I attended a eBusiness round table this week… below is a list of things that I gleaned from the presentations

• LoSoMo = the trend towards Local Social and Mobile
• The internet represents a $50b contribution to GDP in Australia (the same size as iron ore exports.
• 36.7% of all music sales are now done online
• The Google campaign with MYOB ‘Getting Aussie Businesses Online’ was considered a success – now about 50% of all Australian small businesses have an internet presence.
• One in every 12 retail dollars is spent online (this number excludes travel and airlines and group buying.) Group buying is not considered eCommerce because they are selling promotional coupons
• 30% of eCommerce transactions go off-shore mainly to the US
• 50% of all purchases made in Australia are influenced by an online presence
• 25% of all searches are now done on a mobile device
• 2% of people who visit an eCommerce site will buy. (ie one in 50 visitors is a purchaser)
• By 2013 more purchases will be made on mobile devices than on desktop machines
• There are about 22million people in Australia and 27million mobile devices
• Google search results on a mobile device will prioritize in presenting results for sites that have a mobile version.
• Googleartproject.com

To be a robust technology driven economy Australia needs:

1. Infrastructure (NBN – it is all about speed)
2. People – build a culture of skilled innovators – invest in STEM (science, technology, engineering and maths)
3. Ideas – focus on the customer experience and the great innovations will follow

Employee engagement takes commitment too

Often I get asked ‘what is your employee engagement secret?’. Megan (RedBalloon Employee Experience Manager)  argues that we don’t have an engagement secret (maybe because we will tell anyone who is interested what we’ve learned – so by definition it’s not a secret). It does take focused commitment from every leader in a business – consistently.

Employee engagement is a journey not an activity. Some organizations are further along their journey than others – but how do you know where your organization is up to in the journey. That is why RedBalloon and Shirlaws came together late last year to undertake some research into organaizational engagement capability. More than 300 organizations participated in the research.

This week we will be launching the results at an event on 2 February in Sydney – I think there are a few places left if you would like to attend…here’s the link to details and tickets.

Some of the findings

1. Training & development, non-cash rewards & incentives, internal communications and flexible working arrangements are the most popular forms of engagement spend across the board, regardless of engagement score
2. Coaching and buddy programs along with a social club are around twice as likely to feature on the menu for engagement in organizations with an engagement score of 80%+ as they are in the group scoring 40-60%
3. A high level of capability in the areas of purpose, culture and recognition doubles your organizations chances of achieving an engagement score of 80% and above
4. Organizations with an engagement score of more than 80% are 30% more capable than those with average levels of engagement
5. Increasing capability from below 50 to above 70 (out of a possible 100) increases your chances of achieving a 80%+ engagement score by x11

I look forward to seeing you at the event….

I think this 4 minute video is well worth a watch. Is Social Media a fad? I know that it might not be the destination – but twitter et al is all part of the journey.

Lucky number on the BHAG scoreboard

Another big milestone will be released on Saturday…. version 7 of the website. A massive week for everyone at RedBalloon… and you can be assured we will celebrate in style… what an amazing effort from all concerned.

Thank you to the team, our customers, suppliers and everyone who believes in what we are doing. And for giving us a go.. it is so much appreciated.

My simple very non-theoretical answer when challenged on ‘why’ was simply ‘why not’. The reality is that one by one women make a choice about the role they want to play and the contribution they wish to make. More and more women choose to do ‘it’ for themselves – and run their own show.

Interesting the new figures from the latest (March quarter) Sensis Business Index report tell me that I want more women in senior roles everywhere in businesses in Australia. Women bring not just different qualities but also a different outlook.

Women business operators are more positive about their prospects heading into 2011 and more likely to be aiming for significant business growth than their male counterparts. (that sounds like a plan.)

The analysis also shows that business women are more successful with accessing credit and more optimistic about the future of their business and the economy.

Key research findings

• 62 per cent of women who own or run businesses hold stronger expectations for sales in a year’s time compared to 57 per cent of businesses run by men
• 87 per cent of businesses operated by women that had applied for finance reported success with their applications compared with 59 per cent of businesses run by men
• 54 per cent of women believe the economy will also perform better in a year’s time, compared to 48 per cent of men
• 10 per cent of women were aiming for significant growth, compared to six per cent of men.

I cannot stress enough that it is important for women to let others around them -  see what they are up to. We need more role models. A great way to make sure women get noticed is to nominate a woman for the Telstra Business Women’s Awards which is a wonderful vehicle for profiling women’s achievements.

• Nominations and entries are still open (closing June 21^st).
• The entry website is: www.telstrabusinesswomensawards.com
• The Awards recognise the individual achievement of women in the community from a diverse range of areas including business, education, health, science, government, sport and community work, and have been going for 16 years.

Who do you know a woman who is doing great things in her chosen field? Nominate her right now… We need more role models – and in so doing we will start a movement that will become our culture of women in leadership.

It might be worth downloading the full report

Below are some of the key findings… But the biggest outcome I got from reading the results – is we are not finished yet. There is so much work to be done. Engagement is a journey that many organizations are just starting – and have a long and rocky road ahead of them. We need to support managers with tools, training and strategic imperative.. to make recognition as important as commercial rigor – they are of course one in the same thing. 

Key Findings:
	Praise is not frequent enough – One in five employees does not receive any praise at all or at best, it only happens once per year. And 62% of managers are rated as "Poor" or just "Satisfactory" at delivering specific and timely praise.
	Managers are driving employees away – 52% of employees say not receiving recognition would contribute to them leaving a company.
	Managers don’t know their people – two thirds of employees are convinced their managers don’t know what motivates them to be more productive.
	Recognition means the most from the manager – Close to half of employees surveyed want to be recognised directly by their manager on a one-on-one basis.
	Only one in three companies were rated as being "Excellent" or "Good" at rewarding and recognising their employees.
	Employees want to receive rewards that involve spending time doing activities and sharing experiences with friends or family (55%).

A few weeks ago we received the survey results back. More than 3000 people gave us feedback on the current state of Reward and Recognition in businesses in Australia and New Zealand.

The basic premise – ‘Managers are driving employees away’. 70% of an employees engagement is determined by their immediate supervisor according to Hay Group. The RedBalloon research wanted to establish why this is the case.

It appears managers have missed the point when it comes to acknowledging and appreciating their employees for their hard work and contribution and this will cause employees to jump ship. Managers are in the spotlight after 62 percent of employees have rated them as ‘not good’ at delivering specific and timely praise.

52% of the respondents said that, not receiving any recognition would be a contributing factor in their decision to leave their organizations, and 28 percent would leave if they were not receiving any recognition at all.

There is a fundamental requirement for people to feel that they belong and that the organization notices what they contribute. People have a choice – and they would rather work with a direct manager who appreciates them. Otherwise they will go elsewhere and find a manager who will.

The study found that managers do not know their people. Two thirds across all generations are convinced their managers don’t know what motivates them.

Without a formal recognition program in place, recognition is left up to the direct manager, – and respondents tell us that that means that recognition doesn’t happen. Recognition has become subjective, only if the manager remembers. This is not good enough.

Recognition is a powerful driver.

As leaders we need to support managers, with resources, training, information on WHY recognition is such a critical part of commercial results – but also give them the tools on HOW to make people feel great.

Managers need to be empowered to say thanks, and given the tools to do it. It has to be part of ‘how we do things around here.’

For a copy of the full survey results

It is a happy message that I share, people are left knowing that a few simple things will make a massive difference to them in their businesses.

One CEO on my travels announced “Recognition is the cheapest way I know to deliver on the plan.”

I presented to a group of CFO’s, I shared that Gallup stated ‘If you improve employee satisfaction by 20% – then on average organizations get a 42% improvement to the bottom line.’  One CFO commented – “well that seems a no brainer.” 

So why is it that only 36% of Australian organisations have a formal reward and recognition program then?

There is a mood of optimism around the country. Though there is a sense of foreboding for many HR practitioners – ‘we’ve had a year of relative stability in employment and there was more great talent around, this is about to come to a screaming halt.’

One statistic being bandied around is that more than 50% of employees have waited until the down turn was over and are planning to leave their present employer within the next 12 months.  This is scary.

Over the past 18 months employers have been asking for discretionary effort from their teams – some people have given it, some have been acknowledged for it. But those who are not recognising their people are about to be caught up in a mass exodus.

According to Hayes Consulting 70% of employee engagement is determined by the persons immediate manager. (we know that a third of people leave an organisation because of their direct manager) so that is another 40% who are hanging around not engaged and un-productive.

I cannot stress enough the urgency to act now. We are about to have a massive long term talent shortage. Look after, love and notice the contribution of those who do work with you and there is a chance that you will be able to improve your efficiencies, your competitiveness and your profitability – and keep your number one asset, the team.

If you already have a recognition program, are you keeping it fresh, exciting and interesting? Is it the tool to deliver authentic acknowledgment? Is the program delivering the commercial returns?

I’m so pleased that people around the country are interested in the RedBalloon employee engagement story  – and this rejuvenated interest is coinciding with peoples optimistic economic views.

Get the people thing right and we will have long term commercial returns – and really be living in the lucky country.

“Data from the 10th Edelman Trust Barometer was launched recently at the World Economic Forum in Davos. The Trust Barometer surveys 4500 high-income, tertiary-educated people in 20 countries, and now includes data from Australia.

Three-quarters of Australians surveyed say they trust companies far less today than they did a year ago, with only 43 per cent saying they trust business to do what is right.

And just 19 per cent have faith in CEOs of our major companies.”

I remember my father saying to me as a child ‘Do as I say, not what I do.’ He kind of said it in jest. But I was always left somewhat confused. You can’t pick and choose the times you want to live by values and those you don’t. It is in everything that you do, say or the way you behave. Only after a long, consistent approach is trust built. And it can be taken away in a moment.

Which might be why the Australian public has voiced its opinion so dramatically.

What can leaders do to build trust back into the business an the community around it? It won’t happen over night. It may take years, it is a journey not an activity. It is an ongoing relentless program of authenticity. And that, for most seems like hard work.

Leadership teams throughout the country are making some of the hardest business decisions they’ve ever made during their careers which may be contributing to  this decline in trust – or is it simply how tough messages are being communicated?

Stuff happens in business, including the GFC, loss of contracts or new regulations. The point is how much do we share with our people – will it scare them if we are too open so they begin to think ‘I best look for something else’ or do they think ‘we best pull together on this one’.

I argue if you treat your people like children (and insulate them from the real business issues) then they will act like kids. We must be real, yet reassuring, consistent and pragmatic. Simply we must do what we say we are going to do. All day every day, over and over and then there will be trust.

Well our latest survey looked at what employees think it takes for Corporate Australia to remain resilient throughout the GFC, and the findings revealed some relieving results for those who have been waiting for some optimism.

Here are the main findings:

• Apparently half of Australian’s have confidence in Corporate Australia remaining resilient throughout the GFC. Gen X respondents have the most faith at 55 percent, followed by Gen Y 47 percent and Baby Boomers at 30 percent.
   
• The mentality “we’re all in this together” is present in 65 percent of Aussie workplaces, with the majority believing ‘Mateship’ will equip Aussie businesses against the GFC.
   
• The values that are important to Aussie employees were in the following order:

1. Mateship
2. Guts & Resilience
3. ‘A Fair Go’
4. ‘Giving a pat on the back’

• Fostering an atmosphere that values Mateship and implicit trust is key in this climate. People thrive when they feel ‘part of something’ and are respected for their part by their peers.
   
• It’s worth noting that while ‘Guts and Resilience’ was nominated as the second most powerful quality for workplaces to have in the current climate, it had the least presence in Aussie workplaces.
• It’s time to reassure our people and strengthen your teams. It takes guts to take risks in a downturn, it’s so easy to stick to what you know and put new ideas on hold until you’ve weathered the storm but t’s not going to put you ahead when the sun comes out
   
• Interestingly in order to keep their jobs, 73 percent of respondents would rather sacrifice a promotion and nearly half of Aussies (47 percent) would opt to sacrifice a proportion of their pay. The results show ultimately, above career progression and pay, Aussies do not want to give up their happiness at work (only 15 percent) and not many more would sacrifice their work life balance (24 percent)
   
• The good news for employers who are tightening their budgets is that out of all the ways to motivate employees to be more productive, 62 percent say acknowledgment and recognition for our contribution is enough.  Yet only 44 percent of respondents said this ‘Pat on the Back’ culture exists in their workplace.

A simple thank you has always been free and this is the one thing employers have complete control over. Recognition frequency should not decline in a downturn, just because budgets are in decline too. The message for managers is simply not to forget to say thanks and acknowledge their people throughout the downturn