Aon Hewitt_Trends in Employee Engagement_June 2012

7/28/2019 Aon Hewitt_Trends in Employee Engagement_June 2012

1/28

2012 Trends in Global Engagement

From Credit Crunch . to Talent Crunch

Aon Hewitt Webinar, June 28

ConsultingGlobal Compensation & Talent


2/28

Consulting | Global Compensation & Talent 1

Our speakers today

Dr. Wolf-Bertram von Bismarck

Aon Hewitt EMEA Talent

Practice Leader

Laurent Termignon

Aon Hewitt EMEA

Compensation & Talent

Practice Director

Ken Oehler, PhD

Aon Hewitt Global Engagement

Practice Leader


3/28


Agenda

Introductions

The global picture

Focus on Europe

How successful organisations are responding to the crunch


4/28


Introductions

Global Landscape: Uneven and Slowing Growth

Global growth projected at 3.5% in 2012

Over the next 13 years, global growth will

be between 0.5 1.0% below the growth

rate from 1995-2008

Growth rates vary significantly by region

Advanced economy*

growth is

expected to slow

from 1.6% in 2011

to 1.3% in 2012

Emerging economies**

will slow

from 6.3% growth in 2011 to 5.6% in

2012

Source: The Conference Board, Global Economic Look 2012

*Advanced Economies: U.S., Japan, EU prior to 2004

**Emerging Economies: China, India, Latin America, Middle East, Africa, Central + Eastern Europe, Russia, and other CIS

3


5/28


European Workforce Projections

Population projections show increasing age & diversity

workforce trends

emerging over

time.

Source: Lanzieri, G. (2011). Fewer, older and multicultural? Projections of the EU populations by foreign/national background, Eurostat

Methodologies and

Working Papers.

4

Projected share of the population

with foreign background by age group (%)


6/28


In This Environment, Organisations Must:

Maintain efficiency

Drive growth

Foster more innovation

Integrate acquired businesses better/faster

Include and involve an increasingly diverse workforce

Protect against talent flight as the economy improves

Respond rapidly to local opportunities while operating globally

5


7/28

The Global Picture


8/28

9.7 Milliontotal employees represented.


About our Global Trends Research

More than 3,100organisations represented.

Asia Pacific, Europe, Latin

America, North America

Broad range

of

company

sizes and industries


9/28

Our Definition of Engagement


Engagement is the state of emotional and intellectual involvement and

commitment that leads people to do their best work.

We see engagement when people:

Consistently speak positively

about the organisation to

coworkers, potential employees, and customersSay

Have an intense desire to be part of the organisationStay

Exert extra effort and engage in behaviours

that

contribute to business successStrive


10/28


Global Engagement Trends

Global engagement increased by two percentage points from 56% (2010) to 58% (2011)

Four out of ten employees are still not engaged worldwide.

Engagement levels are stabilizing globally but shifting across regions.

55%

51%

52%

71%72%

71%

67%

64%64%

60%

55%

58%

45%

55%

65%

75%

2009 2010 2011

Asia Pacific

Europe

Latin America

North America

Global

59% 56%

Global Engagement Trends


11/28


Employee Engagement and Economic Indicators

Employee engagement shows a lagged relationship with economic indicators (GDPand Unemployment).

As GDP goes down, engagement goes up.

As unemployment rates go up (which is highly correlated with changes in GDP),

engagement rises.

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

2007 2008 2009 2010 2011

Global GDP

(% change YOY)

Global Unemployment(change in statistic)

Global Engagement

(change in score)

Change from previous year


12/28


Increased and Decreased Perception Levels from 2010 to 2011

0%

10%

20%

30%40%

50%

60%

70%

80%Total Rewards People Company Practices

61%

42%

52%57%

75%

53% 51%54%

40%

49%54%

70%

47% 46%

BU/Division

Leadership

Pay Benefits Value People/People Focus

Customers People/HR

Practices

BrandAlignment

2011

2010

0%10%

20%

30%

40%

50%60%

70%

80%

Effective

CommunicationInnovation

42%49%

46%52%

2011

2010

BU/Division


13/28


Top Engagement Drivers

2011 Top 5 Regional Drivers

Global

2011APAC Europe Latin America North America

Career Opportunities 1 1 1 2 1

Recognition 2 3 5 1 4

Organization Reputation 3 2 3

Communication 4 4 3 5

Managing Performance 5 2

Pay 4 5

Innovation 3

Brand Alignment

People/HR Practices 2

Career Aspirations 5 4

Shaded cells show the top three scores for each region/global.


14/28

Focus on Europe


15/28


European Engagement and Economic Indicators

Europe Engagement Trends Compared to Global Economic Indicators

Global GDP

(% change YOY)

Global Unemployment

(change in statistic)

Global Engagement

(change in score)

-6%-4%

-2%

0%

2%

4%

6%

8%

10%

2007 2008 2009 2010 2011

ChangeFromP

reviousYear

Also in Europe engagement lags economic indicators

The workforce needs quite long to realize how a crisis is impacting their personal and

work life


16/28

Source: Aon Hewitt Employee Engagement Database

Divergent Engagement Between Managers and Employees

15

While engagement for roles with people management responsibility continuouslyincrease the engagement of professional as well as front line employees continuously

dropped

Engagement scores per Level in Europe

Executive & Senior Management

Middle Management

Professional Employee

Team Leader/Supervisor

Team Member/Front-Line employee


17/28

Zoom in

European Markets

47%

64%

53%51%

46%48%

50%

62%

55%

44%

47%

50%

61%64%

48%

38%

50%49%

47%

53%

0%

10%

20%

30%

40%

50%

60%

70%

Austri

a

Belgium

CzechRe

public

Denm

ark

Fran

ce

Germ

any

Greec

e

Hungary

Italy

Neth

erland

s

Pola

nd

Roma

nia

Russia

Slovakia

Spain

Swed

en

Switerla

nd

Turke

y

Ukraine

Unite

dKingd

om

2011

16Consulting | Global Compensation & Talent

Within Europe engagement scores vary strongly between countries. Countries with high scores are Russia, Ukraine, Hungary, Romania and Greece


18/28


Critical Components of Engagement In Europe

'Say' scores in Europe are lower than 'Stay' and lower than 'Strive' scores Variations in the Stay questions are slightly stronger than in other scores

60%

68%

65%

59%

67%

64%

61%

70%

66%

52%

54%

56%

58%

60%

62%

64%

66%

68%

70%

72%

2011

2010

2009

Consistently speak

positively

about the

organisation

Have an intense desire

to be part

of the

organisation

Exert extra effort

& engage in behaviors

that contribute to

business success

Say Stay Strive


19/28


2011 Key Driver Perceptions

Europe Asia Pacific North America Latin America

Career Opportunities 36% 47% 52% 57%

Organisational Reputation 47% 56% 60% 68%

Innovation 42% 56% 50% 59%

Communication 40% 46% 38% 46%

Recognition 39% 45% 50% 46%


20/28


Changes in Key European Driver Perceptions

36%

39%40%

42%

47%

42%

45%

51%

45%

37%

0%

10%

20%

30%

40%

50%

60%

Career

Opportunities

Organisational

Reputation

Innovation Effective

Communication

Recognition

2011

2010

Perceptions of organisational reputation have increased between 2010 and 2011

Perception of innovation is strongly decreasing


21/28


2011 European Engagement Levels by Generation

Baby Boomers

(born 19461964)

Generation X

(born 19651978)

Millennials

(born 1979Present)

2011 Career Opportunities

Communication

ManagingPerformance

Org Reputation

Recognition

Career Opportunities

Managing

PerformanceOrg Reputation

Recognition

Work Processes


Communication

Org ReputationPay

Work Processes


InnovationBU/Division LeadershipCommunication

Managing Performance


People/HR PracticesInnovation

Managing

Performance

Org Reputation


PayBrand Alignment

Recognition

Innovation


Brand AlignmentRecognition

People/HR Practices

Valuing People/People

Focus


Brand AlignmentWork Processes

Pay

Senior Leadership

Brand Alignment

Career OpportunitiesPay

Recognition

Work Processes

0%

20%

40%

60%

80%

100%

BabyBoom

ers

Generation

X

Millennials

Engaged

49%52%

58%


22/28

Responding to the crunch


23/28


Opportunities to Improve Engagement

Including some advice from

Aon Hewitt Best Employers!

Create a culture of engagement

through

leadership

Invest time to obtain top leadership buy-in

We established a Leadership style program

based on hand-picked managers whose teams

have high engagement scores

We have a role model program with strong

people managers as buddies

Recognise peoples

efforts and

performance

Ensure recognition is fair, transparent

and goes beyond the immediate team

Create employee growth opportunities Develop more creative or less traditional

growth opportunities

Select employees pre-disposed to

engagement

Connect with your employees

Listen to your employees, be transparent about

why certain business decisions have been madeand ensure timely communications


24/28


Understand the key priorities across your organisation

Focus on two or three things which will make a difference

Execute well (and communicate!)

Closing Messages

This is my third company and numerous

cycles doing surveys and Ive only seen one really good success story. The

entire organisation (11,000 people) dived into action planning. They

mobilised a lot of people. It became the driving force, every conversation,everything. It had the attention and focus of leadership


25/28

Aon Hewitts Research

Managers: Your Strongest

(or Weakest) link in Driving

Employee Engagement?This study the role managers play in

optimising

the business impact of

employee surveys. Conducted in 10

European countries.

Qudurat

Aon Hewitts labor

market survey in the Middle EastImplying capabilities

in Arabic, Qudurat

provides compelling insights into the

demographics strengths and preferences of

talent in the region.

Top Companies for LeadersThe most comprehensive research on

leadership: with 478 companies participating

and 900 CEO, HR and senior executives

interviewed around the world, it provides the

widest comparison of leadership policies and

practices and valuable intelligence for all

organisations seeking to improve theirleadership capabilities.

QUDUR

AT

24


26/28


Questions?

To submit a question or comment use the Chat box, located on the

lower right-hand side

of your screen. Simply type your message into the box and click on the send button.

Please enter

your comments

and questions

here


27/28


Contact us at.

[email protected]


28/28

Consulting | Global Compensation & Talent

Proprietary & Confidential (Optional) | Date (Optional) 27

Aon Hewitt Global Footprint

With more than 300 offices

around the world, Aon Hewitt is

the worlds premier destination

for the broadest range of humanresources consulting and

outsourcing services.

To find the nearest office location

to you, visit aonhewitt.com

Documents

Aon Hewitt_Trends in Employee Engagement_June 2012