Employee Engagement

Sample Results

Defining Employee Engagement

Employee Engagement is a critical measure of
person-organization alignment
Engaged employees share a common set of
attitudes and beliefs which, taken together,
reflect a vital aspect of organizational health
- Pride and Commitment
- Job Satisfaction
- Motivation
- Advocacy

Engagement Impact - Examples

Why is it better to have employees with
HIGH vs. LOW levels of engagement?

An estimated 19% of the US workforce is disengaged,

costing the US economy upwards of $300 Billion in lost
productivity*
Fortune's 100 Best Companies to Work For have had a 10.6%
annual return since 1998, while companies listed on the S&P
500 have had only a 5.7% return in that period *
*Information from Izzo and Withers (2000)

Engagement Impact Continued

Highly engaged companies are*:

29% higher in revenue

50% more likely to have above-average customer
loyalty
44% more likely to turn above-average profits

Highly engaged workgroups are**:

44% higher retention
56% higher in customer loyalty
50% more productive
33% more profitable
*Information from Izzo and Withers (2000)
**Information form The Right Group and Manpower (2002)

Importance of Engagement
It is essential that every person understands and
commits to your business strategyas stated in
your brand, vision, mission or valuesfor your
organization to be successful in the marketplace
Employees must know specifically what they
can do on their individual jobs each and every
day to truly make a measurable difference in
bottom line results
Engagement must be based on strong
diagnostics and executed with a focused,
creative strategy designed to prove the impact
on business results

Results

Survey Participation

500 Surveyed 475 Responded = 95% response rate

Margin of Error = +/- 1.1% @ 95% confidence

Surveys were administered on-line and processed by

Right Management

Rating Scale:

Strongly
Agree

Agree

Neutral

Disagree

Strongly
Disagree

NA
Not
Applicable

Sample Characteristics
n

VPs & Above

Team Leader/Director
Team Member

8
42
413
463

1.7%
9.1%
89.2%
100.0%

Claims Services
Account Services
Information Technology
Legal
Finance
Underwriting & Product Services
HR & Organizational Effectiveness

163
110
40
40
36
20
12
421

38.7%
26.1%
9.5%
9.5%
8.6%
4.8%
2.9%
100.0%

Less than 1 year

1 to up to 3 years
3 to up to 10 years
More than 10 years

45
54
146
219
464

9.7%
11.6%
31.5%
47.2%
100.0%

380
39
35
454

83.7%
8.6%
7.7%
100.0%

Job Level

Division

Tenure

Location
Phoenix home office
Tucson field office
Other field office

Interpretation Guidelines
% Favorable
60 or more
All Systems Go!

50-59
Warning

49 or less
Red Alert!

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Theme Level Analysis

Favorable

Unfavorable

66

Culture

Work Environment

60

My Leader

60

Learning & Development

59

Reward & Recognition

50

Communication

50

Executive Leadership

49

0%

Neutral

25%

17
18
21
19

17
22
19
21
23

26

26

24

17

34
50%

Reliability Items

75%

.85

.81

.92

11

.78

.82

.86

.91

100%

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Item Level Analysis: Culture (8)

Employees feel encouraged to own their work, support one another and suggest innovative
ideas; however, they dont feel comfortable speaking up and expressing differences of
opinion is not encouraged.

Favorable

Item

Neutral

15. I am encouraged to take ownership of my

work.

Unfavorable

87

Mean

9 4 469

4.20

11. I am encouraged to share learnings and best

practices.

80

11 9 470

3.96

12. This organization takes good care of its

customers.

78

14 8 472

3.93

11 471

3.86

18. I have opportunities to suggest innovative

ideas at work.
14. Everyone is treated equally here regardless of
their race, ethnic origin, gender, age, sexual
orientation, etc.

72
67
63

17. Teamwork is strong in my team.

16. This organization encourages employees to
openly express differences of opinion.
13. It is safe to speak up here without fear of
retribution.

0%

17

45
35
25%

16

17

18

19
29

26
25
50%

39
75%

471

3.70

472

3.64

472

3.21

472

2.90

100%

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Qualitative
Analyses

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One Improvement (N= 379)

Employees recommended improvements to their benefits (e.g., higher
salaries, telecommuting opportunities, additional time off)
-

Overall compensation, either through salary increases or significantly increased

vacation time

More opportunities for telecommuting, as long as job duties are covered.

Wages paid more fairly on the job and responsibilities, instead of by the
broadband

TYPE goals - to change or remove this process. Even though it has been
addressed to let team members know if they are not participating, not all team
members participate, yet receive tip goal payments

Employees would like to have development plans and see improvements

in the performance evaluation system
-

Simplified performance evaluation system, and a improved HRIS

Change how employees are reviewed. The 360 reviews are useless, and the
milestone settings are too unreachable which discourages more than it
encourages.

Hold ALL employees accountable for their work performances/attendance

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What Not to Change (N= 206)

Employees like the benefits they receive (e.g., medical,
retirement plans, vacation, etc.)
-

I very, very, very much appreciate the benefits package provided to us.
It is unheard of in the business community and puts my mind at ease.

No more additional costs associated with our health benefits.

Flex time or working from home.

Employees appreciate the organizations investment in

employee development
-

The opportunity for education offered to all of us. This benefit is better
than any other company and this organization encourages everyone to
take advantage of this.

I would not want the education benefits to change, I love that this
organization supports our personal and professional growth.

The opportunities offered to move or learn about different aspects of the

company or outside the company.

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Employee
Engagement

16

Defining Employee Engagement

Employee Engagement is a critical measure of
person-organization alignment
Engaged employees share a common set of
attitudes and beliefs which, taken together,
reflect a vital aspect of organizational health
- Pride
- Job Satisfaction
- Motivation
- Advocacy

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Rights Model of Employee Engagement

Employee Engagement

Business Outcomes
Performance & Profitability

Motivation

Advocacy

Satisfaction

Sales & Employee Attraction

Customer Service
Productivity

Pride

Turnover

TM

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Employee Engagement Level

High

% Engaged

60%

Medium

30%

48.5% Engaged

Low

51.5%
Not Engaged

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Employee Engagement Model

Right TM
Benchmark*

2005 Survey
- 14%
- 11%
- 1%

60%
81% products/services
74% employer

Pride

74%

Advocacy

92%
75%

- 12%

74%

Motivation

86%

- 14%

75%

Satisfaction

89%

- 11%

49%

Employee Engagement

60%
*Best-in-Class Companies

Reliability = .86

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Key Outcomes

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Key Outcome Measures

Favorable

Item
72. Taking everything
into account, this
organization is a great
place to work.

73. This organization

attracts the best people.

0%

Neutral

Unfavorable

75

32

17

45

25%

50%

24

75%

Mean

7 469

3.97

468

3.11

100%

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Retention
Which statement best describes your
current plans?

% Agree

I am leaving this organization as soon as I can

2%

I plan on leaving in the next 6 months

6%

I plan on being here another year but I am not sure after that

11%

I plan on being here for the next 2 years

26%

I have no plans whatsoever to leave

55%
Total

100%

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Driver Analyses

24

Model of Organization Performance

Drivers

Impact

Engagement

Impact Key Outcomes

Item 1

?
Motivation

Item 2

Pride

Advocacy

Satisfaction

?
Item 3

?
Outcomes

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Key Driver Analysis Engagement

Driver

Impact

REWARD & RECOGNITION

.24

COMMUNICATION

.17

MY LEADER
CULTURE

.15

Outcome

Employee
Engagement*
2

R = 36%

.15

*Composite measure of Advocacy, Pride, Motivation, and Satisfaction.

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Key Driver Analysis Employee Attraction

Drivers

Engagement

Impact

Key Outcome

Reward & Recognition

Communication

Motivation
Pride

My Leader

Employer
Advocacy

.13
Employee
Attraction*

Satisfaction

Culture

R = 39%

44. This organization promotes employees who

deserve it. (Reward & Recognition, 25%)

.25

60. The Executive Team works well together.

(Executive Leaders, 28%)

.18

2. I feel well informed about what is going on.

(Communication, 45%)

.17

43. This organization rewards its employees

well compared to its competitors. (R&R, 35%)

.15

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Segmentation
Analysis

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Engagement Great Place to Work Matrix

Great Place to Work

High

Benchwarmers
15%

Stars
55%

Disconnected

Free Agents
15%

15%

Low

Engaged

High

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Demographic Segmentation
Stars

Bench

Free-Agents

Saboteurs

Level

Tenure

warmers

VPs & Above (8)

Team Leader/Director (42)
Team Member (413)

Less than 1 year

1-3 years
3-10 years
More than 10 years
Division
HR
IT
Legal
Claims Services
Finance
Account Services
Underwriting

100%
76%
44%

0%
10%
30%

0%
4%
1%

0%
10%
25%

49%
37%
48%
49%

29%
28%
31%
26%

0%
3%
2%
1%

22%
32%
19%
24%

75%
58%
58%
48%
47%
46%
35%

17%
27%
25%
34%
22%
23%
40%

0%
0%
0%
1%
6%
1%
0%

8%
15%
18%
17%
25%
30%
25%

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Key Differences
Analyses

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Demographic Differences
Key Variables

Demographic Variables
Level

Location

My Leader

Culture

Work Environment

Executive Leadership

Recognition & Rewards

Communications

Learning & Development

Engagement

Retention
Great Place to Work
Employee Attraction

Division

Tenure

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Demographic Differences - Level

The ratio of engaged to disengaged employees is
best among Team Leaders and VPs & Above
engaged
100%
80%
60%

disengaged
100%

Ratio

81%
.8 to 1

4 to 1

8 to 1

55%
45%

49%51%

40%
19%

20%
0%

0%
Team Member
N=413

Director
N=42

VPs & Above

N=8

Overall

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Demographic Differences - Level

Team Members are significantly less positive about this organization as
a Great Place to Work compared to VPs & Above.
Great Place to Work
4.8

5.0
4.0

3.9

4.3

3.0
2.0
1.0
0.0

Team Member
N=413

Director
N=42

VPs & Above

N=8

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Summary &
Implications

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Summary and Implications

Strengths:
Within team effectiveness (role clarity, support, etc.)
55% Stars overall
Team Leaders and VPs are highly engaged

Opportunity Areas:

Cross functional effectiveness

Communication and perception of leaders
25% Benchwarmers overall
Team Member engagement scores are moderate

Level of Engagement: Medium, 49%

Drivers of Engagement:

Reward & Recognition

Communication
My Leader
Culture

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Next Steps

37

Next Steps

Executive

EMPLOYEE
OPINION
SURVEY DATA

Leadership
Presentation of
Results
Managers

Survey Data

Tactical

Action Planning
Sessions

Employees

Strategic

Employee Survey
Communications

Feedback

38

Percentage

Analysis of Written Comments