1. Scott Leuchter
HRA of Greater Oak Brook
November 10, 2009

2. “Only
1 OUT OF EVERY 5
workers today is giving full discretionary effort on the
job, and this “engagement gap” poses serious risks
for employers because of the strong connection
between employee engagement and company
financial performance.”
SOURCE: Towers Perrin 2008 Global Workforce Study

3.  Understanding Engagement
• The Business Case
• Journey to Engagement
• Definitions
 Engaging Your Organization
• How to Measuring YOUR Employees’ Engagement
• Where is YOUR Organization?
• What’s Next?

5. Disengagement’s Financial Impact
*
Annual cost to U.S. = $292 – 355 billion
**
Operating Income  32.7%
**
Income Growth Rate  3.8%
**
Earnings per Share  11.2%
**
Operating Margin  2.01%
**
Net Profit Margin  1.38%
•Gallop
** 2007-2008 Global Workforce Study

6. % Respondents who say they can positively impact:
56%
39%
Costs 25% Engaged
20%
59%
42% Enrolled
Revenue Growth 23%
17%
60% Disenchanted
41%
Innovation 22%
13%
63% Disengaged
46%
Profitability 27%
20%
85%
72%
Customer Satisfaction 48%
42%
88%
74%
Quality 49%
38%
SOURCE: Towers Perrin 2008 Global Workforce Study

7. No Plans to leave
7%
15% Not looking, but would
15% consider another offer
Actively looking for
another job
Made plans to leave
current job
35%
28% Plan to retire in the next
few years
SOURCE: Towers Perrin 2008 Global Workforce Study

8.  Engagement is a critical leading indicator of
potential productivity and retention issues.
10% increase in engagement leads to 8%
more discretionary effort which leads to 2%
improvement in performance.

9. $10,000  $3,400 loss
 Actively
disengaged employees cost organizations
$3,400 for every $10,000 in salary. - Gallup, 2002
 Smaller organization = Higher engagement levels.
 In
difficult economic times, engagement is more
important than ever.

10. In which area(s) is your organization
struggling?
Cost? Customer Satisfaction?
Growth? Quality?
Innovation? Retention?
Profitability? Employee Performance?
How would an organization’s level of
engagement impact these areas?

11.  Onlythose companies that win the hearts and
minds of their top talent will be able to deliver
value over both the short and long-term.
– Deloitte, 2008
 We are witnessing an era for business around
the world in which engaging employees makes
the difference between success and failure.
-Towers Perrin, 2006

12.  Linkage to Business Outcomes
• Employee behavior – customer behavior – financial
performance
 Global Talent Age
• Innovation
• Agility
• Responsiveness to change
• Encourage creativity

13. 1980’s 1990’s 2000’s
Satisfaction Commitment Engagement
• Satisfaction alone • Positive rel. with • Direct relationship
is not an adequate turnover/ retention with customer
predictor of satisfaction, financial
performance • Commitment does performance,
not correlate with individual
customer satisfaction performance,
retention
• Positive rel. with
company/ • More job-related
organization

14.  The extent to which employees enjoy and
believe in what they do, feel valued for it and are
willing to spend their intellectual effort to make
the organization successful. - Human Capital Institute
 Willingness and ability to contribute to company
success; is the extent to which employees go
the extra mile and put discretionary effort into
their work – contributing more of their energy,
creativity and passion on the job. – Towers Perrin

15.  “Occurs when employees are motivated to
help the company succeed (commitment) and
know what to do to make it successful (line of
sight).” – Watson Wyatt
 “Theextent to which people enjoy and believe in
what they do, and feel valued for doing it.”
– Development Dimensions International

16.  PersonalEngagement defined as “the
harnessing of organization members’ selves to
work roles; in engagement, people employ and
express themselves physically, cognitively, and
emotionally during role performances – Kahn, 1990
 Vigor, dedication, and absorption – Schaufeli, Salanova,
Gonzalez-Roma, & Bakker, 2002

17.  Passion and commitment – the willingness to
invest oneself and expend one’s discretionary
effort to help the employer’s success – Erikson, 2005
 Psychological trait, situational state, and a
behavior – Macey & Schneider, 2008

18.  Meaningfulness
• Receiving a return on investment of one’s self
• Job enrichment and work role fit is positively
linked
 Safety
• Ability to show and employ one’s self without
fear of negative consequences
• Rewarding co-worker and supportive
supervisor is positively linked

19.  Availability
• Individual’s belief that they have the resources
to engage one’s self at work
• Resource availability is positively linked

20.  Job
 Personal
 Customer
 Manager
 Rewards & Recognition
Burke, 2009

21. How do you define engagement?
What other factors do you think
influence one’s level of engagement?

22. Engaged Enrolled Disenchanted Disengaged
Towers Perrin (2008)

23.  Shocks
to the system that impact
meaningfulness, safety or availability
 Breakin the psychological
contract
 Unfolds over time
• First thoughts of quitting
and actual decision to leave
• Decision to leave and
actual departure

24.  Behavioral Observation
Absenteeism Rapid task saturation
Tardiness Slow tempo of activity
Withdrawal Poor decision-making
Negativity Lack of interest in work
Lengthy episodes of Marginally productive
distraction

25.  Six Sigma methodology
• Effective framework for developing and executing an
efficient and effective engagement program
• Define
• Measure
• Analyze
• Improve
• Control

26.  Define
• Problem Statement
• Business Case
• Purpose and Scope
• Intended Improvement
• Communication Strategy

27.  Measure
• Collect qualitative and quantitative base-line
data
 Observations
 Interviews
 Focus Groups
 Survey

28.  Analyze
• Identify root-causes based on data
• Organize and segment by level, locations and
appropriate demographics

29.  Improve
• Engage stakeholders
• Communicate results
• Prepare the organization for taking action
• Develop, try out and implement action plans
and solutions to address gaps
• Use data to evaluate both the solution and the
action plans to carry them out

30.  Control
• Maintain and institutionalize the gains
developed via the action plan
• Anticipate future improvements and preserve
the lessons learned
• Conduct periodic “pulse” checks
• Form and leverage engagement action teams
as change agents

31. On Your Mark
 Getting Started
• Interview senior leadership
• Link to the business strategy
• Present the business case
• Secure champions
•Adapted from Blessing White, 2008

32. Get Set
 Consideration
• Inform and educate
 Just Beginning
• Engage managers
• Be transparent
•Adapted from Blessing White, 2008

33. Go!
 Stuck
• Focus on specific actions &
areas for change
 Along the way
• Engage leadership across the
organization
• Leverage prior successes
• Revisit your data
•Adapted from Blessing White, 2008

34.  Enjoy the journey
• Continue to educate and inform
• Link results to tangible business performance
• Refine and improve
•Adapted from Blessing White, 2008

35. Where is your organization in this
journey?
Getting Started Stuck
Consideration Along the Way
Just Beginning
What 3 things will you do to help move
it forward?

36.  Engagement leads to organizational success
 HR is in the best position to impact engagement
 Time to act is NOW

37. scott.leuchter@sbcglobal.net
773-255-1632