3M Human Resources Measurement © 3M 2010. All Rights Reserved. Karen B. Paul, Ph.D. ([email protected])[email protected] Benjamin Schneider, Ph.D. ([email protected])[email protected].

3M Human Resources Measurement

© 3M 2010. All Rights Reserved.

Karen B. Paul, Ph.D. ([email protected])Benjamin Schneider, Ph.D. ([email protected])

Engagement: A Multiyear Affair

mailto:[email protected]

mailto:[email protected]


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Karen B. Paul, Ph.D.

Manager, HR Measurement3M Company

Background Responsible for creation and execution of:

Assessment and testing Competencies 360’s Organizational survey research and executive assessment

Presented research for: ASTD, HRPS, SIOP, APA and APS

Published in professional journals: Journal of Applied Psychology Training and Development

Author of chapter in: Handbook of Employee Selection Managing Human Resources for Environmental Sustainability

Ph.D. Industrial and Organizational Psychology

Bowling Green State University


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Senior Research Fellow, Valtera & Professor Emeritus,

University of MarylandPh.D. in Industrial and Social Psychology

University of Maryland

Benjamin Schneider, Ph.D.

Background Responsible for advising on consulting projects, writing research

papers, and working with clients. Special interests in organizational climate and culture, employee

engagement, service quality, linking employee survey data to corporate effectiveness, and the role of personality in organizational life.

Published nine books and 150+ professional journal articles and book chapters. The latest book (with W. Macey, K. Barbera, & S. Young is Employee Engagement: Tools for Analysis, Practice and Competitive Advantage (Wiley-Blackwell, 2009).

Taught at the University of Maryland for many years as well as Yale University, Michigan State University and for shorter periods of time at Bar-Ilan University (Israel; on a Fulbiright), and Dartmouth College.

Winner of several awards for his research including SHRM’s 2009 Michael R, Losey Award for his work on service quality.


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Little Bit of Backgroundon 3M and Valtera


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More Than 35 business UnitsOrganized Into Six Market-Leading Businesses

Consumer and Office Display and Graphics Electro and Communications Health Care Industrial and Transportation Safety, Security and Protection Services


6


AbAbrasives

BiBiotech

AcAcoustics

CeCeramics

AdAdhesives

DdDrug

Delivery

AmAdvancedMaterials

DiDisplay

AnAnalytical

DoDental &

Orthodontic Materials

AsApplicationSoftware

EcEnergy

Components

EmElectronicMaterials

FcFlexible

Converting & Packaging

FeFlexible

Electronics

FsFiltration,

Separation, Purification

FiFilms

ImImaging

FlFluoro-

materials

InInspection &

Measure-ment

IsIntegrated Systems Design

LmLight Mgmt

MdMedical

Data Mgmt

MeMetal Matrix Composites

MfMechanical Fasteners

MiMicrobial

Detection & Control

MoMolding

MrMicro-

replication

PePredictive

Engineering & Modeling

NtNano-

technology

NwNonwoven Materials

RpRadiation Processing

SeSensors

PoPorous

Materials & Membranes

PmPolymer

Melt Processing

WoWound Mgmt

VpVapor

Processing

SuSurface

Modification

SmSpecialty Materials

OpOpto-

electronics

PdParticle & Dispersion Processing

PrProcess

Design & Control

PpPrecision

Processing

TtTrack and

Trace

WeAccelerated Weathering

3M’s Technology Platforms


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SalesWorldwide.................................International (63% of total)........

EarningsNet income................................

R&D ExpendituresFor 2009................................... Total last 5 years...................

EmployeesWorldwide......................................... United States.................................

567 U.S. Patents Awarded

Year-End 20093M Facts

$23.1 billion$14.6 billion

$3.19 billion


74,83531,513


$3.19 billion


74,83531,513

Where are We?

Sell products in over 200 countries Operations in more than 65 countries 35 international companies with manufacturing

operations, 35 with laboratories In the United States, operations in 28 states 6700 researchers worldwide; 3,400 in the

United States

Contributions:

In 2009, donations of cash and products totaled more than $50 million in the U.S. alone


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3M Human Resources

HR partners withthe business to drivegrowth through people

GOVERNANCE HR principles Strategic HR oversight Policy development and adherence Compliance

BUSINESSHR MANAGERS

INFORMATIONSERVICES

Benefits Compensation Employee relations Employee services Measurement and assessment Mergers, acquisitions and transitions Talent acquisition Talent development Workforce planning and management

CENTERS OFEXPERTISE

3M Source 24/7 Information and transactions

HR Contact Center Resolution and referral services

Leadership team counsel HR strategy supporting business

strategy Human Capital plans

emphasizing identification and development of talent

Brokerage of resources required to meet business HR plans


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Grow the current core business

Complimentary acquisitions

International growth

Build new businesses

6. Design compensation and benefits plans to meet evolving business needs

1. Engage employees and strengthen employment brand

2. Enhance ability to acquire and retain the right workforce

3. Enable effective human capital planning and increased workforce productivity

4. Optimize HR administration including global web and call centers

5. Accelerate the development of talent

Engaged, Productive

and Diverse 3M Employees

3M Strategy Acceleration Through HR

Leadership and Expertise

3M Workforce and Organizational

Readiness

Operational Excellence and Productivity of

Global HR Services

Protect the Corporation

3M StrategiesHR Business

Critical Ys

HR VisionHR partners with the business to

drive growth through people.

HR MissionProvide workforce and organizational

solutions to accelerate strategy execution and drive

operational excellence.

HR Strategies

2010-2014 Global


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About Valtera

Valtera provides premier human capital consulting and technology solutions to organizations worldwide in the following areas: Surveys and Analytics, Employee Engagement, Leadership Assessment, Testing and Selection, and HR Audits and Legal Support.

Valtera was founded in 1977 and has been providing employee survey services globally since that time. Valtera’s long and successful history of providing employee surveys has been built on the basis of our consistently high standard of delivery for some of the world’s leading corporations. Valtera managed the international data warehousing and reporting for the Mayflower global survey consortium from 1992 to 2010 with 100% accuracy.

Valtera corporate leaders are recognized authorities in the field of organizational/industrial psychology and they are intimately involved in the execution of large-scale projects. Their recently published work on the organizational drivers of customer satisfaction was selected as the winner of the 2009 Journal of Service Research Best Article Award sponsored by IBM.

Valtera uses a fully integrated online survey platform to administer paper and web-based, multi-language global surveys for hundreds of thousands of participants in a single wave.

Beyond offices just outside of Chicago Valtera has offices in the Netherlands and the Czech Republic, and working partnership with firms across the world including firms in Europe, China and India.


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Everybody wants to have an engaged workforce because it can forge a path to competitive advantage.

Yet ask five different people to define engagement andyou’ll likely get five different answers ….


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What is Engagement?

It is all about alignment.

3M’s Definition

en●gage●ment (in gājd/ měnt)

“an individual’s sense of purpose and focused energy, evident to others in the display of personal initiative, effort and persistence directed toward organizational goals.”


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Engaged employees behave:

Persistence at difficult tasks Helping others Taking Initiative Going beyond expectations And so forthSatisfied employees behave:

Low absenteeism Low turnover Low substance abuse

Is Satisfaction the Same as Engagement?Behaviors

Engaged employees are satisfied too…

And demonstrate satisfaction behaviors as well as engagement behaviors

© 2006 Valtera Corporation. All Rights Reserved.

Why Should We Care?


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A Broader Business Case

True competitive advantage is indexed between MANY firms, not simply measured within ONE firm.



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Engagement – Even More Critical in a Tough Economic Climate

When the urgency and need are clear, employees deliver!

3M has learned strong leadership “engages employees” in tough economic situations and pulls us through faster than the competition


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The Conditions that Yield Engagement Attitudes and Behavior


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ConditionsForEngagement

EngagementAttitudes

EngagementBehaviors


OrganizationalOutcomes

The Engagement Model


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© 3M 2010. All Rights Reserved. © 2010 Valtera Corporation. All Rights Reserved.

How to Build Conditions for Engagement

Treat people fairly Accountability and Rewards – metrics, pay,

promotions, performance management Interpersonally – respect, warmth Procedurally – keep promises, involve people in

decision-making, have an operational rhythm, distribute work equitably

Pay attention to the seemingly mundane Technology Support Internal battles

Recognize and celebrate


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How Does Trust in Management Impact Engagement?


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Engagement

BottomLine Results

Trust

Work Group

Supervision

Leadership

Based on US 2009 Standard Opinion Survey Results & 2009 US Leadership Survey

Communication

Growth

Resource Allocation

Alignment

CustomerFocus

Recognition

Values

Responsibility

IntentionTo Stay

Innovation

Change

Loyalty

JobSatisfaction

CommitmentFeedback

PerformanceManagement

Total Compensation

Diversity

Safety*

Job Demands

Career Progress

Conditions for Engagement<50%

Favorable

50-80%Favorable

>=80%Favorable

Legend

Poor

Good

Excellent


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We know from our own research at 3M that this is the single best predictor of employee attitudes….

The first lens of how employees view the workplace

Data from 3M Poll

Trust in Management

YESNO

56

28

16

919

72

Division Management has a highlevel of personal integrity.

Division Management has a highlevel of personal integrity.

Division Management is goodat driving the changes

needed for growth.

Division Management is goodat driving the changes

needed for growth.

57%57%

16%16%

2000 3M Poll2000 3M Poll


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Engagement happens when people feel safe to take action on their own initiative

People feel safe when they trust their environment People trust their environment when they feel fairly treated

by it

The key is to create a culture of trust in organizations

Fairness Trust Feel Safe Engaged

Basic Building Blocks of Engagement


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* From Whitener, Brodt, Korsgaard & Werner (1998)

Dimensions of Managerial Trust

Managerial consistency Acting with integrity Sharing and delegation of control Openness of communication Demonstration of concern


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Achieving Employee EngagementWhat are We Doing?


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Engagement Objective

Improve employee engagement levels to drive organizational outcomes

Key Components Corporate-wide:

• Improve employees’ understanding of 3M’s vision, future and decision-making• Increase communication of business goals, plans and achievement• Involve employees to help them understand what is engagement and what is

the business case

Within Businesses:• Provide support to the Big B/Area/Staff Groups to take action on the concepts

communicated in and through the corporate-wide components of the strategy• Additional areas of focus to address identified gaps


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HRStrategy

Enga

ge E

mpl

oyee

s

How to make my workchallenging and meaningful

Align to the big 3M

Leadership responsibility to build the environment

HRSub-strategies

HR TacticsIn Support of Sub-strategies

2008-9 Strategy Summary Global Goal Tree (1 of 4)

Career paths project

Mentoring

Coaching

Job rotation

360

Connection to work / life benefits

Connecting engagement to employment brand

NEO

Linking with sustainability

Integrate innovation into the story

Built into leadership competencies

Emails from CEO

Imbedded in leadership programs (GM/MD; ALDP, etc)

Messaging of engagement as a leadership responsibility


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CorporateLevelIntervention

CountryLevelIntervention

Business UnitIntervention

Train HR WWBuilt Corporate Tools and Resources

Where Are We?

Got most of the pieces in place Differences in U.S. / international structure require

more attention


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Our communities, our world.Respect our social and physical environment around the world.

Driving a Growth CultureEngaging Every Employee to Serve Our Customers, Shareholders and Communities

Customers Employees Shareholders

Brand Employment Brand Shareholder Promise

Innovative products with superior quality, value and service

Acquire, retain, value and develop employees’ diverse

talents, initiative and leadership

Provide attractive returns through sustainable global growth

Customer loyalty and share growth

Employee engagement, mind share and productivity Growth in 3M stock


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Alignment of HR Practices

Succession Planning

Human Capital

Planning

Performance Appraisal

Consensus Review

Tier ReviewsAssessment

Development

Leadership Attributes


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Leadership Attributes

Thinks from outside in Drives innovation and growth Develops, teaches and engages others Makes courageous decisions Leads with energy, passion and urgency Lives 3M values

Engagement is essentially a leadership responsibility.


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Seeing Worldwide Improvement in Scores

Book on Employee Engagement Came Out Named by APQC as one of the Best for

Rewarding, Engagement, & Retaining Key Talent Profiled by SHRM, Conference Board and webinar with i4cp 2008 Named by CEO Magazine #1 Best Companies for Leaders Named by Fortune #16 Global Top Companies for Leaders Engagement Video Series for Supervisors & Managers Well-Received Blog In Place HR Vendor Conference on Engagement Employment Value Tool was Rolled Out Great things going on in the businesses and countries

2009 Engagement

Employment Brand

Key Messages:Driving 3M’s global leadershipInventing the future with technologySucceeding through collaborationCreating solutions to sustainability challengesDeveloping diverse talents, building careers


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Building a Stronger Brand

Employee Engagement

Customer Engagement

Share of Customer

Sales Revenue

Start Here


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Definitely in Social Media www.facebook.com/3MCareers.US

What’s Next Globally?

Sales, Lab/TS:

Facebook

Linked In

Twitter

Landing Pages

SEO Pay-Per-Click Campaigns


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Employee Engagement

A Green 3M Employee

Assistance Program

Community Giving A Healthier You

Taking Careof the

Environment

Taking Careof Others

Taking Careof Our

Communities

Taking Careof Yourself


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3M Poland Green Week Program15-19 June 2009Program Objectives: Building and enhancing 3M image

(Employment Brand) as a socially responsible company

Creating positive impact on the Employees Engagement and work atmosphere

Ecological education including 3M best practices

Increasing environmental awareness among the Employees

Joint program of CMPA, EHS and HR


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Monday to Friday ActivitiesMonday: Recycling Wednesday: Switch Off Friday: Make It Green Presentation of the film: The

Inconvenient Truth global warming documentary movie

Collect used paper, cans etc. to gather money in return and donate the money to local ZOO

Mailing – recycling!

Take back event – a small gift for employees

Contest „Green eco-photo” (awards: books, calendar with ecological advices), exhibition of best works

Clean your office (one hour desk cleaning)

Mailing – switch off!

Day with a car (bicycle, car sharing) – small awards for those who arrive first to work on bicycle

Seat trees, sow grass Bicycle race – options: For each km 3M pays 1 PLN and

donates the money to local ZOO Training bike on the site. Mailing – Green Office!

Tuesday: Save Thursday: Go On Foot Contest “Eco-film” (ecological films

recorded on mobile phones) – award the best film employees voting

Presentation of 3M ecological and sustainability projects

Calculate the energy you use! – Mailing

Quiz Eco-knowledge on the baseof 3M materials and mailing

Voting and selecting the best Eco-film Event “Exchange or forward”: bring your

old books or any products you are not going to use and exchange for other products you might use.

Mailing – go on foot. Economic driving.


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3M Thailand


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"Green Touch Campaign" to Enhance the Employee Engagement For Sustainability

As one part of Green Touch campaign, Employees' Children Environmental Protection Painting Contest was launched from July to September. Over 60 lovely kids' paintings were collected. Finally 19 paintings won the awards thru online voting and some of them were selected for making 3M China's New Year eCard


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Employee Engagement and Sustainability 2010Need to Be Doing So Much More… Engagement video for supervisors

and managers (Top Ten Things You Should Know about Sustainability)

Video contest Leadership survey roll-out

on January 27th


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A Green 3M Employee

Assistance Program

Community Giving A Healthier You

Taking Careof the

Environment

Taking Careof Others

Taking Careof Our

Communities

Taking Careof Yourself

Employee Engagement


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Making a Difference: Healthy Living Resources

A diversified four-part program designed to:

Reduce the demand for costly medical interventionsand minimize employee productivity loss

Help employees better manage their lives physically, socially and emotionally

Other employee objectives:Engagement | Recruitment | Enhance organizational commitment

Lower our long-term health care costs and enhance employee productivity


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Where We’ve Been: Key Accomplishments to Date

17,899 employees participated and received $100 incentive

Health plan administrators have reached out to at-risk employees and offered coaching classes and additional programs

August 2008 Program Launch

December 2008 – March 2009 Health Screenings and Assessments


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Engagement:Aligning Individual’s Purpose and Energy with Organizational Goals

Pride

in 3M

Brand ambassador Community partner Social responsibility and sustainability Family appreciation events Media coverage External recognition and awards

Career Fulfillment

Performance oriented company Challenge and growth Career advancement and broadening Personal career development Effective supervisor and peer relationships

Regular and Open Communication

Basic Employee Needs

Safe working conditions Equitable compensation and benefits Ethical business practices HR principles 3M values

Employee Engagement: Key Strategy to Growth, Innovation and Retention

Active visible leadership is needed to promote stronger levels of engagement.


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Engagement as a Leadership Responsibility


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Fundamentals of engagement are universal

The desire for meaning and purpose in the workplace knows no borders

How you capitalize on the fundamentals is local

People have needs Organizations have needs How you align these 2 facts can produce

engagement and financial success but is context specific

Global vs. Local Debate

“After all, results from their recent survey showed that 3M Mexico employees boast a 95 percent favorability rating. That feedback”, according to Shivitz, “is the best indicator of future financial success.”

Ed Shivitz,Managing Director, 3M Mexico

Stemwinder April 23, 2007


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Engagement

EnthusiasticWork Climate

Pursue Development

Remain at 3M

Adapt to New Ways

Take on New Roles & Responsibilities

Recommend 3M

Excited About Contribution

Best Employer

2009 Best

Best Placesto Work Spain

2008 Best 3M Czech Republic


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Quick Hits You Can Do

Focus on the customer Read a book or journal article together and discuss Random lunches Buy 1001 Ways to Energize Employees by Bob Nelson

Engagement isn’t just recognition but it is a small start in the right direction.


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Innovation and Engagement(What’s the relationship?)


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Three Work Areas: With Innovation at the Core

Sweet SpotCulture of Innovation

Engagement

Employment Brand

Sustainability

Perception of your company In the market place and the Value our employees derive

from working here

“an individual’s sense of purpose and focused energy, evident to others in the display of personal initiative, effort and persistence directed toward organizational goals.”

Triple bottom line: People, Planet and Profit

Social responsibility Environmental sensitivity Economic viability


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Submit Your Ideas for Products


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Gary Hamel The Future of Management

Dramatically accelerating the pace of strategic renewal in organizations large and small

Making innovation everyone’s job, every day Creating a highly engaging work environment that inspires

employees to give the very best of themselves

(p.40-41)

Formidable Challenges that Confront Companies in this New Century


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We Know From Our Own Research

Those 3M business labs that are more “engaged” have a more positive view of Innovation and 2 years later were more profitable

(r=.56 Innovation and Engagement)


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How can we do better?William L. McKnight

3M Human Resources Measurement © 3M 2010. All Rights Reserved. Karen B. Paul, Ph.D. ([email protected])[email protected] Benjamin Schneider, Ph.D. ([email protected])[email protected].

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