Successful Employee Engagement Strategies · 2016. 1. 13. · Disengaged: Those who score low on all three aspects of sustainable engagement Source: Towers Watson 2014 Global Workforce

© 2015 Towers Watson. All rights reserved.towerswatson.com

Successful Employee Engagement Strategies

Employee engagement in Korean context

Kevin KimTalent and Rewards ConsultingTowers Watson

2nd April 2015


Evolution of Engagement

2

Committed

Engaged

Satisfied

SustainablyEngaged

Wage earners

Satisfaction itself

Retention strategy

Value creators

Context &performance

Talent mgmt.strategy

Reactive Proactive

Engaged

Belief in goals and objectives

Emotional connection

Willingness to give extra effort for success

Sustaining the energy (physical)

Team effectiveness (social)

Feelings of accomplishment (mental)

Free from obstacles to succeed at work

Resources to get the job done

Ability to meet work challenges effectively

Enabled

Energized


The power of three Es

3

<Exponential Growth with three Es>

3 t

ime

s

Low Engagement

9.9%14.3%

27.4%

High Engagement w/o

Enablement and/or Energy

High Engagement, Enablement, and Energy

OperatingMargin byGroup

<High Energy, High Engagement>

40

60

80

100

79

Yr-1 Yr-2

69

Yr-1 Yr-2En

ga

ge

me

nt

Sc

ore

<Better Enablement, Greater Profit>

LowEnablement

HighEnablement

Low

High

Net Profit Margin

2.6%

6.9%

7.3%

11.4%83

78

Source: <The Power of Three: Taking Engagement to New Heights>, Towers Watson, 2015

Engagement

LowWell-being

HighWell-being


Sustainable Engagement segments

4

Highly Engaged: Those who score high on all three aspects of sustainable engagement

Unsupported: Those who are traditionally engaged, but lack enablement and/or energy

Detached: Those who feel enabled and/or energized, but lack a sense of traditional engagement

Disengaged: Those who score low on all three aspects of sustainable engagement

Source: Towers Watson 2014 Global Workforce Study — Global & Korea results


Not willing to leave and not engaged…

5

Q) Likely to leave organization within two years?

39%

24%

33%

18%

20%

9%

18%

10%

36%

44%

33%

30%

30%

17%

20%

17%

25%

32%

34%

52%

50%

74%

61%

73%

Agree Mixed Disagree

(Global)

Engagement Profile(Korea)

HighlyEngaged

Unsupported

Detached

Disengaged

Korea

Global

Korea

Global

Korea

Global

Korea

Global



Motivation is a tricky thing

6


Retirement anxiety

7

19%

27%

28%

42%

20대

30대

40대

50대+

My organization’s retirement benefits meet my needs.

Korea Avg.

30%

전세계평균

46%

33%

42%

34%

41%

20대

30대

40대

50대+

Over the last 3 years, the age at which I plan to retire changed (a little / much later…)

Korea Avg. 38%

45%

49%

51%

50%

20대

30대

40대

50대+

Employees in positions above me are choosing not to retire, reducing my options for advancement

Korea Avg.

49%

Source: Towers Watson 2012 Global Workforce Study — Korea results

22%

21%

28%

40%

20대

30대

40대

50대+

I am confident I would have enough money to live comfortably 15 years into retirement

Korea Avg.

28%

Global Avg.

45%

Global Avg.

36%

Global Avg.

38%

50~

40~49

30~39

20~29

50~

40~49

30~39

20~29

50~

40~49

30~39

20~29

50~

40~49

30~39

20~29

AgeGroup

AgeGroup

AgeGroup

AgeGroup


Key drivers of sustainable engagement in Korea

8

1 Leadership

2Goals &

Objectives

3Workload &

Work-Life

4 Company Image

5 Communication

Effective at growing the business

Sincere interest in employees’ well-being

Behaves consistently with organization’s core values

Confidence in job done by leadership

Good understanding of organization’s business goals and steps needed to reach those goals

Understanding of how job contributes to the organization achieving its business goals

Healthy balance between work and personal life

Work arrangements are flexible

Enough employees in work group to get job done right

Amount of work required is reasonable

Organization highly regarded by general public

Organization conducts its business with honesty and integrity

Organization helps employees understand the business, current performance, and educates about organization’s culture and values

Communicates to employees about how their actions affect the customer



Key Drivers of Attraction and Retention (Korea vs. Global)

9

Limiting work-related stress 1 Base salary

Base salary 2 Career opportunities

Relationship with supervisor 3 Trust in leadership

Flexibility or choice in benefit 4 Job security

Retirement benefits 5 Length of commute

Physical work environment 6 Relationship with supervisor

Length of commute 7 Limiting stress from work

Job security 1 Base salary

Base salary 2 Job security

Reputation (good employer) 3 Career opportunities

Vision/Mission/Values 4 L&D opportunities

Flexibility or choice in benefit 5 Challenging work

Length of commute 6 Reputation (good employer)

Career opportunities 7 Paid time-off (vacation)

What attracts

people to join

the company…

(attraction drivers)

What keeps

employees from

leaving…

(retention drivers)



Attraction drivers – more sensitive to hygiene factors

10

56%

31%

24%

13% 14%18%

38%

20%

14%

28%31%

35%

Job security Health care andwellness benefits

Organization'sfinancial

performance

Challenging work Opportunities tolearn new skills

Opportunities toadvance in my

career

Korea Global

Korea > Global Korea < Global

Q. Please select the top five most important reasons why you joined your current organization



Retention drivers – stress management is key

11Source: Towers Watson 2012 Global Workforce Study — Global & Korea results

37%

27% 26%

14%10%

30%

25%

18% 19%22%

17%

40%

Work-relatedstress

Retirementbenefits

Physical workenvironment

Time required tocommute to work

Ability ofcoworkers

Opportunities toadvance in my

career

Korea Global

Q. Please select the top five most important reasons why you leave your current organization

Korea > Global Korea < Global


Leadership is the number-one driver, but…

I have the trust & confidence

in the job being done by the

senior leadership of my

organization37%

Senior management is doing a

good job of developing future

leaders at my organization24%

Senior management at my

organization has a sincere

interest in employees’ well-

being31%

Senior management is doing a

good job of growing the

business at my organization33%#1 Leadership is

the number-one

driver of sustainable

engagement, however,

employees view this

driver as…

12Source: Towers Watson 2014 Global Workforce Study — Korea results


Engagement and leadership are mutually-reinforcing

13

Senior leaders

are effective…

Supervisor is

effective…

8%

23%

35%

72%

14%

21%

30%

17%

22%

29%

18%

7%

56%

29%

17%

3%

Highly Engaged Unsupported Detached Disengaged

Engagement Profile

Source: Towers Watson 2014 Global Workforce Study — Global results


EVP and engagement go hand in hand

14

70%

74%

70% 70%

48%

40% 41%43%

35%

28%

25%

35%

29%

16%

12%13%

My organization has a formalemployee value proposition.

My organization does a good jobliving up to the EVP.

My organization has a reputationfor providing a good EVP

My organization does a good jobaligning our EVP with what it stands

for in the market

Highly Engaged Unsupported Detached Disengaged

KoreaAvg.

41% KoreaAvg.

33%

KoreaAvg.

30%

KoreaAvg.

33%



Flexible work arrangement and perception of EVP

15

36%

25%22%

24%

47%

42%

39%

43%

53%

49%

44%

51%

My organization has a formalemployee value proposition.

My organization does a good jobliving up to the EVP.

My organization has a reputationfor providing a good EVP

My organization does a good jobaligning our EVP with what it stands

for in the market

No flexible work Time-based flexible work Location-based flexible work



Mistakes in “managing” engagement

16

Business-drivenSeeing engagement as an HR activity unconnected to business

Key-driver focusWrong or too much focus on the scores (results)

Focus & monitoringWorking on too many things at the same time (program-driven)

Shared responsibilityChange implementation assigned solely as the role of managers

Context savvyCopying external ‘programs’ without understanding the context


Finally, to improve engagement…

17

Align people to job

Develop people

Deliver the deal

Energize change

Managers

Employees Company

Leaders

Determine strategy

Make timely decisions

Foster positive climate

Delegate appropriately

Each stakeholder must

do his/her part…

Internalize values

Be proactive

Put customers first

Provide feedback

Have a shared purpose

Hire right people

Make efficient systems

Promote collaboration


5 Myths of Great Workplace

18

Everyone Is Incessantly Happy

Conflict Is Rare

Mistakes Are Few

They Hire for Cultural Fit

Their Offices Are Full of Fun Things

Source: “5 Myths of Great Workplaces” <Harvard Business Review>, Mar 2015

Successful Employee Engagement Strategies · 2016. 1. 13. · Disengaged: Those who score low on all three aspects of sustainable engagement Source: Towers Watson 2014 Global Workforce

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