Successful Employee Engagement Strategies
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1 Successful Employee Engagement Strategies Employee engagement in Korean context Kevin Kim Talent and Rewards Consulting Towers Watson 2 nd April 2015 towerswatson.com
2 Evolution of Engagement Engaged Sustainably Engaged Engaged Belief in goals and objectives Emotional connection Willingness to give extra effort for success Committed Satisfied Wage earners Satisfaction itself Retention strategy Reactive Value creators Context & performance Talent mgmt. strategy Proactive Enabled Free from obstacles to succeed at work Resources to get the job done Ability to meet work challenges effectively Energized Sustaining the energy (physical) Team effectiveness (social) Feelings of accomplishment (mental) towerswatson.com 2
3 Engagement Low High Engagement Score 3 times The power of three Es <Exponential Growth with three Es> Operating Margin by Group 27.4% 9.9% 14.3% Low Engagement High Engagement w/o Enablement and/or Energy High Engagement, Enablement, and Energy <Better Enablement, Greater Profit> Net Profit Margin <High Energy, High Engagement> 6.9% 11.4% % 7.3% 40 Yr-1 Yr-2 Yr-1 Yr-2 Low Enablement High Enablement Low Well-being High Well-being Source: towerswatson.com <The Power of Three: Taking Engagement to New Heights>, Towers Watson,
4 Sustainable Engagement segments Highly Engaged: Those who score high on all three aspects of sustainable engagement Unsupported: Those who are traditionally engaged, but lack enablement and/or energy Detached: Those who feel enabled and/or energized, but lack a sense of traditional engagement Disengaged: Those who score low on all three aspects of sustainable engagement Source: towerswatson.com Towers Watson 2014 Global Workforce Study Global & Korea results 4
5 Not willing to leave and not engaged Engagement Profile (Korea) Q) Likely to leave organization within two years? Agree Mixed Disagree Korea Global 10% 18% 17% 20% 73% 61% Highly Engaged (Global) Korea Global Korea Global 9% 20% 18% 33% 17% 30% 30% 33% 74% 50% 52% 34% Unsupported Detached Korea Global 24% 39% 44% 36% 32% 25% Disengaged Source: towerswatson.com Towers Watson 2014 Global Workforce Study Global & Korea results 5
6 Motivation is a tricky thing towerswatson.com 6
7 Retirement anxiety Age Group I am confident I would have enough money to live comfortably 15 years into retirement Age Group Over the last 3 years, the age at which I plan to retire changed (a little / much later ) 50~ 50 대 + 40~49 40 대 30~39 30 대 20~29 20 대 21% 22% 28% 40% Korea Avg. 28% Global Avg. 45% 50~ 50 대 + 40~49 40 대 30~39 30 대 20~29 20 대 41% 34% 42% 33% Korea Avg. 38% Global Avg. 38% Age Group 50 대 + 50~ 40 대 40~49 30 대 30~39 20~29 대 My organization s retirement benefits meet my needs. 19% 28% 27% 42% Korea Avg. 30% 전세계평균 46% Age Group 50 대 + 50~ 40 대 40~49 30~39 대 20~29 대 Employees in positions above me are choosing not to retire, reducing my options for advancement 45% 49% 50% 51% Korea Avg. 49% Global Avg. 36% Source: towerswatson.com Towers Watson 2012 Global Workforce Study Korea results 7
8 Key drivers of sustainable engagement in Korea 1 Leadership 2 3 Goals & Objectives Workload & Work-Life 4 Company Image 5 Communication Effective at growing the business Sincere interest in employees well-being Behaves consistently with organization s core values Confidence in job done by leadership Good understanding of organization s business goals and steps needed to reach those goals Understanding of how job contributes to the organization achieving its business goals Healthy balance between work and personal life Work arrangements are flexible Enough employees in work group to get job done right Amount of work required is reasonable Organization highly regarded by general public Organization conducts its business with honesty and integrity Organization helps employees understand the business, current performance, and educates about organization s culture and values Communicates to employees about how their actions affect the customer Source: towerswatson.com Towers Watson 2014 Global Workforce Study Korea results 8
9 Key Drivers of Attraction and Retention (Korea vs. Global) What attracts people to join the company (attraction drivers) What keeps employees from leaving (retention drivers) Job security 1 Base salary Base salary 2 Job security Reputation (good employer) 3 Career opportunities Vision/Mission/Values 4 L&D opportunities Flexibility or choice in benefit 5 Challenging work Length of commute 6 Reputation (good employer) Career opportunities 7 Paid time-off (vacation) Limiting work-related stress 1 Base salary Base salary 2 Career opportunities Relationship with supervisor 3 Trust in leadership Flexibility or choice in benefit 4 Job security Retirement benefits 5 Length of commute Physical work environment 6 Relationship with supervisor Length of commute 7 Limiting stress from work Source: towerswatson.com Towers Watson 2014 Global Workforce Study Global & Korea results 9
10 Attraction drivers more sensitive to hygiene factors Q. Please select the top five most important reasons why you joined your current organization 56% Korea Global 38% 31% 20% 24% 14% 28% 13% 14% 31% 18% 35% Job security Health care and wellness benefits Organization's financial performance Challenging work Opportunities to learn new skills Opportunities to advance in my career Korea > Global Korea < Global Source: towerswatson.com Towers Watson 2012 Global Workforce Study Global & Korea results 10
11 Retention drivers stress management is key Q. Please select the top five most important reasons why you leave your current organization 37% Korea Global 40% 25% 27% 26% 18% 19% 14% 22% 10% 17% 30% Work-related stress Retirement benefits Physical work environment Time required to commute to work Ability of coworkers Opportunities to advance in my career Korea > Global Korea < Global Source: towerswatson.com Towers Watson 2012 Global Workforce Study Global & Korea results 11
12 Leadership is the number-one driver, but 37 % I have the trust & confidence in the job being done by the senior leadership of my organization #1 Leadership is the number-one driver of sustainable engagement, however, employees view this driver as 33 % Senior management is doing a good job of growing the business at my organization Senior management is doing a good job of developing future leaders at my organization 24 % Senior management at my 31 % organization has a sincere interest in employees wellbeing Source: towerswatson.com Towers Watson 2014 Global Workforce Study Korea results 12
13 Engagement and leadership are mutually-reinforcing Senior leaders are effective Supervisor is effective Engagement Profile 72% 17% 7% 3% 35% 30% 18% 17% 23% 21% 29% 29% 8% 14% 22% 56% Highly Engaged Unsupported Detached Disengaged Source: towerswatson.com Towers Watson 2014 Global Workforce Study Global results 13
14 EVP and engagement go hand in hand 70% 74% Highly Engaged Unsupported Detached Disengaged 70% 70% 48% Korea Avg. 40% 41% 43% 35% 29% 41% Korea Avg. 28% 33% 25% Korea Avg. 30% 35% Korea Avg. 33% 16% 12% 13% My organization has a formal employee value proposition. My organization does a good job living up to the EVP. My organization has a reputation for providing a good EVP My organization does a good job aligning our EVP with what it stands for in the market Source: towerswatson.com Towers Watson 2012 Global Workforce Study Korea results 14
15 Flexible work arrangement and perception of EVP No flexible work Time-based flexible work Location-based flexible work 36% 47% 53% 42% 49% 39% 44% 43% 51% 25% 22% 24% My organization has a formal employee value proposition. My organization does a good job living up to the EVP. My organization has a reputation for providing a good EVP My organization does a good job aligning our EVP with what it stands for in the market Source: towerswatson.com Towers Watson 2012 Global Workforce Study Korea results 15
16 Mistakes in managing engagement Seeing engagement as an HR activity unconnected to business Business-driven Wrong or too much focus on the scores (results) Key-driver focus Working on too many things at the same time (program-driven) Focus & monitoring Change implementation assigned solely as the role of managers Shared responsibility Copying external programs without understanding the context Context savvy towerswatson.com 16
17 Finally, to improve engagement Align people to job Develop people Deliver the deal Energize change Each stakeholder must do his/her part Determine strategy Make timely decisions Foster positive climate Delegate appropriately Managers Leaders Internalize values Have a shared purpose Be proactive Put customers first Employees Company Hire right people Make efficient systems Provide feedback Promote collaboration towerswatson.com 17
18 5 Myths of Great Workplace Everyone Is Incessantly Happy Conflict Is Rare Mistakes Are Few They Hire for Cultural Fit Their Offices Are Full of Fun Things Source: towerswatson.com 5 Myths of Great Workplaces <Harvard Business Review>, Mar
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