The State of Employee Engagement A comprehensive look at employee - - PowerPoint PPT Presentation
The State of Employee Engagement A comprehensive look at employee engagement best practices from over 200 organizations around the world 815 W 450 S, Springville, UT 84663 USA // +1.801.515.6500 // decision-wise.com Agenda 2 1. Methodology
815 W 450 S, Springville, UT 84663 USA // +1.801.515.6500 // decision-wise.com
A comprehensive look at employee engagement best practices from over 200 organizations around the world
2
Agenda
3
Methodology
Objecti ectives ves Understand the importance of Employee Engagement Understand what organizations are doing to measure Employee Engagement Understand what is working to improve Employee Engagement Surve rvey Overview erview 31 questions, including one open-ended question Seven demographic questions 227 responses from around the world (163 US/Canada) Surve rvey Meas asur ured ed Understanding of Engagement Importance of Engagement Perceived outcomes of Engagement How Engagement is measured Engagement levels in organizations Stat atistical istical Analysis alysis Descriptive summary Cross tab Comparisons
4 Company Size
Over 200 organizations represented (20+ Industries). Over half of companies have 1,000 employees or more.
3% 22% 12% 11% 4% 11% 6% 31%
2014 Revenue
Less than $1 million $1 million - $24 million $25 million - $99 million $100 million - $499 million $500 million - $999 million $1 billion - $4.99 billion $5 billion+ Don't Know
6% 7% 21% 11% 27% 9% 17% 2%
Number of Employees
1-24 25-99 100-499 500-999 1,000-4,999 5,000-9,999 10,000+ Don't Know
5
Most respondents are HR managers and above.
Department and Title
73% 2% 2% 2% 3% 5% 4% 9%
Human Resources Customer Service Finance/Procurement IT Marketing/Public Relations Operations Sales/Business Development Other
18% 24% 11% 16% 6% 2% 5% 2% 16%
Individual Contributor Manager Senior Manager Director Vice President Senior Vice President C-level Executive President or CEO Other
6
How familiar are you with the term “Employee Engagement?”
Understanding of Employee Engagement
86% of people report being Familiar or Very Familiar with the term “Employee Engagement.”
2% 10% 25% 63% Not at all Familiar Somewhat Familiar Familiar Very Familiar Participants icipants were aske ked to read d the followin ing g defin init itio ion: “Employee Engagement is an emotional state where we feel passionate, energetic, and committed to our work. In turn, we fully invest our best selves—our hearts, spirits, minds, and hands—in the work we do.“ How familiar are you with the term “Employee Engagement” according to this and/or other definitions you are aware of?
7
5% 28% 35% 29% 3%
Not at all Important Somewhat Important Important Very Important Don’t Know
How important is Employee Engagement to mana nagers ers in your organization?
Importance of Employee Engagement
Based on what they both say and do, how important is Employee Engagement to the execu ecutive tive team eam of your organization?
5% 21% 27% 45% 2%
Not at all Important Somewhat Important Important Very Important Don’t Know
HR professionals report that only 29% of managers consider employee engagement to be very important compared to 45% of executives.
8 Benefits of Employee Engagement
In your opinion, in what ways does Employee Engagement benefit organizations in general? Please rank up to 5 top benefits.
Be Benefit it Score Overall all Rank Increases employee performance 1388 1 Increases employee retention 1308 2 Increases employee satisfaction 1119 3 Increases customer satisfaction 909 4 Improves quality 646 5 Increases profitability 631 6 Increases innovation 592 7 Attracts talent to the company 575 8 Improves company/brand image 500 9 Decreases employee absence 371 10
HR professionals name Increased Performance, Retention, and Satisfaction as the top benefits of Employee Engagement.
9
55% 40% 5% Yes No Don't Know
Use of Formal Employee Engagement Programs
Does your organization have a formal program (or programs) currently in place specifically aimed at enhancing Employee Engagement?
10 Reasons for Not Having an Employee Engagement Program
Why does your organization not have any programs in place to enhance Employee Engagement? (check all that apply)
4 8 12 35 36 37 38 47 54 10 20 30 40 50 60 Don't Know Resistance from employees A belief that Employee Engagement doesn't matter Lack of funds/resources Lack of support from managers Lack of follow-through Lack of knowledge about employee engagement Lack of support from senior executive team Other competing priorities
Companies without an employee engagement program in place mention
and lack of executive support as the main reasons.
11 Top Employee Engagement Initiatives
What types of Employee Engagement-specific initiatives has your organization implemented in the past three years? Please mark all that apply.
2 3 8 21 25 33 36 55 59 65 65
10 20 30 40 50 60 70 Don’t Know None Other (please specify) Additional Perks/Benefits Telecommuting/Work from home Training on Employee Engagement Other Types of Training Wellness Programs Recognition Programs Company Events/Parties Employee Feedback
Companies mention Employee Feedback Programs, Company Events, Recognition Programs and Wellness Programs as their top employee engagement initiatives.
3% 14% 50% 24% 9%
Don’t Know Not Successful Somewhat Successful Successful Very Successful
Overall, how successful do you feel these programs have been over the past three years in increasing Employee Engagement?
12
3% 14% 50% 24% 9%
Don’t Know Not Successful Somewhat Successful Successful Very Successful
Success of Employee Engagement Programs
Overall, how successful do you feel these programs have been over the past three years in increasing Employee Engagement?
83% of companies report that their initiatives have been successful at increasing employee engagement.
13 Future Employee Engagement Plans
What types of Employee Engagement initiatives does your organization plan on implementing in the future? Please mark all that apply. Only 6.2% of organizations do not t plan to continue Employee Engagement initiatives.
6 6 16 18 22 33 33 33 36 48 49
10 20 30 40 50 60 None Other (please specify) Telecommuting/Work from home Additional Perks/Benefits Don’t Know Wellness Programs Other Types of Training Training on Employee Engagement Company Events/Parties Recognition Programs Employee Feedback
Companies mention Employee Feedback and Recognition Programs as the top two initiatives to implement in the future.
14
49% 12% 6% 20% 13% Year 2 years 3 years or more Never Don't Know
Last Employee Engagement Survey
When was the most recent survey conducted to measure Employee Engagement in your organization? Was it in the past…
Almost half of all companies have conducted an employee engagement survey in the past year.
15
25% 10% 32% 6% 27% Year 2 years 3 years or more Will not measure Don’t Know
Plans to Measure Employee Engagement
Our organization plans to measure Employee Engagement through an employee survey for at least the next…
42% of companies plan to conduct an employee engagement survey for at least the next two years.
16
14% 10% 13% 8% 39% 16% 1 year 2 years 3 years 4 years 5 years or more Don’t Know
History of Measuring Employee Engagement
Over how many years has your organization been measuring Employee Engagement using an employee survey?
60% of companies have been conducting an employee engagement survey for three years or more.
17 Frequency of Measuring Employee Engagement
How frequently does your organization conduct a formal employee survey
your organization conducts an annual employee survey followed by quarterly pulse surveys, choose Quarterly and Annually.)
3 1 3 7 52 6 17 14 5
10 20 30 40 50 60 Always On Weekly Monthly Quarterly Annually Every 18 months Every 2 years More than every 2 years Don't Know
Most companies conduct an employee engagement survey at least annually.
18
24% 41% 14% 17% 4% JUST STARTED: My organization just started measuring employee engagement within the last two years. CONSISTENT: My organization has measured employee engagement each year for at least the past three years. LESS CONSISTENT: My
engagement every 18 months to 2 years. SPORADIC: My organization has measured employee engagement sporadically over the past five years. Don't Know
Consistency of Measuring Employee Engagement
Which statement best describes your organization?
41% of companies have consistently measured employee engagement each year for at least the past three years.
19
25% 62% 8% 5% Internally using software tool Outsourced to a third- party survey company Other Don’t Know
Internal vs. Outsourced Employee Engagement Surveys
For your organization's most recent survey to measure employee engagement, how did you administer the survey?
62% of companies work with a third party to conduct their employee engagement survey
20 Employee Feedback Collection Methods
What methods has your organization used to collect employee feedback? (Mark all that apply)
2 2 29 34 35 86
10 20 30 40 50 60 70 80 90 100 Other (specify) Telephone survey Personal Interviews Focus Groups Paper survey Online survey
Online surveys are the most popular method to collect employee feedback, but paper surveys, focus groups, and personal interviews are also popular methods.
21 Average Employee Engagement Survey Participation
What percentage of your employees provided feedback to your most recent employee survey?
25% 75% Did not Participate Participated
On average, 75% of employees participated in their company’s employee engagement survey.
22
52% 34% 14% Yes No Don't Know
Use of Employee Engagement Benchmarks
Do you compare your engagement scores to an overall benchmark or to others in your industry? (benchmarking)
Just over half (52%) of companies compare their employee engagement survey results to an industry benchmark.
23 Average Level of Employee Engagement
According to your most recent survey results, what percentage of employees are engaged at your company? This includes employees you consider to be fully engaged, engaged, or somewhat engaged.
34% 66% Not Engaged Engaged
Companies report that most (66%) of their employees are engaged according to their most recent employee engagement survey results.
24
32% 28% 17% 23% Upward Stayed the Same Downward Don’t know
Companies with Engagement Trending Upward
Based on any employee survey results over the past 3 years, has the overall level of Employee Engagement in your organization trended….
32% of companies report that engagement in their
28% report engagement has stayed the same and 17% say that it has actually gone down.
25 Sharing of Employee Engagement Results
Which groups receive the results of the survey (summary
3 1 7 53 19 55 75 78
10 20 30 40 50 60 70 80 90 Don’t Know None of the above Some Employees All Employees Some Managers All Managers HR Executive Team
Most executives and HR staff receive the results from the company employee engagement
managers and all employees.
26 Involvement in Employee Engagement Survey Action Planning
Who is involved in action planning based on the survey results? Please check all that apply.
2 2 5 19 32 34 71 76
10 20 30 40 50 60 70 80 Don’t know No action plans are created Other All employees Some managers All managers Executive team HR team
Companies report that managers and employees are much less involved in action planning on employee engagement survey results than HR and the executive team.
27 Creation of Employee Engagement Survey Action Plans
What percent of the following groups actually create an action plan?
72% 68% 55% 0% 10% 20% 30% 40% 50% 60% 70% 80% Executives HR Managers
28 Training on Employee Engagement
Which of the following groups have received training on Employee Engagement in your
how to increase it in the organization. Please check all that apply.
16 6 11 15 20 29 34 37
5 10 15 20 25 30 35 40 Don’t Know All employees Some employees Some managers All managers Executive Team HR team None
Most companies report that they do not provide training on employee engagement.
29 Business Metrics Compared to Employee Engagement
Which of the following metrics are compared to Employee Engagement scores in your company? Please check all that apply.
22 24 2 13 13 29 33 41
5 10 15 20 25 30 35 40 45 Don’t Know None Other (Please specify) Product/Service Quality Metrics Profitability Customer Satisfaction Performance Metrics Employee Retention
Most companies compare employee engagement survey scores to retention numbers followed by other performance metrics.
30 Working with External Providers on Employee Engagement
Do you work with outside providers to enhance Employee Engagement? Outside providers may include training companies, consultants, coaches, universities, survey companies, etc. (but not do-it-yourself software tools).
34% 52% 14% Yes No Don’t know
31 Employee Engagement Expenditures
How much money does your organization invest specifically in Employee Engagement programs (including surveys) annually?
Average $64,620 High $300,500 Low $0
(7 responses)
Companies report spending about $65,000 annually on employee engagement programs.
32
9% 68% 23% Yes No Don’t know
Measuring the ROI of Employee Engagement
Does your organization measure its return on investment (ROI) for Employee Engagement programs?
Only 9% of companies measure the ROI of their employee engagement programs.
33 Observed ROI of Employee Engagement
In what ways have you seen a return on the organization’s investment in Employee Engagement?
32 18 4 7 9 12 17 18 19 20 25 31 35 5 10 15 20 25 30 35 40 Don’t Know None Other (specify): Decreased employee absence Higher application rates Increased profitability Improved quality Improved companyimage Increased innovation Increased customer satisfaction Higher performance Higher employee retention Higher employee satisfaction
Companies report higher Satisfaction, Retention, and Performance as a result of their investment in employee engagement.
34
6% 9% 20% 24% 3% 38%
Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree Don’t Know/Not Applicable
Belief in Employee Engagement ROI
How strongly do you agree with the following statement: “Our program(s) to improve Employee Engagement has (have) given us the ROI/results we hoped for.”
Only 27% of companies believe that their programs to improve employee engagement have produced the ROI they hoped for.
35 State of Employee Engagement Overall Findings
How would you describe the impact of Employee Engagement on your
“Huge impact!” “It’s a work in progress and we have a long way to go still.” “Very positive to our cultural goals.” “It is vital to providing quality care and fulfilling our mission in the community, so we take it very seriously.”
36 Insights
37
32% 28% 17% 23% Upward Stayed the Same Downward Don’t know
Companies with Engagement Trending Upward
Based on any employee survey results over the past 3 years, has the overall level of Employee Engagement in your organization trended….
32% of companies report that engagement in their
28% report engagement has stayed the same and 17% say that it has actually gone down.
38
Companies with Engagement Trending Upward… Have Engagement Programs.
Does your organization have a formal program (or programs) currently in place specifically aimed at enhancing Employee Engagement?
90% of companies with upward trending levels of employee engagement report that they have a formal program to enhance employee engagement.
Yes 90% No 10%
39
39 20 19 31 28 28 35 12 13 22 28 28 14 9 4 9 10 10 5 10 15 20 25 30 35 40 45 Employee Feedback Systems (i.e. surveys, etc.) Training on Employee Engagement Other Types of Training Wellness Programs Recognition Programs Company Events/Parties Upward Stayed the Same Downward
Companies with Engagement Trending Upward… Train on Employee Engagement.
What types of Employee Engagement-specific initiatives has your organization implemented in the past three years? Please mark all that apply.
Companies with upward trending levels of employee engagement provide training on employee engagement,
wellness programs more than those with stagnant or downward engagement trends.
40 Companies with Engagement Trending Upward…
Have Measured Engagement for 3 or More Years.
Over how many years has your organization been measuring Employee Engagement using an employee survey?
71% of companies with upward trending levels of employee engagement have conducted an employee survey for three years or more. 1 year 11% 2 years 18% 3 years 11% 4 years 13% 5 years or more 47%
41
1 1 5 24 3 7 3 5 10 15 20 25 30 Always On Weekly Monthly Quarterly Annually Every 18 months Every 2 years More than every 2 years
Companies with Engagement Trending Upward… Measure Engagement Annually.
How frequently does your organization conduct a formal employee survey or collect employee feedback? (Multiple answers allowed. For example, if your organization conducts an annual employee survey followed by quarterly pulse surveys, choose Quarterly and Annually.)
Most companies with upward trending levels of employee engagement conduct annual employee surveys.
42
27% 45% 18% 10%
JUST STARTED: My organization just started measuring employee engagement within the last two years. CONSISTENT: My organization has measured employee engagement each year for at least the past three years. LESS CONSISTENT: My organization measures employee engagement every 18 months to 2 years. SPORADIC: My organization has measured employee engagement sporadically over the past five years.
Companies with Engagement Trending Upward… Measure Engagement Consistently.
Which statement best describes your organization?
45% of companies with upward trending levels of employee engagement have measured engagement consistently each year for at least the past three years.
43
29 19 11 10 16 7 5 10 15 20 25 30 35 Upward Stayed the Same Downward Yes No
Companies with Engagement Trending Upward… Use Benchmarks.
Do you compare your engagement scores to an overall benchmark or to others in your industry? (benchmarking)
Most companies with upward trending levels of employee engagement compare their scores to industry benchmarks.
44
30 33 26 5 25 2 28 26 19 6 19 2 16 17 11 5 12 2 5 10 15 20 25 30 35 HR Executive Team All Managers Some Managers All Employees Some Employees Upward Stayed the Same Downward
Companies with Engagement Trending Upward… Share Employee Survey Results.
Which groups receive the results of the survey (summary or detailed results)? Please check all that apply.
Companies with upward trending levels of employee engagement share employee survey results more broadly throughout the
45
29 31 21 9 9 23 24 12 11 9 16 19 5 9 3 5 10 15 20 25 30 35 Executive team HR team All managers Some managers All employees Upward Stayed the Same Downward
Companies with Engagement Trending Upward… Involve Managers in Action Planning.
Who is involved in action planning based on the survey results? Please check all that apply.
Companies with upward trending levels of engagement involve managers in action planning on employee survey results.
46
26 25 13 12 3 5 4 11 14 7 5 3 5 15 8 9 5 4 3 4 7 5 10 15 20 25 30 Executive Team HR team All managers Some managers All employees Some employees We don’t train on Employee Engagement Upward Stayed the Same Downward
Companies with Engagement Trending Upward… Train Managers on Employee Engagement.
Which of the following groups have received training on Employee Engagement in your organization? By training, we mean a formal session on what employee engagement is and how to increase it in the organization. Please check all that apply.
Companies with upward trending levels of employee engagement providing training on engagement to their managers.
47
22 14 10 15 19 10
5 10 15 20 25 Upward Stayed the Same Downward Yes No
Companies with Engagement Trending Upward… Tend to Work with Outside Partners.
Do you work with outside providers to enhance Employee Engagement? Outside providers may include training companies, consultants, coaches, universities, survey companies, etc. (but not do-it-yourself software tools).
Companies with upward trending levels of employee engagement tend to work with outside partners to enhance employee engagement.
48
15 12 8 9 5 11 9 8 9 7 9 6 9 5 8 7 6 5 4 5 8 2 4 6 8 10 12 14 16 Higher employee retention Higher performance Improved company/brand image Improved product/service quality Increased profitability Increased customer satisfaction Increased innovation within the company Upward Stayed the Same Downward
Companies with Engagement Trending Upward… Report Higher Retention and Performance.
In what ways have you seen a return on the organization’s investment in Employee Engagement?
Companies with upward trending levels of employee engagement report higher retention and performance.
49
21 16 2 20 9 4 10 10 1 5 10 15 20 25 Very Concerned Somewhat Concerned Not Concerned Upward Stayed the Same Downward
Companies with Engagement Trending Upward… Are Concerned About Retention.
How concerned is your organization about employee retention?
Companies with upward trending levels of employee engagement are concerned about retention.
50 Key Findings