International Conference “ АDDRESSING QUALITY OF WORK IN EUROPE”, 18-19 October 2012

Employees` engagement – effects on business performance and main drivers

Gergana Gancheva, PhD Candidate, SU”St.Kliment Ohridski”,g_gancheva04@yahoo.com

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Contents

1. Main Research Questions and Research Database – details

2. Employee Engagement (EE) concept

2.1. Theoretical background

2.2. Employee engagement VS Other Constructs

2.3. AONHewitt definition of EE

3.EE – impact on company performance

4.EE and quality of work

5.Results and trends for Bulgaria

Conclusion

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1. Main Research Questions & Research database

3

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2. Research Questions and database

Does and How EE reflects on the overall company performance and other business metrics?

Which factors from the working environment have impact on employee engagement?

How organizations in Bulgaria improve the level of engagement of their employees?

What are the drivers that influence employee performance in the recent years in Bulgaria?

360 Bulgarian companies, 13 industries61 273 employee opinions gathered

587 top managers4 consecutive years - 2008-2012

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The Measurement Scale

Agreeing respondents

Positive hesitants

Negative hesitants

Disagreeing respondents

Completely satisfied

Satisfied Rather satisfiedRather not satisfied

Not satisfiedNot satisfied at

all

Totally agree Agree Rather agree Rather not agree Disagree Totally disagree

6 5 4 3 2 1

Opinions were measured on a scale of 6 (1= I absolutely do not agree, 6= I totally agree), so as to force even those to voice an opinion for whom it is harder to explain/voice what they think.

Section: About the Study

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2. Employee Engagement (EE) concept

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2.1. Theoretical background

1. Academics – Kahn, Macey, Schaufeli

2. Business/Management perspective

3. Employees perspective

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2.2. EE VS Other Constructs

Organisational Citizenship

Behaviour(OCB)

Organisational commitment

Involvement Dedication

Employee satisfactionEngagementEmployee

motivation

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2.3. AonHewitt definition of Engagement(1)

SATISFACTION

Do people like working for this company?

COMMITMENT

Do employees want to contribute to the success of the company?

AONHewitt ENGAGEMENT

Employees do want to contribute to the success of the company, and they really act upon that?

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Engagement is a behavior…

Engagement is the state of emotional and intellectual involvement

that motivates employees to do their best work.

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Three key behaviors cumulatively indicate strong Engagement:

Employees consistently speak positively about the organization to co-workers, potential employees and most critically, customers (current and potential)

Employees have an intense desire to be a member of the organization

Employees exert extra effort and engage in work that contributes to business success

SAY STAY STRIVE

2.3. AonHewitt definition of Engagement(cont.)

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3. EE – impact on company performance

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3.Does Engagement Really Drive Business Results?

We have identified strong and consistent links between engagement and performance measures:

– Productivity and retention

– Employee commitment, in-role and extra-role behavior

– Customer satisfaction and loyalty

– Performance

– Quality

– General financial results - as profitability, revenue growth, earnings per share

Multiple lines of evidence demonstrate and support this link:

– Cross-Company and Employee Engagement and Motivation research

– Academic research

– Case studies

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3.Does Engagement Really Drive Business Results? (cont.)

% of organisations

26%

28%

21%

26%

30%

9%

18%

Productivity

Employee turnover

Absenteeism

Retention of key talent

180° / 360° manager feedback

Financial indicators

Customer satisfaction or loyalty

41%

Source: Aon Hewitt Future of Engagement Study May 2010

What links have you established to employee engagement?

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4. EE – impact on quality of work

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4.EE and quality of work

…understand the organization’s objectives and their role

…passionate and enthusiastic about their work

…have a strong desire to be part of the organization

…motivated to go above and beyond in their jobs

…have significantly better outcomes

Engaged employeesEngaged employees

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4.EE and quality of work(cont.)

Employee Value Proposition

Total Reward

Senior Leadership

1.Organization is considered a best place to work2.Organization delivers on promises to employees3.Support learning and development of employees

1.Benefit plan meets needs well2.Recognition for accomplishments3.Future career opportunities4.Paid fairly

Strong Senior Leaders

Enabling Performance

1.Tools and resources to support productivity

2.Work processes support productivity

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5. Managing Engagement among Bulgarian employees

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Bulgarian employees - 2012

High Satisfaction

Physical Work environment

Colleagues and the support they get from them

Quality of the work equipment

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Bulgarian employees- 2012

Low Satisfaction

Career opportunities

Pay and benefits

Senior Leadership

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Thank you!

218/15/2007