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Products & Services Human Resources Employee Satisfaction and Retention

Employee Engagement and the Service-Profit Chain

ID: HR-58

Pages: 79

Published: Pre-2015

Delivery Format: Online


License Options:

Single User: Authorizes use by the person who places the order or for whom the order was placed.

Sitewide: Authorizes use of the report for a geographic site. All people at site can view the report for a year and copies can be printed.

Corporate: Authorizes use for the entire company for a year and copies can be printed. No limitations for usage inside the company.

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New Research underscores the importance of "engaging employees" in their jobs and companies as a way to foster high productivity, high morale and excellent customer service. Increasingly, companies are innovating on the traditional employee opinion survey and moving beyond simple measurement of employee satisfaction. More than ever, companies are measuring the extent to which employees are "engaged" as the best indicator of employee health.

This report by Best Practices, LLC uncovers best practices in identifying and improving drivers that are proving most effective in engaging employees in their jobs, their companies and their work groups.

Specifically, this 79 page report links successful employee engagement to increased levels of productivity and examines through case studies what practices worked for companies who have turned employee indifference into successful engagement. Tactics described in this report will help your company achieve higher levels of engagement through effective performance management.

This research originated from survey results and speaker presentations introduced at the Global Benchmarking Council's meeting on Employee Engagement.

Industries Profiled:
Manufacturing; Medical Device; Pharmaceutical; Consulting; Computer Software; High Tech; Professional Services; Utilities; Energy; Electronics; Telecommunications

Companies Profiled:
3M; Freescale Semiconductors; BAI; Microsoft; Metrus Group; Star Gas Partners; L.P.; Tennessee Valley Authority; Texas Instruments; Verizon

Study Snapshot

In today's professional environment, effective employees are an invaluable asset. Many companies realize the importance of "engaged" employees as a first step toward increased productivity and customer satisfaction. However, companies face the challenge of understanding the link between employee engagement and productivity and customer satisfaction before they can capitalize on it. Human Resource specialists and Customer Support professionals must examine this relationship and find ways to quantify it.

This report surveys different strategies that companies use to engage employees -- through recognition and personal growth, through strategy and purpose, and through development of a sense of community -- and stresses the importance of managerial accountability in supporting increases in employee engagement. Additional case studies detail the importance of the customer-employee relationship in everyday communication and document successful systems that measure engagement and customer satisfaction.

Key Findings

The following are select key findings from the report executive summary:

An effective performance management system is the cornerstone of engagement -- from goal-setting to reward, recognition and incentive programs.

High performers in engaging employees cut across functional silos to create a sense of connectedness through communities of practice, cross-functional teams, and by creating common work areas. Additionally, high performers recognize employees for their suggestions, employ group brainstorming and employ group listservs to enhance the feeling of connectedness. Also, 75% of high performers hold managers accountable for employee engagement scores.

Employee and customer loyalty attributes reflect each other, supporting the premise behind the importance of engagement which is based on a correlation between customer satisfaction and engagement.

Use organizational development to analyze performance, for example, targeted intervention for improvements.

Key factors in engagement are alignment of employees toward strategy, enabling employees to have the capabilityto engage themselves, and creating the sense of engagement -- creating the sense that individuals are a part of a greater entity.
Table of Contents

I. Employee engagement and customer overview
a) Study objectives and Topics
II. Benchmark class
a) Survey participants
b) High Performers
III. Key Findings
a) How Companies Measure Employee Engagement
b) Linking Engagement and Quality
c) How Companies Effectively Engage
d) Incenting Managers to Own Employee Morale
IV. Internet Benchmark and Survey Presentation
V. Case Studies
a) Star Gas Partners, L.P. -- Connecting Employee Engagement with Customer Loyalty
b) Microsoft -- Increasing Customer and Partners Satisfaction Step by Step
c) Freescale Semiconductors -- Parallel Processes for Employee Engagement and
Customer Loyalty
d) Tennessee Valley Authority -- Cultural Health Index and Employee Engagement
e) "Inside the Box" -- An Action Learning Workshop
f) Texas Instruments -- Driving Continuous Customer Satisfaction Improvement
g) 3M -- 3M Employment Brand Story
h) Verizon --Linking Employee Engagement with Productivity and Customer
Satisfaction at Verizon
i) Metrus Group -- The Dark Side of Employee Engagement
VI. Roundtable Discussions
a) Roundtable 1 -- Survey Development and Administration
b) Roundtable 2 -- Linking Employee Engagement to Productivity and Corporate
c) Roundtable 3 -- Performance Metrics, Tools and Vendors for Employee Engagement Management
VII. Definitions and Resources