Connect and Engage Your People are Your Power

September 27, 2007

Prashant Srivastava Managing Partner India The Gallup Organization Gallup India Pvt. Ltd. Prashant_srivastava@gallup.com

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Why do Businesses exist?

To Drive Share Holder value Or Grow profits

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How Gallup will measure WhatCan Businesses drive growth?

Sound Strategy Translated into specific initiatives

PEOPLE

Business Processes

Technology
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Case Gallup will bank What1: A new agemeasureExcel in customer service

Strategy Provide 24x7 service from the comfort of home or office thru call centers Ground Reality: Most call center executives are transactional creating disengaged customers and ultimately losing them However, there are certain executives who go out of their way to help the customers What is the difference?
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Difference is will measure What GallupEngaged vs. Disengaged Employees

Engaged
Loyal and psychologically committed. More productive, higher retention.

Not Engaged
Productive, but they are not psychologically connected to their company. Miss more workdays, more likely to leave.

Actively Disengaged
Physically present, but psychologically absent. Unhappy and insist on sharing this unhappiness with others.

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is Engagement? What Gallup will measure

I cant wait to get back to work! My job is okay, but 15% more $$$ & Ill Oh No, its Monday again

Engaged Employee
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Not Engaged Actively Disengaged Employee Employee THE GALLUP ORGANIZATION 6

Engagement Myths and realities?

60

How did We arrive at Q12?

Number of Units

50 40 30 20 10 0

Worst

Best

Local performance variation - the scourge of organizations that aspire to high performance, is driven by engagement.
Myths and realities
Myth
I feel I am paid the right amount.

2.0

2.2

2.4

2.6

2.8

3.0

3.2

3.4

3.6

3.8

4.0

4.2

4.4

4.6

4.8

1,000s of different questions Over 1 million employees Identify the factors common to productive workplaces Identify the best questions to measure these factors

Reality
Low Rating High Rating

Outcome Linkage to: Outcome Linkage to: turnover/retention turnover/retention customer metrics customer metrics productivity and safety productivity and safety profitability profitability
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At work, I have the opportunity to do what I do best every day

More productive Less productive workgroups workgroups

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Managers play a critical role in talent management the key interface for execution of organization's policies
Employees join Company but leave Managers Leadership HR systems Employees perception is not based on others experience in company but only by their own experience with immediate team and manager

Managers
Employees Engagement with the work environment

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Engagement has significant impact on business outcomes

132 F500 Companies median net gain increase in engagement and sampling of impact
Annualized Net Gain

Reduction in Turnover

+26%

Customer Satisfaction/Loyalty

+12%

Absenteeism

-48%

Productivity Per Employee

+11%

Workgroup Profitability

+15% THE GALLUP ORGANIZATION

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Q12TM helps measure employee engagement at local workunit level

Engagement Hierarchy
Growth How can we grow?

Conditions that build Great Workplaces

Opportunities to learn and grow Progress in last six months I have a best friend at work Coworkers committed to quality Mission/purpose of company At work, my opinions seem to count Someone at work encourages my development Supervisor/someone at work cares Recognition last seven days Do what I do best every day

Teamwork Do I belong?

Management Support

What do I give?

Basic Needs

What do I get?

I have materials and equipment I need to do my work right I know what is expected of me at work

Source: Gallup research based on over 3 million in-depth interviews with employees and 200,000 interviews with managers

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Gallup philosophy is captured through The Gallup Path

To reliably influence these ...
REAL PROFIT INCREASE STOCK INCREASE Profitability Drives Market Value Sustainable Growth Drives Profitability SUSTAINABLE GROWTH Engaged Customers Drive Sustainable Growth

ENGAGED CUSTOMERS

ENGAGED EMPLOYEES

... these must be managed.

Engaged Employees Drive Customer Engagement ENTER HERE

The Right People in the Right Roles with the Right Managers Drive Employee Engagement IDENTIFY STRENGTHS

GREAT MANAGERS

THE RIGHT FIT

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11

Copyright Standards
This document contains proprietary research, copyrighted materials, and literary property of The Gallup Organization. It is for the guidance of your company only and is not to be copied, quoted, published, or divulged to others outside of your organization. Gallup is a trademark of The Gallup Organization, Princeton, NJ. All other trademarks are the property of their respective owners. This document is of great value to both your organization and The Gallup Organization. Accordingly, international and domestic laws and penalties guaranteeing patent, copyright, trademark, and trade secret protection protect the ideas, concepts, and recommendations related within this document. No changes may be made to this document without the express written permission of The Gallup Organization.

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