Evidence Case Study: Nampak
The following case study was provided as part of the evidence for the effectiveness of employee engagement strategies in improving performance, productivity and, in the private sector profitability. It has been used cumulatively with other submissions compiled by many leading companies and organisations to leave little room for doubt about the statistical importance of engaging employees.
This particular case study is an additional support to The Evidence Paper
Nampak specialises in the manufacture of packaging in metal, glass, paper and plastic in Africa and Europe.
On his appointment the new Managing Director of Nampak Europe, Eric Collins, was keen to establish engagement of employees as natural and sustainable whilst encouraging employee participation in a traditional and successful business. Shortly after his arrival a KBS employee survey was commissioned in early 2008.
Major gripes from staff included a lack of feedback on performance from managers, a lack of regular team meetings, and teams/departments not working together.
At the end of 2008 the employees of the company expected various things: that change would happen; that the management would modify their style and behaviour and start communicating clearly and effectively; that they would be respected and listened to; and that they would have the opportunity to participate without fear or blame.
Various barriers were encountered including a lack of strategic vision amongst senior leaders, behaviours going against core company values, and Employee Engagement being seen as ‘soft and fluffy stuff’.
The new Employee Engagement programme was introduced and had several areas of focus: Senior Management were pushed to lead by example whilst keeping things fresh, interesting and challenging; visible recognition systems were utilised everywhere and for all; staff were encouraged to be patient; the only price of the programme is consistent commitment from the very top down.
A major success was the implementation of employee awards for things such as Suggestion of the Year, Best Team Award, Best Manager Award, Manufacturing Director’s Award.
A further Nampak management survey was undertaken in 2010. The overall engagement results were positive with a 5% increase of strongly engaged (6% in 2006 moving to 11% in 2010) and a reduction of 3% of those who were disengaged (7% in 2008 moving to 4% in 2010).
Over the same period absence levels reduced by 26%, reportable accidents reduced by 23% and Labour turnover rates reduced by 38%.
As a result, in 2010, Nampak was named in the People Management / CIPD Employee Engagement category & Overall winner