eGlobalServe Annual Report Year end 2018 CNP Global A Human Resource Management Company 700 College Dr. Decorah, IA 52101 1 Table of Contents INTRODUCTION …………………………………………… 2 OUTCOMES OVERVIEW…………………………………… 3 GOALS ……………………………………………………… 4 2018 BUDGET ……………………………………………… 5 OUTCOMES: ABSENTEEISM ……………………………… 7 DIVERSITY ………………………………… . 10 INNOVATIVENESS………………………… 13 PRODUCTIVITY…………………………… 16 TURNOVER ……………………………… 20 WELL-BEING ……………………………… 24 PROFITABILITY ……………………………………...… 28 CONCLUSION ……………………………………………… 31 CNP Global [email protected] 563-387-1287 2 Introduction to eGlobalServe Founded eight years ago by Bob Maxwell and Jen Walker, eGlobalServe (eGS) has provided high quality trend analyses to companies in a variety of industries. With a mission of helping companies improve decision making about customers, employees, and new services and products, eGlobalServe has grown to include 237 full-time employees at the start of 2017. While eGlobalServe boasts $39.3 million in sales at the end of 2016, the company is only meeting the break-even point. CNP Global CNP Global is a human resource consulting company based out of Decorah, Iowa. Founded by Colin Lane, Nathan Schulte, and Peder Smith, CNP Global delivers results-focused outcomes. It is our mission to provide world class human resource management services to help companies become successful. To achieve our mission, CNP Global focuses on making key decisions in areas of importance selected by eGS. These areas include: performance appraisals, work-life balance, training, talent management, compensation and selection. eGlobalServe hired CNP Global at the end of 2016 to work as human resource analysts for CHRO Marcia Jackson. Our services are intended to enhance the distinctive advantage of eGlobalServe’s human capital. The decisions made are intended to affect outcomes we have identified as critical to eGlobalServe’s success. CNP Global [email protected] 563-387-1287 3 Outcomes Overview The outcomes essential for eGlobalServe’s success are measured through Key Performance Indicators (KPI’s). Monitoring the KPI’s allows for effective and timely decision-making processes. The KPI’s are: Absenteeism is the total number of days missed by employees throughout the quarter. Unavoidable absenteeism is related to factors outside of the employee’s control e.g. illness, family emergency. Avoidable absenteeism results from a decision on the employee’s behalf to stay away from work. Diversity refers to the differences in employees’ demographic characteristics, skills and abilities, culture, values and knowledge. Promoting diversity is the representation of a variety of perspectives and backgrounds to produce a more inclusive and creative atmosphere. Creating a diverse workplace atmosphere contributes to a company’s triple-bottom-line. Innovativeness is the quantity of new, usable ideas per employee over a designated amount of time. Ranging from radical changes to process improvements, practical innovations impact the long-term profitability of the company. Productivity measures the quantity and quality of work performed. At eGlobalServe, understanding what actually goes into a deliverable, rather than total output, is valuable due to the knowledge-based work the company performs. This index is used to represent both quantity and quality. Turnover r epresents the percentage of employees leaving the organization. This KPI is comprised of two categories, involuntary and voluntary. I nvoluntary turnover occurs when employees are laid off or terminated. Voluntary turnover occurs when employees quit or retire. Reducing turnover contributes to the overall success of human capital and investments. Well-being encompasses employees’ internal states regarding their capacity to make contributions. A variety of factors including emotional and physical health impact this index. CNP Global [email protected] 563-387-1287 4 Goals KPI's 2016 2017 2017 2018 2018 2019 2019 Actual Critical Stretch Critical Stretch Critical Stretch (Baseline) Goal Goal Goal Goal Goal Goal Absenteeism 360 280 240 200 120 101 30 Diversity 0.240 0.345 0.395 0.450 0.950 0.560 0.700 Innovativeness .50 0.75 1.00 1.00 1.50 1.30 2.00 Productivity 40.0 51.5 58.0 63.0 76.0 74.0 93.0 Turnover .180 0.150 0.120 0.120 0.060 0.050 0.020 Well-Being .550 0.626 0.750 0.700 0.950 0.750 1.140 Profitability 34.0 47.0 61.5 60.0 89.0 75.0 116.0 CNP Global measured the baseline KPI’s of where eGlobalServe sat at the end of 2016 and developed critical and stretch goals for the outcomes. The critical goal refers to the minimum the company must achieve to improve its financial, social and environmental performance. The stretch goal represents the higher level of achievement to significantly improve the financial performance to a degree such that eGlobalServe can impact the environment and community through involvements and contributions. CNP Global [email protected] 563-387-1287 5 2018 Budget eGlobalServe allocated a budget of 1.4 Million dollars to be spent on improving in areas crucial to the company’s success. This money was dedicated to improving the following functions, performance appraisals, work life balance, training, talent management, compensation, and selection. A more detailed breakdown of spending is available in the table below. The company also experienced isolated incidents each quarter requiring one-time spending. 2018 Q1 2018 Q2 2018 Q3 2018 Q4 Performance Appraisals Appraisal Effectiveness $ 15,000.00 $ 15,000.00 $ 15,000.00 $ 15,000.00 Results Oriented $ 30,000.00 $ 30,000.00 $ 30,000.00 $ 30,000.00 Work Life Balance Flex Time $ 50,000.00 $ 50,000.00 $ 50,000.00 $ 50,000.00 Training Mentor Program $ 40,000.00 $ 40,000.00 $ 40,000.00 $ 40,000.00 Learning Objectives $ 25,000.00 $ 25,000.00 Talent Management Systematic Job Posting $ 25,000.00 $ 25,000.00 $ 25,000.00 $ 25,000.00 Compensation Performance Based $ 40,000.00 $ 40,000.00 $ 40,000.00 $ 40,000.00 Selection Customize Recruitment $ 35,000.00 $ 35,000.00 $ 35,000.00 $ 35,000.00 Customize Interviews $ 35,000.00 $ 35,000.00 $ 35,000.00 $ 35,000.00 Total $ 295,000.00 $ 295,000.00 $ 270,000.00 $ 270,000.00 Sub-Total $ 1,130,000.00 CNP Global [email protected] 563-387-1287 6 Budget Continued The remaining $270,000 in the budget was spent on opportunities and issues worth addressing throughout the year. The situations were present each quarter and had a wide range of topics. When action seemed necessary to improve or protect the company, money was allocated. In some cases, the situations were an opportunity to improve in Key Performance Indicators, while in other cases the situation provided an opportunity to address an area of improvement within the company's culture. These expenses will be explained in more detail in later sections but a brief overview with descriptors is included below. Other Incurred Expenses 2018 Quarter 1 Conflict Resolution $ 8,000.00 Social Media Policy $ 45,000.00 2018 Quarter 2 Sustainability $ 25,000.00 Employee Layoff $ 45,185.00 2018 Quarter 3 Organizational Climate $ 20,000.00 Employee Engagement $ 40,000.00 2018 Quarter 4 Health Insurance Initiative $ 25,000.00 Discrimination Incident $ 60,000.00 Total $ 268,185.00 +1,130,000.00 =1,398,185.00 CNP Global [email protected] 563-387-1287 7 Absenteeism Absenteeism is damaging to a healthy workplace and can have a negative impact on productivity, overall team performance, and profitability. With all of these areas being key performance indicators, improving absenteeism was made a priority. Absenteeism is important to eGlobalServe because it is a reflection of employee engagement in their work. Unavoidable absenteeism can relate to illness or family emergencies. While this contributes to absenteeism there are still things eGlobalServe can do to improve Absenteeism such as making work more flexible and creating more support services for employees. This year work-life balance was the primary focus for absenteeism improvement by creating flex time scheduling for eGlobalServe employees. This is a decision carried over from 2018 and has proved to be a successful program. With flex time schedules, employees are required to be in from 10am to 3pm but they can choose start and end times from there. This scheduling plan gives eGlobalServe employees more control over their schedule. This program saw continued enthusiasm from both management and employees. It is CNP Global’s position that this program was again the main factor in the continued decrease in absenteeism. Another program continued this year was the systematic job posting and selection process. This program has helped eGlobalServe in many areas including absenteeism by creating a more competitive and robust job selection process. By making this process more competitive there are more reasons to be on time and present. This addition was further backed by the decision to offer competitive raises each quarter. In the second quarter of this year eGlobalServe lost an account and layoffs were necessary to maintain fiscal responsibility. The decision was made to lay off the lowest performing members of the team losing the CNP Global [email protected] 563-387-1287 8 account. The result was a more engaged single team inspiring members to come to work and reducing Absenteeism. Figure 1 Figure 2 CNP Global [email protected] 563-387-1287 9 Industry eGlobalServe Change Critical Goal Stretch Goal Avg. Spending 2016 360.00 360 360 360 $ - Q1 324.37 35.63 340 330 328.543 $ 115,000.00 Q2 293.63 30.74 320 300 300.618 $ 75,000.00 2017 Q3 272.55 21.08 300 270 281.031 $ 75,000.00 Q4 250.32 22.23 280 240 264.049 $ 115,000.00 Q1 226.07 24.25 260 210 246.453 $ 75,000.00 Q2 201.33 24.74 240 180 228.236 $ 120,185.00 2018 Q3 182.11 19.22 220 150 208.673 $ 75,000.00 Q4 165.99 16.12 200 120 194.059 $ 75,000.00 Figure 3 The initiatives and decisions made this year have yielded an 80-point decrease in absenteeism over the year from 250 to 165 (Figure 1). Additionally, the company has met its critical goal each quarter and remained above the industry average throughout 2018. These numbers are encouraging for continued improvement. The quarter seeing the most improvement was quarter 2 when the decision was made to merge two teams triggering the layoff of several low performing employees. While the decreases in Absenteeism have gotten smaller each quarter Absenteeism continues to be trimmed and there is reason to believe much of the Absenteeism occurring now is involuntary. The spending diagram in figure 2 shows the effect of increased spending on Absenteeism. Absenteeism saw a steady decrease each quarter with the highest decrease in the month with the most spending. The continued spending on reducing absenteeism has proven helpful, and eGlobalServe continues to meet the critical goal set in this area. CNP Global [email protected] 563-387-1287 10 Diversity Diversity is an important key performance indicator for eGlobalServe as it relates strongly to the social performance portion of the company’s “triple-bottom-line”. Improving diversity has an important role in maintaining integrity within the hiring process and ensuring eGlobalServe is not practicing discriminatory hiring practices. Additionally, diversity can be a gauge to judge community involvement, as eGlobalServe becomes more integrated into the community diversity will increase because they are communicating with more of the population. By optimizing diversity eGlobalServe seeks to engage a variety of demographic, and cultural differences as well as diversity among knowledge, skills and abilities. This year focus continued to be placed on creating a more robust hiring process focused on advertising careers through a wide variety of agencies, web outlets, and media. This initiative also focused on selecting more local talent for positions with less specific skill sets. The choice also allowed different job bands to customize recruitment which allowed them to recruit a wider range of applicants and increase efficiency. An additional focus with hiring this year was to enhance interview validity by customizing questions to meet the job descriptions and make interviews structured. eGlobalServe also made modifications to training protocols to make them more focused on job duties. Additionally, it added a mentorship program to training, connecting individuals across the company. This program has helped spread diverse ideas and connect individuals with various backgrounds. The program has played a role in increased diversity over the year. In the last quarter of the year eGlobalServe was involved EEOC action over a hiring decision. After reviewing the case it was decided to hire the employee involved. Furthermore, all managers and employees involved in CNP Global [email protected] 563-387-1287 11 hiring were put through a new training program to instruct on avoiding discriminatory hiring practices. Figure 4 Figure 5 CNP Global [email protected] 563-387-1287 12 Industry eGlobalServe Change Critical Goal Stretch Goal Avg. Spending 2016 0.240 0.24 0.24 0.24 $ - Q1 0.262 0.022 0.266 0.279 0.261 $ 100,000.00 Q2 0.286 0.024 0.293 0.318 0.285 $ 75,000.00 2017 Q3 0.308 0.022 0.319 0.356 0.306 $ 95,000.00 Q4 0.331 0.023 0.345 0.395 0.325 $ 100,000.00 Q1 0.365 0.034 0.371 0.434 0.347 $ 135,000.00 Q2 0.408 0.043 0.398 0.473 0.375 $ 135,000.00 2018 Q3 0.451 0.043 0.424 0.511 0.408 $ 110,000.00 Q4 0.495 0.044 0.450 0.550 0.44 $ 170,000.00 Figure 6 After failing to meet the critical goal for diversity last year it was decided to put extra focus on diversity. This emphasis was proven successful by the strong increases seen in diversity each quarter which have led to eGlobalServe passing its critical for the year. One of the major factors in the increase in diversity was the creation of a more robust interview process which led to increases in new and diverse hires each quarter. The mentorship program continues to be an asset to the company because of the continued push it provides employees to integrate and get to know each other. The decision to focus on training as well as creating new guidelines to avoid discriminatory interview practices led to the quarter with the most growth in diversity The spending diagram (figure 5) shows the steady growth throughout 2018 as it relates to spending. The fairly steady slope in this diagram indicates each dollar spent towards increasing diversity is seeing a fairly consistent return. The increased spending on diversity in 2018 was a prudent decision leading to eGlobalServe being the top company in the industry for diversity. CNP Global [email protected] 563-387-1287 13 Innovativeness Innovativeness is measured as the number of new and usable ideas generated by full time employees each quarter. Improving innovativeness has been a focus of spending because of the impact innovation has on profitability and the Triple Bottom Line. Innovativeness is an important key performance indicator because it lies at the core of eGlobalServe’s business model. As a knowledge-based firm providing trend analyses for a range of industries it is important to measure innovativeness companywide as well as gauge the effectiveness of initiatives to improve this key performance indicator. Throughout 2018 eGlobalServe continued to shift appraisal focus to results of employees rather than less relevant evaluation factors. This was extended to managers as they were evaluated on the effectiveness of their employee appraisals. This initiative continues to hold all eGlobalServe employees accountable for their work and encourages greater contributions to innovation, a component of the appraisal, each quarter. In 2018 the performance appraisal decision was backed up by offering merit raises based on the managers performance appraisal. This coupling produced more significant increases to innovativeness over the previous year as the continued raise schedule encouraged employee focus on generating ideas and doing exceptional work. In the first quarter of 2018, the decision was made to create a social media site specifically for eGlobalServe employees to share ideas and projects currently being worked on. This site will give employees a more productive way to take a break from everyday work and a more efficient way to share ideas. In the third quarter committees were formed to establish a better flow of ideas from creation and adaption to recognition and reward. CNP Global [email protected] 563-387-1287 14 Figure 7 Figure 8 CNP Global [email protected] 563-387-1287 15 Industry eGlobalServe Change Critical Goal Stretch Goal Avg. Spending 2016 0.500 0 0.5 0.5 0.5 $ - Q1 0.563 0.063 0.563 0.625 0.556 $ 85,000.00 Q2 0.627 0.064 0.625 0.750 0.620 $ 65,000.00 2017 Q3 0.687 0.060 0.688 0.875 0.677 $ 45,000.00 Q4 0.758 0.071 0.750 1.000 0.731 $ 65,000.00 Q1 0.858 0.100 0.813 1.125 0.798 $ 130,000.00 Q2 0.985 0.127 0.875 1.250 0.882 $ 85,000.00 2018 Q3 1.108 0.123 0.938 1.375 0.981 $ 145,000.00 Q4 1.236 0.128 1.000 1.500 1.075 $ 85,000.00 Figure 9 As shown in figure 7 eGlobalServe remains ahead of the critical goal set forward by the company and continues to grow faster than the industry average in innovativeness. These results have been aided by the consistent decision making each quarter to focus on results-oriented appraisals. While the critical goal continues to be met this year, eGlobalServe must continue to focus on meeting the stretch goal which eGlobalServe is approaching. In order to get closer to this goal it will be important for the company to continue to put a focus on results-based incentives and pay structures. Additionally, continue to fund programs such as the social network for project sharing is important to increased growth in innovation. Looking at figure 8 displays the connection between consistent spending and increased innovation. The spending each quarter continues to see effective growth in this area. The improvement in quarter 4 of 2017 was a motivating factor in continuing the merit based pay this year. The variation in slopes of figure 8 suggests there may be other factors contributing to innovation, which are not currently being accounted for. To achieve the growth goals of the company and meet the triple bottom line, continued investment in fostering innovativeness must be a priority. CNP Global [email protected] 563-387-1287 16 Productivity Productivity refers to employees’ quantity and quality of work output, considering a specified time frame or level of resources used to accomplish the work. Level of productivity is crucial to eGlobalServe as it directly impacts earnings for any given year. The more productive eGlobalServe and its employees are, the higher year-end profitability will be. Giving employees the best possible opportunities to enhance company productivity continued to be a major focus for CNP Global during the 2018 year. Throughout 2018 eGlobalServe continued to offer training and mentors to employees who had been with eGlobalServe for less than two years. New employees have continued to show immediate improved productivity. This contributed to eGlobalServe’s 39% increase in productivity over the year. During the first quarter of 2018 eGlobalServe implemented a new social media site with the purpose of allowing employees to stay in better contact with both each other and their clients. This site will not only allow employees to take a more productive break from work, it will also create a space for efficient sharing of ideas between colleagues. In the second quarter of 2018 an incident occurred within the company that resulted in an upper-level employee being laid off. This decision significantly reduced levels of stress around the office and provided better space for productivity in the company. During the third quarter of 2018 created space and time with the purpose of facilitating employee innovation in the workplace. This included the formation of committees tasked with creating an innovation pipeline. Employees have vocalized that this space has allowed them to be more creative in their thinking, thus raising workplace productivity. In the final quarter of 2018 eGlobalServe made the decision to create three tiers of health insurance which place the responsibility on each CNP Global [email protected] 563-387-1287 17 individual’s health choices. This decision was made consistent with the law as to avoid creating any legal issues. Employees can qualify for financially-friendlier health insurance plans based on their own health choices. A healthier workplace means more productivity, as employees will be better suited to focus on work and will be less likely to be absent from work. Finally, the continued decision to implement flex-time - allowing employees to choose their hours, as long as they are working from 10am to 3pm - continued to increase productivity as it allows employees to work when it is most convenient for them. Figure 10 CNP Global [email protected] 563-387-1287 18 Figure 11 Industry eGlobalServe Change Critical Goal Stretch Goal Avg. Spending 2016 40.000 0 40.000 40.000 40.000 $ - Q1 43.036 3.036 42.875 44.500 42.830 $ 115,000.00 Q2 46.169 3.133 45.750 49.000 45.794 $ 110,000.00 2017 Q3 48.700 2.531 48.625 53.500 48.291 $ 90,000.00 Q4 52.029 3.329 51.500 58.000 50.492 $ 130,000.00 Q1 56.498 4.469 54.375 62.500 53.240 $ 135,000.00 Q2 61.915 5.417 57.250 67.000 56.581 $ 135,185.00 2018 Q3 67.178 5.263 60.125 71.500 60.529 $ 130,000.00 Q4 72.516 5.338 63.000 76.000 63.941 $ 115,000.00 Figure 12 The initiatives and decisions made this year have yielded a 39% increase in productivity from 52.029 to 72.516. As in 2017, the critical goal was consistently met through all four quarters this year. eGlobalServe continues to substantially exceed the industry average in productivity. eGlobalServe’s productivity saw a larger increase during all four quarters this year than any of the quarters during the 2017 year. CNP Global [email protected] 563-387-1287 19 The spending diagram in figure 11 shows a correlation between the increase in spending on productivity and an increase in productivity. eGlobalServe’s large increases in productivity this year may be attributed to large allocation of funds spent in this area during 2018. The most significant increase in productivity was seen during quarter 2 of 2018, which was also the quarter that saw the highest spending on productivity. Continued spending on productivity will continue to see this aspect of eGlobalServe improve. CNP Global [email protected] 563-387-1287 20 Turnover The level of turnover in a company refers to the rate of which employees’ leave that organization. Keeping turnover low is crucial because when employees leave eGlobalServe they must be replaced. Replacing employees costs money and decreases efficiency as these new employees need to be trained, so retaining employees can help eGlobalServe improve productivity and profitability. In 2018 eGlobalServe continued to include the effectiveness of appraisals in managers’ performance criteria. Additionally, eGlobalServe continued using results-oriented appraisals that focused on the impact of employees’ work, rather than on unimportant factors that could creep into the review process. These decisions were consistently made every quarter and heavily contributed to a 35% decrease in turnover over the course of 2018. During the first quarter of 2018 there was a conflict between two current employees of eGlobalServe. eGlobalServe addressed both the symptoms and the causes of the conflict during the conflict resolution, which included creating an action plan with the purpose of improving the employees’ work relationship. By doing so, eGlobalServe was able to not only retain both employees, but also improve their work relationship and in turn improve overall productivity. In the third quarter of 2018 eGlobalServe made the decision to revise the company’s performance appraisal process. The new performance appraisal process focuses on accountability and rewards work behavior that improves KPI’s. When employees are clear on what is expected of them, how they can improve their work performance, and how they will be rewarded for good performance, they are more likely to stick with the company. eGlobalServe continued to implement a new training and mentor program for employees who had been employed for less than two years. This CNP Global [email protected] 563-387-1287 21 program has helped new employees feel more comfortable and confident in the workplace, thus keeping them around for longer and decreasing turnover. Matching them up with a mentor lets them know that they have someone to talk to if they are struggling in any capacity concerning the workplace. Throughout the 2018-year eGlobalServe continued to use a systematic job posting and selection process for transfers and promotions. This talent management decision allows current employees to have available opportunities to be promoted or transferred within the company. By giving employees this opportunity, eGlobalServe is retaining employees who may otherwise leave if there is not an underlying opportunity for them to move up within the company. Finally, the decision to continue implementing flex-time - allowing employees to choose their hours, as long as they are working from 10am to 3pm - has continued to decrease turnover as it allows employees to work when it is most convenient for them. Employees aren’t likely to leave a job that more easily allows them to plan their own schedule. Figure 13 CNP Global [email protected] 563-387-1287 22 Figure 14 Industry eGlobalServe Change Critical Goal Stretch Goal Avg. Spending 2016 0.180 0 0.180 0.180 0.180 $ - Q1 0.163 0.017 0.173 0.165 0.164 $ 135,000.00 Q2 0.148 0.015 0.165 0.150 0.151 $ 135,000.00 2017 Q3 0.138 0.010 0.158 0.135 0.141 $ 135,000.00 Q4 0.128 0.010 0.150 0.120 0.133 $ 135,000.00 Q1 0.115 0.013 0.143 0.105 0.124 $ 168,000.00 Q2 0.102 0.013 0.135 0.090 0.115 $ 160,000.00 2018 Q3 0.092 0.010 0.128 0.075 0.105 $ 180,000.00 Q4 0.083 0.009 0.120 0.060 0.098 $ 160,000.00 Figure 15 The initiatives and decisions made this year yielded a 35% decrease in turnover from 0.128 to 0.083. eGlobalServe consistently met the critical goal in 2018 and consistently remained above the industry average. Quarters 1 and 2 of 2018 showed the largest decreases in turnover, thought the decreases in CNP Global [email protected] 563-387-1287 23 quarters 3 and 4 were still larger than the industry average decrease. eGlobalServe continues to lead the industry in turnover. The spending diagram in figure 14 shows the correlation between the increase in spending on turnover and a decrease in turnover. Spending on turnover was higher in 2018 than it was in 2017, which paid off as eGlobalServe continues to lead the industry in turnover. eGlobalServe’s smallest decrease in turnover came in quarter 4 of 2018, which also saw the least amount of the budget spent on turnover during 2018. Continued spending on turnover is crucial to improving eGlobalServe’s profitability as replacing employees is a major expense. CNP Global [email protected] 563-387-1287 24 Well-Being Well-being refers to employees’ internal states that affect their capacity to make contributions to eGlobalServe and to those in their personal lives and communities. Physical health, stress, fatigue/energy, and illness all affect the well-being of employees at eGlobalServe. Well-being is connected to productivity, as employees who are physically and mentally sound will likely be more productive. It is also intertwined with turnover and absenteeism, as employees with a higher well-being are more likely to work more consistently and for a longer time. eGlobalServe continued to allow employees to mold their own schedule with the implementation of flex-time. This decision continues to be made in order to increase employee well-being. Employees can decide what their work hours will be, as long as they are at the office from 10am to 3pm. This allows employees with children to be able to work when is most convenient for them and their families. Additionally, employees can work earlier in the morning if they find they are more productive, or maybe later in the afternoon if that is when they get the most work done. This decision contributed to nearly a 27% increase in employee well-being over the course of 2018. Additionally, compensation decisions made each quarter impacted employee well-being. Employees want to know that they are financially secure, yet also have the opportunity to be rewarded when they perform well. The compensation plan stayed consistent each quarter of 2018. eGlobalServe decided to continue focusing on merit increases rather than any variable based pay. This meant employees would likely get a regular increase no matter how well or poorly the company performed. This makes costs more predictable, but some employees have vocalized that they don’t feel like they have a stake in the company’s success. In the final quarter of 2018 eGlobalServe made the decision to create three tiers of health insurance. Each individual employee’s health insurance is CNP Global [email protected] 563-387-1287 25 determined by that employee’s health choices. The implementation of this new health insurance plan is directly correlated to employee well-being, and this plan was made consistent with the law as to avoid creating any legal issues. Employees can qualify for financially-friendlier health insurance plans based on their own health choices. A healthier workplace means happier employees. Not only will this decision improve employee well-being, it should improve turnover, productivity, and absenteeism as well. Figure 16 CNP Global [email protected] 563-387-1287 26 Figure 17 Industry eGlobalServe Change Critical Goal Stretch Goal Avg. Spending 2016 0.550 0 0.550 0.550 0.550 $ - Q1 0.581 0.031 0.569 0.600 0.579 $ 90,000.00 Q2 0.613 0.032 0.588 0.650 0.608 $ 90,000.00 2017 Q3 0.638 0.025 0.607 0.700 0.633 $ 180,000.00 Q4 0.667 0.029 0.626 0.750 0.655 $ 130,000.00 Q1 0.707 0.040 0.645 0.800 0.683 $ 90,000.00 Q2 0.755 0.048 0.664 0.850 0.715 $ 90,000.00 2018 Q3 0.800 0.045 0.683 0.900 0.753 $ 90,000.00 Q4 0.845 0.045 0.700 0.950 0.785 $ 115,000.00 Figure 18 The initiatives and decisions made this year yielded a 27% increase in employee well-being from .667 units to .845. eGlobalServe is consistently meeting its critical goal in this category, and during 2018 consistently led the industry in employee well-being. Employee well-being increased at a fairly consistent rate during 2018, which likely can be attributed by the consistent decisions made during the year. All four quarters of 2018 had higher increases than the highest increase of 2017. CNP Global [email protected] 563-387-1287 27 Figure 17 shows the correlation between spending on employee well-being and the increase in employee well-being. eGlobalServe was consistent during 2018 in its spending on employee well-being, only spending more in quarter 4 in order to implement the new health insurance initiative. Employee well-being increased at a substantially higher rate in 2018 than it did in 2017, even though spending stayed fairly consistent over both years. Continued spending on employee well-being will increase productivity while decreasing turnover and absenteeism. CNP Global [email protected] 563-387-1287 28 Profitability Profitability refers to the aspect of eGlobalServe’s operations that is most crucial to its success. For a company that has barely been able to meet its break-even point in recent years, profitability must be improved in order to succeed. Every decision made by eGlobalServe is ultimately made with profitability in mind, and profitability is innately linked to many other outcomes, such as productivity, turnover, and absenteeism. Enhancing these outcomes in turn increased profitability. The first decision made to increase profitability involved including the effectiveness of appraisals in managers’ performance criteria. Additionally, eGlobalServe began using results-oriented appraisals that focused on the impact of employees’ work, rather than on unimportant factors that could creep into the review process. These decisions were consistently made every quarter as eGlobalServe saw nearly a 41% increase in profitability over the course of 2018. Additionally, eGlobalServe’s decision to implement a new training program for employees who had been employed for less than two years (discussed above under “productivity”) also helped increase profitability. By demonstrating improved productivity, these employees also contributed to eGlobalServe’s profitability during 2018. During quarter 2 of 2018, eGlobalServe’s decision to develop a half-time position to coordinate sustainability efforts generated excitement within the company and produced the largest increase from 54.311 to 61.579. This decision was made with consideration for the sustainability aspect of eGlobalServe’s triple bottom line. CNP Global [email protected] 563-387-1287 29 Figure 19 Figure 20 CNP Global [email protected] 563-387-1287 30 Industry eGlobalServe Change Critical Goal Stretch Goal Avg. Spending 2016 34.000 34.000 34.000 34.000 $ - Q1 37.549 3.55 37.250 40.875 37.430 $ 110,000.00 Q2 41.338 3.79 40.500 47.750 41.220 $ 105,000.00 2017 Q3 44.781 3.44 43.750 54.625 44.560 $ 85,000.00 Q4 48.603 3.82 47.000 61.500 47.666 $ 125,000.00 Q1 54.311 5.71 50.250 68.375 51.398 $ 110,000.00 Q2 61.579 7.27 53.500 75.250 56.146 $ 155,185.00 2018 Q3 68.836 7.26 56.750 82.125 61.730 $ 85,000.00 Q4 76.354 7.52 60.000 89.000 63.941 $ 85,000.00 Figure 21 The initiatives and decisions made this year yielded an increase in profitability from 48.603 to 76.354. The critical goal has been consistently met through each quarter and eGlobalServe has been consistently above the industry average in profitability. The largest increase in profitability was seen during quarter 2 and 4, when the half-time sustainability coordinator position was created. Profitability dipped slightly in quarter 3, but increased to a higher rate during quarter 4. The spending diagram in figure 14 shows the correlation between the increase in spending on profitability and an increase in profitability. The quarter with the most spending on profitability was quarter 4, in which profitability increased at a rate of 11% from quarter 3. Continued spending on profitability is critical to eGlobalServe’s future success. CNP Global [email protected] 563-387-1287 31 Conclusion The second year of CNP Global’s partnership with eGlobalServe has shown improvements in all six key performance indicators. With an underlying mission of improving triple-bottom-line profitability, our teams have created decision making initiatives directly related to optimized success. Our results have situated eGlobalServe above the average industry competitor in all six KPI’s. Moving forward into year three we hope to maintain pace with our critical goals and strive towards the stretch goals. Through a continued devotion to enhancing the human capital of eGlobalServe, CNP will remain dedicated to providing high quality service and looks forward to the remainder of our contract. Colin Lane Nathan Schulte Peder Smith CNP Global [email protected] 563-387-1287
Enter the password to open this PDF file:
-
-
-
-
-
-
-
-
-
-
-
-