Does the Honeymoon Have to End? Keeping Employees Engaged the First Year and Beyond

1. Does the Honeymoon Have to End?Keeping Employees Engaged the First Year and Beyond Presented by: Kevin Sheridan, CEOHR Solutions, Inc.

2. Agenda:Keeping Employees Engaged the First Yearand Beyond Defining Employee Engagement What is the Honeymoon Effect? Steps to Take in the First Year Selecting for Engagement and Retention Proper Onboarding First-Year Review/Performance Management Drivers of Employee Engagement Top Five Ways to Retain Beyond the First Year Getting Employees Involved in Their Own Engagement Q&A

3. Employee Engagement Video

4. Levels of Engagement in the Workplace • Three Types of Employees: • ENGAGED • Highly Engaged and committed to the mission, vision, and values of the organization. • AMBIVALENT • They are not apt to “going the extra mile” or have strong spirit and enthusiasm. Not likely to quickly volunteer for extra assignments or lead roles. The often can feel unappreciated, and at times, unimportant. • DISENGAGED • Negative energy - they focus on problems. HR Solutions’ Research – Engagement Statistics from our National Normative Database.

5. The Numbers Behind the Story HR Solutions’ Research – Engagement Statistics by Tenure from January 2008 to May 2009. OJS = Overall Job Satisfaction Scores.

6. HR Solutions’ Engagement Model HR Solutions’ definition of Engagement focuses on three components. Creating a Magnetic Culture® which draws talented individuals, engages them, empowers them, and makes it less likely that they will leave the organization. Second, our Engagement approach quantifies the number of employees choosing to exert discretionary effort to provide better outcomes for patients and the organization. Third, our model is the first to encourage joint ownership for Engagement between management and employees.

7. A Magnetic Culture® is one that draws customers to the organization and talented employees to the workplace, and sustains an environment in which they are less likely to leave. It is marked by Engaged Employees who share a strong desire to be part of the value that the organization creates. Magnetic Culture®, is more than a buzzword. Organizations that place a high value on actively cultivating a culture of Engagement will stand apart from their peers – and enjoy better business outcomes. The numbers don’t lie: 75% of American workers are not currently Engaged. This is a wake-up call for organizations, regardless of industry or size, to develop ongoing strategies to crate engaged workplaces and continually seek employee feedback to measure levels of Engagement and affect positive change. What is a “Magnetic Culture®”?

8. Top Drivers of Employee Engagement • Employee Recognition Programs • Career Development • Open Communications • Direct Supervisor/Manager Leadership Abilities • Senior Management’s Relationship with Employees • Strategy/Mission • Organizational Culture Determination of key drivers based on survey responses in our National Normative Database, representing over 3.3 million participants and 2,400 organizations.

9. Audience Question Which group of employees do you thinkdemonstrates a heightened sense of jobsecurity as a result of the recession? • Engaged Employees • Ambivalent Employees • Disengaged Employees

10. Which group of employees do you think demonstrates a heightened sense of job security as a result of the recession? Audience Question • Engaged Employees • Ambivalent Employees • Disengaged Employees

11. Recessionary Effects on Engagement • Prior to the recession, 41% of Disengaged Employees surveyed worried about job security. Since then, the percentage of the group maintaining concern for job security has dropped by nearly half, to 21%. • Before the recession,a mere 6% of Engaged Employees felt insecure about their job. Now, 14% of Engaged Employees feel insecure about their jobs.

12. The Engagement Dilemma Research has shown that Disengaged employees are the most likely to stay, although they produce the least outcomes for your organization.1 These individuals stay for their regular paycheck, but do not add value to the company. Engaged Employees, on the other hand, are likely to take another position if a better opportunity arises.1 1 Workspace. (September, 2009). Driving Employee Engagement Through Performance Management.

13. The Forecast for Employee Retention As the job market improves… New opportunities with outside organizations will increase. There will be more job options for top performers. Employees who stayed at their position due to the poor job market will leave. Increase in turnover may occur as a result. This puts your organization at risk of losing your best workers, who now have other options for employment. Recent research conducted by HR Solutions found that 39% of employees responded “Strongly Agree” or“Agree” when asked if they thought of resigning within the last six months.

14. Estimated costs of turnover in the United States economy: $5 trillion per year.1 Cost of Disengagement: $300 billion.2 The time investment: The average time it takes to hire a new full-time employee ranges from 4.5 to 14.4 weeks.3 The Cost to Your Organization 1 Frank, F.D., Finnegan, R. P., & Taylor, C.R. (2004) The Race for talent: Retaining and engaging workers in the 21st century. 2 Getting Engaged by Steve Bates, HR Magazine Feb 2004 3 The Edge Report. (September, 2009) Careerbuilder.com

15. What is the Honeymoon Effect? The decline we see in Actively Engaged Employees after the first year of service. The decline in employees’ overall job satisfaction after one year of service.

16. Steps to Take in the First Year

17. Select theRightPeople: • “Engagement Predictors” during the selection process: • Adaptability • Passion for the Work • Emotional Maturity • Positive Disposition • Self-efficacy • Achievement Orientation • Tools for Selecting Engaged Employees: • Situation judgment interview questions • Structured behavior interviews • Personality tests • Combination of multiple methods 1 in 25 new employees quit on their first day. Source: Judith Enns PhD,HR Solutions Search & Staffing

18. Typically, What Happens on a New Employee’s First Day on the Job? Not welcomed by staff Not met at the door Not given bathroom key Given employee manual to read front to back Supervisor not there to introduce to the team Voice mail doesn’t work Work area dirty or still containing other employees belongings Computer isn’t set up No one scheduled to train them

19. Onboarding New Employees:The Right Way Successful employee integration: First day should be a celebration! Meet with manager Team building event Lunch Meeting Training Clear definition of role Provided with business cards Overview of the strategy and mission Go-to list Performance evaluation process/metrics Proactively solicit feedback from new hires to further ensure their success, such as a survey for all new employees within the first 90 days.

20. Audience Question How often are employees recognized at your organization? • Once every five years • Once a year • Once a month • Once or twice a week • Daily

21. Retain Top Performers:Create a Recognition Culture* OLD WAY Every 5 Years Every Year Every Month NEW WAY Yearly Monthly Real Time • Recognize frequently and publicly • Years of Service for every year (instead of 5,10,15 etc.) • Recognition surpasses pay as the top motivator for younger generations Studies show that supervisors shouldrecognize employees every 7 days to be effective. *Source: Michael C. Fina, Total Recognition Strategy

22. Steps to Take After the First Year

23. Audience Participation What is the TOP reason cited by employees with one to five years tenure as to why they would consider resigning? Supervisor/Manager Pay Benefits Lack of Career Advancement Workload 2010 Engagement Research by HR Solutions, Inc. found that 39%of employees responded “Strongly Agree” or “Agree” when asked the following question: “I thought of resigning in the last six months.” 

24. Results “I thought of resigning in the last six months.” The following reasons were cited by employees who had been with the company for one to five years: 31% Lack of Career Advancement 24% Pay 22% Other 13% Supervisor/Manager 10% Benefits

25. Characteristics of“One to Fivers” A different set of Priorities… • 1. Enjoy a strong manager/employee relationship. • 2. Believe in the company’s mission and support the corporate strategy. • 3. Have established cohesive co-worker relationships within their teams. • 4. Many opportunities to learn and grow. • 5. Want help defining their individual goals and expectations.

26. The Top Five Ways to Retain Engaged Employees Desired Job Content. Career Development. Positive Organizational Culture. Compensation Plans/Benefits Plans. Maximize Diversity and Generational Strengths.

27. Provide desired job content: Supervisors should provide a clear definition of employee’s role and assigned job expectations. Employee’s skills should be utilized effectively. The organization should evaluate for fairness and consistency in workplace practices and procedures. Supervisors can provide a variety of interesting tasks for employees. The organization should highlight and establish a link back to the strategy and mission. Retain and EngageBest Practices Toolkit

28. Offer Career Development: Supervisors should work directly with employees to establish a career path. The organization should ensure that there are fair promotions for qualified employees. Supervisors and Senior Management should actively seek to motivate team members. Supervisors should develop a career development plan which provides ongoing educational opportunities. Senior Management should encourage supervisors to coach employees with passion as well as provide strong mentors and role models. Senior Management should encourage active employee participation in all aspects of the organization. Retain and EngageBest Practices Toolkit

29. Maintain a Positive Organizational Culture Supervisors should directly connect employee behaviors to the organization’s success. Senior Management to openly reach out to the community to encourage their involvement. Provide employees with the tools and trust in order for them to solve problems autonomously. Senior Management and employees to collaborate and maintain the success/reputation of the organization. The entire organization should focus on the customers as the first priority. Retain and EngageBest Practices Toolkit

30. Retain and EngageBest Practices Toolkit • Clearly Communicate a Total Compensation Plan • Flex-time. • Job sharing. • Health and Wellness. • Leadership/Mentoring programs. • Management/Training opportunities. • Flexible dress code. • Tuition/Professional Development reimbursement. • Day off with pay for Community/Charitable activities. • Personalized employee benefit statements.

31. Retain and EngageBest Practices Toolkit Maximize Diversity and Generational Strengths. • Demonstrate that Diversity is a priorityfor the organization. % Favorable

32. Audience Question Employees Managers Responsibility Should be Shared I’m Not Sure Who Do YOU Think Should Be Primarily Responsible for Workplace Engagement?

33. Online Poll Results HR Solutions asked the same question on its website, and the results were overwhelmingly in favor of shared responsibilityfor Engagement. • Employees (11%) • Managers (16%) • Responsibility Should be Shared (69%) • I’m Not Sure (4%)

34. Getting Employees Involved in Their Own Engagement Key preventative measures to ensure this mistake does not occur: Empower employees to learn their own level of Engagement Encourage employees to take ownership of their Engagement Greatest mistake organizations make is focusing efforts to increase Employee Engagement solely on management and the organization.

35. Surviving the Honeymoon The steep decline of Engagement levels from 36% to 17% after one year of service is astonishing. This is a wake-up call for organizations, regardless of industry or size, to develop ongoing strategies to create Engaged workplaces and continually seek employee feedback to measure levels of Engagement and affect positive change.

36. Questions/Comments? Please forward any additional questions to: info@hrsolutionsinc.com