Managing a MultiGenerational Workforce

HR Solutions, Inc. and City University of Seattle Presents

The Linkage Between Employee Engagement, Diversity & Satisfaction

71st NWHRA Annual Conference and Trade Show

Murat Philippe

Principal ConsultantOctober 2, 2009

Timothy Sprake

HR Director

Workshop Learning Objectives

•Understand the importance and strategic impact of conducting an internal analysis of employee engagement that establishes the foundation for change to a culture where employees are genuinely engaged in the success of the organizations they support.

•Explore the different measurements of employee engagement and why these measures are more effective at achieving organizational success.

• Understand that an engagement survey is only one of the tools available that help organizations identify the need for change and improvement. More importantly participants will understand that an organizations willingness and ability to actively pursue their current reality on multiple fronts and through multiple methods is the primary path to improvement and ultimately greatness.

•Learn about the generational differences in workplace concerns that impact Employee Engagement levels. (This will have be done by HR Solutions).

•Understand the importance of communications and taking action once survey results are available. An awareness of the key principles of change management and their critical importance will be provided.

•Implement action plans to assure success of any change initiative and in particular one that impacts the organizations most important asset is its employees and their level of engagement.

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What is a Magnetic Culture™ in the Workplace?Redefining Employee Satisfaction

• Defining Employee Engagement.

• Outcomes Driven by Employee Engagement.

• The Numbers Behind the Story of Engagement & Diversity.

• Key Drivers.

• The Top Ten Tool Kit.

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Satisfaction versus Engagement

• “What do I get”

• Employees more focused on Pay Satisfaction, Benefits Satisfaction, Physical Working Conditions, and other factors that satisfy.

• “What you give back”

• Employees more emotional, feeling of ownership, involvement in their job, passion, safe culture, and having meaning and purpose as an employee.

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What is a Magnetic Culture™ in the Workplace?

• A Magnetic Culture™ is one that draws 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.

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Defining Employee Engagement

• Engaged Employees are:

• Motivated.• Committed.• Very involved in their work.• An inspiration for others.• Supportive of co-workers.• Oriented to providing good customer service.• Loyal.• Optimistic about their work goals.

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Outcomes Influenced By Employee Engagement

• The following business outcomes result from successful implementation of Employee Engagement programs:

• Top Employer Ranking.

• Stellar Productivity and Financial Success.

• Outstanding Performance from Employees.

• A Magnetic Culture™ is established at your organization.

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Reputation

Customer Satisfaction

Absenteeism

Retention

Outcomes Influenced By Employee Engagement

EmployeeEngagement

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Employee Engagement – The Numbers Behind the Story

• Three Types of Employees1:

1. ENGAGED• Highly engaged and committed to the mission, vision and

values of the organization.

2. AMBIVALENT• They are “checked out”, lack of spirit and vivacity, they

feel unappreciated and insignificant.

3. ACTIVELY DISENGAGED• Negative energy, they focus on problems.

1Source: HR Solutions National Study

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• Percentage of Engaged Employees in the workplace1:

11Source: Source: HR Solutions National StudyHR Solutions National Study

64%

17% 19%

Engaged

Ambivalent

Actively Disengaged

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• Estimated costs of turnover in the United States economy: $5 trillion per year1.

• The cost of disengagement: $300 billion2.

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


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Gender Quiz

My job gives me the opportunity to do the things I do best.

This organization provides me the opportunity to improve my professional knowledge.

Senior Management of this organization is concerned about the employees.

I have an opportunity to participate in decisions made by my supervisor that affect my work environment.

All in all, I am satisfied with my job.

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Changing Priorities

1

2

3

4

5

6

<25 26-34 35-39 40-54 55+

Opportunity forTraining

Careeradvancement

Supervision

Pay

Benefits

Policies andprocedures

Age Group

Impo

rtan

ce (

6=M

ost

Impo

rtan

t)

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Employee Engagement & Diversity Satisfaction

0%

20%

40%

60%

80%

100%

StronglyDisagree

Neither StronglyAgree

Job SatDiversity Sat

% F

avor

able

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• Mature Generation—A Different Perspective on Work.

• 47% increase in age 55+ workers by 20101.• 80% of Baby Boomers plan to work at least part-time

during retirement1.• 69% of age 45+ plan to work “well beyond age 65”2.

• Characteristics3

• Trust for authority; optimal in hierarchical structure.• Compliant to organizational practices/policies.• Team players.• Long tenure at single company.• Different appreciation characteristics: Value benefits programs, role within the

organization, and recognition.• Less value assigned to pay levels (not pay fairness).

• The older generation “lives to work” whereas the younger population “works to live.”

1 Source AARP,2 Source J. Walter Thompson, 20043 Source – The Concours Group

Connecting the Generations

Veteran Baby Boomers Generation Xers Generation Y Millenials

Outlook Practical Optimistic Skeptical Hopeful

Work Ethic Dedicated Driven Balanced Ambitious

View of Authority

Respectful Love/hate Unimpressed Relaxed, polite

Leadership by Hierarchy Consensus Competence Collaboration

Relationships Personal Sacrifice Personal gratification Reluctant to commit Loyal

Perspective Civic Team Self Civic

Influencing Messages

• Make do or do without

• Stay in line• Sacrifice• Be heroic• Consider the

common good

• Be anything you want

• Change the world• Work well with

others• Live up to

expectation• Duck and cover

• Don’t count on it• Remember –

heroes…aren’t• Get real• Survive – stayin’ alive• Ask “why?”

• Be smart– you are special

• Leave no one behind

• Connect 24/7• Achieve now!• Serve your

community

Source: Willa Starks, Parkview Health: The Cross Generational Workplace

Generational Retention Factors

Veterans Baby Boomers

Generation Xers

Generation Y Millenials

Clear direction

Professional standing/job status

Stability and security

Recognition

Company reputation

Collaboration

Flexibility

Development

Fun

Work & life balance

Positive environment

Recognition


Generational Communication PreferencesVeterans Baby Boomers Generation Xers Generation Y

Millenials

Logical, linear

History, tradition

Long term goals

Good grammar

Conservative

Personable

Two-way

Vision, mission

Making a difference

Information = reward

Direct, straightforward

No buzzwords

Results-oriented

Include benefits

Electronic

Positive

Collaborative

Motivational

Coach to goals

Digital


Generational Communication Turn-Offs

Veterans Baby Boomers Generation Xers

Generation Y Millenials

Profanity

Slang

Disorganization

Disrespect for experience

Brusqueness

Not showing interest

One-upmanship

Politically incorrectness

Schmoozing

Using time poorly

Flashiness

Corporate-speak

Incompetence

Bureaucracy

Cynicism

Sarcasm

Unfairness

Condescension


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CityU Logo here

Six Item Highlights from Data Analysis

• There is good communication between members of my work group. (80% Favorable, Education Norm: 67, National Norm: 68, BIC Norm: 80)

• My supervisor is friendly and helpful. (83% Favorable, Education Norm: 79, National Norm: 78, BIC Norm: 87)

• The person/persons doing my performance appraisal is/are aware of my work. (75% Favorable, National Norm: 69, BIC Norm: 79)

• My immediate manager’s actions are consistent with what she/she communicates. (74% Favorable, National Norm: 69, BIC Norm: 78)

• I can explain the organization’s strategy/mission to my family, friends and coworkers. (76% Favorable, National Norm: 69, BIC Norm: 84)

• I feel free to express new ideas and work methods which I feel will help this organization. (67% Favorable, National Norm: 55, BIC Norm: 81)

BIC – Best in Class

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CityU of Seattle’s Employee Engagement Levels

Ambivalent, 66% (59% Norm)

Actively Disengaged, 19%

(16% Norm)

Actively Engaged, 14% (25% Norm)

A Magnetic Culture™ is one that draws talented employees to the workplace, empowers them, 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.

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Per

cent

F

avor

able

Best-in-Class – 90th Percentile in our database.

Three Dimension Opportunities from Data Analysis

Ancillary Highlights

In addition, when closing each feedback session, the facilitator made a point to ask what employees liked most about their jobs and working at CityUniversity of Seattle. The most frequent responses included the following types of comments:

Coworkers Benefits Empowerment President Variety of work Flexibility Supervisors Friendly and challenging environment

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Demographic Dimension Profile Report

Dimension Number Responding

Percent Favorable 0% 20% 40% 60% 80% 100%

Percent Favorable

Compared to rest

Percent Unfavorable

1. Overall Job Satisfaction

City University of Seattle 2008 EOS - Total 187 65% 12%

National Norm 76%

Male 52 60% -8% 14%

Female 133 67% 8% 12%

3. Benefits Satisfaction


National Norm 61%

Male 52 44% -16% * 21%

Female 133 61% 16% * 17%

5. Communication


National Norm 66%

Male 52 48% -10% ** 24%

Female 133 59% 10% ** 20%

8. Training & Development


National Norm 68%

Male 52 44% -3% 24%

Female 133 47% 3% 26%

Male vs. Female

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Percent Favorable

Compared to rest

Percent Unfavorable



National Norm 76%

25 and Under 10 92% 29% ** 0%

26 - 34 31 74% 11% * 8%

35 - 39 15 69% 4% 9%

40 - 54 65 57% -12% ** 16%

55 and Over 64 64% -2% 13%



National Norm 68%

25 and Under 10 77% 32% ** 7%

26 - 34 31 56% 12% * 19%

35 - 39 15 29% -19% ** 48%

40 - 54 65 37% -14% ** 31%

55 and Over 64 49% 5% * 19%

AGE

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Percent Favorable

Compared to rest

Percent Unfavorable



National Norm 76%

Less than one year 34 78% 16% ** 8%

1-3 years 80 60% -9% * 14%

4-6 years 34 65% -1% 14%

7-10 years 15 59% -7% * 19%

More than ten years 22 69% 5% * 6%



National Norm 68%

Less than one year 34 64% 23% ** 19%

1-3 years 80 46% -1% * 30%

4-6 years 34 33% -15% * 28%

7-10 years 15 38% -9% 18%

More than ten years 22 44% -3% 17%

Years of Service

Training and Development

Feedback sessions included the following types of comments:

“There is no training or development. Orientation to company is great. You learn about the benefits. The training is fine when you first come here. There are people here that help you out. Once you are trained that is it. It is pretty much it.” Nine agreed.

“I don’t feel organization is committed to Training & Development. I got some in my own department; but there is no institutional commitment to it.” [10 of 11 Managers agreed]

• Job-role specific department training• IT Training,

• Seminars,• MS Excel training, • Phone etiquette/ transferring phone calls.

• SharePoint• Leadership Development.

• How to hold people accountable.• How to deal with underperformers.

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Key Drivers

1. Promotions/Career Advancement

2. Strategy/Mission

3. Satisfaction with the Work

4. Customer Service

5. Supervisory Promotion Teamwork

6. Pay Satisfaction

7. Coworker Performance/Cooperation

8. Concern for Employees

9. Job Stress

10. Benefits Satisfaction

Top 10 Influencers on Employees’ Overall Job Satisfaction/Engagement

Determination of key drivers based on survey responses in ourNational Normative Database, representing over

2.2 million participants and 2,100 organizations.

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Key Drivers of Employee Engagement

Action Planning in ActionPro® Action Plan Preview

ActionPro® / Action Planning Process

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Action Planning to Lowest Organizational Level

Meet with your

Supervisor to discuss

Department

Opportunities

Global Opportunities for

Senior Management

Develop Action Plan

with ActionPro®

Submit Action Plan to

Supervisor & wait for approval

Implement &

Communicate Action

Plan

APulse: Measure Results

Discuss/adjust Action Plan with

staff

Action Planning Process

Action Planning in 7 Simple Steps

1. ROADMAP to EMPLOYEE ENGAGEMENT REVIEW

2. INITIAL POST-SURVEY COMMUNICATION TO ALL EMPLOYEES

3. POST-SURVEY COMMUNICATION AMONG ALL MANAGERS

4. DEVELOP AND SAVE INITIAL ACTION PLANS IN ACTIONPRO®

5. MEET WITH YOUR EMPLOYEES TO DISCUSS THE ACTION PLAN

6. SUBMIT, COMMUNICATE, AND IMPLEMENT ACTION PLANS

7. MEASURE THE RESULTS OF THE ACTION PLAN

Senio

r M

anagem

ent

All

Managem

ent

THIS ONE’S FOR YOU RYAN!

Go ahead and delete!

©2007 HR Solutions, Inc. 37

The Top Ten Ways To Create a Magnetic Culture™:

A Best Practices Tool Kit

1. Provide career development opportunities.2. Competitive salary.3. Flexible work schedules.4. Optimal day-to-day work life.5. Provide top-notch customer service.6. Ensure company mission is clear.7. Retain best supervisors and managers.8. Strong senior management.9. Maintain positive organizational culture.10. Generous benefits.

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1. Career Development Opportunities.

• According to SHRM study*, this is the single most important factor to keep employees engaged.

• Career Planning

• Skill preparation

• Organizational political savvy.

• Coach with passion / Motivate employees.

• Ongoing educational opportunities.

• Mentors and Role Models.*Source: SHRM 2006 US Job Retention Poll Findings

Magnetic Culture™ Best Practices Tool Kit

©2009HR Solutions, Inc. 39


2. Competitive Salary.

• Better compensation elsewhere is the top reason employees chose to leave their jobs in 2006.1

• Ongoing assessment of comparable jobs/salaries is crucial to engagement.

• Learn from colleagues / competitors.

• Online pay comparison tools.

1 2006 SHRM US Job Retention Poll Findings

©2007 HR Solutions, Inc. 40


3. Flexible Work Schedules.• Alternate Arrival/Departure times.• Compressed Work Week.• Telecommuting.

• Redefine Retirement/Flexible Work Schedules - 76% of baby boomers want a gradual retirement. (Source: Ceridian)

• More flextime and flexible work schedules.• Part-time and job sharing.• Consider shorter shifts.• Working from home.• Consulting (as a start).• Temp work (as a start).

• Uniguard Insurance Group: Over 60% of its employees take part in flextime program. Turnover decreased 5%; overtime decreased 5%.*

• Cubist Pharmaceuticals: Employee Opinion Survey administered by HR Solutions, Inc. in 2005. Employees responded 90% favorably to, “It is important to me that this organization consider and support flexible scheduling arrangements or flexible work options where possible.”

* Washington State University Cooperative Extension Program and the Commuter Challenge. “Recent Case Studies.” 20 July 2006, http://www.teleworkarizona.com/pdf/wficasestudy.pdf

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4. Day-to-day work.

• Clear definition of employee role.

• Constant, relevant communication.

• Fairness at work.

• Adequate support.

• Variety of tasks.

• Easily obtainable information.


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5. Customer Service.

• Linkage of customer and employee satisfaction to management and employee compensation / bonuses.

• Norman Regional Hospital: Clear explanations to each patient of what they can expect:

• Estimated wait time.• Where the patient will be going next.• Who will take them there.• What will happen once they arrive.1

• Successful Transfer of the Branding to the External Arena.

1 Norman Regional Hospital, Creating a Magnetic Culture Customer Service Brochure 2006

Magnetic Culture™ Best Practice Tool Kit

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6. Clearly Communicated Company Strategy / Mission.

• Host an Organizational Mission Workshop.• Dispel misperceptions.• Post mission statement clearly in high-traffic areas.• Clear, concise, continuous communication.• Employee Congress—multi-faceted communication.

• HR Solutions’ Best-in-Class Database: proven correlation between scores on Overall Job Satisfaction and Communication.

• Similar correlation with HR Solutions’ Most Improved Clients.


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7. Retain Best Supervisors / Managers.

• Accountability/Acceptance of responsibility.• Imbed belief (Engagement & Diversity) at the manager level.• Honesty/Trust.• Timeliness of performance evaluation.• Effectively communicate organizational strategy and mission.• Appropriately handle conflicts.• Care about employees.• Clearly communicate expectations.• Reduce communication gap between employees and managers.

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7. Retain Best Supervisors / Managers (cont’d)

• Become educated on how to best maximize the value of mature workers

• Understand the generational differences in your workforce.• De-bunk the myths.• More seasoned workers cannot effectively use

technology – inaccurate.• Higher costs/more absences due to sickness and health

problems – simply not true.

• Utilize their generational strengths to benefit the organization.

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7. Retain Best Supervisors/Managers (cont’d.)

“My supervisor focuses on my strengths or positive characteristics.”

% Favorable response

4%

23%

77%

0%

20%

40%

60%

80%

100%

Engaged NotEngaged

ActivelyDisenaged

**Source: Source: The Gallup Management JournalThe Gallup Management Journal,,


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8. Strong Senior Management.• Shows concern for diversity

• Communicate the importance of diversity throughout the organization.• Emphasize how diversity is linked to business goals.• Provide resources• Model through their actions

• Open to new ideas.• Committed to Employee Development as a priority.• Be Proactive – Manage the Program.• Strategy selection & implementation.

• Personal characteristics.• How strong or weak the Senior Manager is on: honesty, integrity,

accountability and passion to succeed.

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0

10

20

30

40

50

60

70

80

90

100

0-10 10-20 20-30 30-40 40-50 50-60 60-70 70-80 80-100

% Favorable Score For Perceived Visibility

% F

avo

rab

le S

co

re F

or

Perc

eiv

ed

Co

ncern

Survey item on perceived visibility: "Senior managers frequently visit my department."

Survey item on perceived concern: "Senior management of this organization isconcerned about the employees."

8. Strong Senior Management (con’t.)Senior Manager Visibility


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9. Maintain Positive Organizational Culture.• Old school → Wait and see, then adapt.

• New school → Anticipate change, stay ahead of the curve and ahead of the competition.

• Human Resources Policies Supporting the Employee / Customer Interface.

• Use the coworker satisfaction!• “How would you characterize your interaction with your coworkers?*”

• 86% of engaged employees said their interactions with coworkers were always positive or mostly positive.

• 72% of not engaged employees said their interactions with coworkers were always positive or mostly positive.

• 45% of actively disengaged employees said their interactions with coworkers were always positive or mostly positive.

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9. Positive Organizational Culture (cont’d.)

• Community involvement.

• Branded communication.

• Build flexibility into the organization.

• Success/Reputation of the organization.

• Innovation.

• Customer-focused.

• Diversity.


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10. Compensation Plans/Benefits Plans.

• Critically important tool to engagement, due to the fact that these are the most tangible job attributes. A ‘talent attractor’.

• Assurance of fair wage rates & rewards.• Both internal & external equity.• Strong impact on employees’ intent to stay versus discretionary effort.• “You can’t buy much effort.”• Competitive salary for mature workers compared to younger workforce.• Some organizations instituting “longevity adjustments.”

• Brand your benefits.

• Pay and rewards-related communication.• Determine your goals in implementing an employee recognition program.• Informal and Formal Recognition Programs.


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Key Retention Factors & Best Practices

• Redesign Benefits Packages • Restructuring pension plans.• Maintain full benefits for mature workers who switch to part-time.• Health benefits packages to fit the age of the workers.• Provide child and elder care benefits.

• “Create the new labor source”; consider additional training to ease the transition to a new career for a mature worker.

• Integrate diversity training with other types (e.g. employee orientation, team building, leadership, management development, performance evaluation, career development, and customer training)

• Consider rehiring former-employee retirees

• Restructure job content to deemphasize physical work and replace it with knowledge work, in order to tap into the strength and experience of mature workers.

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Related Factor: Satisfaction with Diversity in the Workplace

Employee Opinion Survey ItemsPearson

Correlation

OUTCOME VARIABLE: Overall Job Satisfaction 1.00

Diverse customers (differences in race, gender, age, religion, sexual orientation, etc.) are treated fairly at this organization.

0.42

Diverse employees are treated fairly with regard to their career advancement at this organization.

0.41

Diverse employees (differences in race, gender, age, religion, sexual orientation, etc.) are treated fairly at this organization.

0.40


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Creating a Magnetic Culture™ in the Workplace

• A Magnetic Culture™ and increased retention result from engaged employees.

• The implementation of best practices can increase the employee engagement at your workplace. Learn from others.

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Employee Engagement & Diversity Satisfaction

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87

0

10

20

30

40

50

60

70

80

90

100

% F

avora

ble

Q80: All in all, I am satisfiedwith my job.

Very Dissatisfiedon DiversityVery Satisfied onDiversity

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Creating a Magnetic Culture™ in the Workplace

The kind of commitment I find among the best performers across virtually every field is a single-minded passion for what they do, an unwavering desire for excellence in the way they think and the way they work. Genuine confidence is what launches you out of bed in the morning, and through your day with a spring in your step.

Jim Collins

Source: Good to Great: Why Some Companies Make the Leap... and Others Don't, Page: 87

October 2, 2007 57

Questions / Comments

Thank You!

Managing a MultiGenerational Workforce

Career

employee satisfaction

engagement survey

definingemployee engagement

level of engagement

story of engagement

talented employees

types of employees

pay satisfaction