Category Archives: Workplace Culture

Want To Improve Your Business Outcomes?

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Last week I wrote about the new Gallup report, State of the American Workplace, and discussed some of its broader findings. This week, we’ll dig in a little more specifically.

Two of the chapters, U.S. Workers: Increasingly Confident and Ready to Leave, and The Competitive Advantage of Engaging Employees, should be required reading for all leaders as well as HR folks.

Let’s look at the chapter on U.S. workers having one foot out the door first. According to Gallup, “51% of U.S. employees say they are actively looking for a new job or watching for openings.” Think about that for a minute. A little more than half of your employees have at least one foot out the door.

Optimism about the job market is up for good reason:  hiring is up. Gallup measures job creation and reports its Job Creation Index. In 2012 the Gallup Job Creation Index averaged +18. For the first three quarters of 2016, it averaged +32. So our employees have a deservedly high level of confidence that when they leave, they can find a good replacement job fairly quickly. It’s no wonder that many of our employees have a “grass is greener” outlook.

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And, of course, all of these reasons tie into your HR strategies, policies and plans. Your approach to employee engagement should be tying in to these 5 reasons for employee resignations.

While there are many definitions for employee engagement, this really caught my eye in the report:

“Some leaders and managers believe the ultimate goal of employee engagement is higher levels of worker happiness and satisfaction. Happier workers certainly benefit an organization, but the real goal of employee engagement is improved business outcomes.”

Boom! Let me quote this again:  “…the real goal of employee engagement is improved business outcomes.” Every definition of employee engagement works here – as long as we understand the real outcome for which we’re working.

If employees are happier, they’ll work smarter and harder and quality will go up, improving our business outcomes.

If employees feel respected, they’ll be more committed and stay longer, improving our business outcomes.

If employees’ skills are developed, they’ll make greater contributions, improving our business outcomes.

If employees see a career path forward, they’ll be more committed and stay longer, improving our business outcomes.

If employees feel connected to the organization’s mission, they’ll spend more of their discretionary energy on the job, improving our business outcomes.

You get the point. As you’ll see in the chapter on The Competitive Advantage of Engaging Employees, employee engagement isn’t a nice-to-have any more. In this age of talent shortages and high turnover, employee engagement is a requirement to meet and exceed our business goals.

Gallup has been measuring employee engagement globally for a long time. In the U.S. the figures for the last 16 years are surprising. And not in a good way. They are actually alarming. Take a look:

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What’s alarming about this data is that, essentially, despite a ton of investment in programs, approaches, technology, and training, the employee engagement needle hasn’t moved since 2000. For all intents and purposes, despite our best (?) efforts, the percentage of the workforce that is either Not Engaged or Actively Disengaged hasn’t moved at all over the last 16 years. Somehow, despite our best efforts, we are not convincing our employees that we value them, that we need them, or that we want them. And they’re actively looking. Add in to the equation that there a lots of jobs available – and a lot of them are good jobs – and it’s easy to see why employees feel empowered to check out the green grass across the street or across the country.

Perhaps we aren’t speaking their language. Perhaps we aren’t letting them in as real partners in our drive for success. Perhaps we aren’t asking, or listening, or engaging. But it’s clear from this data – and a great many other sources – that the average organization needs to step up its employee engagement game.

The data are clear. Engaged employees – use definition you like – have lower turnover, lower absenteeism, higher customer metrics, higher productivity, higher sales, higher profitability – as I have been quoted saying, “everything we measure that we want to go up will go up, and everything we measure that we want to go down will down when we create a culture that values its humans.”

Download this report. Download it today and start considering how you can improve your business outcomes by engaging your employees.

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Filed under China Gorman, Culture, Data Point Tuesday, Employee Engagement, Employee Productivity, Gallup, Happiness at Work, Talent Management, Workforce Management, Workplace Culture

Got Culture?

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Gallup’s State of the American Workplace report is out. It’s a lot of information (214 pages!). But it’s important information and you’ll enjoy the most current data from this global collector and analyzer of work related data.

We talk about employee engagement – or some other euphemism for connecting with employees in a human, caring way – all the time. We get at our data through the famous surveys from organizations like Gallup, Great Place to Work™, Quantum Workplace, or Workplace Dynamics – or any of a hundred other providers of culture measurement and strengthening solutions. And we compete in geographical and industry competitions all over the world to claim one of the top spots in great organizational culture lists. All of this to attract and retain world class employees.

I’m a big believer that culture trumps most every other organizational dynamic in the war for talent, innovation, profitability, top line growth, competitiveness and any other thing you might measure. I’ve been quoted frequently as saying that “strong, positive  cultures improve everything we measure that we want to go up, as well as reducing everything we measure that we want to go down.” And it’s true. But intentionally creating and managing the right kind of culture is getting more difficult as the world gets more and more complex: 4 or 5 generations in the workplace; Big Data and Artificial Intelligence; globalization; nationalism; terrorism; population growth; global warming – the list of external dynamics – some might say threats – impact  our organizations’ success as well as how we relate with our employees seems to grow every day.

So, I appreciate organizations that collect data, make sense of it, and then make it available to all of us. I appreciate them a lot. And Gallup does a better job than most. This report, State of the American Workplace, has a ton of interesting data in it. You probably don’t want to read it in one sitting, but you do want to read it all.

In the executive summary, the report lays out the roadmap for leaders to follow in creating organization sustainability:

  • design and deliver a compelling and authentic employer brand
  • take employee engagement from a survey to a cultural pillar that improves performance
  • approach performance management in ways that motivate employees
  • offer benefits and perks that influence attraction and retention
  • enable people to work successfully from locations besides the office
  • construct office environments that honor privacy while encouraging collaboration
  • improve clarity and communication for employees who work on multiple teams

Sounds simple, I know; but any leader who has tried to create a stronger culture knows that this is hard stuff. It’s 3 steps forward, 2 steps back stuff. And Gallup has the data to back it up.

The executive summary ends with this:

“The one thing leaders cannot do is nothing. They cannot wait for trends to pass them by, and they cannot wait for millennials to get older and start behaving like baby boomers.”

The chapters are mini culture theses in themselves:

  1. U.S. workers: increasingly confident and ready to leave
  2. Do employees want what your workplace is selling?
  3. The real truth about benefits and perks
  4. The competitive advantage of engaging your employees
  5. A shift in managing performance
  6. A closer look at the 12 elements of engagement
  7. Making sense of matrixed teams
  8. The changing place and space of work

I encourage you to delve into these chapters and consider the data, the analysis and the conclusions in each. In chapter 2, data are shared that might motivate you to reconsider how you think your employment candidates are evaluating your organization as a potential employer:

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Increase in income potential and a well-known brand are not as important as they once were. Did you know that?

There are a number of similar “ah-ha” data points in this report. They are easily accessible, simply constructed and are potential game changers as you think about your organization’s culture and its impact on your ability to retain and acquire the talent you need.

Download it here. I think you’ll gain surprising new insights.

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Filed under Big Data and HR, China Gorman, Company Culture, Data Point Tuesday, Employee Engagement, Employee Satisfaction, Gallup, Generations at work, HR Analytics, HR Data, HR Trends, Human Capital, Talent Analytics, Talent Management, Workplace Culture

Does Your CEO Have a Higher Purpose?

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Each year I look forward to the pwc CEO survey findings. And they’re just out. You can see their top ten findings here.

If you’re in HR you need to know what your CEO is thinking about. What she’s worried about. What keeps him up at night. What she’s planning to tackle in the next several years. And if you don’t have access to your CEO, this survey can help you make sure you’re preparing for what may be coming down the pike. These survey results could help you be brilliant for your organization – and for your CEO.

The top ten issues for 2016 identified by U.S. CEOs in the survey are fascinating. They cover regulation, cyber security, tax reform, doing deals, paying attention to customers, investors, employees – and understanding the organization’s higher purpose. A virtual smorgasbord for HR!

Top issues CEOs are expecting to confront in 2016 include:

  1. U.S. market prospects will outshine the low-growth world

  2. Over-regulation will continue to pose a threat to business growth

  3. Regionalization in trade and divergence in economic models and regulatory frameworks, with threats to open Internet

  4. Customers and other stakeholders will expect business to demonstrate a higher purpose over the coming years

  5. Prospects will improve for laying the groundwork for U.S. tax reform

And, in 2016, U.S. CEOs will plan to:

  1. Strengthen the technology foundation to set their business apart

  2. Do more deals, especially domestically

  3. Hold fast in China, while recognizing the bumps along the way

  4. Anticipate the needs of future customers and other stakeholders

  5. Prepare the Millennials for leadership roles

I’m fascinated that 3 of the top ten land squarely in HR’s court: demonstrating a higher purpose (that’s culture), anticipating the needs of…stakeholders (that’s talent), and preparing Millennials for leadership roles (that’s talent development). If you ever wondered whether or not your CEO thinks about HR, the answer is a resounding YES in 2016.

I’m particularly intrigued with the higher purpose issue. It’s no secret that bringing humanity into the workplace is a topic on the minds of many business leaders. Having CEOs concerned that customers, investors, employees, strategic partners all want in on the higher purpose is pretty darned interesting. What are you doing to help the organization understand and communicate its higher purpose this year?

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Anticipating the needs of customers and employees is another thought provoking issue. Addressing employee needs like wellness – physical and financial, parental leave, career development, and providing opportunities to contribute to society are clearly articulated needs of today’s U.S. employees. Are you helping your CEO provide options to meet these needs?

And preparing Millennials for leadership roles is front and center, isn’t it? Investing in their development brings a number of benefits to the organization in addition to deepening your leadership bench. Millennials frequently report that learning and skills development are as – or more – important than compensation growth. Many report that they leave their employers in search of learning and growth opportunities. Investment in their leadership development undoubtedly impacts retention in a positive way. Are you beefing up your succession plan and its supporting programs?

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My guess is that most HR practitioners and leaders are currently thinking about these 3 priorities, among a long list of others. Isn’t it nice to know that your CEO may just be ready to help you tackle these issues?

The bigger question may be, are you ready for your CEO to start asking “what’s the plan?”

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Filed under CEOs pwc, China Gorman, Company Culture, Data Point Tuesday, HR, Leadership Development, Organization Values, pwc, Strategy, Talent Management, Uncategorized, Workplace Culture

Social Recruiting: It’s All About the Mobile

Data Point Tuesday69% of recruiters expect competition to increase in 2015. The demand for highly skilled workers is on the rise, with no indication of plateauing anytime soon. With the fiercely competitive nature of talent acquisition, what can organizations do to make sure their recruiting and organizational talent management functions are up to speed? JobVite’s 2014 Social Recruiting Survey highlights trends, tools, and practices that are making a splash in recruiting effectiveness right now. The annual survey was completed by 1,855 recruiting and human resources professionals across most industries. To succeed in this hyper competitive market, JobVite found that recruiters plan to invest more in social recruiting (73%), referrals (63%) and mobile (51%). JobVite’s key message however, may be that recruiters won’t find just one platform that overwhelmingly wins the quest to engage with candidates. Rather, successful recruiting efforts will involve showcasing the employer brand and engaging with candidates across multiple platforms.

We’ve said it again and again at Great Place to Work®, and JobVite says it also: culture matters. When recruiters were asked what steps they take to compete against other employers, the #1 response was that they highlight company culture, followed by better benefits, and flexible hours. Dec 23 2014 Highligh Company CultureRecruiters stated that they would increase their investment in a number of recruiting platforms in 2014, with the biggest investment in in social recruiting (73%). This will continue be an important area of focus as organizations move into the New Year. Investment in Recruiting Platforms73% of recruiters report that they have hired a candidate through social media. 79% report that they have hired through LinkedIn, 26% through Facebook, 14% through Twitter, and 7% through a candidate blog. It’s also absolutely true that employers will review candidate’s social profiles before making a hiring decision, with 93% of recruiters surveyed doing so. Candidates’ social profiles carry weight, and unfortunately it appears more negative than positive. 55% of recruiters state that they have reconsidered a candidate based on their social profile (up 13% from 2013), however, 61% of those reconsiderations have been negative.

Postive Negative Neutral ChartSocial recruiting delivers results, so if your organization hasn’t seriously invested in this as a method for finding talent, it should be considered. Recruiters surveyed stated that since implementing social recruiting, quality of candidates has improved (44%), time to hire (34%), and employee referrals (30%). Despite the success of social recruiting, only 18% of recruiters consider themselves to be experts at social recruiting.

Social recruiting skill level chartInvesting in social recruiting doesn’t necessarily mean investing large sums of money either. 33% of recruiters surveyed stated that they don’t spend anything on social recruiting, and 41% state that they spend between just $1-$999.

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JobVite also notes that recruiting is “going mobile” as much as every other B2C activity is. 51% of recruiters stated that they plan to increase their investment in mobile recruiting in 2015. They report using mobile across all aspects of recruiting, from posting jobs, searching for candidates, and contacting candidates, to forwarding candidate resumes to colleagues. Job seekers are heavily mobile too, but there is a disconnect between their mobile usage and recruiters. While 43% of job seekers use mobile in their job search, 59% of recruiters report that they invest nothing in mobile career sites. Those that are investing in mobile though, are seeing the benefits. Investing in mobile improves time to hire (14%), improves quality of candidate (13%), improves quantity of hires (19%), and improves quality/quantity of referrals (10%).

So. The lessons to be learned here for talent acquisition professionals are pretty simple: social, mobile recruiting provides higher quality candidates, reduces time to hire and increases employee referrals. Bottom line? It’s all about the mobile.

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Filed under China Gorman, Company Culture, Data Point Tuesday, Great Place to Work, JobVite, Mobile Recruiting, Social Recruiting, Workplace Culture, Workplace Studies