Putting performance first. How to get real business value from employee opinion surveys

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1 Putting performance first How to get real business value from employee opinion surveys

2 HR programmes need to demonstrate a measurable positive impact on business performance. Putting performance first As economies around the globe emerge from the economic turmoil of the past two years, employees are looking for clarity and security, and business leaders are looking for proven ways to ensure their organisations are robust enough to face an uncertain future. In this challenging environment, the HR function needs more than ever to demonstrate that it has a measurable positive impact on business performance. HR leaders are expected to present fact-based evidence to support their strategic decisions about people programmes that will enable the business s strategic priorities. To achieve this, HR needs to bring together reliable data, robust benchmarks, powerful technology and insightful analytics. One of the ways that the HR functions of almost all major companies try to address this challenge is to conduct regular employee surveys. However, despite the best of intentions, typical survey projects too often end in the creation of volumes of data disconnected from real business priorities. Survey results then get distributed to managers who in turn are expected to devise action plans to improve their results in the next cycle. The emphasis thus becomes improving survey scores rather than improving business performance. As you would expect from one of the world s leading employee surveys business, our approach is deeper, more comprehensive and more focused on real organisational issues than the typical traditional approach. The Towers Watson approach to employee surveys is founded on three pillars of intelligence, insight and impact that aim above all to deliver better business performance through people. We call this Performance First. Figure 01. Achieving high performance through the alignment of business strategy, organisational culture and employee engagement strategies Figure 02. Sustainable engagement and business results 3x higher 27.4 Strategic business priorities Innovation Customer service Cultural differentiators in financially high-performing companies Operating margin Support for diversity of thought and opinion Encouragement for risk taking Bias for action Anticipating customers' emerging needs and expectations Consistently recognising new ideas and their application Leadership clarity on future priorities Information sharing to improve customer service Positive team working relationships Strong customer orientation Regularly adopting customer perspective Focus on talent retention Local-level empowerment Companies with low engagement Companies with high engagement Source: Towers Watson s global normative database Companies with high sustainable engagement Source: Towers Watson global high performance normative database 2 towerswatson.com

3 Towers Watson s Performance First approach is about more than just a survey we pay close attention to the elements that transform a good survey into a powerful HR-facilitated, business-led improvement programme. By choosing to work with Towers Watson you will have access to: A global, multicultural team of more than 400 employee engagement specialists who ensure we deliver the quality our clients need through first-hand knowledge of local linguistic and cultural requirements. The most comprehensive set of benchmark data available anywhere several hundred national, sector, performance and demographic norms. Comprehensive, integrated technology to manage the entire survey life cycle. The delivery of a programme that is fully aligned to your business requirements. Subject matter expertise on total reward, talent management, leadership and manager effectiveness, human capital metrics, HR service delivery and technology, and more. Gather intelligence The first pillar of our Performance First approach is about measuring what is critical to your business performance. To shape the right survey for you, we bring to the table Towers Watson s collective knowledge of the issues and practices that are prevalent in your sector, of the culture and programmes that will best support your strategy, and of how to make HR a valued business partner. For example, our research has revealed the cultural features of high performing, financially successful companies and, critically, we find that these differ depending on the core business strategy being pursued by the company. We draw on this unique insight to design a survey that measures the elements central to the achievement of your strategic business priorities. Figure 03. Our goal is to help you deliver business value Ask the right questions In order to Derive pivotal insights So that you can Achieve high-impact action Figure 04. Bio-science company case study Issue Approach Action Impact Prepare organisation for a new, more collaborative and flexible business model state of flux and uncertainty Designed short, targeted surveys with focus groups and interviews in order to assess organisational readiness for change, and ability to deliver new business model Combined measurement activities with qualitative research looking at communications effectiveness to identify gaps and burning issues Enabled us to identify the cultural barriers to performance and to take effective action to overcome them Putting performance first 3

4 Using our deep expertise we help organisations address the people factors that sustain employee engagement and enable higher business performance. Derive pivotal insights The second pillar of our Performance First approach is about creating clarity out of data. Having established a firm foundation for the research, our aim is to help you draw conclusions from the information and develop practical solutions to your issues. To achieve this, we: Help you connect employee survey data to other business data: developing scorecards that reveal the linkages between employee data and key performance metrics, such as absenteeism, sales, safety incidents, or customer satisfaction. Benchmark your results to our unrivalled range of over 400 national, sector, demographic and performance norms. Develop insights about the key drivers of employee engagement in your organisation. Deliver results reports that prioritise the areas most in need of change, and provide clear suggestions for action in these areas. Through this approach your leaders and managers are directed towards the top opportunities to increase levels of engagement, boost productivity, and sustain performance within their team, department, function, region or business. What is more, we are unmatched in our ability to map employee opinion data against other Towers Watson business and industry data, such as national, industry and job level compensation and benefits data, HR service delivery data (for example, spend on HR technology) and human capital metrics (for example, voluntary turnover of key talent). This provides an extra level of insight into the performance of HR systems and policies, and how the HR function can best invest their resources to the greatest possible effect on business performance. Figure 05. Benchmarking is vital to identify the real priorities Perceived issues % favourable Real issues Difference versus industry norm Customer focus Strategy and goals 80 Communication 6 Teamwork 76 Strategy and goals 5 Engagement 75 Work/life harmony 5 Supervision 74 Supervision 4 Leadership 70 Engagement 5 Career development 61 Total rewards 1 Involvement 60 Career development 1 Communication 58 Customer focus Leadership -3 Work/life harmony 49 Involvement -4 Total rewards 39 Teamwork -6 4 towerswatson.com

5 Achieve high impact action The third and most important pillar of our Performance First approach is about delivering improvements tangible, measurable results and lasting change. Powerful employee insights help leaders become aware of strengths as well as areas to improve, but action planning activities too often fail to leverage these strengths, or to address underlying behavioural and cultural issues. At Towers Watson we help organisations use employee surveys as a catalyst for lasting change in individual behaviour, organisational culture and operational performance. So, right from the start of project planning discussions we involve our experts in change management to help design a programme that will deliver the organisational impact that you are looking for. This means consulting with your executive teams to engage and challenge them with the survey results, and to identify their most critical business priorities. It also means ensuring that your core project team is equipped to leverage the survey as an organisational change initiative, to support managers in their own action planning activities and to hold them accountable for follow-up. But we go further than just telling you what you need to do we work with you to help you to decide where to focus, how to design the interventions you need to make, and to implement and follow-through with the programmes you need to drive your business performance. To this end, we put a suite of simple but powerful tools and resources at your disposal, including: Online access to interactive reports and data-mining tools, and a library of best practices. One-page reports to managers focused on practical actions to improve team performance. Focused sessions with Towers Watson subject matter experts to share best practices, identify opportunities for improvement and provide concrete deliverables in talent management, reward, leadership, communication and change management, manager effectiveness, and employee value proposition. Executive and manager scorecards to ensure that accountability for continuous improvement is embedded into performance/reward systems. Figure 06. Insights Action Platform: Driving follow-up at enterprise level Welcome Overall User Home Help Edit My Profile Logout XYZ Company Manager Survey My Projects Reporting & Action Group : SMITH CHARLES - Chair Engagement Toolkit Welcome to your toolkit page - your online resource center for accessing your survey results reports and additional information to help you maintain and improve employee engagement Key Dates More... July Results Reports available to Managers Results Workshops Begin Communicate High Level Results to All Employees August Hold Team Meetings to Communicate Results Action Planning Workshops Begin Submit Draft Action Plans September Action Plans Finalized Action Plan Communicated to Teams Step 1: Step 2: Step 3: Access your report Here is the report for the 1 SMITH CHARLES - Chair group : Manager Scorecard To access reports from the other groups within the organization Click Here Information that helps to interpret your results Comprehensive Report On Demand Analytics Resources to help plan follow-up actions Action Planning Home Best Practices Library (Internet) Manager Scorecard Putting performance first 5

6 Figure 07. Insights Action Platform: Action planning tools homepage Welcome Overall User My Projects Reporting & Action ACTION PLANNING HOME Action Planning Snapshot Process Milestones Objectives & Actions Target Date Status Objectiveid Home Help Edit My Profile Logout Manager Survey Target Date With our breadth of experience and global footprint, Towers Watson enables the HR function to positively impact business performance. Document and improve communication around relative compensation information 2010/08/02 WIP Work with the career development team to develop and cummunicate a career path for the team 2010/07/30 Complete Results Reports available to Managers 2010/07/02 Results Workshops Begins 2010/07/06 Improve training alignment to career framework 2010/09/01 WIP Communicate High Level Results to All Employees 2010/07/16 Hold Team Meetings to Communicate Results 2010/08/03 Action Plannng Workshops Begin 2010/08/17 Submit Draft Action Plans 2010/06/27 Action Plans Finalized 2010/09/03 Notes Best Practices Library View Plan Action Planning Reports Manager Action Status Report Organization Action Status Report Figure 08. Overview of Towers Watson reporting products Report Executive presentation Short report (manager report) XL report On demand analytics tool Users Executive leadership Front-line managers Region and function leaders HR business partners and other super users User needs High-level call to action What to take action on and how Where to focus attention within span of control Real-time analytics Report description Highlights organisationwide strengths and areas for action, including recommendations A focused, prescriptive report highlighting areas for action with specific recommendations for improvement based on Towers Watson s best practices Highlights differences across regions and locations Provides access to survey demographics for more in-depth analyses Key features Tells story about strengths and areas for action based on robust normative comparisons Specific recommendations for action based on our ROI research Key driver analysis of engagement More than just a data dump Graphical and easy to understand Recommended process for next steps Prescriptive report identifying up to three strengths and three areas for action based on a targeted action matrix Provides suggested actions based on each manager s results Actions based on Towers Watson s action library of best practices Interactive and easy to use Highlights differences across groups Can include an executive summary that exports automatically into PowerPoint Allows leaders to dive deeper into their results by using additional data cuts All data displays can be easily exported into PowerPoint or printed Tool for super users to run on-demand analytics Provides category and item - level results Provides comparisons to internal and external benchmarks Cuts data by hierarchy and demographics Enables user to drill into subgroup results 6 towerswatson.com

7 Employee engagement Having long been at the forefront of employee engagement research, we have developed deep expertise in how to sustain engagement over the long term. We measure not only the building blocks of engagement, but also how to sustain engagement through a positive and energising work environment, and then how to translate this into high levels of individual performance through productive work conditions and supportive manager behaviours. We find that companies with high and sustainable levels of engagement have operating margins up to three times higher than companies with low or high but unsustainable levels of engagement. (Figure 02) Figure 09. From engagement to sustainable engagement Rational think Engagement Emotional feel Engaged Motivational act Individual physical interpersonal and emotional wellbeing at work Enabled Energised A local work environment that supports productivity and performance We maintain the world s leading database of norms across many industries and organisation segments: Global high-performing companies Financial services Pharmaceutical Telecommunications High technology Retail and FMCG Energy and utilities Insurance Manufacturing Government and public sector Professional services Call centres Norms allow a company to compare its survey data against external benchmarks. This is especially useful as absolute results can be misleading; results can fluctuate over time, results vary from country to country, and it allows the adaptation of best practice. Towers Watson surveys millions of employees in scores of countries and languages every year. In addition to maintaining annually updated national norms for over 100 countries around the world, we also maintain norms cut by financial performance, job level, job function and personal demographics. Putting performance first 7

8 About Towers Watson Towers Watson is a leading global professional services company operating in more than 120 locations and has been delivering expertise in the field of employee surveys since Our practice was further bolstered in March 2007 through the acquisition of International Survey Research (ISR). We now maintain the world s largest database of employee opinion norms by country, industry and job level we also create custom benchmark norms for clients with particular or unique requirements. Towers Watson is represented in the UK by Towers Watson Limited, Towers Watson UK Limited and Towers Watson Capital Markets Limited. The information in this publication is of general interest and guidance. Action should not be taken on the basis of any article without seeking specific advice. To unsubscribe, eu.unsubscribe@towerswatson.com with the publication name as the subject and include your name, title and company address. Copyright 2011 Towers Watson. All rights reserved. TW-EU April towerswatson.com

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