Switch the passion back on. Discover how to engage your employees and hire for compatibility.
Checkout this slide deck or watch the free online MasterClass delivered at Google's Innovation Campus ☛ http://welcome.openelevator.com/optin/
2. 2
• 1982 -1995 interest: make “lots and lots of money”
! school
! degree
! job
• 1996: cofounded LinkExchange
• 1998: sold to Microsoft for $265 million
• 1996 – 1998: LinkExchange culture changed
Tony Hsieh before happiness…
DISENGAGED
DISENGAGED
4. What drives engagement?
4
GALLUP
Employees are more likely to be engaged if their basic human needs are met.
Decades studying thousands of businesses, 27 millions employees, in over 160 countries
SOURCE: Gallup
5. openelevator.com
What are the basic human needs?
5
Maslow’s Hierarchy
of Needs
Contribution
Tony Robbins’ 6
Human Needs
Self-Actualization /
Fulfillment
Tony Hsieh’s
Happiness Framework
Vision / Meaning
ConnectionLove / Belonging Connectedness
Growth;
Significance
Achievement /
Esteem
Perceived Progress
Certainty
Variety
Safety Perceived Control
Connection
Contribution
& Purpose
Safety &
Certainty
Growth &
Significance
6. What is the hierarchy of needs?
6
Safety & Certainty
Growth & Significance
Connection
Contribution & Purpose
7. Which needs did work meet a long time ago?
7
-7000 -6000 -5000 -3000-4000 -2000 0-1000 1000 2000
Animal
domestication
and simple
agriculture
Organized
agriculture
Cities Dome-
stication
of horses
Pyramids Bronze
Age in
China
Athenian
Democracy
Classic
Maya
Printing
press
Industria-
lization
UNORGANIZED WORK ORGANIZED / SKILLED WORK
8. What changed with the industrial revolution?
8
FIRST
Mechanical production,
railroads, and steam
power
SECOND
Mass production, electrical
power, and the advent of the
assembly line
FOURTH
Artificial intelligence,
big data, robotics, and more
to come
THIRD
Automated production,
electronics, and
computers
1784 1969 20171870
ORGANIZED UNSKILLED WORK AND NOW?
SOURCE: World Economic Forum
10. Why is there increasing demand on engagement?
10SOURCE: World Economic Forum
FOURTH
Artificial intelligence,
big data, robotics, and more
to come
NOW
PARADIGM SHIFT
NEEDED!
1. TO ADDRESS CHANGES IN THE WORKPLACE
• Types of jobs available
• Effective management style
• Focus on individual employee
2. TO ADDRESS CHANGES IN OUR CULTURE!
INNOVATION, CREATIVITY, CUSTOMER SERVICE
11. What is our culture demanding from the workplace?
11
“The mass of men lead lives
of quiet desperation.”
Henry David Thoreau
“…it is very difficult to have a
meaningful life without
meaningful work.”
Jim Collins
Everywhere talk about contribution,
purpose, connection…
TED Talks, social media…
Corporate heroes such as
Bill Gates (passion for people)
Elon Musk (passion about our planet)
Nearly 200
years ago NOW
Quarter of a
century ago
13. Has hiring evolved since the industrial revolution?
13
ASSESSING THE OLD MODEL
CONTENT – unchanged, still includes…
• JOB DESCRIPTION: What we need done …
• REQUIREMENTS: What you should be able to do …
• PAY: What we offer …
• APPLY: How you can contact us …
ASSESSMENT – unchanged, focused on technical factors…
• SKILLS
• EXPERIENCES
• SCHOOLS
REACH – grown massively, and in a targeted way!
15. 15
• Purpose & Values Driven: deliver WOW, pursue growth,
be a little weird
• Managed Culture: values the foundation of every action
• Performance:
! on Fortune’s Best Places to Work list
! grown to largest online shoe store
! sold for $1.2 billion in 2009
…impact of focusing on purpose!
One of
Fortune
Magazine’s
25 Best
Companies
to Work for
17. openelevator.com
What is the state of engagement across the globe?
17SOURCE: Gallup
Only 15% engaged
employees around
the world!
18. openelevator.com
What does engagement look like?
18
Studied 180 Teams to Learn
The Top Traits Successful
Teams Share
3. Meaning – individuals feel that the work has
personal significance
2. Structure and Clarity – teams have clear
goals and roles
1. Dependability – individuals get things done on
time and meet expectations
4. Impact – groups believe their work has purpose
and positively impacts the greater good
5. Psychological Safety – individuals feel safe to
take risks and voice opinions
Connection
Contribution
& Purpose
Growth &
Significance
Safety &
Certainty
19. openelevator.com
What is the impact and result of engagement?
19SOURCE: Gallup
Engagement Results
• 2x lower employee turnover
• 2x higher customer loyalty
• 3x higher growth
• 30% higher income
• 20% higher profitability
• 147% higher earnings per share
Engagement Impacts
Customer
Service
Profitability
Innovation
Employee
Turnover
Wellbeing
Sales Growth
20. openelevator.com
How are we hiring for engagement in the digital age?
20
High turnover
Double-digit
disengagement
High burnout
rate
High level of
dissatisfaction
Low productivity
No raving fans
Poor customer
service
Stalled growth
DISASTROUS BUSINESS ENVIRONMENTMEDIOCRE RECRUITMENT METHODS
• Search global talent pool
Time Money Certainty
• Get friends & family referrals
• Choose the most appealing
resume & interview
21. openelevator.com
How are we “addressing” needs when hiring?
21
ConnectionContribution
& Purpose
Safety &
Certainty
Growth &
Significance
Focus on perks Decorate walls with statements Call all jobs “opportunities” Assess the candidate!
22. Is there a number 1 reason for disengagement?
22
Unclear
Expectations
Misalignment of
Stated Core Values
Dissatisfaction
with Manager
Lack of
Opportunity
Safety &
Certainty
Contribution
& Purpose
Growth &
Significance
Connection
NUMBER 1 REASON
- People are disengaged
- People leave their jobs
- Costs the organization
23. 23
• No managers, no hierarchy of people, hierarchy of roles
• 29% staff turnover in the 1st year
• Fell off Fortune’s 25 best after 8 consecutive years on it
• Medium: “the system had begun to exert a small but
persistent tax on both our effectiveness, and our sense of
connection to each other.”
• Gallup: “Engagement plummets to just 2% among
teams with managers who ignore their employees”
…impact of self-management?
25. openelevator.com
What should we focus on?
25
Include values in job ads Use tools to assess
compatibility
Connection
Contribution &
Purpose
Growth &
Significance
Define growth path
Values are designed to
attract or repel
Growth sets the stage
for both parties to think
long-term
Connection is necessary
for Safety and the
foundation for Meaning
Clarify expectations
Clarity is the basis of
meeting expectations
Safety &
Certainty
28. openelevator.com
2. Establish a framework for assessing values
28
Safety &
Certainty
Growth &
Significance
Connection
Contribution
& Purpose
Safety &
Certainty
Growth &
Significance
Connection Contribution
& Purpose
YOUR
ENVIRONMENT
EMPLOYEE VALUES
Good
relationship with
supervisor
Paid training /
tuition
reimbursement
Reasonable job
security
Meaningfulness
of job
Top Employee Values
• Reasonable job security
• Good relationship with supervisor
• Management recognition of employee
performance
• Paid training / tuition reimbursement
• Meaningfulness of job
• Career advancement opportunities
• Competitive benefits
• Flexibility to balance life and work
• Ample opportunity to use skills/abilities
• Commitment to corporate social
responsibility
30. openelevator.com
What does it take to implement a new model?
30
COMPATIBILITY
Select assessment method
VALUES
Define set of values
SETUP
DATABASE
Include these parameters
e.g.
• Myers Briggs
• DISC
• Five Factor Model
e.g.
• Management recognition
• Tuition reimbursement
• Social responsibility
Applicant Data
Set
Manager Data
Match
Ranking
Match
Ranking
Manager Data
Applicant Data
Set
QUESTIONS
Define position-specific
e.g.
• Skills-related
• Experience-related
• Motivation-related
Full Data
Set
Applicant
Answer Set
SORT
&
FILTER
31. openelevator.com
What is OpenElevator about?
31
• Why did we create the platform?
• How does it work?
• How can it help you?
! increase engagement to improve customer service
! drive growth by cultivating an atmosphere of innovation and creativity
! deliver a sense of belonging, fulfillment and prosperity for your employees