top hr processes ripe for a social enterprise
DESCRIPTION
Todd Horton from KangoGift shares a few HR best practices for organizations thinking about embracing social HR tools. Presentation given as part of Monster's thought leadership webinar series.TRANSCRIPT
Top 5 HR Processes Ripe
for the Social Enterprise
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Presented by
Todd Horton, Founder/CEO
KangoGift
November 6, 2013
Our Agenda
What is a social enterprise?
Current state of research on employee sentiment
Top 5 processes ripe for a social enterprise
Common metrics for success
Q&A
2
3
“The Instant Workplace”
Where employees expect immediate access to
ideas, people, and resources.
4
Companies Will Start to Embrace Social Tools to Facilitate Information
5%
69%
Companies
Individuals
Source: McKinsey. Ways companies use social media for recognition and HR practices.
Pew data for individual.
Social Media Usage
It’s only a matter of time before companies catch up
5
A social enterprise is one where employees have the
resources necessary to collaborate and advance the
mission of their organization.
6
Today we are not only talking about technology and tools.
We are discussing the organizational mindset of enabling
employees to work socially.
7
Social Impacts All Areas of HR
Talent Attraction Represent your corporate brand as
an employer of choice.
Development HR leaders have new tools to tap
into the wisdom of the entire
workforce for L&D.
On-boarding The ways in which employees
enter a company are changing.
Engagement Managers and employees have new
ways to be more timely and visible.
1
2
3
4
Current Research
and Trends
9
We do all those old tricks electronically now.
What the Workplace Values
Global
Mindset
“Instant-ness”
Cultural IQ
Country specific workers. Cross border connectedness.
Why am I here?
Wait for feedback and information. Access to information and people.
Understand your surroundings. Understand the needs and desires
of people around you.
Pay and stability.
Old New
Personal and social impact.
A Few Big Trends
Converting traditional HR processes from infrequent tasks to on-
going conversations.
Capturing and reporting on timely data to create a smarter
workforce.
Tapping into a spirit of “getting things done” with simple tools.
Creating and delivering HR programs that are customized to each
employee’s needs.
11
12
The Workplace in 2020
46% Millennials (born 1977 to 1994) will make
up almost half of the US workforce.
Number of global internet users.
Global trade will increase 2.5x from today. $41T
5B
70% Employees don’t feel like they are fully engaged in their work according to Gallup. Companies need to address this cultural misalignment.
New Motivational Theories for a Global Worker
Focused on understanding employee
motivations and desires.
Many companies now design jobs to provide
employees with opportunities to make
choices, develop skills, do work that matters,
and strengthen interpersonal relationships.
Social tools target the opportunity to
strengthen relationships at work and gain
insight into employee desire.
“Classic” Motivational Theory New Motivational Theory
• Largely based on
financial incentives
• Pay
• Stock
• Cash Bonus
Money is no longer the only driver in retention and employee engagement.
A McKinsey Study Found That Non-Cash Motivators Are
More Effective Than Cash Motivators
Performance-Based Cash Bonuses
Increase in Base Pay
Stock or Stock Options
Recognition from Immediate Manager
Attention From Leaders
Opportunities to Lead Projects or
Task Forces
20%
30%
40%
50%
60%
70%
80%
20% 30% 40% 50% 60% 70% 80%
Financial vs. Non-Financial Incentives—Effectiveness vs. Use , 2009
“Nonfinancial motivators play critical roles in making employees feel that
their companies value them, take their well-being seriously, and strive to
create opportunities for career growth.”
Note: Financial Incentives are marked with a circle; non-financial incentives are market with a
diamond. Source: McKinsey Quarterly, “Motivating people: Getting Beyond Money,” November
2009; Based on McKinsey survey of 1,047 executives, managers, and employees.
Eff
ectiveness
(% o
f R
espondents
That V
iew
Motivato
r as
Eff
ective)
Use (% of Respondents That Use Motivator)
Impact on Operational Performance of Organizations Providing What Employees Want
Source: Respect by Jack Wiley and Brenda Kowske 16
74% 78%
81% 79%
56%
45%
50% 49% 51%
30%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
POI Our Customers are verysatisfied
We produce higher qualityproducts/services than our
competitors
We compete well in ourindustry
Our performance hasimproved in past 12 months
Employees whose most important want is fulfilled Employees whose most important want is unfulfilled
Impact of Employee Recognition on Views of Managerial Performance
Source: Respect by Jack Wiley and Brenda Kowske 17
81%
76% 75%
80%
65%
30%
26% 29%
34%
16%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Overall Performance People Management Task Management Keeps Commitments Outstanding Leader
Satisfied with Recognition Dissatisfied with Recognition
Truthful Communication Employees Want
Source: Respect by Jack Wiley and Brenda Kowske 18
22%
40%
38%
Communication in General Communication about Performance Honest Communication/Information
Top Five Processes Ripe
for a Social Enterprise
Performance Reviews
Transitioning Reviews from Point in Time to On-Going Conversations
Relevancy
Impact
Insight
Shift from a once year compliance
task to active management.
More timely assessment of where an
employee stands.
Broader set of data points an
employee can draw from. Employees are better able to
manager their careers.
Employees better understand
where they fit. Direct benefits to engagement and
discretionary effort.
How Benefit
Employee Feedback
23
Capturing More Timely Employee Feedback
Peer feedback
Manager
feedback
Cross-
functional
Casual email or chat. HR provides a structured way to
capture and deliver feedback.
Ad-hoc, event driven. Managers can look at peer
feedback employee has received
and coach.
Rare, sporadic. Social companies facilitate
cross functional feedback.
Old Way New Way
Recognition and Awards
25
Organizations Seek to Deliver Informal and Timely Recognition in a Measurable Way.
Social Recognition
Ad-hoc Awards (Lunch or coffee)
Verbal Praise (Good job, pat on the back)
High
Low
Delayed Immediate
Sta
nd
ard
ized
Time Diminishes Impact
Annual Reviews (Standard performance review)
26
Attributes of a Social Recognition Program Timely We live in an instant world.
Immediate feedback is the most
engaging.
Shared Giving visibility internally or
externally amplifies impact and
program participation.
Tangible A real reward (even micro)
makes the recognition more
impactful.
Remembered Social recognition creates a living
performance review and provides
managers with detailed statements.
1
2
3
4
Keep it simple and
people will embrace
Training
28
Using the Wisdom of the Workforce for Training
Using video or an internal “YouTube”
Enabling employees to share their expertise
Peer testing and skills assessment
Timely employee surveys
Knowledge Management
30
Centralizing Institutional Knowledge
Internal FAQ pages – Quora for the enterprise.
Providing employees pages everyone can access to
tap into expertise.
Support collaboration through online communities,
file repositories, and internal messaging.
31
The theme is that many of these tasks can be done from common
platforms (including mobile) rather than disparate tools.
In other words, tools designed for the way your employees work often
see the most success.
32
Top Worries and Benefits When Talking about Social
‣ We want a tool that
appeals to all employees.
‣ We want to be a great
place to work and
improve culture.
‣ If we can track it, we can
map talent.
‣ We want something cost
effective.
Benefits
Loss of control
Does it work?
Not sure where to start
Is it really measurable?
Who else does this?
Case Studies
34
Real-World Examples
Knowledge Management
Global manufacturing company
Social Recognition
Global automotive company
Service Awards
Financial company
Learning and Development
Regional healthcare company
Metrics for Success
36
Common Questions Companies Want to Answer
Performance
Enablement
Engagement
How do we create environments that attract the
best employees and ensure their success?
How do we provide our workforce tools to advance our
goals and help them succeed?
How do we define success? Profit, impact, reach?
37
Choose the Metric Suitable to Your Goals
Retention
Satisfaction
Engagement
Operational Gains
Profit per employee
Time and Cost Savings
Budget Optimization
Compensation Alignment
38
Dashboards
Newer social tools help managers understand the contributions of their employees in one snapshot.
Employee Satisfaction Is Important and Necessary for Company Success
Professor Alex Edmans (Wharton School)
examined the stock returns of companies with
high employee satisfaction and compared it to
the broader market.
His research found that firms cited as good
places to work earn returns that are more than
double those of the overall market.
Furthermore Edmans has recently updated the
study and found that results still hold―returns
were 3.5% per year higher for the top 100 best
companies to work for than those of their peers. 0 0
0 0
Equity Returns – Top 100 Best
Companies to Work For vs. the Overall
Market, 1998-2005
“The results are consistent with human relations theories which argue that
employee satisfaction causes stronger corporate performance through improved
recruitment, retention and motivation.”
Sources Knowledge@Wharton, “How Investing in Intangibles – Like Employee
Satisfaction –Translates into Financial Returns, January 9, 2008; Professor Alex Edmans,
“Does the Stock Market Fully Value Intangibles? Employee Satisfaction and Equity
Prices,” 2011.
40
Social Tools Coupled With Executive Support Can Dramatically Increase Program Participation
Equipping employees at all levels of the organization can impact the rate of program success.
Parting Thoughts
42
Create Your Own Social HR Roadmap
Step 1 2 3 4 Open it up
Requirements What are your employee
“wants”? What behaviors do
you want to drive.
What assets do you have Understand what your org already has
in place and untapped. Cultural IQ.
Benchmark Understand how social
can be a differentiator for
your org.
Launch and learn Measure outcomes.
Toolkit Selection Identify the resources necessary for
success. Start small.
Thank You
Todd Horton
617-861-8335
http://www.linkedin.com/in/toddhorton
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