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.

2015 Temkin Ratings: Benchmarking Consumer Relationships

Temkin Ratings website

We’ve been publishing the Temkin Ratings for five years. These ratings provide insights into how consumers evaluate their relationships with 100s of companies across multiple industries. In 2015, we examined 200+ companies across 20 industries based on a survey of 10,000 U.S. consumers. You can view a sortable list of results on the Temkin Ratings website.

Here are my posts that summarize the results for all of the 2015 Temkin Ratings:

The bottom line: How do your customers rate their relationship with you?

P.S. Here’s a link to the 2014 Temkin Ratings

Positive Psychology Infuses Customer Experience

In case you missed it, here’s a recording of a recent Temkin Group webinar, Positive Psychology (PP) Infuses Customer Experience (CX). It shows how principles of PP can be used to enhance an organization’s efforts to improve CX.

We’ve been using some of the underlying principles of PP within our work for years, but never labelled it that way. Going forward, we plan to tap more into the growing body of research in the space, and also hope to provide a leading voice in areas such as organizational culture and experience design.

If you like this topic, here are some posts that you may find interesting:

The bottom line: Positive psychology + customer experience = a world of positive experiences.

The Power of Customer Journey Mapping (Video)

Customer journey mapping is a valuable tool for customer experience, but Customer Journey Thinking can change your culture. Watch this short Temkin Group video to find out more…

The bottom line: Your customers are on a journey, help them

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

Is Net Promoter Score A Savior Or A Demon?

Every couple of years, I get a resurgence of questions about Net Promoter® Score (NPS®). These surges typically coincide with research that shows how NPS is either an excellent predictor or a terrible predictor of company performance. That data often ignites a religious battle between the NPS lovers and NPS haters.

Well, it’s one of those times.

Let me start by saying that I’m an atheist in this NPS battle. We’ve had the opportunity to study and work with hundreds of companies that use NPS. I’ve recommended to some companies that they adopt NPS, to others that they stop using NPS, and to others that they start with a totally different set of metrics (see our VoC/NPS resource page).

Let’s look at what we know for sure about NPS…

The reality is that the metric itself is much less important than how it is used. I’d rather use a sub-optimal metric in a way that drives positive improvements across an organization, than have a perfect metric that doesn’t result in as much impact.

Here are some quick answers to key questions:

  • Is NPS the best indicator of customer loyalty and business performance? In many cases, no.
  • Can other metrics be used to drive positive change? Yes.
  • Does NPS provide an easy to understand metric that can be widely adopted? Yes.
  • Can NPS be used to make an organization more customer centric? In many cases, yes.
  • Will a company improve if it increases promoters and decreases detractors? In many cases, yes.
  • Can NPS be used inappropriately? Yes.
  • Can any metric be used inappropriately? Yes.
  • Would I ever recommend NPS for every touch point? No.
  • Should companies consider their specific business when selecting metrics? Absolutely.
  • What’s more important, the metric or the improvement process? The improvement process.

The bottom line: NPS is neither a savior nor a demon.

P.S. In case you didn’t know, NPS® and Net Promoter® are registered trademarks of Fred Reichheld, Satmetrix, and Bain & Company.

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