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Simplified Understanding ALBERTA BENCHMARK September 2013
Simplified Understanding
ALBERTA BENCHMARK
S e p t e m b e r 2 0 1 3
What is Employee Satisfaction Insights?
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Straightforward approach to accurately
measuring employee satisfaction and
understanding what is helping or hurting
an organization’s ability to keep staff
happy (or better, delighted)
and loyal to your organization.
Start to finish in as
little as 4 weeks
Advantages of Our Approach
3
Flexible
National, BC and Alberta normative comparisons
Fast Turnaround
Cost Effective
Expertise
Employees have reassurance results are confidential
Projectable, quantifiable data
Expert question design
Recent Benchmarks
Less than you think: starting at $5,000
8-10-minute survey with
room to add custom
questions or add-on tools
Employee Satisfaction Insights Methodology
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Employee satisfaction (overall and on 15 drivers)
Employee loyalty/retention
Employee engagement on 8 attributes
Driver analysis of 15 satisfaction attributes and 8 engagement attitudes versus overall satisfaction
Profiling analysis to identify groups more/less satisfied/loyal
ü 522n online interviews with Albertans 18 years or older who are employed full or part time
ü Margin of error is +4.3 percentage points, 19 times out of 20
ü Field work June – July 2013
ü Sample weighted in analysis by age and gender according to Census Canada figures
This report provides results from the normative wave in Alberta. Its purpose is to highlight key features of the Employee Satisfaction Insights
tool as well as demonstrate typical deliverables.
National and BC normative benchmarks also available.
• As a whole, most employees are happy with their employers, with overall ratings as well as ratings on many specific factors very positive.
– Still, it is a small minority (about one in four) who are “delighted” by their employer (giving them a nine or ten out of ten).
– And only a similar small percentage would highly recommend them to others. Further, there are more “detractors” than “promoters” on the recommend scale; on a traditional NPS, this means employers are in a negative position (-2).
– Finally, and perhaps most concerning, more than half would consider leaving if the right opportunity came up.
• Segmenting the market of employees based on overall rating and overall loyalty, 7% of employees are “delighted” with their employer yet would still consider leaving and 25% are “happy” and would still consider leaving – this means that one-in-three staff may be entirely happy, yet not loyal.
Insight: Job satisfaction does
not necessarily equate to loyalty. As such,
organizations face a significant challenge in
staff retention and need ways to improve their odds that valued
staff will stay.
Key Insights
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• Driver analysis was done with 15 attributes ranging from salary, job security, working conditions, policies, relationships and processes. These attributes are similar to those that Herzberg* would have termed “hygiene” factors – that is, those that an organization must perform well on in order to prevent employees from becoming dissatisfied but yet do not necessarily lead to higher levels of motivation.
– Of these drivers, results find that communications from senior management, and company processes and procedures and staff morale quite significantly outweigh the other factors in driving satisfaction.
– In contrast, the more “basic” attributes like benefits, bonus, vacation time, and wages/salary are less critical, as are working relationships with colleagues.
Insight: As Herzberg pointed
out, both hygiene and motivational factors work together and employers need to
pay attention to both. This research suggests
which aspects of each will give an employer the most “power” in
improving job satisfaction and
ultimately loyalty. Among hygiene
factors, staff morale outweighs all else; for motivational factors, rewards for when an
employee goes above and beyond stands
out.
• Driver analysis with 8 “commitment” factors or statements was also undertaken and these factors are like those that Herzberg would have termed “motivational” factors.
– Of the 8, the one of most critical importance in driving job satisfaction is being rewarded for doing a good job.
Key Insights (cont.)
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Francis Herzberg’s Motivation-Hygiene Theory.
• When it comes to how employees feel about their employers on those same 15 attributes, they are happiest (at least seven out of ten satisfied) with their current employer when it comes to personal relationships (with their co-workers especially, but also supervisors) and a number of other basics like job security, vacation time, physical work environment, work/life balance and benefits.
• The fewest employees are happy (fewer than six out of ten) when it comes to bonuses (even confined to being among those who receive them), and opportunities for advancement.
Insight: Satisfaction ratings together with driver
analysis results suggest that the areas that
employers most need to focus on improving
(those that are important and yet
employees are not as satisfied with) are:
communications from senior management, company processes
and procedures, stress levels and in
rewarding deserving employees for a job
well done.
• Of the 8 commitment factors, it is clear that employees (more than nine-in-ten) feel that are committed to the success of their organization, understand what is required of them and and understand how their role contributes to the company goals.
• On the less positive side, far fewer (under seven in ten) agree that they are rewarded for doing a good job.
Key Insights (cont.)
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As a way of demonstrating that we “practice what we preach”, Insights West makes for a good case study of what one employer has done to attract some of the best talent in the industry and ensure that employees are not just happy with their jobs, but fully committed to the organization’s success.
A Case Study
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Incorporated in 2012, Insights West is a progressive full-service research firm that provides insights-driven research solutions and interpretative analysis. It currently has 10 full-time and 5
part-time employees. Many of those employees followed the head of the company (Steve Mossop) from their previous employer (a large global research firm) to this new venture. Many have become shareholders, personally investing in Insights West. Staff work hard and have fun
doing it – they are not afraid to pitch in and do anything needed to make the company a success – from sanding the floors of the new office to working on the weekend to make a tough
deadline. So what has Insights West done to inspire this level of loyalty and commitment?
ü Clear company values: Our company values were integral to the very first business plan written and are posted on our website.
ü Passion for what we do and for doing it right: Every researcher, panel manager and marketer at Insights West is in the business because they love what they do – simply put, passion for the job is key hiring criteria. It is also an ongoing expectation with all the work that we do – that it is done right, and meets or exceeds every clients’ research needs.
A Case Study (cont.)
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ü Respect for individuality: There is no “one size fits all” attitude at Insights West – each employee is encouraged to find the specific aspects of their job that they excel at and also to try new things. This means that we’re allowed to do tasks that engage us and yet might be outside of our usual job description: like the panel manager who designs infographics and the chief methodologist who organizes our electronic filling system. This also means that individual working styles (such as different working hours and working from home) are embraced because we know that respect for employees’ individual needs shows our trust in them.
ü Strong leadership that communicates and listens: Steve Mossop is an inspiring leader – he cares for the people who work for him and it shows. Never stuffy, always welcoming new ideas from any staff member, he treats all members of the team (no matter how senior or junior) as if they and their opinions matter. He communicates regularly and clearly about the goals of the company and the progress towards those goals. Our Vancouver office is an open office, with no assigned desks or closed offices; all staff sit together when they are in the office (including Steve). End result: staff feel like they are an integral part of building a new, exciting company.
ü Rewards: Salaries are market-competitive and benefits are generous and flexible (a simple dollar limit for each employee). When an employee goes above and beyond, they are rewarded. These rewards span from the more traditional (salary increases, bonuses, free stock, etc.) to the more ad-hoc (a Friday off, free flight, tickets to the PNE, dinner out, etc.).
ü Fun corporate culture: We take time to have FUN – celebrating success, Friday afternoon cocktails, practical jokes in the office – creating a work culture that people want to be part of.
Simplified Understanding
DETAILED FINDINGS
10 – Excellent
9
8
7
6
5
4
3
2
1 – Poor
10%
15%
25%
23%
11%
7%
3%
3%
1%
2%
Understand how your employees rate your organization in comparison to the benchmark.
Overall Rating of Employer
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Base: Total respondents (n=522) A9. How would you rate your organization overall as a place to work?
Delighted 26%
Happy 47%
Not So Happy 27%
Average 7.2
19%
12%
21% 16%
7%
12%
3% 2%
2% 5% 10 - Extremely likely to recommend
9
8
7
6
5 - Neutral
4
3
2
1
0 - Not at all likely to recommend
Taking it a step further, understand if your employees are more or less likely to promote your organization as a place to work and assess the level of risk they are saying negative things to others.
Likelihood to Recommend Employer
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Base: Total respondents (n=522) A10. If someone you knew were looking for a job, how likely would you be to recommend your employer as a place to work?
NPS -2
Promoters 30%
Detractors 32%
Passives 37%
NPS Definition: (Net Promoter Score)
= Promoters less Detractors
20%
Subgroup analysis will allow us to identify those employees who are most/least content.
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21% 29%
18-34
35-54
55+
Delighted NPS
28% +5
23% -5
28% -12
$
< $40k
$40k to < $70k
$70k +
Personal Income
Decision Making
Work Status Gender
$
Job Type Years w/ Employer
+2 27%
21%
27%
Professional
Management
Admin.
Worker
27% 32%
23% 20%
-8 +3 22% -10
Age
< 2
2 to 9
10+
Delighted NPS
31% +9
24% -3
23% -10
-12
-4
0
+3
+9
-5
-16
Manage Others
Who’s Happy and Who’s Not
Delighted (9-10/10)
26% 0
27% -1
22% -5
32% 24%
+11 -7
Higher than comparison group(s) Base: Total respondents (n=522)
Dissatisfied Satisfied
Working relationship with colleagues
Working relationship with supervisor
Job security
Vacation time
Physical work environment
Work/life balance
Benefits
Training and learning opportunities
Wages or salary
Staff morale
Stress level
Company processes and procedures as they impact you
Communication from senior management
Opportunities for advancement
Bonus
43%
44%
41%
38%
31%
35%
32%
27%
26%
25%
21%
19%
19%
23%
21%
91%
84%
83%
80%
80%
77%
75%
69%
69%
66%
65%
64%
64%
58%
51%
3%
6%
5%
5%
5%
8%
11%
10%
10%
13%
14%
12%
15%
13%
25%
9%
16%
17%
20%
20%
23%
25%
31%
31%
34%
35%
36%
36%
42%
49%
Identify where your organization is succeeding and where it could use more work relative to benchmark. Attributes custom to your organization can be added.
Rating of Employer on Specific Drivers (Among Those For Whom Specific Applies)
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Base: Total respondents excluding not applicable (base varies for each attribute) A7. How would you rate your satisfaction or dissatisfaction with each of the following?
Very satisfied Somewhat satisfied Somewhat dissatisfied Very dissatisfied
Communication from senior management
Company processes and procedures
Staff morale
Job security
Stress level
Physical work environment
Training and learning opportunities
Working relationship with supervisor
Work/life balance
Wages or salary
Opportunities for advancement
Vacation time
Working relationship with colleagues
Bonus
Benefits
12.5%
11.7%
11.0%
9.6%
7.5%
7.1%
6.8%
6.3%
5.3%
4.3%
4.2%
4.0%
3.5%
3.4%
2.8%
Driver analysis using results for your organization can determine what is contributing most to satisfaction and what is not working as hard for you relative to benchmarks.
What Drives Overall Workplace Rating?
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Drivers Share of 100%
Base: Total respondents excluding not applicable (base varies for each attribute)
Reward/Penalty
Communication from senior management 65
Company processes and procedures 102
Staff morale 91
Job security 151
Stress level 76
Physical work environment 127
Training and learning opportunities 75
Working relationship with supervisor 126
Work/life balance 214
Wages or salary 68
Opportunities for advancement 48
Vacation time 95
Working relationship with colleagues 226
Bonus 151
Benefits 90
Base: Total respondents excluding not applicable (base varies for each attribute)
Penalty-Reward Analysis shows more specifically how these drivers can be helping or hurting.
Overall Rating of Employer
• EXTRA CREDIT: Particularly important reward relative to penalty.
• CAN HURT YOU: Particularly important penalty relatives to reward.
Penalty Reward
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Sweet Spot
Danger Zone Eh
Derived Importance (Share of Importance)
Satis
fac
tion
(To
tal S
atis
fied
)
Less Important
More Important
More Satisfied
Less Satisfied
Brownie Points
Comparing satisfaction to importance allows you to identify where your organization should focus its resources.
Where to Focus Efforts
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Base: Total respondents excluding not applicable (base varies for each attribute)
Staff morale
Communication from senior management
Company processes and
procedures as they impact you
Working relationship with supervisor
Physical work environment
Wages or salary Training and learning opportunities
Opportunities for advancement
Bonus
Stress level
Work/life balance
Working relationship with colleagues
Vacation time
Benefits
Job security
50%
60%
70%
80%
90%
100%
0% 5% 10% 15%
I understand what is required of me
I am committed to the success of my organization
I understand how my role contributes to the company goals
I love the work that I do
I am encouraged to offer my opinions and ideas
My skill set is used effectively
I have enough freedom to make decisions
I am rewarded for doing a good job
59%
56%
52%
43%
41%
41%
36%
28%
94%
94%
91%
85%
82%
80%
78%
68%
Understand how your organization is doing relative to benchmarks on attitudes related to job “commitment.” Statements custom to your organization can be added.
Commitment Factors
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Base: Total respondents excluding not applicable (base varies for each attribute) A8. How much do you agree or disagree with the following statements about your current job and employer?
Agree Disagree
3%
4%
5%
6%
4%
9%
6%
6%
9%
15%
18%
20%
22%
32%
Strongly agree Somewhat agree Somewhat disagree Strongly disagree
I am rewarded for doing a good job
I am encouraged to offer my opinions and ideas
I am committed to the success of my organization
My skill set is used effectively
I have enough freedom to make decisions
I love the work that I do
I understand how my role contributes to the company goals
I understand what is required of me
25.6%
17.4%
14.6%
13.9%
8.3%
8.1%
8.1%
4.0%
Driver analysis using results for your organization can determine what is contributing most to satisfaction and what is not working as hard for you relative to benchmarks.
How Commitment Factors Drive Overall Workplace Rating
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Share of Total Importance
Higher than comparison group(s) Higher than comparison group(s)
Higher than comparison group(s)
Higher than comparison group(s)
Base: Total respondents (n=522)
44%
44%
9%
3%
Future loyalty intentions provide added insight beyond satisfaction.
Likely Future Loyalty
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Base: Total respondents (n=522) A11. Which of the following best describes what you think about your current job?
No plans to leave
Not actively looking, but would consider a new opportunity
Actively looking for a new job
Don’t know
May Leave 54%
38%
Subgroup analysis allows us to understand who is more likely to be loyal than others.
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43% 44%
$
< $40k
$40k to < $70k
$70k +
Personal Income
Decision Making
Work Status Gender
$
Job Type Years w/ Employer
46%
45%
43%
Professional
Management
Admin.
Worker
45% 51%
40% 41%
49%
Age
Manage Others
Who is More Likely to Stay Loyal
No plans to leave
42%
42%
44%
49% 45%
Higher than comparison group(s) Base: Total respondents (n=522)
<2
2 to 9
10+
41%
44%
46%
18-34
35-54
55+
45%
39%
54%
18%
23%
32%
17%
6%
2%
1%
1%
0%
0%
3%
10%
19%
27%
16%
11%
5%
5%
2%
2%
Combining overall rating and future loyalty metrics allows us to segment employees; it provides an understanding that the overall employer rating is only a starting point and will not guarantee employee loyalty.
Does Overall Workplace Rating Translate Into Likely Future Loyalty?
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Base: Total respondents (n=522) A9. How would you rate your organization overall as a place to work?
10 – Excellent
9
8
7
6
5
4
3
2
1 – Poor
Delighted 41%, 13%
Happy 50%, 45%
Not So Happy 10%, 42%
Base: Total respondents excluding don’t know (n=506)
18%
7%
22% 25%
4%
23%
Delighted and no plans to leave Delighted but may leave Happy and no plans to leave Happy but may leave Not so happy yet no plans to leave Not so happy and may leave
Overall Workplace Rating Status (Rating and Loyalty)
Average 8.1, 6.5
No plans to leave May leave
Simplified Understanding
RESPONDENT PROFILE
Employment Metrics
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Base: Total respondents (n=522) A5. When it comes to your role at work, would you say you are…?
Employment Status Years with Employer
A6. How many years have you worked for your current employer?
1 to less
than 5 34%
10 or more 30%
Part-time 16%
Full-time 84%
5 to less than 10 22%
Less than 1 14%
Professional
Administrative, coordination, finance, office or sales support
Other/middle/junior-level manager/supervisor
Technical or paraprofessional
Tradesperson
Worker/labourer
Other sales/service
Sales representative
Owner/President/CEO
C-suite/EVP/SVP/Partner/VP
18%
17%
14%
11%
8%
7%
6%
5%
2%
2%
Job Type/Level
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Base: Total respondents (n=522) A2. Which of the following best describes your job level or role?
Health care/social assistance Educational services
Mining/quarrying/oil and gas extraction Retail/trade
Construction Manufacturing
Professional/business services/consulting/agency Arts/entertainment/recreation
Transportation/warehousing Finance/insurance
Scientific/technical services Public administration
Accommodation/food services Travel/tourism
Agriculture, forestry, fishing Utilities
Real estate/rental and leasing Administrative and support, waste management and remediation
Information/cultural industries Wholesale trade
15% 8% 8% 8%
6% 5% 5%
4% 4% 4% 4%
3% 3%
2% 2% 2% 2%
1% 1% 1%
Industry
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Base: Total respondents (n=522) A4. Which of the following best describes the industry you work in?
Employment Metrics
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Decision Making Role Employees Managed
None 17%
More than 10
18%
5 to 10 11%
1 to 5 20%
None 51%
Base: Total respondents (n=522) A5. When it comes to your role at work, would you say you are…? A3. How many people, if any, do you directly or indirectly manage?
Sole decision maker
11%
Key influencer
28% Partial
influencer 44%
Simplified Understanding
Catherine Dawson Senior Vice President & Chief Methodologist [email protected] (604) 620-7101
