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Engaging for success: Enhancing performance through employee engagement Case Study Metro Yorkshire based public transport provider, Metro has seen the difference that employee engagement can make. It has transformed itself from a traditional bureaucratic rigid culture to a ‘can do’ culture, where innovation and energy are embraced resulting in improved performance and a number of business accolades including recognition as one of Britain’s Top Employers (The Guardian 2007 and 2008). Metro has introduced a range of activities including improved communication on organisational objectives, an extensive management development programme and 2-way communication throughout the organisation, aimed at increasing employee engagement. The results speak for themselves – increased productivity, and staff and customer satisfaction scores. Since 2004/05, when Metro introduced its engagement programme, it has improved its engagement score from 3.73 to 3.98 (out of 5) and has seen sick days per employee fall consistently from 8.9 to 7.65, and retention rates increase from 82 per cent to almost 93 per cent. Small and Medium-sized Businesses 26 There is, not surprisingly, less evidence on the correlation between engagement and performance in SMEs (Small and Medium-sized Enterprises). There is a tendency to assume that those working in smaller organisations are automatically more engaged. Our discussions with both employers and employees from SMEs suggest, however, that is not always the case. On the one hand ACCOR 68 found that almost half (45 per cent) of respondents working for organisations with fewer than 100 employees say they feel involved in the organisation compared to fewer than one in four (24 per cent) of UK employees overall. Although this figure is higher for smaller organisations, it is still less than half; there has also been a large drop in the number of employees in small businesses willing to recommend their firms as a place to work: down from 74 per cent in 2005 to 52 per cent in 2009. 68 Accor: Reward to Engage: Rewards, Benefits and Employee Engagement in Today’s Organisations and at http://engagement.accorservices.co.uk/website/employee-engagement-whitepaper-form.html. Accessed 1 July 2009 50
Chapter 2: The Case for Employee Engagement – The Evidence Case Study HansenGlass When HansenGroup acquired HansenGlass, it was a small classic brownfield company with under 90 employees, under intense competitive pressure with many negative attributes: a long, troubled history; traditional, hardened attitudes; ‘us and them’ practices; and a strong unionised environment with a high reliance on overtime. Each machine centre operated separately producing as much as it could oblivious to adjacent centres. Product damage was high. The new directors had heard of world class manufacturing but knew they did not have the knowledge or experience of introducing and establishing lean enterprise. After attending the ‘Chief Executive Course’ at Leyland Trucks the directors were clear on what to do and how to do it. HansenGlass have now embraced employee engagement as a way of working in a much healthier and democratically accountable environment. By engaging their staff through a series of techniques and processes they have changed the emphasis from direct supervision of employees to self-managing teams. ‘Change Initiation’, training on leadership, communication, recognition, team working and continuous improvement led to teams setting their own goals. The results have transformed the business: on-time delivery improved to 98 per cent meeting the world-class benchmark; productivity increased by 250 per cent with 67 per cent less wastage and a 73 per cent reduction in customer complaints; stock was reduced by 50 per cent. Profitability was three times the industry average which led to a £4m investment in new equipment including £600,000 of Regional Selective Assistance. The company won ‘Business Excellence North of England SME’ award in 2007. HansenGlass has just received reaccreditation to Investors in Excellence for a second time making it one of the first companies in the country to receive such a distinction. The principles learned have been embodied in the South West Regional Development Agency’s Survival Guide and Strategic Development Programme run by Northern Arc Business Link. 27 Small changes in an organisation can have big results as Chess plc, a Cheshire based SME found out. Chess introduced a range of health and well-being initiatives including encouraging healthy eating, free flu jabs, introducing the Government bike scheme and active management of sickness absence: the average number of sick days per person is now 1.73 a year, well below the national average. 69 69 Health Work Wellbeing (2007). Organisational Case Studies – Chess plc [Online]. Available: http://www.workingforhealth.gov.uk/Case-Studies/Organisations/Organisation-detail.aspxCaseStudyID=11 [accessed 30 June 2009] 51
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