Employee Engagement

Ged Horn

2

Why you are here - The ISS Value Chain

Defining playing fields, rules and strategic priorities

Turning strategic priorities into attractive and operational service offerings

Engaging capable individuals in all positions

Delivering on promises

Following up on customer experience to identify area for improvement

Managing sales effectively

Boosting the Business Platform

3

We Operate in 53 Countries and have > 541,000 employees

4

... Our greatest asset is our engaged employees

Customer Experience

Business Results

Engaged Employees

Shareholder Value

Engaged employees are key to delivering shareholder value

“That’s why all leaders at every level of the organisation need to adopt, promote and be

passionate about the ISS Leadership Principles – promoting teamwork and collaborating across

borders and business – ensuring that each and every of our employees work towards our shared

vision of being the Worlds Greatest Service Company ”

That is why we need to lead by example

5

Our Leadership Principles...

6

…strong Leadership impacts our business results…

7

• Using the Leadership principles drives Employee Engagement

• Engaged Employees deliver a better service to the customer leading to higher customer satisfaction

• Resulting in a greater return for our shareholders

Driving leadership Behaviour is driving our business …

And we know it works! It’s a simple correlation.

0

8

CB

III

Mar

gin

Employee NPS-60 60

0

10

CB

III

Mar

gin

Customer NPS-60 60

8

Net Promoter Score 2013 - Place to work

9

How likely would you be to recommend ISS to others as a good place to work?

This question was asked on an 11-point scale. The scoring method is shown in the following figure:

Overall ENPS is calculated by subtracting the % of Detractors from the % of Promoters.

Extremely likely

Not at all

likely

Promoters Passive Detractors

Promoters

= 31%

Detractors

= 44%

ENPS score-13

ISS 2014 LEADERSHIP CONFERENCE

2012-18

2013-13

2020+40

Employee Net Promoter Score

ISS 2014 LEADERSHIP CONFERENCE

UK Employee Net Promoter by Department Score

ISS 2014 LEADERSHIP CONFERENCE

UK Employee Net Promoter by Department Score

Executive summary 2013: Key Facts

High performing companies defined as >50 international companies (surveyed by Hay Group in the past 5 years) which exceeded industry averages in terms of 5-Year ROA, ROI and ROE by 40% to 66%.

1. The largest population so far surveyed; 19,525 people. Response rate = 51.3%

2. Results show improvements in sense of direction, trust in leaders, commitment to equal opportunities and delivering to customers

3. However there are some declines, in having the tools and equipment needed, training and learning and development

4. Work environment remains highly enabled, significantly more than high performing companies

5. White collars scores improved around clarity of direction, discussions with managers, trust in leaders, delivering to customers, and health and safety, but declined around intention to stay and pay.

6. Another slight decline in employee’s expectations of action as a result of the survey, suggests that there may be a lack of traction here

Hay Group’s Employee Effectiveness framework

Our flexible framework uniquely focuses on both engagement and enablement

Clear & promising direction Confidence in leaders Quality & customer focus Respect & recognition Development opportunities Pay & benefits

Performance management Authority & empowerment Resources Training Collaboration Work, structure, & process

Drivers

Employee Engagement Commitment Discretionary effort

Employee

EffectivenessEmployee

Effectiveness

Employee Enablement Optimised roles Supportive environment

Productivity

Financial performance

Attraction and retention of talent

Customer loyalty

Innovation

Enhanced corporate reputation

Dimension summary 2013

vs. 2012

Employee Enablement +1

Managing Performance -2*

Delivering for Customers (wc only q’s) +2

Respect and Well-Being +1*

Employee Engagement +1

Training and Development -2

Senior Leadership (wc only q’s) +3

Recognition and Pay -1

Career Development and Talent (wc only q’s) +1

78

74

74

73

69

69

68

60

54

13

12

18

16

17

17

23

18

31

10

14

8

12

14

14

10

23

15

100%

63%

41%

38%

30%

51%

50%

34%

48%

55%

22%

17%

24%

14%

22%

18%

16%

13%

9%

2%

10%

10%

23%

10%

8%

13%

14%

14%

13%

33%

29%

34%

17%

24%

37%

25%

22%

7-Board Director

6-Director

5-Senior Manager

4-Middle Manager

4-Prof/Tech

3-Admin Manager

3-Junior Manager

2-Admin

2-Supervisor

1-Operative

Most Effective Frustrated Detached Most Ineffective

Segmenting Employee Level Effectiveness

Comparison to Services norm

54 9 14 23

2012: 50 11 13 26

2012: 36 16 12 36

2012: 46 21 7 26

2012: 40 22 9 29

2012: 40 14 12 35

2012: 40 22 11 27

2012: 39 22 13 26

2012: 59 28 0 13

The Admin Manager population has seen the largest increase in the Most Effective segment compared to 2012. The Prof/Tech population has seen the largest decline in the Most Effective segment compared to 2012.

N= 15,413

N= 842

N= 1,156

N= 42

N= 79

N= 1,455

N= 106

N= 83

N= 142

N= 6

23%

25%

34%

39%

40%

52%

54%

31%

37%

38%

41%

41%

42%

44%

63%

20%

21%

19%

21%

21%

16%

22%

30%

10%

12%

10%

9%

11%

12%

9%

17%

21%

15%

10%

10%

5%

3%

10%

15%

18%

16%

18%

19%

16%

11%

40%

33%

32%

30%

29%

27%

21%

30%

37%

32%

33%

32%

28%

28%

17%

H&SIT

FinanceOperations

SupportHR

Sales

Damage ControlHard Facility Services

Retail ServicesSoft Facility Services

SecurityCatering

LandscapingCleaning

Most Effective Frustrated Detached Most Ineffective

Segmenting Employee Service TypeEffectiveness

Comparison to Services normThe Cleaning, Sales and HR populations have the largest Most Effective segment.The H&S and IT populations have the smallest Most Effective segment.

N= 9,053Service:

Support:

N= 715N= 2,994 N= 911N= 746N= 214N= 79N= 81

N= 67N= 56N= 169N= 1,333N= 212N= 24N= 30

Taking action by Job Level

I believe that action will be taken as a result of this survey

Job Level UK Responses Q23

ISS UK 19,525 61

1-Operative 15,413 63

2-Admin 842 43

2-Supervisor 1,156 54

3-Admin Manager 42 56

3-Junior Manager 79 57

4-Middle Manager 1,455 55

4-Prof/Tech 106 29

5-Senior Manager 83 54

6-Director 142 81

7-Board Director 6 100

Whilst Board Directors and Directors are highly positive that action will be taken, this drops notably for senior managers. Lowest scores are for Prof/Tech and Admin staff.

10 = Score is 10 or more greater than: ISS UK

10 = Score is 10 or more less than: ISS UK

Taking action by Job Level

Annual appraisal by Job Level

I have had an annual appraisal within the last 12 months

Job Level UK Responses Q16

ISS UK 19,525 60

1-Operative 15,413 57

2-Admin 842 69

2-Supervisor 1,156 51

3-Admin Manager 42 73

3-Junior Manager 79 76

4-Middle Manager 1,455 80

4-Prof/Tech 106 54

5-Senior Manager 83 94

6-Director 142 99

7-Board Director 6 100

10 = Score is 10 or more greater than: ISS UK

10 = Score is 10 or more less than: ISS UK

Those at 2-Supervisor level are least likely to have had an appraisal in the last 12 months

More improvements than declines in white collar opinion since 2012

Improved since 2012:

-        ISS has a clear sense of direction (+6)

-        I regularly talk with my manager/supervisor about how well I do my job (+4)

-        I have trust and confidence in the senior leadership of ISS UK (+3)

- We keep the promises we make to our customers (+3)- Health and safety is taken seriously in ISS (+3)

White collar scores have declined around intention to stay and pay.

Declined since 2012:

-        Expressed intention to continue working at ISS UK (-4)

-        I believe my pay packet is as good as I would get in a comparable job elsewhere (-3)     

 

White collar scores have improved around clarity of direction, discussions with managers, trust in leaders, delivering to customers, and health and safety.

Employee Development

People Development Routes

People Development

Exporting UK Talent

Its our in our DNA

Thank you