Why does employee engagement matter? What really drives engagement? And what makes people stay at your company? Discover the key drivers of engagement, enablement and retention and learn how to use them to empower your employees.

1. Employee Engagement Forum
Belgium - 2013
JUNE 6th, 2013
BRUSSELS
Welcome

2. 01
Introduction
Nico Van Dam (Hay Group)

3. Agenda for today
15:30
Introduction
Nico Van Dam – Hay Group
15:45
Insights from Engagement@Work 2013 Research – Belgium
Nathalie Sterckx – Hay Group
16:20
Panel discussion
Translating your employee engagement survey results
into an action plan with impact
 Lucrèce Reybroeck – Corporate HR Director, Euroports
 Patrick De Deken – Site Manager Antwerp, Ineos Oxide
 Patrick Janssens – Member of Flemish Parliament
Moderator: Sonja Brouwers – Hay Group
17:10
Reception & Networking
© 2013 Hay Group. All rights reserved
3

4. When engagement meets enablement,
it translates into better business performance
54 percent
reduction in voluntary staff
turnover
People are
50 percent
more likely to outperform
expectations
4.5x revenue growth
versus companies in the
bottom quartile on both
measures
Source: Based on linkage case studies using Hay Group’s
global normative database
© 2013 Hay Group. All rights reserved
4

5. Why does employee engagement matter?
CEO Top Challenges in 2013
1
Human Capital
2
Operational Excellence
3
Innovation
4
Customer Relationships
5
Global Political / Economic Risk
Top 5 strategies to meet
Human Capital Challenges
1
Grow Talent Internally
2
Provide Employee Training &
Development
3
Raise Employee Engagement
4
Improve Performance
Management Process and
Accountability
5
Retain Critical Talent
Source: Conference Board 2013
© 2013 Hay Group. All rights reserved
5

6. Trend 1
Engagement
levels are
dropping

7. What have we done to our employees?
salary freezes & pay cuts...
salary moderation...
downsizing & company closures...
cost cutting...
more with less...
© 2013 Hay Group. All rights reserved
7

8. Engagement levels in Belgium are dropping ...
Belgium
Engagement
indicator
(% employees
willing to walk
the extra mile)
Intention to stay
> 5 years
(% employees)
2010*
60%
74%
2011*
55%
65%
2012-13**
53%
65%
(*) Source: Hay Group Insight Employee Opinion Databases
(**) Source: Hay Group Engagement@Work Research Belgium (n=1393)
© 2013 Hay Group. All rights reserved
8

9. Trend 2
Coming up...
Massive talent
shortages around
the world

10. Massive talent shortages around the world...
One in five of all senior executives in the Fortune 500 is eligible for retirement now
Source: Rothwell & Associates
“Engineers topped the list of job titles
experiencing talent shortage”
Source: Manpower’s ‘2011 Global Talent Shortage Survey
“As of Jan.1, the oldest of
America’s baby boom
generation started turning
65 at a rate of 10,000 a day”
Source: NY Times, 2011
China’s impending
talent shortage
? As unbelievable aswith a population of
“A labour shortage, it may seem, this is
precisely the situation China as it may
1.3 billion? As unbelievable now
confronts. is precisely the situation
seem, this
China now confronts.”
Source: Online Asia Times
Two thirds of CEOs believe they’re facing a limited supply of skilled candidates
Source: PWC Annual CEO report 2011
© 2013 Hay Group. All rights reserved
10

11. Trend 3
Coming up...
Global talent exodus
as economy picks up

12. Global talent exodus as economy picks up...
2014 will see the sharpest
Global employee turnover
increase in employee turnover
24.0%
900
Forecast
23.5%
850
23.0%
800
22.5%
750
22.0%
700
21.5%
650
21.0%
600
20.5%
550
20.0%
500
2010
2011
2012
2013
Total employees (right axis)
2014
2015
2016
2017
2018
Employee turnover rate (left axis)
Source: Hay Group & OECD & CEBR analysis, April 2013
© 2013 Hay Group. All rights reserved
12

13. Emerging economies to lead turnover spike
Belgium to follow in 2015
Timing and magnitude of global turnover spikes, 2012-2018
35%
Employee turnover rate
30%
Mexico
25%
India
Brazil
USA
China
Colombia
20%
Russia
Indonesia
Australia
Canada
UK
Peru
15%
Spain
Germany
France
Poland
10%
Italy
Belgium
Netherlands
5%
2012
2013
2014
2015
2016
2017
2018
2019
Year of sharpest turnover increase
Mature economies
Emerging economies
Source: Hay Group & OECD & CEBR analysis, April 2013
© 2013 Hay Group. All rights reserved
13

14. Employee turnover trends for Belgium
12% in 2015
2014 will see a rise in turnover
again, with the sharpest rise
2015
expected in
as economic
activity picks up (12%)
Turnover in Belgium will further
decline in 2013 to 11.1%
Source: Hay Group & OECD & CEBR analysis, April 2013
© 2013 Hay Group. All rights reserved
14

15. Call for action…
© 2013 Hay Group. All rights reserved
15

17. 02
Engagement@Work 2013
Research – Belgium
Nathalie Sterckx (Hay Group)

18. Employee Effectiveness Model






Clear & promising direction
Confidence in leaders
Respect & recognition
Quality & customer focus
Development opportunities
Pay and benefits
Financial
performance
Engagement
Commitment
Discretionary effort
Customer
satisfaction
Business Results
Employee
Effectiveness
Drivers






Performance management
Authority and empowerment
Collaboration
Work, structure & processes
Resources
Training
© 2013 Hay Group. All rights reserved
Enablement
Optimized roles
Supportive environment
Attraction and
retention of talent
Employee
performance
18

19. View the results through multiple lenses
Employee effectiveness profile
72%
Dimensions of engagement and enablement
Comparison to benchmarks
Drivers of engagement / enablement / retention
Priorities and action planning
© 2013 Hay Group. All rights reserved
19

20. Employee Effectiveness Profile – Belgium
HIGH
LOW
EFFECTIVE
14%
Enablement
DETACHED
32%
INEFFECTIVE
FRUSTRATED
39%
15%
HIGH
Engagement
Frustrated employees will… break through
break down,
or break free
© 2013 Hay Group. All rights reserved
20

21. Engagement
Which dimensions score the highest?
Benchmark
Belgium versus
Europe
-1
78%
Quality and customer focus
-1
72%
Clear and promising direction
3
Resources
Respect and recognition
67%
2
Confidence in leaders
67%
3
0
Authority and empowerment
Performance management
0
Collaboration
-1
Work, structure and process
-2
52%
Development opportunities
3
Training
-1
47%
Pay and benefits
0%
10%
20%
0
30%
40%
50%
60%
70%
80%
90%
100%
% Positive
© 2013 Hay Group. All rights reserved
21

22. Worldwide engagement
© 2013 Hay Group. All rights reserved
22

23. Enablement
Which dimensions score the highest?
Benchmark
Belgium versus
Europe
-1
Quality and customer focus
-1
Clear and promising direction
68%
Resources
3
Respect and recognition
2
Confidence in leaders
3
Authority and empowerment
64%
0
Performance management
64%
0
Collaboration
55%
-1
Work, structure and process
55%
-2
Development opportunities
3
51%
Training
-1
0
Pay and benefits
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Positive
© 2013 Hay Group. All rights reserved
23

24. Employee effectiveness
Which dimensions score the highest?
Benchmark
Belgium versus
Europe
-1
78%
Quality and customer focus
-1
72%
Clear and promising direction
Resources
68%
3
Respect and recognition
67%
2
Confidence in leaders
67%
3
Authority and empowerment
64%
0
Performance management
64%
0
Collaboration
55%
-1
Work, structure and process
55%
-2
Development opportunities
52%
3
Training
51%
-1
47%
Pay and benefits
0%
10%
20%
0
30%
40%
50%
60%
70%
80%
90%
100%
% Positive
© 2013 Hay Group. All rights reserved
24

25. What really drives engagement?
R²
1. Respect and recognition






Clear & promising direction
Confidence in leaders
Respect & recognition
Quality & customer focus
Development opportunities
Pay and benefits
0.600
2. Confidence in leaders
0.517
3. Clear and promising direction 0.488
0.477
5. Quality & customer focus
0.423
6. Pay and benefits
© 2013 Hay Group. All rights reserved
4. Development opportunities
0.399
25

26. What really drives enablement?
R²
1. Authority and empowerment
Performance management
Authority and empowerment
Collaboration
Work, structure & processes
Resources
Training
© 2013 Hay Group. All rights reserved
2. Work, structure & processes
0.536
3. Collaboration
0.529
4. Performance management
0.520
5. Resources
0.486
6. Training






0.551
0.377
26

27. What makes people stay?
Trust in company
and leadership
Environment
for success
What makes
people stay?
Authority
and influence
© 2013 Hay Group. All rights reserved
Room for
growth
A fair exchange
27

28. Retention – There is some work to do - Belgium
Trust in company
and leadership
Environment
for success
Room for
growth
What makes
people stay?
Authority
and influence
A fair
exchange
65%
76%
Belief firm is effectively
managed and well run
Enough authority to
effectively perform their roles
57%
37%
Concern over
direction and goals
© 2013 Hay Group. All rights reserved
49%
Concern over fairness
compensation
Unsure about achieving
career objectives
28

29. Summary: Key drivers of
Engagement - Enablement - Retention
Engagement
Enablement
Retention
Respect &
recognition
Authority &
empowerment
Room for
growth
Confidence in
leaders
Work,
structure &
processes
Authority &
influence
Collaboration
Perceived
fairness of
pay
Clear and
promising
direction
© 2013 Hay Group. All rights reserved
29

31. 03
Panel discussion
Moderator: Sonja Brouwers (Hay Group)

32. Once questionnaires are sent in….
Create ownership amongst line managers
Set priorities and come up with a clear plan
Keep talking with your employees
© 2013 Hay Group. All rights reserved
32

33. Lucrèce Reybroeck
Corporate HR Director - Euroports
Patrick De Deken
Site Manager Antwerp – Ineos Oxide
Patrick Janssens
Member of Flemish Parliament

35. 04
Conclusion
Nico Van Dam (Hay Group)

36. Employee Engagement Forum
Thank you