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EMPLOYEE ENGAGEMENT July 2014

The way you treat your employees... is the way they will Treat Your customers INSIDE: Dave Baxter on the new demands of Generation Y | Pages 8–9

Business Reporter · July 2014

Employee engagement

Opening shots René Carayol

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T’S EASY for most of us to cast our minds back to our favourite teacher at school. That teacher was probably the one who was most enthusiastic about both their subject matter, and getting their points across to all the students in the classroom. They tended to be the teachers whose classes nobody skipped, and everyone completed their set homework. They are probably the ones about whom, even if you forgot what they said, you always remembered how they made you feel – engagement was key. Gallup’s 2012 report pulled together 263 research studies across 192 companies and found that top-quartile companies for engaged employees, compared with the bottom quartile, had 22 per cent higher profitability, 10 per cent higher customer ratings, 28 per cent less theft and 48 per cent fewer safety incidents. The case for better engagement is irrefutable – so why are so many scores still so bad? Well, a look at what disables engagement most points to five recurring themes. One of the most common is that organisations going through significant

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Rules of engagement: the lessons from school which can help us all in later life transition forget to “up” engagement levels. This is followed by the combination of overloading the workforce and poor performance management. Many make it difficult for high performers to advance. A more modern finding is a culture that doesn’t embrace diversity, and finally, outdated working conditions making work difficult. The data from engagement surveys is hugely valuable in itself, but the real differentiator is what organisations actually do with the resulting data. Many progressive organisations use the data to drive meaningful dialogue. This alone can transform engagement scores, but perhaps is no longer sufficient on its own. The real prize is much more about establishing a high-performance work environment. This requires the mission and values to be well communicated, leaders who live the values every day and,

Follow us on twitter: @biznessreporter vitally, people carefully selected for fit. When this has been eventually achieved, it’s a great start, but nothing stays still for long nowadays, and the work environment must be continuously tweaked and redesigned to ensure it remains modern, humane and enjoyable. A tall order, but eminently achievable. Apart from our favourite teacher who (perhaps with my faded memory) appeared to deliver positive engagement at every class, I experienced all this and more during one of the more unlikely periods of my career. At IPC Media, we had just commenced an audacious management buy-out, and had taken the business private. Away from the glare and scrutiny of the stock markets, it was possible to reshape the business to out-deliver our financial commitments. The new sense of purpose, common goals and shared commitment was immensely powerful and energising, despite the tough everyday challenges and tightening cost environment. While the financials were paramount, numbers never generate excitement, the leadership and the workforce together created an enduring sense of adventure and an energising buzz. We were in this thing together with an authentic interdependency. Every day was tough but memorable because of the natural collaboration. We gave our people our attention and they gave us theirs, just like our favourite teacher.

Business Reporter · July 2014

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Like us: www.facebook.com/biznessreporter HAPPINESS makes people around 12 per cent more productive in the workplace, according to new research. As part of a University of Warwick study, economists carried out four different experiments with around 700 people. Those taking part were either shown a comedy film clip or given free chocolate, drinks or fruit. Others were asked about recent family tragedies to lower their happiness levels. Those who were given pleasant experiences beforehand were roughly 12 per cent more productive, meaning organisations could benefit from focusing on employee wellbeing. Dr Eugenio Proto, one of the researchers involved in the study, said: “We have shown that

Employee engagement

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Happiness breeds productivity, says survey happier subjects are more productive. The same pattern appears in four different experiments. This research will provide some guidance for

management in all kinds of organisations – they should strive to make their workplaces emotionally healthy for their workforce.”

Firms lose staff trust over appraisals By Dave Baxter APPRAISALS could be seriously hurting staff morale, according to a recent study. The Spring Employee Outlook survey, released by the Chartered Institute of Personnel and Development (CIPD), found that 30 per cent of respondents felt their employer’s appraisal process was unfair. On top of this, 32 per cent said they felt progression within their organisation was unachievable. The survey, which involved roughly 2,500 employees, also pointed to staff concerns around t he way perfor mance is managed, particularly in the public sector, with the CIPD urging managers to rebuild the trust of their staff. Claire McCartney, a research adviser at the CIPD, said: “This survey shows a marked increase in negative perceptions of senior managers, with overall trust and confidence in senior managers

hitting a two-year low. Trust and confidence levels are particularly low in the public sector, and have potentially been influenced by the current unrest and strike action taking place in this sector. “The survey also reveals real performance management and progression issues. Again, this is likely to be linked to the current unrest in that sector related to pay, pensions and performance. “There are also real concerns regarding progression across sectors, but particularly in the voluntary sector, with more employees feeling that career progression is unachievable.” Other results were more positive, with the level of employee satisfaction around work-life balance standing at 58 per cent. The percentage of employees reporting excessive pressure at work, either every day or once or twice a week, was

41 per cent, and 15 per cent of respondents said it was either likely or very likely that they could lose their job as a result of current economic conditions. The report claimed this was because of a number of factors causing “some uncertainty” for employees, adding: “We are still witnessing corporate scandals involving senior leaders in the press which are likely to be impacting on employees’ overall confidence and trust.” The survey also warned that talent was “still planning to be on t he move ”, add i ng: “Organisations therefore need

to think very carefully about creative retention strategies in order to retain their top talent as the economy picks up. “In particular, this survey’s results show that much more work is needed around effective and motivating performance management approaches, as well as providing progression opportunities for the majority of employees, who will have seen ver y lit tle movement in organisations over the last few years. Clearly more also needs to be done in order to build conf idence and tr ust in senior leaders.”

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The research paper reads: “Various implications emerge from the experimental results. First, it appears that economists and other social scientists may need to pay more attention to emotional wellbeing as a causal force.” It continues: “If happiness in a workplace carries with it a return in productivity, the paper’s findings may have consequences for firms’ promotion policies, and may be relevant for managers and human resources specialists. “Finally, if wellbeing boosts people’s performance at work, this raises the possibility, at the microeconomic level and perhaps even the macroeconomic level, of self-sustaining spirals between human productivity and human wellbeing.”

Business Reporter · July 2014

Employee engagement

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Employee engagement for a brave new HR world Collaboration and communication are prerequisites for a successful strategy Getting the right support

INDUSTRY VIEW

ews on the UK economy has been resoundingly positive in recent months, with the Office of National Statistics (ONS) reporting the fastest growth in more than six years 1. While this provides a much needed shot in the arm for business confidence, the upshot is that it also boosts employee confidence, making retaining talent more challenging than ever. The Recruitment & Employment Confederation (REC)2 confirmed that the UK has indeed entered a candidate-driven market, with figures showing a drop in the availability of talent and rising salaries. Businesses must work increasingly hard to keep staff engaged, loyal and productive, to ensure they can maximise the new favourable business conditions. Recent ADP Workforce View3 research reflected this shift, showing that talent management and retention are the top priorities for HRDs this year, with employee engagement close behind. While monetary reward is the eternal motivator, it isn’t the only way to keep employees engaged, as the ADP Workforce View confirmed. Praise and recognition was cited by workers as the most important factor aside from pay, followed by the ability to work flexibly, with employee benefits and fair leadership coming in third and fourth spot respectively. Career progression is also vital, with workers saying a lack of direction is the biggest demotivator. Meanwhile, a study by the Society for Human Resource Management (SHRM)4 concluded that providing employees with more feedback, autonomy, training and task variety was linked with all aspects of engagement. Annabel Jones, HR Director at ADP UK,

explains the engagement challenges facing HR: “It is crucial that organisations understand what engages and motivates their workforce and plan their strategy accordingly. Engagement isn’t a ‘one size fits all’ approach – different personalities and generations are motivated in different ways. All factors must be addressed – from reward and benefits, to training managers, to giving feedback and praise regularly and empowering employees to drive and manage their own career development.” Yet studies show that it is worth the effort, with research by Dale Carnegie Training showing that companies with engaged employees outperform those without by up to 22 per cent . The benefits are myriad, including improved productivity and retention.

Barriers to engagement In many cases, employers know what they should be doing to engage employees, but all too often this is not put into practice. According to a survey by PwC, 93 per cent of CEOs recognise the need to change their strategies to attract or retain talent. But 61 per cent haven’t acted on their plans, possibly, says the report, “because they don’t think the HR function could cope”. This is a serious problem for the HR department, which is still spending too much time on personnel administration. Another study, the Aberdeen Group Human Capital Management (HCM) Report , found that nearly half (47 per cent) of organisations feel that HR is bogged down with administrative tasks which do nothing to add value to the organisation, including collecting and managing employee data, or carrying out manual time and attendance tracking.

Having the right technology in place is critical to ensuring that HR can turn its attention to developing and implementing its employee engagement strategy. Yet existing systems are often fragmented and outdated, impeding their potential to increase efficiency and aid decision-making. Legacy systems not only mean too much manual input, re-keying of data, and the need to manage numerous databases, they also cause problems with accuracy and limit reporting capabilities. In the age of big data, companies that aren’t able to harness and maximise the information available to them are in danger of being left behind. Integrated reporting allows organisations to spot trends and potential issues, which can help shape the business for the future. Modern systems, for example the ADP iHCM platform launched recently by ADP, are bringing together all elements of HR administration, payroll and talent management, consolidating all workforce data across the employee lifecycle on a single HCM platform. Time wastage and duplication are eliminated, along with the need for multiple and legacy systems that limit efficiency. Cloud-based solutions such as ADP iHCM can be accessed from anywhere, at any time, by HR, line managers and employees, giving everyone immediate access to and visibility of information relevant to them. The admin burden on HR can be further reduced through employee and manager self-service (ESS and MSS), allowing staff to view, input and update their details as and when they need to. This also gives employees increased control over their learning and development, career planning and benefits, while facilitating faster onboarding of new staff by giving them immediate access to company information. Meanwhile, giving managers greater visibility of performance, competency and development information for their teams means they can more actively help employees to perform and be productive, in line with business objectives. The proliferation of smartphones and tablets also makes it easy for employees to access and use HCM systems, no matter what device they prefer to use, via specially designed online apps. This

means increased flexibility, and allows for different personalities and generations who may be comfortable using different technologies.

Driving employee engagement through technology Collaboration and communication are prerequisites for a successful employee engagement strategy, and these can also be assisted through the right HCM system. Integrating business objectives and best practice into the platform allows these to cascade down the organisation, so all employees are aligned with these in the course of their work. This can also contribute to employee engagement by helping staff see how they are contributing to overall business goals. Measurement and tracking are also crucial to any employee engagement programme, so organisations can see how they are performing against their objectives. It is no longer enough to provide basic absence and retention figures; senior management are now demanding more in-depth insight. This requires more sophisticated, real-time reporting, which can only be provided through a modern, cloudbased HCM system. As we move into a new economic era, competition for both market share and talent will continue to intensify across the business spectrum. With employee engagement at the forefront of the HR agenda like never before, companies must ensure they have the tools to make those plans a reality. 0800 180 4994 uk.adp.com

ONS Gross Domestic Product Preliminary Estimate, Q1 2014 2 Recruitment and Employment Confederation (REC)/KPMG Report on Jobs (May 2014) 3 The Workforce View 2013 4 SHRM 2012 Employee Job Satisfaction and Engagement Report

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Employee engagement

Parent Trap

The Mumsnet generation is feeling the squeeze at work and home – but a new support network is helping young parents cope with the daily grind at both ends

By Dave Baxter

Business Reporter · July 2014

HOUGH it might seem brutal, demanding and almost impossible for the women and men working in the City, balancing a career with family life is at least becoming less of a lonely pursuit. The Citymothers forum, which aims to help mums sustain the momentum in their career through its regular networking events, recently extended its support to dads with the introduction of the Cityfathers initiative. Citymothers and Cityfathers, which started in 2012 and 2014 respectively, have now amassed some 3,800 members combined with a smaller network for non-parents, Cityfriends. On top of this, the networks have hosted high-profile speakers including deputy prime minister Nick Clegg and his wife Miriam Gonzalez Durantez at their events. It could be a sign of progress for highly competitive sectors such as investment banking, where juggling parenthood with a successful career seems difficult. But employees wanting to achieve this balance still face significant problems. Louisa Symington-Mills set up Citymothers after having issues with both her career and childcare costs. “There were two things that coincided in 2012,” she says. “I had not long been back to work after my first maternity leave. I was working in investment banking. “I took four months off with my first child, and I was struck by the lack of networking opportunities for women who wanted to keep their careers moving forward but wanted a work-life balance as well. “I found it difficult to attend events at 7.30 at night, and I thought there were people who wanted content that’s more relevant to working parents. “Around the same time, I had issues finding the right childcare for my daughter. It seemed like a really big deal at time.”

The organisation aims to meet these challenges by holding networking events at more convenient moments – often at lunchtime – as well as other support mechanisms including an online forum. Meanwhile, other attitudes could change over time. The Institute for Public Policy Research (IPPR), a think tank, recently suggested that working dads should be given a month of statuatory paternity leave, up from the current period of two weeks, and be paid double the current amount for this in order to offset financial concerns. Speaking at the time, Kayte Lawton, a senior research fellow at the IPPR, said: “New parents need time away from work to care for their young children, and to strengthen their relationship with each other at what can be a hugely enjoyable but also very stressful time. “However, this is often difficult for fathers because they have limited entitlements to paid leave and so they often assume the role of breadwinners while their partner is on maternity leave.” Symington-Mills believes that awareness is increasing around employees’ needs when it comes to parenthood and work, but admits that organisations can “vary enormously” in their approach. “Some of the big banks and law firms have very substantial budgets. They are very well-resourced and have great internal processes,” she says. “But then others don’t have any of that. Even within those firms that do have great policies, there’s a big difference to what’s said and what’s done. “That crops up with the line management and the culture of working. But I think there has been a huge improvement in the last five years – there’s increasing awareness.” She also notes that, while it is important to include both men and women in the debate around parents working, mothers and fathers face different issues. “It’s very hard if you work in a traditional profession, particularly in a male-dominated profession,” she says. “This is largely a female issue, and has become a father’s issue increasingly. It’s very hard to flip the switch from being a stay-at-home mum and having a full-time job. “For fathers it’s almost the opposite – the expectation is that they will move their careers forward and remain job-focused. We found that men had similar desires [around parenting] but they can’t ask for flexible working. Women could get it quite easily and don’t have the same qualms – but for the mothers they feel their careers can be really stuck. “There’s a problem with retention of women, often related to maternity, when we get to those career crossroads. We might start to make decisions about whether your career is going to be worth pursuing to offset childcare costs.” For now, she believes an important debate is beginning about the possibilities of flexible work for parents. “We should get to a point where you don’t need a reason to ask for flexibility,” she says. “We need to move away from this culture of presenteeism – it’s a very hard thing to imagine doing.” And she has little time for the argument that parents cannot successfully balance a family life and a career. “I just don’t think that’s true,” she says. “We can work full-time and part-time. What we have in common is we want to keep working. They [parents] enjoy their jobs so much, but they want to carry on in a different way. They contribute an awful lot but they happen to be parents.”

Business Reporter · July 2014

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Working after hours becoming normalised, AXA study reveals By Dave Baxter

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MORE than a quarter of UK employees could be working more than seven hours of overtime per week, research has suggested. A study of employees carried out by insurer AXA PP found 47 per cent of respondents saying they work four or more extra hours a week, and 27 per cent saying this figure amounted to seven hours or longer. But of these, only 43 per cent said they were paid for the overtime. The survey pointed to a culture where overtime may have become normal, with 36 per cent of respondents saying they feel guilty for leaving the office on time. On top of this, 40 per cent blamed an excessive workload and 20 per cent pointed to pressure from workmates or managers as reasons for working late. Dr Mark Winwood, of AXA PP, said managers needed to realise that overloading workers could “dent” productivity, and that they should act to change their workplace culture. He said: “Overtime is too often worn as a badge of honour

and seen by employees as a requirement for success. Senior management has a critical role to play in challenging this widely held view and, by demonstrating strong leadership, can help to foster a workplace culture where employees are treated fairly and greater emphasis is placed on effective performance management rather than on simply being seen to be putting in long hours.” Some have been campaigning against unpaid overtime. The Trades Union Congress (TUC) released figures earlier this year estimating that the number of people working unpaid overtime had gone up by 331,000, to 5.42 million, last year. If correct, the TUC figures, based on analysis of Office for National Statistics data, show the biggest annual rise in this since records began in 1998. The analysis also points to the average amount of unpaid overtime done reaching a record seven hours and 48 minutes per work, which the TUC values at £640million per week, or £33billion a year. Frances O’Grady, the TUC general secretary, has warned that businesses could be taking employee “goodwill” for granted, leading to

Firms urged to make employee benefits flexible

The TUC’s Frances O’Grady at last year’s Labour Party conference

issues around happiness and productivity. She said: “Staff don’t mind doing a few additional hours during busy periods, but too many employers take this goodwill for granted and forget to thank their staff. “Further problems arise when those occasional extra hours become the norm, and staff become overworked and underpaid. “The many bosses who encourage long hours in the office should rethink their approach as stressed, overworked staff are often unhappy and unproductive. If there really is too much work to go round, employers might want to consider taking on new staff.”

A LARGE number of companies see employee benefits as too much of a financial burden, according to research. A survey of 636 employers across 17 countries in the Europe, Middle East and Africa region revealed that 82 per cent saw an “increased financial burden” as the main barrier to introducing employee choice schemes. Mercer Marsh Benefits, the company behind the survey, classed “employee benefits choice” as giving workers the ability to control the benefits they receive, such as products and insurance. In this case an employee could, for example, reduce some of their benefits in return for more take-home pay. Despite this perception, many of those surveyed were involved with the schemes, with 53 per cent saying they offer benefits choice to their workers and more expecting to get involved in future. David Levey, of Mercer Marsh Benefits, said: “Cultural, historical factors and the role of the state influence how benefits are provided in each country, so difference is to be expected. For multinational companies, though, the most important consideration is balancing cost management with improving employee engagement. “As the economy across Europe picks up, attraction and retention of employees is more important than ever, and providing a choice of benefits is a proven effective way of achieving this.”

Specialist recruiters are invaluable in the war for global talent INDUSTRY VIEW

ore executives than ever before are considering moving abroad to work, according to the fifth Global Professionals on the Move Report from Hydrogen Group, a leading global recruitment company. Over the last five years, the percentage of people willing to work abroad has risen dramatically, more than doubling from 16 to 35 per cent, and the latest figures show that almost 8 per cent of the world’s total workforce is now employed outside their home market. This trend is set to continue as companies increasingly realise they have a global pool of talent to recruit from. As perceived barriers to recruitment have melted away, so demand for candidates with international experience has increased. Candidates are now specifically seeking positions abroad in order to accelerate career development. The desire to work abroad reflects a radical shift in perceptions by global professionals, as 40 per cent of those working abroad said that there were no barriers to moving abroad, compared with 2010 when all those surveyed felt there were some barriers to moving abroad to work. This sharp increase in mobility during the worldwide financial recession has coincided with

a large rise in the number of social and web-based recruitment services. However, despite this trend, more than ever before candidates and companies are choosing to use global recruitment specialists like Hydrogen to satisfy their recruitment needs. Hydrogen’s survey showed that nearly 80 per cent of respondents seeking to move abroad to work had spoken to a recruitment agency, compared with only 20 per cent approaching their employer. This suggests that high-calibre candidates are not prepared to wait for their current employer to make them an offer if they feel their talent is in demand elsewhere. Specialist recruitment consultants and head hunters are invaluable to both companies and potential candidates in the global jobs market. They can match a candidate to an employer’s requirements quickly and efficiently. For the candidate, they ease the burden of applying for numerous jobs, and for the employer, the need to screen large amounts of candidates to find the right person. In addition, they understand local pay and contractual conditions and can advise candidates appropriately. The consultant in essence acts as a broker in the recruitment process. This emerging trend for the global transfer and exchange of skills and knowledge between

countries should be facilitated. A balanced approach to the global mobility of professionals can ensure that such a transfer does not result in a talent drain or surplus in any one country, but is mutually beneficial to companies, professionals and countries. The report was compiled with help from European business school ESCP, and is based on interviews with 2,444 individuals, spanning a wide range of industries from across nearly 100 countries. Tim Smeaton is CEO of the Hydrogen Group +44 (0)20 7002 0000 www.hydrogengroup.com

Business Reporter · July 2014

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Rigging the game Shipping firm Maersk is just one company that is trying to increase employee motivation by releasing its own video game. Dave Baxter reports

N QUEST For Oil, an online game released by energy and transport firm Maersk, the task is simple and self-explanatory. Players must use the tools at their disposal, such as seismic data, to seek out valuable oil. While it may not appeal as much as Candy Crush or the latest Grand Theft Auto, this is one example of gamification, something being used to motivate workers and improve their performance. Gamification is not restricted to actual games. Toby Beresford (inset), the founder of Leaderboarded, a scorekeeping engine, describes it as “using game mechanics” to affect an individual’s behaviour. “It’s about breaking down bits and pieces you would see in games for a non-leisure context,” he says. “It might be running or health or being a better employee. Those mechanics are more useful for the person who is using them. In many cases this can mean monitoring a worker’s process in a certain respect and using this scorekeeping to motivate them to achieve a goal. One common form of gamification is the leaderboard, tracking employees’ performance and pushing them to compete with others or themselves. With gamification becoming popular among businesses, it could continue to have an important role in how well employees work and how motivated they feel. But Beresford believes the next few years will be a time of “e x p e r i me nt at ion” for companies using it. “I think we are still in an experimentation phase – there will be a lot of bad gamification and a lot of DIY, poorly i mple me nte d , p o orl y

Quest For Oil lets players try their hand at running their own drilling operation

understood gamification which may or may not have a positive impact,” he says. “Over the next two years we will see a lot of experiments taking place and some stuff that works and some stuff that doesn’t. Then I think in five or 10 years we will see better processes emerging.” Pete Jenkins, a co-founder of the International Gamification Confederation, believes that gamification can apply to various parts of business, from internal processes to focusing on how a company is perceived. “There is a gaming project encouraging users to delete stuff off the shared drive at work,” he says. “You can also use gamification in recruitment, so people can learn more about a business or even be trained up. “With Quest For Oil, they wanted to let people know they weren’t just a shipping company – you had to understand seismic reports and managing oil rigs.” Jenkins believes gamification is going through a big change, even if it suffers from hype in the business world. “It’s a bit of a fad,” he says. “It’s currently at the top of the Gartner Hype Cycle [which measures the hype around emerging technologies before they encounter problems]. The others at the top are 3D printing and big data, but that doesn’t mean it’s not

relevant. There are companies tweaking their use of gamification. If one method isn’t working, that doesn’t mean you stop it. You change it. Gamification is going to be around for ages, because businesses love metrics. Games are really good for presenting information.” Companies using gamification are likely to expect results, but Beresford is quick to warn firms to use it in a way that benefits the workforce. He says: “I think a really important thing about gamification is understanding that it’s not about the company gamifying its employees – it’s too close to manipulating its employees. “That’s very much not the point of gamification. The point is to give employees better feedback. I think it’s good when it’s good value to the players rather than the managers. “The more people understand gamification to be valuable for players and service to the customers rather than that traditional sales leaderboard manipulation, the better.” He also points out that gamification can backfire by, for example, causing workers to stop a task once they have been “rewarded”, or making them more generally lose sight of their objectives.

Experts urge firms to rethink exec bonus culture By Dave Baxter BONUSES for top executives have become highly controversial following the financial crash – particularly in industries such as banking. In the last few months, both Barclays (inset) and RBS have faced anger over their bonus schemes. Other companies, such as Sports Direct, have provoked the ire of shareholders over plans for executive pay. On a more popular note, Simon Wolfson, the chief executive of Next, pleased staff this year with plans to share

out his £4million bonus, effectively creating a pay rise for his employees. The effectiveness of different financial gifts has become a hot topic, and highly disputed. But recent research suggests that, if used in the right way, certain incentives could help to boost employee productivity. The research paper, When 3 + 1 > 4: Gift Structure And Reciprocity In The Field, put together by three Harvard academics, argues that bosses need to consider how exactly to use their money when attempting to give staff extra incentives. It argues that, rather than raising staff wages or

even hiring more people, companies could be boosting their current output by giving out a “clear and unexpected gift” to existing employees. The report, which resulted from an experiment with 266 employees, reads: “Do higher wages elicit reciprocity and hence higher productivity? “In a field experiment with 266 employees, we find that paying above-market

wages does not have an effect on productivity relative to paying market wages. However, structuring a portion of the wage as a clear and unexpected gift (by offering a raise with no further conditions after the employee has accepted the contract – with no future employment) does lead to higher productivity for the duration of the job. “Targeted gifts are more efficient than hiring more workers. However, the mechanism makes this unlikely to explain persistent abovemarket wages.”

Five factors to drive engagement INDUSTRY VIEW The future workplace is diverse, with a new generation of internet and social media-savvy employees. Keeping those employees engaged to create competitive advantage is a challenge. Communications isn’t a silver bullet for success. However, if a business with good products, services, processes and commercial acumen also has a strong communications culture, it is well equipped for success. Why? Because communication is key to creating an engaged workforce. There are five factors that together drive employee commitment, motivation and involvement: • Purpose – the company’s raison d’être • Reputation – drives perceived value, share price, customer and employee loyalty • Integrity – evidence that reputation is shown • Direction – how employees can contribute to business goals and their own development • Energy – the physical and emotional stamina required Combined, these are elements that allow employees to develop PRIDE in their brand and roles, all of which achieve business objectives. Everything we do at theblueballroom is to help companies to better deliver business inside and out – we include all stakeholders when discussing strategic and tactical communications challenges. We believe future, existing and former employees, partners, customers and investors play a role in an organisation’s success. Having worked with clients for the last 30 years, we have seen this attempted with quick-fix solutions. However, it has always been the companies that invest in long-term communications strategies that reap the best results. www.theblueballroom.com

Business Reporter · July 2014

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As a new generation begins to ascend the career ladder, Dave Baxter looks at how businesses need to start considering different ways of working in order to benefit from its unique

Mediation helps achieve the best outcome INDUSTRY VIEW Unresolved conflict is a significant barrier to employee engagement. Conflict creates uncertainty; it generates fear and exacerbates stress and anxiety. The cost of workplace conflict runs to an estimated £33billion each year, according to the Confederation of British Industry (CBI), taking up 20 per cent of leadership time and resulting in 370 million working days lost1. Resolving disputes Mediation is playing a key role in delivering the government’s strategy for reducing the number of cases reaching a tribunal. Many companies are now using mediation as an integral part of their engagement strategies. Rebuilding relationships Mediation is delivered by a neutral, objective third party. It could be a senior manager, an HR professional, an internal or an external mediator. Their role is to create the conditions for dialogue. Mediators help the parties to listen carefully to each other without the blame and negativity often associated with conflict; the parties then become more reflective and as a result, more empathetic. As the mediator creates a safe space, the parties engage in a constructive and compassionate manner. Making mediation a reality Mediation delivers significant benefits. Organisations are now training their managers and HR teams to act as mediators, but they do also benefit from having access to accredited external mediators. If you need to get better outcomes from disputes at your workplace, there has never been a better time to start using mediation. Mediation works. 0800 294 9787 www.thetcmgroup.com 1 The Chartered Institute of Personnel and Development

OUNG, ambitious and ready, the latest generation is on its way up, with new ideas about what it means to be an employee or even run a business. Generation Y, roughly defined as the group born in the 1980s and 1990s, has entered offices across the world, with individuals now advancing up the career ladder. Like any generation, it appears different from those who came before. In a series of different generalisations, the cohorts of Generation Y have been described as collaborative, workshy, digitally savvy and anti-authority. Adapting to different attitudes will be a challenge for companies, and these so-called “millennials” could already be having a huge impact on the way businesses and their leaders operate. Commenting on a report about the generation’s effect on enterprise last year, Dennis Finn, vice chair and global human capital leader at consultants PwC, warned: “The millennial generation is already transforming long-held management practices within the workplace. “Employers who want to recruit millennial employees and keep them engaged and happy will need to adapt to meet their needs.” And whether or not the generalisations apply, Generation Y will be in workplaces for some time. In a challenge for employers, so will other groups that could be much different. With personal longevity increasing and people likely to retire later than they used to, a range of different generations are finding themselves working together, side by side. From the baby boomers, roughly classed as those born between the 1940s and 1960s, to Generation X, broadly defined as those born between the 1960s and 1980s, a range of different groups will have to work together effectively. And while experts are reluctant to use stereotypes, they argue that differences between generations will require new, flexible approaches from leaders and managers. They also claim that a diversity of skills and attitudes could act as an asset for businesses, if harnessed correctly. Gayle Peterson, an associate fellow at the University of Oxford’s Said Business School and the co-founder of a philanthropic consultancy, believes that while generalisations are unhelpful, there will be important differences between groups. “I think we have to remember we are talking about a global context,” she says. “Someone in Turkey will be different to someone in China of the same age. There are differences ac r o s s t he world. Accounting for that, there are some

(Below, inset) Clare Kelliher of the Cranfield School of Management

differences. The Y Generation has grown up with technology in a way that the baby boomers didn’t. Generation Y treats people more as peers than according to seniority, and there is more of a collaborative intent.” She also notes that Generation Y is more demanding in terms of a need for purpose and fulfilment. She says: “Y is wanting to have a purpose in life. I see that there’s a growing need to have fulfilment. Even though the Y Generation is 24/7, there’s a drive to have purpose. All of these things have an impact for business. There’s work to live and live to work – Generation Y is definitely work to live. “The Y Generation can multi-task, and could be sitting and listening to the internet and doing a research paper at the same time. But they need more feedback, more often and with more clarity around goals than Generation X works with.”

lare Kelliher, professor of work and organisation at the Cranfield School of Management, also warns against “stereotypes” around different age groups, but notes that Generation Y could be keen on activities beyond work, as well as the opportunities to develop a career. “We find that younger generations are interested in their career,” she says. “They are looking for opportunities and opportunities for promotion. “More generally there’s research that shows that younger people concerned with what skills and experience they can take away from the job. It’s about what might help them get that next job. There is also research that suggests there are work-life balance issues and a focus on the opportunities for volunteering, particularly for Generation Y and some of the younger members of Generation X.” And with older workers, particularly those approaching retirement age, she believes there may be a new demand for added flexibility around working conditions. She says: “Many older workers are having to take more caring responsibilities for older relatives, so sympathy and understanding are important. There are also those who know that they have to work longer. They will need development opportunities, but perhaps flexible working is something that older workers in the rundown to retirement may want in different ways. “This could be working different times or working from home. People also want to see the time they have got left in the workplace as meaningful, rather than just doing their time.” Whether it’s greater flexibility for older employees or giving younger workers a sense of real purpose, leaders will have to meet different needs if they want to retain talent. But Kelliher is less concerned about the issue of getting people to work together.

“I think that most people in their lives interact with people who are different ages through family and friends,” she says. “I don’t think it necessarily creates big problems in terms of co-operation, but a need for recognition that people may want different things. In terms of policies that employers can choose, you may need to have a flexible working policy.” When it comes to handling a diverse workforce, Peterson believes in the “strength finder” concept, where employees are allocated tasks according to their specific talents. “It isn’t as hard as you think,” she says. “You identify what people will be good at and you start to mix and match. “You want people to be aligned and in flow. In healthcare, you may have a great doctor who’s a crummy administrator. What do you need to do to support that person? It’s all about how you build on their strengths. It’s not the old way of saying, ‘You will be good at this and you will be good at this’.” She believes that leadership will need to adapt to different employees, but also that this variety will help organisations deal with an increasingly complex set of challenges in future. “The World Economic Forum does a risk analysis every year of the issues that emerge around the world, and those that would have the greatest impact on your business. “Those issues include poverty, income disparity, cyber attacks, climate change and food scarcity. Those are wickedly different problems. “These are problems which require different leadership styles to the old way of command and control. And if you look at the collaborative nature of the Y Generation and some of the X Generation, that could help. “Leaders of the future require collaboration and empathy to address those complex issues. They need different kinds of partnership, and they should be building on those differences. “Someone’s going to have to solve problems such as climate change in the short term, and we need different leaders for that.” With new generations on the rise and older workers staying for longer, the diverse mix of ages could become much more common in workplaces around the globe. But if companies adapt to this, it could be a huge advantage in the future.

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Creating a culture of accountability INDUSTRY VIEW

any organisations have responded to the focus on employee engagement by appointing a head of employee engagement or similar role. This person is given the challenging task of “improving our engagement index by 10 per cent” or “achieving a top five employer of choice position”. While such roles are important, real transformationial employee engagement is achieved when all employees from the boardroom to the shop floor play their part in creating a truly engaging workplace. Grass Roots recently worked with a leading aerospace company to help articulate what successful engagement looked like for their organisation, and the role that senior managers could play in improving engagement. At the end of the conference, the chief executive made a personal pledge to do something differently that would help increase employee engagement. He made a simple pledge to spend more regular quality time with the manufacturing team, and create better two-way dialogue. Furthermore, he encouraged his senior team to make pledges. Fifty-eight pledges were made by individuals taking responsibility for employee engagement. Social accountability works. If you have ever been sponsored to run a marathon, you’ll know how accountability helped you to deliver on your promise. i-Pledge, the social accountability tool from Grass Roots, enables employees to take responsibility for engagement. Users simply make pledges, copy in colleagues, update on their pledge progress and sign up to practical hints and tips to help deliver on these. i-Pledge also provides detailed reporting on pledges being made across the organisation, and can integrate seamlessly with the Grass Roots Social Recognition suite. It’s music to the ears for the head of employee engagement. For more information on how i-Pledge could benefit your organisation, contact a member of the Grass Roots employee engagement team. 01442 829273 francis.goss@grg.com

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Employee engagement

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Why do wellbeing at all? Putting people at the heart of your business and supporting them when they need it makes commercial sense

INDUSTRY VIEW

ealth and wellbeing at work is a nice issue to address, but is it really worth it for businesses and organisations? What is the business case and rationale behind organisations actively engaging in the provision of wellbeing services to staff? We would argue a comprehensive wellbeing strategy is essential in today’s global economy. Figures released this June show that UK productivity is now 30 per cent lower than in the US, France and Germany. Employers that buck this trend with higher productivity win a competitive advantage over domestic competitors. They recognise that productivity has three interrelated dependencies: the knowledge and skills to perform well (capability), the motivation to do so (engagement), and a conducive environment (management). All three of these areas are closely related to workplace wellbeing. From our point of view, wellbeing falls into three broad areas. The first of these is prevention. This means putting in place things like healthy eating advice, ergonomic assessments, and stop-smoking campaigns to avoid staff getting ill in the first place. Occupational health activities are also important too. The next broad area is early intervention – nipping serious problems in the bud. That could be through provision of support such as physiotherapy or other services that stop conditions becoming chronic. Clearly, things like private medical cover and other fast-response

wellbeing services help here too. Finally, if something does go wrong, it’s important that employers are there to support employees financially to ensure they can focus on getting better, not on financial worries. Wellbeing is about putting people at the heart of your business and supporting them when they need it the most. A recent survey of employers found more than 90 per cent believe their employees are their most important asset. This is the same no matter the industry. Yet more companies have insurance to cover easily replaceable assets like printers and mobile phones than they do to cover their staff when unable to work through illness and injury. Fewer than one in five (17 per cent) companies protect against long-term sickness by offering income protection as part of their employee benefits package, indicating that they may not be protecting the asset that is the key to the success of their business. So, given that employees are important, retaining key staff such as those earning £25,000 and above should also be important. We commissioned analytics house Oxford Economics to quantify this. Most businesses have a fair idea of the costs of headhunters, job advertisements and time spent interviewing. In the research this came out at an average of £5,433. But that number is dwarfed by the hidden cost of lost productivity that you have to absorb while a new member of staff learns the ropes and builds the internal relationships they need to be working at their optimum level. This is more than £25,000, nearly five times

higher. This shows that getting your staff retention strategy right is worth it and pays back a lot more than your finance team might have estimated. Which leads us to the next key questions – what is the right retention strategy? What conditions will keep great staff happy? And what does wellbeing do here? In April, we asked ICM to survey employees to understand all the components that staff expect from their employers, including salary, leadership and management, and working conditions, alongside employee benefits including wellbeing support. Unsurprisingly, a fair and competitive salary is most important. However, very close behind are such softer factors about line management and empowerment – personal fulfilment at work. And studies this year by Towers Watson and the Work Foundation both show that just paying people higher salaries does nothing to drive loyalty. Essentially you’re hiring mercenaries who’ll leave for the offer of more money, unless you address the other components of being a good employer. Wellbeing related components do matter to employees, falling in the mid-range, alongside such things as having an inspirational leadership group, and career progression. Most surprising was what came right at the bottom, given that salary, pensions and bonus have been the mainstays of benefits packages for a long time – bonuses and pensions are less important than wellbeing, showing that wellbeing has a significant role to play in being an employer of choice. Moreover, nearly a third of employees said they’d be ready to leave their job if wellbeing support was insufficient, and a fifth would leave if they saw little longterm future. Given the high cost of turnover for each staff member highlighted by the Oxford Economics research, this sets the stakes ever higher. Furthermore, a

significant minority of staff had seen a decline in wellbeing over the recent recessionary period. Workplace wellbeing is a key component to becoming an employer of choice. It demonstrates to staff in a very tangible way that you’re a caring employer who’s looking out for them and will be there when things go wrong. The building blocks of this are: A competitive package: Salary alone isn’t enough. If your employees are only with you for the money, they will quickly leave you for money elsewhere. However, ensuring that you offer a rounded benefits package will appeal to more than just financial motivations. It offers security and is a tangible way of valuing your employee’s loyalty to the business. Workplace wellbeing: It is not just a “nice to have” – as shown by our research, it really does matter. Workplace wellbeing goes beyond offering fruit and encouraging exercise, it focuses on building the resilience of your employees so that they can cope when things aren’t going well. Interesting and engaging work: A fair and competitive salary is important, but almost as important is the social environment and being given responsibility and trust in your job. Businesses should look at their culture, management, job progression and remit, development opportunities and most importantly, listen to what your employees are saying. Building a greater connection between employee and business will increase employee loyalty. Supportive environment: A caring and supportive environment where employees feel listened to and valued helps to get the best out of your staff. This doesn’t mean it is about making employees happy, it is about providing a working environment that is conducive to high performance. Linda Smith (left) is HR director at Unum @AskUnum www.unum.co.uk

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Inspector Dogberry

While Dogberry recognises off ladders at work, he was interested to read a report arguing for an emphasis on employee health, rather than merely avoiding accidents. The paper, published by the

introverts – those more sensitive

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employees because the hustle and

of comfortable, well-lit cubicles

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important, and that the open office could be killing

disturb them, interrupting their “flow”. But Cain

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to get some peace and quiet after moments of stress or interruption.

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Like his readers, Dogberry has spent recent weeks agonising over the World Cup. England have already disappeared from the running, but this hasn’t stopped the inspector from hiding behind the sofa to cope with the tension. But the tournament may have deeper consequences. The Advisory, Conciliation and Arbitration Service has released guidance aimed to “help employers prepare for potential issues that could arise over the World Cup period”. This includes urging employers to allow more flexible hours, but also confronts potential problems, from employees calling in sick after matches to people drinking in the office. Dampening the World Cup spirit will not be easy. But adding some order may be possible. Twitter: @dogberryTweets

the importance of not falling

Employee engagement is in part

This could be a question of

Employee engagement

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CBI earlier this year, argues that both employee absence and workers turning up despite being ill are major costs for businesses. The CBI makes a number of suggestions, from managing the employee’s return to the office after their absence to encouraging regular health checks. It also stresses the need to focus on health as the workforce begins to get older.

Getting away from it all The sun is shining and holiday season is here. But what effect does that have on businesses?

cost of which travel firm Sunshine estimates to be £478.80 per employee. Holiday distraction may be a genuine hindrance to companies and employees. But can it be prevented?

By Matt Smith, web editor

u Editor’s pick The Chief Happiness Officer Blog positivesharing.com Woohoo Inc founder and expert on happiness in the workplace Alexander Kjerulf has held workshops for companies including Microsoft, Lego, and IKEA. On The Chief Happiness Officer Blog he offers his thoughts and advice on everything from encouraging employee suggestions to injecting a little fun into the working day.

workplace MOJO

blog.tnsemployeeinsights.com

Why are your employees lying to you? Why should you pay attention to your workers’ negative comments? What are the best ways to encourage creativity? Find the answers to these questions and more at workplace MOJO, which is run by Matt Monge, chief culture and marketing officer at Mazuma Credit Union.

This employee engagement blog from TNS provides stories, opinions, and other articles to help you get the best from your employees. Recent posts include pointers on how to recognise workers’ achievements, how to encourage teamwork, and how to tell how your employees are really feeling about working life.

It could be worse than vicious sunburn and a spot of jetlag,

Fistful of Talent

according to research arguing that

fistfuloftalent.com

“holiday fever” is costing firms nearly £500 per employee. A survey of 1,885 people in full-time employment who had been on holiday abroad in the last 12 months found that, on average, workers spend 38 hours planning, booking or reminiscing about their trip while in the office, the

TNS Employee Insights

themojocompany.com

iAppreciate (FREE – Android, iOS)

TalentTap (FREE subscription – Android)

Want to show appreciation for your workers? This app helps you to track information and prepare for award presentations.

This app serves as an internal social network at your business, using posts, photos, video, polls and more to boost engagement.

Fistful of Talent takes HR issues and presents them in a unique and engaging way. The blog gives examples of booth good and bad HR, so you can use a combination of the two to develop the best strategy to engage your employees both now and in the future, when new challenges emerge.

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Business World UK

London is the world’s “talent capital” when it comes to attracting employees, a report says. The Deloitte research claims that 1.5million people in London are employed across high-skill sectors, compared to 1.2million in New York and 784,000 in Los Angeles. The report puts this down to the growth of industries including digital media, legal services, publishing, accountancy and banking, but also warns that London may need to compensate for a possible decline in financial services employment.

China

Western companies should focus on “breaking the culture of silence” if they want to nurture Chinese employees, an advisory firm claims. In on online piece about business in China, the company argues that a relaxed environment needs to be created so Chinese employees are encouraged to share their thoughts. The piece, entitled “How China’s management style differs from the West”, reads: “Understanding Chinese culture and how to build relationships is key to

succeeding in China. If your business is already operating in China, breaking the culture of silence is important to ensure that your employees communicate and share their thoughts and ideas. “It is essential that management creates a relaxed environment to encourage them to be proactive.”

Canada

Two-thirds of Canadian workers would rate their employees highly for promoting a work-life balance, according to a recent survey. This year’s edition of the Kelly Global Workforce Index, an annual survey of employees, found that 66 per cent of the roughly 12,400 Canadians who took part would rate their employers highly for promoting a balance between the private and professional. Kristin Supancich, the vice president and general manager for Kelly Services Canada, said: “As employees’ lives become more complex and integrated, employers need to be looking for ways to create a balance for their talent pool. “We’ve found that most employees respond positively to this and will engage at a higher level if given certain flexibility to achieve better balance.”

Does a change in working patterns and new government legislation spell the end of the nine-to-five? Dave Baxter reports

COMING SOON...

We interview Nick D’Aloisio, the 18-year-old schoolboy entrepreneur who created Summly, which was sold to Yahoo for a reported $30million in 2013. Nick, listed as one of the world’s most influential teenagers in TIME Magazine, tells us about his work – and his hopes for the future.

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Business Reporter · July 2014

Employee engagement

Boundary shifts

ROM shifts at home to part-time hours and job-shares, flexible working has moved firmly onto the agenda. The standard nine-to-five may be on the out. More and more, firms are expected to be less rigid with working conditions if they want to keep employees happy and retain the best talent. A report published for Timewise, a recruitment specialist, found that around 70 per cent of the 1,161 full-time employees surveyed wanted the option of working flexibly at some point in the future, with 42 per cent wanting it “right now”. Attitudes may be changing among employees and this appears to be moving, in part, into law. At the end of June, the government extended the right to request flexible working to all employees, providing they meet certain basic criteria such as having been in their job for at least 26 weeks in a row. This right, which previously only applied to a limited group of people including parents with children under a certain age and some carers, gives the employee one request a year. The request must be considered, though firms have the right to reject it on business grounds. And although they warn there will be no “landslide” of sudden requests, some experts believe the change could encourage more people to review their working arrangements. Steve Williams, head of equality at the Advisory, Conciliation and Arbitration Service (ACAS), believes a more gradual transformation could occur in workplaces. “Over and above parents and carers, I’m not expecting a landslide of applications,” he says.

“Having said that, they could be famous last words. I don’t sense from any discussions we have been having that there was a pent-up demand for requests. But I think it will come in and happen, and there will be evolution rather than revolution.” Williams believes flexible working could help a number of different groups remain in employment for longer. “If we have an ageing population, the ability to work flexibly can help people stay in the workplace as they get older,” he says. “The older you get, the less resilient and strong you are. But being able to work flexibly can help you work longer if you want to. “More generally, we are living longer and we are having to stay in work longer. The government has raised the state pension age and people may not find state pensions adequate to stop work altogether.” Ines Wichert, a psychologist at the IBM Smarter Workforce Institute, says she would have to “wait and see” what effect the new right has. “I don’t think we will have lots of people rushing out – a lot of things have to be in place for the uptake of flexible working,” she says. “People need to feel comfortable if they work flexibly. I think the flexible working opportunities are fantastic, but organisations need to do more to communicate the benefits. I think there’s still a concern that if someone takes up flexible working, their career will suffer. We need positive role models.”

Wichert believes that the right to request flexible working could help with a cultural shift, but that senior managers need to be seen using flexible arrangements and talking about their benefits. “I think it’s the idea of reverse mentoring,” she says. “You need to help with that cultural shift. I think flexible working is accepted as OK for working mothers, but I think we have a lot more work to do when it comes to flexible working for everyone. “We have the technology to make it possible for everyone, and if you work remotely you could be just as effective or even more so. The business world is so global now.” But others are not as positive about the legal changes. Mike Cherry, policy chairman at the Federation of Small Business, believes that the right to request flexible work is unnecessary, and could cause problems for SMEs. “I don’t know if it’s necessary to have this right to request, because small businesses are by nature flexible and good places to work,” he says. “I think the biggest problem for small business is that, with the statutory right to request, it does mean there’s an added layer of complexity and an area of reporting and recording. It’s quite frightening if an employee can’t ask when they have an issue, whether that’s a problem or a doctor’s appointment.” Whether employees take up or receive flexible working arrangements is yet to be seen. But at least they can now ask for it.

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Make it a story, not a lecture

Engaging with talent through recruitment partnerships

Tell it well and you win people over

The future

Theodore Roosevelt The most important single ingredient in the formula of success is knowing how to get along with people

Employee engagement Industry view

Business Zone

“

he main employee publication, paper or online, is a key vehicle for making staff feel valued and committed to the business. Engaged, as the current buzzword has it. But some firms do this in a clumsy and ineffective manner. Don’t give your readers a lecture – tell them a story. Let me give you an example. We worked once for a firm that made biscuits. They were introducing a new, integrated computer system called Omega. It did everything – wages, stock control, forecasts, the lot. It took a year to get up and running, and we reported monthly progress in a chatty little publication. Eventually the system went live, and we published the final issue of the magazine with an article by the operations director saying how well everything had gone. He drafted out his article. It was a page of dense text with a picture of him in a suit looking stern and noble. The headline said: “System Omega – a great success”. I know what readers would have thought. “He would say that, wouldn’t he?” We had a better idea. We found the warehouse boss who was enthusiastic about System Omega. He told us: “Before Omega, I had a difficult life. Production would ring me asking for two tons of oats which I didn’t have. I was in the doghouse. I would source the oats, and

they would be delivered at knocking-off time, so my chaps had to stay after hours to unload. Doghouse again. “When I got home my wife would glare at me and tell me my supper was cold. Doghouse! Now System Omega automatically re-orders. Result: Production love me, the chaps think I’m marvellous, and I get home in time to play in the garden with the kids before supper. Brilliant!” A half-page picture showed him with his children in his well-tended garden. The strapline said: “Warehouse Walter’s verdict on System Omega”

The main headline, overlaid on the picture, said: “It’s blooming marvellous!” Readers thought: “Walter is one of us. If he says Omega is marvellous, it must be.” Nobody had lectured readers. We had told them a story. As a result, they liked the new system and were proud to work for the firm that had introduced it to make their lives better. That’s storytelling. That’s engagement. 020 7268 3234 bob@pressgang.eu

In focus: Measuring what’s important – to you and your staff

very year more than three million employees around the world complete our Trust Index© survey which measures trust in their organisation. Why trust? Our research over the last 25 years has shown that trust, or integrity, is a key driver of engagement. And today’s research shows a strong link between

engagement and business performance. Indeed, one of our clients reports that for every point increase in their Trust Index© scores they achieve nearly $3million in operating profit.

Measuring values Our research also shows that organisational values create high-trust cultures. Most successful businesses credit their success to their values which drive who they are, what they do and how they do it.

Auditing your people practices As well as surveying employees we also audit organisations’ HR and management policies and practices – the things that build and maintain high-trust cultures and engaged employees. So we can tell you what’s distinctive about your people practices and how they compare with others.

External recognition as an employer of choice We also offer the chance to be recognised as a Best Workplace. This is highly

sought after for employer branding and helps attract and retain the best talent. As we can survey in nearly 50 countries, you could also be recognised as a European or even Global Best Workplace. Organisations increasingly recognise the strategic value of sustaining a high-trust culture and the external recognition that validates their strength as a business and employer. We can help yours too. info@greatplacetowork. co.uk www.greatplacetowork. co.uk

ith recent government data boasting the healthiest employment figures in years, the war for talent is very much back at the top of the corporate agenda. With HR departments focusing their efforts on engaging existing employees to aid retention, it must not be forgotten that the even greater challenge of attracting new talent is to do with finding innovative ways of engaging potential employees. In highly competitive markets there is no better ally to have than a recruitment consultancy. Despite the growth of e-sourcing tools and platforms such as LinkedIn, talent is not an online commodity. There are a number of intangibles in any recruitment process, as candidates can be unpredictable. A good recruitment consultant can help engage potential talent very early on in the process. They also help their clients by qualifying what it is they need, and benchmarking the role and the required skills against other roles in the market to ensure that it is viable and attractive to potential talent. Additionally, because candidates often want an independent view of the market, having a professional recruitment partner means that you will also have an excellent ambassador for your brand. Recruiters can also advise employers on what the real motivations and aspirations of their potential employees are, and it is rarely money. Motivating factors include flexible hours, work/life balance, increased career development opportunities and more access to training. In this new era of recovery, employers should remember that they are selling their opportunity as much as buying talent. Knowing what drives a candidate before the interview stage could make the difference between successful engagement and a negative disconnect. www.apsco.org/why

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The debate How can engagement impact the bottom line?

David MacLeod OBE

Frank Horwitz

Sheila Parry

Simon Bloom

Frazer Rendell

Chair, exec development committee, Association of Business Schools

Managing director theblueballroom

Strategic alliances & sales director Webtrends

Director of employee engagement E-Trinity Consultancy

We have known for some time that the UK has an engagement deficit, with as few as a third of workers saying they are engaged at work. Over recent times there has been a focus on how engagement links to business performance and how it could help organisations through the tough economic times. We now face a new challenge; engagement is no longer just about driving income, profit, productivity, customer satisfaction and innovation. As the recovery continues we must look to engagement as a way of attracting, retaining, nurturing and developing our people. Retaining our most talented people enables businesses to not only keep performing now but to be ready for the future challenges of an increasingly changeable climate. They will be the people who drive our businesses forward in the future, they will be the people who ensure that organisations grow and deliver profit. They are the people that organisations must engage now, for the bottom line of the future.

Employee wellbeing, job and organisational commitment are all improved if people are involved in decisions which directly affect them and if they have a voice in how their work is planned, organised and performed. Workplace flexibility is also linked, and if properly implemented to the mutual advantage of the individual and organisation, performance is enhanced. Recent research highlights the important challenge of enhancing employee motivation and retention with resultant performance improvement through engagement. Research shows that engagement has positive effects on key aspects of performance such as customer service, organisational commitment, reduced staff turnover and absenteeism. It also confirms that satisfied employees are more likely to create satisfied customers. Studies also show a strong link between culture with high employee engagement and voice, and higher productivity and profitability in comparison to competitors.

Countless studies have shown that disengaged employees cost companies – and the economy – millions. Employees are often described as a company’s biggest asset but, unlike depreciating assets, engaged employees appreciate, so companies need to invest in them. If they are engaged – committed, motivated, and able to act – they will be more in tune with objectives and likely to contribute to success.

Engagement strategies must be integral to company culture to truly impact the bottom line.

It would be a poor employer who didn’t want their workforce to feel empowered to play their part in the business. Engagement now needs more than a “feel-good” culture. Numerous stats show the impact of engaged employees on a business’s bottom line. According to Gartner, organisations with high levels of engagement outperform the earnings of their peers by 57 per cent. Gallup found that businesses in the top-quartile in employee engagement significantly outperform bottom-quartile units in profitability, productivity and customer ratings. Engaged companies also see lower employee turnover and absenteeism. But how do you achieve this enlightened state of engagement? One of the most effective ways is to ensure your employees can communicate and collaborate easily through an internal platform. The use of analytics to measure and understand utilisation of these systems will enable companies to drive greater efficiency and innovation, delivering better results.

The greatest return on employee engagement will be seen by firms where it has become part of the organisation’s culture. The impact of engagement on finances is twofold; cost reduction and revenue growth. To fully achieve this, we promote the use of a balance scorecard that includes employee turnover, absenteeism, customer satisfaction and other related areas. This helps inform both short-term decisions and longer-term strategy when viewed alongside KPIs of revenue and costs. Is there a financial impact to doing nothing? With research showing that around 20 per cent of employees are looking to change employers this year, this will be costly for recruitment and productivity. According to research, pay awards are not the main driver for employees, with development opportunities and fulfilment more prized. In future, engaging employees will be a minimum requirement to stop the bottom line shrinking and to retain your talent.

info@engageforsuccess.org

associationofbusinessschools.org

www.theblueballroom.com

www.webtrends.com

ExpertInsight

Co-chair Engage for Success

Key engagement outcomes: • Increased productivity and lower absenteeism: engaged employees have the energy to drive success • Increased customer value and service performance: service protects reputation and correlates to higher net promoter scores • Higher staff retention and loyalty: employees with purpose and direction have a stronger commitment to the company

020 3131 0062 www.e-trinityconsultancy.com

Advanced reporting techniques that make all the difference

mployees who are engaged are proven to be more innovative, efficient and productive – resulting in a happier workforce and a more successful business. According to Gartner, organisations with high levels of employee engagement outperform the earnings of their peers by 57 per cent. When it comes to driving employee engagement, a comprehensive internal communications platform is worth its weight in gold. Ensuring all employees have access to the right information is critical, whether that’s the most current HR information, important company announcements or compliance with legal guidelines. The solution preferred by most large organisations is Microsoft SharePoint, which offers the ability to do all of this (and much more), but the costs to customise and deploy a bespoke SharePoint implementation to meet a business’s specific needs can be high. While

SharePoint offers some basic analytic tools, without advanced reporting inaccurate interpretation is common. For example, the perception may be “Employees love our intranet, look at the number of page views per visit!” The reality may be that employees can’t find what they’re looking for. Or “On average, 90 per cent of our employees visit our site every month”, when actually they only visit it once a month to check their pay. Webtrends Analytics for SharePoint allows for a more accurate and deep-dive measurement of user adoption and engagement. It allows organisations to see where information is being consumed and by who, even down to how long an employee has watched a corporate video. It enables businesses to measure how their employees collaborate, share and communicate across web, email, mobile

and social channels. Improving employee engagement is definitely a goal within reach, but unless you encourage adoption and monitor the use of internal systems, you can only guess as to how effective you are. The new book Prove It!, by Loren Johnson and Mark Miller, is a one-stop guide to getting the most of SharePoint through measurement and Webtrends Analytics. It’s available at http://bit.ly/SPproveit +44 (0)1784 415 700 www.webtrends.com