Tag Archives: Employee Loyalty

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.

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

Purpose: A Hedge Against Organizational Challenges

Data Point Tuesday

The Deloitte “2014 Core Beliefs and Culture Study” proves it again, that those workplaces who focus on creating a meaningful environment for all their stakeholders (customers, employees, and communities) foster a culture of purpose that builds confidence, drives investment, and “can lead to competitive advantage in a time of economic vitality.” The survey was conducted in February of this year and is designed to explore the concept of workplace culture, defined by a set of timeless core values and beliefs, as a business driver. This year’s survey looks specifically at whether a strong sense of purpose leads to higher levels of confidences among stakeholders and drives business growth. Methodology included the survey of a sample of 1,053 adults (300 executives and 753 employed adults) employed full time within an organization with at least 100 employees.

Evidence from the survey indicates that focusing on purpose rather than profits is what builds business confidence. What do organizations define as purpose though? When respondents were asked about activities that are part of the purpose of their organization, the top 5 cited answers were:

  • Providing business services and/or products that have meaningful impact on clients/customers (89%)
  • Providing business services and/or products that benefit society (84%)
  • Providing employees with education, experience, and/or mentorship benefits (77%)
  • Encouraging employees to volunteer (74%)
  • Generating financial returns for our stakeholders/shareholders (69%)

Deloitte “2014 Core Beliefs and Culture Study”

Deloitte also found that those respondents who agree they work for an organization with a strong sense of purpose were more likely to say their organization recorded positive growth (81% vs. 67%) and outgrew competitors (64% vs. 44%) in 2013. When looking to the future, respondents who say their organizations have a strong sense of purpose are also much more optimistic about the future prospects of their organizations: 91% of respondents who believe their organization has a strong sense of purpose feel that their company will maintain or strengthen its brand reputation and loyalty vs. 49% of respondents at organizations without a strong sense of purpose.

Organizations with a strong sense of purpose tie confidence to three main factors:

  • a commitment to delivering top quality goods/services
  • focus on long term sustainable growth
  • clear understanding of organization’s purpose and commitment to core values.

Companies reporting they do not have a strong purpose however, find confidence tied almost exclusively to financial factors:

2014 Core Beliefs and Culture Study

When looking at priorities of leadership at these companies, we see a similar trend. For organizations that report having a strong sense of purpose, making a positive impact on clients is ranked most often as the top priority for leadership vs. leadership at companies without a strong sense of purpose, who most often report short-term financial goals as their top priority (the study notes that there were no major differences in top leadership priorities as stated by employees and executives).

Purpose also appears to drive investment. Respondents at organizations with a strong sense of purpose are consistently more likely to say their organization will increase investments year over year than companies without a strong sense of purpose, especially in areas such as:

  • New technologies: 38% vs. 19%
  • Expanding into new markets: 31% vs. 21%
  • Developing new products/services: 27% vs. 17%
  • Employee development and training: 25% vs. 11%

Companies with a strong sense of purpose also perceive higher levels of confidence among key stakeholders – 89% of respondents say their clients trust that they deliver the highest quality products and services (vs. 66% at organizations without strong purpose).

If this data isn’t enough to suggest that there really is something to creating a strong sense of purpose and values at an organization, Deloitte’s data also detail that more fully engaged employees, greater diversity, and encouragement of innovation are also more present at organizations reporting a strong sense of purpose. Despite the benefits though, 20% of respondent’s state that leadership fails to set an example for the rest of the organization by truly living the organization’s purpose and 18% say it is not part of performance evaluations.

Once again, the data are persuasive. Organizations with strong missions that are focused on more than profits are clear winners creating successful, sustainable businesses. Put another way, creating a strong purpose-focused culture may be the best hedge against the difficult economic, political and talent challenges facing most organizations today.

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Filed under China Gorman, Culture, Data Point Tuesday, Deloitte, Leadership, Workplace Studies

Connecting Dots: Employee-style

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Back in July, I referenced data from the Glassdoor Q2 2012 Employment Confidence Survey.  If you’ll recall, this quarterly survey monitors four key indicators of employee confidence:  job security, company outlook, salary expectations and re-hire probability.  The Q4 2012 Survey from Glassdoor is out and the results are interesting.

It’s probably not shocking to anyone who reads this blog that half (51%) of employees (including self-employed people) will consider looking for a new Glassdoor logojob if the state of the economy stays the same or improves, with 33% looking for a new job in less than a year and nearly one in five (18%) planning to look for a new job in the next three months.  We’re hearing that our employee base is not engaged and other sources have said that as much as 90% of the employed population will look for a new job in 2013.

Glassdoor ECS Q412 - consider looking for a new job

What’s interesting to me is that, if you look at other data points in this survey, it makes perfect sense that a high percentage of employees think they’ll look for work this year. Why?  Well, according to the survey, 39% of employees don’t expect a pay or cost-of-living increase in 2013 and 21% aren’t sure if they’ll get an increase this year.

Glassdoor ECS Q412 - salary-expectations (2)

So.  60% of employees don’t think – or aren’t sure – they’ll get an increase this year.  I’m thinking that has something to do with the percentage of employees who will be looking for a new job this year.  And guess what?  The most important factor these employees say that will influence their decision on whether or not to accept a job offer is…wait for it…salary and compensation!

Employees are pretty good at connecting dots:

I don’t think I’m going to get a raise this year   +

I’ll be looking for a new job this year  =

The most important factor in my decision to accept a new job will be the salary and compensation

Makes perfect sense to me.

But I also think that a majority of employees will receive raises of some sort this year.  Even small ones.  So why do so many think that there is no soup for them?

Perhaps we’re causing this supposed exodus ourselves by not communicating clearly – at the employee level – what our compensations plans for this year are.  Or, maybe we’re being extremely clear and they don’t believe us.

Either way, it’s a problem.  Either way, we should never forget that our employees are smart and know how to connect the dots.

Maybe it’s time we do the same.

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Filed under China Gorman, Compensation, Connecting Dots, Employee Loyalty, Engagement, Glassdoor, HR Data

Data Point #9: Employer Loyalty Isn’t Dead? Wait. What?

MetLife published its 10th Annual Study of Employee Benefit Trends on March 19th, 2012.  At 80 pages, it’s a read.  But it’s a fascinating read.

The report shows clearly that the strong role of workplace benefits in driving employee attraction, retention and productivity continues as reported by these MetLife studies during the last 10 years and persists today during the slow economic recovery.  Interestingly, the study correlates satisfaction with benefits to employee job satisfaction, and also shows clearly that employees who are dissatisfied with their benefits are more likely to want to work somewhere else.

The data are fascinating.  And I recommend the investment of 30 minutes to read it through.

The data point that I found most interesting in the study follows:

I haven’t seen anyone discuss employer loyalty to employees in a long time.  I think I assumed, by looking at other trends, that the issue of employer loyalty was long dead.  Building employee loyalty, however, was a whole other discussion:  we call it employee engagement.  And employers are starting to pay attention to this issue because of the rapid shift in workforce demographics coming down on us like a load of bricks. (See my posts on this topic here and here.)

But where has been the focus on employer engagement? Have we all assumed that employer loyalty is dead and gone forever?  That employees “know the score” and don’t expect employers to be loyal to them?  Well, MetLife reports that between 2008 and 2011 employer loyalty scores have increased 5% from 52% to 59%!  Wait.  What?

In the same time period, however, the perception by employees that their employers are loyal to them has decreased 8% from 40% to 32%.  How pitiful is that?  Employers think they’re doing better, but employees aren’t getting the message.  And in fact, more of them aren’t getting the message as time goes on.

I think this is interesting.  Despite all the attention being paid to employee engagement – through salary, through benefits, through recognition, through providing strong ethical cultures, through providing meaningful and interesting work — in fact, the study finds evidence of a widening disconnect between employers and employees.

Job insecurity and expectations that benefits will be cut may well be contributing to employees feeling less important to their employers.  This “loyalty gap” presents an immediate opportunity for HR and C-Suite leaders to really step up communication and feedback about their increased loyalty.  Of course, the proof is in the pudding, and for employees to believe that their employer is growing more loyal to them, they are going to have to see a change in behavior – if they stick around long enough.

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Filed under China Gorman, Culture, Demographics, Employee Benefits, Employee Loyalty, Employer Loyalty, Engagement, MetLife, Talent pipeline, Uncategorized