Increase IT Productivity by 25% by Actively Focusing on Employee

Increase IT Productivity by 25% by Actively
Focusing on Employee Engagement
Don’t just measure engagement, act on it.
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Our understanding of the problem
This Research is
Is Designed For:
This Research Will Help You:
 CIOs
 Increase the engagement of your employees
and address the factors that are leading to
employee disengagement.
 Measure the engagement levels at your
organization.
 Interpret and present the findings of employee
engagement diagnostics in a meaningful way.
 Identify engagement initiatives that will have
the highest impact.
This Research Will Also
Assist:
Assist:
This Research Will Help You:
Them:
 Managers, directors, IT leadership
 Create action plans for implementing
engagement initiatives and measuring them.
 Tailor engagement initiatives to their teams
using input from their teams.
Info-Tech Research Group
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Executive Summary
Situation
Info-Tech Insight
• In IT, high turnover and sub-optimized productivity can have huge
1. Engagement is fundamentally about
leadership. As the leader of the IT
department you need to take
accountability for your team’s
engagement levels in order to improve
IT performance and lower IT costs.
•
impacts on IT’s ability to execute to SLAs, complete projects on time,
and maintain operations effectively.
With record low unemployment rates in IT, retaining top employees and
keeping them motivated in their jobs has never been more critical.
Complication
• Engagement initiatives are often seen as being HR’s responsibility,
•
however, IT leadership needs to take accountability for the retention and
productivity of their employees in order to drive business value.
IT leaders often lack the experience and time to execute IT engagement
programs and even when organizations have an engagement survey,
leaders don’t know how to turn that data in to actionable results.
2. Employee engagement is the tool – not
the end goal. Engaging employees has
a clear ROI which you can measure in
productivity and staffing costs, and
through IT innovation. The first step is
measuring your engagement. The
second is acting on it.
Resolution
• Leverage Info-Tech’s Engagement Diagnostic and deliverables to see dramatic improvements in staff engagement,
retention, and productivity. This blueprint provides three core customizable deliverables which you can use to start
improving engagement today.
◦ Engagement Diagnostic Program: Choose from two customizable engagement diagnostics to measure staff
engagement levels and identify key areas for improvement.
◦ Employee Engagement Survey Facilitation Guides: Use our customizable presentation script to understand and
validate staff feedback and prioritize your efforts based on the results.
◦ Engagement Program Plan: Use Info-Tech’s customizable Engagement Program Plan to work with staff to identify and
build engagement initiatives that suit your organization and teams.
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Employee Engagement
Engaged employees do what’s best for the organization: they come up with
product/service improvements, provide exceptional service to customers,
consistently exceed performance expectations, and make efficient use of their
time and resources. The result is happy customers, better products/services, and
saved costs.
Three Reasons Why CIOs Need to Care About Engagement:
1
2
3
Engaged employees are 3.4X more productive than disengaged.1
Sub-optimized productivity can have huge impacts on IT’s ability to execute to SLAs, complete
projects on time, and maintain operations effectively.
65% of IT employees are not engaged.1
Engaged employees are 55% more likely to agree they regularly accomplish more than what’s
expected of them, and 500% more likely to agree they are committed to the organization.1
66% of CIOs are concerned about losing top IT professionals to other opportunities.2
The cost of losing an employee is estimated to be 150% their annual salary.3 Can you afford to not
engage your staff?
Sources: 1 - McLean & Company, 2 - Robert Half Technology 3 - Inc.
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Don’t seek to satisfy your employees. Drive IT success
through an engaged and motivated workforce
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Engaged employees report significantly higher commitment to
the organization, performance, and willingness to innovate
Engaged Employees Report:
30%
Higher willingness and
openness to innovate.
39%
29%
Higher intention to stay at the
organization.
Higher performance and
increased likelihood to work
harder and longer hours.
IT employee engagement has a clear ROI, particularly when you look at costs associated
with barriers to innovation, real costs of talent loss, and overall employee performance.
Performance, retention, and innovation in turn drive increased revenue, decreased costs, and
improved overall IT reputation and value.
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Engagement is critical for organizations looking to foster
innovation
Impact of Engagement on Innovation
An engaged workforce is a
must have if you want to
drive innovation.
100%
Engaged employees are
significantly more willing to try
new things and are more likely
to believe that their suggestion
will be taken seriously.
90%
80%
70%
60%
50%
40%
I am not afraid of trying
out new ideas in my
job.
If I make a suggestion
to improve something
in my department I
believe it will be taken
seriously.
Engaged
This organization
encourages innovation.
On top of that, engaged IT
staff are significantly more
likely to go above the call of
duty to look for opportunities
to innovate, driving cost and
time savings.
Disengaged
McLean & Company; N=1,308 IT Employees
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Disengaged employees are 40% less likely to agree that they
expect to be at the organization a year from now
Impact of Engagement on Retention
100%
The cost of turnover is
estimated to be 150% of an
employee’s annual salary.2
Turnover costs include all costs
relating to hiring, recruitment,
training, and lost productivity, as
well as the impact on SLAs,
deadlines, and other staff
members.
90%
80%
70%
60%
50%
40%
30%
I am very
committed to
this
organization.
I expect to be at
the organization
a year from
now.
Engaged
McLean & Company; N=1,308 IT Employees
I can advance
my career in
this
organization.
Disengaged
I am given the
chance to
leverage my
talents through
my job.
Lack of growth opportunities
and an inability to see a longterm career at the
organization are huge
retention risks, particularly for
Millennials who are extremely
career-centric. By 2025
Millennials will make up roughly
75% of the workforce.1
Engaging millennials in growth
opportunities will be critical for
retention and maintaining a
productive workforce.
Source: 1 – Erica Dhawan, Gen Y Workforce and Workplace Are Out of Sync. 2 – Inc.
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Engaged employees report not only working longer but also
that they feel a higher sense of pride about their work
Impact of Engagement on Performance
100%
Engaged employees don’t just
work harder, they deliver
higher quality service and
products.
Engaged employees are
significantly more likely to agree
that they regularly accomplish
more than what’s expected of
them, choose to work extra hours
to improve results, and take pride
in the work they do.
90%
80%
70%
60%
50%
40%
30%
I regularly
accomplish more
than what's expected
in my role.
I regularly choose to
put in extra hours to
improve my results.
Engaged
Disengaged
I am very proud of
the work I do.
Without this sense of pride and
ownership over the quality of
service IT provides, IT
departments are at serious risk of
not being able to deliver quality
service, on time, and on budget.
Knowing the engagement
levels of your staff and actively
looking to improve them is
therefore critical for success.
McLean & Company; N=1,308 IT Employees
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Engagement is fundamentally about leadership – it’s your
responsibility
Many organizations would argue that improving employee engagement is the responsibility of the human
resources department. This traditional view of engagement can be beneficial for organization-wide initiatives and it
allows for a consistent approach across an enterprise. However, despite human resources’ involvement, IT
leadership is ultimately accountable for the engagement of their staff.
Why Should IT Leadership Be Responsible for Their Staff Engagement?
1
Leaders have the single greatest impact on engagement.
The highest impact drivers of engagement for IT are related to leadership, including Employee
Empowerment, Culture, Company Potential, Senior Management Relationships, and Departmental
Relationships. When CIOs engage their team, all of these engagement drivers are affected.
2
Engagement happens every day, through every interaction.
When engagement is owned by IT leadership, engagement initiatives are incorporated into day-today management practice – and managers begin to view every interaction with employees as an
opportunity to engage. It is this active, dynamic leadership that inspires ongoing employee
engagement.
3
Leaders should tailor engagement to individual team members.
If IT leaders know their team members well, they can engage employees based on their individual
characteristics: what motivates them, their likes and dislikes, and their goals. There is nothing more
powerful in engagement than personalization.
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If these symptoms resonate with you, it might be time to invest
in improving IT employee engagement
Signs you may need to improve employee engagement…
“Employees rarely offer to stay late to finish work.”
“The rate of turnover is higher than industry average or in previous years.”
“Employee rankings of the IT department on social networking sites (e.g. Glassdoor) are low.”
“Missed deadlines don’t seem to trouble employees.”
“Key employees are regularly oppositional to suggestions or requests.”
“Employees are frequently absent from their jobs.”
“Business partners complain about the lack of effort or care put in by IT employees.”
“Lack of creativity and innovation – staff do not look for new opportunities to improve products or services.”
“Staff meetings are not well attended or there is a lack of participation.”
“Staff members vocally complain about the organization.”
“I struggle to motivate my staff to change.”
“Certain IT staff seem to be putting in time rather than effort.”
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