Employee Engagement and Retention
A benefits manager notices that several senior-level employees in her department are disengaged. The manager meets with the employees and discovers that they feel confined to the office and have actually become bored with their jobs. Which activity should best assist with this low-level trait engagement?
Have the employees create and present a new wellness series. Rationale: Trait engagement describes the inherent personality-based elements that predispose an individual to being engaged: a natural curiosity, a desire to be involved, an interest in problem solving. These traits may figure into recruiting and hiring efforts.
Which metric should an organization look to when evaluating an employee engagement strategy that is focused on safety?
Workers' compensation incident rate Rationale: While each of the metrics may assist in assessing employee engagement, the workers' compensation incident rate is the metric most closely tied to safety initiatives.
How will using a revenue-per-employee metric allow HR to demonstrate the impact of turnover on employee engagement?
A decrease in revenue per employee may correlate with lower employee engagement. Rationale: A decrease in revenue per employee may correlate with a decrease in employee engagement. This is especially important when evaluating the cost of a lost employee due to turnover. Although there is no single calculation for measuring engagement, HR can measure specific outcomes of engagement action plans.
Performance standards
Behaviors and results as defined by an organization to communicate the expectations of management.
How should a chief HR officer explain to her senior leadership colleagues the value of measuring employee attitudes through an annual survey?
By demonstrating how the survey can reveal unreported problems Rationale: Asking for evaluations of a variety of issues and often allowing anonymity, surveys can identify issues employees are hesitant or don't think to raise with supervisors or management.
Retention
Ability of an organization to keep its employees.
Employee life cycle (ELC)
Activities associated with an employee's tenure in an organization.
Well-being
Physical, psychological, and social aspects of employee health.
What is the correct formula to calculate the monthly voluntary turnover rate?
(Number of voluntary separations during the month/Average number of employees during the month) x 100 Rationale: The monthly voluntary turnover rate is calculated as (Number of voluntary separations during the month/Average number of employees during the month) x 100.
How can HR best engage employees in developing the performance standards for a new performance management system?
By communicating performance expectations Rationale: The organization must communicate what it wants employees to do, and these behaviors have to be translated into performance standards. When performance standards are communicated, they must be defined so all employees understand the expected behavior. For example, if innovation counts, it must be identified and measured, and employees must be given clear examples of what represents innovation.
In a downsizing environment, which question would be most appropriate to include in an employee opinion survey?
Does your supervisor elicit your opinions about work processes? Rationale: Employee opinion surveys focus on the opinions of employees related to work processes, such as cross-training programs, safety programs, or recognition plans.
Which is a critical consideration to address before proceeding with an online survey?
Ensuring the confidentiality of participants' responses Rationale: The most critical issue is the confidentiality of the opinions and information participants provide. Without confidentiality, participants may be reluctant to provide constructive feedback. Questions of system security, access, and survey design are important but secondary.
Stay interviews
Structured conversations with employees for the purpose of determining which aspects of a job encourage employee retention or may be improved to do so.
An HR professional is compiling the questions for an upcoming institutional engagement survey. How best can she determine the most effective survey questions?
By linking the questions to business objectives Rationale: Employee engagement surveys focus on employees' level of job satisfaction, commitment, and morale. Survey questions or statements should explicitly link to business objectives.
Employee engagement
Employees' emotional commitment to an organization, demonstrated by their willingness to put in discretionary effort to promote the organization's effective functioning.
During the employee selection process, how can HR identify an employee who is more likely to become engaged in the organization?
By assessing how well the candidate will fit with the organization's culture Rationale: When selecting employees, find candidates who are likely to perform duties well, who contribute voluntary behaviors, and who already fit the organizational culture and values. Then connect them with others in the company as part of their onboarding experience to support their optimum performance engagement.
HR has noticed a higher-than-normal rate of voluntary terminations and determined that this warrants investigation. Plans are made to survey the employees. Which type of survey would best determine reasons for the employee departures?
Engagement survey Rationale: Engagement surveys focus on employee satisfaction, commitment, and morale. Opinion surveys seek to gain opinions on certain processes, and attitude surveys attempt to determine employee perceptions of their working environment.
A manufacturing organization's office employees are arriving late to work on a consistent basis. A focus group is conducted, and it is discovered that the employees' morning commute has changed significantly due to highway construction. Which of the following should HR recommend the organization implement to support the temporary needs of employees?
Introduce a flextime policy with bandwidth hours. Rationale: Since this is a manufacturing organization, employees need to be at the organization's facility. Therefore, allowing employees to work on a flextime schedule is the best answer.
Performance appraisal
Process of measuring and evaluating an employee's adherence to performance standards and providing feedback to the employee.
An organization recently changed its employee benefits package and has decided to measure employee satisfaction in response to this change by administering a survey. To ensure that the survey delivers its promised benefits, which action should the employer take before administering the survey?
Share the purpose of the survey. Rationale: While all the choices are relevant to good survey design and administration, communicating the goals of the survey early on is paramount. An employer shouldn't assume that employees will understand the intent of a survey. Employees want to know how it affects them and why it's being done.
Which practice should have the best potential to decrease talent acquisition costs and increase an organization's ability to compete for skilled employees?
Staying current with labor market and economic trends Rationale: An understanding of labor workforce data can help an organization stay ahead of increasing talent demand trends and even provide an early warning that talent pressure is expected to increase or decrease. It is always better for an organization to enact retention strategies early rather than in reaction to increasing turnover.
How should HR improve an organization's onboarding program to reduce voluntary turnover during the first 90 days of employment?
By conducting in-depth exit interviews to determine the cause of turnover Rationale: The HR professional should evaluate the organization's onboarding strategies using a variety of metrics. In this situation, in-depth exit interviews to determine the cause(s) of voluntary turnover could determine any areas of dissatisfaction with the onboarding process and/or other negative organizational issues the new hire may have encountered.
Which managerial competency would best support the relationship between the well-being and engagement of employees?
Demonstrating interest in employees as individuals and contributors Rationale: A nurturing style of management, demonstrated by getting to know employees' individual needs and abilities, has been shown to reinforce the relationship between well-being and engagement.
A plant manager informs the HR manager that employees are leaving due to limited advancement opportunities. What is the first step the HR manager should take?
Review exit interview data to see if it reflects limited promotional opportunities leading to employees leaving the organization. Rationale: The first step for the HR manager is to see if data supports this assumption. Exit interview data can help in this regard, as individuals are more apt to be honest about reasons for leaving an organization as they leave.
Which is a primary reason that organizations may not excel at performance management?
The organizational systems, strategies, and philosophies are not aligned. Rationale: While all of these options can explain the failure of a performance management system, a primary reason for failure is the lack of alignment of organizational systems, strategies, and philosophies. This is the foundation of effective performance management, and this process affects all others.
An organization has become dysfunctional: Morale is low, reports of discipline-worthy offenses and conflicts with supervisors are increasing, and productivity is down. Which initial step would HR take to gain more information about possible causes?
Third-party-administered survey Rationale: Since the problem may be with employee relationships with supervisors and/or management, ensuring the anonymity of employee feedback may be essential to gathering useful information. Using a third party to report anonymous results would be an effective first step in gathering data.
Realistic job preview (RJP)
Tool used to provide a job applicant with honest, complete information about a job and the work environment.
Performance management
Tools, activities, and processes that an organization uses to manage, maintain, and/or improve the job performance of employees.
In 2015, Company X's turnover rate was 74%. The HR director would like to know if a new CSR program has impacted the retention rates for 2016 and 2018. Which formula should the HR director use?
(Employed employees for the entire measurement period/Number of employees at the start of the period) x 100 Rationale: The retention rate is calculated as(Employed employees for the entire measurement period/Number of employees at the start of the period) x 100. It tracks the retention of those working on day one of the measurement period. The other equations include other factors not needed for the review period.
A company is expanding into a new country and wants to extend its collaborative, team-based approach to help engage its new workforce. Which driver of engagement should the HR director consider first?
Align company practices to new country practices using valid research to guide changes. Rationale: The first step is to recognize that drivers of engagement may vary among cultures, and the HR director must obtain non-biased information about preferences among this new group of employees. Not addressing a different approach to collaboration up front may cause confusion as the teams integrate.
A manager of a new restaurant is having difficulty with her chef's interaction with servers as well as the quality of food he is preparing. After consulting with her HR partner, they plan to develop a performance management system. What is most critical to the effectiveness of the performance management system?
Aligned individual contributions that drive organizational results Rationale: Clear communication of performance standards that are aligned to organizational goals and objectives is the basis of an effective performance management process. Behavior that is expected and evaluated must be communicated clearly.
Senior management has determined that a reduction in force (RIF) is the only way it can address financial difficulties. Which action would best minimize the impact of the downsizing on the organization and employee morale?
Allow employees to volunteer to be separated. Rationale: A reduction in force in which employees in selected task areas are allowed to volunteer for layoff has the potential to benefit both the organization and the employees. For the organization, a voluntary RIF creates opportunities for restructuring and assists in meeting the organization's fiscal responsibilities. For employees, it may facilitate a transition to retirement. Also, in some countries, an early "at will" separation can provide the employee with access to federal or local financial assistance for the pursuit of other career opportunities.
During the year-end performance appraisal, an HR team member expresses surprise at her "does not meet expectations" rating. The HR manager had rated her as "exceeding expectations" in each of the last three years. How should the HR manager respond?
Ask the employee if and how she disagrees with specific performance criteria assessments. Rationale: A performance appraisal meeting should be a dialogue in which the manager and the employee can objectively discuss performance issues. If the team member agrees that the expectations are valid and cannot show that the assessment is wrong, then the pair can address possible reasons for the change in performance rating. It might be related to an increase in expectations that the team member is not prepared to meet. It might be personal problems that will require counseling. Only a widespread problem would indicate a need to reevaluate the performance management system. Simply forcing the manager's view will not engage the team member or begin to identify root causes. Discussing the assessment with other team members violates the employee's privacy.
Some managers in an organization rate their employees' performance as uniformly high. An HR audit reveals that business outcomes do not support these higher employee assessments. Recommendations include changing the appraisal method to the behaviorally anchored rating scale (BARS). Which method's shortfalls are mitigated by using BARS?
Category rating Rationale: Category rating methods, the least complex means of appraising performance, require managers to simply mark an employee's level of performance on a designated scale or checklist. The BARS method was designed to overcome the problems of category rating by describing examples of desirable and undesirable behavior. Examples are then measured against a scale of performance levels.
An organization recognizes the benefit of long-tenured employees-they provide valuable experience that is key to its success. What practice can HR use to help ensure that employees remain with the organization for a longer period of time?
Conducting realistic job previews Rationale: By conducting realistic job previews, the organization can help ensure that new hires are well prepared for the job duties and understand the organizational culture before they enter it. This can help keep employees engaged over time and may result in retaining them for a longer period of time. Performing salary reviews and improving benefit plans can help ensure that the total compensation for the position is competitive in the market, but that will not address other issues that may cause employees to exit the organization prematurely. Streamlining HR processes may not have any impact on the employee retention rate.
How should an HR director advise a supervisor to engage a typically high-performing employee whose performance has declined the past two quarters?
Discuss with the employee his overall goals and objectives as they relate to the particular role the employee occupies. Rationale: When an employee's performance has declined, the manager should work to identify what may be driving that decline. Feedback about current performance can be used to help identify developmental needs and long-term career goals.
Which program best allows HR to support long-term employee engagement and retention?
Employee assistance Rationale: Employee assistance and employee development programs focus on immediate and long-term needs of the employee.
Workplace accidents have increased over the past few years. Which type of survey would best gather employee ideas that could improve overall safety in the workplace?
Employee opinion survey Rationale: Opinion surveys seek to gain opinions on certain processes. Attitude surveys attempt to determine employee perceptions of the working environment, and engagement surveys focus on employee satisfaction, commitment, and morale.
Which managerial behavior would most effectively increase employee engagement?
Encouraging employees to have a proposed solution when they come for assistance with a problem Rationale: Autonomy and control over the job reinforces employees' ability to manage and solve problems. Encouraging employees to work through a problem prior to approaching the manager reinforces that they are capable and can solve the problem.
Exit data reveals a higher-than-normal rate of voluntary turnover. To investigate further, HR plans to survey the employees. Which type of survey should HR conduct?
Engagement survey Rationale: Engagement surveys focus on employee satisfaction, commitment, and morale, thus providing greater insights into employees' desire to stay with the company. Opinion surveys seek to gain opinions on certain processes, and attitude surveys attempt to determine employees' perceptions of their working environment.
A recent employee satisfaction survey indicated that 83% of respondents were satisfied with their jobs. The CEO believes that employee engagement initiatives have met expectations and that money budgeted for additional employee engagement efforts should be shifted to other projects. Which is the best way to respond?
Explain that employee engagement is about performance outcomes not always reflected in survey results, so initiatives should continue. Rationale: Employee engagement is a broader concept than employee satisfaction, commitment, and morale. It is an outcome-driven concept about behaviors that can positively influence individual- and business-level performance. As such, engagement initiatives should continue. However, efforts will most likely shift to acknowledge progress made in some areas and gaps that remain in others.
An engineering company aspires to have a culture that supports a family-friendly environment. What work/life program would support such a culture?
Family assistance program Rationale: Work/life programs help employees balance the demands of their work and home lives. Family assistance programs provide a variety of family resources and support, including child-care and elder-care assistance.
A new employee is experiencing performance problems. What should HR do as a first step in determining the root cause of the employee's performance challenges?
Guide the supervisor to discuss the performance issues with the employee. Rationale: The first thing the supervisor should do is have an honest discussion with the employee. Performance discussions should be held when needed, not just as part of a yearly performance appraisal. The employee must understand what is expected and why present performance is not adequate.
Engagement drivers differ from country to country, making it important to understand cultural differences that may influence survey results. In a multinational organization, in which type of culture may employee surveys be less acceptable?
Hierarchical Rationale: In some hierarchical cultures, such as Asian cultures, employees may not be familiar with the concept of management broadly soliciting opinions from their employees. Therefore, Asian employers and employees may be uncomfortable with the idea of an employee survey.
HR is asked to evaluate the organization's overall retention. Which would be the best information for HR to assess first?
How the current turnover rate compares to the industry average Rationale: Employee turnover has several unquantifiable costs besides recruiting, retaining, and retraining new employees. A starting point in evaluating retention is understanding employee turnover-the number of employees leaving, why they leave, and the impact those departures have on the organization's productivity and overall business performance.
Employee surveys
Instruments that collect and assess information on employees' attitudes on and perceptions of the work environment or employment conditions.
Which factor is critical for HR to consider before conducting an employee engagement survey?
Leadership buy-in and commitment to act on survey results Rationale: Leaders and managers must demonstrate a commitment to responding to survey results. Surveys that are administered and not followed up on can signal a lack of respect and commitment to the employees and can erode the trust employees have in their leaders
A sales organization's leadership team has just announced a very aggressive five-year sales plan. Which performance management method should HR suggest to support the plan's achievement?
Management by objectives method to measure goals and objectives Rationale: Management by objectives allows employees to set objectives for themselves and define what they intend to achieve within a specific time period. The objectives employees set are based on overall goals and objectives for the organization.
Which would be the best way for HR to increase employee willingness to participate in pulse surveys to gauge improvement in comprehensive surveys?
Relate any employment practice changes made and their effectiveness to input provided on the last survey. Rationale: Employees respond favorably to tangible responses or program changes that are related back to initial surveys. This reinforces the value of employee surveys and subsequent pulse or quick surveys.
A consulting company knows that its primary advantage lies in the expertise and commitment of its people. Which practice should HR recommend that leaders focus on?
Retention Rationale: A company that sells its employees' expertise will most likely focus on employee retention. In this situation, experienced employees who have developed strong relationships with customers cannot be easily replaced.
An organization seeks to evaluate the overall business impact of its employee retention strategies. What engagement metric would provide this insight?
Revenue per employee Rationale: Revenue per employee evaluates the costs of a lost employee due to voluntary or involuntary turnover. Employee absence rate and monthly voluntary turnover rate measure employee absences and voluntary turnover respectively, but not the resulting business effect. Yield ratio focuses on employee engagement initiatives.
Which best describes the impact when an organization's values are effectively paired with goal setting?
Shows employees how their individual efforts contribute to the success of the organization's strategy Rationale: Performance goals should reflect the values that the organization has defined and communicated to employees. Individual performance goals provide an opportunity to show employees how their individual efforts contribute to the success of the organization's strategy.
An employee life cycle describes all of the activities associated with an employee's tenure in the organization. What is the impact of HR's understanding of the employee life cycle on the organization?
Supporting employee performance and engagement Rationale: For HR practitioners, employee life-cycle phases influence the inputs and types of developmental activities the employee needs to support his or her optimum performance and engagement.
