2011 HR Leadership & Management Conference

1. 2011 HR Leadership & Management Conference Neil Reichenberg IPMA-HR Executive Director

2. Employee Morale • Most organizations recognize their employees as their most important asset. • HR is the only department that has the people of the organization as its primary mission • “The right talent is the fundamental building block when it comes to creating an organization capable of innovating and changing…” • Ed Lawler, Director, Center for Effective Organizations and Professor, University of Southern California

3. How Are Organizations Treating Their Most Important Asset? • IPMA-HR surveys showed agencies taking the following actions to address budget issues: • Hiring freezes • Pay freezes • Reduce overtime • Reduce training • Layoffs & furloughs • Change benefit plans to require more employee contributions

4. Employee Morale • There is anti-government sentiment fueled in part over concern with public employee pay and benefits • Although resources have been reduced, the workload in many instances remains the same or greater • The public sector continues to lag the economic recovery • All of this can lead to a decline in employee morale

5. Improving Employee Morale • What are organizations doing to improve morale? • Created financial dashboard that is updated monthly so employees can check on the organization’s finances • Started a career coaching program to help employees develop their career & achieve personal and professional excellence

6. Improving Employee Morale • What are organizations doing to improve morale? • Offered additional tools for supervisors to recognize employee contributions that are not tied to monetary rewards • Created a web blog accessible to employees & citizens to showcase employees at their finest, with nominations from coworkers & citizens

7. Improving Employee Morale • What are organizations doing to improve morale? • KUDO’s program on the organization’s intranet that can be sent out by any employee, supervisor or manager to recognize good work. Each month the organization has a drawing for a pen set for all who received a Kudo • Employees print them & hang them in their work area

8. Improving Employee Morale • What are organizations doing to improve morale? • Offer employees discounts on retail, entertainment, lodging, & restaurants • County sponsors teams that participate in sports with other governments • Annual employee recognition celebration during Public Service Recognition Week

9. Engagement • A state in which employees feel a vested interest in the success of the organization and are both willing and motivated to perform to levels that exceed the stated job requirements • It reflects how employees feel about the overall work experience – the organization, its leaders, the work environment & the recognition and rewards they receive

10. Engagement • Engagement contributes to the performance of the organization leading to improvements in service quality, customer satisfaction, retention, & productivity • It also serves the individual by fulfilling a need to be connected to worthwhile endeavors and make a significant contribution

11. Employee Engagement - Gallup • Gallup (www.gallup.com) has done extensive research on employee engagement • Average working population ratio of engaged to actively disengaged employees is nearly 2:1 • World class organizations have an engagement ratio of more than 9:1

12. Employee Engagement - Gallup Gallup’s 12 elements of engagement consist of statements that best predict employee and workgroup performance: I know what is expected of me at work I have the materials and equipment I need to do my work right At work, I have the opportunity to do what I do best every day In the last 7 days, I have received recognition or praise for doing good work My supervisor, or someone at work seems to care about me as a person There is someone at work who encourages my development

13. Employee Engagement - Gallup 7. My opinions seem to count 8. The mission or purpose of my organization makes me feel my job is important 9. My fellow employees are committed to doing quality work 10. I have a best friend at work 11. In the last 6 months, someone at work has talked to me about my progress 12. This last year, I have had opportunities at work to learn and grow

14. Employee Engagement – Blessing White Report • Released by Blessing White (www.blessingwhite.com) & is based on global survey responses from nearly 11,000 individuals & interviews with HR and line leaders • Worldwide, only 31% of employees are engaged, with 17% being disengaged

15. Employee Engagement – Blessing White Report • Five levels of employee engagement: • Engaged – high contribution & high satisfaction – they contribute fully to the success of the organization & find great satisfaction in their work • Almost engaged – these employees are among the high performers & are reasonably satisfied with their job. • Honeymooners & Hamsters – honeymooners are new to the organization or their role & happy to be there. Hamsters may be working hard, but are in effect spinning their wheels working on non-essential tasks, contributing little to the success of the organization.

16. Employee Engagement – Blessing White Report • Five levels of employee engagement • Crash & Burners – disillusioned & potentially exhausted, they are top producers who aren’t achieving their personal definition of success & satisfaction. They can be bitterly vocal about the organization. • Disengaged – they are the most disconnected from organizational priorities, often feel underutilized & are not getting what they want from work. If they can’t be coached to higher levels of engagement, their exit benefits everyone.

17. Employee Engagement – Blessing White Report • Key study findings: • Despite the global recession, engagement levels remained about the same since before the recession • In organizations that imposed layoffs, salary & hiring freezes, employees were less likely to be engaged than the workforce at large • More employees are considering leaving their organizations than they were in 2008 • There is a strong correlation between engagement levels and age, role/level, and tenure in the organization – the higher up in the organization, the more likely you are to be engaged

18. Employee Engagement – Blessing White Report • Key study findings • Generation Y are among the least engaged • Engaged employees plan to stay for what they give to the organization (they like their work & are able to contribute), while disengaged employees stay for what they get from the organization (secure job, desirable salary, favorable job conditions) • The top drivers of job satisfaction are opportunities to apply their talents, career development, & training opportunities • Trust in executives can have more than twice the impact on engagement levels than trust in immediate managers does • Employees are more likely to trust their immediate managers than the executives in their organization

19. Employee Engagement – Blessing White Report • Key study findings • Employees want more opportunities to do what they do best and more flexible job conditions • Employees want greater clarity about what the organization needs me to do & why • Employees want regular, specific feedback about how they are doing • Engagement surveys that don’t lead to visible follow-up action may actually decrease engagement levels, so organizations should not do them unless they plan to act on the results

20. Employee Engagement – Blessing White Report

21. Employee Engagement – Mercer Study • Mercer study found that US employees are not happy and are less committed to their employers as compared to 5 years ago • One in three employees is seriously considering leaving • 1/5th didn’t commit to staying or leaving & are the least satisfied & engaged • Actions taken during the recession are cited as the cause for this shift

22. Employee Engagement – Mercer Study • As the economy improves, employers risk losing valued talent & face productivity and morale issues among the workers who remain • 40% of workers 25 – 34 are seriously considering leaving, along with 44% of employees 24 and younger

23. Employee Engagement – Mercer Study • Scores dropped slightly, but consistently on most other engagement-related questions • I am willing to go beyond the requirements of my job • My work gives me a feeling of personal accomplishment • I am proud to work for my organization • I feel a strong sense of commitment to my organization

24. For additional information, please contact: • Neil Reichenberg • IPMA-HR Executive Director • nreichenberg@ipma-hr.org • 703/549-7100