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Employee Engagement Capability Report 2013 - The Results

Posted On: April 16, 2013, 6:21 pm ; Read: 29151 time(s)

The newly released 2013 Employee Engagement Capabilities Report created by AltusQ and RedBalloon, now in its third year, represents a good cross section of organisations. With a range in size including smaller organisations of 50-1000 employees (38% of respondents) to larger organisations of 1000+ employees (26% of respondents) the report gives an insightful look into how well equipped organisatins are for developing Employe Engagement. Additionally the report is completed by those in positions of power which should translate into more accurate responses. 85% of respondents consider themselves to be either an influencer or decision maker within their organisation.

A key 'take home' from this years Employee Engagement Capabilities Report is that Culture, KPI's and Purpose are the big three capabilities that an organisation needs to give attention to. The highest performing and highly engaged organisations have the most capability in these three areas. This initially suggests, and is supported by the data, that nailing these three capabilities within an organisation should lead to good things. As AltusQ & RedBalloon put it:
 
"Get these right and everything else stats falling into place"
 
What's interesting, as in previous years, is that the relationship between Engagement Capability, Employee Engagement and Organisational Performance is maintained. Thus the capability tools from AltusQ & RedBallon can in fact be used as a guide to measuring the Employee Engagement levels within an organisation.
 
This relationship is likely to prove helpful to organisations as a measuring tool as when asked about how they measure ROI of Engagement Spend a whopping 67% of respondents said that they don't! The actual methods used for measuring ROI of Engagement Spend were incredibly varied with results suggesting that of the organisations that do undertake measurement, multiple measurement methods are utilised.  Making use of multiple measurement methods is certainly good practice, especially since 59% of respondents rely on informal feedback from leaders & managers. This is a very 'soft' measurement tool that would need the support of harder measurement tools such as sales and %profit to give a more accurate ROI figure. One reason cited for the potential reduction in measurement of ROI of Engagement Spend is that Engagement Spend has decreased over the previous year and thus potentially less measurement was or was deemed less necessary as less activity was taking place.
 
Capabilities within the average performing and top performing organisations have actually risen and their continued rise over the three year period, albeit fairly slow, is a positive. Organisations are addresses weaknesses in their capabilities in order to drive higher Engagement levels. Conversely the capabilities of organisations within the lowest levels of engagement have fallen significantly.
 
Considering the 5 levels of capability, respondents with the highest overall scores achieved a level of 4/5 in Culture, KPI's and Purpose. Other key capabilities that score highly include Performance Management & Developing People (linked to KPI's & Purpose) as well as Compensation & Benefits. Organisations scoring high but not as highly with their Engagement Scores (60-80%) show the same capabilities are their highest (with levels of 3.5/5) which seems to lead the way.
 
Capability Scores - Organisations 80%+ Engagement Score
 
This reaffirms the statement earlier that getting these three core capabilities right can lead to a higher level of Engagement Capability and ultimately Employee Engagement. Lower scoring organisations have achieved a capability level of 2.5-3/5 in some areas but are lacking high levels for Culture with KPI's and Purpose. Again supporting the claim that those three are the core capabilities to get right.
 
Capability Scores - Organisations with 60-80% Engagement
One factor highlighted by the report that might explain why some organisations achieve higher levels of capability than others, is their ability to communicate the strategy to all elements of the organisation. Including the front-line employees, leaders and managers in strategic decisions and plans ensures buy-in and a higher level of capability across the board. This ability to drive transference is a trait in the higher level organisations.
 
"Culture is King" was a statement put to respondents of whom 83% completely agreed. Further data from the report suggests that when considering culture, it is important to include everyone from within the organisation. When considering 'Whose Job is it Anyway?' organisations with a higher Engagement Score (80%+) responded by choosing 'A combined effort from most' (21%) or 'Everyone' (51%) with lower scoring organisations rating HR (21%) as the role for managing Employee Engagement.
 
Whose Job Is It Anyway?
 
It is also apparent that there needs to be a enthusiasm within the organisation. If enthusiasm around Employee Engagement doesn't exist in some elements of the organisation then it is likely that organisation will have a lower Employee Engagement Score. Organisations with a high (80%+) and a medium (60-80%) level Engagement Score have highly ranked CEO & HR enthusiasm levels (1/5). Comparatively if the CEO has a high enthusiasm level but the leadership team and HR do not, the organisation is found amongst the less than 40% score group.
 
Whose Job Is It Anyway?
 
So what does all this tell us? This report helps us identify the key capabilities that allow for Employee Engagement growth. Why do organisations want Employee Engagement? As this report depicts; the higher the Employee Engagement the better the organisation performs. Considering key metrics of organisations over a 12 month period the report statistics speak for themselves:
 
The Best Reap The Rewards
Organisations with higher Employee Engagement Scores reap the rewards. This is why Engagement is such a big thing that needs to be addressed by so many organisations. It is not just a fluffy concept, it has a real genuine impact on an organisations performance.
 
You can check out the full report from AltusQ and RedBalloon here: http://goo.gl/hZBWy


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