THE GALLUP ORGANIZATION ROMANIA Managing Employee Engagement in

THE GALLUP ORGANIZATION ROMANIA Managing Employee Engagement in this Crisis THE GALLUP ORGANIZATION Copyright © 2009 The Gallup Organization, Princeton, NJ. All rights reserved. 1

Employee satisfaction vs. ROI THE GALLUP ORGANIZATION 2

Engagement Predicts: • • • • Profit (+) Sales (+) Productivity (+) Employee Turnover (-) Customer Loyalty & Engagement (+) Safety Incidents (-) Absenteeism (-) Theft (-) Company Advocacy (+) Satisfaction with Leadership (+) Life Satisfaction (+) Stress (-) Mortality (-) THE GALLUP ORGANIZATION 3

Findings Disengagement is Very Expensive Engaged work units have higher success rates (improvement in probability of success: above-average performance) Employee Retention + 50% ENGAGED WORK UNIT Customer Safety + 56% + 63% Productivity + 38% Profitability + 27% +94% +78% (composite of direct outcomes) (composite of all five outcomes) Composite Performance THE GALLUP ORGANIZATION Overall Performance Copyright © 2009 The Gallup Organization, Princeton, NJ. All rights reserved. 4

“Focused”: Finding the right questions • 3+ Million Employee Interviews • 10+ Million Customer Interviews • 2+ Million “Fit to Role” Reviews • 200, 000 Managers Interviews • 100, 000 Leadership Interviews • Concurrent study of recent advances in neuroscience, psychology and economics. THE GALLUP ORGANIZATION Copyright © 2006 The Gallup Organization, Princeton, NJ. All rights reserved. 5

® 12 Q Gallup Engagement Index XYZ Company by Sales Unit Engaged Not Engaged Actively Disengaged THE GALLUP ORGANIZATION Copyright © 2006 The Gallup Organization, Princeton, NJ. All rights reserved. 6

® 12 Q Using the items, Gallup can calculate the following three categories of employees: • Engaged Ø These employees are loyal and psychologically committed to the organization. They are more productive, more likely to stay with their company for at least a year, less likely to have accidents on the job, and less likely to steal. These employees have most of their performancerelated workplace needs met. • Not Engaged Ø These employees may be productive but they are not psychologically connected to their company. They are more likely to miss workdays and more likely to leave. These employees have some of their performancerelated workplace needs met but have many needs unmet. • Actively Disengaged Ø These employees are physically present but psychologically absent. They are unhappy with their work situation and insist on sharing that unhappiness with their colleagues. These employees have most of their performance-related workplace needs unmet. THE GALLUP ORGANIZATION Copyright © 2006 The Gallup Organization, Princeton, NJ. All rights reserved. 7

Business is common sense 1. COMMUNICATION 2. CHANGE MANAGEMENT 3. HOPE THE GALLUP ORGANIZATION 8