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Extreme innovations in employee welfare

Jack Hubbard, CEO Propellernet
(Extract from Winter eO&P AMED journal edited by Rob Warwick and Pete Burden)

Jack Hubbard Cartoon

The business world puts profit before people and in doing so cuts off its nose to spite its face. Inspired people and goodwill in relationships are where the true value lies in a business, but in an effort to organise and industrialise we stifle people and throttle value. Jack found that the tools and ideas of the business world were not fit for his purpose as CEO and has been on a 10 year journey trying to build a new mindset and toolset, one that recognises and harnesses human value potential. In this article Jack shares his credo and some of the thinking and initiatives that have helped him on his journey.

Having recently topped the Guardian’s honours list, Propellernet is officially the best small company to work for in the UK. Our company is also accredited with the Investors in People Wellbeing Award and made the Worldblu list of the most Democratic and Free Workplaces in the world. And because of our complete commitment to the health and happiness of our staff, they return the favour by delivering outstanding work, market beating growth and record profits. We were also recognised as the Best Agency and for the Best Campaign at the European Search Awards earlier this year.

The credit for this success belongs to kind hearted MD Nikki Gatenby, everyday genius Gary Preston and the diverse cast of wonderful characters I am privileged enough to work with. For my part, as CEO, I strive to hold a vision and space for them to do their thing. I believe the way to make a company the best version of itself is by hiring outstanding people and creating a culture within which they can become the best versions of themselves. In this article I share my thoughts on how the business world gets this wrong, and how we get it right.

 

People create the future

For the last 150 years the prevailing business paradigm has been one of industrialisation, globalisation and automation. The business world strives to do more at a lower cost. As a result, products and services that were considered high value just a few years ago have been copied, commoditised, automated and outsourced to Asia. Creating more of the same stuff for less money belongs to the robots and the Chinese, so creating better stuff is the only way to go for us.

This is the business of innovation and it is done best by companies who invest in their people because the requisite qualities for innovation (curiosity, creativity and adaptability) are fundamentally human attributes. Innovation is done best by people who embrace the uncertain future with a spirit of adventure, compelled to design a better one. A culture of fear kills this spirit.

Business at its core is about people working together to meet their needs and improve their situation. It is a tool to serve people, not the other way round, as is often forgotten. Employees and customers are human beings and the things that really matter are how these people feel, think and relate. Business is a design tool for improving the things that matter in life, and we should use it for this purpose; to improve life for employees and customers.

 

We are Superheroes

When we start a job, we are given a job description. How we perform this list of tasks is measured through our appraisal process, which forms the basis for how the company values our contribution. Our employer only places value on our ability to perform a narrow set of tasks. We are encouraged to limit our potential, which is why Clark Kent hides his cape at work.

Billions of years in the making through nature’s great evolutionary design, we human beings are pretty special creatures. We are amazing in ways that are beyond our own comprehension and have many superpowers we don’t even know about yet.

At Propellernet we encourage full use of super powers. Every one of our superheroes has a rich tapestry of history behind them and a world of possibilities ahead of them. As individuals they are vast reservoirs of energy, alive with experiences, ideas, contacts, dreams, opinions, emotions and abilities just itching to find a creative outlet. We are discovering new superpowers all the time, and as a team we’ll save the world from the clutches of evil.

 

There’s no accounting for people

The business world is run by accountants but accounting is not about people, it’s about numbers. Accountants regard people as unpredictable liabilities. We have lives, get sick, change jobs and exercise rights. We are an obstacle to profit and a cost to be minimised. HR departments too often exist to protect companies against the legal repercussions of treating their employees badly. Is it any wonder people get sick or leave in search of a better life?

I believe people should be accounted for as assets who appreciate in value over time as they develop relationships, goodwill, knowledge and ideas. The more a company invests in each person, the more of themselves they invest into the company and the more valuable they become as an asset. This value is not recorded in modern accounting practice and until it is, bad decisions will be made at the top, destroying value and creating a mess on the shop floor.

Financial reward is an important but small part of investing in people. People need to rest, to learn, to be inspired, to be challenged and to grow. We all have different needs at different times in life, the most important thing is to be interested in people beyond their job role and invest time to get to know them.

 

Growth isn’t always good for people

Small businesses want to get big enough to be bought out by big businesses so that the founders get rich. Big businesses want to get big enough to become PLCs so that their executive team can liquidate their stock and check out before it all goes tits up. The unsuspecting public then acquire what’s left through pension schemes and wind up holding worthless shares in something they know nothing about, have no control over but are dependent upon for retirement. We blindly chase arbitrary targets around a hamster wheel to serve a system that will ultimately screw us over. Ask your mum or dad if their pension was as good as they were led to believe.

Companies chasing this dream often grow too fast and go pop. More clients increase service headaches, more employees increase HR headaches and more products increase administrative headaches. I don’t know anyone that likes headaches, so why does the business world dedicate so many resources to producing them? Ironing out these issues is easy for an agile gymnast, but impossible for an unwieldy juggernaut. Growing a business of value and happiness is a worthy pursuit, but scaling a business full of suffering is toxic and should not be allowed. Stay small, iron out the pain and scale the joy later.

 

Employees make great shareholders

Many businesses give away big chunks of equity to outside investors, particularly in the early years, because they believe they need money to hire staff, develop products and find clients. They invariably regret it and there’s no going back. If you are creative and keep things lean the money from your early clients will finance cash flow. This way you learn valuable discipline, stay in control of decisions and see a greater share of the rewards.

If you want to sell shares, sell them to your best employees. If they can’t afford it, get creative, there are ways. These people understand your business better than anyone and know exactly what to do to grow the value of it. If they have a stake they will drastically increase the value of the company, along with the value of any remaining shares you hold.

Employee owned companies perform brilliantly because the people who best understand the company retain control of key decisions and share the rewards of good performance.

 

Pay your Fun Taxes

When you have fun, the tax man assumes it can’t be work and taxes you on it as if it were salary. If a business expense can be seen to provide a level of enjoyment to employees it is deemed as a benefit in kind and subjected to an extortionate fun tax. The Inland Revenue assume that work is meant to be miserable and don’t understand that you might be inspired to create something of value while climbing a mountain, dancing in a forest or gazing upon the northern lights. Their perverse logic leads them to believe that the most valuable work gets done in drab offices under fire of angry bosses and RSI injuries.

Most companies ban fun because the fun tax makes it too expensive. Christmas party budgets are slashed, benefits are scrapped, employees become miserable, they leave, then profits start looking miserable. We think it’s worth paying fun taxes and go to great lengths to maximise fun levels despite the cost. We create beautiful workspaces, throw outlandish parties, take adventurous holidays and feast at fine restaurants. And guess what, we boost the economy, attract and retain top talent and do world class work.

 

Champion Wellbeing

When we feel great we do great work and so we are always looking for new angles on health and wellbeing. Meditation, yoga, Pilates, reflexology, head massage and mind clinics can often be seen taking place around our offices, and we regularly invite experts to talk to us on a wider range of wellbeing subjects. As a result we have a caring, healthy and happy culture. If our people experience adversity in life, we are there for them and try to signpost them to appropriate support networks such as doctors, counsellors and legal aid, often picking up the bill.

We encourage the creative arts and have sponsored employees through courses as diverse as glass blowing, improvisational comedy, street dance, pottery and learning to draw. This has strengthened the foundations of our culture and unleashed a wave of creative energy which has driven many innovations. The learning to draw course, for example, sparked a revolution in visual communication which has transformed the work we do with clients.

 

Art for Inspiration

The ever curious Sophie Tanner was astounded by how interesting her colleagues were and saw this as the company’s primary asset. She set about interviewing everyone and documenting their life story, what kind of childhood they had, their philosophies, hobbies, ambitions, favourite music, what animal they saw themselves as. She hired a local artist to draw a cartoon scene capturing each person, commissioned the build of a beehive room and placed a cartoon world for each of our people in a honeycomb cell. Sophie’s “Honeydrome” is a powerful metaphor for our collective intelligence and a great example of art for inspiration.

For a new starter it can take years to get to know just a few people, now they can get to know everyone on day 1. Employees can see that the company places value on the fullness of who they are in life, not just what they delivered at work today. And when we lack empathy for a client project we have a visual signpost to the parents, the skiers, the travellers, the foodies, the musicians, the fashionistas and the yoga teachers.

 

The richness of the Honeydrome

rich honeydrome

 

Will it make life better?

Nikki Gatenby and I were inspired by Olympic gold medallist rower, Ben Hunt-Davies. His crew in the 8 man boat were average at best and without the natural talent of Pincent and Redgrave. They had toiled away for years and gotten nowhere. They had to try something new so they replaced their training programme with a single question, “Will it make the boat go faster?”
They all came up with ideas, and every idea was put to the test. Over the months, bit by bit they discovered many ways to make the boat go just that little bit faster. On the big stage their boat went the fastest and the underdog crew each picked up an Olympic gold medal.

It wasn’t a lengthy plan or set of arcane principles. It was a simple mantra that drove their behaviour every day in a way that would achieve their desired goal. We loved its simplicity and wanted our own one: “Will it make life better?”
The real purpose driving us, the motivation for getting out of bed, turning up every day, hungry to run a great business and deliver great work over and over again, is to make life better. Now if we are ever unsure, we simply ask “will it make life better?” and the way becomes clear. Consequently life keeps getting better.

Instead of making happiness a goal for a tomorrow that may never come, we design it into our everyday experience. And we become more successful tomorrow because we are happier today.

The glorious Dream Machine

The dream machine

 

Revenue-per-person

To calculate revenue-per-person we divide revenue by the number of people in the company. It is this number we are driven to grow because it indicates the relative resources available to make life better for everyone in the company. If we doubled revenue and doubled staff numbers, revenue-per-person would remain the same and there would be no more money to make life better with pay rises and perks. More of the same growth means more work for the same reward. Revenue-Per-Person is aligned to our true purpose of making life better and powers innovation to create more value, not grow more volume.

 

The Dream Machine

When we achieve our revenue-per-person target we make a dream come true by drawing a dream ball from our giant yellow 80’s bubble gum dispenser, our very own “Dream Machine”.

We ask everyone to consider their dreams in life, the things that would really make life better for them and we help them understand how they can influence company performance in a way that will make theirs and other people’s dreams come true.

Our business plan is to make everyone’s dreams come true. It gives us a reason to dream and puts us in control of achieving our dreams. Steve and Jim are off to the Rio World Cup next year, Alan is riding a motorbike across Africa.

 

Making life better begins at home

Only by discovering the fullness of what life has to offer am I in a position to share it, and by living as an example I give the people around me permission and inspiration to explore life and pursue their own dreams.

 

Steve and Jim are off to the Rio World Cup

dream machine

As a mere mortal, time is not on my side. So I seek extreme experiences which help me learn about life in an accelerated way. I’ve scaled the Matterhorn, danced on pirate ships, driven the getaway car from a jail break, challenged CEO’s in their boardrooms, eaten 30 courses in a single day and performed on the main stage at Glastonbury.

This of course is the ultimate in work life balance, but it isn’t as easy as it sounds. There is an oppressive assumption in the business world that if we enjoy something, it isn’t work and doesn’t create value. It’s as if we equate the level of suffering we endure to the amount of value we create. When business leaders behave in this way, sacrificing health, family life and happiness for the cause, they set a destructive precedent for everyone around them and create a culture which sacrifices people on the altar of profit.

Don’t get me wrong, I totally love making life better for myself on company hours, but because it’s not the normal behaviour the world expects from a CEO, I find myself swimming against the tide to make it work, and this can be exhausting. As long as I stay positive and focus my intentions on holding a vision, living the values and making life better for people, I can trust that I’m doing my bit in holding the right space for everyone to do their thing.

Staying positive is an essential part of it, and here are a couple of the practical brain tools I use.

 

Curate Positive Beliefs

We attribute meaning to our experiences through our belief systems. We all have different belief systems, which is why different people experience and perceive the same events in different ways.

For example, I choose to believe that everything happens for a reason and that it serves me in some way. So when something doesn’t go my way, instead of affirming the negative “bad things always happen to me” which will only help you make more bad stuff happen, I instantly think the infinitely more helpful “OK, that wasn’t meant to be for a reason because there is something even better that it would have prevented happening.” Then my mind searches for something better, finds it and makes that happen instead.

I curate my beliefs like a football team and field the team I know will score goals. I’m always scouting for talent and will regularly try out a new player. If they perform badly they’re out. Only consistent performers maintain their place in the squad.

The act of believing tricks the mind into perceiving our experience in ways that are consistent with that belief. I also choose to believe the mind is just another muscle to be put to work for the benefit of my greater self, so I have no problem deceiving it.

Developing an awareness of a conscious self beyond simple mind function in this way enables me to understand people and situations from a broader and more objective perspective. This is a vital skill for business leaders with responsibility for vision and culture.

As this awareness becomes more habitual, I find I can switch off my mind, relax and allow the world to make good things happen in my space. Less effort seemingly delivering better results.

 

Star in your own movies

The media promotes a belief that life is happening somewhere else, and we can only observe it from the sidelines. This gives us a feeling of powerlessness over our lives. When I came to realise this I stopped reading newspapers and watching TV and started paying more attention to my own world, the physical one that I actually live in and can influence.

A friend recently joked that I was too busy starring in my own movie to have time to watch the ones on TV. I thought that was a powerful metaphor which captured it nicely, so now I choose to see myself as a screenwriter and producer for my own life. I write the scenes in my mind then watch them unfold through my eyes. It’s great, I get to play all my favourite roles and cast all my favourite people in all my favourite places.

When you get really good at producing reality it’s essential to stay positive because our moods and emotions control the sort of films we make. If we feel negative we might make drama and horror, if we stay positive we can enjoy action, comedy and romance.

 

Whatever next?

I said earlier that putting people first isn’t an altruistic principle and that’s because for 20 years I have had my own dream that has motivated me to overcome the countless challenges along the way. I close my eyes and this is what I see.

I’m living in a large chalet, surrounded by lush green forests and snow-capped mountains, the faint sound of a waterfall crashing in the distance, wild deer grazing in the valley and eagles soaring high up above in clear blue skies. This is my base of operations for a lifetime of adventures. I select the mission, assemble the team, consult with experts, gather intelligence, pour over maps and check equipment. We set out, the fires of excitement in our bellies. We return, enriched by new experiences and treasured memories. Then we feast.

Tomorrow I fly to the Alps where I am viewing 8 chalets in the valley of dreams. Next year my team will be joining me on a host of new adventures designed to make our lives better. Feel free to join us.

 

Heroes and influences

Here are some of the great people and ideas that have helped me along my journey.
Endless inspiration for conscious business – Karen Smithson
World class mentoring – Simon Conroy
Inspirational Spaces and Dream Machines – Nicola Gobat
Will it make the boat go faster? Ben Hunt-Davies
Freedom and democracy in the workplace www.worldblu.com
Wellbeing and creativity courses www.evolutionarts.org.uk
Business as an enabler of dreams – The Dream Manager by Matthew Kelly
On lifestyle design – The 4 Hour Working Week by Tim Ferriss
A spirit of adventure – Vagabonding by Rolf Potts
Right brain business – A Whole New Mind by Daniel Pink
Embracing change – Who moved My Cheese by Spencer Johnson
The importance of values – Built to last by Jim Collins
On hiring – Who by Geoff Smart
How the mind works – Blink by Malcolm Gladwell
Effective brain management – Unlimited Power by Anthony Robbins

 

About the author

Jack Hubbard is CEO of Propellernet
info@propellernet.co.uk

 

About eO&P

eO&P is an e-journal published by and available from the Association for Management Education and Development (AMED), a charity and membership network for business people interested in knowledge, innovation and networking in the digital age. The Spring 2004 edition of eO&P, guest edited by Pete Burden and Rob Warwick, will be published in April. AMED are always looking for guest contributors.


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Beyond ROWE – VOWE?

The term ROWE – meaning Results Only Working Environment – seems to be pretty popular at the moment.

The idea, in case you haven’t come across, it is that employees are paid for results rather than the number of hours worked.

NixonMcInnes, a local company I work with, following in the footsteps of Yvon Chouinard of Patagonia, implemented the idea of what they call “flexible working” many years ago.

Chouinard’s autobiography was entitled “Let My People Go Surfing” – that title should help you understand the philosophy.

Presenteeism: out, out, out.

What I like about ROWE is that it has been linked to employee engagement – employees who work this way seem to want to stay longer and they enjoy their work more.

And if you measure productivity – numbers of orders processed, for example, or even hours paid for by a client (billable hours) – rather than hours in the office you’ll see better results.

But I wonder if there is something better? I am sure the ROWE experts are on top of this, but this is it in my own words:

The number one principle of ROWE is that “people at all levels stop doing any activity that is a waste of their time, the customer’s time, or the company’s money.”

But my question is: how do people know?

How do they know whether what they are doing is a waste of their time, the customer’s time or the company’s time?

In many large organisations when you join you inherit a whole load of ways of doing things (processes). These are based on an even bigger load of assumptions – visible and invisible – about what is important. Many of these assumptions were made in a time where things were different – they come from the past.

So it seems to me it is perfectly possibly that people in a results only work environment will continue to produce results – that is, be more ‘productive’ – but maybe they’ll be producing the wrong results? Results that don’t actually help the company fulfil its ‘Mission’. Results that don’t actually help anyone.

So here’s a simple alternative: VOWE – the value only work environment. The idea is to do only activities that add value to customers, colleagues, or other stakeholders.

This, of course, requires a clear understanding of what value is. That may seem difficult and off-putting.

But I think most people know what value is. They know what they value.

I value peace and quiet. I value the smile on my child’s face, showing me he is happy. I value a clean floor. I value a beautiful object. Or a bit of software that actually works and makes my life easy.

HR and OD people (and some CEOs) sometimes talk about ‘values’ as if they were something special, something that only the enlightened can hold on to.

But to me a ‘value’ is just what I value. I value honesty and openness. Those are my values.

So actually understanding value is easy for each of us – we know what we value. We know it when we see it, when we touch it, when we feel it.

We need to understand that others value things too – and that what you value may be different from what I value. Value is a perception – ‘beauty is in the eye of the beholder’.

So in a Value Only Work Environment people understand this. And they dedicate their time not just to producing ‘results’ – but to making sure that everything they do gives value to others. Or to themselves.

Apparently when ROWE was introduced into Best Buy some resisters thought it was a wacky new age idea.

So in case anyone thinks VOWE is the same let me cut to the chase: how might you measure success in a business run on VOWE principles?

Simple: you measure profit. But you do need a new definition of profit.

Profit, by my own personal definition, is a measure of the value that your company gives to other people.

Give lots of value to people; and let them reward you with money (yes, money), loyalty and friendship.

Create a culture where employees gain lots of value and let them reward you with loyalty, ideas, and friendship.

I am perhaps being just a little provocative above. But I’d love to know what others think – and in particular, other ideas on what value really is, what profit really is, and whether it is better to work in a ROW, or a VOW environment?

JFPJ4X342354


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Evidence for Conscious Business

Some people would argue that if you need evidence that being more conscious at work is a good thing, you’ll never be persuaded. But there’s also an argument that hard evidence helps – to give confidence and encouragement to those that need it.

So here’s a selection of facts and figures I have put together.

It covers the value of employee engagement, clear purpose, innovation and good leadership. It shows these are what investors look for, and that they are good for a business generally. There is a PDF version here if you prefer to print and read (or send to your ebook).

Investing in  leadership skills:

About 80% of professionals who analyse companies for investors – including investment bankers and executives at private equity companies and hedge funds – say they would place a valuation premium on a company with a particularly effective senior leadership team. And the same percentage said they would discount a valuation if they thought a company’s leadership was ineffective. Analysts and investment professionals placed an average premium of 15.7% on particularly effective leadership, and an average 19.8% discount on companies with leadership that was deemed ineffective.

[Deloitte 2012 How TMT Companies Win The Confidence of Investors]

Stock market performance and shareholder return in relation to conscious business:

Firms of Endearment study – over 10 year period companies that broadly  follow conscious aims outperformed the S&P 100 by ratio of 9:1

[Raj Sisodia, Bentley University]

Stock market performance and shareholder return:

Motivated employees are 52 to 127 percent more productive than those who have average motivation. Companies that have an employee recognition strategy double the return to shareholders compared with those that don’t. 40% of the variability in corporate financial performance comes down to employees sense of fulfillment in the workplace.”

[Richard Barrett, ‘Liberating the Corporate Soul’ – TBD original source]

Growing interest by investors in sustainability, climate change, social factors:

Investors increasingly believe that social and environmental conditions in society can have a direct impact on the business operations of a company and its long-term viability.

In 2011, average support for environmental and social shareholder resolutions topped 20% for the first time, according to research by Institutional Shareholder Services. That’s up from 18.1% in 2010 and 16.3% in 2009.

[Sabine Vollmer  – senior editor – CGMA Magazine March 2012]

 Including more stakeholders improves financial performance:

Despite the drop in performance seen in 2011, companies that are owned by their employees have outperformed FTSE All-Share companies by on average 12% each year.  Over successive three-year periods they have outperformed by 37% and over successive five-year periods by 71%.

[The Employee Ownership Index]

 Transparency:

280 CEOs were surveyed for the report spanning 21 countries. Three-quarters of the CEOs recognised the need for measuring non-financial value. Meanwhile, 76% think the current reporting system places excessive emphasis on financial data. 87% viewed transparency as an opportunity, and 13% viewed it as a threat. The question among many CEOs is how much transparency is too much.

[Research Commissioned by  AICPA and CIMA (the major UK Accounting Bodies) and carried out by Oxford Economics (2012)]

Employee disengagement is expensive and destructive:

In recent years, employee loyalty has plummeted. Here are just a few sobering statistics that may surprise you:

  • Only 30% of today’s employees reported that they were engaged (loyal and productive)
  • 54% reported they were passively disengaged (going through the motions)
  • 16% reported they were actively disengaged (badmouthing the employer, sniping from the sidelines

[Getting Engaged: The New Workplace Loyalty, Mattanie Press, October 2005, By Tim Rutledge]

Congruence and authenticity at work:

In a field experiment carried out in a large business process outsourcing company, it was found that when socialization/induction focused on personal identity (i.e. emphasizing newcomers’ unique perspectives and strengths and authentic expression) it led to significantly greater customer satisfaction and greater employee retention after six months, compared to (a)when socialization focused on organizational identity (i.e. emphasizing pride from organizational affiliation) and (b)when it focussed on the organization’s traditional approach which focused primarily on skills training.

[Breaking Them In or Revealing Their Best? Reframing Socialization around Newcomer Self-Expression By Francesca Gina (Associate Professor in the Negotiations, Organizations, and Markets Unit at Harvard Business School)]
Encouraging newcomers to be themselves rather than adapt to the company culture]

Purpose impacts profit:

A  strong, strategically coherent and well communicated corporate purpose is associated with upto 17% better financial performance

[IMD/Burson Marsteller Corporate Purpose Impact Study 2010. The study is based on research into 213 European companies from 10 industries.]

Employee engagement:

88% of highly engaged employees believe that they can positively impact the quality of their organization’s products;  only 38% of disengaged employees think so

[Towers Perrin 2008]

Only 4% of UK workers exhibit the highest level of engagement with their work.

[Corporate Leadership Council]

Purpose and brand:

40% of a company’s reputation is determined by its purpose and 60% by its performance.

[Burson Marsteller/Penn, Schoer and Berland 2008.]

Lack of employee engagement costs companies re staff turnover, accidents and theft:

Gallup in 2006 examined 23,910 business units and compared top quartile and bottom quartile financial performance with engagement scores.  They found that: Those with engagement scores in the bottom quartile averaged 31–51 per cent more employee turnover, 51 per cent more inventory shrinkage and 62 per cent more accidents. Those with engagement scores in the top quartile averaged 12 per cent higher customer advocacy, 18 per cent higher productivity and 12 per cent higher profitability.

[Gallup in 2006]

Employee engagement and earnings per share:

A second Gallup study of the same year of earnings per share (EPS) growth of 89 organisations found that the EPS growth rate of organisations with engagement scores in the top quartile was 2.6 times that of organisations with below-average engagement scores

[Gallup in 2006]

Employee engagement and innovation:

Gallup indicate that higher levels of engagement are strongly related to higher levels of innovation.

Fifty-nine per cent of engaged employees say that their job brings out their most creative ideas against only three per cent of disengaged employees. This finding was echoed in research for the Chartered Management Institute in 2007 which found a significant association and influence between employee engagement and innovation.  Based on survey findings from approximately 1,500 managers throughout the UK, where respondents identified the prevailing management style of their organisation as innovative, 92 per cent of managers felt proud to work there

[Gallup/Chartered Management Institute in 2007]

Employee engagement and illness:

Engaged employees in the UK take an average of 2.69 sick days per year; the disengaged take 6.19.

[The Macleod Report commissioned by BIS 2009]

The CBI reports that absence due to sickness costs the UK economy £13.4 bn a year.

[CBI]

Employee engagement and interfacing with clients/customers:

70 per cent of engaged employees indicate they have a good understanding of how to meet customer needs; only 17 per cent of non-engaged employees say the same.

[The Macleod Report commissioned by BIS 2009]

Employee engagement and retention:

Engaged employees are 87 per cent less likely to leave the organisation than the disengaged.

[The Macleod Report commissioned by BIS 2009]

The cost of poor employee retention:

The cost of high turnover among disengaged employees is significant; some estimates put the cost of replacing each employee at equal to annual salary.

[The Macleod Report commissioned by BIS 2009]

Employees as ambassadors and relation to NPS (Net Promoter Score):

Engaged employees advocate their company ororganisation – 67 per cent against only three per cent of the disengaged. Seventy-eight per cent would recommend their company’s products or services, against 13 percent of the disengaged.

[Gallup 2003]

Employee engagement and change/flexibility:

Engagement  and involvement are critical in managing change at work; according to Price waterhouse Coopers (PwC), nine out of ten of the key barriers to the success of change programmes are people related; only 24 per cent of private sector employees believe change is well managed in their organisations (15 per cent in the public sector) according to Ipsos MORI.

[Price waterhouse Coopers (PwC) and Ipsos MORI]

The need for employee engagement and conscious business more widely in UK:

Gallup suggest that in 2008 the cost of disengagement to the economy was between £59.4 billion and £64.7 billion.

[Gallup (2008)]

The importance investing in everyone, not just leadership:

The IES/Work Foundation report ‘People and the Bottom Line’ found that if organisations increased investment in a range of good workplace practices which relate to engagement by just ten per cent, they would increase profits by £1,500 per employee per year

[The IES/Work Foundation report ‘People and the Bottom Line’]

Towers Perrin in their 2008 Global Workforce Study of employee views found that the top driver of engagement was senior management demonstrating a sincere interest in employee well-being.

[Towers Perrin in their 2008 Global Workforce Study]

Evidence is not the problem, there is so much of it:

The case for employee engagement – there are so many more research findings in the Macleod Report

[commissioned by the Department for Business (BIS) 2009.]

Consciousness is a rare commodity:

Only 10% of Managers take “Purposeful Action” (a powerful combination of focus and energy).  Meanwhile 30% of managers procrastinate, 20% show detached behaviour and 40% exhibit distracted behaviour.

[Sumantra Ghoshal and Heike Bruch]

Pretending to engage employees doesn’t work:

If employees conclude that a manager is just trying to win points by paying lip service to consulting them — and has no intention of acting on their advice — they are likely to stop offering input and, worse, act out their frustration by clashing with their colleagues.

[When Employees Stop Talking and Start Fighting: The Detrimental Effects of Pseudo Voice in OrganizationsGerdien de VriesKaren A. Jehn and Bart W. TerwelJournal of Business Ethics, 2012, Volume 105, Number 2,  Pages 221-230]