Do you have daily opportunities at work to learn and grow? 14. Would you recommend this company as a place to work to your friends and

family?

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ResourcesResources

• Louder Than Words: Ten Practical Employee Engagement Steps That Drive Results by Bob Kelleher

• http://employeeengagement.com/• http://

www.gallup.com/consulting/52/employee-engagement.aspx

• First Break All the Rules, What Great Managers Do Differently (http://gmj.gallup.com/content/1144/first-break-all-rules-book-center.aspx)

• Energize Your Workplace, Jane Dutton http://www.amazon.com/Energize-Your-Workplace-High-Quality-Connections/dp/0787956228

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Questions and AnswersQuestions and Answers

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QUESTIONS?

Contact InformationContact Information

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Kathryn Carlson

kcarlson@kpaonline.com

303-228-8765