How can we keep our employees engaged in their work in the current economic climate

1. Knowledge Café How can we keep our employees engaged in their work, in the current economic climate? Alex Wilson - BT Sharon Darwent - BT Dave Snowden – Cognitive Edge David Gurteen – Gurteen Knowledge

2. We’re here to consider the question……. “How can we keep our employees engaged in their work, in the current economic climate?” By discussing, debating, sharing experience, learning…….

3. There are 90 people here today all with varied backgrounds, experience and perspectives • Emphasis on debate, learning, sharing experience • Building relationships across industries and companies – mutual support, ideas and learning • Not a session for us to TELL you how BT does engagement • Although, we will seed the discussion with ideas, examples and engagement practices

4. >100 years of experience in the room…

5. Welcome, introductions, agenda 12:00 Buffet lunch 13:00 Welcome & Introduction Alex Wilson 13:15 Engaging your Employees - Dave Snowden 14:00 The Knowledge Cafe by David Gurteen 14:30 Speed Networking 14:45 Knowledge Café – discuss, share learning 16:00 Close

6. Introduction Employee Engagement at BT Alex Wilson – BT Group HRD

7. What employee engagement means to BT Creating a climate where BT people are committed to the company’s success. Where they value, believe in and enjoy the work they do to help the company be successful. An engaged person brings creativity, passion and energy to the job; they proactively drive change, deliver business results and infect others with their enthusiasm. They are achieving their full potential.

8. Why it’s important.. Engaged Employees Improved Performance Satisfied Customers Business Results Engaged Employees • Generate 43% more revenue (Hay Group) • Disengaged workers costs the UK £44Bn a year (IES) and the US $270 Bn - $343Bn (Gallup) in lost productivity • Have 2.7 sick days per year, rather than the 6.2 disengaged employees take (Gallup) • Are 87% less likely to leave (Corporate Leadership Council) • 67% advocate their organisations; only 3% of the disengaged do (Gallup) • 9 out of 10 of key barriers to successful change, people related (PWC) • 59% of EE say “work brings out their most creative ideas” – only 3% of disengaged agree (Gallup)

9. The global economic downturn is affecting people’s engagement For most companies… • Rising concern about job security • Losing confidence and trust in senior leadership • Less clarity about future of the company • Less reward, less people, more stress • Productivity, morale declining • Pressure on middle management – making tough decisions • Could be a deferred retention issue (people leave when things get better) • In a recent survey 88% of BT people expressed concern about the economic climate Neutral Strongly Disagree Agree Strongly Agree

10. Companies are taking swift action to respond to the downturn How Companies are Responding to the Downturn A slowdown in the economy will have a significant impact on the business results Scaling down production capacity and reducing cost of overall headcount Response Finding productivity gains and closing down interim work Combining these interventions with growth measures - opportunitistic hiring of top talent, targeted leadership development and new Reviewing compensation and benefit programmes & long term incentives - pensions 0% 20% 40% 60% 80% 100% Percentage Respondants *2009 study by Hewitt and Associates covering 53 organisations, employing a total of 3.5 million people

11. Challenges • • • Retain and motivate best people Need for focussed execution Improved capability – change mgt, leadership and talent, employee engagement Industrial action and disputes Market perception – reputation and brand. Need to sustain values when making hard choices Compliance with employment legislation Continue investing in the future • • • •

12. Leadership style is key Great leaders strive in challenging times • They make tough decisions with courage and speed • They adapt quickly, listening and learning from feedback • They are confident, honest delivering clear and consistent messages • They do what they say they will; make commitments public and keep to them • They act as one team, speak with one voice • and have a relentless drive for execution

13. People Engagement is key Clear expectations of role Opportunities to learn, develop and grow Have the tools and skills I need Authority to make decisions Collaborate with others Motivated to do my best work Clear sense of direction Confident about the future Communicate openly about progress I’m involved in delivering the strategy My Job The Company Proud to work here Want to stay, satisfied Advocate of the company Senior Leaders My Team Engaged Employee Ideas and opinions count Committed to do quality work Learn from and respect others Support each other Speed up and simplify the way we work My Manager Helps me be the best I can be Cares about me and gives feedback Recognises my best work and contribution to the customer A role model for collaboration

14. How we’re improving engagement at BT • More regular frequent feedback – New quarterly survey informs business strategy – Embedding engagement into business planning cycle – holistic – More comments and conversations Monitoring impact of change programmes more proactively – Better planning and line of sight – Change impact for key populations Leader led engagement programmes – Clarity around future direction – Building confidence and trust in leadership – Making leaders visible, accessible, public commitments – Developing leaders Next.. – Enhancing the employee experience at key touchpoints – recruitment, induction, transition etc. • • •

15. Backup

16. The Global Economy is slowing down World Economic Forum Feb 09 “The message from the Annual Meeting is that leaders must continue to develop a swift and coordinated policy response to the most serious global recession since the 1930s: global challenges demand global solutions” BT like all companies has been affected by the financial crisis

17. Getting more for less Clear objectives and performance management Headcount reduction Modify employment policies Peformance incentives Policy implementation Tax and pensions De-layering

18. Dave Snowden Engaging Employees