5 Reasons You MUST Measure

Employee Loyalty During a

Recession
 Some Housekeeping Items
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Today’s seminar is scheduled to last for
1 hour

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Audio portion of today’s webinar can be heard through your

computer speakers

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Questions can be submitted via the Question button at any time

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2
 About Our Speakers
Chris Woolard
Senior Consultant
Walker Information

Brian Koma
Vice President of Marketing
Vovici
 Across All Industries
About Vovici


Utilized by 60% of Fortune 500


Thousands of customers in over 47 countries


More than 150 million completed surveys in
more than 150 different languages


15 years of industry experience, leadership
and innovation


Delivering measurable results for customer
satisfaction, employee retention and cost
reduction
 About Walker
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69-year-old, privately held company
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Pioneer in Employee and Customer Loyalty
Management
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Conducted national employee loyalty
studies since 1999
 Vovici & Walker Information
•
Partnered together to bring the best
employee loyalty solution
•
Combines Vovici’s award-winning
technology with Walker Information’s
methodology and benchmarks
•
Enables organizations of all sizes to
measure loyalty while minimizing cost
 What We’ll Cover
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Current economic factors
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The difference between employee
satisfaction and loyalty
•
Why measuring employee loyalty is
still important in a recession
•
Proven techniques for measuring
employee loyalty cost effectively in
a recession
Recent Wall Street Journal Headlines
“Google Gears Down for Tougher Times”
“Goldman Faces Loss of $2 Billion for Quarter”

“Big Three Seek $34 Billion Bailout’

“Delinquent Mortgages to Nearly Double”

“U.K. Banks Hit by Defaults”

“Budget Woes Force Colleges to Cut Back”

 Current Situation
Unemployment rose again in November from 6.5% to 6.7%
 Current Situation
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November had the largest monthly job
loss total since December 1974,
CNNMoney reports
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Recent study by SHRM shows a decrease
of 7 points in the percent of companies
increasing their workforce compared to
last year
What This Means for HR
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Reduced budgets
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Reduced staff
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Focus only on essential projects
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All projects must show return on
investment
 So Why are We Talking about
Employee Retention and Loyalty?
It’s a Recession, Not a Depression
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Despite the negative headlines,
organizations are still functioning
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There is great uncertainty about the
future
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Those organizations that protect their
people assets will come out of this
stronger
5 Reasons You MUST Measure
Employee Loyalty During a
Recession
 1. Direct Correlation between
Employee Loyalty & Customer Loyalty
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Loyal employees have a big positive
impact on customer loyalty and
retention
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Maintaining employee loyalty pays
benefits in keeping customers
•
Just as challenging to keep a customer
today as it is finding new ones
Employee Customer Link
 Loyalty
+
Accessible Truly Loyal

Attitude

High Risk Trapped +

–Behavior +
-
 Loyalty versus Behavior
Loyal Not Loyal
(Truly Loyal & Accessible) (Trapped & High Risk)

92% 42% 49% Recommend as a Good 8% 31%

Place to Work 39%
Do things 'Above and 16% 38%
92% 41% 51%
Beyond the Call of Duty' 54%
61% 31% 30% Limit Search 13% 30% 43%
83% 40% 43% Working at Company 12% 26% 38%
In Two Years
43% 24% 19% Resist Offers 7% 16% 24%

Execute Company's 6% 32%

81% 48% 33%
Strategy 38%

NEW
Make Company 9% 40%
92% 43% 49%
Successful 49%
Help Others with 16% 43%
89% 40% 49%
Heavy Workloads 60%
100 80 60 40 20 0 0 20 40 60 80 100
% Extremely Likely
% Very Likely
 2. To Keep Your Top Talent
•
New Year New Job?
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Significant numbers of employees
evaluate their careers at the end of
the calendar year
–
More people start looking for jobs
at the start of the new calendar
year
 2. To Keep Your Top Talent
2007 2005
+ +
Accessible Truly Loyal Accessible Truly Loyal

7% 34% 6% 34%

36% 23% 31% 28%

Attitude

High Risk Attitude High Risk

Trapped +
Trapped
– Behavior + – Behavior +
- -

Source: Walker’s 2007 Employee Loyalty Report

3. To focus on the right things
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Organizations must be efficient in
times like these; avoid trying to boil
the ocean
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Don’t ask questions about issues that
can’t be addressed
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Too often focus is given on the lowest
rated questions without taking into
account the impact these questions
have on employee perceptions
3. To focus on the right things
1 Fairness at Work

2 Care and Concern

3 Trust in Employees

Feelings of
4
Accomplishment

5 Satisfaction Day-to-Day

Source: Walker’s 2007 Employee Loyalty Report

4. To Maintain Morale/Productivity
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People are nervous – open up a
dialogue and listen
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Recent Walker study of HR
representatives found three-quarters of
those surveyed had seen a noticeable
decline in employee morale in the past
several months
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Important to maintain morale during a
downturn
 5. To Emerge Stronger
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The economic climate will improve.
When it does, you want to be stronger,
take advantage of competitive edge

“Best way to predict the future is to create it”

 5. To Emerge Stronger
Truly loyal employees
High-risk employees
100%

91% 89%
80%

60%

40%

35% 31%
20%

0%
Believe the organization Feel positively about senior
is highly ethical leaders having personal integrity
 Key Elements in Measuring
Employee Loyalty
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Include a loyalty metric
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Compare
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Drivers
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Knowing the metric isn’t enough
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Must know what is driving the metric
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Priorities
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Pinpoint what to do with all this feedback
Best Practices for Measuring Loyalty
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Use online methodologies to gather
data
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Reduces costs and dramatically
improves response rates
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Understand the difference between
anonymity and confidentiality
–
Employees expect confidentiality,
not anonymity
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Leverage HRIS and internal systems
 Top Mistakes
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Doing Nothing
•
Trying to do a short, quick and
dirty survey
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Combine key drivers with
performance to determine
priorities
•
Assuming you know what the
problems are
 Vovici & Walker Information
•
Partnered together to bring the best
employee loyalty solution
•
Combines Vovici’s award-winning
technology with Walker Information’s
methodology and benchmarks
•
Enables organizations of all sizes to
measure loyalty while minimizing cost
 What We Provide
•
Access to Vovici’s award-winning enterprise
feedback management platform
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Easily create, deploy and analyze data
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Valid & Reliable Employee Loyalty survey
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Analysis and comparison to Walker benchmark
data
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Personalized report and consultation with an
expert on action plans/next steps
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Starting for as little as $9,995
 Employee Relationship Report
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Focus on:
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Employee loyalty
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Behavioral intentions
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Drivers of loyalty-Care and Concern,
Trust, Fairness, Ethics, etc.
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80-90 questions, provides detail into
the employer-employee relationship
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Standard survey, can add custom
questions, customize open ended
question, and demographics
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Survey takes approximately 20
minutes to complete
Areas Covered
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Attitudes toward the
organization
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Work-related behaviors
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The organization and your
work
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Work factors and their
influence
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Opinions about the
organization
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Opinions about the
organization’s integrity
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Other comments
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Demographic information
Deliverables – Executive Summary
 Deliverables – Detail Reports
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Breaks out every
question on the
survey by every
demographic
segment
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Displays loyalty
information for
each
demographic
segment
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Includes
comments
Deliverables – Guide
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Walks customer through executive
to Understanding
summary and explains the charts and
graphs
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Appendix provides further
explanation on each work factor and
actions to consider
 Questions?

www.vovici.com/loyalty