ENGAGING EMPLOYEES AND IMPROVING BUSINESS

H E L I O S W H I T E P A P E R S E R I E S ENGAGING EMPLOYEES AND IMPROVING BUSINESS THE BENEFITS OF EMPLOYEE ENGAGEMENT AND DEVELOPMENT THE BUSINESS CASE FOR ENGAGEMENT 2 ENGAGE EMPLOYEES BY ONBOARDING WITH A PURPOSE 2 TAILORED TRAINING AND DEVELOPMENT 4 ENGAGEMENT INITIATIVES OF THE FUTURE 5 RISING TO THE ENGAGEMENT CHALLENGE 7

Employee Engagement 2011-2012 13 percent of employees across the globe are truly engaged in their job. 24 percent are actively disengaged (63 percent) are simply disengaged Most senior leaders understand the importance of employee engagement but few truly understand the ability of engagement to stimulate business results, nor the threat disengagement poses to a business bottom line. In November of 2013, Jim Clifton, CEO of Gallup, presented some startling statistics about the overall attitude of the global workforce. Gallup statics reflect trends from 2011-2012 and divide employees into one of three categories: engaged, disengaged, and actively disengaged. According to research conducted by Gallup, only 13 percent of employees across the globe are truly engaged in their job. Most troubling, 24 percent are actively disengaged, as characterized by their tendency to negatively influence others and underperform. The rest of the workforce (63 percent) are simply disengaged, which Gallup defines as emotionally disconnected from their environment and less likely to expend discretionary effort on organization goals. 1 Mr. Clifton went on to hypothesize that if we could only double the number of actively engaged employees, the global economy would realize substantial gains thanks to increased productivity, innovation, and customer satisfaction. 2 Jim Clifton s hypothesis underscores what research has already shown: in business, employee engagement matters and can impact everything from net income and sales to turnover and absenteeism. 3 So we must ask ourselves, how do we meet the challenge and turn an actively or simply disengaged employee into one that demonstrates engagement through strong performance and a marked passion for his or her job? The finalists for Helios HR s Apollo Awards demonstrate a commitment to employee engagement evident in onboarding that starts even before the employee is hired, continuing through the employment lifecycle with unique and customized training and development programs. The tactics and strategies utilized by Apollo Award finalists serve as a model for other businesses who recognize the importance of engaging their employee population. As demonstrated by statistics from Modern Survey s semiannual reports, organizations with higher engagement indicators also have higher customer satisfaction, better profitability, and even increased safety records! 4 The effects of positive employee engagement cannot be ignored as the rewards are very real. ENGAGE EMPLOYEES BY ONBOARDING WITH A PURPOSE Research conducted by Modern Survey in the Fall of 2013 showed that employees who said they knew and understood their organization s values were 37 times more likely to be engaged than those who did not. 5 We suggest that this information should be communicated as early in the employment life cycle as possible, i.e. starting with the recruiting process and continuing through onboarding. One Apollo Award finalist, Fulcrum IT, sends new hires a signed note from the CEO as soon as they accept their offer along with a gift certificate to a local restaurant so they can celebrate. This is an excellent way to maximize impact on engagement with an intentional gesture and it speaks volumes about the culture and values of Fulcrum IT. Helios White Paper Human Capital Rising 2014 All Rights Reserved. 2

87 percent of Apollo Award finalists incorporate culture and connection into their onboarding programs. Leading Organizational Design expert, Tayla Bauer, lists the following classic components of a successful onboarding program: compliance, clarification, culture, and connection. 6 Ms. Bauer calls this model of onboarding the 4 Cs, with compliance and role clarification serving as the foundation. The Apollo Award finalists go above and beyond the simple approach; in fact, 87 percent of Apollo Award finalists incorporate culture and connection into their onboarding programs. Their methods vary, but the unifying element is that these organizations plan for new employees to expand their knowledge beyond the tasks and skills needed for their specific job. Many finalists provide mentors or buddies to new hires from whom they learn unspoken work rules or cultural norms of their new employer. These mentors are not typically in the direct line of management for the new hire, allowing a relationship built on candor and openness. In order to ensure new hires understand and can assimilate into the organization s culture, several of our Apollo Award finalists go so far as to provide new hires with a written or electronic culture guide. Neustar, an information analytics company and Apollo Award finalist headquartered in Sterling, Virginia, screens a five part reality TV program for new hires called, The New Stars of Neustar, meant to welcome employees to the company and introduce their unique values and culture. Merkle, a well-known marketing agency with a national presence, goes to great lengths to ensure that employees feel connected immediately. A company provided culture guide speaks to Merkle s core competencies as a business and allows them to start communicating their competitive position and employment brand immediately upon hire; it is meant to orient new employees but it also represents the organization s products. Merkle reports the following results of investing in onboarding: half the turnover of competitors, extremely high level of engagement in first year employees, and a ramp up time that is usually no more than 30 days. Nationally, the average time for a new hire to reach full productivity ranges from 5 to 6 months according to research from the Mellon Corporation. 7 Merkle s efforts to help new employees understand the company and connect with the culture via informal communication methods and networks has allowed them to onboard quickly, effectively, and with remarkable results. This year s Apollo Awards finalists also recognize the importance of connecting and engaging new hires with the entire business, not just their own department or individual contributions. Many Apollo Award finalists introduce new hires to all parts of the business by having various executive and business team leaders present portions of the onboarding program. Participation by the leadership team members reinforces the emphasis organizations are placing on culture and connection. Some Apollo Award finalists have employees participate in a job shadow in different units to learn all facets of business Helios White Paper Human Capital Rising 2014 All Rights Reserved. 3

operations. As a result of their efforts to make early connections to organization culture, 58 percent of Apollo Award finalists reported that new hire productivity was accelerated and overall new hire turnover was lower, significantly impacting operations and profitability. Evans Consulting Group has implemented an orientation program modeled on Tayla Bauer s four C s (compliance, clarification, culture, and connection) and has realized impressive results; the time for a new hire to become fully productive on a client site has gone from six weeks to only two weeks! PROVIDE TRAINING AND DEVELOPMENT THAT IS TAILORED TO ORGANIZATION AND EMPLOYEE NEEDS Once an employee is onboarded and fully productive, leaders need to ensure the employee remains an industrious, engaged member of the team. In their annual reports on trends in global employee engagement, Aon Hewitt consistently identifies career opportunities, training, and development as critical drivers of employee engagement. Further, they point out that these are three areas over which management, and direct managers in particular, have a lot of control. Through effective management and career development, employers and managers provide employees an avenue to engage with the organization s objectives. 8 Our 2014 Helios Apollo Award finalists demonstrate the importance of strategic development programs; over 70 percent of finalists have tailored internal development programs unique to their organizations. These programs go beyond basic job proficiency and seek to train employees on the unique technical and soft skills they need to progress in the organization and their careers. Apollo Award finalist, George Mason University (GMU), has developed internal training programs to help address critical skill gaps and organizational performance concerns that typify this intentional approach to development. GMU has developed an Administrative Professionals Certification program, which is made available to all administrative and clerical staff at the university. This program aims to increase professional resources and networking for administrators by combining structured learning with mentorship. One employee who was formerly on the verge of termination, credits this program with turning around her career by increasing her skills and confidence and engendering pride in the value of her role. Created especially for new managers within their first five years of management at GMU, the New SUPERvisor Series puts managers through a structured and rigorous curriculum on all aspects of leadership: performance management, team building, HR basics, and communications are just some of the topics covered. An effective and well-trained manager is more likely to be engaged and also to engage all those under his or her supervision. As Modern Survey s President emphasizes, managers are amplifiers of everything within the organization that affects engagement and the example of those in positions of leadership can influence the workplace behaviors of all employees. 9 Our own CEO, Kathy Albarado, often reminds us that Helios White Paper Human Capital Rising 2014 All Rights Reserved. 4

as leaders, we speak through a megaphone and should be exceptionally intentional about our choice of words and tone. 10 The solutions identified by GMU to common engagement and development problems reflect the overall mission and strategy of the organization in a way that has surely contributed to the programs success. The benefits for the university are numerous. Dr. Ángel Cabrera, President of GMU, explains that Mason s learning and professional development is an important part of [their] commitment to being a great place to work. Employees start their Mason career with a warm welcome and valuable information through their orientation process, and then, can enhance their career wellbeing with a wide array of leadership, customer service, or skills-based trainings. After completing a learning and development series of their choosing, employees are better prepared and more confident in their work. 11... each incremental percentage of employees who become engaged would predict an incremental 0.6% growth in sales. IT consulting firm and Apollo Award finalist, INTEGRITYOne Partners, has an internal development program referred to as COIN: The Consultants of INTEGRITYOne. Interestingly, this group was founded by employees and is largely self-managed. COIN exists to promote knowledge sharing, problem solving, and networking among colleagues and sponsors monthly meetings on topics of importance to the organization s business and of interest to employees. Because it is driven by employee initiative, COIN represents a safe place for coworkers to speak with each other frankly and openly share concerns. INTEGRITYOne s COIN network is a strong example of employees taking ownership of their own engagement. It s also important to note the impact of improved employee development and engagement on the bottom line. According to a 2013 Aon Hewitt study, Analysis of employee engagement and organization performance data concludes companies that managed higher employee engagement relative to their peers throughout the economic downturn are now seeing dramatic, positive impacts to their revenue growth. Aon s review of 94 companies determined that each incremental percentage of employees who become engaged would predict an incremental 0.6% growth in sales. 11 As Aon s research underscores, investment in employee development and engagement will yield short term and long term benefits and should be viewed as a competitive advantage even when budgets are lean and investing in non-revenue generating activity is a difficult decision to make. Tellingly, all Apollo Award finalists plan to at least maintain their current spend on employee development and 32 percent of finalists plan to increase the development budget by 15 percent or more in 2014. Mentorship has been widely adopted by enlightened leaders and organizations and although our Apollo Award finalists demonstrate some unique and innovative ways to structure mentorship in support of engagement, one wonders what will come next? Helios White Paper Human Capital Rising 2014 All Rights Reserved. 5

Well-designed mentorship programs should effectively develop an employee s abilities in one particular role or career path but sponsorship takes that a step further. Where do we see employee development going in the next, five, ten, or fifteen years and how will organizations keep engaging their employees as the American and global economies change and evolve? Many human capital leaders have put forth the concept of sponsorship as the natural evolution of mentorship. Instructional Design and Organizational Development Consultant Julia Winkle Giulioni coined the term mentworking in her book Help Them Grow or Watch Them Go to describe the intersection of traditional mentorship and networking. 12 Well-designed mentorship programs should effectively develop an employee s abilities in one particular role or career path but sponsorship takes that a step further. A mentor introduces you to key people in your organization while a sponsor introduces you to key people in your field. It s a subtle difference and one that may even seem somewhat threatening; senior executives may naturally wonder if a program designed to increase industry contacts may also encourage top talent to leave the organization. But it s just as possible that it will introduce high performers to new potential customers, innovative ideas, or even new recruits within their field. According to research conducted on this trend, sponsorship creates meaningful and quantifiable impact on everything from requesting stretch assignments to negotiating compensation. Some research puts the positive impact at 22 to 30 percent, depending on the nature of the request and gender of the employee. 13 As women continue to make inroads into senior leadership positions, we also need to ensure their knowledge, skills, and abilities are ready to meet the demands of leading organizations in the future. According to the Bureau of Labor Statistics, women s participation rate in the Labor Force in 1950 was 34 percent; in 2012, their participation rate has increased to 57 percent. 14 Apollo Award finalists seem to be responding to the trend as 16 percent have dedicated, targeted programs to accelerate the development of women leaders. Interestingly, Modern Survey s data on employee engagement has consistently shown that while women are more actively engaged than men, they are less satisfied on numerous indicators such as pay, rewards, and flexibility. 15 Developing more female leaders and ensuring programs and benefits meet their needs will clearly have a positive impact on overall engagement and many experts have identified sponsorship as a critical way to develop female talent. Apollo Award finalist Baker Tilly Virchow Krause, LLP has implemented a program for women s development called GROW: Growth and Retention of Women, which is dedicated to the recruitment, retention, and development of women at all levels of the organizations. Several years ago, one of Baker Tillly s current female partners saw the need for the organization to be more deliberate in its support of female leaders after her own experience being on a leave of absence and then a flexible work arrangement. Since its founding, GROW members have taken steps to address some of the potential points of dissatisfaction and disengagement for female employees, particularly given that Accounting and Financial Services tend to be male dominated Helios White Paper Human Capital Rising 2014 All Rights Reserved. 6

fields. Their accomplishments include: enhancing maternity and paternity leave benefits, standardizing the process for flexible work arrangements, and creating a new page on the firm s website spotlighting its female thought leaders. Baker Tilly s efforts pay off for their business. One Senior Manager said of her flexible work arrangement: the key for me has been mutual flexibility. Even though I m technically less than full-time, I am still able to bring a lot of value to the firm and my clients. As the economy continues to improve, people will have more choices regarding where they want to work and although parts of the country are still in recession, labor markets in several major metropolitan areas are moving towards full employment. The most recent jobs report for April 2014 showed that the US economy added over 200,000 jobs, more than any single month gain in two years. 16 We can stem the tide of people actively looking by investing in development programs and then ensuring managers have the proper training to talk about career development opportunities with their team(s) as well as communicate organizational goals and values. A more competitive labor market also means employers will need to reemphasize and perhaps redefine their employee value proposition in order to win what many refer to as the talent war. As opportunities have improved for candidates, organizations may not be able to match their compensation philosophy to increased candidate expectations. But if organization leaders thoughtfully define what makes their organization unique, employees are more likely to appreciate aspects of the employment experience that go beyond base salary. Lastly, we anticipate that increased partnerships between businesses and education systems will be necessary to ensure employees have the skill sets necessary to hit the ground running when they enter the workforce full time. That means working with secondary school systems and post-secondary school systems to develop programs that teach the skills necessary to be successful. More organizations are making efforts to connect with future generations of workers to establish a pipeline of job candidates. Twenty-seven percent of hiring managers have promoted careers at their firms to high school students or, in some cases even younger students; 25 percent plan to do so again in 2014. 17 In returning to our theme of employee engagement, the challenge to double the number of actively engaged employees is more important than ever. Given the tangible benefits, executives need to begin thinking about how they can increase engagement in their organizations and in turn drive positive business outcomes. If you have been inspired by the success stories from the Helios Apollo Awards finalists, we encourage you to take the enclosed employee engagement survey back to your organization to measure engagement and start making improvements. Helios White Paper Human Capital Rising 2014 All Rights Reserved. 7

WORKS CITED 1) Gallup. State of the Global Workplace - Employee Engagement Insights for Business Leaders Worldwide. Annual Report. Washington, DC: Gallup, Inc., 2013. 2) Clifton, Jim. The Chairman s Blog - Insight for Leaders from Gallup s Work Around the World. 20 November 2013. 10 April 2014. 3) Kruse, Kevin. http://www.forbes.com/sites/kevinkruse/2012/09/04/whyemployee-engagement/2/. 4 September 2012. 14 April 2014. 4) MacPherson, Don. The State of Employee Engagement: Unvieling Research from March 2014 HR.com. 15 April 2014. 5) Modern Survey. Creating a Culture of Employee Engagement. Special White Paper. Minneapolis, MN: Modern Survey, 2014. 6) Bauer, Tayla N. Onboarding New Employees: Maximizing Success. Special Report. Alexandria, VA: The SHRM Foundation, 2010. 7) Cross, Rob, Salvatore Parise, and Keith Rollag. Getting New Hires up to Speed Quickly. MIT Sloan Management Review. 15 January 2005. 7 May 2014. 8) Aon Hewitt. 2013 Trends in Employee Global Engagement. Annual Report. London, England: Aon Hewitt, 2013. 9) MacPherson, Don. The State of Employee Engagement: Unvieling Research from March 2014 HR.com. 15 April 2014. 10) Albarado, Kathy. Personal Interview. 5 May 2014. 11) Cabrera, Ángel. Personal Interview. 20 May 2014. 12) Aon Hewitt. 2013 Trends in Employee Global Engagement. Annual Report. London, England: Aon Hewitt, 2013. 13) Giulioni, Julia Winkle and Beverly Kaye. Help Them Grow or Watch Them Go. San Francisco: Berrett-Koehler Publishers, 2012. 14) Hewlett, Sylvia Ann. The Real Benefit of Finding a Sponsor. HBR Blog Network. 26 January 2011. 30 April 2014. 15) Bureau of Labor Statistics. Women in the Workforce: a Databook. Washington, DC: Bureau of Labor Statistics, 2013. 16) MacPherson, Don. The State of Employee Engagement: Unvieling Research from March 2014 HR.com. 15 April 2014. 17) Davidson, Paul. Spring Stunner: Jobs Report Blows Past Forecast. USA Today. 2 May 2014. 7 May 2014. 18) CareerBuilder. http://careerbuildercommunications.com/pdf/ careerbuilder2014_forecast.pdf. 2014. CareerBuilder. 11 April 2014. Helios White Paper Human Capital Rising 2014 All Rights Reserved. 8

Understanding and analyzing employee satisfaction is vital to employee engagement and business performance. Measuring employee satisfaction, and then taking the necessary steps to increase it, is essential to attracting, retaining and engaging the high quality talent that is needed to drive a successful business. Below is a short survey you can share with your employees to measure your level of employee engagement. This survey is a starting point and can help you determine if employee engagement is a potential pain point in your organization. Before sending out this survey, we recommend the following: Define what engagement means to your organization. Consider the employee population receiving this survey. Do you want it to go out to all departments/divisions or should you set up a test department/division ahead of the broader roll-out? Begin developing how the results of the engagement survey will be communicated to employees. Establish measurable outcomes that your organization can use to evaluate progress in improving employee engagement. EMPLOYEE ENGAGEMENT SURVEY 1. My direct manager has reviewed my job description with me in the past 12 months 2. After reviewing the job description with my direct manager, I understand my day-to-day responsibilities and what my direct manager expects from me 3. I routinely volunteer for projects and continuously work with my direct manager to expand my footprint in the organization 4. My direct manager provides feedback both verbally and in writing 5. I understand career opportunities available in my organization 6. I understand how my role helps to achieve the values, goals, and strategic outlook of our department and the organization 7. Management properly recognizes and rewards strong performance 8. My organization encourages a blended work and personal life philosophy Scorecard Below is a key that can help determine next steps after you have collected this survey from your employees. 7 to 8 True Answers Excellent Employee Engagement: Continue your efforts being an industry leader in employee engagement. 5 to 6 True Answers Good Employee Engagement: On the right track with your employee engagement. Continue connecting and developing employee engagement strategies that can increase your score. 4 and under True Answers Needs Improvement: May need to reach out to industry leaders like those mentioned in the white paper, and consulting firms like Helios HR, to determine engagement best practices/solutions to suit your organization. Helios White Paper Human Capital Rising 2014 All Rights Reserved. 9

Points to consider after delivering the survey: Evaluate if the tabulated scores match the expectations you had before you sent out the survey. Formalize a plan of action if the scores do not match your pre-survey estimation. Consider sending out a similar survey after six months to a year to see if employee engagement has increased. Review best practices to better understand strategies to increase your engagement score. Some helpful articles are noted below: http://www.helioshr.com/2014/05/05/best-ways-to-reduce-employee-turnover/ http://www.helioshr.com/2014/04/29/best-ways-to-attract-retain-and-engage-high-performing-teams/ http://www.helioshr.com/2014/03/14/employee-feedback-surveys-a-review/ http://www.helioshr.com/2014/03/11/best-ways-to-engage-your-employees-2/ Helios White Paper Human Capital Rising 2014 All Rights Reserved. 10

Authors: Amy Gulati, GPHR & SPHR, Human Resource Business Partner, Helios HR, LLC; Bryan Krinzman, MPS & PHR, Human Resource Business Partner, Helios HR, LLC. Project Team: Kathy Albarado, CEO, Helios HR, LLC; Mary Browse Blood, PHR, Team Lead, Helios HR, LLC; Keebie Clements, PRC, Senior Recruiting Consultant, Helios HR, LLC; Amy Dozier, PHR, Senior Human Resources Business Partner, Helios HR, LLC. Editing: Mary Browse Blood, PHR, Team Lead, Helios HR, LLC; Amy Dozier, PHR, Senior Human Resources Business Partner, Helios HR, LLC. Design: Red Thinking LLC, www.redthinkingllc.com Helios would like to extend a special thanks to Apollo Award Honorees that allowed us to share their stories: Baker, Tilly, Virchow, Krause, LLP, Evans Consulting, Fulcrum IT Services, LLC, George Mason University, INTEGRITYOne Partners, Merkle, Inc, and Neustar, Inc. This report is published by Helios HR, LLC. (Helios). All content is for information purposes only and is not to be construed as guaranteed outcome. 2014 Helios HR, LLC. All rights reserved. For more information, please contact: Helios HR 1925 Isaac Newton Square, East, Suite 200, Reston, VA 20190 (703) 860-3882 www.helioshr.com 1925 Isaac Newton Square East, Suite 200, Reston, VA 20190 Helios White Paper Human Capital Rising 2014 All Rights Reserved. 11 HeliosHR.com Info@HeliosHR.com 703.860.3882