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CANADIAN HR REPORTER OCTOBER 2018 NEWS 13 Understanding engagement scores through the Total Health Index An improved score doesn't necessarily mean other metrics are improving BY BILL HOWATT WHAT does an engagement score tell senior leadership? e obvious response is that there's a percentage of employees who are disengaged (red), neu- tral (yellow) or highly engaged (green), and "the more people in the green bucket, the greater the organization's ability to attract and retain talent and maximize employees' productivity." is is a partially correct re- sponse — but incomplete, and perhaps a bit misleading. Some engagement tools be- come institutional pillars because they're relied upon for evaluating and holding leadership account- able — and, done right, this can be a positive approach. At many organizations, man- agement compensation is im- pacted by that group's engage- ment scores. For example, if one year, 73 per cent of employees are green and the next year, 79 per cent are green, this is often deemed an improvement. When there's a four per cent gain, as in the above example, it's often deemed a significant, positive change. Such an improvement sometimes can be enough for managers to get paid more and for senior leaders to feel good and look good to their board. However, an improved en- gagement score doesn't neces- sarily mean other metrics are improving, such as attendance or revenue by full-time employee (FTE). is would require addi- tional analysis to validate what, if any, metrics improved, and the correlation between engage- ment scores and other key per- formance metrics. THI research Morneau Shepell's Total Health Index (THI) research has made us critical of traditional engagement scores that typically only report or focus on the percentage of the workforce in the green bucket year over year. THI sustainability engagement research looks at the percentage of employees in the green bucket and then what percentage of those have THI scores that are favourable (green), neutral (yel- low) or red (at risk). e research found that 62 per cent of client's employees in the green bucket also reported high levels of health and productivity. is suggests that 38 per cent of employees who reported high levels of engagement are at risk, based on their THI scores. En- gagement sustainability fi ndings suggest that for an organization to sustain its workforce, it re- quires not only favourable en- gagement scores but also positive health and productivity scores. THI research also found that highly engaged and healthy (green-green) employees' aver- age burnout risk score was 69 per cent, compared to highly engaged and at-risk (green-red) employees at 51 per cent. This suggests the green-red population is reporting they're highly engaged but have in- creased risk. ere is a similar trend in anxiety, coping and de- pression risk scales, suggesting a link between engagement levels and employees' mental health and resiliency. e THI engagement sustain- ability index indicates there's a benefi t for employers to track not only the percentage of employees who are green on the traditional engagement index score, but also the percentage who are green year over year. is would rep- resent the engagement sustain- ability index. An organization's employee risk profi le can be decreased by focusing on programs that can enhance employees' health and increase the sustainability index, for example, from 62 per cent to 66 per cent, year over year, rather than focusing just on engage- ment scores. Traditional engagement scores may not provide enough insight into why employees who are green may be at risk for moving into the yellow bucket or going on short- or long-term disability, or even quitting. Engagement scores can be helpful for predicting a work- force's health and productivity. Using the THI engagement index database, the table above demon- strates how the index can help to predict factors that infl uence em- ployees' health and productivity. Considerations for HR leaders: • Integrate data collection by col- lecting engagement, health and productivity data at the same time so data is available to con- duct a sustainability engagement index type of analysis. Morneau Shepell's Employee Recom- mended Workplace Award pro- vides employers an opportunity to have access to an economical and user-friendly instrument that measures physical and mental health, engagement and life (fi nancial, relationship and work-life blending). • Correlate engagement results year over year with other key performance metrics such as safety, psychological safety and attendance to obtain applied research evidence on how in- creased and decreased levels of engagement impact an organi- zation's performance results. is can help provide the busi- ness case to invest in leadership development, coaching and re- siliency training. Bill Howatt, Ph.D., Ed.D., is the Toronto-based chief of research and development, workforce productiv- ity, at Morneau Shepell. For more information and education about the company's Total Health Index (THI), please visit the company's website at www.morneaushepell.com. 12-PART SERIES This is the ninth of a 12- part series on total health that will explore the links between employees' health, engagement and productivity: 1. The total health framework 2. The 4 pillars of the Total Health Index 3. Senior leadership 4. Resiliency 5. Alcohol consumption 6. A respectful workplace 7. Manager effectiveness 8. Financial health 9. Going beyond traditional engagement 10. Productivity 11. Mental health 12. Physical activity, nutrition, sleep JOINT VENTURE BY: By registering, you'll get a unique perspective on the health of your workplace. The Employee Recommended Workplace Award looks at all four components of total health – physical, mental, work and life – and their impact on engagement and productivity. When you register, you'll receive: • The Employee Recommended Workplace Survey for your employees • An aggregated report that identifies your organization's strengths and areas for improvement • Actionable insights into improving the total health of your employees • A chance to be named an Employee Recommended Workplace! You've worked hard to build a healthy workplace. Get recognized for it! Register your company today! Visit employeerecommended.com for details. Registration ends November 22, 2018. M O R N E A U S H E P E L L T H E G L O B E A N D M A I L 20 19 Employee Recommended Workplace The Employee Recommended Workplace Award, developed by Morneau Shepell and the Globe and Mail, recognizes excellence in achieving a healthy, engaged and productive workforce. It is the only award of its kind that is based entirely on feedback from employees. Why register for the Employee Recommended Workplace Award? Predicting employee health and productivity 82% 83% 73% 75% 85% 90% 29% 80% 77% 72% 76% 67% 60% 82% 86% 50% 61% 62% 61% 71% 62% 45% 76% 82% 68% 37% 46% THI engagement index Favourable Neutral Unfavourable General mental health Attendance Discretionary effort (DE) Percentage reported coming to work feeling unwell at least one day PHS factor 12 – psychological protection Sleep Trust Perceived stress Relationship inside and outside of work Note: 12 psychological health and safety (PHS) factors comes from the 13 psychological health and safety factors scales that measure and predict employee risk pro le for mental injuries and mental health risk.

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