Employees` engagement – effects on business

performance and main drivers

Contents

1. Main Research Questions and Research Database – details

2. Employee Engagement (EE) concept
2.1. Theoretical background
2.2. Employee engagement VS Other Constructs
2.3. AONHewitt definition of EE
3.EE – impact on company performance
4.EE and quality of work
5.Results and trends for Bulgaria
Conclusion

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1. Main Research Questions & Research database

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 2. Research Questions and database

Does and How EE reflects on the How organizations in Bulgaria

overall company performance improve the level of engagement of
and other business metrics? their employees?

360 Bulgarian companies, 13 industries

61 273 employee opinions gathered
587 top managers
4 consecutive years - 2008-2012

Which factors from the working What are the drivers that
environment have impact on influence employee performance
employee engagement? in the recent years in Bulgaria?

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 The Measurement Scale
Opinions were measured on a scale of 6 (1= I absolutely do not agree, 6= I totally agree), so as to force even those to
voice an opinion for whom it is harder to explain/voice what they think.

Completely Rather not Not satisfied at

Satisfied Rather satisfied Not satisfied
satisfied satisfied all

Totally agree Agree Rather agree Rather not agree Disagree Totally disagree

6 5 4 3 2 1

Agreeing Positive Negative Disagreeing

respondents hesitants hesitants respondents

Section: About the Study

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2. Employee Engagement (EE) concept

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2.1. Theoretical background

3. Employees perspective

2. Business/Management
perspective

1. Academics – Kahn,
Macey, Schaufeli

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2.2. EE VS Other Constructs

Organisational Organisational
Citizenship commitment
Behaviour
(OCB)

Employee
Employee Engagement satisfaction
motivation

Involvement Dedication

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2.3. AonHewitt definition of Engagement(1)
SATISFACTION
Do people like working for this company?

COMMITMENT

Do employees want to contribute to the success of the company?

AONHewitt ENGAGEMENT
Employees do want to contribute to the success of the company,
and they really act upon that?

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 Engagement is a behavior…

Engagement is the state of

emotional and intellectual involvement
that motivates employees to do their best work.

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 2.3. AonHewitt definition of Engagement(cont.)
Three key behaviors cumulatively indicate strong Engagement:

SAY STAY STRIVE

Employees consistently Employees have an intense Employees exert extra effort

speak positively about the
organization to co-workers,
potential employees and
most critically, customers
(current and potential)
desire to be a member of and engage in work that
the organization contributes to business
success

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3. EE – impact on company performance

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3.Does Engagement Really Drive Business Results?

We have identified strong and consistent links between engagement and

performance measures:
– Productivity and retention
– Employee commitment, in-role and extra-role behavior
– Customer satisfaction and loyalty
– Performance
– Quality
– General financial results - as profitability, revenue growth, earnings per share
Multiple lines of evidence demonstrate and support this link:
– Cross-Company and Employee Engagement and Motivation research
– Academic research
– Case studies

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3.Does Engagement Really Drive Business Results? (cont.)
What links have you established to employee engagement?

Employee turnover 41%

Productivity 28%

Retention of key talent 26%

Customer satisfaction or loyalty 26%

Absenteeism 21%

180° / 360° manager feedback 18%

Financial indicators 9%

30%

% of organisations

Source: Aon Hewitt Future of Engagement Study May 2010

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4. EE – impact on quality of work

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4.EE and quality of work
Engaged employees

…understand the
organization’s …passionate and
objectives and their role enthusiastic about
their work

…have a strong …motivated to go

desire to be part of above and beyond in
the organization their jobs

…have significantly
better outcomes

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 4.EE and quality of work(cont.)

Senior Leadership Strong Senior Leaders

1.Organization is considered a best place to work

Employee Value 2.Organization delivers on promises to employees
Proposition 3.Support learning and development of employees

1.Benefit plan meets needs well

2.Recognition for accomplishments
Total Reward
3.Future career opportunities
4.Paid fairly

Enabling 1.Tools and resources to support productivity

Performance
2.Work processes support productivity

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5. Managing Engagement among Bulgarian employees

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Bulgarian employees - 2012

Colleagues and
Physical Work the support
environment they get from
them

High Satisfaction
Quality of the
work equipment

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Bulgarian employees- 2012

Career Pay and

opportunities benefits

Low Satisfaction
Senior
Leadership

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Thank you!

[MM/DD/YYYY]
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