5/19/2016 THINKING BIGGER. Top Five Human Resources Challenges

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1 Boosting Organizational Performance by Creating a Thriving Workplace Culture of Wellbeing Ali Payne Wellbeing & Practice Leader South & North Regions Chris Dustin Managing Director & Senior Advisor 2015 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 0 THINKING BIGGER 1 Top Five Human Resources Challenges Controlling healthcare expenses Recruiting qualified employees Staying current on healthcare reform and other regulations Retaining talented employees Increasing employee satisfaction/engagement While healthcare costs remain the #1 challenge, gaining an edge in the competition for talent ranks is a key priority for high-performing organizations striving to create an employer of choice environment. 2 1

2 The Evolution of Wellbeing Then Physical health emphasis Benefits strategies for cost management Now Multi-dimensional (employee and family) wellbeing with strong social networks value proposition, become an employer of choice Right program and vendor Participation incentives Right culture and environment Inspire change, support, sense of purpose Inconsistent alignment with mission/vision/values, desired culture, key business objectives Wellbeing as a cultural imperative that drives engagement and enables high performance 3 The Multiple Dimensions of Wellbeing Physical Health Social/ Emotional Health Financial Health Career Health Community Health The WHOLE person comes to work every day... & each employee s wellbeing influences individual and organizational performance 4 The Power of Highly engaged employees are more likely to. Be agile and resilient Have strong relationships and be active in their community Be in control of their finances Have fewer safety incidents Have fewer health problems and lower healthcare costs Display excellent performance Stay with their employer! Help clients assess and build a culture that Our supports and promotes a healthy and engaged Opportunity workforce AND helps execute on their EVP 5 2

3 What s Your EVP? Creating a framework that enables employees to grow with an organization is important to employee engagement, loyalty and wellbeing. 6 CREATING A FRAMEWORK 7 It s All About Culture Behavior is highly influenced by culture, environment and social norms Culture Behavior Risk Cost 65 to 70% of an individual s overall health status is determined by individual lifestyle behaviors ~US Centers for Disease Control~ 8 3

4 A High-Performance Culture Engaged Attachment to the company & willingness to give extra effort Enabled A work environment that supports productivity & performance Energized Individual physical, social & emotional wellbeing at work Source: Adrian Gostick & Chester Elton, All in: How the best Managers Create a Culture of Belief and Drive Big Results (2012) 9 Top Wellness Components Emerging Trends: Financial Wellness Onsite healthcare Wearable devices Community Volunteering Challenges/Gamification Onsite Coaching 10 Analyzing Your Workforce? Does your benefits strategy reflect your workforce and what they value today, tomorrow, next year, and beyond? 11 4

5 Creating a Culture of 3 Key Drivers of 1. Relationship with immediate supervisor 2. Belief in senior leadership 3. Pride in working for the company! Our How do you inspire your people everyday they Opportunity come to work? If not you, then who inspires them? Source: Dale Carnegie Training (2012) What Drives and why it Matters 12 WHAT IS EMPLOYEE ENGAGEMENT? 13 The Effect engagement predicts outcomes market penetration revenue & profit margin employee turnover customer satisfaction employee safety customer safety on-time delivery employee wellbeing productivity & efficiency decreased on-the-job injuries reduced legal cases positive social media impact brand awareness! ONLY if it is measured properly 14 5

6 The Evolution of Pre-1990 s 1990 s Satisfaction Commitment Late 1990 s - Early 2000 s Satisfaction measures happiness and contentment. Commitment includes satisfaction and also attachment to the organization. includes satisfaction, commitment plus energy and enthusiasm. 15 Defining We define as A pronounced state of enthusiasm characterized by effort, pride, and passion which fosters a mutually committed relationship between employees and organizations resulting in the enduring pursuit of organizational and personal goals. 16 Defining Disengagement 17 6

7 Measuring We measure employee engagement using the items. A willingness to put in more effort than expected Being proud to work for the organization A willingness to promote the organization as a great workplace Not recently considering other job opportunities Feeling a strong sense of job satisfaction Feeling your work strongly contributes to the organization s success Feeling compelled by the organization s mission Recently added Job Passion items 18 The Benefit of our Metric Our Metric WITH Job Passion vs.. Metric WITHOUT Job Passion 2xIncluding Job Passion within our engagement metric has doubled the ability to predict key performance outcomes. On average, the predictive power is twice as great as commonly used engagement metrics. 19 Our Metric By the Numbers The ROI of a modest increase in employee engagement more customers would rate their experience a 9 or 10 15% 11% more customers would definitely recommend the organization to others 66% $3.13(Million) fewer employees will voluntarily exit the organization to pursue other opportunities projected annual savings in turnover-related costs per 1,000 employees 20 7

8 Statistical Analysis Cluster Analytics 37% Engaged 22% Seekers 19% Campers 16% Detaching 6% Separated Effort Significantly Above the National Average Significantly Below the National Average Not Significantly Different from the National Average Pride Promote Not Leaving Satisfied Contribute Mission 21 The State of The State of Recent studies have shown a decline in employee engagement particularly in the United States and many European Union nations. & The Prevailing View Measuring and managing the wrong or incomplete set of engagement drivers is mostly to blame. 22 Our Model WELLBEING Physical Health Financial Health Social/Emotional Health Community Health Career Health 23 8

9 Statistical Analyses Key Drivers and Linkages Determining Key Drivers of A B C D E Key Driver Analysis Based on regression modeling, identifies the survey items that most influence engagement predicts the amount of change in engagement as key drivers improve. Determining Linkages to Business Outcomes Bo ard B Empl. A EMP Docs Vols. C Pat D s. Linkage Analysis Based on regression modeling or structural equation modeling, reveals how attitudes of a group (i.e., employees) shape attitudes of another (i.e., customers) or business/operational outcomes (e.g., on-the-job injuries, absenteeism, financial performance, etc.). 24 Statistical Analyses The Power of Linkage Analysis Example Linkages ( Opinions to Key Outcomes) Building Preventing On-the-job Injuries Reducing Absenteeism Enhancing the Customer Experience Enhancing Wellbeing 25 Action Planning Model I Communicate IV Measure II Develop III Implement 26 9

10 Creating A High-Performance Culture ENGAGED ENABLED ENERGIZED 27 Questions and Discussion Thank You For Your Time Today ali_payne@ajg.com Chicago, IL. chris_dustin@ajg.com Chicago, IL 2015 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. BUSINESS WITHOUT BARRIERS 28 10