Outsourcing Inspiration Using Feedback to Boost Engagement Zoe

Outsourcing Inspiration: Using Feedback to Boost Engagement Zoe Maltby Research Manager People. Metrics, Inc zoe. maltby@peoplemetrics. com 215. 979. 8033

What You’ll Learn • Why Employee Engagement Matters • The Impact of Organizational Change on Employee Engagement • The Importance of Creating Purpose • How to Use Customer Feedback to Inspire 2

About the Employee Engagement Trends Study Purpose: Get a pulse check on employee Engagement in the US across industries Methodology: Partnered with Research Now to complete 2, 512 surveys; employee criteria included: – Work at least 30 hours/week – Organization with at least 500 employees – Representative across gender, age, geographic location, ethnicity, industry, etc. Administration: Online survey fielded May 12 -17, 2011 3

Defining Engagement 4

An Engaged employee Agrees or Strongly Agrees with the following four statements: RETENTION EFFORT ADVOCACY PASSION “It would take a lot to get me to leave the organization I work for” “Being part of my organization motivates me to go beyond what is expected” “I recommend my organization as a great place to work” “I love my company/organization” 5

Teams with high levels of Engagement sell over 20% more than teams with low levels of Engagement Sales Performance Employee Engagement and Sales Performance $500, 000 $408, 000 $438, 000 (client data, 2007) Low Medium High Sales Team Engagement 6

Employee Engagement and Voluntary Turnover Attrition rates nearly double for employees with low Engagement Attrition 28% 20% 15% (client data, 2007) Lowest Middle Highest Engagement Levels 7

Employee Engagement and Customer Satisfaction/Loyalty 65% Interactions with highly Engaged employees impact customer satisfaction and loyalty % Favorable 63% 57% 58% 40% 29% (client data, 2007) Overall Service Consider for next loan Medium/Low Engagement Consider for next deposit account Better than other financial institutions High Engagement 8

So, What’s Going on with Engagement? 6 out of 10 employees are not Engaged Layoffs/restructuring = significantly lower Engagement 90% have experienced some kind of change 9

Data Tip #1: Handle supervisor change with caution 41 g% nt eme a Eng rage Ave Change in supervisor No Promotion No change in supervisor No Promotion No Change in supervisor Promotion 37% Engaged 46% Engaged 52% Engaged 59% Engaged 10

Data Tip #2: Clarify career paths 63% % Engaged 54% 9 -point gap 38% 22 -point gap 16% Have clearly defined career paths Have work/life balance Lack clearly defined career paths Do not have work/life balance 11

But change is inevitable. How can leaders keep employees engaged during the process? 12

Data Tip #3: Understand what drives Engagement No improvements since 2007 13

Recognition Drives Engagement No improvements since 2007 14

Customer Focus Matters No improvements since 2007 15

Fun at Work is Key No improvements since 2007 16

Clear Growth Opportunities Play a Role No improvements since 2007 17

Trust in Leadership Creates a Bridge to Engagement No improvements since 2007 18

A Sense of Purpose Tops the Pyramid Significant improvements since 2007 No improvements since 2007 19

Emotional Fulfillment Keeps Employees Engaged 20

Sectors with a Natural Purpose do Better… 51% 44% 43% 42% 34% Healthcare Banking / Financial Services Leisure / Hospitality Manufacturing Business / Prof. Services 33% Retail ENGAGEMENT BY SECTOR 21

Creating Purpose in Work How to Outsource Inspiration 22

Happy Employees Happy Customers Happy Shareholders “Our company strategy is all about happy Team Members (internal customers) lead to happy customers, which leads to improving profits, which leads to happy shareholders. ” (independent study participant, 2011) 23

Two Types of Companies in the Study Company-centric Base decisions on what’s best for the company; ideas are generated from within company employees customers vs. Customer-centric Base decisions on what’s best for the customer; ideas are generated from the customers employees company 24

cus·tom·er – cen·tric adj ’kəs-tə-mər -sen-trik Definition of CUSTOMER-CENTRIC 1 : A company that makes customers a part of the mission, listens to their feedback and has a customer base that is highly loyal 2 : A company where employees are - Empowered to handle customer issues - Invited to give ideas on the customer experience - Given customer feedback insights - Recognized when they have done a good job serving customers Related to CUSTOMER-CENTRIC Synonyms: customer focus, consistent, customer service, genuine, trustworthy Antonyms: company-centric, disengaged, frustrating, unfocused, inconvenient Note: This definition was defined by survey respondents from the 2011 Employee Engagement Trends Report 25

Being Customer-Centric Helps Engage Employees… Employees working in customer-centric organizations are 6 x More likely to be Fully Engaged 26

The New Service-Profit Chain ENGAGED EMPLOYEES Customer feedback Employee actions Deliver great customer experience ENGAGED CUSTOMERS BUSINESS RESULTS Revenue growth, high profitability Buy more, buy more often, recommend, share feedback 27

Sharing customer feedback… Rallying Your Troops 1. Makes an impact on the employee 2. Demonstrates appreciation 3. Elicits empathy 28

Great Customer Service Becomes Contagious Excellent Customer Service Employees Want to Go Above and Beyond Employees find purpose when they see how work impacts the customer experience Excellent Customer Feedback Customer feedback is shared internally 29

Allow your employees to be brand ambassadors 86% Agree/Strongly Agree 83% Agree/Strongly Agree 70% Agree/Strongly Agree 2007 72% 2011 2007 “My organization is committed to delivering exceptional service to our customers” 2011 “Employees at my company are empowered to handle customer issues” “I work in customer service myself and I love it, but I often find the company procedures don't allow the above and beyond service they say they want us to give. ” (independent study participant, 2011) 30

What Does This Mean For You? 31

1. Recognize Employees Who Go Above & Beyond Employees receiving customer recognition are 4. 5 times more likely to be Engaged than those not receiving this feedback (55% vs. 12%) 32

2. Empower Employees to Solve Customer Problems “We are given the freedom to perform our duties as we deem necessary…to keep our customers happy. We're empowered to Empowered Employees Unempowered Employees help the customer when an issue arises with minimal 88% need to call upon a supervisor. We're given the 53% 48% tools we need to help our customers and to be 16% independent workers as much as possible. ” (independent study participant, 2011) Engagement Index Customer Loyalty source: independent study, 2011 33

3. Understand What Motivates Your Employees • Talk to your employees • Use data that your company is already collecting • Find ways to embed the drivers of Engagement in your organization 34

4. Team Up It’s not your job alone! 35

Outsource Inspiration 36

QUESTIONS… INTERESTED IN: • A copy of this slide deck • The complete 2011 Employee Engagement Trends Report • Speaking with me personally about how your organization is managing Employee Engagement Email me at zoe. maltby@peoplemetrics. com www. peoplemetrics. com | 1717 Arch Street, Philadelphia, PA | info@peoplemetrics. com 37