1 1 From Employee Engagement to Employee Effectiveness
2
Telecom Challenge….
>> A dynamic, competitive, growing industry...
>> High Employee intake….
>> Attracts Top Talent…
OUR CHALLENGE
Engagement Effectiveness Productivity
3
Bihar Transformation Story…….MAGIC!!
High Productivity, Internally Benchmarked :
• High Subscribers / Employee• Low Personnel Cost as a % of Revenue• High Revenue/ Employee
Employee Passion, Energy & Commitment
Dec 2005 Dec 2006 March 2007
Subscriber Base
6,11,307 18,30,030 23,02,305
Net Adds pm 62,554 1,50,002 2,51,053
Began Operations in Jan’05
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Employee Engagement – What is it?
Engagement is the extent to which employees commit to something or someone in their organization, how hard they work, and how long they stay as a result of that commitment
Rational CommitmentThe extent to which
employees believe that managers, teams, or
organizations have their self-interest in mind
(financial, developmental, or professional)
Rational CommitmentThe extent to which
employees believe that managers, teams, or
organizations have their self-interest in mind
(financial, developmental, or professional)
Emotional CommitmentThe extent to which
employees value, enjoy, & believe in their jobs, managers, teams, or
organizations.
Emotional CommitmentThe extent to which
employees value, enjoy, & believe in their jobs, managers, teams, or
organizations.
Two Commitment “Types”
EMPLOYEE ENGAGEMENT
DRIVERS
Qualities of Direct Manager
Qualities of Direct Manager
Qualities of senior leadership
Qualities of senior leadership
Compensation plan
Compensation plan
Benefits planBenefits plan
Employee Engagement Levers
Discretionary Effort
Discretionary Effort
Intent to StayIntent to Stay
PerformancePerformance
RetentionRetention
Outputs of Commitment
Employee willingness to go “above and beyond” the call of duty
Employee desire to stay with the organization
Organizational Benefits of
Commitment
On-boardingOn-boarding
Day-to-day workDay-to-day work
Learning and developmentLearning and development
Organizational culture
Organizational culture
Org
aniza
tion
Stra
tegy
5
From Discretionary Effort to Effectiveness
Engaged Employee High Productivity
Do Right Things
Have A Shared Purpose
Ensure Synergy
High Effectiveness
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Discretionary Effort to Effectiveness
Right things Shared Purpose Synergy
LINKAGE TO BUSINESS STRATEGY
• Link to business strategy
• Role Clarity
• Leader vs. Manager
Focu
sDe
scrip
tion
Airt
el C
ase
Stud
y
• Team Alignment. • Effective Communication
• Energy of a compelling vision
• Empowerment
Think Fresh Deliver More
Objective Setting
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Critical Success Factors
EE to link to key business drivers : our “Recipe for Success”
Design meaningful & challenging work that have a clear line of sight to business results
Infuse flexibility, autonomy, & accountability into work processes & into the overall culture of the organization
Increase the business literacy of the workforce to help employees better understand how their work contributes to the success of the organization
99
Think Fresh, Deliver More…
We at Airtel always think in fresh & innovative ways about the needs of our customers. We deliver what we promise & go out of our way to delight the customer with a little bit more.
Team Rooms & Surveys
Employee Communication Forums
Plus 1 Initiative to delight the customer, fresh ideas
Brand Promise communicated through Brand Essence Workshops
Leading Industry Innovation through user friendly products & services
1010
Performance Management System
Employee Name / Code Employee
Code
Designation / Department Business Unit /
Circle
Key Objectives / Strategies /
Projects Measures of Completion
Area KPI 80% 90% 100% Breakfree Weightage
Financials
Customer
Process
People & Org Development
Strategy to Aligned action: KRA Format
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Annual Performance Bonus
Employee Compensati
on
Fixed Component
**Variable Component
Individual Performa
nce
Performance of
Business
Performance of Unit
Proportion reduces with
seniority of Band
Proportion increases with
seniority of Band
Parameter
40%
40%
20%
Individual Performance
Unit Performance Business/Company Performance
UC / Band 3
50%
50%
Nil
Band 2 Band 1
60%
40%
Band F
70%
Nil
30%
Nil
Payout basis individual performance Rating(say X % of the applicable amount)
Details of determining payout depicted in next slide(say Y % of the applicable amount)
Details of determining payout depicted in next slide(say Z % of the applicable amount)
Total APB Payout %
• X% + Y% + Z%