hr leads - making engagement happen

Copyright © 2014 Aon Hewitt Limited. All rights reserved. Aon Hewitt Limited, 8 Devonshire Square London EC2M 4PL Registered in England No. 4396810

Making Engagement Happen HR Leads Olivier Hamelle, Astik Ranade

September 2014

Proprietary & Confidential | April 2014 2

Overview

Diversifying Beyond Traditional Boundaries

Overview and Introduction

The Business Case: Employee Engagement, Economy and Results

Making Engagement Happen

Knowledge Sharing and Discussion

What’s next

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Commitment to knowledge sharing

HR Leads

•  A platform for the exchange of ideas shaping the future of human capital in this region.

•  Over 16 HR Leads in the Middle East since 2010 and with contributions form

over 210 HR leaders have contributed to this event

We are committed to this platform

•  Aon Hewitt Employee Engagement Specialist

•  Over 14 years experience in Human Resources

•  Clients include Manufacturing, Pharmaceuticals, IT / Telcoms, Professional Services as well

as Government Agencies

Making Engagement Happen with: Olivier Hamelle - Director of Engagement Europe

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To what extent does engagement impact an organisation’s performance?

A.  Does not impact B.  Minimal C.  Average D.  To a large extent

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Evolution of employee surveys

Satisfaction How satisfied are employees with their work and their organisation?

Motivation To what extent are employees motivated to contribute to the success of their organisation?

Engagement To what extent do employees behave, act, contribute to the success of their organisation?

Performance

To what extent does engagement impact an organisation’s performance and are these inter-related?

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Understanding the relationship between engagement and economics

Economic forces

Company decisions

Company performance

Employee Engagement & Performance

Macro-economic impact

Micro-economic impact

Behavioural-economic impact

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Engagement is continuously moving

Global Engagement Results

Source: Aon Hewitt database

Middle East Engagement Results 2013

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The top drivers of employee engagement

Global Middle East

Drivers 2012 2013 2012 2013

Career Opportunities 1 1 1 1

Managing Performance 2

Organization Reputation 2 3

Pay 4 5 3

Communication 5

Recognition 3 4 4

Brand Alignment 5 2 2

People/ HR Practices 4 3 5

Source: Aon Hewitt database

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•  Both made a 15% headcount reduction

•  Both started with over 80% employee engagement

2 high performing clients in the technology sector

Economic forces explain why organisations take decisions Organisations determine how decisions are taken

Organization 1 Engagement dropped 30% In Organisation 1 and the culture changed from high performing, collaborative and energised to toxic, distrustful and self-protective.

Organization 2

Performance remained high in Organisation 2 and

engagement increased by 8% & Customer NPS remained high

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Are you linking engagement to business results?

A.  Yes B.  No C.  We do not measure engagement

11 Source: Aon Hewitt’s 2014 Trends in Global Engagement

Organisations with high employee engagement deliver better results

Sales Growth Operating Margin

Incremental Business Impact vs. Average Company (% Pt Difference from Average)

Bottom Quartile Engagement

Top Quartile Engagement

Best Employers

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Business Case: Engagement can help increase market share

Our work with a beverage company’s customer-facing operations found a significant difference in market share across high- and low-engagement locations.

Mean market share of low engagement locations

High engagement locations added an average of 9.1% to

market share Source: Aon Hewitt Employee Research Database 2013

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Business Case: Customer satisfaction is directly linked

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5 -7 -21

-­‐30

-­‐20

-­‐10

0

10

20

30

40

a b

Customer Net Promoter Scores

Global provider of Government and Commercial outsourcing services >100,000 employees across Europe, North America and APAC.

Source: Serco and Aon Hewitt. As published in “Nailing the evidence” University of Bath School of Management

High Employee Engagement

(65%)

Opportunity Employee Engagement

(45-65%) Risk

Employee Engagement

(30-44%) Destructive Employee

Engagement (<30%)

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Engagement matters, how do companies make Engagement happen? The Engagement Outliers

Moderate Zone

Bottom Quartile

TSR = 50% Below Average

TSR = At Par with Average

Top Quartile

TSR = 50% Above Average

Global Average 61%

Q1 46%

Q3 72%

Global Best Employer Average 78%

100 0Source: Aon Hewitt’s Employee Research Database Rolling average 2008-2013

+2% pts

+/-5% pts

Average change in engagement

Inner quartile change in engagement

+9% pts

14%+ pts

Average increase in engagement for improving organization Outlier engagement improvement

TSR= Total Shareholder Return

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Engagement is a tool for positive change!

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Success is about mobilising everyone!

CEO

Leadership

Regional Leadership

Country Leadership

Managers / Business Units

Employees

WHAT?

WHY?

HOW?

-­‐  17  -­‐  

Importance Relative statistical impact on engagement outcomes

Effectiveness Percent population with positive perceptions

Probability of Movement Distance from norm (adjusted to appropriate population)

Triangulate Engagement Priorities

Category Level Driver Analysis

It’s critical to identify what matters

-­‐  18  -­‐  

• Global information services company providing information and consulting services to the financial services industry; approximately 4,500 employees

•  Improve Engagement levels by focusing on key driver areas consistently and strategically

• Reduce employee turnover and redefine employee brand

Mandate

Engagement increase of 15 points (from 48% to 63%)

between September 2011 and May 2013

• Employee engagement research •  Identified key drivers of Engagement (Career

Opportunities, Change Management, Communication, and Performance Management) to focus on

• Conducted one census survey and one pulse survey

Deliverables

Benefits

Case study: Making Engagement Happen

Increased favorable perceptions of senior leadership, career

development, communications, and internal brand

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Some best practices for the “after survey” process

Consider Engagement as an opportunity for dialogue

Communicate results – quickly, transparently, openly

Open dialogue with all employees – be open to feedback

Identify and confirm priorities

Develop actions – at all levels, together

Do few things – do them well

Communicate all year round – “you said, we did!”

…

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Acting on employee feedback makes a real difference.

Source: Aon Hewitt Employee Research Database

Engagement  Score  

Difference  from  previous  year's  engagement  score  

No  planning  session   Planning  session  &  ac;ons  taken  

76%  

31%  39%  

-­‐6%  -­‐20%  

-­‐10%  

0%  

10%  

20%  

30%  

40%  

50%  

60%  

70%  

80%  

90%  

100%  %  Engaged

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KNOWLEDGE SHARING AND DISCUSSIONS

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Moving forward…Topics you would like to discuss at future events

A.  Salary Increase Results

B.  Measuring HR success C.  Enabling effective workforce planning

D.  Reflecting economic growth impact on organization structures E.  New means of talent acquisition to accommodate regional turnover and forecasted growth

F.  Enabling middle management to become tomorrow leaders

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What’s next

•  Insights Series: HR challenges in Family Owned Businesses

•  Tawasul LinkedIn Group

•  2015 - Newsletter with a series of webcasts

•  Series of Insights: Making Engagement Happen

Aon Hewitt Contact Details: Astik Ranade M:+971 50 653 8621 email: astik.ranade@aonhewitt.com

Olivier Hamelle Email: olivier.hamelle@aonhewitt.com

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Copyright © 2014 Aon Hewitt Limited. All rights reserved. Aon Hewitt Limited, 8 Devonshire Square London EC2M 4PL Registered in England & Wales No. 4396810 To protect the confidential and proprietary information included in this material, it may not be disclosed or provided to any third parties without the prior written consent of Aon Hewitt Limited. Aon Hewitt Limited does not accept or assume any responsibility for any consequences arising from any person, other than the intended recipient, using or relying on this material. Authorised and regulated by the Financial Conduct Authority.