Automatic Data Processing, Inc. · NASDAQ:ADP

Automatic Data Processing — Conference Presentation (October 2012)

22 slides from Automatic Data Processing's conference presentation, Oct 17, 2012

1. Slide 1: Employee Engagement vs Employee Satisfaction

   Employee Engagement vs Employee Satisfaction © Copyright 2011 ADP, Inc. Proprietary and Confidential Information.

2. Slide 2: Introductions

   Introductions Jan Brockway Robert Mattson Sr. Director, Product Management Director, Product Marketing ADP Inc. ADP Inc. 2 © Copyright 2011 ADP, Inc. Proprietary and Confidential Information.

3. Slide 3: Buzz Words D'Jour

   Buzz Words D’Jour 3 © Copyright 2011 ADP, Inc. Proprietary and Confidential Information.

4. Slide 4: Satisfaction or Engagement

   Satisfaction or Engagement  Do you want satisfied employees or engaged employees?  Are those terms mutually exclusive?  Can you have one without the other?  Which has an impact on the bottom line of the organization? 4 © Copyright 2011 ADP, Inc. Proprietary and Confidential Information.

5. Slide 5: Engagement or Satisfaction

   Engagement or Satisfaction  Employee Satisfaction  A measurement of an employee’s “happiness” with current job and conditions; however does not measure how much effort willing to expend  Employee Engagement • A measurement of an employee’s emotional commitment to an organization; amount of discre

6. Slide 6: Is Employee Engagement Important?

   Is Employee Engagement Important?  Seventy percent of business leaders say Yes  However, only 20% believe their current initiatives are driving business outcomes  Big Payoff: Organizations that build employee engagement show 23% GREATER revenue expectations than organizations that have low engage

7. Slide 7: Engagement VS Satisfaction

   Engagement VS Satisfaction  Some organizations don’t believe you need to focus on engagement because turn over is low and employees seem content  Are you willing to leave an extra 23% on the table? 7 © Copyright 2011 ADP, Inc. Proprietary and Confidential Information.

8. Slide 8: Poll #1

   Poll #1  What kind of employee surveys are performed at your organization? Employee Satisfaction Employee Engagement Both Satisfaction and Engagement We don’t perform employee surveys 8 © Copyright 2011 ADP, Inc. Proprietary and Confidential Information.

9. Slide 9: Top Contributors to Employee Job Satisfaction

   Top 10 Contributors to Employee Job Satisfaction 1. Job security: 63%, for the fourth consecutive year, as the top most important determinant of job satisfaction. (67% of employees are very satisfied or satisfied with their job security.) 2. Opportunities to Use Skills and Abilities: 62%. (74% are s

10. Slide 10: Top Employee Engagement Conditions

    Top 10 Employee Engagement Conditions 1. The work itself: 76% 2. Relationships with co-workers: 76% 3. Opportunities to use skills and abilities: 74% 4. Relationship with immediate supervisor: 73% 5. Contribution of work to organization’s business goals: 71% 6. Autonomy and independence: 69% 7. Mean

11. Slide 11: Engagement and Satisfaction Drivers

    Engagement and Satisfaction Drivers Combined rankings ordered by lowest total rankings in both studies (NR = Not Ranked in Top 10) Engagement Satisfaction Ranking Factor Ranking 3 Opportunities to use skills and abilities 2 4 Relationship with immediate supervisor 4 1 The work itself 8 NR Job securi

12. Slide 12: Engagement and Satisfaction Drivers

    Engagement and Satisfaction Drivers Comparison E/S Factor (+/-) Relationship with immediate supervisor 0 Opportunities to use skills and abilities 1 Autonomy and independence 3 Organization’s financial stability 6 The work itself 7 Benefits 5+* Compensation 6+* Contribution of work to organization’s

13. Slide 13: An Engagement Measurement Model

    An Engagement Measurement Model  Engagement Pyramid  1st (top) level – How can we grow?  2nd level – Do I belong?  3rd level – What do I give?  4th level – What do I get? SOURCE: http://www.hopkinsmedicine.org/ 13 © Copyright 2011 ADP, Inc. Proprietary and Confidential Information.

14. Slide 14: Maslow's Hierarchy of Needs vs. Engagement Model

    Maslow’s Hierarchy of Needs vs. Engagement Model SOURCE: http://www.hopkinsmedicine.org/ 14 © Copyright 2011 ADP, Inc. Proprietary and Confidential Information.

15. Slide 15: Maslow's vs. Satisfaction and Engagement

    Maslow’s vs. Satisfaction and Engagement Engagement + Satisfaction = Result Engagement Satisfaction 15 © Copyright 2011 ADP, Inc. Proprietary and Confidential Information.

16. Slide 16: Poll #2

    Poll #2  How effective is your organization in reacting to the results of employee surveys? I see definite changes Employee Engagement Both Satisfaction and Engagement We don’t perform employee surveys 16 © Copyright 2011 ADP, Inc. Proprietary and Confidential Information.

17. Slide 17: Address Both Engagement & Satisfaction

    Address Both Engagement & Satisfaction  Career Development and opportunity are key drivers in both satisfaction and engagement  Opportunity to develop new skills and knowledge  While promotions are great, providing opportunities to expand expertise, learn about new areas of the company, etc can b

18. Slide 18: Implications of Talent Management Technology

    Implications of Talent Management Technology  Talent Management technology provides a framework to capture and measure the behaviors and activities that can drive employee engagement  Are managers providing feedback?  Do employees have goals?  Can an extrapolation be made between managers who ex

19. Slide 19: Survey or Pulse?

    Survey or Pulse?  Most organizations measure engagement and/or satisfaction through annual surveys; then develop an action plan to address  Similar to Performance Management 365, could technology facilitate more frequent measurements, even predictive reporting that would yield stronger results? 19

20. Slide 20: Summary

    Summary  Engagement and Satisfaction are both important but satisfaction without engagement will have less impact on the business results  There is an opportunity to start thinking about engagement and satisfaction as living, breathing processes with measurements throughout the year 20 © Copyright

21. Slide 21: Questions?

    Questions? © Copyright 2011 ADP, Inc. Proprietary and Confidential Information.

22. Slide 22: Thank You

    Thank You © Copyright 2011 ADP, Inc. Proprietary and Confidential Information.

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