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HewittAssociatesWal-MartChinaAssociatesEngagementSurveyResultPresentationNov.,2005HewittAssociatesAgenda•WhyMeasureEmployeeEngagement?•Wal-MartAssociateOpinionSurveyIntroduction–SurveyBackground:WhyDoWeConducttheSurvey?–ParticipantProfile–SurveyMethodology–InterpretingtheResults•KeyFindings–EngagementResults–PositiveAreas–Need-to-improvedAreas•BenchmarksandComparison•SuggestedInitiatives•BestPracticesforAchievingSustainedEngagementResults•WhatWillImproveifEngagementScoreisIncreased?HewittAssociatesWhyMeasureEmployeeEngagement?HewittAssociatesImprovingBusinessResultsThroughEngagingPeopleIndividualLifeGoalsandStrategiesIndividualCapabilitiesPeopleRequirementsandTalentStrategyEmploymentRelationshipPeopleManagementPracticesIndividualPrioritiesandEngagementEngagementBusinessResultsandStrategiesBusinessCapabilitiesHewittAssociatesWhyEngagementMatters:BusinessNeedsServiceQualityFeaturesProblemResolutionPrice/RelativeValueEmployeeBehaviorRecom-mendationRetentionExpansionBusinessPerformanceCustomerSatisfaction/ValueCustomerValueDriversHewittAssociatesWhyEngagementMatters:EmployeeNeedsEmployeeEngagementEmployeeBehaviorTurnoverRecommendEmployeesRecommendProducts/ServicesCreatenewProducts/ServicesCustomerServiceProductivityOpportunityQualityofLifeCultureTotalCompensationLeadershipRelationshipsWorkActivitiesHewittAssociatesWal-MartAssociateOpinionSurveyIntroductionHewittAssociatesSurveyBackground:WhyDoWeConducttheSurvey?•TheAssociateOpinionSurveyisaveryimportantpartoftheGrassRootsprocess.–Itletsuslook,inanobjectiveway,athowassociatesfeelaboutworkingatWal-Mart.–Itletsusmeasurewhetherwe’vedoneagoodjobovertimeofhelpingtomakeWal-Martabetterplacetowork.–ItprovidesafoundationfortheGrassRootsmeetings,givingmanagersdirectionfortheirdiscussions.–Andittellsuswheretoconcentrateourresourcesinordertoraiseourassociateengagementthemostovertime.HewittAssociatesParticipantsProfile–ByDivision11327,71%1024,6%504,3%3296,20%TOTALCHINAWal-MartStoresTOTALCHINASAM'SClubsTOTALCHINALogisticsTOTALCHINAHomeOfficeHewittAssociatesParticipantProfile–ByGrade894,6%3,377,21%11,133,68%747,5%SGradeandaboveA-CGradeD-HGradeNoresponseHewittAssociatesSatisfactionHowmuchIlikethingshereCommitmentHowmuchIwanttobehereEngagementHowmuchIwanttoandactuallydotoimproveourbusinessresultsEngagementSatisfactionHewittAssociatesEngagementBackgroundConsistentlyspeakpositivelyabouttheorganizationtocoworkers,potentialemployees,andmostcritically,customers(currentandpotential)SayAnintensedesiretobeamemberoftheorganizationStayExertextraeffortandengageinworkthatcontributestobusinesssuccessStrive•WhatisEngagement?–Engagementisthestateofemotionalandintellectualinvolvementorcommitmentofanemployeetoanorganization.–SignificantresearchandexperienceshowstrongevidencethathigherlevelsofEngagementcombinedwithappropriatecapabilityproducestrongerbusinessresultsandsustainablecompetitiveadvantage.–Engagedemployeesareproductive,innovativeandtakeownershipoftheirresults.ThreekeybehavioursindicatestrongEngagement.HewittAssociatesTheEngagementModelProceduresPoliciesProcessesValuingPeopleProcessesCompensationPayBenefitsPeopleSeniorManagementBusinessUnitManagerImmediateManagerCo–workersDiversityOpportunitiesCareerOpportunitiesRecognitionTrainingQualityofLifeWork/LifeBalancePhysicalWorkEnvironmentSafetyLocationEngagementWorkIntrinsicMotivationInfluenceWorkTasksResourcesHewittAssociates–IntheEngagementSurvey,employeesrespondedtoeachitembyindicatingtheirlevelofagreement/disagreementwithparticularattributesandbehavioursintheorganization.–AnoverallEmployeeEngagementiscalculatedfromemployeeresponsestoasetnumberofquestions(seebelow).Thesequestions,indicatethedegreetowhichemployeeswill“Say”,“Stay”and“Strive”atthecompany:•IwouldrecommendWal-Marttoafriendseekingemployment.•Giventheopportunity,ItellothersgreatthingsaboutworkingatWal-Mart.•ItwouldtakealottogetmetoleaveWal-Mart.•IrarelythinkaboutleavingWal-Marttoworksomewhereelse.•Wal-Martinspiresmetodomybestworkeveryday.•Wal-Martmotivatesmetocontributemorethanisnormallyrequiredtocompletemywork–TheEmployeeEngagementscoreisthepercentageofemployeeswhoindividuallyscoredanaverageof=4.5onSay,StayandStrivequestionsInterpretingtheEngagementScoreSayStayStriveHewittAssociatesSam’sClubThecombinedproportionofresponsesfor‘5’and‘6’(‘‘Agree’and‘StronglyAgree’)Resultsshownonthegraphicchartinthereportinclude:–Thecombinedproportionofresponsesfor‘1’and‘2’(‘StronglyDisagree’and‘Disagree’).–Theproportionofresponsesaseither‘3’,where‘3’is‘SlightlyDisagree’onthe6pointscale.–Theproportionofresponsesaseither‘4’,where‘4’is‘SlightlyAgree’onthe6pointscale.–Thecombinedproportionofresponsesfor‘5’and‘6’(‘Agree’and‘StronglyAgree’).HomeOfficeStoreTheproportionofresponsesaseither‘3’,where‘3’is‘SlightlyDisagree’onthe6pointscaleTheproportionofresponsesaseither‘4’,where‘4’is‘SlightlyAgree’onthe6pointscaleInterpretingtheDetailedResultsGraphsThecombinedproportionofresponsesfor‘1’and‘2’(‘StronglyDisagree’and‘Disagree’)LogisticsHewittAssociatesReadingtheSummaryReportsTeamEngagemen