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Measuring the Business Impact of Employee Engagement

Date post: 12-May-2015
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Executives want to know how employee engagement makes a difference to the bottom line; however, comparisons between employee engagement and business metrics are often difficult to create. This presentation provides examples of how the best organizations compare business data to employee engagement survey scores to drive business decisions. These slides provide samples of the following: Migration Analysis: How many of our fully engaged employees left the company this past year? Manager Engagement: How much influence does manager engagement have on teams? Attrition Index: Which group of employees is at the highest risk of leaving? Customer Satisfaction: How does engagement impact customer satisfaction by location? Workers Compensation: Which group of employees submitted the most claims?
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1971 North State Street, Provo, UT 84604 USA // +1.801.960.1400 // decision-wise.com Measuring the Business Impact of Employee Engagement Leadership Intelligence ® Webinar
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Page 1: Measuring the Business Impact of Employee Engagement

1971 North State Street, Provo, UT 84604 USA // +1.801.960.1400 // decision-wise.com

Measuring the Business Impact

of Employee Engagement Leadership Intelligence®

Webinar

Page 2: Measuring the Business Impact of Employee Engagement

Measuring the Business Impact of Employee Engagement

2

1971 North State Street, Provo, UT 84604 USA // +1.801.960.1400 // decision-wise.com

200+ clients in 70 countries and 30 languages 7,000+ 360-degree feedback surveys in 2013

Coach executives around the world Train leaders on coaching skills

Page 3: Measuring the Business Impact of Employee Engagement

Measuring the Business Impact of Employee Engagement

3

1971 North State Street, Provo, UT 84604 USA // +1.801.960.1400 // decision-wise.com

5 Obstacles When Comparing Business Metrics

Page 4: Measuring the Business Impact of Employee Engagement

Measuring the Business Impact of Employee Engagement

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1971 North State Street, Provo, UT 84604 USA // +1.801.960.1400 // decision-wise.com

Possible business metric comparisons

Page 5: Measuring the Business Impact of Employee Engagement

Measuring the Business Impact of Employee Engagement

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1971 North State Street, Provo, UT 84604 USA // +1.801.960.1400 // decision-wise.com

Engagement spectrum

Fully Disengaged Opportunity Group Key Contributor Fully Engaged

< 2.49 2.5 - 3.49 3.5 - 4.49 > 4.5

4% 24% 49% 23%

Make sarcastic jokes about work.

Spend significant time taking care of personal

needs.

Stick to what you know and take few

risks.

Feel stretched beyond your comfort zone.

Speak poorly about the company and

leaders.

Do just enough to get by and not get in

trouble.

Respond well to leadership.

Take personal satisfaction in the

quality of your work.

Look for ways to find blame.

Pay is a big reason why you stay.

Rarely stretched by assignments.

Work can be stressful but is also rewarding

and fun.

You quit, stay, and corrupt.

You’re putting in the time.

Committed to your job.

You love your job!

Page 6: Measuring the Business Impact of Employee Engagement

Measuring the Business Impact of Employee Engagement

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1971 North State Street, Provo, UT 84604 USA // +1.801.960.1400 // decision-wise.com

Engagement index

4%

24%

49%

23%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Fully Engaged

Key Contributors

OpportunityGroup

Fully Disengaged

Page 7: Measuring the Business Impact of Employee Engagement

Measuring the Business Impact of Employee Engagement

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1971 North State Street, Provo, UT 84604 USA // +1.801.960.1400 // decision-wise.com

Manager engagement

How does the engagement level of the manager influence the engagement of his or her employees?

36%

24%

14% 14%

48%

51%

43% 45%

12%

20%

34% 32%

3% 5%

9% 9%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Fully Engaged (n=808) Key Contributor (n=1154) Opportunity Group (n=292) Fully Disengaged (n=46)

Em

plo

ye

e E

ng

age

me

nt

Gro

up

s (%

of

To

tal)

Manager Engagement Groups

Fully Engaged

Key Contributors

Opportunity Group

Fully Disengaged

Page 8: Measuring the Business Impact of Employee Engagement

Measuring the Business Impact of Employee Engagement

8

1971 North State Street, Provo, UT 84604 USA // +1.801.960.1400 // decision-wise.com

Attrition index

I see myself working at this company this time next year.

High Turnover Potential Moderate Turnover Potential

Engagement Category 1-Strongly Disagree

2-Disagree 3-Neutral 4-Agree 5-Strongly

Agree

Fully Engaged n=305

0% 2% 5% 21% 72%

Key Contributor n=651

0% 4% 21% 53% 22%

Opportunity n=318

3% 4% 55% 30% 8%

Fully Disengaged n=54

43% 28% 17% 12% 0%

Page 9: Measuring the Business Impact of Employee Engagement

Measuring the Business Impact of Employee Engagement

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1971 North State Street, Provo, UT 84604 USA // +1.801.960.1400 // decision-wise.com

Customer satisfaction

Locations with the greatest gains and top 10 percent of engagement scores shows the greatest increase in customer satisfaction.

2.70%

1.97%

0.74%

0.20% 0.05%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

Greatest Gains Top 10% Overall Average Bottom 10% Greatest Losses

Cu

sto

me

r S

atis

fact

ion

Var

ian

ce

Fully Engaged Group Variance

Customer Satisfaction Variance by

Fully Engaged Group Variance (year over year)

2.7 x

3.7 x

Page 10: Measuring the Business Impact of Employee Engagement

Measuring the Business Impact of Employee Engagement

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1971 North State Street, Provo, UT 84604 USA // +1.801.960.1400 // decision-wise.com

Workers compensation claims

Percent of employees with claims.

9.1%

6.6%

5.0% 5.8%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

Fully Disengaged (n=66) Opportunity Group (n=182) Key Contributor (n=635) Fully Engaged (n=589)

Page 11: Measuring the Business Impact of Employee Engagement

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1971 North State Street, Provo, UT 84604 USA // +1.801.960.1400 // decision-wise.com

Union vulnerability

The following table shows the results of the 2013 Union Vulnerability Index.

Category (Mean Score Range)

High

Vulnerability (<2.49)

Opportunity (2.5-3.49)

Moderate

Vulnerability (3.5-4.49)

Low Vulnerability (>4.5)

2011 Percentage 10% 26% 44% 21%

2012 Percentage 10% 17% 33% 41%

2013 Percentage 12% 26% 43% 19%

Note: Totals may vary slightly due to rounding.

Page 12: Measuring the Business Impact of Employee Engagement

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1971 North State Street, Provo, UT 84604 USA // +1.801.960.1400 // decision-wise.com

Engagement migration analysis

Page 13: Measuring the Business Impact of Employee Engagement

Measuring the Business Impact of Employee Engagement

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1971 North State Street, Provo, UT 84604 USA // +1.801.960.1400 // decision-wise.com

DecisionWise employee engagement solutions

4%

24%

49%

23%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Fully Engaged

Key Contributors

OpportunityGroup

Fully Disengaged


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