[Slides] Strengthening Employee Relationships in the Digital Era by Altimeter Group

1. WebinarStrengthening Employee Relationships in the Digital Era Charlene Li, Industry Analyst Jon Cifuentes, Sr. Researcher January 20, 2015 Event hashtag: #employeeengagement Engage via Chat Window

2. Agenda Welcome Research Highlights The State of Employee Engagement and Advocacy Driving Business Impact Recommendations Q&A

3. Employee Engagement is: A term used to describe three primary types of initiatives. 1.) Internal collaboration 2.) Digital/social empowerment 3.) Employee advocacy

4. Defining Digital Employee Engagement

5. Agenda Welcome Research Highlights The State of Employee Engagement and Advocacy Driving Business Impact Recommendations Q&A

6. Research Highlights • Only 41% of organizations believe they have a holistic and strategic approach to employee engagement and advocacy. • Only 43% of survey respondents believe they have an organizational culture of trust that supports employee engagement. • Only 36% and 25% of respondents have organizations where many employees use their internal collaboration platform and enterprise social network, respectively.

7. Agenda Welcome Research Highlights The State of Employee Engagement and Advocacy Driving Business Impact Recommendations Q&A

8. Most companies lack a coherent approach to digital employee engagement “Which department leads employee engagement initiatives in your organization?” Base: 88 companies with more than 250 employees (surveyed by Altimeter Group Q3 2014)

9. Involvement all over the organization, but a lack of coordination “What other departments are involved in Employee Engagement initiatives in your organization?” Base: 88 companies with more than 250 employees (surveyed by Altimeter Group Q3 2014)

10. Employee engagement efforts affect everyone, and rarely have a holistic strategy (or home) “With which of the following statements do you agree? Percentages are those that agree and strongly agree” Base: 52 companies with more than 250 employees (surveyed by Altimeter Group Q3 2014)

11. Q&A • Who feels their organization looks at employee engagement holistically, and/or actively pursues employee engagement broadly across the organization? • Who is the owner? Who is accountable?

12. Digital technology deployments suffer from a lack of business focus and platform fatigue “Below is a list of Employee Engagement platforms and programs. Please indicate the level of deployment for each internal collaboration platform” Base: 55 companies with more than 250 employees (surveyed by Altimeter Group Q3 2014)

13. Many organizations lack wide adoption of employee engagement programs “How widely are external social channels used by the following departments to engage with people outside the organization?” Base: 56 companies with more than 250 employees (surveyed by Altimeter Group Q3 2014)

14. Employee Engagement leaders have strategic desired outcomes from programs “Please rank each of the following desired outcomes for your Employee Engagement initiatives by order of most important to least important for your organization” Base: 64companies with more than 250 employees (surveyed by Altimeter Group Q3 2014)

15. But actual metrics don’t align to strategic goals “Please rank which metrics you use the most to describe the impact of your Employee Engagement programs” Base: 57 companies with more than 250 employees (surveyed by Altimeter Group Q3 2014)

16. Socially engaged companies have more engaged employees Base: 1,378 respondents in the Control group. 1,460 respondents in the Socially Engaged group from companies with more than 1,000 employees (Surveyed by LinkedIn and Altimeter Group Q2 2014)

17. Q&A • How digitally/socially engaged are people in your organization? Internally? Externally? • What platforms do they use to engage?

18. Agenda Welcome Research Highlights The State of Employee Engagement and Advocacy Driving Business Impact Recommendations Q&A

19. Better employee relationships improve customer relationships – and vice versa Source: Altimeter Group

20. Case study: TD Bank Group’s Employee Engagement evolution

21. Map employee journeys to deepen relationships Source: Altimeter Group

22. Measure and develop each employee relationship Source: IBM

23. Activity and network metrics provide insight for employee development Source: Altimeter Group

24. Employee Engagement platforms divide – internal and external engagement

25. Further out: an “Employee Engagement Cloud” will emerge as a suite

26. Agenda Welcome Research Highlights The State of Employee Engagement and Advocacy Driving Business Impact Recommendations Q&A

27. 1. Become an Extroverted Enterprise, Starting with Executives • Embrace fluidity, transparency, and speed in employee communications. • Don’t wait to be informed by your employees – actively seek opinions from them (and customers) • Executives must be comfortable bridging the “power distance” within the organization

28. 2. Support Employee Engagement with a culture of content • Start with existing, pre-populated content (beginners) • Create your own content. • Choose a platform to involve employees at scale.

29. 3. Make HR more strategic by injecting marketing best practices • CHROs and CMOs need to form a tight bond • Marketing needs the support of HR to activate employee engagement that delights customers • HR needs to tap marketing skills to better understand and engage employees

30. 4. Close the employee trust gap with training • Trust is a reciprocal relationship – and a culture of trust requires constant reinforcement • Be clear and specific on what employees can and can’t do • Focus on positive reinforcement

31. 5. Integrate tools to create the employee engagement cloud • Resist bright, shiny objects • Live by this code: Change & train new behaviors before choosing new tools

32. Thank You Disclaimer: Although the information and data used in this report have been produced and processed from sources believed to be reliable, no warranty expressed or implied is made regarding the completeness, accuracy, adequacy or use of the information. The authors and contributors of the information and data shall have no liability for errors or omissions contained herein or for interpretations thereof. Reference herein to any specific product or vendor by trade name, trademark or otherwise does not constitute or imply its endorsement, recommendation or favoring by the authors or contributors and shall not be used for advertising or product endorsement purposes. The opinions expressed herein are subject to change without notice. Altimeter Group provides research and advisory for companies challenged by business disruptions, enabling them to pursue new opportunities and business models. Charlene Li Industry Analyst @charleneli Jon Cifuentes Senior Researcher @joncifuentes