The Ultimate Guide to How Hourly Workforces Work ENGAGING

Transcription

1 2012 The Ultimate Guide to How Hourly Workforces Work ENGAGING

2 About the Guide Your people have the biggest impact on your success and how you manage them makes all the difference. Happy employees create happy customers, meaning higher retention, productivity and revenue for your brand. But what s the secret to making and keeping your team happy? The conducts its annual How Hourly Workforces Work survey for an in-depth look at people-management processes, satisfaction and trends in the service industry. It s the industry s most comprehensive report on what businesses are using today to manage their employees, how happy they are with these efforts and what it all means for you. What does it mean for you? Our Ultimate Guide will help you: Understand what s going on and changing in your industry Pick-up best practices and technologies Benchmark your brand against the industry and your competition In this report Our fifth and final Part explores how businesses like yours track, reward and motivate employees and their performance today. Find out how today s service-industry organizations are using social media to engage and communicate with their teams, and why more and more are focusing on building company culture. What s in it for you? Discover if your employee engagement methods are on-track or out-of-date, and pick-up best practices from the best-of-the-best on how to increase retention, productivity and customer satisfaction with technology. 2

3 Paper/Manual users are 10.6x more likely to conduct annual vs. weekly performance reviews Seven out of 10 service-industry organizations use paper/manual methods to record and track employee performance. Only one in five automates these processes, and even fewer (5%) use an integrated online system. Automation makes it easier to provide continuous, constructive feedback, instead of trying to remember six months worth of shifts for a semi-annual review. Companies that use a software solution conduct performance reviews most frequently and are most satisfied with these processes, compared to those using any other method. Record and Track Process Satisfaction with Frequency 895 total respondents { Paper/Manual 69% Other/Not Sure 6% Individual Software 15% Talent Management 5% 81% 71% 55% x None 4% Outside Consultant 1% Companies using a talent management system to record and track employee performance are 46% more satisfied with performance review frequency 3

4 Companies conducting semi-annual reviews are 323% more likely to report turnover above 75% than those performing weekly reviews Overall, turnover rates climb as review frequency decreases; nearly a quarter of companies conducting weekly performance evaluations report turnover below 25%. Frequent performance feedback improves customer satisfaction and employee engagement. Companies using an automated solution to record and track employee performance are more likely to continuously provide this feedback, helping develop and motivate employees. Paper/ manual methods, however, typically mean formal, infrequent review processes that make it difficult to keep up with everything. Review Frequency by Turnover Rate of 75% % 10.82% 7.45% 7.37% 3.23% Ongoing/Daily Weekly Quarterly Semi-Annually Annually 4

5 Organizations using a talent management system are 71% more likely to engage employees than those using paper/manual methods More than seven out of 10 businesses use paper/manual processes to manage their employee reward and recognition initiatives, and an equal amount of these do not agree that they do a good job of engaging their employees. Talent management users, however, are 71% more likely to report that their employees are engaged. Paper/Manual 71% Other/Not sure 11% None 7% Individual Software 6% Talent Management 4% Outside Consultant 1% Reward and Recognition Process More than eight out of 10 talent management system users report that their employees are engaged Employees Are Engaged Agree Disagree 69% 31% 55% 45% 36% 64% 75% 25% 82% 18% 60% 40% 5

6 Communicating via mobile is 208% more effective for engaging employees than paper and in-person methods Overall, the majority of service-industry businesses (69%) communicate via paper and in-person. Large companies are more likely to use an automated system, but smaller companies report the highest mobile and social media communication method adoption. Online systems may include these methods and more, but small organizations are more likely to use them individually, since they don t have as many people or processes to coordinate and/or implement as do larger companies. Companies using mobile methods phone call, text, smartphone app or IVR report the highest employee engagement; nine out of 10 organizations that communicate via mobile report their employees are engaged. Those using a talent management system are 45% more likely to engage employees vs. businesses with paper and/or in-person communication processes. Engaged Not Engaged Paper/ In-Person Exchange Mobile (App, Text Message, IVR) Social Media Company network Individual Software Talent Management Not Sure Other Small organizations are 9x more likely to use mobile and social media communication methods than extra-large ones 6

7 Managing employee reward and recognition programs are 46% easier with a talent management system vs. individual software systems Overall Ease of Engagement Task Overall, managing employee engagement initiatives performance evaluation, rewards and recognition and workforce communication via an online system is the easiest and most efficient method. Companies not implementing these programs at all have the most difficulty engaging and retaining their people. Online talent management systems connect all peoplemanagement systems and business data, so engagement efforts are streamlined, efficient and more effective, companywide. Individual software systems are standalone, so they aren t able to tie performance feedback information into training, for example, to help employees hone certain skills. Talent Management 55% 46% 33% Individual Software 77% 57% 45% Paper/ Manual 70% 67% 52% Recording and Tracking Employee Performance Rewarding High- Performing Talent Communicating with Employees and Management Recording and tracking employee performance is 38% easier with an online system vs. paper/manual processes 7

8 Fostering company culture is 31% easier with an online system vs. paper/manual processes and 20% easier than with individual software systems Organizations are most likely to provide mission and values statements to foster and communicate company culture; they are least likely to interact with employees online. Overall, extra-large organizations are ~2x more likely to conduct tasks that encourage and help cultivate company culture, rather than using more passive methods, like postings and handouts. Talent management systems make it easier to foster and communicate company culture, because they serve as a central, all-in-one management and communication system that can engage employees through training courses, shout-outs, invites, feedback and surveys, daily exposure to mission/values and more. Small 54% 33% 50% 48% 32% 66% 18% 51% 44% 10% 3% Communicate and Foster Company Culture by Providing Mission/Values Statement Offering Training Courses Displaying Materials (posters, handbooks, etc.) Holding Informal Events Hosting Company Events Encouraging Employee Feedback Conducting Employee Surveys Recognizing Employees Rewarding Employees Interacting Online Other 2% Extra Large 88% 77% 82% 50% 67% 70% 62% 78% 69% 27% 8

9 One out of 10 businesses aren t currently using social media and don t plan to start within the next 12 months Most organizations using social media leverage these networks for marketing and promotion purposes and are focused on engaging customers. Extra-large organizations are nearly 2x as likely to incorporate social media into every aspect of their business and people management, compared to small ones. Social media can be just as, if not more, powerful in engaging your employees as it is your customers. Especially among today s mobilesocial workforce, incorporating social media networks and tactics into your hiring, training, scheduling and engagement programs can increase retention, productivity and revenue. Use Social Media For 66% Marketing/ Promotions 55% Customer Engagement 54% Brand Awareness 37% Recruitment 10% Rewards and Recognition 21% Hiring 10% None (don t plan to start within next 12 months) 15% Workplace Communication 8% None (plan to start within next 12 months) Only a third of businesses use social media to recruit new employees 7% Training 4% Scheduling 3% Onboarding 9

10 Providing great customer service is 22% easier with a talent management system vs. paper/manual processes Happy team members make for happy customers, and businesses that manage and engage employees via an online system report higher efficiency and overall satisfaction rates than those using any other method(s). Because talent management systems connect all of an organization s people, processes and paperwork within one system, it s easier to keep track of it all, company-wide. When processes are automated, organized and more efficient, managers and employees can focus on delivering an exceptional customer experience, every time. Two-thirds of talent management users believe providing great customer service is easy Ease of Providing Great Customer Service by Process 67% Talent Management Paper/Manual 55% 10

11 Methodology The conducts its annual How Hourly Workforces Work survey to gauge people-management processes, satisfaction, challenges and trends in the service industry. For the 2012 survey, PMI used a combination of primary and secondary research methods to determine how businesses today manage hiring, training, scheduling, performance, recognition and communication tasks and initiatives; and the impact these processes have on satisfaction, efficiency, effectiveness and business success. A team of researchers compiled and analyzed nearly 900 responses from service-industry stakeholders across the country, over a period of eight weeks. Only fully completed surveys were considered in analysis. About PMI Definitions To streamline its findings, PMI defines certain results including business size, methods and challenge/satisfaction levels in grouped and/or general terms. These definitions apply throughout the entire report, and any exceptions are noted otherwise. Business size Small companies, businesses, brands and/ or organizations refer to entities that report having 1-50 employees; Medium, employees; Large, 300-1,000; and Extra-large includes any with more than 1,000 employees. General or overall findings include results from all business sizes. Smaller refers to small and medium-sized businesses, while Larger includes large and extralarge businesses. Challenge/Satisfaction levels (cont.) Similarly, respondents rated satisfaction by selecting their agreement level for provided statements. Respondents could rate their level of agreement as: Agree, Somewhat Agree, Neither Agree nor Disagree, Somewhat Disagree and Disagree. Statements are considered a challenge or difficulty, and respondents are considered to not agree, for all respondents who do not choose Somewhat Disagree and Disagree. The (PMI) is the thought leadership source for the HR industry, PeopleMatter and service-focused organizations worldwide. PMI provides extensive research and education tools to help businesses and individuals understand, manage and motivate their most important asset: their people. Access the on the Web at Up next Check out the entire Ultimate Guide to How Hourly Workforces Work, including our Hiring, Scheduling, Training and Engaging how-tos. Discover the most effective and efficient ways to find, develop and manage your people with the latest service-industry stats and best practices from best-of-the-best brands. If you re interested in learning more about how PeopleMatter s all-in-one people management Platform can increase your retention, productivity and efficiency and make your employees and customers happier talk to our sales team today! Respondents Due to the large number of respondents from foodservice and small companies, some findings are slightly skewed toward the opinions and results of this demographic. Small companies generally report lower turnover rates and typically find tasks less challenging than larger organizations. As a result, some findings may not be consistent with industry averages or larger survey findings. Where applicable, standard figures are provided and noted. Challenge/Satisfaction levels Challenge and satisfaction levels are measured by respondents difficulty and agreement ratings to provided statements. For challenges, respondents could rate statements as Difficult, Somewhat Difficult, Neither Difficult nor Easy, Somewhat Easy and Easy. Statements are considered a challenge or difficulty or not easy for all respondents who do not choose Somewhat Easy and Easy. Efficiency is calculated from difficulty-level differences. Grouped methods As a general rule, traditional methods or processes refer to paper, manual and/or face-to-face task-completion or management. Electronic and Automated techniques include individual software systems and talent management systems. , mobile and social media method can also be grouped under Electronic, Automated and Online where applicable. Mobile methods may refer to technology that allows users to complete and manage tasks away from a home or office computer. Mobile methods may include , Webbased systems, smartphone apps and more. Rounding Due to rounding, some figures may not total 100 percent. Additionally, some questions allow respondents to choose multiple answers, and totals may exceed 100 percent. 11