TEMKIN’ ROUP INSIGHT’REPORT EMPLOYEE’ENGAGEMENT’

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KSTUDY,2017ANNUALSTUDYEXAMINES5,000 NGROUPINFO@TEMKINGROUP.COM617/916- ‐2075TEMKINGROUP.COM

levelsofmorethan5,000U.S.employees.Wefoundthat:! Sixty- nthesixyearswe’veconductedthisstudy.! kers.! elikelytorecommendanimprovementatthecompany.! rmoreemployeeshavethelowest.! ncome,andwhoareexecutives.! criticalcomponentofacustomer- gure1):! Iunderstandtheoverallmissionofmycompany! Mycompanyasksformyfeedbackandactsuponmyinput! katfor- onsumerswhowerefull- ‐timeemployeesduringQ32016.Copyright 2017TemkinGroup.Allrightsreserved.Page2

TEMKINGROUPINSIGHTREPORTwww.temkingroup.com! re1).Sixty- ’veseeninthesixyearsofconductingthisstudy.! Eighty- d,asopposedtoonly68%atunder- ‐performingcompanies(seeFigure2).! theircompany.! Engagedemployeestryharder.Sixty- edtoonly30%ofdisengagedemployees(seeFigure3).! Seventy- mmittedtotheirjobs.! reasedthemost(11percentage- most(twopercentage- ‐points)(SeeFigure6).! likelytobe:! igure8).Copyright 2017TemkinGroup.Allrightsreserved.Page3

TEMKINGROUPINSIGHTREPORTwww.temkingroup.com! Executives.Eighty- rs(seeFigure9).! 25- to44- year- ��vefoundthattheleastengagedgroupis45- ‐to54- ‐year- ‐olds.! High- eases(seeFigure11).Atthehigh- ‐end,72%ofemployeesearningmorethan 3%ofemployeeswhoearnlessthan lofengagementincreasedthemostwithhigh- ‐incomeemployees.! Highlyeducated.Seventy- ‐threepercentofemployeeswithapost- evelsincreasedthemostinworkerswithapost- ‐graduateeducation,goingup12percentage- e“FiveI’sofEmployeeEngagement:”5! zation.! rorganization.! ation’sbrandpromisestocustomers.! entifiedthroughcustomeroremployeefeedback.! ht 2017TemkinGroup.Allrightsreserved.Page4

TEMKINGROUPINSIGHTREPORTwww.temkingroup.comTemkin Employee Engagement Index 7)CompletelyagreeI understand the overall mission of my companyMy company asks for my feedback and acts upon my inputMy company provides me with the training and the tools that I needto be successfulTotalTotal score defines level of employee engagement:19 to 21Highly engaged16 to 18Moderately engaged13 to 15Slightly engaged12 or lessDisengagedTEEI Results, 2011 to 201633%26%28%28%30%29%Highly engagedModerately engaged18%20%23%21%22%21%Slightly 24%22%17%DisengagedBase:30%31%29%27%27%Full-time U.S. employees: 5,626 in 2016, 5,552 in 2015,5,617 in 2014, 5,317 in 2013, 2,456 in 2012, 2,435 in 2011Temkin Group Q3 2016, Q3 2015, Q3 2014, Q3 2013, Q32012, and Q4 2011 Consumer Benchmark StudiesCopyright 2017 Temkin Group. All rights reserved.Figure1Copyright 2017TemkinGroup.Allrightsreserved.Page5

TEMKINGROUPINSIGHTREPORTwww.temkingroup.comEngaged Employees Are Valuable AssetsEmployee engagement based on financial performanceFinancial performance isworse than competitorsFinancial performance is significantlybetter than 18%Less engagedemployees82%Employees That Are “Likely” or “Very Likely” to Do These ThingsRecommend your company’sproducts and services tosomeone who might need them88%18%Stay late at work if somethingneeds to be done after yournormal workday ends85%28%Do something that is good foryour company even if it is notexpected of you84%18%Make a recommendation about animprovement that can be made inyour company67%Disengagedemployees13%Recommend that a friend orrelative apply for a job within 5,626 full-time U.S. employeesTemkin Group Q3 2016 Consumer Benchmark StudiesCopyright 2017 Temkin Group. All rights reserved.Figure2Copyright 2017TemkinGroup.Allrightsreserved.Page6

TEMKINGROUPINSIGHTREPORTwww.temkingroup.comEngaged Employees Try HarderWhen you are at work, how often do you try your hardest to do agood job for the company?43%25%25%Highly engaged employees22%24%27%34%Moderately engagedemployees31%Always31%Almost always29%Usually16%Sometimes25%Slightly engaged employees23%Never or almostnever24%13%14%16%Disengaged employees22%24%34%Base:Source:5,626 full-time U.S. employeesTemkin Group Q3 2016 Consumer Benchmark StudiesCopyright 2017 Temkin Group. All rights reserved.Figure3Copyright 2017TemkinGroup.Allrightsreserved.Page7

r Experience Leaders Have More Engaged EmployeesEmployee engagement based on customer experience (CX) performanceCX about the same or worsethan competitors51%49%CX significantly betterthan sengagedemployees79%Employees Likely To Do These Things Based on Company s CX LevelRecommend your company’sproducts and services to someonewho might need them74%46%Stay late at work if something needsto be done after your normalworkday ends71%52%Do something that is good for yourcompany even if it is not expectedof you66%45%54%Recommend that a friend or relativeapply for a job within your company39%Make a recommendation about animprovement that can be made inyour company40%Base:Source:CX issignificantlybetter thancompetitorsCX is about thesame or worsethancompetitors46%5,626 full-time U.S. employeesTemkin Group Q3 2016 Consumer Benchmark StudiesCopyright 2017 Temkin Group. All rights reserved.Figure4Copyright 2017TemkinGroup.Allrightsreserved.Page8

TEMKINGROUPINSIGHTREPORTwww.temkingroup.comTemkin Employee Engagement Index By IndustryHighly engagedModerately engagedSlightly engaged49%ConstructionDisengaged32%Management of Companies, Support,Waste Management & Remediation41%30%Professional, Scientific and TechnicalServices39%30%Wholesale Trade37%29%Manufacturing34%33%12% inance and Insurance31%34%21%14%Accommodations and Food Services30%28%Arts, Entertainment and Recreation30%29%Health Care and Social Assistance30%28%Other Services (Except PublicAdministration)29%Educational Services28%Base:Source:Retail Trade24%Transportation and Warehousing23%Public 26%25%25%22%18%24%19%26%18%21%5,626 full-time U.S. employeesTemkin Group Q3 2016 Consumer Benchmark StudiesCopyright 2017 Temkin Group. All rights reserved.Figure5Copyright 2017TemkinGroup.Allrightsreserved.Page9

TEMKINGROUPINSIGHTREPORTwww.temkingroup.comTemkin Employee Engagement Index By Industry(2014 to 2016)“Highly” and “moderately” engaged employees82%71%70%71%ConstructionManagement of Companies, Support,Waste Management & RemediationProfessional, Scientific and TechnicalServicesManufacturingInformationFinance and InsuranceWholesale TradeArts, Entertainment and RecreationAccommodations and Food ServicesEducational ServicesHealth Care and Social AssistanceTransportation and WarehousingOther Services (Except PublicAdministration)Public AdministrationRetail me U.S. employees: 5,626 in 2016, 5,552 in 2015,and 5,617 in 2014Temkin Group Q3 2016, Q3 2015, and Q3 2014Consumer Benchmark StudiesCopyright 2017 Temkin Group. All rights reserved.Figure6Copyright 2017TemkinGroup.Allrightsreserved.Page10

TEMKINGROUPINSIGHTREPORTwww.temkingroup.comTemkin Employee Engagement Index (TEEI) By Size of CompanyTEEI by size of companyHighly engagedModerately engagedMore than 10,000 employeesSlightly engaged22%31%27%5,001 to 10,000 employees26%30%1,001 to 5,000 employees37%501 to 1,000 employees33%101 to 500 7%13%16%51 to 100 employees34%33%19%14%10 to 50 employees35%31%19%15%Less than 10 employees36%24%20%21%“Moderately” or “Highly” Engaged Employees By Size of Company, 2014 to 201653%50%53%More than 5,000 employees59%53%59%1,001 to 5,000 employees69%61%62%501 to 1,000 employees101 to 500 employees65%59%58%51 to 100 employees67%59%60%10 to 50 employees66%59%56%Source:2015201460%57%60%Less than 10 employeesBase:2016Full-time U.S. employees: 5,626 in 2016, 5,552 in 2015,and 5,617 in 2014Temkin Group Q3 2016, Q3 2015, and Q3 2014Consumer Benchmark StudiesCopyright 2017 Temkin Group. All rights reserved.Figure7Copyright 2017TemkinGroup.Allrightsreserved.Page11

TEMKINGROUPINSIGHTREPORTwww.temkingroup.comTemkin Employee Engagement Index (TEEI) By Amount ofCustomer Contact and Role Within OrganizationTEEI by how often employees interact directly with customersHighly engagedModerately ghtly “Highly” and “moderately” engaged employees based on how oftenthey interact with customers, 2014 to Sometimes43%42%44%NeverBase:Source:2014Full-time U.S. employees: 5,626 in 2016, 5,552 in 2015,and 5,617 in 2014Temkin Group Q3 2016, Q3 2015, and Q3 2014Consumer Benchmark StudiesCopyright 2017 Temkin Group. All rights reserved.Figure8Copyright 2017TemkinGroup.Allrightsreserved.Page12

TEMKINGROUPINSIGHTREPORTwww.temkingroup.comTemkin Employee Engagement Index (TEEI) ByOrganizational RoleTEEI by organizational role of employeeHighly engagedModerately engagedSlightly engagedSenior executive of the company60%Manager of multipledepartments or organizations35%35%22%10% 4%34%38%Team leader/managerIndividual contributor25%49%Manager of a department ororganizationDisengaged34%27%11% 6%15%20%25%12%12%26%“Highly” and “moderately” engaged employees based onorganizational role, 2014 to 2016Senior executive of the company86%82%74%Manager of multiple departmentsor organizations83%78%76%74%67%68%Manager of a department ororganization201449%45%48%Individual contributorSource:201569%63%64%Team leader/managerBase:2016Full-time U.S. employees: 5,626 in 2016, 5,552 in 2015,and 5,617 in 2014Temkin Group Q3 2016, Q3 2015, and Q3 2014Consumer Benchmark StudiesCopyright 2017 Temkin Group. All rights reserved.Figure9Copyright 2017TemkinGroup.Allrightsreserved.Page13

TEMKINGROUPINSIGHTREPORTwww.temkingroup.comTemkin Employee Engagement Index (TEEI) By AgeTEEI by ageHighly engagedModerately engaged31%65 and older55 to 6429%45 to 5428%35 to %25 to 3418 to 24Slightly engaged33%34%17%14%19%13%20%20%“Highly” and “moderately” engaged employees based on age, 2014 to201657%56%56%65 and older201460%59%35 to 4462%61%25 to 3470%68%60%53%55%18 to 24Source:201553%51%53%45 to 54Base:201655%53%56%55 to 64Full-time U.S. employees: 5,626 in 2016, 5,552 in 2015,and 5,617 in 2014Temkin Group Q3 2016, Q3 2015, and Q3 2014Consumer Benchmark StudiesCopyright 2017 Temkin Group. All rights reserved.Figure10Copyright 2017TemkinGroup.Allrightsreserved.Page14

TEMKINGROUPINSIGHTREPORTwww.temkingroup.comTemkin Employee Engagement Index (TEEI) By Income LevelTEEI by income levelHighly engagedModerately engaged 100,000 to 149,999Slightly engaged40% 75,000 to 99,99933%38% 50,000 to 74,999Disengaged17%34%33%10%17%30%20%12%17% 30,000 to 49,99925%29%23%23% 25,000 to 29,99926%26%26%23%Less than 25,00022%21%27%30%“Highly” and “moderately” engaged employees based on income, 2014 to 201672%More than 100,00062%63% 75,000 to less than 100,00062%58%72%63%60%57% 50,000 to less than 75,000201443%40%50%Less than 25,000Source:201553%51%55% 25,000 to less than 50,000Base:2016Full-time U.S. employees: 5,626 in 2016, 5,552 in 2015,and 5,617 in 2014Temkin Group Q3 2016, Q3 2015, and Q3 2014Consumer Benchmark StudiesCopyright 2017 Temkin Group. All rights reserved.Figure11Copyright 2017TemkinGroup.Allrightsreserved.Page15

TEMKINGROUPINSIGHTREPORTwww.temkingroup.comTemkin Employee Engagement Index (TEEI) By Education LevelTEEI by educational levelHighly engagedModerately engagedPost-graduatedegreeSome degreeSomeundergraduatecollege/universityHigh schooldegreeSlightly ngaged21%21%13%17%22%22%25%“Highly” and “moderately” engaged employees based oneducational level, 2014 to 201673%Post-graduate degree61%58%64%Undergraduate degree58%59%20162015201456%High school degree53%56%Base:Source:Full-time U.S. employees: 5,626 in 2016, 5,552 in 2015,and 5,617 in 2014Temkin Group Q3 2016, Q3 2015, and Q3 2014Consumer Benchmark StudiesCopyright 2017 Temkin Group. All rights reserved.Figure12Copyright 2017TemkinGroup.Allrightsreserved.Page16

TEMKINGROUPINSIGHTREPORTwww.temkingroup.comResults From Employee Engagement Competency AssessmentMaturity Levels of Employee Engagement EffortsLevel 5: Maximizing1%Level 4: Enhancing11%Level 3: Maintaining26%Level 2: Neglecting34%27%Level 1: DamagingCompetency Levels Across Five I s of Employee EngagementStrongInspire13%Instruct14%Involve y Weak39%18%39%22%7%Weak21%38%36%35%29%42%66%155 companies with 1,000 or more employeesTemkin Group Q2 2016 CX Management SurveyCopyright 2017 Temkin Group. All rights reserved.Figure13Copyright 2017TemkinGroup.Allrightsreserved.Page17

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TEMKIN’GROUPINSIGHT’REPORT’ EMPLOYEE’ENGAGEMENT’ BENCHMARK’STUDY,’2017’ ANNUAL!STUDYEXAMINE

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