OE21 Guideline: 5.2a Workforce Engagement and Performance

Strategic Objective:

Strategic Objective:

Build and sustain a workforce conducive to high performance & full potential

Quality Objective:

Quality Objective:

Foster organizational culture, boost engagement, implement high performance

Approved: DD-MMM-YY

Approved by: (Name) Chair, Workforce Focus Team (WFT)

Responsibility:

Responsibility:

Lead: Workforce Focus Team (WFT)  Support: All focus teams

VALUE ADDED

VALUE ADDED: Workforce Engagement and Performance

 

  1. Assessment of organizational culture and workforce satisfaction based on workforce survey inputs 

  2. Measures workforce performance in seven key areas

  3. Measures workforce performance by work unit (teams)

  4. Allocates rewards to work units based on quarterly performance ratings

  5. Uses work unit ratings to determine the extent of rewards to work units and individuals

  6. Uses all of the above to improve workforce engagement and performance

POLICY          5.2 COMMENTARY

5.2a Workforce Engagement and Performance (Policy)

 

The organization has adopted the Baldrige Framework Item 5.2a Workforce Engagement and Performance as the internal policy, including the following sub-items:

 

5.2a(1) Organizational Culture

5.2a(2) Drivers of Engagement

5.2a(3) Assessment of Engagement

5.2a(4) Performance Management

7.3a(2) Workforce Climate Results - The organization tracks progress and outcomes of workforce climate results, including current levels and trends in key measures and indicators.​​

7.3a(3) Workforce Engagement Results - The organization tracks progress and outcomes of workforce engagement results, including current levels and trends in key measures and indicators.​​​

PROCESS

5.2a Workforce Engagement and Performance (Outputs)

 

Voice of the Workforce Assessments
Work Unit Performance Assessments

Work Unit Performance Matrix (by work unit)

Work Unit Rewards Model
Workforce Engagement and Performance Metrics
Workforce Excellence Action Plan (updates)​

5.2a Workforce Engagement.PNG

5.2a Flow Diagram (Figure 5.2a-1 Workforce Engagement and Performance)

Inputs to 5.2a Workforce Environment

  • Names, roles, and emails of all employees, managers, and executives

 

  • Work Unit (or department) titles and codes for all work units

 

  • 5.2a-WFT-S2 Workforce Engagement (survey)

 

  • 5.2a-WFT-S1 Work Unit Performance (survey)

Measurement and Analysis Tools and Techniques

  • 5.2a-WFT-A2 Workforce Engagement Analysis (.xlsx)

  • 5.2a-WFT-A1 Work Unit Performance Analysis (.xlsx) 

Outputs from 5.2a Workforce Environment

Milestone 1 - Value Stream Map
Milestone 2 - Workforce Engagement Assessment
Milestone 3 - Improve Organizational Culture 
Milestone 4 - Work Unit Performance & Rewards Assessment  
Milestone 5 - Workforce Engagement Action Plan and Metrics

Implementation Instructions

START IMPLEMENTATION

Task 5.2a-1 - Create the Value Stream Map - The Value Stream Map is often used in manufacturing process flows in order to document the steps from customer receipt of order to delivery and support of the order. In the OE21 system, the Value Stream Map is used aa a higher level, organization-wide documented flow of processes used by all Work Units in the organization. Figure 5.2a-1 presents an example organization-level Value Stream Map for the Elafino Case Study (Sports Center for hockey, figure skating and fitness).

5.2aValueStream1.PNG
5.2aValueStream2.PNG

Figure 5.2a-1 Organization-Level Value Stream Map (Example)

The OE21 approach to creating an organization-level Value Stream Map is as follows:

  1. Begin with a list of all Work Units (shown in right column of Figure 5.2a-1).

  2. Sort the Work Units from beginning (product/service definition and creation) to end Financial Management), similar to the flow in Figure 5.2a-1.

  3. Input the work statements (center column of Figure 5.2a-1) for all Work Units.

  4. Check to make sure ALL Work Units have their logical place in the Value Stream.

The benefits of the organization-level Value Stream Map include:

  • All Work Unit managers and employees understand how they fit into the overall work flow, especially what Work Units they receive work outputs from and what Work Units they provide work outputs to.

  • Understanding Work Unit flows enables better communications and efficiency between and across all Work Units.

  • The Value Stream makes it easier to measure internal customer satisfaction between Work Units. Example: Figure 5.2a-1 Step 9 (Customer Requests, Intake orders) is performed by the Admissions/Enrollment Work Unit people. The outputs of Step 9 go to Step 10 Requirements Response, performed by Hockey or Skating Managers. By asking the Hockey or Skating Managers about the extent they are satisfied with the inputs received from the Admissions/Enrollment Work Unit, a good measure of internal customer satisfaction is possible. 

  • The Value Stream Map is useful when conducting the WFT 5.2a Work Unit Performance Assessment. One of the key questions in these surveys is about internal or external Customer Satisfaction with inputs received from other Work Units (i.e. internal customer satisfaction) or from the final Work Unit that delivers the items to the customer (external satisfaction).  

  • PROGRESS: You have reached Milestone 1 (good work). Input the status [15%] on the organization's OE21 Intranet Main page alongside the title of this standard.

Task 5.2a-2 - Conduct the WFT 5.2a Workforce Engagement Assessment - The Workforce Engagement Assessment is administered by the WFT and facilitator. This assessment is associated with all workforce members, including employees, contractors, managers and senior leaders. This assessment includes these attributes:

  • Assistance

  • Availability

  • Career

  • Communications

  • Compliments

  • Cost of Quality

  • Employment Referral

  • Engagement (Low, Uncommitted or High)

  • Flexibility

  • Focus

  • Innovation

  • Leadership

  • Managers

  • Mission Rewards

  • Referrals

  • Resources

  • Rewards

  • Schedules

  • Work Impact

  • Work Quality

  • Work Value

  • Workload

  • World Value

The key tools used in this assessment are:

  • 5.2a-WFT-S2 Workforce Engagement (survey)

  • 5.2a-WFT-A2 Workforce Engagement Analysis (.xlsx)

This is an important and sensitive assessment and the following guidelines are highly recommended:

  • Guideline 1 - This assessment should involve all employees of the organization, including workers, contractors, supervisors, managers, and senior executives. 

  • Guideline 2 - This assessment should be anonymous! For this reason, after the survey part of the assessment is conducted, the HR Manager should examine the results, and make sure all references (names, positions, emails, IP addresses, etc.) are REMOVED from the survey export file before its results are inserted into the 5.2a-WFT-A2 Workforce Engagement Analysis (.xlsx) file.

Table 5.2a-1 presents implementation steps, actions, results and references for this assessment.

The output of the model organizes the scores (0-10) into three groups:

• Low Engagement - The number (and %) of responders who scored 0 to 6
• Uncommitted - The number (and %) of responders who scored 7 or 8
• High Engagement - The number (and %) of responders who scored 9 or 10

Figure 5.2a-2 presents implementation steps, actions, results and references for this assessment.

A_5.2a workforce engagement Metrics tabl

Table 5.2a-1 - Implementation of Workforce Engagement Assessment

Figure 5.2a-3 is an example of the Workforce Engagement Dashboard 1. This dashboard shows engagement scores in three groups: low, uncommitted and high engagement.

 

Figure 5.2a-4  is an example of the Workforce Engagement Dashboard 2. This dashboard shows engagement scores for 22 categories associated with engagement-related performance. 

5.2a_Workforce_Engagement_Dashboard1.PNG

Figure 5.2a-3 Workforce Engagement Survey Results Dashboard 1

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Figure 5.2a-4 Workforce Engagement Survey Results Dashboard 2

Additional comments:

  • Since the 5.2a-WFT-S2 Workforce Engagement (survey) is anonymous, the Leadership Focus Team (LFT) doesn't know who belongs to which engagement group (high, uncommitted, low).

  • The Workforce Engagement survey captures narrative improvement suggestions from all those in the Low Engagement group (0-6). These comments are useful to understand and improve this Low Engagement group. The WFT and HR managers should pay attention to suggestions from the low engagement group in order to try to reduce costly terminations, replacement, and on-boarding of new managers and employees. 

  • PROGRESS: You have reached Milestone 2 (good work). Input the status [30%] on the organization's OE21 Intranet Main page alongside the title of this standard.

Task 5.2a-3 Improve the Organizational Culture - To foster an organizational culture that is characterized by open communication, high performance, and an engaged workforce, the Workforce Focus Team (WFT) must assess and improve the organizational culture. The following characteristics of the organizational culture should be assessed, and when necessary should be improved:

  • Pay and pay increases

  • Processes for effective problem solving

  • Processes for effective grievance resolution

  • Worker development and career opportunities

  • Managers and supervisors management and support

  • Workplace safety and security

  • Workload

  • Communications Effectiveness

  • Workforce cooperation with workers and managers

  • Teamwork and teamwork opportunities

  • Empowerment

  • Job security

  • Appreciation of diverse workforce individuals and groups needs

The Human Resources Plan is the ideal document for policies, procedures, and processes that relate to the organizational culture. An excellent guide for use in updating the Human Resources Plan is found in the following sections of the 2019-2020 Baldrige Framework Criteria Commentary

  • High performance. The focus of this item is on a workforce capable of achieving high performance. High performance is characterized by flexibility, innovation, empowerment and personal accountability, knowledge and skill sharing, excellent communication and information flow, alignment with organizational objectives, customer focus, and rapid response to changing business needs and marketplace requirements.

  • Workforce engagement. Many studies have shown that high levels of workforce engagement have a significant, positive impact on organizational performance. Research has indicated that engagement is characterized by performing meaningful work; having clear organizational direction and accountability for performance; and having a safe, trusting, effective, and cooperative work environment. In many organizations, employees and volunteers are drawn to and derive meaning from their work because it is aligned with their values.

  • Workforce engagement drivers. Although satisfaction with pay and pay increases are important, these two factors generally are not sufficient to ensure workforce engagement and high performance. Some examples of other factors to consider are effective problem and grievance resolution; development and career opportunities; the work environment and management support; workplace safety and security; the workload; effective communication, cooperation, and teamwork; the degree of empowerment; job security; appreciation of the differing needs of diverse workforce groups; and organizational support for serving customers.

 

  • Factors inhibiting engagement. It is equally important to understand and address factors inhibiting engagement. You could develop an understanding of these factors through workforce surveys, focus groups, blogs, or exit interviews with departing workforce members.

 

  • Compensation and recognition. Compensation and recognition systems should be matched to your work systems. Compensation and recognition might be tied to demonstrated skills. Approaches might also include profit-sharing; mechanisms for expressing simple “thank yous”; rewards for the exemplary team or unit performance; and linkage to customer engagement measures, the achievement of organizational strategic objectives, or other key organizational objectives.

 

  • Other workforce engagement indicators. In addition to direct measures of workforce engagement through formal or informal surveys, other indicators include absenteeism, turnover, grievances, and strikes.

 

  • Workforce development needs. Depending on the nature of your organization’s work, workforce responsibilities, and stage of organizational and personal development, workforce development needs might vary significantly. These needs might include gaining skills for knowledge sharing, communication, teamwork, and problem-solving; interpreting and using data; exceeding customer requirements; analyzing and simplifying processes; reducing waste and cycle time; working with and motivating volunteers; and setting priorities based on strategic alignment or cost‐benefit analysis.

​​

  • Education needs might also include advanced skills in new technologies or necessary skills, such as reading, writing, language, arithmetic, and computer skills.

(End of extract from Baldrige Framework Criteria Commentary)

 

The Human Resources Plan should fully utilize the results of the 5.2a-WFT Workforce Engagement Assessment outputs, including suggestions from the workforce. The HR Manager and WFT should create, update and finalize this key document. The LFT and senior leaders approve the Human Resources Plan.

  • PROGRESS: You have reached Milestone 3 (good work). Input the status [40%] on the organization's OE21 Intranet Main page alongside the title of this standard.

Task 5.2a-4 Conduct Work Unit Performance and Rewards Assessment - The Workforce Capability Assessment is administered by the WFT and facilitator. The key inputs to the assessment, including work unit rewards are provided by a special group, as presented in Table 5.2a-1. The members of the special group include:

  • Senior Executive

  • Human Resources Manager

  • Operations Manager

  • Quality Manager 

 

The assessment is associated with groups of workforce members, referred to as Work Units. Work Units have similar skill people with specific focus (e.g., design, manufacturing, delivery, support, supply chain, accounting, risk management, sales, marketing, etc.). The assessment includes these attributes:

  • Role or Person that rated the Work Unit

  • Work Unit Rated (title or ID)

  • Average Rating (formula)

  • AVAILABILITY rating, improvement suggestions, and impact area

  • REQUIREMENTS rating, improvement suggestions, and impact area

  • COST CONTROL rating, improvement suggestions, and impact area

  • SCHEDULE CONTROL rating, improvement suggestions, and impact area

  • QUALITY CONTROL rating, improvement suggestions, and impact area

  • WORKFORCE ENGAGEMENT rating, improvement suggestions, and impact area

  • INNOVATION rating, improvement suggestions, and impact area

IMPACT AREAS include:

  • Benefits/Policies

  • Customers/Stakeholders

  • Employees/Contractors/Volunteers

  • Leaders/Managers

  • Machines/Equipment

  • Materials/Supplies/Facilities

  • Methods/Procedures/Measurement

  • Product/Service/Program

  • Other

The key tools used for this assessment are:

  • 5.2a-WFT-S1 Work Unit Performance (survey)    

  • 5.2a-WFT-A1 Work Unit Performance Analysis (.xlsx)
     

Table 5.2a-2 presents implementation steps, actions, results and references for this assessment.

5.2a Impl Table.PNG

Table 5.2a-2 Implementation of Work Unit Engagement and Rewards Assessment

Task 5.2a-5 Implement High Performance Rewards System - One of the tabs in the 5.2a-WFT-A1 Work Unit Performance Analysis file is the Rewards tab, shown in Figure 5.2a-5.

5.2a REWARDS TABLE.PNG

Figure 5.2a-5 Rewards tab of Work Unit Performance Analysis sheet

The data in Figure 5.2a-5 is an example using only three work units. Most organizations have many more. The following description is used along with the Value Stream Map (Table 5.2a-1) as a guide to learning how the model works.

Step 1 - The Operations Manager for Rewards creates the Value Stream Map (see tab). This map provides the sequential flow of work activities for the organization, subdivided by Work Units. The Value Stream Map is useful for workflow, and for evaluation of REQUIREMENTS performance observed from the Work Unit(s). At the end of each quarter, the Operations Manager  provides inputs to the 5.2a-WFT-S1 Work Unit Performance (survey), including these attributes:

 

  • SATISFACTION - based on internal and external customer feedback about satisfaction and understanding of requirements for outputs received from the Work Unit(s) as work moves along the Value Stream Map.

  • ​COST CONTROL - based on how well the Work Unit(s) control their costs, including labor hours and dollars vs budgets and non-labor (material, purchases, other non-labor costs), throughout the quarterly period rated. 

  • SCHEDULE CONTROL - based on how well the Work Unit(s) control their completion of scheduled work on time and scheduled dates, throughout the quarterly period rated. 

Step 2 - Before the next quarter begins, the designated Senior Leader for Rewards, sets the Value of Rewards for the quarter ($10,000 in the example Figure 5.2a-4). The Senior Leader has the option to add any Amount Remaining for Carry Over ($4,028 in example) to the next quarterly Value of Rewards.

Step 3 - Before the next quarter begins, the Human Resources Manager (HRM) for Rewards, collects and inputs the Number of Workers in Work Units (45, 22, 5 in example). The number of workers in any work unit requires that each worker must have worked at least two months of the last quarter (which is the one rated). This policy ensures that new hires who come in late in the quarter are NOT counted as workers. This prevents allocating rewards to those who did not participate the full quarter. The model adds all workers (72 in example). 

Step 4 - At the end of each quarter, the Human Resources Manager  provides inputs to the 5.2a-WFT-S1 Work Unit Performance (survey), including these attributes:

  • AVAILABILITY - based on how many hours the Work unit members actually worked during the quarter. Regardless of reasons for not working (sickness, family leave, vacations, etc.) the ratings input must be based on the ratio of hours actually worked versus hours authorized for work. 

  • ENGAGEMENT - based on how well the Work Unit members did their utmost for their internal and external customers benefit and the organization's success. This rating considers flexibility to work additional hours when needed, empowerment, personal accountability, knowledge and skill sharing, good and respectful communications within the Work Unit and with other Work Units. 

Step 5 - At the end of each quarter, the Quality Manager  provides inputs to the 5.2a-WFT-S1 Work Unit Performance (survey), for this attribute:

  • QUALITY CONTROL - based on how well the Work Unit members avoided or minimized quality problems, including defects, rework, product/service returns, or waste during work flow transportation, inventory, motion, waiting, or other non-value activities or unproductive time.

Step 6 - At the end of each quarter, the Senior Leader for Rewards provides inputs to the 5.2a-WFT-S1 Work Unit Performance (survey), for this attribute:

  • INNOVATION - based on submittal of - or participation in - innovative ideas, improved processes, better procedures, valuable suggestions, positive safety improvements and other useful contributions to the good of the Work Unit, other Work Units and the organization as as whole.

REWARDS MODEL CALCULATIONS

 

The inputs from Steps 1 to 6 are used to capture the ratings and comments in the 5.2a-WFT-S1 Work Unit Performance (survey). The survey outputs are exported and input into the SMdata tab of the 5.2a-WFT-A1 Work Unit Performance Analysis (.xlsx) model. Figure 5.2a-4 (the model) provides the following calculations:

  • Maximum Reward per Person: (Value of Rewards / Total Workers)

  • Max Qtr. Points Cumulative: Set at 35 (7 attributes x max of 5)

  • Average Score (%) - Average of all Work Unit Scores for each quarter

  • Total Rewards Allocated this Qtr. (Sum of Amount Earned by ALL Work Units)

  • Amount Remaining for Carry Over (Value of Rewards - Total Rewards Allocated this Qtr.)

  • Total Workers (Sum of all Workers in all Work Units)

  • Work Unit Titles (from Analysis tab)

  • Number of Workers in Work Unit (direct input from HR Manager)

  • Average Rating (1-5) at Quarter (from Analysis tab ratings for work units)

  • % of Max Points (Average Rating at Quarter/5)

  • Amount Earned by Each Person (Max Reward per Person x % of Max Pts)

  • Amount Earned by Each Work Unit (Number of Workers in Work Unit x Amount Earned Each Person)

PROGRESS: You have reached Milestone 4 (good work). Input the status [85%] on the organization's OE21 Intranet Main page alongside the title of this standard.

Task 5.2a-6 - Integrate Assessment Action Plans into Workforce Excellence Action Plan - The Workforce Engagement Assessment and Work Unit Performance and Rewards Assessments  (Action Plan tabs) may include tasks that should be integrated into the 5.0-WFT-P Workforce Excellence Action Plan. The WFT reviews the Action Plan tabs, and as appropriate, the WFT integrates one or more of the tasks into the Workforce Excellence Action Plan. This integration requires additional resources and approval of the added tasks, resources, schedules and budgets for the plan. 

Task 5.2a-7 - Select 5.2a Workforce Engagement Metrics.

NOTICE: If the organization has an existing Performance Measurement System (PMS), then the internal process is followed to select and review 5.2 Workforce Engagement related measures. If the OE21 tools are used, the following guidelines apply.

Guideline 1 - Select Key Results Indicators (KRI). The KRIs are commonly called Key Performance Indicators (KPI). Examples of KRIs for 5.2 Workforce Engagement are as follows:

  • High-Performance Rewards (Average Score % per quarter) - from Rewards Table 5.2a-5 

  • Workforce Turnover Rate

  • Workforce Safety Incidents

 

Guideline 2 - Table 5.2a-3  presents the implementation steps, actions, references, and instructions sources used for 5.2a Workforce Engagement results.

A_5.2a workforce engagement Metrics tabl

Table 5.2a-3 Implementation and Review of 5.2a Workforce Engagement Metrics

Task 5.2a-7 - Review 5.2a Workforce Engagement Metrics - Conduct regular (at least monthly) reviews of Standard 5.2a Measures. Reviews of KRIs are critical to show whether overall organization performance is moving toward target levels, and key intended outcomes (KIOs) for Workforce Excellence.

  • Correlation: Where possible, the KRD (drivers) are correlated with KRI (indicators) to determine if and how much the KRD Action Plans are helping boost KPI performance.

At this point, regular performance reviews are conducted and attended by the Workforce Focus Team.

  • Figure 5.2a-6 provides an example KRI for 5.2a Workforce Engagement

  • Figure 5.2a-7 provides an example KRD for 5.2a Workforce Engagement

PROGRESS: You have reached Milestone 5 (good work). Input the status [100%] on the organization's OE21 Intranet Main page alongside the title of this standard.

WU Performance Score Trend.png

Figure 5.2a-8  KRI Work Unit Performance Score 

Figure 5.2a-8  Work Unit Performance Score 

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Figure 5.2a-8  KRD Work Unit Engagement