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Turbocharging Employee Engagement

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Turbocharging Employee Engagement

  1. 1. turbocharging employee engagement A Towers Watson Case Study
  2. 2. a successful business is like a powerful sports car
  3. 3. it moves quickly
  4. 4. turns nimbly
  5. 5. and handles curves without losing momentum
  6. 6. but sometimes a business, like a car, will hit a speed bump
  7. 7. go into a ditch
  8. 8. or run out of gas E FUEL F
  9. 9. regardless of the driving conditions, both perform best when they have strong engines
  10. 10. for a Ferrari, the power comes from a 500 horsepower, V12 engine -6
  11. 11. in a corporation, the engine is employee engagement
  12. 12. employee engagement refers to the broad & trusting connections people have with an organization
  13. 13. an engaged workforce gives an organization the power it needs to climb the hill to prosperity
  14. 14. and to make that climb FASTER than the competition
  15. 15. companies with a highly engaged employee population have significantly better financial performance... 3% 5% 3% 7% 1% 9% 5% 1% 6% 7% 5.75% 3.44% difference in operating margins difference in net profit margins ...than those with low engagement
  16. 16. they also produced shareholder returns 9.3% higher than the returns for the S&P 500 Index from 2002 - 2006
  17. 17. we found that employee engagement rises when people experience a combination of... ...effective and caring leadership
  18. 18. appealing development opportunities,
  19. 19. interesting work,
  20. 20. supported by tangible and intangible rewards
  21. 21. the Towers Watson research uncovered two elements that have a particularly strong influence
  22. 22. 1 senior management’s sincere interest in employee well-being
  23. 23. the opportunity an employee has for personal development of skills and abilities 2
  24. 24. manager-delivered recognition of employee performance boosts engagement the way a turbo charger cranks up a sports car’s horsepower
  25. 25. recognition from the immediate manager can give a powerful lift to the two principal engagement drivers: opportunity and well-being
  26. 26. recognition from the manager boosts employee engagement an average of 38%
  27. 27. departments and work groups, of course, are the supervisor’s home turf, the place where he or she has the greatest impact as a leader and as a source of appreciation
  28. 28. these are the venues where a pat on the back,
  29. 29. thank you! a sincere word of praise in front of the team
  30. 30. and the presentation of an commendation award has great power to increase employee engagement
  31. 31. most organizations have recognition programs or other mechanisms that managers can use to show appreciation for high performance
  32. 32. failure results not from the lack of recognition methods, but from the execution of the manager
  33. 33. effective recognition from managers, encompasses three basic requirements
  34. 34. 1 inclusiveness 2 3 communication trust
  35. 35. only 56% of survey respondents agreed their immediate managers recognize & appreciate great work
  36. 36. manager’s need to improve their recognition practices of INCLUSIVENESS I frequently receive recognition at work 59 36% everyone has the opportunity to be recognized at my organization 47% percent responding favorably
  37. 37. manager’s need to improve their recognition practices of COMMUNICATION my immediate supervisor communicates openly 59% my immediate supervisor encourages me to suggest new ideas and methods for doing things 56% percent responding favorably
  38. 38. manager’s need to improve their recognition practices of TRUST I trust my immediate supervisor 58% management trusts the judgement of people at my level in my organization 53% percent responding favorably
  39. 39. clearly there is room for improvement
  40. 40. with the right tools and training managers have the ability to impact employee engagement significantly
  41. 41. companies with higher engaged employees generate more marketplace power than their competitors
  42. 42. APPRECIATE GREAT WORK 2010 Towers Watson, The Power of Recognition From Managers: The Engagement Engine