FA 3 - Employee Engagement and Retention

Where appraiser directly compares performance of each employee with that of the others. Examples = ranking, paired-comparison, forced distribution.

Comparative methods

Absorption

Employees are fully concentrated on and completely engrossed in their work.

An org's bottom line will remain healthy through improving retention, customer loyalty, productivity, and safety. ___________ strengthens all of these factors.

Engagement

Realistic job preview

a clear picture of what a job will be like if the applicant is hired (any part of the selection process that provides an applicant with honest and complete information about a job and the work environment. )

performance appraisal

a typical method of measuring employees' adherence to performance standards and providing feedback. Measures the degree to which an employee accomplishes work requirements.

Recognition programs ties to organizational value do (better/worse) than other programs.

better

orgs that spend more than 1% of payroll on EE recognition, experience:

better results.

Good way to calculate outcomes of an engagement action plan is:

calculate the outcome you want to measure (e.g., absenteeism) before and after implementing plan

Consequences of turnover

- costs of filling position - lost training time and knowledge/skills - hurts EE morale and productivity - can compromise org's ability to sustain diverse workplace - additional time needed to rehire and retrain -lost opportunity costs

2 critter to be applied when designing recognition systems:

- ties to performance that helps org meet its strategic goals and org's values -type of recognition should have significance to recipient.

attitude surveys attempt to:

determine employee perceptions of the working environment

Examples of involuntary turnover:

dismissal due to poor performance; elimination due to merger or org restructuring

Paired-comparison

each EE is paired with every other employee and compared, one at a time, using the same scale for performance. this provides more info about individual employees than ranking (comparative method)

4 key areas of employee engagement

-leadership characteristics (cares, communicates, is trustworthy) - team practices (understands customers, excels at strategy, rewards EEs) -organizational values (values EEs, is customer-focused, gives back to EEs and society) -work itself (connected to org's strategy, is challenging and meaningful)

_____________ surveys seek data on employee perceptions of the organization's culture and image.

employee attitude surveys

Employee opinion surveys measures:

important data on specific issues. May seek to gain opinions on specific processes an employee performs, safety procedures, or some other issue the employer may be evaluating or considering.

Monthly voluntary turnover rate

increased trend in voluntary turnover usually correlates to low engagement

__________ survey questions are designed to elicit employee views related to specific issues, such as how work policies or practices are administered.

opinion surveys

Successful human capital management requires _________ strategies and ________.

retention strategies & practices.

goal setting paid with org values =

shows employees how their individual efforts contribute to the success of the organization's strategy.

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.

Field review narrative appraisal method

supervisor/manager and HR cooperate in this method. HR interviews supervisor about performance of each EE. after interview, HR compiles comparison ratings for each EE then submits the rating to supervisor for approval or changes.

___________ provide a large quantity of relevant and analyzable data.

surveys

Once survey results have been analyzed, the org must do what?

take action based on the information received, and do it in a way that EEs recognize that action is being taken.

Retention

the ability to keep talented employees in the organization. Orgs aspire to keep high performers and to exit the low performers.

a primary reason for performance management failure is:

the lack of alignment of organizational systems, strategies, and philosophies.

Performance management is:

the process of maintaining or improving employee job performance.

Examples of voluntary turnover:

employees take another job that offers better alternatives; to follow a transferred spouse/partner; to return to school; dissatisfaction, etc.

Employee engagement survey focus on:

employees' level of job satisfaction, commitment, and morale. Should explicitly link to business objectives.

Manager behavior is pivotal to both employee ________ and ___________.

engagement and well-being

How would one calculate Absence rate?

# of days absent in month/ (avg # of EEs during months x # of workdays in month)

Retention rate =

(# of EEs who remain employed for entire measurement period/ # of EEs at start of measurement period) x100

Turnover rate =

(# of separations during measurement period/ave # of EEs during measurement period) x100

Measures of employee performance include:

- quality - quantity - timeliness - cost-effectiveness

Committed and engaged EEs who trust their management perform _____% better than other employees.

20%

The ________ 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.

BARS

Make the business case for employee engagement strategies by doing what?

By demonstrating measurable outcomes related to organizational goals.

Trait Engagement

Describes the inherent personality-based elements that make an individual predisposed to being engaged. (natural curiosity/desire to be involved)

____________________ 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.

Employee engagement

MBO

Management by objectives: employees help set objectives for themselves, defining what they intend to achieve within a specific time period. Objectives based on overall goals and objectives for the organization.

________________rate sometimes referred to as stability index, measures the retention of particular employees over a specific period of time, and complements the turnover rate metric, giving a more complete view of worker movement than calculating either metric along.

Retention rate

Contrast

When an EE's rating is based on how his/her performance compares to that of another EE instead of on objective performance standards.

Organizational commitment

a desire to stay with the organization in the future

Opinion surveys seek to gain:

opinions on certain processes

Strictness

some appraisers may be reluctant to give high ratings

________________ programs help employees balance the demands of their work and home lives.

work/life programs

the _________________ rate is the metric most closely tied to safety initiatives

workers' compensation incident rate

Central tendency

when appraiser rates all EEs within a narrow range, regardless of differences in actual performance

The monthly voluntary turnover rate is calculated as

(number of voluntary separations during the month/ avg # of EEs during the month) x100.

Errors in Performance Appraisal:

- Halo/Horn effect - Recency - Primacy - Bias - Strictness - Leniency - Central tendency - contrast

Bias

when appraiser's values, beliefs, or prejudices distort ratings (consciously or unconsciously). Error is due to bias

3 categories of employee surveys:

- employee attitude surveys - employee opinion surveys - employee engagement surveys

Behavioral Engagement

Evident in the effort employees put into their jobs, which leads to greater value, creating higher performance than from their less-engaged counterparts.

"RJP" stands for:

Realistic Job Preview

_____________ starts the employee life cycle and encompasses all the HR processes leading up to and including hiring. The employer-employee relationship is initiated.

Recruitment

_____________ provide one-on-one opportunities to discuss engagement factors in greater depth. May create engagement in itself by establishing 2-way communication and demonstrating org's perception of employee's value.

Stay Interviews

Four drivers of engagement

The work itself (including opportunities for development); confidence and trust in leadership; recognition and rewards; organizational communication that is delivered in a timely and orderly way.

"TSR" stands for:

Total shareholder return

3 factors from Macey and Schneider that relate directly to the work of HR Professionals:

Trait, state, and behavioral engagement.

which ELC phase: specific activities during this phase are depended upon the type (e.g., resignation, firing, transfer, promotion, demotion, or retirement)

Transition (e.g., exit interviews for resignation)

Participation:

a process in which power or influence is shared between management and employees who are both engaged in the decision-making process.

Graphic scale

aka agreement scale or 1-5, 1 being below standard & 5 being significantly above standard. Good because they are simple & provide quantitative rating for each EE; bad because standards may be unclear. (category rating method)

Checklist

appraiser given list of statements or words and checks items that describe characteristics and performance of the EE (category rating method)

Yield ratios

can be used in evaluation of EE engagement initiatives. e.g., decreased yield ratio for EE referrals could indicate a decrease in employee engagement.

The least complex means of appraising performance, in this method, the appraiser marks an employee's level of performance on a designated form. Examples = graphic scale, checklist, forced choice.

category rating methods

Don't conduct a survey unless you are convinced that your leadership team is:

committed to listening to and acting on feedback

What is paramount to do early on with surveys?

communicating the goals of the survey. How does it affect employees and why is it being done?

Employee Life Cycle (ELC)

describes all the activities associated with an employee's tenure in an organization. Recruitment->Integration->development->transition

What are the two most established tools for identifying what matters to employees?

employee engagement surveys and stay interviews.

Engagement surveys focus on:

employee satisfaction, commitment, and moral

Transactional Engagement

employees appear engaged, for example, by working longer hours and even responding as such in engagement surveys, but do not actually feel or think in an engaged way.

Forced distribution

employees are rated and placed at different percentage points along a bell-shaped curve. good because distribution forces are predetermined number of people in each group; bad because appraisal results depends on the adequacy of the original choice of cutoff points.

Employee turnover occurs when:

employees leave an organizations

Halo/horn effect

halo: when an EE is extremely competent in one area & therefore is rated highly in all categories. Horn: when 1 weakness results in overall low rating

Leniency

happens when appraisers do not want to give low scores, therefore all EEs are given high scores

Due to global competition, harsh economic conditions, continuous innovation, and new technology, many employees are having to cope with what?

high job demands, fewer resources, and different responsibilities. Boundaries between work and non-work life are increasingly blurred.

__________________ allows employees to set objectives for themselves and define what they intend to achieve within a specific time period. The objectives EEs set are based on overall goals and objectives for the organization

management by objectives (MBO)

BARS work best when:

many employees perform the same tasks, since it takes extensive time and energy to develop and maintain. Job specific (can't use BARS for all roles)

Appraiser submits written narrative performance appraisals. Examples = essay, critical incidents, field review.

narrative methods

Performance management standards should be:

objective, measurable, realistic, and stated clearly in writing (or otherwise recorded)

A department has 10 employees; 2 employees leave and are replaced. What are the retention and turnover rates?

retention = (8/10)x100 = 80% turnover = (2/10)x100 = 20%

the ___________ rate is calculated as (Employed employees for the entire measurement period/ number of employees at the start of the period) x100.

retention rate

Engagement strategy should specify what?

should specify how engagement efforts will be sustained over time.

Performance standards are

the expectations of management translated into two key elements that employees can deliver: behaviors (what the org wants EE to do), and results (what org want EE to produce/deliver).

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.

Do not commit to another survey until:

you have analyzed and planned a response to feedback.

three purposes of performance appraisals:

-provide feedback and counseling - help in allocating rewards and opportunities - help in determining employees' aspirations and planning developmental needs

what can a cross-sectional committee do during survey process & who should it include?

they can review overall company results and make recommendations to management. Should include an equal mix of leaders and members representing employee base.

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

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 of checklist.

Retention strategies start with____________________, and continues on ______.

the organization's branding and recruitment efforts, and continues on through the employment experience.

Performance goals should reflect:

the values that the organization has defined and communicated to employees.

performance goals should reflect:

the values that the organization has defined and communicated to employees. Individual performance goals also good to how how individual's efforts contribute to the success of the org's strategy.

Why are generic surveys not beneficial?

they may miss key areas that are crucial to a specific workforce or emphasize areas that are less relevant while minimizing attention on critical areas.

Revenue per employee =

total revenue/total number of EEs

_________ rate often defined as the number of separations divided by the average number of employees during the same time period

turnover rate

Monthly voluntary turnover rate =

(# of voluntary separations during month/ Average # of employees during month) x100

For surveys to deliver their promised benefits, employees should be:

- aware of the purpose of survey - surveyed about significant & specific areas - guaranteed confidentiality and anonymity - given feedback on the results.

benefits of creating a corporate alumni network for organization include:

- branding - new business - industry intelligence - "boomerangs" - employee referrals

Categories and activities HR can use in measuring and analyzing employee engagement:

- career development - relationship with management - compensation and benefits - work environment

Methods for conducting an appraisal:

- category rating methods - comparative methods - narrative methods

Best Practices for Engagement strategies:

- commit long-term (more than just one survey) - measure consistently (engagement, outcomes, progress towards goals) - connect engagement to business results (engagement influences org outcomes & helps build/sustain business) - seek employee input (works best when EEs have app to provide input) - gain leadership support (in order to be integrated in org's policies and decisions)

Employee attitude surveys attempt to determine EE's perceptions of such topics as:

- company culture and company image - quality of management -effectiveness of comp and benefits programs - organizational communication and involvement issues -diversity - safety and health concerns

Strengthen behavior with:

-positive reinforcement = add something valued -negative reinforcement = remove something disliked

organizations can foster a high-performance workplace by:

- demonstrating executive-level support for performance management - providing a positive and challenging work environment -attending to employee engagement activities -training managers in performance management, including legal issues -holding managers accountable for their role in performance management providing continual feedback from managers, peers, customers, and others - not just at performance appraisals - providing the proper resources and tools - maintaining consistent management practices.

What does HR need to do to mitigate challenges?

- develop a clear understanding of the organization's legacy workforce - identify where new skills are needed - use simulation and scenario planning to predict future workforce needs - create and sustain a strong employee value proposition that balances training, access to new skills, and long-term employment - champion systems thinking and collaboration

At the end of the appraisal meeting, the appraiser and employee must:

- gain agreement on the appraisal ratings - set specific objectives that the EE is to achieve before the next appraisal period - create an implementation plan for how the EE will meet the objectives - discuss how the appraiser will follow up with the EE to see that the objectives are being met - discuss what must be accomplished before the next review period

Developing BARS typically requires an organization to:

- generate critical incidents - develop performance dimensions - scale the incidents - develop the final instrument

effective performance appraisals can:

- improve productivity through constructive feedback - identify training and developmental needs - communicate expectations - foster commitment and mutual understanding

Guidelines for Employee Engagement Surveys:

- include questions that could be asked every year for baseline - keep language neutral and positive - focus on behaviors - beware of loaded and uninformative questions - keep survey length reasonable - consider tailoring a vendor's "standard" questions to reflect org needs - ask for a few written comments - consider doing more than 1 type of survey (e.g, pulse surveys)

2 appraisal methods that can help overcome some of difficulties associated with appraisals:

- management by objectives (MBO) - behaviorally anchored rating scale (BARS)

Advantages of BARS include:

- more accurate gauge of performance - clearer standards of performance - feedback - independent dimensions

Possible evaluations of onboarding programs may involve activities and metrics such as:

- organizational turnover/retention rates - individual employee performance measures - departmental performance measures - formal and informal feedback from new hires - retention thresholds (point at which a new EE exits the organization)

Role of HR in Employee Recognition:

- promote a strategic recognition program -tie recognition programs to corporate values -encourage corporate spending on employee recognition

Benefits of properly designed & skillfully conducted employee surveys:

- provide a direct means of assessing EE attitudes that would otherwise be unreported - improve EE relations by signaling to EEs that their views are considered important - increase levels of EE trust (if results are acted upon) - improve satisfaction levels of customers (happy EEs = happy customers) - detect early warning signs or workforce problems and/or sources of conflict

What should HR professionals do to effectively implement flexible staffing?

- select the right EE for right job - set clear expectations, reporting, and performance outcomes -contact IT for tech resources for telecommuting and virtual comm - establish performance management systems that cover flex arrangements -frequently evaluate arrangements to determine job satisfaction and EE contribution or org -evaluate cost-effectiveness and other effects of flex work programs based on org's strategic goals

Strategies and practices for improving employee retention:

- treat retention of key EEs as strategic part of talent management - know what motivates each segment of workforce - conduct ongoing research to monitor motivation and trends - understand why EEs want to stay vs. leave - develop high-value talent & reward them - keep EEs informed of org's plans and direction - monitor retention and turnover rates - align all org systems/depts/processes/ procedures to improve retention

To better understand employee turnover, some questions to ask include:

- what is current turnover rate? - how does it compare to previous years? - how does it compare to industry average? - how much is turnover costing the org? - who is leaving the org? - what impact does turnover have on the morale of EEs who stay?

Types of organizational cultures

-Authoritarian (power resides with top-level management; EE have no involvement in decision-making or goal-setting) -Mechanistic (tasks/responsibilities clearly defined to EEs & shaped by formal rules and SOPs; accountability is a key factor) -Participative (collaborative decision making and group problem solving are embraced; EEs actively participate in decision-making and goal-setting) -Learning (org conventions, values, practices, and processes encourage individuals to increase knowledge, competence, and performance) -High-performance (talent is championed)

Engagement Drivers (work experience factors) within the organization's control:

-Engaging leadership (senior leadership, the manager) -Talent focus (brand, career & performance development, rewards/recognition, talent/staffing) -The work (work tasks, work/life balance, job satisfaction, autonomy) -The basics (job security, safety, risk, survey follow-up) -agility (collaboration, customer focus, decision making, DEI)

Examples of work/life programs:

-convenience/concierge services -EE assistance/development programs -family assistance programs -flex work arrangements -leave of absence -total working hours -wellness programs

Practices to increase engagement during employment:

-job enrichment -learning and development -strategic compensation -performance and career management

Top "Levers" of Engagement

-organizational culture and performance traits -day-to-day work characteristics -Manager characteristics

3 different aspects of employee health encompassed by Well-Being

-physical (overall health, stamina, energy) - Psychological (levels of stress, optimism, control, confidence) -Social (work relationships, work/life balance, equity, respect)

Management Competencies for Enhancing Employee Engagement

-supporting employee growth (autonomy and empowerment; development; feedback) -Interpersonal style and integrity (individual interest; availability; personal manner; ethics) -Monitoring direction (reviewing and guiding; clarifying expectations; managing time and resources; following processes and procedures)

Performance management systems can be fully effective only if:

-they have support of senior leaders - managers who much implement the system accept the systems value to the org and thoroughly understand how to implement it - EEs are educated about the system (how to gain value from it and how to ensure their rights to provide responses and feedback) - implementation of the system is regularly evaluated and improved & is aligned with strategy and culture

Companies with committed and engaged employees have ________% the voluntary turnover rates of their competitors.

50%

Employee Engagment

A way of leveraging employees' full talents by creating a mutually beneficial relationship in which employees perceive that they are heard and valued by the employer.

Employee survey

An instrument used to collect and assess employee perceptions about the work environment. Provide formal documentation on important organizational issues.

BARS

Behaviorally anchored rating scale; designed to overcome the problems of category rating by describing examples of desirable and undesirable behaviors. Examples then measured against a scale of performance levels. Clearly indicating the behavior associated with each level of performance helps reduce some of the limitations inherent in other appraisal methods.

Which ELC phase: EE participates in internal training and external professional training programs funded by the org. HR and management typically work collaboratively with EE to develop performance objectives and goals in conjunction with performance eval frameworks or systems.

Development

Well-being enhanced the relationship between ______ and ______.

Employee engagement & productivity.

"ECL" stands for:

Employee life cycle

State Engagement

Influenced by workplace conditions and practices (e.g., task variety, opportunities to participate in work decisions) that can be improved through organizational interventions directly under management's control

Which ELC phase: employee gains access to info and tools required for the job and settles into the position. EE also becomes familiar with org culture, coworkers, and management

Integration

Employee Engagement

Organizational commitment and employees' willingness to "go the extra mile".

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.

The effective performance appraisal is:

a job-related planning activity that is shared by the employee and the supervisor. Input from both is essential for successful outcome.

Ranking

appraiser lists all employees from highest to lowest/best to poorest in performance. Good because simple to use but not as simple as graphic scaled; bad because can cause disagreements among employees and may be unfair if all employees are excellent. (comparative method)

Essay narrative appraisal method

appraiser submits short essay describing the performance of each employee during the rating period. usually, appraiser is given several topic areas for comment.

Employee input on important organizational issues should be both ____ & _____.

asked for & valued.

information that EEs receive during performance appraisals should never:

be a surprise to the employee

Why are stay interviews preferable to exit interviews?

because current employees are asked why they continue to work for the organization. Exit interviews are typically too late to effect change and prevent an EE from leaving.

Dedication

employees are involved in their work and have a sense of pride and enthusiasm about it

Vigor

employees show high levels of energy and invest effort into their work.

_______________ programs provide a variety of family resources and support, including child-care and elder-care assistance.

family assistance programs

Performance management system has a relationship between __________, __________, and ______ - which ultimately impact org's goals.

organizational strategy, individual contributions, and business results

Critical Incidents narrative appraisal method

record of EE actions is kept in addition to actual ratings. both positive and negative actions are recorded for the entire rating period. Good because helps specify what is right/wrong about EE performance and forces supervisor to evaluate EE on ongoing basis; bad bc may be difficult to rate or rank EE relative to one another

this calculation is especially important when evaluating the cost of a lost employee due to voluntary or involuntary turnover. a decrease in this may correlate to a decrease in employee engagement

revenue per employee

Managers facilitate engagement by:

showing gratitude, amplifying accomplishments, and communicating well & often, with emphasis on positive feedback.

During _________________, employees discuss why they like (or don't like) their current job. Also helps assess the degree of employee satisfaction and engagement that exists in a dept or org.

stay interviews

a starting point in evaluating retention is:

understanding employee turnover- the number of EEs leaving, why they leave, and the impact those departures have on the org's productivity and overall business performance.

Starting point in evaluating retention is:

understanding employee turnover. The # of employees leaving, why they leave, and the impact those departures have on the org's productivity and overall business performance.

Forced choice

variation of checklist method. appraiser required to check 2 or 4 statements; one that the employee is most like and one that the employee is least like (category rating method)

Primacy

when an appraiser gives more weight to employee's earlier performance and discounts or minimizes recent occurrences

Recency

when an appraiser gives more weight to recent occurrences and discounts or minimizes the employee's earlier performance during the appraisal period