Future-proofing employee engagement 5 areas of focus for 2015

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1 Future-proofing employee engagement 5 areas of focus for 2015 Employer Branding Experience 5 th November

2 By way of introduction

3 Thanks for having me

4 Employee engagement is for life 4

5 An important transition The age of mechanisation Personal drive Ambition Competition Quantity Consumption The age of mastery Capacity to combine and connect Know-how, competencies, networks Quality Experience Technology billion people with mobiles The Cloud Digitisation Self generated content Data monitoring behaviour, acting on preferences Telepresence, social media tools Globalisation Innovation Mega cities New talent pools Demographics The end of the baby boomers Gen Y Life expectancy to 100 Pensions retirement Societal trends The age of the individual Declining trust in business Low carbon economies Carbon cost of transporting goods and people Virtual working

6 Contextual drivers Source: Workplace Employment Relations Studies, UK

7 Engagement is a hot topic Google searches on the term Employee Engagement

8

9 Talent matters +36% Shareholder Value Return to shareholders is 36% higher in companies with high employee engagement. Source: Towers Perrin -87% Talent retention Highly engaged employees are 87% less likely to leave than less engaged people. Source: HR Magazine. 31bn Talent attraction Gallup estimates that staff turnover costs exceed 31 billion in the UK annually. Source: Gallup 68% Customer retention 68% of people who leave a brand do so because they are unhappy with how they have been treated. Source: Journal of Applied Psychology 30% Growth 47% of CEOs are very confident about growing over three years but only 30% think they ll have the talent they need. Source: PwC 71% Sustained economic value 71% of CEOs pointed to human capital as the main source of sustained economic value, ahead of customer relationships (66%) and products/ services innovation (52%). Source: IBM Global CEO Study

10 Talent matters 70% Brand equity 70% of brand perception is based on interaction with people. Source: Market Leader +20 to 43% Productivity Engaged employees are between 20% and 43% more productive than those who are not engaged. Source: HR Magazine, Watson Wyatt -50% Compensation premium A clear, strong EVP reduces compensation premium needed to hire by 50%. Source: Corporate Leadership Council 31% Innovation Talent constraints have hampered innovation at 31% of companies. Source: PwC 10

11 5 areas of focus for 2015

12 5 areas to focus on in Build the right team be a networker 2. Developing and nurturing a strong employer brand 3. Diversity to build the workforce of the future 4. Wellbeing at work 5. Intrapreneurialism 12

13 You ve got to engage to create engagement Building the right team

14 Where engagement happens Recruitment and onboarding Line management Internal comms Departure experience and alumni programme Corporate brand Employee experience management Employer value proposition Recruitment experience On-boarding and induction Change Reward & recognition Promotion and exit 14

15 Build the right team HR & resourcing Marketing & brand Internal comms Employee engagement IT Line Managers Leadership / Exec 15

16 Build the right team Marketing & brand IT HR & resourcing Employee engagement Internal comms Line Managers Fixer Facilitator Networker Influencer Detective Enabler Leadership / Exec 16

17 Top tips Use research as a Trojan horse for engaging your colleagues Ask for help in determining the business case- get them on board early Ask for their objectives and KPIs so you can help deliver them- give before you receive Don t side-step tricky colleagues: they can become you biggest advocates Ensure you have senior support- make them care 17

18 Developing and nurturing an employer brand

19 Develop and nurture a strong employer brand 19

20 The questions an Employer Brand can help to answer Articulate the deal a company makes with its employees- encourage opting out Create a stronger link between your people and your customers Help to attract, retain and engage talent Make the link (implicit or explicit) to our external brand proposition and purpose Give a sense of what it means to be part of the company Differentiate you from the competition and give clarity on the markets we compete in Appeal/ be relevant in different markets and to different groups- under a shared umbrella Be relevant to all current and potential employees- and to alumni Improve the quality and relevance of applications Be authentic: 80/20 split between today s reality and tomorrow s ambition 20

21 The cost per hire is over 2 times lower for companies with strong employer brands. Companies with stronger employer brands have 28% lower turnover rates than companies with weaker employer brands. (Source: LinkedIn) 21

22 Mutually supportive but distinctive Brand Customer Proposition Employee Proposition 22

23 Brand: Search, Ads and Apps Employer: Do Cool Things that Matter Brand: The power of global connections Employer: We're better when we're connected Brand: We Will Not Rest Employer: Welcome to a World of Opportunities Brand: Designed by Apple in California Employer: Amaze Yourself. Amaze the World. 23

24 Top tips Take time to get research right- both to give you the data and the political coverage you need Keep your stakeholders involved and updated; don t let anything be a surprise Ensure great project management- projects can be long and strong project documentation will keep you on track Keep the employee lifecycle in mind- don t allow your employer brand to be just a recruitment brand 24

25 Building the workforce of the future Fully assimilating: Millennials Women

26 Women and children first! 26

27 In 2010 in OECD countries, 65% of women were in the labour force compared to 91% of men Only 43% of women who study science will choose a career path in physics, maths and engineering vs 71% of men The increase of income per capita as a result of closing the gender gap is 9 23% 27

28 28 In 2040 we ll have 2bn more people and will need 25% more energy than we use today. We will need to increase efficiency. We must have more engineers and it doesn t matter if they are male or female. But given how few female engineers we have now, this would be a quick win. We need the numbers, men alone cannot provide that. Engineer, oil & gas co Speaking at Women s Forum 2014

29 29

30 Why such slow progress? Unconscious bias Ambitions set too low Women not thriving in the all male environments of Board rooms, engineering schools etc Focus on fixing women not changing structures More promises than action Parental leave inhibits career progress of women Leadership qualities defined in masculine terms 30

31 Top tips Check for unconscious bias Don t just mentor, sponsor Review your high potential list Support and challenge returners Consider quotas or targets 31

32 Millennials? 32

33 Millennials 33

34 Millennials want to work for companies that are good citizens 34 Globally, 69% of Millennials want companies and employers to make it easier for them to do their part, e.g.: Donating a portion of product proceeds; Giving them time off to volunteer and providing activities they can participate in. 41% of UK Millennials want their employer to provide multiple opportunities for them to get involved with volunteer activities throughout the year. Over 70% of Dutch Millennials said that being a good corporate citizen makes businesses more attractive as employers.

35 A crisis of trust- opportunities for companies Edelman Trust barometer 2012

36 MSLGROUP & Ashridge Business School s global Purpose at Work survey found that: 66% of employees don t believe businesses do enough to create a sense of purpose and deliver meaningful impact, while 83% of UK Millennials surveyed said they want to see businesses get more involved in solving the problems we all face.

37 37

38 No global one size fits all 38

39 Top tips Be authentic- pick credible causes and weave them into your employer brand Don t be afraid to talk about CSR and give employees meaningful opportunities to take part Think about the skills and knowledge you need, not they type that fits here Focus on mentoring- research by SCB has shown that baby boomers make great mentors to Gen Y Give young people in your company a voice- e.g. GSK has a graduate advisory panel Allow flexibility in your framework for local adaptation 39

40 GSK + Save the Children- Orange United 40

41 41

42 Wellbeing at Work

43 Wellbeing at and for work 43

44 Reduction in absenteeism Reduction in workplace stress Wellbeing Engagement Performance 44

45 45 45 A 2014 poll by Investors In People found that 48% of people who state their employer does not care about their wellbeing also say it has led to them feeling less motivated with 1/3 saying they have considered looking for a new job as a result.

46 39%. 46 Companies with highly engaged staff report employees taking half the number of absence days per year: 7 days compared the to the 14 days per year reported in low engagement companies Those employees in high engagement companies also report significantly less workplace stress, 28% versus

47 Turnover improved to a low of 0.5% Sickness absence fell 7% in one month 4 metric tonnes of weight were lost and engagement increased 47

48 Top tips Use data to quantify and respond to wellbeing issues and opportunities Get Board level sponsorship and build a coalition approach Show results: don t be positioned as tea and sympathy. This is business. Tie in existing programmes such as CSR, employee engagement etc 48

49 Intrapreneurialism

50 5. Intrepreneurialism Security & Support Creativity & independence Entrepreneurialism in a corporate structure 50

51 What entrepreneurs fear and value Fear Fear of failure Loneliness Personal financial risk Lack of support No one to learn from Value Creativity Merit Personal reward & accountability Pride in growth Mentoring others Calculated risk Free from constraint and hierarchy 51

52 Holacracy 20% time Together works better 52

53 Highly appealing to Millennials Women 53

54 Thank you Louisa Moreton Managing Director, Employee Practice 54

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