Keys to Organizational Effectiveness: The Importance of Engaged Employees

1. Keys to Organizational Effectiveness: The Importance of Engaged Employees

2. Your Speaker Today Mike Phillips Director of Feedback Strategy Cvent Web Surveys mphillips@cvent.com

3. Employee “Engagement” Defined Employee Engagement Study, July 2012 An engaged employee is enthusiastically and proudly involved in his or her organization and day-to-day job responsibilities, and engagement keeps employees committed to their work. “A heightened emotional connection that an employee feels for his or her organization, that influences him or her to exert greater discretionary effort to his or her work.” - The Conference Board “The measurable degree of an employee’s positive or negative emotional attachment to their job, colleagues and organization that profoundly influences their willingness to learn and perform at work.”

4. Why is Engagement Important?Engagement Benchmarks “Depending on global region, industry type and company size, an average of 29% - 33% of employees can be considered at any particular point in time.” “Only 58% of public sector employees are fully engaged in their jobs.” Engaged public sector employees are… • Twice as likely to stay in their current job • 2.5 times more likely to feel they can “make a difference” • 2.5 times more likely to recommend their workplace to others • Three times as likely to report being “very satisfied” in their jobs

5. Why is Engagement Important? • Revenue: engaged employees play a major role in helping achieve revenue goals. • Employee retention: engaged workforces enjoy higher retention rates. • Productivity: engaged employees are more productive. • Morale: engaged employees have higher morale. • Creativity: engaged employees are viewed as more creative and innovative. • Stakeholder loyalty: engaged employees are key to creating more loyal stakeholders.

6. Getting to “Engagement”

7. Employee Engagement – First Principles Source: Employee Engagement Benchmark Study Demand Metric Research Corporation December, 2013

8. Measuring Engagement “How do you measure effects of employee engagement?” Source: Employee Engagement Benchmark Study Demand Metric Research Corporation December, 2013

9. Creating an Engaged Culture “How do you create and maintain engagement?” Source: Employee Engagement Benchmark Study Demand Metric Research Corporation December, 2013

10. Key First Steps

11. Current State of Measurement “In spite of the importance of employee retention to agency success, more than two-thirds of those surveyed do not have a formal process, such as employee opinion surveys or other research tools, for assessing employee engagement.” Employee Engagement Study, July 2012

12. Quantifying and Acting on Engagement

13. 2 Key Dimensions to Engagement

14. Engagement Segmentation Alignment Questions: • I know what is expected of me at work. • The mission/purpose of my company makes me feel my job is important. • My associates (fellow employees) are committed to doing quality work. • I have a best friend at work. • In the last six months, someone at work has talked to me about my progress. Empowerment Questions: • I have the materials and equipment needed to perform my duties. • I have the opportunity to do what I do best every day. • In the last seven days, I have received recognition or praise for doing good work. • My supervisor cares about me as a person. • Someone at work encourages my development. • At work, my opinions seem to count. • In the last year, I have had opportunities to learn and grow.

15. Engagement Segmentation • aligned • Productive contributors • Do not use their own judgment or make their own decisions • Engaged • Make decisions and take actions that they believe are in the best interests of the company Step 1: Based on agreement w/each of the 12 Engagement Statements, each Employee can be segmented into Engaged or Disengaged segments based on agreement with specific statements. aligned • DIsengaged • No connection w/organization • Source of income only • empowered • Feel free to make their own decisions • Do not feel responsible for success of firm Empowered

16. Engagement Segmentation Step 2: Predictive statistical analysis can then be performed to determine what attributes of the experience best predict differences between Engaged and Disengaged segments. • DIsengaged • No connection w/organization • Source of income only Experience Attributes Defining the Difference • Engaged • Make decisions and take actions that they believe are in the best interests of the organization.

17. Employee Engagement SegmentationBasic Profile: Key Metrics “Engaged” Employee Segment Profile Employee Engagement Segments • Attribute • Satisfaction • Recommend • Aligned w/Mission • Empowered to Act • Index • 164 • 152 • 168 • 181 Engaged • Attribute • Satisfaction • Recommend • Aligned w/Mission • Empowered to Act • Index • 121 • 133 • 124 • 166 Empowered • Attribute • Satisfaction • Recommend • Aligned w/Mission • Empowered to Act • Index • 112 • 131 • 157 • 131 Aligned • Attribute • Satisfaction • Recommend • Aligned w/Mission • Empowered to Act • Index • 89 • 77 • 65 • 58 Disengaged Below Average Agreement Above Average Agreement Index: Index of 100 = average for all respondents

18. Employee Engagement SegmentationDemographic Profile Report Example Employee Demographic Profile by Engagement Segment Above Average Below Average Index: Index of 100 = average for all respondents

19. Employee Engagement SegmentationKey Driver Analysis of Engagement % Importance in Predicting Employee Engagement

20. Employee Engagement SegmentationKey Driver Analysis of Engagement Key Primary/Sub-Drivers of Employee Engagement

21. Full CircleEmployee Engagement and Organizational Effectiveness Committed Ambassadors New Service Ideas Empowered Problem Solvers Higher Retention Great Stakeholder Experience Strong Performance Results Engaged Employees Loyalty Prouder Employees Investment in Employees Source: Temkin Group

22. Mike Phillips • mphillips@cvent.com • 571-830-2149