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 2. Demographics 3. Overall Findings 4. Insights 5. Best Practices

Methodology 3 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. 2014 Revenue Number of Employees Less than $1 million $1 million - $24 million 2% 6% 3% 1-24 7% 17% $25 million - $99 25-99 22% million 31% 100-499 $100 million - $499 million 500-999 9% 21% 1,000-4,999 $500 million - $999 million 12% 5,000-9,999 6% $1 billion - $4.99 billion 10,000+ 11% 11% 11% 27% Don't Know 4% $5 billion+ Don't Know

Department and Title 5 Most respondents are HR managers and above. 9% 16% 18% 4% 5% 2% 3% 5% 2% 2% 2% 2% 6% 24% 73% 16% 11% Human Resources Customer Service Individual Contributor Manager Senior Manager Finance/Procurement IT Director Vice President Senior Vice President Marketing/Public Relations Operations C-level Executive President or CEO Other Sales/Business Development Other

Understanding of Employee Engagement 6 86% of people report being Familiar or Very Familiar with the term “Employee Engagement.” How familiar are you with the term “Employee Engagement?” Participants icipants were aske ked to 2% read d the followin ing g defin init itio ion: 10% “ Employee Engagement is an emotional state where we feel passionate, energetic, and committed to our work. Not at all Familiar In turn, we fully invest our best selves — our hearts, Somewhat Familiar 25% spirits, minds, and hands — in Familiar the work we do. “ Very Familiar 63% How familiar are you with the term “Employee Engagement” according to this and/or other definitions you are aware of?

Importance of Employee Engagement 7 HR professionals report that only 29% of managers consider employee engagement to be very important compared to 45% of executives. Based on what they both say and do, how How important is Employee Engagement important is Employee Engagement to the to mana nagers ers in your organization? execu ecutive tive team eam of your organization? 2% 3% 5% 5% 21% 29% 28% 45% 27% 35% Not at all Important Somewhat Important Not at all Important Somewhat Important Important Very Important Important Very Important Don’t Know Don’t Know

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. HR professionals name Benefit Be it Score Overall all Rank Increased Performance, Increases employee performance 1388 1 Retention, and Satisfaction as the top benefits of Increases employee retention 1308 2 Employee Engagement. 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

Use of Formal Employee Engagement Programs 9 Does your organization have a formal program (or programs) currently in place specifically aimed at enhancing Employee Engagement? 5% Yes 40% No 55% Don't Know

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) Companies without an Other competing priorities 54 employee engagement program in place mention Lack of support from senior executive team 47 other competing priorities and lack of executive support as the main Lack of knowledge about employee engagement 38 reasons. Lack of follow-through 37 Lack of support from managers 36 Lack of funds/resources 35 A belief that Employee Engagement doesn't 12 matter Resistance from employees 8 Don't Know 4 0 10 20 30 40 50 60

11 Top Employee Engagement Initiatives Companies mention Employee Feedback Programs, What types of Employee Engagement-specific Company Events, Recognition Programs and Wellness initiatives has your organization implemented in Programs as their top employee engagement initiatives. the past three years? Please mark all that apply. Employee Feedback 65 Company Events/Parties 65 Overall, how successful do you feel these programs have been over the Recognition Programs 59 past three years in increasing Wellness Programs 55 Employee Engagement? Other Types of Training 36 3% 14% 9% Training on Employee 33 Engagement 24% Telecommuting/Work from home 25 Additional Perks/Benefits 21 50% Other (please specify) 8 None 3 Don’t Know Not Successful Don’t Know 2 Somewhat Successful Successful 0 10 20 30 40 50 60 70 Very Successful

Success of Employee Engagement Programs 12 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 3% been successful at 9% increasing employee 14% engagement. 24% 50% Don’t Know Not Successful Somewhat Successful Successful Very Successful

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. Employee Feedback 49 Companies mention Employee Feedback and Recognition Programs 48 Recognition Programs as the top two initiatives to Company Events/Parties 36 implement in the future. Training on Employee Engagement 33 Other Types of Training 33 Wellness Programs 33 Don’t Know 22 Additional Perks/Benefits 18 Telecommuting/Work from home 16 Other (please specify) 6 None 6 0 10 20 30 40 50 60 Only 6.2% of organizations do not t plan to continue Employee Engagement initiatives.

Last Employee Engagement Survey 14 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 13% engagement survey in the past year. Year 2 years 3 years or more 20% 49% Never Don't Know 6% 12%

Plans to Measure Employee Engagement 15 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. 25% 27% Year 2 years 3 years or more Will not measure 6% 10% Don’t Know 32%

History of Measuring Employee Engagement 16 Over how many years has your organization been measuring Employee Engagement using an employee survey? 60% of companies have been conducting an employee engagement 14% 16% survey for three years or more. 10% 13% 39% 8% 1 year 2 years 3 years 4 years 5 years or more Don’t Know

17 Frequency of Measuring Employee Engagement 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.) Don't Know 5 More than every 2 years 14 Every 2 years 17 Most companies conduct an employee engagement Every 18 months 6 survey at least annually. Annually 52 Quarterly 7 Monthly 3 Weekly 1 Always On 3 0 10 20 30 40 50 60

Consistency of Measuring Employee Engagement 18 41% of companies have consistently measured Which statement best describes your organization? employee engagement each year for at least the past three years. JUST STARTED: My organization just started measuring employee engagement within the last two 4% years. 24% 17% CONSISTENT: My organization has measured employee engagement each year for at least the past three years. LESS CONSISTENT: My organization measures employee 14% engagement every 18 months to 2 years. SPORADIC: My organization has measured employee engagement sporadically over the past five 41% years. Don't Know

Internal vs. Outsourced Employee Engagement Surveys 19 For your organization's most recent survey to measure employee engagement, how did you administer the survey? 5% 8% 25% 62% of companies work Internally using software with a third party to tool conduct their employee engagement survey Outsourced to a third- party survey company Other Don’t Know 62%