1. Increasing Human Capital ROI with RESPECT
by
Dr. Paul Marciano
Ambrose
New York City, NY
June 14, 2012

2. My goal today is to . . .
make a difference that makes a
difference for you, your organization,
your employees, and your clients.

3. Human capital ROI is directly related to
employee engagement.

4. What is employee engagement?

5. Employee engagement is a psychological
construct which refers to an individual’s
commitment to one’s organization, work,
team, employer, and clients and which is
demonstrated behaviorally through high
levels of discretionary effort.

6. In other words…

7. Fully in the Game

8. What would be the impact if everyone
in your organization played full out?

9. Robust Impact of Engagement
Productivity & Performance
Profitability
Turnover & Absenteeism
Innovation
Employee Fraud
Customer Satisfaction & Loyalty
Quality Defects
Safety Compliance
Employee Satisfaction
Physical & Psychological Well-Being

10. Statistical cost of disengaged employees

11. Disengaged employees cost the American economy
$350 billion per year in lost productivity.
Gallup

12. Engaged vs. Disengaged
• 78% would recommend their company’s
products and services vs. 13%
• 67% advocate on behalf of their
organization vs. 3%
• 86% often feel happy at work vs. 11%
• 59% say their job brings out their most
creative ideas vs. 3%
Gallup

13. Opportunistic
3
Disengaged Engaged
2 4
Actively Actively
disengaged engaged
1 5
Engagement Meter

14. Hopes not to see it,
will clean-up if personal benefit
Walks past mess 3 Cleans-up what
without thought he/she sees
2 4
Creates Helps clean-up,
the mess fix & prevent
1 5
Engagement Meter

15. Opportunistic
3
Disengaged Engaged
2 35% 4
15% 30%
Actively Actively
disengaged engaged
1 5
5% 15%
Engagement Meter

16. Value to Organization
Engagement Level ROI
Actively Engaged 120%
Engaged 100%
Opportunistic 80%
Disengaged 60%
Actively Disengaged 40%

17. Sample Cost Analysis
Staff Size: 20
Avg. Salary: $100,000
Total Human Capital Investment: $2,000,000
Cost of Disengagement: $540,000

18. Consider . . .

19. We have new employees at “Hello.”

20. 1st day of work

22. My Story

23. What happened?

24. Work Ethic
Fixed Fixable
1 2 3 4 5
Internal Environment
Got “it” or don’t Potential for “it”

27. Create a culture that engages employees

28. Most people believe that . . .

29. employee engagement and motivation are the
same . . . they are not

31. Motivated Engaged
Self Organization
Opportunistic Committed
Short-term View Long-term View
External Focus Internal Focus
Narrow Focus Big Picture
Unstable Stable

32. Realizing sustainable increases in
employee engagement requires
impacting the culture of the organization.

33. Behaviors
Culture &
Attitudes

34. What doesn’t change culture is trying to
motivate employees with carrots & sticks

35. It’s the only way I can get myself out of bed in the morning.
Published in The New Yorker 4/19/2010 by Farley Katz

36. Traditional reward & recognition programs

39. why programs fail

40. Programs fail…
…because they are programs

41. Programs reduce…
creativity and risk taking

42. Programs have no
impact on culture

43. Reward programs…
Reward programs…
…reduce overall motivation
…reduce overall motivation

45. Don’t worry about how to motivate employees.

46. It isn’t even the right question.

47. The question is . . .

48. how do we engage our employees?

49. menghormati
уважение
respecto
respect
respecteren
rispetto Respekt

50. “ I’m not concerned with your liking or
disliking me. All I ask is that you respect
”
me as a human being.
~ Jackie Robinson

51. Respect = Power
Power is the ability to influence others
Power
Respect

53. the RESPECT™ model

54. An actionable philosophy which guides
and directs behavior

55. Respect the Organization
ORGANIZATION
RESPECT

56. Respect the Supervisor
SUPERVISOR
RESPECT

57. Respect Team Members
TEAM
RESPECT

58. Respect the Work
WORK
RESPECT

59. Feel Respected
INDIVIDUAL
RESPECT

60. the RESPECT™ drivers

61. R ECOGNITION
Thank
You

62. Turnkey Solutions & Best Practices
Recognition
• Send a handwritten “thank you” note home
• Spread the word; inform higher ups
• Hold exemplary work up as an example

63. EMPOWERMENT

64. Turnkey Solutions & Best Practices
Empowerment
• Ask employees what tools, training, and resources
they need to be more successful at their job
• Ask employees how you can reduce barriers and
help them do their jobs better
• Increase level of cross-training

65. SUPPORTIVE FEEDBACK

66. Turnkey Solutions & Best Practices
Supportive Feedback
• Deliver immediate, specific feedback focused on
behaviors
• Be selective and focused in your feedback; prioritize
• Serve as a role model and ask employees to provide
you with feedback

67. PARTNERING

68. Turnkey Solutions & Best Practices
Partnering
• Increase formal and informal communication; “lunch
and learn”
• Offer to “jump in” and help out
• Be transparent

69. EXPECTATIONS

70. Turnkey Solutions & Best Practices
Expectations
• Set clear, challenging, and measurable goals
• Hold a “compare expectations” exercise
• Employ “confused and concerned” conversations
• Hold people accountable

71. CONSIDERATION

72. Turnkey Solutions & Best Practices
Consideration
• Take an active and appropriate interest in your staff’s
personal lives, e.g., hobbies, interest, family
• Be on time for meetings and give your full attention
• Follow-up promptly to emails and phone calls
• Regularly ask employees for their opinions & ideas

73. TRUST

74. Turnkey Solutions & Best Practices
Trust
• Avoid micro-managing
• Own up to mistakes
• Talk to people not about them
• Increase autonomy and delegate meaningful tasks
• If trust is broken, move on

75. Where to start?

77. What Is Kudos?
Kudos is the simple & cost effective corporate
social network with a recognition engine at its
core. Kudos creates employee engagement by
enhancing communication, building connections
and supporting collaboration through recognition.

79. www.KudosNow.com
RESPECT

80. “ ”
Be the change you want to see in the world.
-- Mahatma Gandhi