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Content
1. What is employee engagement?
2. Why does it matter?
3. How do we know if our employees are
engaged?
4. How have organizations achieved high levels
of engagement?
mission or co-workers
Beyond job satisfaction or happiness
Personal meaning in work
•
Pride
•
Belief their organization values them
What is employee
engagement?
• Engagement is not the same a employee
satisfaction.
• Engagement is made up of two elements:
•
Motivation
:
means how hard someone is willing
to work, how much they are willing to make an
extra efort, how much they want to do their
best – in other words, how motivated someone is
to do their job well.
•
Commitment
:
means how much a person cares
about the company they work for; how much
motivated to
work hard
Go the
extra mile
Recommend organization as good
place to work
On the other hand..
•
Not engaged
Not strongly committed to organization
Feels trapped
Gives bare minimum
•
Actively disengaged
Poor relationship with organization
*Harter, et. al., Journal of Applied Psychology
(2002); Watson, Wyatt (2004); Globoforce (2005); Towers, Perrin, Global Workforce Study (2007-2008), Wiley (2011)
A number of studies* show top quartile versus bottom quartile
companies on engagement scores had:
7
Why Employee Engagement?
A number of studies* show top quartile versus bottom quartile
companies on engagement scores had:
8
3.44 points
higher net
proft margin
*Harter, et. al., Journal of Applied Psychology
(2002); Watson, Wyatt (2004); Globoforce (2005); Towers, Perrin, Global Workforce Study (2007-2008), Wiley (2011)
companies on engagement scores had:
9
18% greater
productivity
*Harter, et. al., Journal of Applied Psychology
Why Employee Engagement?
A number of studies* show top quartile versus bottom quartile
companies on engagement scores had:
10
12% higher
customer
satisfaction
*Harter, et. al., Journal of Applied Psychology
(2002); Watson, Wyatt (2004); Globoforce (2005); Towers, Perrin, Global Workforce Study (2007-2008), Wiley (2011)
companies on engagement scores had:
11
62% fewer
accidents
*Harter, et. al., Journal of Applied Psychology
Why Employee Engagement?
A number of studies* show top quartile versus bottom quartile
companies on engagement scores had:
12
52% lower
inventory
shrinkage
*Harter, et. al., Journal of Applied Psychology
(2002); Watson, Wyatt (2004); Globoforce (2005); Towers, Perrin, Global Workforce Study (2007-2008), Wiley (2011)
companies on engagement scores had:
13
51% lower
voluntary
turnover
*Harter, et. al., Journal of Applied Psychology
A number of studies* show top quartile versus bottom quartile
companies on engagement scores had:
14
27% less
absenteeism
Why Employee Engagement?
*Harter, et. al., Journal of Applied Psychology
(2002); Watson, Wyatt (2004); Globoforce (2005); Towers, Perrin, Global Workforce Study (2007-2008), Wiley (2011)
Employee Engagement
Survey fnding
Engagement score for PT XYZ is 75% which places in the Top Quartile
between Root Causes and Engagement, Motivation, and Commitment,
the following table of correlations is provided. Correlations ≥0.80 are
quite strong:
Engagement
Motivation
Commitment
Job Satisfaction 0.95 Job Satisfaction 0.89 Teamwork 0.91 Teamwork 0.91 Empowerment 0.86 Job Satisfaction 0.88 Friendship 0.89 Manager Caring 0.84 Job Clarity 0.87 Manager Caring 0.88 Recognition 0.80 Friendship 0.85 Empowerment 0.86 Friendship 0.80 Company Values 0.83 Job Clarity 0.83 Teamwork 0.77 Company Pride 0.82
Manager
Efectiveness 0.81
Manager
Efectiveness 0.73 Manager Caring 0.81 Company Values 0.78 Career 0.68 Company Policies 0.78
Recognition 0.76 Job Clarity 0.66
Manager
Efectiveness 0.77 Career 0.75 Company Values 0.62 Compensation 0.75 Company Policies 0.70 Work Conditions 0.55 Empowerment 0.74 Company Pride 0.68 Resources 0.54 LeadershipExecutive 0.74
Executive
2015 25th 50th 75thDec 50%ile Gap* Engagement Index 4.16 3.97 4.10 4.22 0.06
Job Satisfaction 4.24 3.89 4.00 4.10 0.24 Teamwork 4.01 3.71 3.83 3.95 0.18 Work Conditions 3.85 3.55 3.71 3.87 0.14 Career 3.73 3.43 3.60 3.77 0.13 Friendship 4.29 4.11 4.20 4.29 0.09 Job Clarity 4.12 3.95 4.06 4.17 0.06 Compensation 3.10 2.80 3.05 3.30 0.05 Manager Caring 4.04 3.90 4.03 4.15 0.01 Empowerment 3.89 3.76 3.88 4.00 0.01
Manager
Efectiveness 3.79 3.70 3.82 3.94 -0.03 Company Values 3.58 3.50 3.65 3.89 -0.07 Recognition 3.81 3.75 3.89 4.03 -0.08 Company Policies 3.47 3.40 3.59 3.77 -0.12 Resources 3.48 3.43 3.61 3.79 -0.13 Company Pride 3.73 3.78 3.98 4.17 -0.25 Training 3.31 3.44 3.63 3.81 -0.32 Executive
Leadership 3.29 3.45 3.64 3.83 -0.35