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Listen up!
         The Talent Dialogue
         approach to employee
         engagement




Talent
Contents


                                            1    Preface: The chemistry of talent

                                            2    Why employee engagement surveys aren’t enough

                                            3    Talent Dialogue: To drive engagement, be engaged

                                            6    Getting the dialogue going

                                           10    Putting it all together

                                           12    Endnotes

                                           13    Contacts




16   Listen up! The Talent Dialogue approach to employee engagement
Preface: The chemistry
of talent

       For many organizations today, the importance of                                                  opportunity for interaction, you use a variety of tools
       managing talent is no longer an abstraction – it’s an                                            with Talent Dialogue, including social media platforms
       all too pressing reality. Even in the current economy,                                           as well as more traditional forums such as interviews,
       business leaders are searching for solutions that can                                            focus groups, and surveys, to facilitate two-way
       help them continue to attract, retain, and engage key                                            conversation and enlist employees’ active involvement
       talent in an increasingly competitive environment. But                                           in shaping the organization’s talent management
       though it can be tempting to jump right in and start                                             strategies.
       fixing things, it’s essential to first develop a foundation
       of facts that can help you put the right elements                                                For all the talk today about the importance of listening,
       together in a winning combination.                                                               it’s not easy to do it well, especially when it comes
                                                                                                        to talent management. It’s about more than asking
       Talent Dialogue is our recommended approach for                                                  questions; it’s also about listening for opportunities.
       companies seeking those facts from the most reliable                                             The Talent Dialogue approach can help organizations
       source of all – their own employees. Using the                                                   do both. We view the Talent Dialogue approach as an
       Talent Dialogue approach, an employer establishes                                                essential element in the chemistry of talent – a catalyst
       a systematic, ongoing dialogue with its employees                                                for engagement that can help drive exceptionally
       to better understand their views and expectations                                                strong differentiation and a competitive advantage in
       about the employment experience. Unlike point-in-                                                attracting and retaining top talent.
       time employee engagement surveys that offer little


       Strategy                                                                                                                                                        Catalysts

                      Al                  An                         D                                                                                                                Td
                                                                                                                                                                                    Talent
                      Align              Analysis          Differentiate Talent Solutions                                Work Solutions                                           Dialogue

                    Ba                   Wp                       Wi                     Rs                     Ld                     Kc                    Od                  Mcc
                 Business             Workforce              Workforce         Recruitment &             Learning &            Knowledge &          Organizational          Mass Career
                Alignment              Planning             Intelligence              Staffing          Development            Collaboration               Design          Customization

                  Rm                  Cws                           Tr                   O2                   Sm                     Wd                        Jd                     Rt
                                        Critical
                  Risk                Workforce                  Talent          Orientation &           Succession                    Work                     Job             Rewards
            Management                Segments                Roadmap             Onboarding            Management                    Design                  Design      Transformation


                 Hrs                        Ta                    G4                   Pm                       Ad                 Gm                           V                     Ev
                                                                                                                                                                                Employee
                       HR                Talent          Generational            Performance            Accelerated                   Global               Virtual                  Value
                  Strategy
                        gy          Assessment              Strategy
                                                                   gy            Management
                                                                                      g                Development
                                                                                                             p                       Mobility
                                                                                                                                            y           Workplace
                                                                                                                                                            p                 Propositions
                                                                                                                                                                                 p

                                                                    M                 Gs                        Co                     Sn
                                                                                       Global             Coached                    Social
                                                                 Metrics             Sourcing          Organization              Networking
       Infrastructure

                        T                  Sd                      Di                 Cm                         Er                       C                   Cu                     Le
                                              HR
                                         Service
                                         S i                Diversity &              Change                Ethics &
              Technology                 Delivery             Inclusion          Management            Responsibility Communications                         Culture           Leadership

                                                                                                                                                            Core            Differentiating



       As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of
       Deloitte LLP and its subsidiaries.


                                                                                                                     Listen up! The Talent Dialogue approach to employee engagement                  1
Why employee engagement
    surveys aren’t enough

                                          We’re going to open with a statement It’s time to         Engagement matters
                                          be more proactive about understanding employees’          Why do companies even need an employee
                                          preferences, needs, and wants. It’s time to take          engagement strategy? In a nutshell, because
                                          employee engagement to the next level: beyond the         organizations with engaged employees outperform
                                          survey.                                                   organizations with less-engaged employees,
                                                                                                    sometimes by a considerable margin. The evidence
                                          Designed to assess engagement levels or commitment        for this effect is overwhelming: To cite just one
                                          to an organization, employee engagement surveys are       recent study, a 2007 study by Allegiance, an
                                          at the heart of many companies’ engagement feedback       enterprise feedback solutions company, found that
                                          strategies. While engagement surveys can be useful        increasing employee engagement had a direct effect
                                          tools for gathering input, companies often seek to        on customer engagement, which led to increased
                                          assess their responses relative to baseline benchmarks.   sales and profits.1
                                          Few companies would base their customer strategies
                                          and programs on an annual survey and a review             Unfortunately for many businesses, employee
                                          of how they compare to industry averages. Why             engagement is the exception rather than the rule.
                                          then do so many companies continue to rely so             One 2009 Gallup study found that 71 percent
                                          heavily on employee engagement surveys as the             of U.S. employees are either passively or actively
                                          foundation – often the solitary tool – for engaging and   disengaged, putting in just enough energy and effort
                                          understanding the workforce concerns of the multiple      on the job to get by.2
                                          generations of talent in their organizations?
                                                                                                    We believe that results like these make a clear
                                          Quite frankly, we’re not sure. While we recognize         business case for an effective employee engagement
                                          the value of employee surveys, we’re a little surprised   strategy. Without a concerted effort to combat
                                          that they remain the “go-to” approach for tapping         the disengagement so prevalent among today’s
                                          employee opinions. We understand why this may             workers, a company is at high risk of losing out to
                                          have been the case a decade ago, but we believe it’s      competitors that actively cultivate such engagement
                                          no longer the case today. The convergence of new          to help drive outstanding marketplace performance.
                                          technologies and cultural evolution now makes possible
                                          an emerging superior approach – one that can provide
                                          specific insights into the drivers of engagement and
                                          help continually refine that insight through ongoing
                                          two-way communication. We call this approach “Talent
                                          Dialogue.”




2   Listen up! The Talent Dialogue approach to employee engagement
Talent Dialogue: To drive
engagement, be engaged

                                                                             is vitally important to employee engagement, and while
                                                                             a survey may be better than nothing, many employees
“When people really believe their                                            believe that their single anonymous opinion will only

 voice counts, a critical mass for                                           be lost among the mass of responses. Moreover, in our
                                                                             experience, employee engagement survey results have
 change spontaneously emerges. But                                           a reputation for being set on a shelf and never acted
                                                                             on or revisited. This not only decreases employees’
 in companies that lack interactive                                          motivation to participate, but can actually detract from

 discourse, it’s harder to mobilize the                                      any engagement generated from having a feedback forum
                                                                             at all.
 energy and the innovation required                                          The idea of Talent Dialogue, in contrast, is to maintain
 to reverse sagging fortunes.”3                                              an ongoing, interactive process of feedback and
                                                                             communication between an organization and its
                                                                             employees. Through the Talent Dialogue process,
               When companies develop new services and products, they        employees and employers share their needs, preferences,
               almost always start by listening to their customers. They     and goals with each other on a real-time basis. Employers
               take their ideas out into the world and ask for feedback      can gain a better understanding of what employees
               anywhere they can find it. They do extensive market            value and why, which can inform the development of
               research, listening carefully for ideas that can make their   total rewards programs and other workplace initiatives
               goods or services more marketable. They are tuned in to       specifically designed to enhance employee engagement.
               possibilities, react quickly to changing environments, and    Employees, in turn, can gain a better understanding of
               invest in Customer Relationship Management. In short,         what the company needs and expects from them, as well
               they’re customer-centric: They know that developing           as the sense of having a real say in how the business is
               a salable product depends crucially on their ability to       run.
               understand and address their customers’ needs.

               When it comes to talent and the workplace, however,
               many organizations don’t even pretend to listen, let alone
               pursue extended conversations. Even highly successful
               companies often limit their formal efforts to an annual
               engagement survey. This, they reason, is enough to get           Business
                                                                                Strategy
               the job done – and besides, it would be too cumbersome
               and too expensive to do more. Right?
                                                                                                           Talent
                                                                                                          Dialogue                    Talent
               Wrong. And wrong. The reality is that today’s diverse                                                                 Strategy
                                                                                                                                       and
               workforce, which includes employees from four                                                                         Solutions
               generations and the full spectrum of global cultures and
               backgrounds, needs a more refined “market research”
               approach than many companies realize. Further, a survey
               – a series of simple questions and answers that yield a
               depersonalized compilation of percentages and charts –
               neither gives employers the ability to explore the views
               of individual employees, nor employees the sense that
               their voice is being heard. The feeling of having an impact


                                                                                    Listen up! The Talent Dialogue approach to employee engagement   3
Beyond improving the quality of information exchange,        Fostering engagement now can help drive
                                          the Talent Dialogue process can itself increase              competitive advantage in the upturn
                                          engagement by helping employees feel included in             A tough economy doesn’t mean that business leaders
                                          decisions in which they have a vital stake: their rewards,   can relax with respect to employee engagement.
                                          their careers, and their work environment. In fact, using    It’s a historical fact that voluntary turnover rates
                                          the Talent Dialogue approach can help foster an overall      rise as unemployment rates decrease and consumer
                                          culture of engagement based on a long-term commitment        confidence improves.5 This means that companies can
                                          by management to seeking and considering employee            expect higher attrition when the economy starts to
                                          feedback. Even though management won’t always give           recover – and the hardest hit will likely be companies
                                          employees everything they want, the mere fact that a         whose employees have become most unmotivated,
                                          dialogue has taken place can help make employees more        unattached, and disengaged during the downturn.
                                          likely to accept management’s decisions.
                                                                                                       This projected labor market dynamic can give
                                          We think that most companies can plausibly establish a       proactive companies the opportunity to seize
                                          meaningful level of Talent Dialogue with an investment       competitive advantage as they plan for the upturn.
                                          comparable to the cost of administering, analyzing,          Business leaders may not be able to avoid cutting
                                          and interpreting a typical employee engagement               headcount, freezing salaries, or making other
                                          survey. Thanks to strides in social media and interactive    necessary changes in their efforts to survive the
                                          technologies, cost-effective options abound for companies    downturn, but they can strive to do so in a way
                                          seeking to establish scalable dialogue with their            that preserves their trustworthiness and credibility
                                          employees. From a bottom-line perspective, moreover,         among the surviving employees. Trust can help keep
                                          the business benefits of Talent Dialogue can be well          employees supportive of their organization even
                                          worth the initial investment. It’s estimated that using      when the organization’s decisions are unfavorable,6
                                          employee feedback increases a company’s market value         which may help keep them more productive during
                                          by 1.3 percent4 – and that’s just from using standard        the recession as well as reduce turnover during the
                                          engagement surveys. It’s entirely reasonable to think that   recovery.
                                          the richer, deeper interaction from Talent Dialogue can
                                          drive even greater benefits.                                  Because timely, honest communication can be one of
                                                                                                       the most effective ways to build employee trust,7 now
                                                                                                       might be an excellent time to consider starting Talent
                                                       High-touch dialogue = High engagement
                                                                                                       Dialogue with your people.




4   Listen up! The Talent Dialogue approach to employee engagement
Though Talent Dialogue may eventually make employee          One long-standing practice to be wary of, however, is
engagement surveys redundant, companies that aren’t          the use of external benchmarks as the standard against
ready to give up surveys just yet can still incorporate      which to measure one’s own human resource programs.
them into their overall Talent Dialogue strategy. One        While benchmarks can be useful, they focus attention on
approach might be to reallocate resources to a 10            the wrong thing: what other companies, with different
percent investment in the survey – which can help define      employees, issues, and strategic priorities from one’s own,
the broad scope of the engagement effort – and a 90          are doing in a relatively limited range of areas. Rather than
percent investment in Talent Dialogue, which refines          uncritically seeking to match marketplace benchmark,
management’s understanding of the problems and enlists       leaders often could do better by focusing on identifying
employees’ help in developing solutions. This multilayered   and addressing the issues that can make a difference to
approach should produce much better results for              their own employees in the context of their own business
engagement, and ultimately the bottom line, than relying     goals. Being behind a particular benchmark may well be
on surveys alone.                                            fine if that area doesn’t significantly affect engagement
                                                             or align with business priorities – and a complete Talent
                                                             Dialogue strategy can allow companies to take those
                                                             factors into account. In fact, much of a company’s
                                                             Talent Dialogue investment should go towards analyzing
                                                             employee feedback to give leaders the information they
                                                             need to build effective solutions.




                                                                     Listen up! The Talent Dialogue approach to employee engagement   5
Getting the dialogue
    going

                                          The mechanics of Talent Dialogue can often be readily         Targeting Talent Dialogue
                                          implemented using tools and processes you already             Just as a company targets particular customer
                                          maintain. But before you do that, it’s essential to first      segments with its products or services, an effective
                                          figure out what you want to talk about and what you’re         Talent Dialogue strategy should target “critical
                                          planning to do with the information.                          workforce segments” – employees and leaders
                                                                                                        who are hard to find, hard to replace, and/or drive
                                          The first step in launching Talent Dialogue should be to       a disproportionate amount of enterprise value.
                                          define a Talent Dialogue strategy that includes specific        The reason: An organization can’t be all things to
                                          Talent Dialogue objectives and a plan for analyzing,          all people – and if the choice needs to be made,
                                          responding to, and using the information it generates. As     investments in employees who are more central
                                          part of the strategy, leaders should segment the Talent       to value creation will improve performance more
                                          Dialogue audience (see sidebar), address where dialogue       than comparable investments in other employee
                                          fits within business and functional units, and allocate        populations.
                                          the resources necessary for operating and maintaining
                                          the dialogue. It’s also vital to monitor and track Talent     This doesn’t mean that you should ignore
                                          Dialogue activities to refine and continuously improve the     employee groups who don’t qualify as “critical.”
                                          approach.                                                     (Indeed, doing so can be one of the best ways to
                                                                                                        turn them “critical” in both senses: They’ll criticize
                                          Once the strategy is in place, a company can jumpstart        you for leaving them out of the dialogue, and their
                                          the dialogue with what we call “Dialogue 1.0” – pursuing      dissatisfaction with this may make them more likely
                                          Talent Dialogue through the tools, processes, and vehicles    to leave.) Rather, Talent Dialogue seeks to engage
                                          it already has in place for interacting with its employees.   with all employees – but the topics of discussion,
                                          Some of these tried-and-true communications forums            and management’s resulting actions, should be
                                          include:                                                      weighted toward the concerns employees whose
                                                                                                        engagement is needed most. Segmenting the
                                          • Coaching                                                    employee base in this way can help a company
                                          • Exit interviews                                             boost its return on investment even further above
                                          • Focus groups                                                that of a relatively undifferentiated engagement
                                          • Interviews                                                  survey.
                                          • Information gathered at employee enrollment or
                                            election points roundtables
                                          • Councils
                                          • Surveys




6   Listen up! The Talent Dialogue approach to employee engagement
At many companies, the technology to enable Dialogue

“Open communication comes in many                                          2.0 may already exist or be under construction. In a
                                                                           recent survey, more than three-fourths of executives
 forms. But the form is not important                                      say they plan to maintain or increase investments in
                                                                           social networking, blogs, wikis, and other technologies
 here. What is important is a philosophy                                   that encourage peer collaboration.9 Companies whose

 of openly sharing and trusting others                                     in-house IT infrastructures cannot support certain social
                                                                           media tools can turn to a growing number of vendors to
 with critical information. Everyone                                       design, implement, and even host their Talent Dialogue
                                                                           platform. Certain consumer platforms can be a viable
 communicates – some more openly                                           option for some companies as well, allowing them to test-

 than others. The greater the sharing, the                                 drive Talent Dialogue before or while building an internal
                                                                           corporate platform. The feedback is out there however,
 greater the rewards for employees and                                     and the challenge for companies is to figure out how to
                                                                           capture, analyze, and use it.
 corporation.”8
                                                                             Setting the boundaries
              The next level of Talent Dialogue, “Dialogue 2.0,”             One caution regarding the use of social media
              supplements Dialogue 1.0 by using social media                 technologies is that they can make it easy to share
              mechanisms, enabled by modern communications                   information in inappropriate as well as appropriate
              technologies, to help knit employees and employers into        ways. For example, people may intentionally or
              an evolving, interactive community. (Table 1 on page 9         unintentionally post content that constitutes sexual
              gives a sampling of social media mechanisms that are           harassment, violates confidentiality agreements,
              popular today, along with some considerations for their        or otherwise exposes the company to legal action
              use in Dialogue 2.0). As a platform for Talent Dialogue,       or puts leadership in an awkward position. It’s
              social media tools have several advantages over many of        important for employers using these technologies
              the Dialogue 1.0 mechanisms: They’re more economical           to strike a balance between managing the risks of
              to deploy on a large scale; they’re available 24/7, so         too-untrammeled communication and maintaining
              employees can engage in dialogue at their convenience;         the freedom for employees to honestly express their
              they’re collaborative, allowing employees to interact with     ideas and opinions.
              each other as well as with management; and they’re
              flexible. Most of all, as evidenced by the popularity of
              sites such as Facebook, LinkedIn, and MySpace, many
              employees have already embraced social networking
              in their personal lives and would likely find it natural to
              engage in it at work as well, discussing and providing
              feedback that is more targeted at their employment
              experience.




                                                                                  Listen up! The Talent Dialogue approach to employee engagement   7
Whether your initial efforts rely primarily on Dialogue   The power of social networking: Best Buy
                                          1.0, Dialogue 2.0, or a mix, some general principles to   Blue Shirt Nation, Best Buy’s employees-only social
                                          consider that could help strengthen the results:          network, wasn’t meant to be a window into employee
                                                                                                    opinions and viewpoints. But that’s what it became
                                          • Use multiple approaches. People who hate filling         as it grew from its origins as a forum for ad campaign
                                            out surveys may be avid bloggers and message            development to a sprawling, multifaceted online
                                            board readers. Employees skeptical about                community with 14,000 employees logging in each
                                            posting to an online forum may be amenable to           month. Although employees use the board to discuss
                                            sitting on a live or tele-/videoconference focus        everything from video games to photography, most of
                                            group. Consider which tools and methods are             the conversation focuses on the experience of working
                                            most appropriate for particular audiences and           for Best Buy – and company leaders are listening.
                                            objectives, and combine them in a way that allows
                                            you to reach the people you want to reach in a          Take the time that Best Buy executives changed its
                                            way that works for them.                                employee discount policy. The changes sparked a torrent
                                                                                                    of commentary on Blue Shirt Nation, one of whose
                                          • Consider your employees’ adoption of and                members wrote, “Don’t like the changes? Let your
                                            comfort with technology. A company where                opinion be heard! ...We may not be able to stop the
                                            almost everyone spends their working hours at a         change from happening, but we can definitely let our
                                            computer with e-mail and the Internet will find          company know exactly how displeased we are about it.”
                                            Dialogue 2.0 easier to implement than one where         Three days later, management posted a reply: “We heard
                                            most of the work is done “unplugged.”                   you. You made it very clear how valuable the employee
                                                                                                    discount is, and based on that feedback we have
                                          • Rely on continuous feedback from employees              decided NOT to change it.” Thanks to Blue Shirt Nation,
                                            instead of intermittent spot checks. Build Talent       executives got an inside view of just how important the
                                            Dialogue into how you do business so that it helps      discount was to employee engagement and decided
                                            you anticipate and plan for workforce issues.           that it was better for business to keep the program in its
                                                                                                    original form.
                                          • Respond to employees’ views in a timely manner,
                                            even if it means admitting you’re not sure about        Blue Shirt Nation not only gives employees a platform
                                            something. This can represent a major change for        for grass-roots action, but also helps business leaders
                                            leaders who believe that it’s better to keep things     find both ideas and talent that they otherwise might
                                            quiet until decisions are set in stone.                 never have come across. For example, in summer 2007,
                                                                                                    an employee named Ashley was invited to a Best Buy
                                          • Ask “What if?” questions with scaled responses          women’s leadership forum, where she spent four hours
                                            that allow you to crunch the data more reliably.        discussing improvements to the business with “someone
                                            Avoid fuzzy questions that are open to a lot of         named Kal.” Later, Ashley discovered that “Kal” was Kal
                                            interpretation.                                         Patel, Best Buy’s EVP of strategy. Ashley recalls, “He saw
                                                                                                    my posts on BSN and said to his assistant, ‘I need to meet
                                          • Keep improving. Refine your questions to build on        that girl!’”
                                            answers already received.
                                                                                                    Even though Best Buy doesn’t call it Talent Dialogue,
                                                                                                    both of these examples illustrate Talent Dialogue in action
                                                                                                    – an interactive feedback loop between employees and
                                                                                                    management, using Best Buy Nation as the enabler, that
                                                                                                    helps both parties understand what the other wants and
                                                                                                    expects and guides appropriate actions to strengthen
                                                                                                    employee engagement.10

8   Listen up! The Talent Dialogue approach to employee engagement
Table 1. A sampling of social media tools

 Social     Consumer and
 media      enterprise                                         Talent Dialogue               Employee                                                      Limitations and
 type       examples            Description                    Value                         engagement value                 Other value                  shortcomings

 Wikis      •   Wikipedia       • Collaborative Web sites      • Wikis can be used for       • Employees contributing         • Wikis can be used to       • Employees can become
            •   Atlassian         that allow users to easily     open collaboration on         to a corporate wiki for          collaboratively develop      disengaged if their
            •   SocialText        create and edit content,       the detailed design of an     this purpose not only            business solutions in        contributed content is
            •   MediaWiki         drawing on the combined        employee engagement           feel but know that their         other areas in addition      overwritten by another
            •   MindTouch         knowledge of its users         strategy or solution          input is being used to           to talent and employee       user or edited by an
                                                                                               drive a solution that will       engagement solutions         administrator
                                                                                               affect their employment
                                                                                               experience

 Social     •   Facebook        • Technology that allows       • An appropriately            • Social networking can          • Social networks            • As content is posted and
 net-       •   MySpace           users to leverage personal     designed, well-               enhance employee                 can enable people            not necessarily directly
 working    •   LinkedIn          connections to link            trafficked enterprise          engagement by creating           to discuss topics            provided to leadership,
            •   Awareness         to and communicate             social network allows         a sense of community             outside of employee          a monitored social
            •   Jive Software     with friends, family,          employees to share            and enabling employees           engagement and talent        networking site can
            •   Communispace      colleagues, or others with     their ideas and opinions      to connect with and              programs                     create employee angst
            •   Microsoft         similar interests              in their personal page        share ideas with                                              about sharing or voicing
                SharePoint                                       or through group/             colleagues                     • Social network               opinions
                                                                 community involvement                                          design can provide a
                                                                                                                                knowledge-sharing          • Requires appropriate
                                                               • Leaders can not only                                           and knowledge                design for the desired
                                                                 see employee dialogue                                          management solution          functionality as enterprise
                                                                 but also interact                                                                           or corporate social
                                                                 directly with employees                                      • Social networks              networks can vary greatly.
                                                                 themselves                                                     can help employees
                                                                                                                                or managers find
                                                                                                                                knowledgeable people
                                                                                                                                in other parts of the
                                                                                                                                business and get
                                                                                                                                questions answered
                                                                                                                                quickly

 Blogs      • Blogger           • Simple online journal        • Blogs allow employees       • Blogs give employees           • Corporate blogs can        • There is no not guarantee
            • Six Apart           entries or update              to directly provide           the opportunity and              be used as executive         that the ideas in blogs are
            • Automattic          messages that support          unchallenged                  channel to voice their           or leadership                read or considered
                                  text, photos, or video         perspectives to an            opinions and ideas               communication vehicles
                                                                 organization on
                                                                 employee engagement                                          • Blogs can also be
                                                                 programs and solutions                                         used to provide status
                                                                                                                                updates on corporate
                                                                                                                                initiatives



 Presence   •   Twitter         • Very lightweight and         • Similar to a blog, a        • A corporate microblog          • Like blogs, a microblog    • Unlike a blog, a
 and        •   Automattic        portable software which        microblog allows              can help engage                  can serve as a               microblog only provides
 micro-     •   Yammer            allows users to share          employees to directly         employees who find                communication vehicle        space for a small snippet
 blogging   •   SocialCast        their immediate thoughts       provide unchallenged          value in providing status        for leadership and/or        of information, limiting
                                  by publishing brief text       perspectives or updates       updates and monitoring           program updates              a company’s ability
                                  updates, typically via the     to an organization that       or following other                                            to provide detailed
                                  Web, text messaging, IM,       can be actively followed      employees as a sense of        • The very short               information and to gather
                                  or email                       and/or monitored by           connectedness                    microblog format             and analyze substantive
                                                                 leadership                                                     and the portability          employee feedback
                                                                                                                                of the technology,
                                                                                                                                which allows people
                                                                                                                                to broadcast thoughts
                                                                                                                                quickly and easily,
                                                                                                                                lowers the barrier to
                                                                                                                                entry that a longer blog
                                                                                                                                format might present

                                                                                                                            Listen up! The Talent Dialogue approach to employee engagement   9
Putting it all together


                                                                      Companies today can’t afford to ignore the voices of
                                                                      their employees. The global talent crunch is creating a
     “The challenges of speed, quality, and                           seller’s market for talent with scarce skills, while modern
                                                                      communications technologies give the masses greater
      global reach, which require trust, also                         visibility and influence than ever before. In a highly
      have precipitated distrust, through                             networked world, employee feedback is a given; the only
                                                                      choice for employers is whether to fear it as a threat or
      corporate restructuring, downsizing,                            leverage it as an opportunity.

      and fundamental violations of the                               Talent Dialogue is one way that companies can turn
      psychological contracts connecting                              the accelerating phenomenon of real-time, interactive
                                                                      communication to their own business advantage. It offers
      individuals with organizations...                               employers the chance to build trust with their critical
                                                                      audiences now, rather than as a reaction to the pressure
      Bringing these conditions together, we                          of the masses later on. It can be a game-changing
      see that the challenges of the modern                           strategy for businesses looking to differentiate themselves
                                                                      in an increasingly difficult talent market. Engaging in
      global marketplace center on the                                constructive dialogue with your employees can open up
                                                                      new ideas and create an exciting forum for collaboration,
      simultaneous management of trust                                not just about what they think about the workplace and
      and distrust in a hostile environment                           their jobs, but what they are seeing on the ground as they
                                                                      interact with your customers. It can give every employee
      in which individuals may be just as                             the feeling that they have a voice in how the business is
                                                                      run. And that is the true value of dialogue: Being heard,
      inclined to distrust as they are to                             making a contribution, and feeling engaged.
      trust.”11                                                       A well-managed dialogue between critical talent and
                                                                      business leaders is an essential way of getting the insights
                                                                      you need for strategic workforce planning. After all, your
                                                                      employees are the ones doing the work. They’re the ones
                                                                      trying to balance their lives and careers, and they’re the
                                                                      ones you depend on to deliver enterprise value. Listen to
                                                                      them. Get the facts. Understand them. And act.




10   Listen up! The Talent Dialogue approach to employee engagement
Talent Dialogue for enterprise transformation
As a tool for understanding employees’ views and
driving greater engagement, Talent Dialogue can be
of value in more areas than informing and driving an
organization’s overall talent management strategy.
Proactive organizations can apply the concepts
and approach of Talent Dialogue within a larger
transformation initiative as well (e.g., a merger,
restructuring or large technology project). Engaging
in Talent Dialogue focused on such changes can help
companies not only foster employee buy-in, but also
improve the initiative’s ROI by seeking input from
employees and developing an approach that better
meets their needs and wants.

Deloitte’s research and experience suggest that
people and organizational issues are among the most
significant challenges in any transformational change.
Establishing an open dialogue with employees
throughout the process can help companies better
manage the impact on its people and make a smooth
transition to the new state of higher productivity.
As employees participate in dialogue about the
change, they can contribute useful insights to the
design of the change program itself; they become
more informed about, committed to, and prepared
for the change; and they gain a further level of
commitment to the organization as a whole. In this
way, we believe Talent Dialogue can add value to any
organizational transformation or initiative.




                                                        Listen up! The Talent Dialogue approach to employee engagement   11
Endnotes


                                           1                                                              7
                                               Gary Rhoades, The Spillover Effect: Recognizing and            Bill Chafetz, Robin Adair Erickson, and Josh Ensell,
                                               managing this single business principle can provide            “Where did our employees go? Examining the rise in
                                               organizations with millions in extra profits, Allegiance,       voluntary turnover during economic recoveries,” Deloitte
                                               2008.                                                          Review, Deloitte Development LLC, 2009 (in press).

                                           2                                                              8
                                               Curt Coffman, “The High Cost of Disengaged                     Keith Denton, “Open communication - importance
                                               Employees”, GALLUP Management Journal, May 1,                  of effective communication systems in corporations;
                                               2009 <http://gmj.gallup.com/content/247/High-Cost-             General Electric Co. and Cypress Semiconductor Corp.
                                               Disengaged-Employees.aspx>                                     case studies”, Business Horizons, May 1, 2009 http://
                                                                                                              findarticles.com/p/articles/mi_m1038/is_n5_v36/
                                           3
                                               Richard Luecke, Managing Change and Transition,                ai_14723295/?tag=content;col (accessed May 1, 2009).
                                               Harvard Business School Press, 2003 p 27.
                                                                                                          9
                                                                                                               Jacques Bughin and James Manyika, “How businesses
                                           4
                                               Watson Wyatt ,“Effective Employee Communication                 are using Web 2.0,” McKinsey Quarterly, McKinsey &
                                               Linked to Stronger Financial Performance ,” www.                Company, 2007.
                                               HR.com, November 8, 2005 <http://www.hr.com/
                                                                                                          10
                                               SITEFORUM?&t=/Default/gateway&i=11164232562                     Charlene Li, and Josh Bernoff. Groundswell: Winning In
                                               81&application=story&active=no&ParentID=11192                   A World Transformed By Social Technologies. Harvard
                                               78002800&StoryID=1132067909608&xref=http%3                      Business Press. © 2008. Books24x7. <http://common.
                                               A//www.google.com/search%3Fq%3DEffective+Em                     books24x7.com/book/id_27116/book.asp> (accessed
                                               ployee+Communication+Linked+to+Stronger+Finan                   May 8, 2009).
                                               cial+Performance+%26ie%3Dutf-8%26oe%3Dutf-
                                                                                                          11
                                               8%26aq%3Dt%26rls%3Dorg.mozilla%3Aen-US%3Aoffi                    Roy J. Lewicki, Daniel J. McAllister, and Robert J. Bies,
                                               cial%26client%3Dfirefox-a>                                       “Trust and distrust: new relationships and realities,”
                                                                                                               Academy of Management Review, 1998, Vol. 23.3,
                                           5
                                               Bill Chafetz, Robin Adair Erickson, and Josh Ensell,            438-458, cited in Robin Adair Erickson, “Here today but
                                               “Where did our employees go? Examining the rise in              what about tomorrow? Retaining downsizing survivors,”
                                               voluntary turnover during economic recoveries,” Deloitte        Deloitte Consulting LLP, January 2009.
                                               Review, Deloitte Development LLC, 2009 (in press).

                                           6
                                               Joel Brockner, Phyllis A. Siegel, Joseph P. Daly, Tom
                                               Tyler, and Christopher Martin, “When nrust matters:
                                               The moderating effect of outcome favorability,”
                                               Administrative Science Quarterly, 1997, Vol. 42.3,
                                               558-583, cited in Robin Adair Erickson and Michael
                                               E. Roloff, Northwestern University, Evanston, Illinois,
                                               USA, “Reducing attrition after downsizing: Analyzing
                                               the effects of organizational support, supervisor
                                               support, and gender on organizational commitment,”
                                               International Journal of Organizational Analysis, 2007,
                                               Vol. 15.1, 35-55.




12   Listen up! The Talent Dialogue approach to employee engagement
Contacts


      Jeff Schwartz
      Global Practice Leader
      Organization and Change
      Deloitte Consulting LLP
      United States
      +1 703 251 1501
      jeffschwartz@deloitte.com

      Andy Liakopoulos
      Practice Leader, Talent Strategies
      Organization and Talent
      Deloitte Consulting LLP
      United States
      +1 312 486 2777
      aliakopoulos@deloitte.com

      Leah A. Reynolds
      Human Capital
      Deloitte Consulting LLP
      United States
      +1 313 396 3107
      leahreynolds@deloitte.com

      Graham Dodd
      Human Capital
      Deloitte Consulting LLP
      Canada
      +1 604 601 3461
      gdodd@deloitte.ca

      Kevin Zobel
      Human Capital
      Deloitte Consulting LLP
      United States
      +1 212 313 1551
      kzobel@deloitte.com




                                           Listen up! The Talent Dialogue approach to employee engagement   13
This publication contains general information only and is based on the experiences and research of Deloitte practitioners. Deloitte is not,
by means of this publication, rendering business, financial, investment, or other professional advice or services. This publication is not a
substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business.
Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte,
its affiliates, and related entities shall not be responsible for any loss sustained by any person who relies on this publication.



About Deloitte
Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a
globally connected network of member firms in 140 countries, Deloitte brings world-class capabilities and deep local expertise to help
clients succeed wherever they operate. Deloitte’s 150,000 professionals are committed to becoming the standard of excellence.

Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which is a legally
separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche
Tohmatsu and its member firms. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and
its subsidiaries.
Member of Deloitte Touche Tohmatsu

Copyright © 2009 Deloitte Development LLC. All rights reserved.

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The Talent Dialogue

  • 1. Listen up! The Talent Dialogue approach to employee engagement Talent
  • 2. Contents 1 Preface: The chemistry of talent 2 Why employee engagement surveys aren’t enough 3 Talent Dialogue: To drive engagement, be engaged 6 Getting the dialogue going 10 Putting it all together 12 Endnotes 13 Contacts 16 Listen up! The Talent Dialogue approach to employee engagement
  • 3. Preface: The chemistry of talent For many organizations today, the importance of opportunity for interaction, you use a variety of tools managing talent is no longer an abstraction – it’s an with Talent Dialogue, including social media platforms all too pressing reality. Even in the current economy, as well as more traditional forums such as interviews, business leaders are searching for solutions that can focus groups, and surveys, to facilitate two-way help them continue to attract, retain, and engage key conversation and enlist employees’ active involvement talent in an increasingly competitive environment. But in shaping the organization’s talent management though it can be tempting to jump right in and start strategies. fixing things, it’s essential to first develop a foundation of facts that can help you put the right elements For all the talk today about the importance of listening, together in a winning combination. it’s not easy to do it well, especially when it comes to talent management. It’s about more than asking Talent Dialogue is our recommended approach for questions; it’s also about listening for opportunities. companies seeking those facts from the most reliable The Talent Dialogue approach can help organizations source of all – their own employees. Using the do both. We view the Talent Dialogue approach as an Talent Dialogue approach, an employer establishes essential element in the chemistry of talent – a catalyst a systematic, ongoing dialogue with its employees for engagement that can help drive exceptionally to better understand their views and expectations strong differentiation and a competitive advantage in about the employment experience. Unlike point-in- attracting and retaining top talent. time employee engagement surveys that offer little Strategy Catalysts Al An D Td Talent Align Analysis Differentiate Talent Solutions Work Solutions Dialogue Ba Wp Wi Rs Ld Kc Od Mcc Business Workforce Workforce Recruitment & Learning & Knowledge & Organizational Mass Career Alignment Planning Intelligence Staffing Development Collaboration Design Customization Rm Cws Tr O2 Sm Wd Jd Rt Critical Risk Workforce Talent Orientation & Succession Work Job Rewards Management Segments Roadmap Onboarding Management Design Design Transformation Hrs Ta G4 Pm Ad Gm V Ev Employee HR Talent Generational Performance Accelerated Global Virtual Value Strategy gy Assessment Strategy gy Management g Development p Mobility y Workplace p Propositions p M Gs Co Sn Global Coached Social Metrics Sourcing Organization Networking Infrastructure T Sd Di Cm Er C Cu Le HR Service S i Diversity & Change Ethics & Technology Delivery Inclusion Management Responsibility Communications Culture Leadership Core Differentiating As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Listen up! The Talent Dialogue approach to employee engagement 1
  • 4. Why employee engagement surveys aren’t enough We’re going to open with a statement It’s time to Engagement matters be more proactive about understanding employees’ Why do companies even need an employee preferences, needs, and wants. It’s time to take engagement strategy? In a nutshell, because employee engagement to the next level: beyond the organizations with engaged employees outperform survey. organizations with less-engaged employees, sometimes by a considerable margin. The evidence Designed to assess engagement levels or commitment for this effect is overwhelming: To cite just one to an organization, employee engagement surveys are recent study, a 2007 study by Allegiance, an at the heart of many companies’ engagement feedback enterprise feedback solutions company, found that strategies. While engagement surveys can be useful increasing employee engagement had a direct effect tools for gathering input, companies often seek to on customer engagement, which led to increased assess their responses relative to baseline benchmarks. sales and profits.1 Few companies would base their customer strategies and programs on an annual survey and a review Unfortunately for many businesses, employee of how they compare to industry averages. Why engagement is the exception rather than the rule. then do so many companies continue to rely so One 2009 Gallup study found that 71 percent heavily on employee engagement surveys as the of U.S. employees are either passively or actively foundation – often the solitary tool – for engaging and disengaged, putting in just enough energy and effort understanding the workforce concerns of the multiple on the job to get by.2 generations of talent in their organizations? We believe that results like these make a clear Quite frankly, we’re not sure. While we recognize business case for an effective employee engagement the value of employee surveys, we’re a little surprised strategy. Without a concerted effort to combat that they remain the “go-to” approach for tapping the disengagement so prevalent among today’s employee opinions. We understand why this may workers, a company is at high risk of losing out to have been the case a decade ago, but we believe it’s competitors that actively cultivate such engagement no longer the case today. The convergence of new to help drive outstanding marketplace performance. technologies and cultural evolution now makes possible an emerging superior approach – one that can provide specific insights into the drivers of engagement and help continually refine that insight through ongoing two-way communication. We call this approach “Talent Dialogue.” 2 Listen up! The Talent Dialogue approach to employee engagement
  • 5. Talent Dialogue: To drive engagement, be engaged is vitally important to employee engagement, and while a survey may be better than nothing, many employees “When people really believe their believe that their single anonymous opinion will only voice counts, a critical mass for be lost among the mass of responses. Moreover, in our experience, employee engagement survey results have change spontaneously emerges. But a reputation for being set on a shelf and never acted on or revisited. This not only decreases employees’ in companies that lack interactive motivation to participate, but can actually detract from discourse, it’s harder to mobilize the any engagement generated from having a feedback forum at all. energy and the innovation required The idea of Talent Dialogue, in contrast, is to maintain to reverse sagging fortunes.”3 an ongoing, interactive process of feedback and communication between an organization and its employees. Through the Talent Dialogue process, When companies develop new services and products, they employees and employers share their needs, preferences, almost always start by listening to their customers. They and goals with each other on a real-time basis. Employers take their ideas out into the world and ask for feedback can gain a better understanding of what employees anywhere they can find it. They do extensive market value and why, which can inform the development of research, listening carefully for ideas that can make their total rewards programs and other workplace initiatives goods or services more marketable. They are tuned in to specifically designed to enhance employee engagement. possibilities, react quickly to changing environments, and Employees, in turn, can gain a better understanding of invest in Customer Relationship Management. In short, what the company needs and expects from them, as well they’re customer-centric: They know that developing as the sense of having a real say in how the business is a salable product depends crucially on their ability to run. understand and address their customers’ needs. When it comes to talent and the workplace, however, many organizations don’t even pretend to listen, let alone pursue extended conversations. Even highly successful companies often limit their formal efforts to an annual engagement survey. This, they reason, is enough to get Business Strategy the job done – and besides, it would be too cumbersome and too expensive to do more. Right? Talent Dialogue Talent Wrong. And wrong. The reality is that today’s diverse Strategy and workforce, which includes employees from four Solutions generations and the full spectrum of global cultures and backgrounds, needs a more refined “market research” approach than many companies realize. Further, a survey – a series of simple questions and answers that yield a depersonalized compilation of percentages and charts – neither gives employers the ability to explore the views of individual employees, nor employees the sense that their voice is being heard. The feeling of having an impact Listen up! The Talent Dialogue approach to employee engagement 3
  • 6. Beyond improving the quality of information exchange, Fostering engagement now can help drive the Talent Dialogue process can itself increase competitive advantage in the upturn engagement by helping employees feel included in A tough economy doesn’t mean that business leaders decisions in which they have a vital stake: their rewards, can relax with respect to employee engagement. their careers, and their work environment. In fact, using It’s a historical fact that voluntary turnover rates the Talent Dialogue approach can help foster an overall rise as unemployment rates decrease and consumer culture of engagement based on a long-term commitment confidence improves.5 This means that companies can by management to seeking and considering employee expect higher attrition when the economy starts to feedback. Even though management won’t always give recover – and the hardest hit will likely be companies employees everything they want, the mere fact that a whose employees have become most unmotivated, dialogue has taken place can help make employees more unattached, and disengaged during the downturn. likely to accept management’s decisions. This projected labor market dynamic can give We think that most companies can plausibly establish a proactive companies the opportunity to seize meaningful level of Talent Dialogue with an investment competitive advantage as they plan for the upturn. comparable to the cost of administering, analyzing, Business leaders may not be able to avoid cutting and interpreting a typical employee engagement headcount, freezing salaries, or making other survey. Thanks to strides in social media and interactive necessary changes in their efforts to survive the technologies, cost-effective options abound for companies downturn, but they can strive to do so in a way seeking to establish scalable dialogue with their that preserves their trustworthiness and credibility employees. From a bottom-line perspective, moreover, among the surviving employees. Trust can help keep the business benefits of Talent Dialogue can be well employees supportive of their organization even worth the initial investment. It’s estimated that using when the organization’s decisions are unfavorable,6 employee feedback increases a company’s market value which may help keep them more productive during by 1.3 percent4 – and that’s just from using standard the recession as well as reduce turnover during the engagement surveys. It’s entirely reasonable to think that recovery. the richer, deeper interaction from Talent Dialogue can drive even greater benefits. Because timely, honest communication can be one of the most effective ways to build employee trust,7 now might be an excellent time to consider starting Talent High-touch dialogue = High engagement Dialogue with your people. 4 Listen up! The Talent Dialogue approach to employee engagement
  • 7. Though Talent Dialogue may eventually make employee One long-standing practice to be wary of, however, is engagement surveys redundant, companies that aren’t the use of external benchmarks as the standard against ready to give up surveys just yet can still incorporate which to measure one’s own human resource programs. them into their overall Talent Dialogue strategy. One While benchmarks can be useful, they focus attention on approach might be to reallocate resources to a 10 the wrong thing: what other companies, with different percent investment in the survey – which can help define employees, issues, and strategic priorities from one’s own, the broad scope of the engagement effort – and a 90 are doing in a relatively limited range of areas. Rather than percent investment in Talent Dialogue, which refines uncritically seeking to match marketplace benchmark, management’s understanding of the problems and enlists leaders often could do better by focusing on identifying employees’ help in developing solutions. This multilayered and addressing the issues that can make a difference to approach should produce much better results for their own employees in the context of their own business engagement, and ultimately the bottom line, than relying goals. Being behind a particular benchmark may well be on surveys alone. fine if that area doesn’t significantly affect engagement or align with business priorities – and a complete Talent Dialogue strategy can allow companies to take those factors into account. In fact, much of a company’s Talent Dialogue investment should go towards analyzing employee feedback to give leaders the information they need to build effective solutions. Listen up! The Talent Dialogue approach to employee engagement 5
  • 8. Getting the dialogue going The mechanics of Talent Dialogue can often be readily Targeting Talent Dialogue implemented using tools and processes you already Just as a company targets particular customer maintain. But before you do that, it’s essential to first segments with its products or services, an effective figure out what you want to talk about and what you’re Talent Dialogue strategy should target “critical planning to do with the information. workforce segments” – employees and leaders who are hard to find, hard to replace, and/or drive The first step in launching Talent Dialogue should be to a disproportionate amount of enterprise value. define a Talent Dialogue strategy that includes specific The reason: An organization can’t be all things to Talent Dialogue objectives and a plan for analyzing, all people – and if the choice needs to be made, responding to, and using the information it generates. As investments in employees who are more central part of the strategy, leaders should segment the Talent to value creation will improve performance more Dialogue audience (see sidebar), address where dialogue than comparable investments in other employee fits within business and functional units, and allocate populations. the resources necessary for operating and maintaining the dialogue. It’s also vital to monitor and track Talent This doesn’t mean that you should ignore Dialogue activities to refine and continuously improve the employee groups who don’t qualify as “critical.” approach. (Indeed, doing so can be one of the best ways to turn them “critical” in both senses: They’ll criticize Once the strategy is in place, a company can jumpstart you for leaving them out of the dialogue, and their the dialogue with what we call “Dialogue 1.0” – pursuing dissatisfaction with this may make them more likely Talent Dialogue through the tools, processes, and vehicles to leave.) Rather, Talent Dialogue seeks to engage it already has in place for interacting with its employees. with all employees – but the topics of discussion, Some of these tried-and-true communications forums and management’s resulting actions, should be include: weighted toward the concerns employees whose engagement is needed most. Segmenting the • Coaching employee base in this way can help a company • Exit interviews boost its return on investment even further above • Focus groups that of a relatively undifferentiated engagement • Interviews survey. • Information gathered at employee enrollment or election points roundtables • Councils • Surveys 6 Listen up! The Talent Dialogue approach to employee engagement
  • 9. At many companies, the technology to enable Dialogue “Open communication comes in many 2.0 may already exist or be under construction. In a recent survey, more than three-fourths of executives forms. But the form is not important say they plan to maintain or increase investments in social networking, blogs, wikis, and other technologies here. What is important is a philosophy that encourage peer collaboration.9 Companies whose of openly sharing and trusting others in-house IT infrastructures cannot support certain social media tools can turn to a growing number of vendors to with critical information. Everyone design, implement, and even host their Talent Dialogue platform. Certain consumer platforms can be a viable communicates – some more openly option for some companies as well, allowing them to test- than others. The greater the sharing, the drive Talent Dialogue before or while building an internal corporate platform. The feedback is out there however, greater the rewards for employees and and the challenge for companies is to figure out how to capture, analyze, and use it. corporation.”8 Setting the boundaries The next level of Talent Dialogue, “Dialogue 2.0,” One caution regarding the use of social media supplements Dialogue 1.0 by using social media technologies is that they can make it easy to share mechanisms, enabled by modern communications information in inappropriate as well as appropriate technologies, to help knit employees and employers into ways. For example, people may intentionally or an evolving, interactive community. (Table 1 on page 9 unintentionally post content that constitutes sexual gives a sampling of social media mechanisms that are harassment, violates confidentiality agreements, popular today, along with some considerations for their or otherwise exposes the company to legal action use in Dialogue 2.0). As a platform for Talent Dialogue, or puts leadership in an awkward position. It’s social media tools have several advantages over many of important for employers using these technologies the Dialogue 1.0 mechanisms: They’re more economical to strike a balance between managing the risks of to deploy on a large scale; they’re available 24/7, so too-untrammeled communication and maintaining employees can engage in dialogue at their convenience; the freedom for employees to honestly express their they’re collaborative, allowing employees to interact with ideas and opinions. each other as well as with management; and they’re flexible. Most of all, as evidenced by the popularity of sites such as Facebook, LinkedIn, and MySpace, many employees have already embraced social networking in their personal lives and would likely find it natural to engage in it at work as well, discussing and providing feedback that is more targeted at their employment experience. Listen up! The Talent Dialogue approach to employee engagement 7
  • 10. Whether your initial efforts rely primarily on Dialogue The power of social networking: Best Buy 1.0, Dialogue 2.0, or a mix, some general principles to Blue Shirt Nation, Best Buy’s employees-only social consider that could help strengthen the results: network, wasn’t meant to be a window into employee opinions and viewpoints. But that’s what it became • Use multiple approaches. People who hate filling as it grew from its origins as a forum for ad campaign out surveys may be avid bloggers and message development to a sprawling, multifaceted online board readers. Employees skeptical about community with 14,000 employees logging in each posting to an online forum may be amenable to month. Although employees use the board to discuss sitting on a live or tele-/videoconference focus everything from video games to photography, most of group. Consider which tools and methods are the conversation focuses on the experience of working most appropriate for particular audiences and for Best Buy – and company leaders are listening. objectives, and combine them in a way that allows you to reach the people you want to reach in a Take the time that Best Buy executives changed its way that works for them. employee discount policy. The changes sparked a torrent of commentary on Blue Shirt Nation, one of whose • Consider your employees’ adoption of and members wrote, “Don’t like the changes? Let your comfort with technology. A company where opinion be heard! ...We may not be able to stop the almost everyone spends their working hours at a change from happening, but we can definitely let our computer with e-mail and the Internet will find company know exactly how displeased we are about it.” Dialogue 2.0 easier to implement than one where Three days later, management posted a reply: “We heard most of the work is done “unplugged.” you. You made it very clear how valuable the employee discount is, and based on that feedback we have • Rely on continuous feedback from employees decided NOT to change it.” Thanks to Blue Shirt Nation, instead of intermittent spot checks. Build Talent executives got an inside view of just how important the Dialogue into how you do business so that it helps discount was to employee engagement and decided you anticipate and plan for workforce issues. that it was better for business to keep the program in its original form. • Respond to employees’ views in a timely manner, even if it means admitting you’re not sure about Blue Shirt Nation not only gives employees a platform something. This can represent a major change for for grass-roots action, but also helps business leaders leaders who believe that it’s better to keep things find both ideas and talent that they otherwise might quiet until decisions are set in stone. never have come across. For example, in summer 2007, an employee named Ashley was invited to a Best Buy • Ask “What if?” questions with scaled responses women’s leadership forum, where she spent four hours that allow you to crunch the data more reliably. discussing improvements to the business with “someone Avoid fuzzy questions that are open to a lot of named Kal.” Later, Ashley discovered that “Kal” was Kal interpretation. Patel, Best Buy’s EVP of strategy. Ashley recalls, “He saw my posts on BSN and said to his assistant, ‘I need to meet • Keep improving. Refine your questions to build on that girl!’” answers already received. Even though Best Buy doesn’t call it Talent Dialogue, both of these examples illustrate Talent Dialogue in action – an interactive feedback loop between employees and management, using Best Buy Nation as the enabler, that helps both parties understand what the other wants and expects and guides appropriate actions to strengthen employee engagement.10 8 Listen up! The Talent Dialogue approach to employee engagement
  • 11. Table 1. A sampling of social media tools Social Consumer and media enterprise Talent Dialogue Employee Limitations and type examples Description Value engagement value Other value shortcomings Wikis • Wikipedia • Collaborative Web sites • Wikis can be used for • Employees contributing • Wikis can be used to • Employees can become • Atlassian that allow users to easily open collaboration on to a corporate wiki for collaboratively develop disengaged if their • SocialText create and edit content, the detailed design of an this purpose not only business solutions in contributed content is • MediaWiki drawing on the combined employee engagement feel but know that their other areas in addition overwritten by another • MindTouch knowledge of its users strategy or solution input is being used to to talent and employee user or edited by an drive a solution that will engagement solutions administrator affect their employment experience Social • Facebook • Technology that allows • An appropriately • Social networking can • Social networks • As content is posted and net- • MySpace users to leverage personal designed, well- enhance employee can enable people not necessarily directly working • LinkedIn connections to link trafficked enterprise engagement by creating to discuss topics provided to leadership, • Awareness to and communicate social network allows a sense of community outside of employee a monitored social • Jive Software with friends, family, employees to share and enabling employees engagement and talent networking site can • Communispace colleagues, or others with their ideas and opinions to connect with and programs create employee angst • Microsoft similar interests in their personal page share ideas with about sharing or voicing SharePoint or through group/ colleagues • Social network opinions community involvement design can provide a knowledge-sharing • Requires appropriate • Leaders can not only and knowledge design for the desired see employee dialogue management solution functionality as enterprise but also interact or corporate social directly with employees • Social networks networks can vary greatly. themselves can help employees or managers find knowledgeable people in other parts of the business and get questions answered quickly Blogs • Blogger • Simple online journal • Blogs allow employees • Blogs give employees • Corporate blogs can • There is no not guarantee • Six Apart entries or update to directly provide the opportunity and be used as executive that the ideas in blogs are • Automattic messages that support unchallenged channel to voice their or leadership read or considered text, photos, or video perspectives to an opinions and ideas communication vehicles organization on employee engagement • Blogs can also be programs and solutions used to provide status updates on corporate initiatives Presence • Twitter • Very lightweight and • Similar to a blog, a • A corporate microblog • Like blogs, a microblog • Unlike a blog, a and • Automattic portable software which microblog allows can help engage can serve as a microblog only provides micro- • Yammer allows users to share employees to directly employees who find communication vehicle space for a small snippet blogging • SocialCast their immediate thoughts provide unchallenged value in providing status for leadership and/or of information, limiting by publishing brief text perspectives or updates updates and monitoring program updates a company’s ability updates, typically via the to an organization that or following other to provide detailed Web, text messaging, IM, can be actively followed employees as a sense of • The very short information and to gather or email and/or monitored by connectedness microblog format and analyze substantive leadership and the portability employee feedback of the technology, which allows people to broadcast thoughts quickly and easily, lowers the barrier to entry that a longer blog format might present Listen up! The Talent Dialogue approach to employee engagement 9
  • 12. Putting it all together Companies today can’t afford to ignore the voices of their employees. The global talent crunch is creating a “The challenges of speed, quality, and seller’s market for talent with scarce skills, while modern communications technologies give the masses greater global reach, which require trust, also visibility and influence than ever before. In a highly have precipitated distrust, through networked world, employee feedback is a given; the only choice for employers is whether to fear it as a threat or corporate restructuring, downsizing, leverage it as an opportunity. and fundamental violations of the Talent Dialogue is one way that companies can turn psychological contracts connecting the accelerating phenomenon of real-time, interactive communication to their own business advantage. It offers individuals with organizations... employers the chance to build trust with their critical audiences now, rather than as a reaction to the pressure Bringing these conditions together, we of the masses later on. It can be a game-changing see that the challenges of the modern strategy for businesses looking to differentiate themselves in an increasingly difficult talent market. Engaging in global marketplace center on the constructive dialogue with your employees can open up new ideas and create an exciting forum for collaboration, simultaneous management of trust not just about what they think about the workplace and and distrust in a hostile environment their jobs, but what they are seeing on the ground as they interact with your customers. It can give every employee in which individuals may be just as the feeling that they have a voice in how the business is run. And that is the true value of dialogue: Being heard, inclined to distrust as they are to making a contribution, and feeling engaged. trust.”11 A well-managed dialogue between critical talent and business leaders is an essential way of getting the insights you need for strategic workforce planning. After all, your employees are the ones doing the work. They’re the ones trying to balance their lives and careers, and they’re the ones you depend on to deliver enterprise value. Listen to them. Get the facts. Understand them. And act. 10 Listen up! The Talent Dialogue approach to employee engagement
  • 13. Talent Dialogue for enterprise transformation As a tool for understanding employees’ views and driving greater engagement, Talent Dialogue can be of value in more areas than informing and driving an organization’s overall talent management strategy. Proactive organizations can apply the concepts and approach of Talent Dialogue within a larger transformation initiative as well (e.g., a merger, restructuring or large technology project). Engaging in Talent Dialogue focused on such changes can help companies not only foster employee buy-in, but also improve the initiative’s ROI by seeking input from employees and developing an approach that better meets their needs and wants. Deloitte’s research and experience suggest that people and organizational issues are among the most significant challenges in any transformational change. Establishing an open dialogue with employees throughout the process can help companies better manage the impact on its people and make a smooth transition to the new state of higher productivity. As employees participate in dialogue about the change, they can contribute useful insights to the design of the change program itself; they become more informed about, committed to, and prepared for the change; and they gain a further level of commitment to the organization as a whole. In this way, we believe Talent Dialogue can add value to any organizational transformation or initiative. Listen up! The Talent Dialogue approach to employee engagement 11
  • 14. Endnotes 1 7 Gary Rhoades, The Spillover Effect: Recognizing and Bill Chafetz, Robin Adair Erickson, and Josh Ensell, managing this single business principle can provide “Where did our employees go? Examining the rise in organizations with millions in extra profits, Allegiance, voluntary turnover during economic recoveries,” Deloitte 2008. Review, Deloitte Development LLC, 2009 (in press). 2 8 Curt Coffman, “The High Cost of Disengaged Keith Denton, “Open communication - importance Employees”, GALLUP Management Journal, May 1, of effective communication systems in corporations; 2009 <http://gmj.gallup.com/content/247/High-Cost- General Electric Co. and Cypress Semiconductor Corp. Disengaged-Employees.aspx> case studies”, Business Horizons, May 1, 2009 http:// findarticles.com/p/articles/mi_m1038/is_n5_v36/ 3 Richard Luecke, Managing Change and Transition, ai_14723295/?tag=content;col (accessed May 1, 2009). Harvard Business School Press, 2003 p 27. 9 Jacques Bughin and James Manyika, “How businesses 4 Watson Wyatt ,“Effective Employee Communication are using Web 2.0,” McKinsey Quarterly, McKinsey & Linked to Stronger Financial Performance ,” www. Company, 2007. HR.com, November 8, 2005 <http://www.hr.com/ 10 SITEFORUM?&t=/Default/gateway&i=11164232562 Charlene Li, and Josh Bernoff. Groundswell: Winning In 81&application=story&active=no&ParentID=11192 A World Transformed By Social Technologies. Harvard 78002800&StoryID=1132067909608&xref=http%3 Business Press. © 2008. Books24x7. <http://common. A//www.google.com/search%3Fq%3DEffective+Em books24x7.com/book/id_27116/book.asp> (accessed ployee+Communication+Linked+to+Stronger+Finan May 8, 2009). cial+Performance+%26ie%3Dutf-8%26oe%3Dutf- 11 8%26aq%3Dt%26rls%3Dorg.mozilla%3Aen-US%3Aoffi Roy J. Lewicki, Daniel J. McAllister, and Robert J. Bies, cial%26client%3Dfirefox-a> “Trust and distrust: new relationships and realities,” Academy of Management Review, 1998, Vol. 23.3, 5 Bill Chafetz, Robin Adair Erickson, and Josh Ensell, 438-458, cited in Robin Adair Erickson, “Here today but “Where did our employees go? Examining the rise in what about tomorrow? Retaining downsizing survivors,” voluntary turnover during economic recoveries,” Deloitte Deloitte Consulting LLP, January 2009. Review, Deloitte Development LLC, 2009 (in press). 6 Joel Brockner, Phyllis A. Siegel, Joseph P. Daly, Tom Tyler, and Christopher Martin, “When nrust matters: The moderating effect of outcome favorability,” Administrative Science Quarterly, 1997, Vol. 42.3, 558-583, cited in Robin Adair Erickson and Michael E. Roloff, Northwestern University, Evanston, Illinois, USA, “Reducing attrition after downsizing: Analyzing the effects of organizational support, supervisor support, and gender on organizational commitment,” International Journal of Organizational Analysis, 2007, Vol. 15.1, 35-55. 12 Listen up! The Talent Dialogue approach to employee engagement
  • 15. Contacts Jeff Schwartz Global Practice Leader Organization and Change Deloitte Consulting LLP United States +1 703 251 1501 jeffschwartz@deloitte.com Andy Liakopoulos Practice Leader, Talent Strategies Organization and Talent Deloitte Consulting LLP United States +1 312 486 2777 aliakopoulos@deloitte.com Leah A. Reynolds Human Capital Deloitte Consulting LLP United States +1 313 396 3107 leahreynolds@deloitte.com Graham Dodd Human Capital Deloitte Consulting LLP Canada +1 604 601 3461 gdodd@deloitte.ca Kevin Zobel Human Capital Deloitte Consulting LLP United States +1 212 313 1551 kzobel@deloitte.com Listen up! The Talent Dialogue approach to employee engagement 13
  • 16. This publication contains general information only and is based on the experiences and research of Deloitte practitioners. Deloitte is not, by means of this publication, rendering business, financial, investment, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte, its affiliates, and related entities shall not be responsible for any loss sustained by any person who relies on this publication. About Deloitte Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in 140 countries, Deloitte brings world-class capabilities and deep local expertise to help clients succeed wherever they operate. Deloitte’s 150,000 professionals are committed to becoming the standard of excellence. Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its member firms. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Member of Deloitte Touche Tohmatsu Copyright © 2009 Deloitte Development LLC. All rights reserved.