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October 30, 2007
Seeds of Growth
We think you will enjoy the Seeds of Growth blog - that searches the business blog world looking for posts that illustrate principles, or "Seeds", that if followed, or "planted", will help small businesses grow.
Study Confirms Importance of Engagement
The Employee Factor has been writing for some time about the significant benefits associated with increasing employee engagement levels. A new Global Workforce study by Towers Perrin confirms what we have been saying for quite some time - “employees do not believe that their organizations or their senior management are doing enough to help them become fully engaged and contribute to their companies success.”
What are some of the findings?
- Engagement has a direct impact on retaining employees. Half of the engaged employees had no plans to leave their company.
- It is the senior leaders that have the biggest impact on engagement levels. People’s views about the company are also shaped more by what senior leaders say and do than by what the indivdiuals’ direct bosses say or do. See our post on the importance of Leadership.
- The study confirms the importance of an engaged workforce on bottom-line results. The Global Workforce Study establishes a definitive link between levels of engagement and financial performance and, for the first time, begins to quantify that link. Firms with the highest percentage of engaged employees collectively increased operating income 19% and earnings per share 28% year to year. By the way, this is not the first time that studies have identified the financial benefits to an engaged and committed workforce.
- Watson Wyatt USA study involving 12,750 workers across a range of different sectors demonstrated that the three-year total return to shareholders was 36% higher in organizations with high-employee commitment.
- Sirota Consulting studied 28 multinational companies through 2004 and found that the share prices of organizations with highly engaged employees rose by an average of 16% compared to an industry average of 6%.
- An ISR study published in August 2005, showed that companies with above average employee engagement profits rose by 2.06% and operating margin rose by 3.74% over the same period.
Let us know your thoughts.
October 25, 2007
The Bellagio Needs to Train & Engage Employees
Imagine checking into a luxury hotel and receiving the key to a room that was already occupied. Now imagine that you head downstairs to let the front desk know that you have been given a key to an already occupied room. What was their response? No apology. Inconvenienced. Angry. Certainly nothing close to what should have happened!
- Customers expect hotel staff to welcome them and to treat them as valued guests.
- They expect that both they and their belongings will be safe and secure.
- They certainly expect that once a room is occupied – the hotel staff will not provide another key to the same room to another guest.
- They expect that, if there is a mix-up the staff will apologize for the inconvenience and be genuinely sorry that it has happened.
- They expect that the employees will be passionate and engaged in their work.
- And finally, at the best hotels, the customer would expect some sort of compensation for a mix-up of this type.
This was not the experience at this hotel. The employee truly did not have any idea how the situation could impact our experience, nor did they seem to care. We were simply seen as an inconvenience to their current job and workload. So what hotel was this – the Bellagio in Las Vegas. The Bellagio describes itself on the website: “Contentment and opulence are the hallmarks of your Bellagio luxury hotel experience. A retreat unto themselves, the 3,933 Guest Rooms and Suites are an extension of our AAA Five Diamond Award-winning Las Vegas hotel.”
I am not sure contentment and opulence would describe a hotel that provides keys to rooms that are already occupied! I bet most of you are wondering how often this happens – we certainly are!
Let us know your thoughts….
October 23, 2007
Employee Bloggers Bring Corporate Benefits
Thank you to the Inside the Cubicle blog for the link to the Business Edge article on Company Bloggers.
Lionel Menchanca is Dell Computers, chief blogger. He recently did the unthinkable – he posted a video from Osaka, Japan of a Dell machine bursting into flames at a conference. Why?
He claims this is what blogs are about – they are about being transparent and honest. According to Lionel, when people post things about Dell – the company must respond and deal with it directly.
At the Employee Factor, we can’t agree more. Blogs are a fantastic vehicle for companies to show their human side - to deal head-on with issues, to respond to customer complaints and accolades – to be real.
We agree with the Business Edge article, it is no longer enough to just have a website. Companies have to blog. Why? Blogging allows companies to:
- Make companies and their Executives seem more accessible.
- Put a human-face on a large-corporate entity.
- Showcase their products and services.
- Test new ideas and concepts – to ask for input and information.
- Be a part of the conversation about their company and their products and services.
- Demonstrate that they are current, and “with-it”.
- Reinforce key marketing messages.
- Provide employees, customers, vendors, shareholders with current information.
- Boost visibility.
Employee Engagement Starts with Leaders!
What is employee engagement? A number of studies and other literature related to employee engagement shows similar definitions for employee engagement: commitment to the organization; job ownership and pride; passion and excitement; and commitment to execution and the bottom line.
- Walk-the-walk – Leader’s must live the values of the company every day. Employee engagement is created when Leaders consistently demonstrate what is expected of them – all of the time.
- Do what you say you will do – Leader’s must follow through on what they have said they will do or they need to provide employees with valid and rationale reasons as to why the direction has changed. Companies that consistently “do what they say they will go” will build trust and commitment.
- Have a passion to lead – Leader’s must be passionate about their job and their leadership position. According to one recent study, slightly less than one in two senior Leaders, and only 17 percent of front-line Leaders are themselves highly engaged. Can disengaged Leaders inspire passion and commitment in others? It’s highly unlikely.
- Articulate the vision – Leader’s must be able to articulate the company’s vision with consistency and enthusiasm. Why? Employees need to understand the overall strategic direction of the company and how their role and their work relate to achieving the vision. If employees understand where the company is going and how they contribute they will become engaged.
- Promote accountability – Leader’s must be able to articulate what is expected of their employees and hold them accountable to those expectations.
- Listen and act – employees want to feel that their ideas are listened to and acted upon. Leader’s must consistently demonstrate that they are not only listening, but are acting on employees ideas and suggestions in order to create engaged and committed employees.
- Develop talent – employees want opportunities to grow and develop. Leaders must ensure that they understand what each of their employees want and help them to achieve their goals and aspirations. Engagement research results are clear on this issue: 45 percent of employees cite limited opportunities for growth as the reason they left their company.
- Have a heart – sound ridiculous? More and more employees want to work for companies and for Leader’s that care about them and their individual goals and aspirations. According to the WarrenShepell – only 45% of employees perceive their supervisors as caring and considerate of their well-being! Imagine only 45%....
- Celebrate and reward – Leaders who create highly engaged and committed employees celebrate and reward employees who consistently contribute to the organization.
At the Employee Factor, we believe that companies need to spend more time helping their Leader’s be authentic, consistent and real. What do you think?
October 22, 2007
TD Canada Trust A "Wow" - Loblaw's Not Yet...
The other day, I wrote a blog about a telephone survey I responded to on behalf of TD Canada Trust. In that blog, I wrote that I was less than impressed with the survey but continue to be a strong customer advocate for TD Canada Trust.
Last night, I received a comment on our blog from the Co-Chair of TD Canada Trust, Tim Hockey who said –
Judy - thanks for your comments on the Customer Service Survey - I've passed it along to our Marketing Team as we're always looking for feedback.
Tim Hockey
Co-Chair, TD Canada Trust
ps. and thanks for being a customer, and I'm very glad you enjoy our service!!
Now this is why TD Canada Trust continues to lead the way in service – they are ALL on-top of it – even the Co-Chair of the Bank! A true “wow”! I only wish that Galen Weston was reading and responding to comments about his service. Maybe he thinks he doesn’t have to pay attention to what his customers are saying…
Great Service is All About The Heart
Great service isn’t just about the little things – it’s about trying to make each person’s life unique and wonderful. Great service is all about the heart.
October 19, 2007
What's Your Culture? Find Out at Jiibe!
Check out Jiibe.com – it helps people find or create a better workplace. What a wonderful idea. Typically the best way to find a great place to work is to do research or to ask a friend. But, Jiibe takes it all one step further by asking everyone. Jiibe helps people find or create a better place to work by matching company cultures on 18 critical factors. Best of all it's FREE!
So what is it? According to Dave Johnson – Jiibe was built to help people think about the culture at their place of work and how well that culture jives with what they would find ideal. By answering a few quick questions about their workplace culture the user creates their own personal Jiibe and at the same time contributes to the overall Jiibe culture signature for the company they are currently working at. It is a great way for people to figure out what they like and don’t like about their company culture and also to help them find companies that have a culture they would mesh well with. One of the other cool features is that people can ask questions to everyone at a company which can generate discussions around certain topics at a company. Jiibe is currently in beta, so things will be changing as they work on the application and add features that users demand!
Thank you to Dave Johnson and team – Jiibe will help to companies get a better understanding of the gap between existing and ideal!
Would This Engage Employees?
We are big proponents of creating engaged and committed employees through building employee experiences that inspire, reward and engage each and every employee to deliver the customer experience.
- First building a unique employee experience that created committed and engaged employees.
- Training employees on what was expected at each customer interaction point.
- Measuring and coaching employees prior to implementing the system.
- Providing constant feedback and training to employees experiencing difficulty mastering the desired behaviors.
October 18, 2007
Can Swearing Be Good For Business?
A new study highlights swearing can be good for both your employees and your business. A study by academics at the University of East Anglia has revealed that allowing staff to use expletives at work can actually help them let off steam and is also beneficial in boosting their morale and team spirit. Professor Yehuda Baruch, professor of management, said that taboo language creates a good team spirit, allows staff to vent frustrations and cements relationships.
Of course the study points out that it is critical that employees understand when such language is appropriate, and when not to use it.
The study highlighted that swearing in front of senior staff or customers should be seriously discouraged or banned, but in other circumstances it helped foster solidarity among employees and express frustration, stress or other feelings.
The study, "Swearing at work and permissive leadership culture: when anti-social becomes social and incivility is acceptable", is published in the latest issue of the Leadership and Organisational Development Journal.
Not everyone agrees with the study results - "That kind of aggressive behavior intimidates people and violates their space," said Robert Perkins, president of the management consulting firm Corporate Psychology and visiting professor of management at Mercer University. "It pollutes the environment." "I think you've got to bring a skepticism to that kind of study," Perkins continued, adding that more emotionally sensitive employees could be especially offended by swearing, but may not be inclined to speak up.
Personally, we feel that the use of swearing in a work environment has minimal benefits. We are not sure that companies should want to foster a more aggressive environment, where individuals are encouraged to express themselves in a less than positive or professional manner. I am not sure that any company wanting to create a better environment would want to emphasize the benefits of swearing on employee morale and stress. We certainly know there are better ways to reduce stress, build employee morale and reduce stress!
Let us know your thoughts!
October 16, 2007
Worth Changing Supermarkets For - Not Yet...
Actually, we think that Galen Weston is on to something with his new emphasis on President’s Choice products as a way to differentiate the grocery store. We can’t agree more that unique products and services are always welcome from a consumer point of view. But, we think Galen would be much more successful if he focused on engaging his employees.
I shop at the Broadview & Danforth Loblaws (almost everyday) and have been increasingly disappointed with the experience. What I can’t believe is how the employees don’t realize that they are contributing to the destruction of the Loblaws brand – one day at a time.
Galen, we think you are focusing on the wrong things. Yes, rather than spending massive amounts of money on Nam bread and new detergent, I would take that money and create engaged and committed employees. Here is where I would start:
Service might be worth changing supermarkets for. Let us know your thoughts. Help your employees to better understand how they contribute to the overall success of the company. Explain the service reality. Good service = more customers. More customers = more jobs. Be simple, be truthful. Create meaning for employees. Start by helping them to understand how they contribute. Make it real for them. Appeal to their emotions. Build an employee experience. That’s right. Mirror your customer experience on the inside – otherwise you will never be a best-in-class player – like WholeFoods. Get rid of the employees who consistently destroy your brand – day-in and day-out. For starters, I would replace almost all of the staff at Broadview & Danforth. They are slow, rude, inefficient, and are giving your great company a bad name! Measure and reward the right behaviors.
October 13, 2007
Cancer Can't Stop This Boss!
Imagine being in your early thirties, with three small children and being diagnosed with cancer. Terrible? Well, it gets worse...
Now imagine you have been an employee for about ten years with the same company and have built up some paid time off. When you send in the paperwork and receive the check – it is short several days of pay…..
Now imagine an environment where a boss would “throw away” the paperwork and then lie about receiving it! Sound impossible? Well, this is a true story that was the “winner” on the MyBadBoss contest.
At the Employee Factor, we find it amazing that still so many of these stories exist. How can companies expect to engage their employees by continuing to employ bosses like this?
Click here to read some of the stories – my guess is that you will be appalled.
October 12, 2007
Tips for Empowering Your Workforce
I participated in a very interesting discussion last night. The President of a leading international retail chain explained her dilemma. What was it? How do I create truly empowered employees? While the company actively promotes empowerment, honest communication and has a unique culture that encourages individuals to learn from their mistakes – a majority of the employees and Managers are still hesitant to become truly empowered.
Here are some tips to help engage and empower both the Managers and the employees. Creating an empowered workforce is not easy, but the above tips can act as a starting point.
October 11, 2007
Are Customer Telephone Surveys Reliable?
Customer service and loyalty is our core business. We are passionate about creating experiences that customers will remember, talk about. Increasingly companies are recognizing the importance of having customers that will buy more from them and refer them. As a result they are finding more and more ways to survey their customers, to determine how they are feeling.
But, what I found was certainly not what I would have expected from TD Canada Trust.
- The individual conducting the survey spoke too quickly and was extremely difficult to understand.
- He seemed to lead the answers – when I said that I would rate something as a “5 out of 7”. He said “a five!” He seemed so surprised that most customers might have changed their answer.
- When I said that I was satisfied – he said you mean “very satisfied”. I said no, I mean I am satisfied. He stated that this wasn’t an option. I asked him to re-read the options and then selected “somewhat satisfied”. Again, he seemed disappointed
- He tried to put words in my mouth on the open-ended questions.
- And finally, he was unable to articulate why I would want my responses included on my customer information file! Are you kidding?
Does this sound like a survey that would be conducted by a bank with best-in-class service? I don’t think so. In fact, by the end of the survey, I wasn’t actually giving my true views on what I think of the service, I was trying to “trip up” the individual conducting the survey – who was either not trained or trying to lead my answers. I certainly hope it was the former.
For the record, I love TD Canada Trust. I find their service phenomenal. I would have rated them all the very highest marks and certainly constantly refer them. But, I think the Bank needs to re-think their survey methodology and hire a firm that is professional, clear and objective!!
Let us know your thoughts.
October 09, 2007
How to Help Another - A Lesson from Starbucks
Thank you to the 800CEORead blog for the interview conducted with Michael Gates Gill. Before, this blog, I had never heard of Michael Gates Gill. But, I think this interview and quote below will make you want to buy his book titled - "How Starbucks Saved My Life".
About Michael Gates Gill:
"As a successful creative director for one of the largest advertising agencies in the world, Michael Gates Gill had it all. But in a few short years, he lost his job, divorced, and was diagnosed with a brain tumor. With no money or health insurance Gill took a job at Starbucks where, with the help of an unlikely mentor, he learned the value of hard work, humility, and what it truly means to help another person. In his book, Michael Gates Gill shares how he had it all, lost it all, and was finally redeemed by a new job and an incredible friendship."
My favorite company, Starbucks, continues to surprise!
October 05, 2007
Bieber Labs
Check out Bieber Labs, we think you will enjoy it! When asked what the blog is about he responds - No, not really. I’ve thought of making it a “tech blog”, but I really don’t like being limited. For now, the posts on here are basically whatever I’m thinking about at the time that I write it. I don’t really pay attention to a theme. There really is no rhyme or reason - it could be personal or work related. It's just me, and I hope that its either useful, or fun to read for someone.
The Dream Manager
Tom Peter's is recommending the Dream Manager. We are as well. Why? We are active believers that companies should focus on creating engaged and committed employees. Here are a couple of quotes from the book:
"An organization can only become the-best-version-of-itself to the extent that the people who drive that organization are striving to become better-versions-of-themselves…A company's purpose is to become the-best-version-of-itself. The question is: What is an employee's purpose? Most would say, 'to help the company achieve its purpose'—but they would be wrong. That is certainly part of the employee's role, but an employee's primary purpose is to become the-best-version-of-himself or -herself. ... When a company forgets that it exists to serve customers, it quickly goes out of business. Our employees are our first customers, and our most important customers."
October 02, 2007
Is Your Company Socially Responsible?
Starbucks measures their commitment to social and environmental causes. Have you seen this latest pamphlet propped next to the milk and stir sticks in your local Starbucks? The pamphlet’s called Social Responsibility: How is My Starbucks doing its part?
The subject of social and environmental activism has popped up in previous blogs here. Activism is on the rise in the US and companies like Starbucks and The Body Shop have been doing this stuff before it was, dare I say, cool.
Starbucks uses a key performance indicator (KPI) metric to measure their corporate social responsibility targets. So, let’s look at some Fiscal 2006 KPIs.
Coffee 2006 2005Coffee purchased from C.A.F.E. 53% 25%
Fair Trade coffee 6% 4%
Society 2006 2005Charitable contributions 4% 3.8%
(% of pre-tax earnings)
Volunteerism (hours) 383,000 299,000
Paper 2006 2005Post-consumer fiber used 66.4% 49.5%
(not including hot cups)Unbleached fiber
(not including hot cups) 86.3% 85.9%
And a few workplace KPIs look like this:
- 86% of partners(employees) are very satisfied partners.
- 69% of partners are engaged.
- 33% of executives in the US are women.
- 15% of executives in the US are people of colour.
- $213 million dollars are spent with certified minority and women-owned US businesses. That’s up from $166 million in 2005.
If I was an out of work on a job hunt, this commitment to responsible business practices, to diversity and a great work environment would be very attractive. Kudos to their efforts and their transparency.
October 01, 2007
Not All Customers Are Created Equal
At McDaniel Partners, we spend a lot of time helping corporations focu on the customer experience and how to deliver the best customer experience possible.
This recent blog from one of our faves, David Maister, caught our attention. It looks at this experience from the reverse angle – how customers should act and behave to get what they need and want. It’s about making yourself, as a customer, stand out from the rest. Maister’s referring back to a piece written by a Harvard Business School buddy simply entitled “How to be a Customer”. I like it.So, listed below is Maister’s summary of the excelling-all-others customer behaviour key points.A customer should:- Be Demanding.
- Be Respectful.
- Be Reliable.
- Be Surprising.
- Be Engaging.
