Royal Bank of Scotland
"The translation of employee engagement into shareholder value is the bit that I think is missing in a lot of companies," says Greig Aitken, head of human capital strategy at Royal Bank of Scotland (RBS).
"Knowing that the engagement score of a particular segment of your organisation is 89% is absolutely meaningless unless you understand how you can improve it and what benefits there are to improving it."
At RBS, every business unit knows its measure of employee engagement, and every measure is underpinned by management actions that will impact directly on customer satisfaction and business performance. With more than 40 brands across 30 countries, employing more than 150,000 people, this has been quite a challenge, according to Aitken.
"We had a good starting point when the HR director and I came up with our employee engagement proposition in 2001. We already had a global employee survey, for which we got a response rate of 87%," says Aitken.
The group calculates an 'engagement index' from the annual survey, measuring three key areas: employees' desire to say positive things about RBS, to stay with the company, and to go the extra mile to contribute to business success.
"Employee engagement is not just about employee satisfaction - it is about the discretionary effort that differentiates high-performing staff," he explains.
Once the survey findings have been identified (RBS also draws information from joiners' and leavers' surveys, as well as local 'pulse' surveys), it can build a model of 10 engagement 'drivers'. This feeds back into how the company manages performance, indicating the top three issues staff need to work on, as well as the three they are currently good at, but need to keep an eye on.
"One of the main things that our work has highlighted so far is that three businesses with the same engagement score don't necessarily have the same three reasons to improve," says Aitken.
The index also enables RBS to examine specific business units, or specific segments of staff - for example by tenure, location and seniority. All of this is supported by the RBS hum