Management In practice Measurement Strategy !e missing link As seen on screen How did you score? Temp tactics How managing your employees A look at how companies such as Sky We explain why surveys are only a means The importance of keeping short-term properly boosts productivity | Page 5 are engaging their sta! | Page 8 to an end | Page 11 workers on side | Page 13

July 2012 | business-reporter.co.uk EMPLOYEE ENGAGEMENT

!e pursuit of happiness As Unilever’s head of employee insight, how does this man keep 140,000 workers satis!ed? Page 11

DISTRIBUTED WITHIN THE SUNDAY TELEGRAPH, PRODUCED AND PUBLISHED BY LYONSDOWN WHICH TAKES SOLE RESPONSIBILITY FOR THE CONTENTS Business Reporter · July 2012 AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH 2 Industry view Find us online: business-reporter.co.uk Follow us on twitter: @biznessreporter Like us: facebook.com/business-reporter Find us online: business-reporter.co.uk Growing momentum Publisher Project Manager Bradley Scheffer Tom Turnbull [email protected] [email protected] !e economic downturn may prove to be the catalyst Editor For more information on any for organisations "nally realising they cannot a#ord to Nick Martindale of our supplements please [email protected] contact us: ignore employee engagement as a business tool Telephone Production Editor 020 8349 4363 Amy Dickson Email [email protected] For years “employee engagement” was one in this supplement outline how this people who can make or break [email protected] of those phrases bandied around by HR, to has already helped to turn rhetoric such initiatives. Our feature Sub-Editor which the rest of the business felt obliged into reality at many organisations. on page 8 looks at the efforts Juliet Conway to pay lip service but would essentially There are many and varied some companies are [email protected] ignore. means of engaging employees making, while the cover Production Assistant The downturn, double-dip recession, – flexible working, effective use article explores Unilever’s Fleur Hollett depression – call it what you will – has of benefits and building a brand approach to measuring and [email protected] changed all that, however. With companies with which workers will identify improving engagement on struggling to survive, having workers and empathise are all important a global level. performing at less than 100 per cent is no aspects – but the message that No one is seriously longer an option, while job insecurity and comes through time and again suggesting that the battle to Contributors the dearth of other opportunities out there is that line managers are the create conditions in which Nick Martindale is a freelance Stephanie Sparrow has written about have made stagnating employees a real employees could reasonably journalist and editor who writes HR and business topics for more danger for many. be expected to thrive has regularly on a wide range of than two decades, both for specialist The business case for engaging been won. topics, including HR, recruitment magazines and national newspapers. employees is now undeniable; surveys For years “employee But there is a growing and the workplace, for national and consistently show those companies with feeling that businesses have business media. Virginia Matthews is a freelance engagement” was one journalist who writes on a wide higher levels of engagement are more finally made the connection Lucie Carrington is a freelance variety of HR, business, education productive, and also benefit from lower of those phrases between engaged staff and journalist specialising in education and consumer topics for the national staff turnover and absence rates. productivity, and a motivated and employment. She has been and specialist press. Suddenly, then, employee engagement bandied around by workforce and the bottom line. published in several national is all the rage. Last year David Cameron HR, to which the rest That may yet prove to be our newspapers and a wide range of Stephen Overell is a journalist, proclaimed it was a core tenet of the ticket to better economic times. commentator and consultant on specialist publications. government’s plans for both economic work and labour market affairs, and of the business felt Steve Hemsley is a business author of Inwardness: The Rise of growth and employee wellbeing, and obliged to pay lip Nick Martindale journalist specialising in marketing Meaningful Work and Losing Control subsequently launched the Engage for Editor and HR, and is editor of the REC’s Again? Power and the Quality of Success Task Force. It is due to come to service but would magazine Recruitment Matters. Working Life. fruition this autumn, and the article by co-chairs David MacLeod and Nita Clarke essentially ignore

Employee Surveys

telegraph-survey-hive.indd 1 6/28/2012 1:21:54 PM AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH Business Reporter · July 2012 Find us online: business-reporter.co.uk Follow us on twitter: @biznessreporter Like us: facebook.com/business-reporter Find us online: business-reporter.co.uk Employee engagement 3 In figures Contents World in his hands page 11

Figure it out 5 Don’t get bogged down by data

Elizabeth Ramirez Jump into action 8 Stephen Overell on motivating employees of leaving their work; almost a quitting their current role for quarter (23 per cent) are unsure another that offered greater In vague 9 In brief Unsure how to engage sta!? Give your tactics a makeover whether to stay or go, a report flexibility around working hours by Mercer claims. The biggest and practices, a study by BT and Sense in numbers 11 motivator for UK staff is pay, the the Employers Network for Know what you’re measuring, warns Stephanie Sparrow study found, with 61 per cent Equality and Inclusion claims. Room for improvement saying this motivated them. Greater support from employers The big debate 13 Staff working in the retail and would involve more flexible Experts go head-to-head on proposed legislation utilities sector are likely to be Blind loyalty hours, cited by 49 per cent, the least engaged in the UK, a More than one in three financial assistance with Brand view 13 study by the Institute of companies (36 per cent) has childcare (38 per cent) and more Steve Hemsley asks how we can inspire short-term workers Customer Service suggests. The hired new starters without understanding around how research by the Chartered findings were based on feedback enabling them to meet their line parental responsibilities can Society of Physiotherapy. The from customers who rated staff manager. A poll by video impact on work (25 per cent). body found staff spend two With thanks to the following organisations: for their willingness to help and interview firm Cammio.me hours 18 minutes working on found this is a common Public sector struggling smartphones and other devices, to hire occurrence for 12 per cent of on top of an average of six hours firms and 11 per cent said they Employers in the public sector 22 minutes in the workplace. did not have enough time to are finding it hard to attract and interview all the candidates they retain staff as the government’s Clocking o! would like to. cutbacks programme takes Employers are more relaxed hold. Research from the CIPD about start times in the NHS should learn from John (Chartered Institute for workplace, knowing many will Lewis Personnel and Development) work while travelling to the The NHS needs to learn from and recruitment group Hays office, according to a study by the John Lewis model of fou nd t he nu mb e r of online backup firm Mozy. The how bored they seemed. Those engaging employees by creating organisations in the sector survey found 75 per cent of working in banks were seen as the conditions in which staff can saying they had difficulty filling managers don’t mind people most engaged. be proud to work for the roles increased to 82 per cent in coming in late. But this has not organisation, according to 2012 from 66 per cent in 2011. filtered through to employees; Global engagement is rising former John Lewis chairman almost 50 per cent think their Despite the current economic Sir Stuart Hampson. Speaking A tale of two species boss values punctuality highly. conditions, staff engagement at the NHS Confederation Men and women have different around the world is on the up, conference in June, he urged leadership strengths and Employee ownership pledge according to Aon Hewitt’s global managers to give staff more organisations need to find a The government has pledged to employee engagement survey. responsibility and autonomy to balance of both if they are to be create an independent institute The report found 58 per cent of develop greater job satisfaction. successful, a study by Talent for employee ownership, employees felt they were Innovations suggests. The following recommendations engaged in 2011, compared to Firms risk losing fathers research claims men are more made by the Nuttall Review. It 56 per cent the previous year, Almost one in two fathers (46 strategic and have more of a also intends to invite submissions with particular improvement per cent) would consider personal impact on others, while from organisations with in the areas of leadership at women tend to be better established models on how to business unit level, creating a organised and demonstrate a make the concept work in positive work environment and greater degree of empathy and practice. The government will seeing relationships with respect for others. publish a formal response to the customers as rewarding. review, which highlighted a lack Beyond the call of duty of awareness and resources – as One in 3 sta! wants to quit The average worker puts in more well as regulatory concerns – as Over a third (36 per cent) of UK than two hours’ work when they barriers to employee ownership, t: 0800 294 97 87 e: employees are seriously thinking leave the office, according to in the Autumn. Business Reporter · July 2012 AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH 4 Industry view Find us online: business-reporter.co.uk Follow us on twitter: @biznessreporter Like us: facebook.com/business-reporter Find us online: business-reporter.co.uk LinkedOut - the art of social engagement

Organisations need to embrace the rise of social going beyond merely ‘jazzing up’ high-tech and way beyond their reach. internal publications, they are What’s needed is a sea change in the collaboration or risk being left behind struggling to be implemented in perception of social media, and, business organisations. therefore, social business tools. There are now powerful systems Of course, there are other excuses. e’re all aware of the influx of that integrate social media Fear of losing control of the workforce, developments in the way we functionalities into business unmanageable amounts of feedback, Wcommunicate, connect and collaboration tools that blow the not having all the answers, share information over the web. old-style company intranet right out of relinquishing power and no longer Geographical distance is fast the water, but the uptake is minimal. being seen as an authority figure… becoming irrelevant. Facebook, Yet, without these tools in place, many These are all rational concerns, but Twitter, LinkedIn, smartphone, companies will struggle to engage adapting to a substantial change is not broadband and 3G are terms that we’re with employees and colleagues will as grim a prospect as leaders might all familiar with, but just ten years ago struggle to communicate with each think. Like any change, the fears and they didn’t exist. Now, you can take a other – whether they’re in the next concerns over it are often blown out of photo, upload it to Facebook and your room or on the next continent. proportion, more due to ignorance friend in Australia can comment on it than fact. in seconds. You can ask your Twitter Leaders need to know what followers a question (‘crowdsourcing’) they’re doing Change is inevitable and have an answer in minutes. Sadly it’s the leadership of these In reality, it’s not a case of ‘if’, but If this is the case outside of work, organisations – and their fear of ‘when’ leaders succumb to the array of surely it must be the same in the o"ce? introducing ‘Facebook for work’ benefits that a social business system Wrong. Even though developments – that’s to blame. The professional can bring to their organisation. in technology and social platforms are world is fast moving away from Workforces are now expecting to be moving at a tremendous pace and command and control structures and led di!erently, so unless leaders can becoming more open, transparent and develop their techniques and embrace collaborative. Leaders need to realise change, they shouldn’t be surprised Today’s leaders see this or risk being out of touch. A lot of when they’re left behind. social media as today’s leaders see social media as something their children do, glued to Nick Crawford is head of something their their phones far from the prying eyes collaboration and social children do, glued of their parents. This means they feel business at Engage excluded from this concept that’s [email protected] to their phones apparently terribly complicated, www.engagegroup.co.uk What are your people saying about you?

Creating a compelling employee brand is key for engagement and driving success

ore than half of employees today get Every organisation has an employer brand. promised.” culture. Virgin information about their organisation Whether or not it is a managed one, people Organisations advertises its brand Mfrom external media sources. Along will have an idea of what you are like to work with a strong as being built upon with the advances in online technologies and for, and what your products are like. This employer Richard Branson’s social networks, an organisation’s brand is no brand has long been known to a!ect customer image are five original philosophy longer as controllable as it once was. In this perceptions and return on investment. As times more and is well known for online age of ultra-connectivity the latest early as 2006 the Corporate Leadership Board likely to have breaking the mould indiscretions of employers are there for all to quoted that e!ective brand management engaged sta! and being unique and see in near real time on Twitter, Facebook, and could bring about a 20 per cent increase in than those with a exciting. Again this blogs in addition to the usual media outlets available talent and the ability to attract weak employer external brand runs – we have all heard of the banks’ recent candidates for significantly lower image. These engaged through all aspects of the rate-rigging and the phone hacking scandals. sta! are more than four workplace. Employees are These indiscretions and lapses in business times as likely to think their encouraged to challenge the status quo process and principle have the capacity to Companies with a strong organisation’s customer image is ahead of the and contribute their unique individual a!ect not just the markets and public employer image are five competition. Their positive attitude perspectives. perception, but also employees’ perceptions. strengthens the brand image internally and So what does this mean for firms wanting The web provides the perfect environment times more likely to have externally, and reinforces relationships to keep ahead? Employees reinforce the for sharing experiences of current or previous engaged sta! between the firm and its customers. external image through their experience of the employers and it is fairly easy to find In the same way as your customers, internal brand, through customer contact or comments about an employer’s culture, employees will evaluate you in terms of their online presence. Organisations therefore management and levels of pay. It only takes a delivering on what you promise. As such, any need to identify and deliver an employee few negative stories for people to form their compensation. Our recent work shows that brand strategy has to be an honest reflection of experience that is consistent with their own impression, regardless of how accurate brand is also key to employee engagement the organisation. At Google, where innovation promise to employees – after all, they are your or typical those stories or experiences may and retention. and creativity are critical aspects of their brand ambassadors. actually be. Never have there been as many Denise Fairhurst, head of employee image, the work environment is well known channels for bringing the brand into the research at Ipsos MORI, says: “Not surprisingly for its fun and unusual workplace designs. Alex Jansen Birch is a senior consultant public arena. employees want to stay with companies who Employees can use 20 per cent of their time to with Ipsos MORI’s Employee Research team Employer brand can essentially be have a strong brand and are sought after places work on a project that is of particular interest [email protected] described as “what it is like to work here”. to work, but also deliver on what they have to them, further fostering the entrepreneurial www.ipsos-mori.com AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH Business Reporter · July 2012 Find us online: business-reporter.co.uk Follow us on twitter: @biznessreporter Like us: facebook.com/business-reporter Find us online: business-reporter.co.uk Employee engagement 5 !e case for engagement Businesses are slowly coming to realise there is a direct link between engaged employees and productivity, but many still have much to do

organisations have contributed over By David MacLeod and Nita Clarke, £1 million in time, expertise and co-chairs of the government’s Engage resources, bringing together examples for Success Task Force of good practice and helpful tools and techniques. THE NEED FOR real cultural change Members of the Task Force have in Britain’s workplaces is more pressing also spearheaded work into key than ever. Figures released in June challenges: how do you maintain suggest the long-standing productivity engagement when taking difficult gap between the UK and other decisions such as making redundancies; developed economies remains how should higher levels of engagement stubbornly high. Of course, there are be harnessed to enable higher levels many factors involved but more of innovation; what are the barriers businesses now understand to organisations adopting that individual performance engagement approaches? by employees – a key The fruits of all this work Command and control: the 1950s and 1960s had a di!erent style of management compared with today determinant of productivity will be launched this – is dependent on their autumn in a major Engaged organisations have at their citizens that will determine the The world of work is unrecognisable engagement levels. free-to-use website, heart the belief that the people who effectiveness of your business. from that of 10 years ago; never At its most generous accompanied by the rollout work for them are the difference that So set yourself t he mind the 1950s and 1960s estimate, though, only around of a national practitioners’ makes the difference. engagement challenge: do when the predominant a third of UK employees are Nita Clarke: network, with meetings After all, you can standardise you have a compelling story management style of really engaged with their improve quality around the country. processes – IT and so on – but it’s about your organisation, command and control organisations. Back in 2008, of relationships As Dame Carol Black – how the people on the frontline interact its aims and values, with came into its own. Now 75 the Department for Business the leading expert on with customers, patients and which the people who work per cent of work is estimated that the total cost to the UK workplace health – told us, the best there can identify? discretionary, deference to economy of this disengagement could way of improving people’s health and Do your leaders and leaders is long gone and trust be as high as £60 billion. That figure wellbeing at work is to improve the Engaged organisations managers have the people David MacLeod: levels are at an all-time low. will almost certainly have increased quality of the relationship between skills they need to be social media is Social media, too, has since then. staff and line managers. Organisations have at their heart the effective? Are you really transformational transformed how employees We have been privileged over the are increasingly counting the cost of belief that the people listening to your employees, communicate with each past 15 months to co-chair the Task absenteeism and labour turnover – and learning from them other and voice their opinions. Force; now badged as Engage For even in the downturn – and much of who work for them are how to carry out your business better? Engaging with them is the only way Success, following the title of the report this is down to poor people practices, the di"erence that Does your organisation have integrity, to secure the levels of performance we wrote in 2008. Over 1,000 particularly the impact of ineffective where the values on the wall are and productivity organisations require, individuals from hundreds of frontline managers. makes the di"erence reflected in day-to-day behaviours? and UK plc needs to grow and prosper.

Numbers game Achieving buy-in from senior executives is vital for engagement. But is there a risk of too much information?

measures of the relationships In the view of RBS, there are parents of an employee to By Stephen Overell between engaged employees, five key metrics: business express recognition of their profitability, effective leaders performance (income, sales and work. This was found to be very THE CLICHÉ ABOUT the c-suite and what customers want. It customer satisfaction); employee highly prized, but it wouldn’t is that they are numbers people. began doing so 11 years ago; opinion survey data, carried out work so well in the UK. So the conclusion from plenty long before the engagement across 43 countries in 17 But there are HR directors of HR specialists hoping to win bandwagon began to roll. languages; HR measures, such who believe the measurement a serious hearing from “Boards absolutely value data as absence and turnover; data vogue may have gone too far, to leadership about investment in and evidence, but that is not the on leaders, such as tenure and the point of being disengaging. employee engagement is to let point of doing the measurement,” performance ratings; and Kirstie Loveridge, vice president statistics do the talking. says Elaine Arden, group human demographic information. for HR for AEG Europe, which One school of thought is that resources director. “You need owns the O2 arena, scrapped to arrive at strategic insights, analysis to get under the skin of Figure it out Don’t let your board pitch drown in a sea of numbers the firm’s £15,000 engagement data needs to be sophisticated. what the results are saying and The bank finds sales in branches survey earlier this year because to have a dialogue about them, and contact centres scoring in It is perhaps misleading to can sometimes be particular it was “over-complicated”. Dig a little deeper but ultimately the reason why the top 10 per cent of engagement see HR’s pitch to boards as being stories that crystallise the With the support of her board, The Royal Bank of Scotland we do it is to make informed measures are double that in the solely a question of figures. interest. She recalls board she is concentrating on making (RBS) is today famous for being changes across the organisation. bottom 10 per cent, while there Caroline Sharley, head of intrigue about high engagement changes to welfare, training and rescued by the taxpayer. But in The really pivotal role that is a 5 per cent difference in employer brand and culture at scores from China. On seeking working environments. “We the world of engagement emerges time and again is that customer service scores. Absence Standard Chartered, says the further explanation, one of the need to engage the enthusiasm, measurement, it is also famous of the individual line manager rates are 2 per cent worse in the bank’s board already recognises practices that lay behind the not get bogged down in the for pioneering advanced in inspiring and leading people.” least engaged units. the value of engagement. Yet it results was that of writing to the bureaucracy,” she warns. Business Reporter · July 2012 AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH 6 Industry view Find us online: business-reporter.co.uk Follow us on twitter: @biznessreporter Like us: facebook.com/business-reporter Find us online: business-reporter.co.uk

Working to a shared goal “Everyone can learn a new skill but it is knowing that my colleagues and manager believe in me that drives me to do better,” says Aouras Kathem an apprentice broadband engineer with BT in London. Kathem, 32, is in the second year of a three-year apprenticeship and has been working in the field for 10 months. “The experience, knowledge and confidence I’ve gained in that period is equal to six or seven years with one of my previous employers. The opportunities I have been given have been second to none.” But the biggest pull for Kathem is the contribution he is making not just to BT but to society at large. “I’m helping people get connected every day,” he says. “Yesterday I volunteered to go to High Wycombe to put in phone lines for Hearing Dogs for Deaf People centre where they train dogs to act as ears for their owners. I’ve also volunteered to work with ex-o!enders to help them get online so they can apply for jobs. “It’s something tangible that BT enables me to do for others.” Working in a culture that encourages people to feel they can make a di!erence has been a huge motivator for Kathem. “It’s the defining factor that sets BT Beyond the bottom line apart from other organisations I’ve worked for.” Managers should show employees they care by hearing and valuing It can’t all be hard work, and to add an their ideas – an approach championed by one telecoms giant element of fun – as well as embed its ideals of engagement – BT runs a range of initiatives such as the Best Boss in BT competition s a senior manager in BT I have to and care about what they think.” tougher, senior leaders renewed their which celebrates the best managers in the deliver results but I can only do this if This style of management is a key priority emphasis on engagement, realising this business; or the Challenge Cup where teams “A everyone in my team knows where in BT’s employee engagement approach as all would help the company to get through some compete against each other to come up with they fit in,” says Gary Stuart, general manager managers are expected to hold regular very challenging business conditions. great ideas to improve customer service. for outside broadcast. engagement meetings with their teams where The logic is simple: engaged people However, great jobs, excellent In his previous job, Stuart saved the they talk about the company’s goals, listen to perform better and this makes for happier management and inspiring leadership can business several millions of pounds he how people are feeling about their work and customers and improved business results. only take employee engagement so far. BT argues, simply by listening to the people who discuss ways that the team can do an even BT’s own research shows, for example, that people also need to feel that extra connection worked for him. “By talking to the guys on the better job, explains head of employee their engaged teams are much more to what the business stands for, it’s aims and frontline, we came up with some fantastic engagement at BT Sharon Darwent. “People productive than their less-engaged values. It’s not surprising therefore, that ideas that we would never have thought of want managers who care about them but who colleagues. BT sees employee engagement as a otherwise,” Stuart says. can also stretch and develop them,” she adds. Getting the basics right is core part of a sustainability agenda “People need to know that as managers, BT has always had a strong employee fundamental to engaging that is geared towards serving we value their knowledge and expertise; commitment but when the economy got employees, says Darwent. “We the community it works within make sure people have the tools and sells to. they need to do the job well.” This BT encourages sta! to get Delivering a gold-standard career means having clear objectives so involved in a range of voluntary they know what’s expected of them activities including helping out in There are no second chances when it Kelly Holmes. Monthly team calls and a and having the skills to do it as well Dunne: connect local schools, raising more than £1m comes to the Olympic Games. “It’s got to closed Twitter group help people share and the authority to make decisions. your talent for Sport Relief and, this summer, be 100 per cent right first time and ideas across the group while Olympic It also means giving people volunteering for the Olympics. On a everyone has to deliver their personal test events have created a huge best,” says Howard Dickel, client sense of pride and community opportunities to learn, develop and grow basic level these activities develop a broader partner, BT London 2012 delivery among the BT Squad. through training or special projects. sense of teamwork, bringing together people and legacy programmes. But there is a bigger Sound management is an important part across the business who might otherwise Ensuring more than 850 engagement question come of enabling this development but so too is never have met. But they do far more than members of the delivery team September: how to deal with solid teamwork – whether it’s collaboration that, argues chief sustainability o"cer Niall have been fully engaged in BT’s the inevitable enthusiasm for within teams or across teams. “Strong Dunne, because they show employees that 2012 vision for a flawless Games “what’s next?” when such an teamwork is essential for us, so we encourage they can make a di!erence – to the business, has been vital – and not as simple all-consuming project as the people to support each other, no matter what to the environment and to society. as it sounds. “We had to recruit Olympics comes to a close. The Dickel: deliver a part of the business they work in and to give “If you can bring together social purpose, some people two years before answer is Career Wise 2012, a personal best each other feedback,” Darwent says. environmental purpose and financial they joined the team and develop programme set up in January to their sense of commitment while they help BT people involved in the Olympics Senior leaders also have a major role to play purpose, you have an opportunity to engage were working flat out on other BT identify and prepare for their next BT in engaging BT’s 89,000 global workers. people in a way other organisations simply projects,” says Dickel. challenge. “Over two hundred people have Visibility is key, so the firm’s senior leaders run don’t,” Dunne says. “And only by connecting He has used a variety of tools to build been hard-wired into the Olympics for regular meetings, forums and road shows our people’s talent, energy and enthusiasm engagement including branding the team more than two years,” says Dickel “They with sta! across the country where they with a higher purpose beyond the bottom the BT Squad. In addition, Dickel has represent a huge amount of talent that has discuss business priorities and corporate line, can we get to be the agile organisation organised face-to-face events involving been developed through the Olympics and goals. “People need to feel confident that BT’s we need to be.” British athletes such as rower Debbie we’ll be helping them realise their career leaders have set the right direction for the Flood and double gold medallist Dame aspirations with BT.” business and are honest with them about the [email protected] progress we are making,” Darwent says. www.bt.com AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH Business Reporter · July 2012 Find us online: business-reporter.co.uk Follow us on twitter: @biznessreporter Like us: facebook.com/business-reporter Find us online: business-reporter.co.uk Industry view 7 Managing your talent Companies need to engage their workforce by using e!ective management – or face losing out to their competitors

The employee engagement revelation information to make the right decisions to Executive leaders and HR practitioners are support their business objectives. To provide more frequently recognising the importance this level of visibility, organisations are of an engaged workforce, its potential to drive integrating their HR processes and business performance and impact the bottom information into talent management systems. line. Engaged employees are highly motivated These systems encompass numerous ©2012 Avvio Design Associates Ltd and committed to the success of their strategic HR processes, enabling companies organisations and are willing to make an to e!ectively plan, hire, align, develop, reward, extra, discretionary e!ort. Academics, manage, and analyse a high-performing consultants, psychologists, and even financial workforce. The goals are straightforward Business at analysts have written much on the subject of – hire great people, ensure they are properly employee engagement during the past 15 trained, align their goals to corporate strategy, years. Most of their focus has been on what reward top performance, and provide timely drives engagement, with empirical research motivation to retain the best employees. face value identifying several factors. These factors Leading companies are developing talent range from the employee-manager management business cases focused on relationship, to a challenging work improving engagement. These business cases Technology is no substitute for real conversations environment, a company’s focus on typically encompass current processes, customers, outstanding performance business requirements, gap analyses, system/ – if you want to inspire your colleagues, you need recognition, and career development technology needs, and change management to connect personally opportunities. By understanding the most considerations. Furthermore, several core important factors that drive engagement, HR talent management processes directly impact leaders are able to develop e!ective employee engagement. As a part of their n order to keep pace with simply allows us to have City Link’s HR director, engagement programmes. A more business cases, companies should map these market demands, di!erent kinds of Scott Maynard, agrees: compelling outcome of engagement research standard talent management processes to Icompanies are conversations faster. “Technology should be seen shows that an engaged workforce impacts their most pressing engagement challenges. increasingly turning to “We run the risk of not as an enabler to business performance, and ultimately, This analysis facilitates deeper understanding technology to enable the having enough real communication change, but shareholder value. Put simply, companies business to communicate conversations anymore,” says nothing beats a manager with higher percentages of engaged 24/7. We’ve enabled our Gardner. “The ones we used sitting down with his sta! employees perform better than their industry employees to be super- to have around the water and having a regular peers. Indeed, researchers at the Chartered connected, but are we cooler or co!ee machine are catch-up. It’s still important Institute of Personnel and Development, communicating with the now happening either to listen.” Gallup, and Towers Watson have validated the right people in the right way virtually or not at all. At our “Today technology allows impact of employee engagement and HR best in order to be understood? regular Insiders events (our us to listen even more practices on business performance. Internally, we’re seeing a forum to discuss key industry e!ectively,” says Gardner. “We Equally interesting, financial analysts have marked change in the way trends), the dearth of can gather a huge amount of taken notice. A recent equities report focused employees are creating and face-to-face conversation information very quickly to on a large international bank, which cited that accessing their own was rated as a high priority analyse the state of the employee engagement scores were highly information in order to for discussion – the one issue nation, but we need to test it correlated with shareholder returns. Further, have a better understanding leaders need to consider now. by asking more pertinent the report highlighted that the engagement Companies must engage their talent of what’s happening in How well do we know our questions. We’re conducting score di!erence between the bank and its their business. teams anymore if we’re not more face-to-face research nearest competitor cost the bank of core requirements, and also helps with the “We’re working with our having those regular than before to ensure we’re approximately $26m (£16.7m) in additional provisioning and prioritisation of talent clients all the time to help conversations? not misinterpreting data. profits per year. As a result, the financial management software. drive adoption of new digital “We’re seeing an increase Having the ability to continue analyst downgraded the bank’s stock. Given Given the significant impact that employee communications tools that in demand for channel audits talking to people, actively and the mounting evidence, it should come as no engagement has on business performance are, quite simply, what from our clients. They’re regularly listening to what surprise that CEOs, CFOs, and senior HR and the bottom line, improving engagement employees have been waiting asking us to help reconnect they say and acting on it is o"cials are taking serious notice of employee has become a top priority for leading for – a collaboration that they their channels with their key to building trust in our engagement. Companies that fail to engage companies. The risks of ignoring it, putting it understand, find intuitive people – to build back in businesses. their talent face significant risks – including on the backburner, or not funding it and will embrace long-term,” some more opportunities for “Our aim must be to financial ones – relative to their competitors adequately, are simply too high. says Duncan Gardner, managers to listen, guide and promote a trusted set of that have established systematic engagement Companies that embrace employee managing director of brand inspire. More clients are integrated communication strategies. engagement – supported by a single, engagement agency, Avvio. saying they feel human channels, and as part of that integrated talent management software It’s what employees want, interaction has been stripped mix we strive to keep on Increasing demand for talent management platform – are reaping the rewards: better but it’s only part of what they back to the bare minimum. finding valuable In the 2012 PriceWaterhouseCoopers CEO financial performance, higher customer need – creating face-to-face “By asking the right opportunities for good old survey, 29 per cent of respondents were satisfaction, higher employee retention, and opportunities for managers questions and listening fashioned conversation, what unable to pursue a market opportunity due to more productive employees. to inspire their teams is to employees in friendly better way to help inspire talent constraints. This alarming trend has Combined, these benefits lead to still vital. focus group environments, trust in managers and senior created a sense of urgency among sustainable competitive advantage. Focus groups, team Avvio is helping clients find leaders. We cannot organisations to develop holistic talent meetings, manager briefings the right channel mix and underestimate its value.” management strategies. Leaders in all Malcolm Tinkler is the vice president of and roadshows are still a key communications methods business functions – including CxOs, HR international sales at SumTotal Systems part of good business, that don’t rely too heavily on www.avvio.co.uk practitioners, and line-of-business managers [email protected] whatever we are trying to digital communications to duncan.gardner@ – need accurate and accessible workforce www.sumtotalsystems.com unearth or share. Technology do it all.” avvio.co.uk Business Reporter · July 2012 AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH 8 Employee engagement Find us online: business-reporter.co.uk Follow us on twitter: @biznessreporter A meeting of minds From argument to engagement: how mediation in the workplace can save both time and money for your business

INDUSTRY VIEW nresolved workplace disputes are one of the biggest barriers to employee engagement. Conflicts and Udisputes reduce goodwill, drain resources, take up valuable time and cost eye-watering sums of money. Marks and Spencer, BT and Topshop have all incorporated mediation into their organisations with remarkable results. Mediation is a process of dispute resolution in which a neutral third party (the mediator) helps two or more parties find a mutually acceptable solution. Unlike traditional dispute resolution procedures – mediation is non-adversarial, it is confidential and it works. The power of mediation, argues Carole Russell, head of employee relations at BT Retail, is in o!ering people alternatives to formal processes. Putting an end to our formal grievance culture was the real selling point for our business. Since we introduced a mediation scheme at BT, explains Russell, our internal mediators have resolved over 500 cases and the business has benefited from savings in excess of £1m. From theory to reality The BT experience is compelling and the message is spreading. At Marks and Spencer, Philip Edwards, employee Interest in employee engagement has taken o# during the recession, but translating that relations manager, is completely behind this new approach. We use mediation as an early, informal resolution for issues into concrete action remains a challenge across the whole business of 75,000 employees.

Cost of conflict To understand the appeal, start with Paul Forrest, group employee relations manager for the retail By Stephen Overell measurement. Although it is variously defined, giant Arcadia Group is a TCM accredited mediator and a and therefore studies of it measure different passionate advocate of this new method, saying it has 90% AT FIRST GLANCE the concept of employee things, the build-up of evidence about the underpinned their commitments to employee engagement of employees claim engagement has not got much going for it. Its relationship between levels of employee and wellbeing. central premise is hardly a revelation: motivated, engagement and the performance of a business The costs of conflict run to an estimated annual £33 billion to be working beyond committed employees work harder and achieve unit, team or branch, has become difficult to to UK business according to the Confederation of British what is required more. It can mean anything and nothing at the ignore. “Unlike, say, job satisfaction, which can Industry, taking up 20 per cent of leadership-time and resulting same time. invite the response “well, so what?” engagement in 370 million days lost. However, the Chartered Institute for Is “engagement” a state of mind? A type of is consistently business-focused,” says Caroline Personnel and Development (CIPD) finds almost 60 per cent of behaviour? Is it what happens when you score a Sharley, head of employer brand and culture at companies using mediation see a significant reduction in hat-trick of liking your job, your boss and your Standard Chartered, which uses employee surveys formal grievances and a reduction of employment tribunal employer? So mysterious is it that some of the to redouble the attention it pays to the people claims by almost 50 per cent. A typical mediation costs subject’s boosters abandon words altogether and management skills of its line managers. approximately £1500 with over 90 per cent of cases achieving a appeal to the senses. Recognition, regular private conversations about successful outcome. Mediation works, says BT’s Carole Russell Employee engagement is rendered as “buzz”. how workers are doing and showing that the – everyone wins. “You sort of smell it”, says the MacLeod Review manager cares personally about employees most of Employee Engagement, a report for the UK affect engagement levels, adds Sharley. David Liddle is the founder and CEO of the TCM Group. He government. But some versions smell bad: “How is also president of the Professional Mediators’ Association. to get £10 work for £8 pay” was how the chief [email protected] executive of one of the UK’s biggest supermarkets www.thetcmgroup.com defined it. Above all, it can seem feebly remote from the desperate economic context. Everyone Yet it has unquestionably struck a chord. The wins with word, along with its related vocabulary of mediation “drivers” – the things that contribute to engagement (see box) – and “discretionary effort” (engagement’s Holy Grail), is losing its association with HR and becoming a preferred language for businesspeople to talk about work. Surveys and strategies multiply. “The message has a long way to travel,” says Professor John Purcell, associate fellow at Warwick Business School. “But in general it’s a positive take on how organisations should relate to staff, emphasising the vital role of the line manager and employees as the key actors in business.” Benefits can build brand loyalty AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH Business Reporter · July 2012 Like us: facebook.com/business-reporter Find us online: business-reporter.co.uk Employee engagement 9

The recession in general has coincided with an expansion of interest in engagement. After The magic ingredients all, the discretionary effort of staff is one potential source of low-cost business growth. Employee engagement is notoriously This is perhaps especially relevant in “people vague, but there is greater agreement businesses” which create value from specialist on what “drives” it than what it is. knowledge or from interactions with customers – banks, gyms, universities, councils, airlines According to the Conference Board, the and so on – but not exclusively so. Where American leadership organisation, which redundancies are in the air and staff are feeling conducted a meta-study of engagement, the magic ingredients which, in theory, ought to lead fearful, it makes sense for firms to concentrate to improved business results – if firms can on some of the factors that contribute to improve them – are: engagement, such as visible leadership, clarity Trust and integrity: The extent to which about expectations and good working employees feel management is concerned about relationships. their wellbeing, tell the truth and demonstrate For some firms, interest in engagement espoused behaviour derives directly from competing in a downturn. The nature of the job: The extent to which At insurance company Aviva, a drive to improve employees derive stimulation from their role, employee engagement began from investigations including levels of autonomy and participation into the frustrations of customers in 2008. Being in decision-making A link between company and individual goals: passed around between call centre agents with The extent to which employees feel they play a different specialisms and having to make part in contributing to an organisation’s goals repeated calls to change policies or sort out Career opportunities: The degree to which claims was a major irritation. Meanwhile, for employees feel they can advance in an staff, the duty to follow computerised scripts organisation meant they could not respond flexibly to queries. Employee development: Whether specific The finding led to a decision in 2009 to do e!orts are made to build skills away with scripts and call volume targets, and Pride: The level of self-esteem that employees train staff to deal with a wider variety of derive from being part of an organisation and enquiries. Rob Brown, a director, notes a series their willingness to recommend it to others Co-workers: the social connections people of consequences. The company’s measure of make “overall engagement” rose from 48 per cent in Relations with management: The degree to 2009 to 70 per cent in 2012. Staff turnover has which employees value the relationship they fallen from 38 per cent – not untypical in UK have with their manager Employees at Sky are visited by celebrities, such as Elle Macpherson, third from left call centres – to 17 per cent. One call centre in Norwich had just two per cent turnover, although However, while the appetite for measuring is may dismiss as “soft stuff” seriously. The firm it is hard to separate the effect of engagement 500,000 employees, engagement levels have high, the desire to make concrete changes that has developed a series of courses managers can and the depressed external labour market. held steady since 2007. But there are fluctuations enhance the experience of staff may be more do to build skills in these areas, on leading projects Significantly, “tens of millions” of pounds has underneath, notes Nick Tatchell, a director. limited. The complaint that not much happens and developing talent-leading teams. been saved by shorter calls and fewer repeat People’s pride in their employer is unchanged. in the wake of surveys is a bugbear of unions. At Sky, the focus on engaging staff revolves calls. Willingness to put in extra effort has in fact They are broadly supportive, however. “The use around offering staff a range of benefits, including How has the recession affected engagement gone up; 90 per cent claim to be “working beyond of data and evidence has forced companies to those that are not usually found in other levels? According to Towers Watson, with its what is required”, although concerns over back up vacuous statements about their companies. Deborah Baker, director for people, database of 200 firms with a combined total of excessive workload have risen, too. But measures employees,” says Sarah Veale, head of equality says these includes a dedicated staff TV channel, of satisfaction with career development and and employment rights at the TUC. Engagement which gives employees access to new programmes wellbeing have suffered: clear career paths are tends to be higher in unionised organisations, a week before they are shown to customers, and Not enough e"ort is being put open to 58 per cent in 2012, compared with 61 she suggests. bringing in celebrities from Sky programmes to per cent in 2008. Some of the impact may be deliberately under visit staff around the UK. “We know from employee into preparing for the upturn That is a worry for Tatchell. “Engagement is the radar. At Virgin Media, managers are feedback how much people value these exclusive ultimately about a sense of connection with an measured not just on their financial results but perks and this has direct business benefits, as when themes about reward, organisation,” he says. “Not enough effort is on their people management skills, drawing on well as creating home-grown ambassadors for career development and being put into preparing for the upturn when feedback gleaned from online surveys and reports. our brand which can boost motivation and build themes about reward, career development and This way, line managers learn to take what some loyalty towards the company,” she says. wellbeing will re-emerge wellbeing will re-emerge.” The holy trinity of engagement surveys Getting a CEO to agree to an engagement survey can be hard – especially when your business case isn’t good enough. So how can you build a convincing one?

INDUSTRY VIEW vital gap analysis between where the insight into action to improve across the business? business is now and where it needs performance – is the hardest part of The business case needs to cover irst, it needs to go beyond to be. It needs to clarify how links the process. Success requires three fundamentals: how the survey engagement (engagement is an between attitudinal /behavioural planning, persistence and will link to and drive key business Fenabler, not an end in itself) and data and key performance metrics reinforcement. Does the business performance metrics, how the focus on the links between will be identified. case provide a structured action senior team will be involved in the engagement and key performance If the survey is going to improve programme, and explain how process, and how insight will be metrics such as customer business performance, it needs the responsibility for action will be turned into action. satisfaction, sales and profitability. support of the senior team; the delegated to line managers, team The absence of any one could The survey needs to measure how business case needs to explain how leaders and their teams? Does it set a!ect the survey’s success, as well as well people’s attitudes and they will be involved in the process out how they will be provided with its chances of providing a return behaviours are aligned with the and in the framing of questions that the reports, guidance, tools and that justifies the investment. needs of the business, and the extent measure how attitudes and support they’ll need to be to which people-processes and behaviours impact operational successful? Is there a robust process Mark Allison is managing director procedures support business performance; and how they will take for posting action plans, evaluating of digital opinion objectives. It should act as a ownership of post-survey initiatives. their e!ectiveness, and identifying 020 8546 7243 capability audit which provides a Post-survey action – turning and sharing best business practice Allison: the three fundamentals www.digitalopinion.co.uk Business Reporter · July 2012 AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH 10 Industry view Find us online: business-reporter.co.uk Follow us on twitter: @biznessreporter Like us: facebook.com/business-reporter Find us online: business-reporter.co.uk Bridging the gap Businesses need to look closer at employee engagement surveys to ensure future success

ans of the TV quiz show Family in-depth review, such as the Culture and then do nothing are simply Fortunes will know that the Consultancy Engage Model, is exacerbating the rift between the Fformat consists of asking 100 carried out, business leaders are organisation and employees. people a series of questions with the merely stumbling around in Surveys are not tick box contestants having to guess the most the dark towards the exercises, nor are they an popular answers. While some of the inevitable business excuse for HR A survey without action widens the rift between managers and employees questions lead towards a fairly closed failure. departments to produce group of answers, the quiz However, Geraghty reports to justify their communication throughout the employee engagement, resulting in a occasionally springs surprises, such adds a note of caution in processes.” business. All of this may require an 32 per cent increase in revenue as the time when asked to “name an highlighting the fact that If conducting a survey initial re-evaluation of the company following an engagement review object which floats on water” the an engagement survey is and doing nothing is worse culture as well as determined and follow-up programme. answer given was “a co"n”. not the only step in Bishop: surveys than not acting in the first leadership from the top. Our survey said: the lesson to be This odd answer – the capacity of gauging how engaged aren’t tick boxes place, what options are While a few issues may need learnt is that employee engagement respondents to surprise and come up employees really are, with open to organisations once instant remedial action, others can is not just a tick box exercise and with the unexpected – is one key accurate HR data and key the survey results have been be managed as part of a longer-term should not just be an annual exercise. reason why businesses need to take performance indicator (KPI) results evaluated? Simply put, the employee change programme. The prime Whatever the results of our survey time and care when looking to playing an important role in building engagement review results will consideration though is that – however unexpected –, taking measure employee engagement, a true picture of the state of play. determine the course of action. employees are aware that action is visible action will benefit the says Jo Geraghty of Culture Many organisations simply complete Often a single issue may require a being taken in response to the organisation, its reputation and its Consultancy. Geraghty has seen too surveys and fellow Culture multifaceted solution. For example, engagement review and that they are profitability. Failing to measure many examples of businesses that Consultancy Director Derek Bishop the identification of a silo mentality included in that action. Simply employee engagement in the first have failed because managers have stresses: “Businesses which within the organisation may require asking for employee input acts as the place or, worse still, conducting a “assumed” rather than found out. undertake an engagement survey team leaders to be trained in first step towards raising review and doing nothing, is simply Increased sta! absence, high cross-department communications, engagement. Acting on that input hammering nail after nail in the employee turnover, falling employees to be coached in a greater improves levels of employee co"n until the business not only profitability or projects failing to Taking visible action understanding of their importance engagement with the associated fails to thrive, but sinks without trace. complete on time can all point to will benefit the and role within the overall benefits to the organisation. Culture falling levels of employee organisation, and action taken to Consultancy cites one of its clients 0845 003 5646 engagement. However, unless an organisation open up channels of recording a 4 per cent increase in www.cultureconsultancy.com Make or break a reputation Britain is facing low growth and worsening living standards, but Ben Page argues that the recession can actually boost employee engagement

Why should employers be concerned with the phenomenon is “the working poor”: in this Has the recession had an impact on employee level of engagement among their employees? context, bosses have to spend even more time engagement? Simply put: because they cannot succeed for encouraging people to focus on the things Yes – if anything it seems to be increasing it! long without it. Most leaders know this, but that really matter in their business, and Those who still have a job – and many sometimes get blown o! course by the other building and maintaining that shared set of organisations have had to cut headcount – are pressures they face. behaviours and higher purpose that everyone now more likely than before to say they feel As one management guru puts it: “The soft can buy into. Easy to say, harder to do! motivated to help their employer succeed, and stu! (ie people) is the hard stu!”. Measuring that they share the objectives of the company. employee motivation and engagement – and What is the relationship between the Although job security has tumbled, it in particular understanding what improves it reputation and public perception of an seems that employees are responding to – is fundamental to building a sustainable organisation and employee engagement tough times by an increased desire to help business with a performance culture that within that company? their organisation succeed. defaults to doing the “right thing”. It’s amazing For large organisations it’s huge – if you how weak the correlation is between employ thousands of people, what they say Consequently, should companies be happiness with pay, and organisational out there to your customers – whether when approaching employee engagement performance, but how strong it is with feeling socialising or at work – can make or break di!erently during these di"cult economic listened to, being valued, having widely your public reputation. times? Page: looking to the future shared goals. In some ways all of this is One of the challenges the NHS has for A key challenge for all of us is getting obvious, but the question we have to ask example, with 1.3 million sta! who are also colleagues to grasp that there was the world us need to understand that. It means ourselves as bosses is – why do we sometimes voters and tax payers, is that if you make them before 2008, and the world afterwards. employers making sure they are crystal clear forget it? feel unloved, they will rapidly transmit that to I know everyone is worried about the about the behaviours needed for success, but patients and the country as a whole. economy, but they have to realise this is not a also making sure managers and leaders are From your experience, what are the biggest temporary recession like the early 1980s or visible and “there” for people, as we make the challenges in engaging, motivating and 1990s – it is combined with rapid changes we have to make to adapt to a more retaining employees at the moment? “Employees are responding technological change, globalisation and a competitive and low growth environment. Strategic clarity and providing people with a long-term shift away from Britain and Europe, sense that there is a sunlit upland we can get to tough times by an which means that companies and individuals Ben Page is chief executive at Ipsos MORI to – Britain looks to be set for a decade of low increased desire to help have to behave di!erently than they did in Denise Fairhurst is head of employee growth, with pressure on living standards. “the long boom”. It means that being average research at Ipsos MORI Wages aren’t keeping up – and a new their organisation succeed” is not going to be enough anymore – and all of [email protected] AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH Business Reporter · July 2012 Find us online: business-reporter.co.uk Follow us on twitter: @biznessreporter Like us: facebook.com/business-reporter Find us online: business-reporter.co.uk Employee engagement 11 Global vision Running an employee engagement programme on a global basis is a logistic challenge for Unilever but one that Peter Wilde, global head of employee insight, believes is paying o#

of Scotland [now HBOS] and more. I By Lucie Carrington could see that I was helping to improve the working lives of thousands of UNILEVER IS A happy place to work, people.” says Peter Wilde, global head of Wilde was headhunted to work in employee insight. Every two years the the City where he spent six years at business surveys all 140,000 full-time UBS heading up the employee research staff across the globe to assess how division. During this time, he engaged they are. At the last count in implemented an employee research 2010 as many as 83 per cent said they programme that fed into recruitment were proud to work for the business. and talent management. “Engagement here is much higher “We were measuring levels of than I’ve seen in similar businesses engagement at each touch point with I’ve surveyed,” Wilde says. the employee, looking at where things Unilever has never been were going well and where they were comfortable discussing the details of going wrong,” he says. “The aim was Peter Wilde says Unilever’s engagement is much higher than in similar businesses he’s surveyed how it manages people and their to retain our best people and enable careers, preferring to keep the details UBS to recruit better and smarter.” for the survey, and helps and In addition to sending out the right under wraps, and tends to be a bit Wilde moved to Unilever last year encourages staff to complete the People buy into our messages, Wilde believes bosses at cagey with the press when it comes to to run a variety of employment questionnaire. Unilever are also good at listening to anything other than investment research projects for the corporate All managers from the most junior vision and values and noise coming back up the line, and stories. business. However, the core of his through to the board receive an acting on it. He points to a factory in But there is nothing cagey about work is the biannual global people engagement score. They use this data can see that what they do Ecuador making ice-cream and Wilde or the engagement message survey of all full-time employees. to have conversations with their people makes a di"erence spreads. he’s keen to promote. With 15 years’ and to develop an action plan for Employees suggested they could experience measuring employee Crossing continents further improving their engagement. do more to encourage local stores to attitudes across a range of industries, The survey is a static model looking A separate survey of Unilever’s 15,000 workforce, despite the size of the stock their products so the factory he is an out-and-out supporter of at four elements of engagement: job managers also takes place every other organisation and diversity of its brands. managers helped them set up a scheme capturing the data and doing satisfaction, pride, commitment and year, ensuring managers receive an “It’s about the extent to which our whereby individual workers “adopt” something about it. “The high level of advocacy for Unilever as a place to annual score. people buy into our vision and values a store. “This notion of local change employee engagement we experience work. These measures are aggregated It’s right that engagement is a part that drives employee engagement at and local action is really important to at Unilever is a competitive advantage,” to produce an engagement score. In of performance management for Unilever,” he says. “And it’s about line us,” Wilde says. Wilde says. 2010 this was 73 per cent, up from 65 Unilever managers, Wilde says. But of sight: people can see that what they But employee engagement isn’t per cent two years earlier. his experience in the financial sector do makes a difference.” something an employer can dip in and Where it all began The survey is a massive logistics makes him wary of using it as much In particular, he points to the out of, and years spent researching Wilde kicked off his career at market exercise. Up to 90 per cent of employees more than a tool to help develop sustainable living plan that CEO Paul employee attitudes has shown Wilde researcher Ipsos MORI – then just complete the survey with 60 per cent leadership skills. “I would be very Polman has been pushing. Its three that it is crucial Unilever doesn’t MORI – having graduated with a responding online. That leaves a cautious about linking it to pay in any top-line aims are to improve health become complacent. degree in psychology from Manchester massive 40 per cent paper responses. way,” he warns. and wellbeing, enhance livelihoods “Even if engagement levels are high, University. “I had a massive variety of “We have to deliver and collect surveys and reduce the firm’s environmental we can still look at what’s driving this clients and great exposure to them,” from across the globe,” Wilde says A great place to work impact. “Our people buy into it, level of engagement and assess what he says. “At 23, I was presenting to the A network of engagement Wilde is clear why the business has they believe it and they get excited can be done to sustain or improve it boards of the BBC, Coca-Cola, Bank champions pushes local responsibility been so successful at engaging a global about it,” he says. further,” he says.

The whole truth Surveys can be a useful starting point for wider engagement strategy. But it’s vital that these are set up properly

By Stephanie Sparrow “While we definitely criticisms of the organisation, encourage people to participate annual survey, branded encourage organisations to and so lower the score but do in it. Finally, it’s about internally as “Your Voice” for IF EMPLOYEE ENGAGEMENT measure engagement, it is not this because they care. communicating the results to the past six years among the makes good business sense, it enough for them to focus on Kerstin Alfes, a researcher as many people as possible and council’s 8,500 employees, who follows that it should also make increasing their scores without at the Kingston Employee acting upon it.” answer it anonymously. “We are sense to measure it. But can you considering what type of Engagement Consortium, says Lisa Sibley, employment measuring our line managers trust the results, and do you engagement is being measured,” the ultimate aim must be to engagement manager at Essex on how engaged their teams are really know what you are says Angela Baron, research create a culture rather than County Council, agrees that an and have developed a two-hour, measuring? adviser at the CIPD. rewarding the most engaged engagement survey is not the bite-size, online course on being Ignore these questions and “Engagement is multifaceted; What does your survey say? team. “We have found that high end in itself. Sibley has run an an effective, engaging line you could find that a seemingly it is made up of job satisfaction; commitment and involvement manager,” she says. strong engagement score is just willingness and performance; engagement, may respond from senior management Building society Nationwide masking troubles, according to communications; attitude; and positively to engagement beforehand, such as pre- Critical themes are has been doing regular surveys, new research from the culture and behaviour.” surveys and outwardly behave communication that the survey the long-term career known as Viewpoint, for 25 Chartered Institute of Personnel The CIPD and Kingston as though they are engaged, but is coming, works well,” she says. years. It conducts a full survey and Development (CIPD) and research found that employees are less likely to perform well “Then the survey should be sent potential and how of 11 categories of 60 questions the Employee Engagement who are engaged only with the and may leave quickly if a better individually to employees, with we deliver on between December and January, Consortium at Kingston task or job role at hand, which job offer comes along. Other words from the line managers which it supplements with a University Business School. it calls transactional respondents may make to explain its purpose and customer promise shorter survey every July. Business Reporter · July 2012 AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH 12 Industry view Find us online: business-reporter.co.uk Follow us on twitter: @biznessreporter Breaking survey barriers An e!ective evaluation is crucial when it comes to employee engagement and gaining the leadership support you need

ost large companies today informs progress by giving conduct regular employee executive management critical Msurveys and use them as a feedback. When executives see this key talent management measurement clear link to business strategy, they tool. These survey programmes typically Surveys are a key measurement tool are also more inclined to follow are aimed at supporting the overall business through on actions and dedicate the strategy and, in particular, the human capital the respondents, and strategic alignment. right resources for e!ective survey management strategy. The results are used to all three relate Where do survey practitioners follow-up. influence executive decision-making and to directly to senior go from here? Based on the barriers create change across the organisation when management discussed, there are three key areas for Management tools needed. At a more basic level, and in – leaders fail to implement action plans, need improvement: match business strategy and A properly developed and implemented employee-centric organisations, the survey to be more vocal in their support of the survey content, secure greater management employee survey system can be one of the exists to ensure the employee voice is heard. importance of follow-up, and struggle to find accountability in survey follow-up and action most powerful tools available to management. Despite widespread use, HR practitioners time to implement. planning, and secure the best support from When done well, it plays a crucial role in continue to face challenges related to the the leadership team to maximise ROI. assessing the e!ectiveness of business survey feedback and action planning process. Providing resources Many organisations survey because it is a strategy and maximising the potential of its These concerns prompted the Kenexa High Executives and senior managers are going to good thing to do and shows interest in the human capital. The results of the survey show Performance Institute (KHPI) to survey a regard as important, and execute and provide welfare and morale of employees, and that the practice of surveying is improving in large group of survey practitioners to try to resources, those organisational initiatives because other organisations against whom sophistication and e!ectiveness, but still identify the cause of the challenges, and to that help them achieve the greatest business they compete also are doing so. These are more needs to be done to maximise ROI. In begin providing some answers to address success. No one would argue, especially with understandable reasons, but these initiatives particular, we should be looking for strong those challenges. all the research support to the contrary, that will produce their greatest return-on- business metrics to evaluate success, The top three barriers for survey employee engagement is unimportant, and investment only when they are seen as part of ensuring that survey results are acted upon practitioners concern: the execution and indeed 16 per cent of the changes emanating an organisation’s business strategy. e!ectively and demonstrating to leadership importance of the survey programmes, as from survey programmes are identified as Executives will only be fully supportive of an that their support is critical to success. well as resources associated with action improving employee engagement. Yet even employee survey if they can see how it aligns planning post-survey. Together, these issues for these companies with sophisticated with business strategy. Jason Martindale is sales director at Kenexa accounted for 81 per cent of all the identified survey systems, fewer than 10 per cent of the The more relevant the content of the 0203 545 8188 barriers and based on verbatim answers from changes related to the customer experience survey to business strategy, the more it www.kenexa.com Getting up close and personal Live events are just the beginning of the engagement journey

ive events with the chance to biggest problem in communication insight takes bravery, but the best A guide to connecting with your employees get face-to-face with a is the illusion that it has taken place.” leaders always listen well, are Lcompany’s leader are the most Leaders who really want to be self-aware and show high levels of Use live events for deeper engagement powerful tool in employee heard and get their entire emotional intelligence. Invest in preparation at the right time engagement, according to a survey organisation lined up in the same As with stuttering King George VI Find trusted advisers of 400 professionals. direction, engaged to deliver, need to facing the ultimate test of telling his Together understand the audience mindset Around 80 per cent use them in plot their audience’s mindset, show country he was leading them into Be seen dealing with the audience’s issues planning and communication and empathy and deal with issues before war, this makes them more open to Sell your strategy with passion and energy to align managers behind the they set out their vision. seeking trusted advisers who will tell Be you, but make it the best version of ‘you’ company vision and direction, Terry says: “If someone has a them it straight – and then to Inspire managers with your energy according to the Melcrum survey for stone in their shoe, how can you investing time in projecting Top Banana, which works with expect them to walk with you until themselves the best they can. true breakthroughs. believe that supply and quality leaders to deliver events at times of they’ve taken it out?” Terry uses the image from The A well-planned event will create a issues would be fixed before they change, challenge and growth. That may require leaders to King’s Speech regularly to total experience that reinforces the could buy into a new vision. MD and co-founder Nick Terry acknowledge their leadership emphasise that authenticity is key to leader’s vision – with the appropriate Equally, a drinks brand saw a 10 says: “There is nothing more communication weaknesses. Such creating the empathy that sparks use of technology and break-out per cent increase in sales, or $56m powerful than a live event where groups to foster the right ambience (£36m) growth, in the year after a managers get personal with their and two-way dialogue. live event the leader instigated to leader as a fundamental part of an For it is when employees believe immerse his top team in a new experience. It kick-starts the process. and trust their leaders and see they global brand strategy. But any CEO who thinks ‘that’s it for are committed to the organisation Terry concludes: ˝The event was another year’ is missing the point.” and to them, as the CIPD says, that just the start of the engagement That, however, is a common deep-seated buy-in and two-way journey. The leader achieved the failing among leaders, especially engagement are generated and ultimate success because he used those who presume employees proven. The rewards for achieving the event to inspire his managers to know the business strategy and their that nirvana are huge – and the be torch bearers with the same role in it just because they sent out penalties of failure punitive. energy, passion and belief as him in an email with links to the company Terry talks of a global selling the vision on.˝ intranet. pharmaceutical business that For such leaders, as George needed to get managers from a 0845 612 6121 Bernard Shaw wrote: “The single How can you expect employees to walk with a stone in their shoe? country that was losing millions to www.top-b.com AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH Business Reporter · July 2012 Find us online: business-reporter.co.uk Follow us on twitter: @biznessreporter Like us: facebook.com/business-reporter Find us online: business-reporter.co.uk Employee engagement 13 Could proposed legislation scupper engagement?

With Adrian Beecroft’s compensated “no-fault dismissals” for underperforming workers now on the backburner, business secretary Vince Cable’s “settlement agreements” – mutually-agreed payo"s – continue to divide opinion. Our experts go head-to-head. Interviews by Virginia Matthews

Alexander Ehmann If settlement Professor Cary Cooper Head of employment policy at the agreements were Head of organisational psychology Institute of Directors at Lancaster University to be introduced, Management School Believes that fast-track settlements could cut employment red tape, but is 25 per cent say it Believes that settlement agreements not convinced they adequately address are less draconian than the no-fault the problem of underperformance would help give dismissals, which he describes as them the con#dence “sledgehammers to crack nuts” to increase their What’s wrong with the current rules? from their current employer having headcount Do you reject the suggestion that problem of bad managers, informal Sixty per cent of our members say it’s already decided to take another job, getting rid of underperforming sta! discussions that are around too difficult to dismiss an employee or may even refuse to carry out their – Ehmann is too laborious at present? underperformance would encourage for poor performance and 70 per cent job properly until a severance No, I have some sympathy for any both sides to be honest. feel it’s become even harder over the payment has been agreed. We believe firm that is reluctant to manage an last 10 years. When you add up the that any discussion around individual out of the business for fear What do you like about them? time and resources it takes to get underperformance should be initiated Any hint of bad of a tribunal, but the notion that a Staff who decide to leave could drop through the dismissal procedure by managers, not by staff. manager could have the right to get any future claim against the company, itself, and factor in the financial and managers using rid of someone on purely personal while those who refuse a settlement time costs of the consultation and Will less red tape boost employment? settlements to pay grounds is clearly unjust. offer are still free to go to an industrial arbitration stages, the entire system Some 70 per cent of our members tribunal for unfair dismissal. As long is clearly burdensome for both sides. believe employment law is the biggest people o" could How should poor performance be as the process is even-handed, it could regulatory burden on their business. be totally disastrous tackled then? provide reassurance for all. Could fast-track payo!s improve If settlement agreements were to be While I think Beecroft was right to employee engagement? introduced, 25 per cent say it would for morale raise this sensitive issue – for smaller Where do the current plans go We favoured the Beecroft proposals help give them the confidence to organisations underperformance wrong? because they established clearer rules increase their headcount. – Cooper can be deadly – the truth is that it is Professional mediators would be around poor performance and how often the fault of managers, who are essential if both camps were to it should be tackled. Settlement How do settlement agreements either loathe to address the issue have faith in these settlements. I agreements are a watered-down compare with no-fault dismissals quickly enough or who fail to offer would be unhappy if employers alone, version of this initial plan and we are plans? feedback and further training. and not employees, initiated yet to be convinced that they are Given the state of the job market and discussions around payoffs – one of radical enough to either boost the economy, we prefer the more How will settlement agreements the key elements in employee engagement among staff or meet the radical approach outlined in Beecroft help? engagement is believing the needs of employers. – which we know would prompt far They provide a forum in which both organisation you work for genuinely more hirings among our members – sides can discuss why things are going cares about your wellbeing; any hint What are your criticisms? but worst of all is to do nothing. We wrong, rather than a quick way to of bad managers using settlements There is a danger that a small minority are therefore giving the latest ditch people. While no-fault to pay people off could be disastrous of workers will try and get a payoff proposals only a muted welcome. dismissals would merely mask the for morale.

“We do not have a mindset that employers to treat temps broadly Temporary arrangements they are temporary. These are the same as employees after 12 Case study people working for us so we have weeks on any assignment. This !e smooth running of the Olympics will depend on the e#orts of to get across our brand values should, in theory, boost Merlin Entertainments Group thousands of temporary workers. But how can you engage those to ensure they deliver the best engagement levels among recruits more than 7,500 service. Our clients do not longer-term temps because pay, temporary staff during the on short-term contracts? the hours worked and the rest- summer across its attractions, breaks offered must match that including Alton Towers, Thorpe We have a national of permanent employees. Park, Chessington World of “Temps need to feel they are C a t e r i n g s u p p l i e r Of course, for some temps Adventures, The EDF Energy London Eye and Warwick Castle. By Steve Hemsley being invested in so they should BaxterStorey is providing food image to protect so working with a fun product can In 2011 the group scored 88 receive the same onboarding and drink services around the we cannot allow help to engage them. Kent-based per cent for its seasonal THE TOTAL WORKFORCE for process as permanent staff,” clock to the global media at the natural ice-cream-maker workforce engagement, this the London Olympics will exceed says Kevin Green, chief Olympic Park. It has 600 staff temporary workers Taywell is a small business but year it’s developing an Olympic 100,000. Many of these will be executive of the Recruitment ready to go, with 400 chefs, it doubles its workforce between theme to ensure engagement. temps representing companies and Employment Confederation. baristas and customer service to damage that May and August. “I try and “At Thorpe Park we’re supplying the London “Employers should also staff required every day. reputation encourage everyone to take running some initiatives Organising Committee of the take more interest in “We are making the same ownership of the brand and instil including an inter-departmental Olympic and Paralympic Games, the recruitment and investment in training new differentiate between someone in them that every batch they competition,” says group human but caterers, courier firms and selection of temps to employees for the Olympics working with BaxterStorey for are working on will be tasted by resources director Tea Colaianni. The park is also security businesses have all ensure the people as we would for anyone only a few weeks and a few a human being,” says managing running a ra"e where temps get increased their temporary joining for a short joining our business,” says years.” director Alastair Jessel. “We a ticket each time they come into workforce. Their challenge is period still fit the HR director Lynne Graham. T he A genc y Worker have a national image to protect work and events each morning how to inspire their temps so, c omp a ny ’s Regulations (AWR), which came so we cannot allow temporary to give them things to do if they that they go that extra mile for culture.” Temp workers need into force last October, have also workers to damage that come in early to miss the tra#c. the organisation. to reflect the brand had an impact, requiring reputation.” Business Reporter · July 2012 AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH 14 Industry view Find us online: business-reporter.co.uk Follow us on twitter: @biznessreporter Like us: facebook.com/business-reporter Find us online: business-reporter.co.uk

average of 31 per cent engaged take root and provide a participants at the Congress and 17 per cent disengaged. sustainable foundation for to compare the lessons from In our work with major business performance, an the presented examples with organisations all over the organisation needs engaging their own organisations’ world we have noticed that for leadership and engaging experiences. The conclusions some, their e!orts to measure management. we came to were that the key and boost engagement can It is hard to engage others if actions leaders need in order become counterproductive. you’re not engaged yourself, to raise levels of engagement This e!ect arises from several and there’s no guarantee that are: telling a compelling story sources, such as treating the being in a position of authority of the company, the current act of measuring engagement is a guarantee of engagement. reality and future vision; as the engagement activity In fact, when working with a being in contact with itself, rather than as an leading insurance company employees, involving people indicator of organisational looking to create a more to help the business address health and connectivity; “engaged and enabled” culture, its challenges and achieve its seeing engagement as one of the first questions we vision; and empathic something separate from asked leaders and managers listening - if you want to hear leadership – a responsibility was “how engaged are you, the employee voice you have owned by HR rather than a and what would increase your to listen to it, with respect and fundamental aspect of level of engagement?” Their an open mind. Follow the leaders managing the business; and responses identified things The challenge of creating focusing just on boosting the they wanted their own bosses sustainable levels of numbers rather than to do and things they realised engagement lies in the For engagement to take root and provide a addressing the underlying they could initiate themselves. constant attention of leaders issues. It arises also from So, what can leaders and managers on all the sustainable foundation for business generating a set of processes practically do to help increase people around them: treating rather than engaging people their own and other’s levels of people as individuals, performance, an organisation needs engaging in dialogue; trying to impose engagement? building trust, inviting generic activities rolled out During the Strategic HR contributions and comment, leadership and engaging management across the organisation; and Network’s 6th Annual coaching and developing measuring and then not Congress in March 2011, we them. If you want to address taking action. heard presenters from Diageo engagement, do it engagingly. espite huge interest in Smart businesses know that it In 2001, Gallup stated that Building engagement into and Standard Chartered Bank employee engagement is not enough to simply in the US, just 25 per cent of the business operation is not talk about the practical Steve Bridge is a partner at Dand a growing measure and focus on the the workforce was engaged just about systems and actions that leaders in their organisational development industry in measurement, the numbers – leaders and and 19 per cent were actively processes – it’s about people, businesses were taking to and change consultants, level of engaged employees managers need to be both disengaged. Ten years on, and the primary people are increase and sustain levels of Sheppard Moscow has barely moved in the past engaged and engaging for BlessingWhite’s Employee the organisation’s leaders and engagement. We facilitated 020 7929 9650 10 years. So what’s going on? business success. Index reported a worldwide managers. For engagement to conversations between www.sheppardmoscow.com Loyalty that lasts

Listening to your colleagues and making valued, not just for what we do at work but for what we do outside of work. We’ve had a them feel valued can result in longer- fantastic weekend and have been proud to be part of these celebrations.” lasting loyalty – and you can’t Colleagues were also an important factor in Sainsbury’s decision to become the main put a price on that sponsor of the London 2012 Paralympic Games. Once the deal was done, all the colleagues ainsbury’s, one of the biggest names in impetus for our sponsorship of the who had suggested it were invited to a retail, has decided to sponsor two of the Paralympic Games came from them,” says gathering in London - but not told why. Smajor events this year, the Queen’s Connor. “Once there, our chief executive Justin Diamond Jubilee and the Paralympic Games. “Sainsbury’s was founded in 1869 and has a King arrived with Locog chair Sebastian Coe. Making sure employees are engaged in great British heritage so they understood why They announced the sponsorship and posed these sponsorship decisions is important. we would want to be involved in the Diamond for photographs with all the colleagues who “We know we have to engage with our Jubilee celebrations. Our sponsorships will had suggested it,” says Connor. colleagues as well as our customers, help make our colleagues proud ambassadors Twenty-five colleagues have been o!ered supporting initiatives that are important to for the Sainsbury’s brand.” the chance to work on secondment at Locog them. With so much going on this year we Sainsbury’s was the first major corporate and Sainsbury’s are funding 135 Games have called 2012 “A year like no other,” says partner of the Queen’s Thames Diamond Makers volunteers, paying for their hotels and Jacki Connor, director of Colleague Jubilee River Pageant, and decided to use one transport as well as their normal salary. They Engagement at Sainsbury’s. of its barges in the flotilla to reward 100 are also taking 5,000 colleagues to the Games “We talk to our colleagues regularly and we Sainsbury’s colleagues who combine their on the same day from all over the country so know what matters to them. We always jobs with caring responsibilities. Connor: engage with colleages and customers that everyone has the chance to be involved. consider our colleagues’ ideas - a lot of the “We work closely with Carers UK and so we “Now our Colleague Panel surveys show that knew that one in eight of our colleagues are that it would make all our colleagues feel 98 per cent of our colleagues support the carers, so we decided to do something special proud to work for a company that o!ers carers sponsorship decision,” says Connor. “We are so pleased that we to recognise the great job they do,” says a chance like this.” says Connor. “We confidently expect to see great Connor. It certainly worked for Lawrence Pepperrell, colleague engagement during that period, so feel valued, not just for Diversity Champions nominated who works at the Sainsbury’s store in the increase in colleague loyalty will last what we do at work but for colleagues who could also invite a guest of Wimbledon, London. He also cares for his longer – and that is priceless.” their choice, and most asked if they could wife, Suzanne, and took her along on the what we do outside of bring along the people they cared for. barge. www.j-sainsbury.co.uk work” – Pepperrell “As well as recognising our carers, we hope He says: “We are so pleased that we feel www.sainsburys.co.uk/recruitment AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH Business Reporter · July 2012 Find us online: business-reporter.co.uk Follow us on twitter: @biznessreporter Like us: facebook.com/business-reporter Find us online: business-reporter.co.uk Industry view 15 Taking it to the next level Get training right by embracing new learning platforms, or risk throwing money down the drain

usinesses invest thousands of – meaning you could be throwing businesses are missing out as they pounds on training every year, money down the drain. With the can also provide a fresh approach to Bbut the question remains: are nation undergoing unprecedented training. Employees who use social employees ever really engaged or challenges, it is crucial that media to communicate with family does it go in one ear and out the businesses invest wisely. If sta! are and friends now expect to other? Employee engagement is engaged, they will perform better communicate with their colleagues considered one of the major and feel a sense of self-satisfaction, in the same way. When it comes to challenges in delivering training in which leads to healthier financial learning, businesses should take the today’s workplace; evidently there is prospects. same approach. Businesses can use social media as part of employee training work to be done. So where are businesses going This is especially true when The Department for Business is wrong? Why are training managers considering a 2010 American comes to training, as learners have increasingly mobile. Successful keen to address the issue and still finding employee engagement a Society for Training and individual needs, skill-bases and businesses need to empower commissioned businessman and challenge? Some argue that Development study, which found learning styles. employees, allowing them to fit author David MacLeod together with standards of education are slipping that today’s tech-savvy workers Once training has been learning around busy lifestyles. Nita Clarke to take an in-depth look and that the workforce’s general recognise the value of using social developed it needs to be transformed For businesses that engage their at employee engagement. The learning ability is diminishing. Or is media for learning and from a solitary event to a employees, the benefits are clear: MacLeod report: Engaging for it how the subject matter is being development. More than 80 per cent community-orientated experience. improved sta! morale, polishing of Success: enhancing performance delivered? Many businesses are not expect to see social tools adopted by Employees should then be existing skills and higher through employee engagement, taking advantage of alternative their organisation’s learning group encouraged to share socially by performance levels. However, the highlighted the potential benefits to learning platforms which can within the next three years. commenting, rating and making important lesson for businesses is organisations and employees. My deliver more e!ective training. But before integrating social recommendations for fellow that they should always put their thoughts on MacLeod’s insightful media networking principles into learners. Therefore, tools need to be workforce first, by continuing to report are as follows. Learning socially training systems, businesses must both easy to use and powerful with keep them engaged through Firstly, it’s essential that With Facebook users reaching 900 know their workforce inside-out. clear learning objectives as well as innovative learning platforms. employees apply their learning to million, clearly the public has an This means capitalising on topics being unified, friendly, intuitive and their individual roles. But if the insatiable appetite for collaborating that already interest them and highly visual. Kevin Young is head training is poor quality, too and sharing with like-minded people. tailoring each programme It’s also important that the of Skillsoft, EMEA theoretical, monotonous or long, it Despite social media typically accordingly. The one-size-fits-all training can be accessed anywhere, 0127 640 1994 may be overlooked completely being used for leisure, many approach just doesn’t work when it as many aspects of life are becoming [email protected]

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