Assignment 1 – Employee Engagement
Your Chief Executive is committed to having a more engaged workforce and has asked you to brief the executive team on how this could be accomplished. She has informed you that not all the executive team understand what it means, what the benefits are and what is involved. You have been asked to write an informative and persuasive report which includes:
• An analysis of the meaning, principle dimensions and components of employee engagement and how it differs, if at all, from related concepts such as organisational commitment, employer involvement, job satisfaction
• An identification of the principal drivers and business benefits of having an engaged workforce and a signposting of some of the steps an organisation can take to create a culture of employee engagement, e.g. through job design, discretionary behaviour etc.
• A brief explanation of the need for aligning engagement practises with other corporate components
• An evaluation of suitable diagnostic tools for measuring employee attitude and levels of employee engagement
• An example of an employee value proposition (EVP) to promote levels of employee engagement making reference to what makes a ‘good’ EVP
• Examples of relevant HR strategies to raise levels of employee engagement and address barriers
Evidence to be produced/required
A written report of 3500-4000 words in total. You should relate academic concepts, theories and professional practise to the way organisations operate, in a critical and informed way, and with reference to key texts, articles and other publications and by using organisational examples for illustration.
All references should be acknowledged correctly using Harvard referencing and a reference list provided where appropriate.
I carried out a report to summarise my results and conclusions and to document my recommendations for the plans for employee engagement within Sopra Banking Software. My aim of the investigation was to compare levels of engagement currently with the level of engagement that was measured in November 2017 using the same report. I wanted to determine the following objectives:
• Assess the level of engagement across all our 3 sites
• Identify any problems that current senior management team may not be aware of
• Assess the workforce and how engaged they are
• Increase employee engagement
• Give all employees a chance to have a voice
My survey consisted of 14 questions, designed on Gallup’s Q12, was emailed out to all the current employees at Sopra Banking Software and they were given a 2-week window to complete the survey. When the results were collated and analysed, the following points were concluded:
Overall, the colleagues who work for Sopra Banking Software feel that their colleagues care about them as a person. This was the area that scored the highest, along with having a drive and willingness to want to help the business to succeed and go beyond what is expected of them day to day.
However, some areas did not score so well. Things like receiving praise and communicating what is happening in the business scored significantly lower. Communication and the 121 process could be improved significantly, therefore I suggest a structured training programme with the full support of the HR team.
Contents Page No
1.0 Introduction and Context
2.0 Understand the concept of employee engagement and evidence showing its contribution to achieving business outcomes
2.1 Analyse the meaning, principal dimensions and components of ’employee engagement’ and compare with other related concepts
2.2 Justify the need for alignment between engagement practises and other corporate components if the full benefits of high engagement are to be realised
3.0 Understand the importance of employee engagement as a contributor to positive corporate outcomes
3.1 Identify the principle drivers of employee engagement and evaluate the business benefits for the organisation and different stakeholders
3.2 Explain the application of employee engagement through job design, discretionary behaviour, role autonomy and organisational citizenship
4.0 Know how to implement HR strategies and practises to raise levels of employee engagement in a specific organisational context
4.1 Identify and evaluate the use of diagnostic tools for measuring employee attitudes and levels of employee engagement
4.2 Construct an ’employee value proposition’ and propose relevant strategies to raise levels of employee engagement and address any barriers
4.3 Propose relevant people resourcing, development, performance and communication strategies to raise levels of employee engagement
Sopra Banking Software (SBS) is a Financial Technology organisation who provide software to UK building societies, banks and consumer finance providers across the world. They are rapidly growing in the UK and on a global scale, mainly being driven by the fast changes within similar industries and also technology within banking. SBS was formed as a result of various company mergers before Sopra Steria group bought them when they were named Tieto which then formed Sopra Banking Software. We currently offer our UK customers a front office portal, mortgage and savings suites and asset finance systems. SBS is a subsidiary of Steria Group who are based in France. I have written this report for all UK based Executive Team at Sopra Banking Software. The Executive management team consists of UK Managing Director, Head of HR, Head of Sales, Head of Professional Services, Head of Specialised Market Solutions, Head of Finance and Head of Governance.
Sopra Banking Software were forecasted an increased turnover of 48m euros in 2017 and to be able to achieve this, they needed to increase the number of employees from 235 to 285.
Their aim is to globally lead banking software for the financial services industry. The company’s competitors are all similar in size and have similar products therefore, they are constantly competing for the same customer base. The HR team play a huge part by ensuring that employees have the right people with the required skill sets for their roles. This is monitored through the recruitment process and HR Cycle, making sure that we retain and develop our people by reviewing each individual colleague to see who has the potential to be a future leader.
The HR team advise and assist with the organisations strategy implementation. The TUPE transfer of Cassiopae employees which has now been taken over by SBS, and a restructuring of the senior management team and reporting lines in the UK business. Because of this, it means there is an increase in payroll and benefits data to be processed, more employee relations cases and also more emphasis on social and corporate events through out the year. In the space of 18 months, we have added a payroll administrator, recruitment advisor and an additional HR administrator to the team.
The people in Sopra deliver high quality software and services to customers and are the organisations biggest asset. The HR team are responsible for the recruitment of the right people and they support the company in different ways;
SBS holds a HR committee twice a year (May and October). This is a meeting to discuss each individual employee’s performance and they are rated on if they have any potential for development. This way we can highlight any future talent and also put them an action plan in place to help them get to where they want to be.
Our recruitment advisor attends graduate fairs throughout they year and across the country along with senior managers to try and attract new university graduates for each upcoming September intake.
Some of our employees have gone through numerous business mergers over the last 20 years (Tenhill, Lynx, Attentive, Tieto, Sopra and Sopra Steria) This has brought with it many changes in how the organisation is operated but the products have virtually remained the same. The current teams tend to be engaged in our products and teams that they work closely with but they are not necessarily engaged at a global level.
If we find that an employee is not happy in their role or department, SBS aims to find an alternative more suitable role in the organisation rather than lose the talent. SBS offers excellent benefits packages consisting of 6% company pension contribution, health insurance, life assurance, medical cover, 6% annual performance related bonus, a company share scheme and also the option for flexible working in order to make the appeal of working for SBS as attractive as possible. They aim to be recognised internationally as an excellent employer to attract the best talent.
2.0 Understand the concept of employee engagement and evidence showing its contribution to achieving business outcomes
Employee engagement is the concept of having a driven and fully motivated work force, where all of the employees have a passion and interest in their role within their team and are committed to the success of the wider company. There is a lot of evidence that suggests if engagement levels are high, it can have a positive impact at both individual and organisational levels.
The CIPD describes employee engagement as ‘a combination of commitment to the organisation and its values plus a willingness to help out colleagues’ (CIPD, 2009)
“Employee engagement goes beyond motivation and simple job satisfaction. It can be seen as a combination of commitment to the organisation and its values and a willingness to help colleagues. Here you’ll find information on engagement, employee commitment, morale, loyalty, motivation, job satisfaction, and employee attitude and engagement surveys”. (“The CIPD website” 2018).
There are 3 principal dimensions of Employee Engagement;
Social engagement is when an employee actively takes the opportunity to discuss work related improvements and discusses openly about how they can do things better in their role. Employees who are engaged socially in an organisation will feel more involved in the organisation as a whole.
Affective engagement relates to how positively an employee is attached to the organisation. This kind of employee cares about the organisation, and the goals that is has. They often can strongly relate to the goals of the organisation and are proud to be a part of it. If an employee enjoys their work, they are likely to be happier and in turn, leads to an increase in job satisfaction.
Intellectual engagement is when an employee thinks hard about their job and how they can do the job better. This relates to the need for all employees to be aware of the organisational strategy and future goals so that they know what they need to deliver.
Employee engagement can be compared to other concepts such as job involvement, flow, organisational commitment and job satisfaction.
“Job involvement refers to the psychological and emotional extent to which someone participates in his / her work, profession, and company. Showing up to work on time is half the battle. Top performers are engaged in their work and have high job involvement”. (Study .com website”. 2018).
Flow is a state of mind in which people become totally engrossed and immersed in an activity that they lose track of time. Employee engagement aims to release an employees’ ‘flow’ and put emphasis on the employees’ wellbeing and providing them with the right environment in order for them to work at an optimum level. “Greater employee freedom can create a better sense of “flow”, which enhances engagement, retention, and performance. This can be achieved by loosening your grip on work practices – but you don’t have to let go completely: remove obstacles, set boundaries and meaningful goals, then let work take its course.” (“Harvard Business Review”. 2018).
Organisational commitment is often used as one of the measure of employee engagement. The Macleod Report, Engaging for Success (Macleod, 2009) put forward that there were four enablers of employee engagement:
• Strategic Narrative
• Engaging Managers
• Employee Voice
The above enablers are required to ensure the organisation has a working culture that is both high performing and has commitment to the organisation.
It has been proven that employees who are engaged in their roles tend to feel that they have greater levels of job satisfaction and better wellbeing. Employees who are highly engaged are also more likely to act as advocates for the organisation.
In order for the full benefits of high engagement to be realised, there is need for alignment between engagement practises and other corporate components. Alignment is the connection between strategy and execution and is essential to be able to sustain high performance. Misalignment between employee performance and the objectives of the business can really slow down a company’s growth – no matter how engaged the employees are.
According to Gallup’s State of the American Workforce report, 70% of the American workforce is “not engaged” or “actively disengaged” with their work. The employees here are less likely to be productive and more likely to be emotionally disconnected from their workplace.
Employee engagement plays a big part in HR practise as when it is aligned with organisational aims and objectives, it positively affects the productivity and other business benefits. It is vitally important that the business and HR strategies are aligned as the engaged behaviours of employees will influence the business strategy.