Tag Archives: Culture

Want To Improve Your Business Outcomes?

data-point-tuesday_500

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.

gallup-employees-are-leaving-2017

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:

gallup-engagement-2017-original

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.

3 Comments

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

Is Your Organization An ACE?

data point tuesday_500

I rarely do book reviews here at Data Point Tuesday. When I do, it’s because the book is written specifically for my readers, HR professionals in the trenches, and because I know and respect the author. Today I’d like to recommend just such a book.

fulfilled-schiemannFulfilled! Critical Choices:  Work, Home, Life, written by William A. Schiemann, will be available on October 1. Lucky me, I got an advance copy and loved it! If you’re active in SHRM, then you have probably heard Bill speak at the Annual conference or at one of many state conferences where he continuously supports the HR profession. I saw Bill two weeks ago at the KYSHRM conference where we both keynoted. He’s a Ph.D. researcher, writer and consultant bringing evidence-based research into practical and useful focus for organizations of all types and sizes.

Fulfilled! Is a guidebook as well as a workbook – it helps you organize and chart the steps to find meaning in your life and your work, as well as supporting your organization in creating a culture where every employee can find that meaning. It’s full of true individual examples of people achieving real meaning as well as examples of people who missed the waypoints along the way and never achieved true fulfillment.

From an organizational perspective the organizing concept is ACE: alignment, capability and engagement, which Bill calls “People Equity.” Bill’s consulting firm, Metrus Group, has found that organizations with high People Equity have:

  • Higher profits or reach their goals more effectively
  • More loyal customers who buy more
  • High employee retention
  • Higher quality output

“The organizations that achieve high People Equity (high alignment, capabilities, and engagement) have a distinct advantage over their competitors. And the individuals who apply this concept to their live also win…”

I really appreciated both the individual and organizational discussions about alignment, capabilities and engagement. They are simple and easily understood – and so impactful. This is one “How-To” book that ought to be on every HR leader’s bookshelf.

I don’t want to give away the good stuff – the book is available on Amazon on October 1 and you should get it. But here’s a final view at the final chapters of the book, Life Lessons:

Lesson 1:  Keep the end in mind

Lesson 2:  Nurture your body

Lesson 3:  Build a social network (but have at least one fantastic friend)

Lesson 4:  Always seek things you are passionate about

Lesson 5:  Take reasonable risks

Lesson 6:  Never stop learning – never!

Lesson 7:  Stick to your values and spirituality

Lesson 8:  Resilience – find the silver lining

Lesson 9:  Give and get

Lesson 10:  Check in with yourself regularly – force it!

You may think to yourself, I’ve read this book before. But I assure you, you haven’t. Bill brings to life real people who made good decisions as well as mistakes; who risked it all and who played it safe; who learned and who never learned. And the organizing principle of People Equity is truly a new view backed by years of research and real life practice.

And after you’ve read Fullfilled!, take it with you to your next HR conference. Chances are good that Bill will be keynoting and you can get him to autograph it for you!

 

Leave a comment

Filed under Balance, Business Success, China Gorman, Culture, Data Point Tuesday, Engagement, Happiness at Work, HR, HR Books, Human Resources, Performance, Productivity

Are You Putting All Your Eggs Into The Engagement Basket?

data point tuesday_500

George LaRocque, Founder and Principal Analyst at #HRWINS, has published a new report that caught my eye. Where Purpose Meets Performance:  Can HR Tech Solve Culture, is an interesting look at the culture challenges of the U.S. middle market (5,000 and fewer employees) which employs roughly 90% of the U.S. workforce.

Here’s where he grabbed me:

“Studies show that companies with performance enhancing cultures far out-perform those without it in terms of revenue growth, stock price growth, and net income growth. Yet, it remains nearly impossible to tie HR and people programs to business results. Business leaders and HR practitioners have looked to employee engagement as a measure of successful corporate culture but first even defining employee engagement presents a challenge. There have long been efforts to standardize its definition and measurement, and the result has been just the opposite. We’ve seen a proliferation of science and methods narrowly looking at everything from happiness to community embeddedness, social network analysis, motivation and incentives, collaboration, personality and culture assessments, and more.”

What follows is an interesting discussion, with 3 strong case studies, that shows how the acquisition and deployment of core HR technology is supporting the increase in HR credibility and impact on corporate performance, as well as greater employee satisfaction. It’s interesting stuff and incudes results from several surveys that George put out in the field.

At 20 pages, it isn’t a long read and is well organized. The main points cover the following:

  • What employees rate as the leading drivers of their feeling of engagement.
  • What employers feel are the HR and people programs delivering the best ROI.
  • How employee engagement fits in the new world of work.
  • What role core HR technology plays in building culture and aligning with business performance.

The survey work underpinning this analysis lead George to believe as I do:

“…perhaps the strongest component of culture that resonates with employees, of ALL generations, is having purpose and meaning in their work.”

The survey results, as shown below, show that, at least in the vast middle market, Baby Boomers and GenX are the most interested demographic as it relates to meaning and purpose. That’s not what you expected, is it? But it tracks with my research and observations.

#HRWINS 1

This report includes several such graphs and data points that provide solid context for whatever thinking and planning you’re doing regarding culture, engagement and your employee experience. Putting all your eggs in the “engagement” basket will most likely not produce the returns you expect. There are stronger fundamentals that may well have a stronger positive impact on your employees’ experience. Especially if you’re in the middle market.

Leave a comment

Filed under #HRTechTrends, #HRWINS, Baby Boomers, China Gorman, Culture, Data Point Tuesday, Employee Engagement, GenX, George LaRocque, HR Technology, Millennials

Engaged and Committed or Dazed and Confused?

data point tuesday_500

There are a great deal of research and writing about engagement. Sometimes, I think it’s all we see. And there are a lot of solutions providers who will help you measure engagement, diagnose why engagement is low, increase engagement – and any other thing you want to do with or about engagement.

Here’s the challenge:  every one defines engagement in a different way. It’s enough to drive you crazy. It drives me crazy. Maybe not dazed and confused, but definitely crazy. I spend most of my time at the intersection of corporate culture, business performance, what I call humanity. You could just as easily call it engagement – except I think humanity is bigger than engagement.

My particular bias against “engagement” notwithstanding, my friends at Effectory International in Amsterdam have published a very interesting report introducing their compilation of this year’s Global Employee Engagement Index (vol. 3). I am interested in this report for three reasons:

  1. I know and like these folks a lot
  2. I actually like their definition of engagement
  3. They’ve indexed engagement globally – in 54 countries around the world

It’s pretty interesting reading. Here’s how they think about engagement:

The basis of engagement – or what people want from work:

Effectory 1

This is a much more complete definition than most. I like the “compelling company culture” language – not a one-size-fits-all definition of culture. I like the inclusion of freedom (see www.worldblu.com ) at work. And I especially appreciate the inclusion of immediate managers in the mix, along with exceptional leaders in the C-Suite.

I also think that their data have credibility because they can show regional differences in engagement drivers around the world:

Effectory 3

With data that show a global average of engaged and committed employees of 29%, they are also able to break it out by region:

Effectory 2

The discussion that follows is engaging (see what I did there?) and the analysis of this year’s data covers topics like:

  • Why businesses need employee engagement
  • What people want from work
  • Why engaged and committed employees leave
  • Specific strategies for strengthening the four “pillars” of engagement

There are several case studies, as well as a number of key takeaways that you’ll want to note as you think about your culture and your employees.

You may not have heard of Effectory International, but you should get acquainted with their work through this analysis and report. It may reduce your level of dazedness and confusion. I think you’ll thank me.

2 Comments

Filed under China Gorman, Culture, Data Point Tuesday, Effectory International, Employee Engagement, Employee Loyalty, Engagement, Freedom at Work, Global Employee Engagement Index, WorldBlu

The ROI of Working Human

data point tuesday_500

The SHRM Foundation’s latest Effective Practice Guideline, Creating a More Human Workplace Where Employees and Business Thrive, was released just in time for the SHRM Annucal conference this week. The timing couldn’t have been more appropriate, as it follows on the heels of last month’s WorkHuman conference.

If you’ve been following Data Point Tuesday for a while, you know I’m a big fan of the SHRM Foundation’s EPGs. They are researched, written, and reviewed by leading academics in the Human Resources field, and are underwritten by some of the most innovative suppliers in the HR arena. This EPG, sponsored by Globoforce, brings a great deal of data and analysis into one easily read report. In other words, it’s chock full of validated research and data on a topic that is becoming top of mind for CEOs, boards, and all C-Suite members:  the connection between employee well-being and business success.

The business case for creating a more human workplace is made in the first section of the report. It includes Strategies that pay off, High costs of our current work culture, and Multiple benefits of a thriving work culture. A few of the gems from this section include:

  • The American Psychological Association estimates that workplace stress costs the U.S. economy $500 Billion (!) a year.

  • Workplace stress increases voluntary turnover by nearly 50%.

  • Gallup estimates that poor leadership associated with active worker disengagement costs the U.S. economy $450 – $550 Billion (!) per year.

  • 550 Billion workdays are lost annually due to stress on the job.

  • 60 – 80% of workplace accidents are attributed to stress.

The supporting data showing how detrimental most workplace cultures are to their financial success are proliferating. Even if treating employees as if they were human beings wasn’t the right thing to do, the numbers alone make it hard to understand why creating more humanity-focused cultures aren’t the leading priority for every single organization and for every single CEO!

Once past the business case, the report lays out a thorough treatment on how to fix your culture in the section, Seven Ways to Help Employees Thrive. Not rocket science, but rather simple common sense, these seven elements come with case studies, examples and specific “how tos” for you to consider in your own organization.

  1. Share Information About the Organization and Its Strategy
  2. Provide Decision-making Discretion and Autonomy
  3. Create a Civil Culture and Positive Relationships
  4. Value Diversity and Create an Inclusive Atmosphere
  5. Offer Performance Feedback
  6. Provide a Sense of Meaning
  7. Boost Employee Well-Being

Citing employers like Alaska Airlines, Genentech, General Mills, Ritz-Carlton, Microsoft and many others, author Christine Porath loads this EPG with practical tips, examples and evidence.

At its heart, however, humanity-focused workplaces start at the top. They start with trustworthy leadership and sustainable leadership behaviors. This graphic says it all:

EPG May 24 2016

This report shows, once again, that there is absolutely no downside to not only treating employees humanely, but consciously and intentionally investing in their well-being. When our employees feel respected as individuals, appreciated for their contributions, and supported in their family lives and community commitments, as well as their physical health and mental well-being, our organization missions are more likely to come to fruition and all of our stakeholders – every single one of them – will be more than happy with the return on their various investments.

Thanks to the SHRM Foundation’s newest EPG, The ROI of Working Human has never been more clear.

 

1 Comment

Filed under China Gorman, Christine Porath, Company Culture, Culture, Data Point Tuesday, Effective Practice Guidelines, Employee Engagement, Employee Stress, Engagement, Globoforce, HR Data, SHRM Foundation

Accelerating Culture Change Through Leadership Development

data point tuesday_500

 

I recently ran across the third report in the Real Work Leadership series of reports from Korn Ferry. Create an Engaging Culture for Greater Impact looks at changing culture through the lens of leadership development. An interesting take.

The report is the analysis of a global survey of views on leadership development fielded in July and August of 2015. With more than 7,500 survey responses from 107 countries, 3 in 4 of the leaders who responded were from their organizations’ business functions; the remainder were from HR. That’s pretty unusual and made the results more interesting. Remember those demographics as you see some of the findings below.

Respondents ranked their top 7 priorities for leadership development within their organizations. Remember, only 25% of the global pool of respondents were in HR.

Korn Ferry 4

I was interested to note that only one of the top seven priorities for leadership development is operationally performance driven:  #4, Accelerating time to performance. Right in the middle of the pack. #1 and #3 were change related, and #2 was talent acquisition related. I find these surprising from a group overwhelmingly made up of non-HR leaders. But looking at the final three – Driving engagement, Diversifying the leadership pipeline, and Becoming more purpose and values driven – enables me to back off of my surprise. If these were the only choices from which to rank the important leadership development priorities of senior leaders, then the only real surprise is that Accelerating time to performance is not rated the top priority.

The survey analysis goes on to suggest that Developing leaders to drive strategic change really means developing leaders to accelerate culture change. That would be really interesting if true. That would mean that 5,625 very senior business leaders around the world think that changing their culture is their very top priority. That would be outstanding. For someone like me, who thinks that culture is the one of the most critical business sustainability dynamics, this is music to my ears.

The report is mostly about leadership development. That’s a big part of Korn Ferry’s business. So that makes sense. And there are a number of interesting data points that you might want to consider in your business. Things like the following:

Korn Ferry 1

 

 

 

 

 

But this:

Korn Ferry 2

 

 

Korn Ferry 3

 

 

 

 

 

 

 

Remember again that the vast majority of respondents in this survey were not HR leaders. But the data ought to give HR leaders all over the world ammunition to begin to link their leadership development strategies to their organization’s business strategies in new and compelling ways. Especially as they relate to culture change. Perhaps this from the report is one of the most simple descriptions of the interconnectedness of culture, leadership, and strategy – and so, performance:

“The starting point for organization alignment is mission, purpose, and strategy. Ideally top leaders define these elements, the path to execution , and the values and behaviors that will support implementation and success.  Once they have done so, these individuals must communicate this information clearly, consistently, and repeatedly throughout the organization.”

I liked this survey analysis. We talk about culture all the time. (Well, I talk about culture all the time.) We don’t often talk about culture through the lens of leadership development, though. And as this paper reports, leadership development – particularly as we are in the midst of a demographic sea change of Biblical proportions – may be an integral strategy for moving cultures forward for performance, for talent acquisition, and for business sustainability.

3 Comments

Filed under China Gorman, Culture, Demographics, Change Management, Data Point Tuesday, Learning/Development, Leadership Development, Korn Ferry

Should Leaders Wear Their Hearts On Their Sleeves?

data point tuesday_500

Most readers of Data Point Tuesday know that I’m focused these days on the intersection of culture, organization performance and humanity in the workplace. Deloitte’s new culture change solution unit, CulturePath, has just published a white paper that has an interesting spin on culture, organization performance and employee emotion. This statement in the executive summary of Take your corporate culture off cruise control; Power up the emotive engine in your workplace, really caught my eye:

“A variety of forces are coming together to make cultural alignment a priority for most companies… By getting deeper into how cultures work, and by pushing the emotional connections, companies can actively manage their culture to drive critical business outcomes.”

I believe “emotional connections” is another way of describing humanity. So I read the rest of the report with interest.

Deloitte reports (through its annual Human Capital Trends report) that 87% of executives cite “culture and engagement,” the highest of all HR-related challenges, as one of their top challenges – with a full 50% describing the challenge as very important. This is stunning. Whether or not 87% of executives are expressing their concern about their organization’s culture and the state of employee engagement in that organization is beside the point. Culture is becoming more than strategy’s breakfast. It’s becoming a context within which leaders are beginning to pay attention to human beings rather than skillsets. And this new report gives some insight into just why execs are paying to attention to emotion and humanity.

The section, “Putting emotion in the culture equation” is another attempt by consultants and researchers to emphasize the value of the Deloitte CulturePath 1human. The value of the heart. We need this. Deloitte’s particular push, aligning culture with business strategy, seems the right way to go and suggests that there are three primary avenues to make emotional connections with talent:

 

  • Higher purpose – pride in the mission helps lead to commitment to the organization as a whole
  • Examples from the top – the stories and actions from leaders at the top have power much greater than any “program” communication
  • Participation – by linking the deeds of individuals at every level to larger goals, meaning can be generated across the organization. If every action is linked to the higher purpose, talent will generally be more committed.

It’s becoming more and more clear that connecting emotionally to employees through their humanity is a winning approach to innovation, productivity, competitiveness, and top- and bottom-line growth. Leaders who focus on building their trustworthiness, accessibility and comfort with transparency are far more likely to appear human and to relate more effectively with the humans in their workforce. Turns out, emotions are a good thing. And wearing your heart on your sleeve just might make you a better leader – and improve your organization’s performance.

Leave a comment

Filed under China Gorman, Company Culture, Culture, CulturePath, Data Point Tuesday, Deloitte