It was with great optimism that Angelo opened his first Angelos Pizza Store, but the optimism didnt last long. Customers flooded the store for several days after he opened, drawn, no doubt, by the advertised claim that We offer only the best, at reasonable prices. But after two weeks, his meals served had dropped to the point where he could barely pay the rent. Customers on sites like Yelp were dinging him with comments such as My waiter acted like he was doing me a favor taking my order, and If you want to be aggravated while you eat, this is the place for you. Angelo suspected he had a personnel problem but wasnt sure what to do. In brief, he felt that his employees just didnt care.

BUILDING YOUR MANAGEMENT SKILLS How to Execute an Employee Engagement Strategy Actually executing Kia UKs employee engagement HR strategy involved six steps (and these provide a roadmap for any such endeavor). First, Kia UK set measurable objectives for the program. These objectives included improving by at least 10% survey feedback scores for line managers behaviors, in terms of communication, the quality of appraisal feedback they gave their direct reports, the recognition of work done, and the respect between manager and employee. 76 Other objectives included reducing employee turnover employment costs (e.g., recruitment costs) by at least 10% per year.

Second, Kia UK held an extensive leadership development program. For example, they sent all managers for training to improve their management skills. They then tested the new skills with 360-degree assessment tools (these basically meant having managers bosses, peers, and subordinates rate the managers new leadership skills).

Third, Kia UK instituted new employee recognition programs. These included, for instance, giving Outstanding Awards to selected employees quarterly, and Kia thank you cards for jobs well done. 77

Fourth, Kia UK improved internal communications. For example, they instituted quarterly employee briefings, more extensive use of performance appraisals, and launched a new corporate intranet called Kia Vision (this provided key business information and other useful communiqus to all employees). Based on employee feedback, Kia UK also decided, as part of the enhanced communications, to institute an employee forum. This consisted of one representative from each department; the forum in effect empowered and involved employees by enabling them to express opinions, suggestions, and concerns about their jobs.

Fifth, they instituted a new employee development program. This involved using the companys appraisal process to identify employees training needs. Kia then created training plans for each employee. They based these plans on Kias needs and on the employees stated career aspirations.

Sixth, Kia UK made a number of changes to its compensation and other policies. For instance, they eliminated bonuses and substituted fixed-rate percentage-based salary increases. They also rewrote the entire employee handbook and all HR policies and procedures to ensure they were aligned with [Kia UKs new] cultural values. 78

The Results The results of the new employee engagement program were impressive. Employee surveys of employee engagement and of line managers communications and other behaviors improved markedly; employee turnover fell from 31% in 2006 to 15% in 2007, to 5% in 2008, and to below 2% by the end of 2009; and recruitment and turnover costs fell by more than 400,000 British pounds within two years, a 71% reduction. 79

Earlier we said that strategic human resource management means putting in place the HR policies and practices that will produce the employee competencies and behaviors that the company needs to achieve its strategic goals. Kia UKs employee engagement program illustrates how one company actually did this.

Answer this:

(Do you think Angelo, from the chapter opener, could apply any of this to improve his service? What should he do? List in steps like above)