Report: Lessons in CX Excellence, 2016

1601_LessonsInCXExcellence_COVERWe just published a Temkin Group report, Lessons in CX Excellence, 2016. The report provides insights from eight finalists in the Temkin Group’s 2015 CX Excellence Awards. The report, which is 100 pages long, includes an appendix with the finalists’ nomination forms. This report has rich insights about both B2B and B2C customer experience.

Here’s the executive summary:

This year, we chose eight organizations as finalists for Temkin Group’s 2015 Customer Experience Excellence Award. The finalists for 2015 are EMC Global Services, Hagerty, InMoment, Safelite AutoGlass, SunPower, The Results Companies, Verint, and Wheaton | Bekins. This report provides specific examples describing how these companies’ CX efforts have created value for both their customers and for their businesses. We also highlight best practices across the four customer experience competencies—purposeful leadership, compelling brand values, employee engagement, and customer connectedness. We have included all of the finalists’ detailed nomination forms at the end of this report to help you compile examples and ideas to apply to your own CX efforts.

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Here are some highlights from the finalists:

  • EMC’s commitment to delivering an exceptional customer experience begins at the top and filters down through the rest of the company. For over 10 years, the company’s Total Customer Experience (TCE) program embodied what it meant to be “customer-first” and helped transform the company from a leader in storage to a leader in big data, cloud, and trust technologies. In order to continue improving in the field of CX in 2015, EMC’s senior leadership sponsored the implementation of the Next Generation TCE program, with the mission to “Enhance the total customer/partner experience, leveraging a data-driven approach for continuous improvement throughout the customer/partner journey.” The Next Generation TCE program encompasses all aspects of the company, from brand promises, to engaging and recognizing employees, to providing independent research on customer’s challenges and future needs.
  • Hagerty is one of the leading insurance providers for collector vehicles in the entire world, insuring more than one million vehicles in North America and the U.K. and employing over 600 people. Hagerty’s company-wide vision is to impact every collectible vehicle owner in the world in a positive and useful way. Their client experience strategy focuses on creating clients for life who will become partners in growth. This strategy aligns with the company’s aforementioned vision and helps Hagerty maintain a client- and agent-centered culture, and this culture includes a robust voice of the customer (VoC) program, complete with their signature Net Promoter Score® (NPS) model, a client-centered design process, and touchpoint and engagement programs aimed at celebrating clients using anniversary cards. Hagerty knows that communication is essential for executing its client experience strategy effectively, so it strives to provide effortless service and enhance relationships by doing things like alerting clients to pending storms.
  • During its inception in 2014, InMoment—a CX and VoC provider—created its own internal CX program that is built on listening to and engaging customers. Every month, the company administers customer surveys to collect general feedback, see what customers love, and learn what needs to be improved. InMoment distributes this data to client service teams and product teams so they can put it into action and help shape the accessibility and interface of the products. Executive involvement at InMoment is key. The executive team regularly meets with a client advisory board to gain a deeper understanding of its customers’ experiences, amassing recommendations that the company then incorporates into business practices. One such feature created from customer feedback is a customizable client onboarding kit that gives clients an inside look into what to expect from the onboarding process. The most unique aspect of InMoment is its culture, which is centered on a concept called The Red Shoes Experience, which recognizes exceptional individuals. The company preaches about The Red Shoes Experience to both employees and to clients, and the philosophy stands on five pillars: Awareness, Gratitude, Everyone Has a Story, Respect, and Put Yourself Out There.
  • To support its corporate vision of becoming the “natural choice for vehicle glass repair and replacement services in the U.S.,” Safelite AutoGlass adopted two strategic principles—People Powered and Customer Driven—which are rooted in the idea that engaged employees create loyal customers who, in turn, help the company grow. Each of these principles is built on four cornerstones, including leadership, caring, focusing, and listening. For example, when customers voiced concerns about Safelite.com, the company entirely overhauled the website, not only making it mobile-friendly, but also including features like a customizable portal where customers could save quotes and return to them at a later time, educational videos meant to walk customers through the process, and faster functionality to reduce steps when obtaining price quotes or scheduling appointments. In 2015, Safelite also expanded its predictive analytics tools to include forecasts of major weather occurrences in order to drive effective catastrophe response team labor management so techs could be available where and when the customers needed them.
  • The sustainable energy company SunPower has a corporate-wide CX strategy founded on three core elements: Knowing our Customers, Creating a Branded Experience, and Driving Engagement with Customers and Employees. SunPower used a customer-validated journey map to chart emotional responses at each phase of the lifecycle, making sure to represent the stages with cross-functional stakeholders who then determined the ideal outcomes for the customer throughout the journey. To create a branded experience, the company started a Customer First! initiative and formed teams for each top issue. These teams were responsible for designing improvements with the customers in mind. They worked to align the customer experience with the brand promises and mission, “to make solar the most compelling energy choice, to put customers at the heart of all we do, to inspire our people and communities to thrive, and to build a more sustainable future.” SunPower keeps its employees and customers engaged by connecting them to each other and the company at customer council events, where homeowners can interact with each other and the employees and discuss any shortcomings or successes.
  • The Results Companies’ CX functions on an operating model called CX360. This model sets forth a brand promise to continuously innovate and propose customer-centric solutions while providing unique and inspirational experiences. CX360 is founded on three guiding principles – People, Knowledge, and Empowerment. The Results Companies preaches CX360 to its 11,000+ employees who work in 17 locations across the U.S., Philippines, and Latin America. The company attributes its continued success and growth to this distinct operating model.
  • Verint’s CX program combines cross-departmental customer feedback with a dedication to minimizing the amount of effort it takes for both customers and employees to achieve changes based on this feedback. Verint’s success stems from the company’s interactions with customers, who provide an outside-in perspective on Verint’s journey map, which is called the Customer Experience Wheel. This wheel—which the company displayed at its 2015 Annual User Conference—maps the emotional component of the experience across every interaction. It has improved the CX program by highlighting “moments of truth” and helping the company adapt how it monitors Verint’s progress towards customer-centricity. In October of 2015, Verint also hosted an Internal Customer Week during which employees could commend colleagues for delivering exceptional performances in the CX field, and they could commit to delivering outstanding customer service for life.
  • In 2015, Wheaton | Bekins deployed a group of cross-functional employees to redesign their Customer Experience Report (CXR) by adding NPS questions, including more customer touchpoints, and uncovering more actionable data. Analysis of the CXR revealed that, of all the touchpoints, communication impacts customer perceptions of Wheaton | Bekins at least three times more than any other touchpoint. This analysis also showed that 39% of customers heard about the company through previous interactions or referrals, making this group one of the largest segments that the company serves. Wheaton | Bekins took the information from this analysis and integrated it into their Qualitative Journey Map, adjusting each step to include a communications component. The company also used these insights to create a Quality Assurance Process (QAP) to enhance the written and verbal information provided during each phase of the journey. To recognize and incent over 350 agents and 1,000 drivers, Wheaton | Bekins created a Total Quality Commitment award and a driver rating program, and both these systems operate on customer feedback from the CXR and performance data.

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If you enjoyed this report, check out Lessons in CX Excellence, 2015Lessons in CX Excellence, 2014Lessons in CX Excellence, 2013.

The bottom line: There’s a lot to learn from these CX Excellence Finalists.

P.S. Net Promoter Score, Net Promoter, and NPS are registered trademarks of Bain & Company, Satmetrix Systems, and Fred Reichheld.

A Look Back At “The Year Of The Employee”

As we start moving ahead in 2016, The Year of Emotion, I wanted to look back at last year’s theme.

logoIn our listing of customer experience trends for 2015, I labeled 2015 as “The Year of the Employee.” To help accelerate the focus, we created our Engage Employees campaign. I hope that you were able to find ways to focus on your employees last year, and that those efforts continue into the future.

Here is some of the relevant content that we created in 2015:

The bottom line: Employees are critical for customer experience success.

Report: B2B Customer Experience Best Practices

1510_B2B CX Best Practices_COVERWe published a Temkin Group report, Business-to-Business (B2B) Customer Experience Best Practices. This report provides data on the state of customer experience (CX) in B2B as well as 20 CX best practices across five critical B2B processes. Here’s the executive summary:

Temkin Group research shows that although business-to-business (B2B) organizations are raising their customer experience (CX) ambitions, they still have a way to go before achieving their goals. Despite the fact that most large B2Bs have a low level of CX maturity, our research shows that 57% of them aspire to deliver industry-leading customer experience within three years. However, to improve their CX, B2Bs must master Temkin Group’s four customer experience core competencies: Purposeful Leadership, Compelling Brand Values, Employee Engagement, and Customer Connectedness. Our research uncovered 20 practices that B2Bs can emulate when applying those competencies across these five key business processes: sales and account management, implementation/project execution, support and issue resolution, partner alignment, and product management and innovation. To assess your organization’s CX maturity, use Temkin Group’s Customer Experience Competency Assessment and compare the results to data from other large B2B firms to chart your path to improvement.

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The report examines the state of B2B CX, including the results from large companies that completed Temkin Group’s CX Competency & Maturity Assessment:

1511_B2BCXMaturity

To help B2B organizations raise their CX maturity, we identify 20 best practices for mastering Temkin Group’s four customer experience core competencies: Purposeful Leadership, Compelling Brand Values, Employee Engagement, and Customer Connectedness. These practices are aligned with five key B2B activities: sales and account management, implementation/project execution, support and issue resolution, partner alignment, and product management and innovation:

1511_B2B5Processes

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100 Customer Experience Tips in 105 Characters (Or Less)

I’ve decided to take on a personal challenge: Tweeting (@btemkin) a new customer experience tip for 100 straight days.

100CXtips_v2After accounting for the overhead in each tweet (like links back to this post), I’m only left with about 105 characters. Hopefully I can keep up the pace and pack insight into that limited space. I’ll be using the hashtag, #CXtip, so you can follow me on twitter (or just keep coming back to this post).

The tips will cover the four customer experience core competencies: Purposeful Leadership (PL), Compelling Brand Values (CBV), Employee Engagement (EE) and Customer Connectedness (CC).

Here are the 100 #CX Tips:

  • #CXtip 1Examine #insights for #customers’ journeys, not for individual, siloed interactions. (CC)
  • #CXtip 2: Engaged employees are extremely valuable assets. They’re worth even more of your investment. (EE)
  • #CXtip 3: You can’t fake it. Assume that customers & employees will always figure out what’s real & act accordingly. (PL)
  • #CXtip 4: Great #brands are built on making, embracing & keeping promises, so be clear about your #customer promises. (CBV)
  • #CXtip 5: #CustExp encompasses success, effort, & emotion. They all impact loyalty, but #emotion rules. (CC)
  • #CXtip 6: Don’t waste customers’ time asking them questions unless you are prepared to act on what they say. (CC)
  • #CXtip 7: #Employees are more #engaged when you ask for their feedback and act upon what they say. (EE)
  • #CXtip 8: Build commitment by appealing to #employees’ hearts, shared values & intrinsic motivations. (PL)
  • #CXtip 9: Not all customers are the same. Stop treating them as if they are. Think of using #personas. (CC)
  • #CXtip 10: What people experience is not what they remember; so take advantage of how people remember things (CC)

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eBook: 15 Tips for Engaging Employees

1510_15TipsToEngageEmployees_CoverIn honor of CX Day, Temkin Group is publishing a free eBook: 15 Tips for Engaging Employees. Here’s the executive summary: 

It is impossible for an organization to deliver a great customer experience without an engaged workforce. To help you engage your employees in your customer experience journey, we have compiled a list of 15 examples of how leading-edge companies are practicing what Temkin Group calls the “Five I’s of Employee Engagement”—Inform, Inspire, Instruct, Involve, and Incent—which you can modify and emulate at your own firm. 

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Report: Creating and Sustaining a Customer-Centric Culture

1507_CreatingCXCulture_COVERWe just published a Temkin Group report, Creating and Sustaining a Customer-Centric Culture. Here’s the executive summary:

Temkin Group defines culture as how employees think, believe, and act, and if an organization wants to differentiate its customer experience, it must address each one of these areas. However culture change is not easy. Culture change efforts are often impeded by common pitfalls, such as ignoring the existing culture or becoming impatient at the pace of change. To make this effort smoother, Temkin Group recommends adopting an approach we call Employee-Engaging Transformation (EET), which consists of five practices: Vision Translation, Persistent Leadership, Middle Management Activation, Grassroots Mobilization, and Captivating Communications. In this report, we’ve compiled case studies of how five organizations—Hagerty, Hilton Garden Inn, Oxford Properties, Safelite AutoGlass, and Transamerica—apply these EET practices to create and sustain their customer-centric cultures. To help your company discuss its goals around culture, use Temkin Group’s Cultural Planning Map.

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This graphics provides an overview of the details on how five companies are driving culture change.

1509_CultureCaseStudies

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The bottom line: Promoters are much more valuable than detractors.

Winners of the Engage Employees Challenge

logoThank you to everyone who has pledged to Engage Employees and who has participated in the Engage Employees Challenge where we asked people to provide examples of how they are engaging employees within their organizations.

Temkin Group has selected four winners who are each being sent a $250 gift certificate to Amazon.com. Here are their great ideas:

Nancy Gallant: Employee Engagement Model

As part of the Change Management Planning Team which supports a number of Customer Contact Centres across the country we have been demonstrating the value of engaging employees to increase the rate of adoption of change. To achieve this we have developed an Employee Engagement Model with engagement activities across the Planning, Implementation, and Benefits Realization phases of projects.

A key ingredient is the creation of Champions of Change amongst the employees. To do this we created the following employee groups:

  • Employee Action Teams: Frontline & Management teams that are impacted by the change. Responsible for providing insight and recommendations on training, communication and implementation of ‘initiative’ at stages of the change.
  • Employee Engagement Advisory Council (EEAC): A subset of the Employee Action Teams are selected to join members of the project team and business representatives at this council. The Advisory council acts similar to a steering committee and is responsible for reviewing and signing off on communication, training, and benefits realization recommendations to sponsors.

Following details employee involvement across the phases of the project lifecycle:

  • Planning:
    • Validate the current state assessment with EEAC & Action Teams
    • Complete a PCM assessment with EEAC. The goal to this activity is to identify desired behaviours, mindset and attitudes for employees & identify strategies to mitigate impact to employees.
    • Conduct Action Teams (management and frontline): gather feedback and recommendations on implementation, communication and training.
    • Learning & Communication assessment: Review & confirm learning & communication assessments with EEAC. Ensure close loop with EEAC as changes are made
  • Implementation:
    • Pilot with cross section of frontline and leaders from the EEAC and Action Teams :
      • Gather feedback from pilot group identifying areas of opportunities and recommendations for addressing any opportunities.
      • Incorporate learnings & feedback into the training i.e. support tools, FAQs, etc.
      • Continuous close loop with EEAC and Action teams as changes are made
    • Monitor results post launch:
      • Gather and assess feedback from Action Teams & EEAC
      • Continuous close loop with EEAC & Action teams on any identified gaps
  • Benefits Realization:
    • Based on assessment of progress towards key project success measures EEAC confirms if desired behaviours, mindset and attitudes have been achieved
    • Close the loop with Action Teams & EEAC

Sibylle Huffman: Pat on the Back

Employees love to be recognized, not just for big successes and long nights spend on projects, but also their every day efforts. In my group we have implemented giving ‘Pats on the Back’ many years ago to improve morale and teamwork. The concept was simple. All my staff were asked to do is to give a ‘Pat on the Back’ to a coworker, staff member, or peer for any act of kindness and support given to one another, regardless of how big or small the gesture may be. In return, anyone who earned 5 ‘Pats on the Back’ received a $25 gift card to a place of their choice. Building an environment where support and positive attitudes are encouraged creates an infectious atmosphere and culture that makes them feel appreciated and constantly motivates employees to do more. When gift cards are handed out to the staff, it’s a big deal. The team gathers together and every recipient receives a round of applause while the gift card is handed to them, creating another moment of pride.The team has become an incredibly cohesive, supportive, and high functioning group. A small gesture, and oftentimes just a simple ‘thank you’ can go a very long way in making employees feel valued and subsequently engaged. I have found many times that the key to success is consistency. Our groups philosophy of giving ‘Pats on the Back’ is spreading throughout the organization. Choose your attitude in the office and don’t forget to say thank you for the big and little things that way to frequently go unnoticed because we are all too busy. I pledge to Engage Employees!!

Roger Pugsley: oPositive Intranet Site

We have implemented an Intranet site we call “oPositive”. Picture a Pinterest lookalike site allowing employees to post stories with Facebook functionality (other employees can like, comment or share stories).

Employees are sharing an average of 50 stories per month on anything to do with CX: best practices, successes, customer feedback or recognizing their peers who have exceeded customer expectations.

It’s fun, uplifting, and very engaging!

We also mine the stories to identify winners of our annual “Customer Service Excellence” and “Story Teller” Awards. We have great people with great ideas. We therefore leverage oPositive content to feed “Site Initiatives We Love” to share great ideas and best practices with other sites across our portfolio. Collaboration is alive and well at Oxford!

Lisa Hrnken Ramirez: New Employee Scavenger Hunt

At NetSpend, we like to engage employees from their first day on the job. We created a new employee “scavenger hunt” using the mobile app Scavify. The hunt guides new employees through a series of tasks that connect them to other employees, our mission and our customers. Activities include having lunch with someone in another department, taking pictures with a tenured employee, listening to customer service calls and using our product features to name a few. Now new employees have a fun way to learn about the company, their fellow employees and our customers. New employees also get to show their unique personalities as the upload pictures of themselves accomplishing the tasks.

The bottom line: An engaged employee is worth the investment.

Want to Improve Well-Being? Sleep for 7 to 8 Hours

One of the themes from the positive psychology movement is the importance of sleep. Research has shown that happiness is very reliant on people getting enough sleep. Check out Ariana Huffington’s excellent Ted Talk where she identifies sleep as a critical ingredient to success.

We decided to test that theory in our most recent study of 10,000 U.S. consumers. We examined the degree to which consumers agree with a series of statements about their well-being, and then compared responses from people based on the typical amount of sleep they get. As you can see below, people who get 7 to 8 hours of sleep per night are the most well off. 

1508_WellBeingBySleep2

People who get 7 to 8 hours of sleep per night are the most likely to feel as if they are:

  • Happy
  • Loved and appreciated
  • Healthy
  • Financially secure
  • Physically fit

The bottom line: There’s almost nothing more precious than 7 to 8 hours of sleep.

Employees Need to Feel Like They’re Contributing

How people feel about what they are doing (intrinsic motivation) is a key to sustaining their focus, energy, and commitment. One of the ways for companies to tap into this intrinsic motivation is to find ways for employees to feel as if they are contributing to the organization’s success (which is consistent with lessons from positive psychology).

As you can see in the chart below, people who believe they are contributing are:

  • More than twice as likely to help someone at work
  • Almost four times as likely to do something unexpectedly good for the company
  • More than twice as likely to make a recommendation
  • More than twice as likely to recommend that a friend apply for a job
  • 36% less likely to look for a new job
  • 30% less likely to take more than one sick day

1507_PowerOfContributing

The bottom line: When people feel like they contribute, they contribute even more.

Report: Employee Engagement Competency & Maturity, 2015

1507_StateOfEE2015_COVERWe just published a Temkin Group report, Employee Engagement Competency & Maturity, 2015. Here’s the executive summary of this annual review of employee engagement activities, competencies, and maturity levels for large companies:

Engaged employees are critical assets for any customer experience effort. Our research of more than 200 large companies shows that front-line employees are the most engaged, while back office employees are often neglected in employee engagement efforts. We also found that two-thirds of companies survey their employees at least once a year, but less than half of executives consider acting on the results as a high priority. We used Temkin Group’s Employee Engagement Competency & Maturity Assessment to gauge the maturity levels and efforts of these companies across our five competencies, called the Five I’s of Employee Engagement: Inform, Inspire, Instruct, Involve, and Incent. We found that less than one out of five companies have reached the top two levels of maturity, Enhancing and Maximizing. This percentage of very mature companies is about the same as in 2014, but the percentage of companies in the lowest two levels of maturity has dropped from 67% to 56% since last year. We also found that many companies face challenges when trying to make improvements. The lack of a clear employee engagement strategy remains the number one obstacle that’s been cited by respondents over the previous three years. We compared companies with above average employee engagement maturity with those with lower maturity and found that the leaders deliver better customer experience and also have better financial results than their counterparts.

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Here’s an excerpt from one of the 20 graphics:

1507_EECompetencyMaturityResults

Here are some additional highlights form the report:

  • The percentage of companies in the top two stages of employee engagement maturity has stayed the same since last year (19%), but the percentage of companies in the lower two sages has declined from 67% in 2014 to 56% on 2015.
  • Sixty-nine percent of large companies measure employee engagement at least annually, but only 45% of companies have executives that treat taking action on the results as a high priority.
  • The most common obstacle to success identified by respondents is the lack of a clear employee engagement strategy.
  • We compared companies with more mature employee engagement efforts with those that have less maturity. Seventy-two percent of the more mature companies have above average customer experience compared with 48% of the other companies.
  • Seventy-five percent of the more mature companies had better financial performance than their competitors’ compared with 50% of companies with lower employee engagement maturity.
  • Executives in companies with more mature employee engagement efforts are almost 3.5 times more likely to treat taking action on employee engagement studies as a high priority.
  • Companies with more mature employee engagement efforts are more than twice as likely to have their customer experience and HR organizations work together on their employee engagement efforts.
  • The report includes data for benchmarking your organization’s employee engagement competency and maturity levels.
  • Here’s a link to the 2014 study.

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The bottom line: Companies should invest more in employee engagement.

What Do People Want in a New Job? Flexibility

As part of our ongoing research around all aspects of employee engagement, we examined the things that people look for in a new job. No surprise, compensation is a key item. But it’s not at the top of the list.

As you can see in the chart below which is based on a study of 5,000 U.S, employees, people are most interested in finding a job that has flexible work hours. Compensation and location and are next on the list, with about the same appeal.

We also examined how the data differs across age groups of consumers. Compared with the overall U.S. average:

  • 18- to 24-year-olds want to enjoy life. They selected flexible work hours, fun work environment, and the opportunity to be creative more than any other group.
  • 25- to 34-year-olds want career growth. They selected the opportunity for professional advancement and working for a person they can learn from more than any other age group.
  • 35- to 44-year-olds want the money. They selected compensation more than any other group.
  • 55- to 64-year-olds want meaningfulness. They selected working for a person they like and an organization they admire more than any other group.
  • The 65+ group want convenience and training. They selected location, training, and vacation time more than any other group.

1507_NewJobGoals
The bottom line: People care about more than just compensation

Walmart’s Pay Increase Will Probably Lower Costs

Walmart recently announced that it plans to raise wages for more than 100,000 of its managers and employees in specialized departments. Why would the “everyday low prices” retailer add a ton of new costs to its ongoing operations?

I want to explore a hypothesis that this move will actually lower Walmart’s long-term costs. I know it sounds counter-intuitive; how do you lower costs by spending more? The answer comes from understanding the Employee Engagement Virtuous Cycle.

Temkin Group's Employee Engagement Virtuous Cycle

As you can see, a more engaged workforce can drive even better financial results. One of the reasons is that engaged employees are much more productive, they’re willing to work harder. While compensation is not the key motivator for engaging employees, it’s hard to engage employees who don’t believe that they are being fairly compensated.

As you can see below, 59% of employees who believe they are appropriately compensated are highly likely to do something good for the company even if it’s not expected of them, compared with 45% of employees who do not believe they are appropriately compensated.

TGVirtuousCycle

This move by Walmart will certainly get a lot more employees to believe that they are appropriately compensated. Think about how much value (and cost savings) those employees can create by doing good things for Walmart. I’d bet that it will more than cover the costs of the pay raises.

The bottom line: Sometimes you can save money by paying your employees more.

Report: Activating Middle Managers to Drive CX Change

1505_ActivatingMiddleManagers_COVERWe just published a Temkin Group report, Activating Middle Managers to Drive CX Change. Here’s the executive summary:

It’s hard to get any group of employees to change their behavior when their managers are still reinforcing old processes, measurements, and beliefs. Middle managers show up in organizations under a variety of titles, but regardless of the descriptor, they are the ones who execute plans, lead teams, and direct collective efforts to produce results. Because of the importance of these responsibilities, Temkin Group made “Activating Middle Managers” a key strategy in its change model, Employee-Engaging Transformation. In this report, we examine five categories of best practices for successfully activating middle managers in organizational change efforts: Involve Middle Managers in Shaping the Change, Engage Middle Managers in Goal Setting, Train Middle Managers on Key Skills, Provide Middle Managers Tools to Engage their Teams, and Connect Middle Managers with Customers. In this report, we also describe the critical role that senior leaders must play across all of these strategies.

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The report contains details on 21 best practices across five categories:

1506_ActivatingMiddleManagers21BPs

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The bottom line: You can’t drive change without activating middle managers.

Report: Engaging Millennials in the Workplace

1503_Millennial Engagement_COVERWe just published a Temkin Group report, Engaging Millennials in the Workplace, which provides five employee engagement strategies for younger workers. Here’s the executive summary:

Common estimates predict that the Millennial generation—those born between 1980 and 2000—will make up 60% of the workforce by 2020. As with each previous generation, this group of employees brings its own set of expectations, attitudes, and approaches to the job, which creates both challenges and opportunities for the organizations that employ them. Temkin Group research found that compared to other generations, Millennials desire opportunities to learn and advance their careers as well as opportunities that allow them to be creative and work flexible hours. To engage Millennials more effectively in the workplace, companies should deploy five strategies across Temkin Group’s Five I’s of Employee Engagement. These five strategies are: Expand Job Descriptions, Create Connections, Make Work Matter, Allow For Flexibility, and Develop Millennial Leaders. We also added a checklist to help HR departments drive these five strategies across their core processes.

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Here’s an overview of the five strategies:

1503_MillenialStrategies

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The bottom line: Engaging Millennials is no longer an optional focus.

Report: Employee Engagement Benchmark Study, 2015

1502_EEBenchmarkStudy15_COVERWe just published a Temkin Group report, Employee Engagement Benchmark Study, 2015, which is our annual analysis of U.S. employees. Here’s the executive summary:

We used the Temkin Employee Engagement Index to analyze the engagement levels of more than 5,000 U.S. employees. We found that although employee engagement overall has increased over the past year, engagement levels still vary by organization, industry, and individual. Companies with stronger financial performances and better customer experience have employees who are considerably more engaged than their peers. Our research also shows that out of all the industries, the construction sector has the highest percentage of engaged employees, while the transportation and warehousing sector has the lowest. We additionally found that large companies have a lower percentage of engaged employees than smaller companies do. On an individual level, our research shows that frontline employees, high-income earners, and males tend to be more highly engaged. Given the significant value of engaged employees, we recommend that companies improve engagement levels by mastering our Five I’s of Employee Engagement: Inform, Inspire, Instruct, Involve, and Incent.

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This is the fourth year that we’ve released this study (see 2012 study, 2013 study, and 2014 study). Here are the results from the Temkin Employee Engagement Index over the previous four years:

EEBenchmarkOverview

Some of the other findings from the research include:

  • The number of highly and moderately engaged employees in the U.S. increased from 55% last year to 57% this year.
  • Compared with disengaged employees, highly engaged employees are 2.5 times as likely to stay at work late if something needs to be done after the normal workday ends, more than twice as likely to help someone at work even if they don’t ask for help, more than three times as likely to do something good for the company that is not expected of them, and more than five times as likely to recommend that a friend or relative apply for a job at their company.
  • Seventy-seven percent of employees in companies that have significantly better financial performance than their peers are highly or moderately engaged, compared with only 49% of employees in companies with lagging financial performance.
  • Companies that outpace their competitors in CX have 50% more engaged employees than those with CX that lags their peers.
  • Ninety-one percent of highly engaged employees always or almost always try their hardest at work, compared with 67% of disengaged employees.
  • 25- to 34-year-old employees are the most engaged group while 45- to 54-year-old employees are the least engaged.
  • Senior executives are 50% more likely than individual contributors to be highly or moderately engaged.
  • Of the 15 industries measured in the study, construction has the highest level of engaged employees while transportation and warehousing has the lowest.

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The bottom line: There are a lot of employees who can and should be more engaged.

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