September 2011

Managers – a critical link in employee engagement

2

We continue to live in uncertain times……

15%

37%

46%

25%

32%

50%

29%

53%

46%

40%

30%

40%34%35%

24%26%

31%28%

30% 31% 31%30%31%

41%

46%

38%

0%

10%

20%

30%

40%

50%

60%

Histo

rical

Tre

nd

July

-Sep

08

Oct

-Dec

08

Jan-M

ar 09

Apr-Jun 0

9

July

-Sep

09

Oct

-Dec

09

Jan-M

ar 10

Apr-Jun10

Jul-S

ep10

Oct

-Dec

10

Jan-M

ar11

Apr-Jun11

Decrease Increase

Percent of Organisations with an Increase or Decrease in Engagement

Source: Aon Hewitt‘s Global Employee Engagement Database

3

Managers definitely have a role to play

“The line manager is the lens through which I see the company and the company sees me.”

Chris Bones (Engaging for Success 2009)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Providingsupport tosucceed

Giving valuablefeedback

Addressingunder-

performance

Listening to andimplementing my

ideas

Best Employer

The Rest

% of employees with strong

positive perceptions of

managers…

4

But they are under pressure

Market uncertainty

Customer confidence

Mergers & acquisitions

Regulatory changes

Influencing consequence

s

Line Manager

Making sense of corporate messages

5

Digging further into the manager experience……

>700 managers across Europe

All functions (except HR)

Approx 40% are managing more than 20 people

6

Some key findings

Managers are more likely to act on engagement when:

They themselves are engaged!

They’ve seen the impact for themselves

They get support

and encouragement

They are clear about what is

expected of them

7

Engaged managers are more likely to take action

Source: Aon Hewitt European Manager Survey 2011

27%

52%

63%

0%

10%

20%

30%

40%

50%

60%

70%

I did not review the results

I reviewed the results I reviewed the results and took action

% of engaged

managers

8

How engaged are your managers?

50%

45%

68%69%

66%

53%

60%62%

59%

55%

50%50%

40%

45%

50%

55%

60%

65%

70%

2008 2009 2010 2011

Executives/Senior Managers Middle Managers Front-line Employees

Engagement levels by job type

Source: Aon Hewitt‘s Global Employee Engagement Database

9

What’s needed to engage managers today?

20081.Career opportunities2.Recognition3.Effective work practices4.Inspiring leadership5.Fair pay

20091.Career opportunities2.Fair pay3.Inspiring leadership4.Effective work practices5.Recognition

20101.People/HR practices2.Career opportunities3.Organisation reputation4.Innovation is supported5.Communication

20111.Delivery on promises2.Effective work practices3.Innovation is supported4.Fair pay5.Career opportunities

2008 2009 2010 2011

10

Seeing is Believing Case Study: Team Engagement and Customer Promoters

60%

37%40%

10%

0%

10%

20%

30%

40%

50%

60%

% Promoters NPS

Teams in Aon Hewitt High Performance Zone for Engagement

Teams outside of the Aon Hewitt High Performance Zone for Engagement

11

Clear expectations make a difference

45%

75%

0%

10%

20%

30%

40%

50%

60%

70%

80%

I have not been set clearexpectations

I have been set clearexpectations

% of managers

taking action

12

DNA of an engaging manager

• is tuned-in to people

• is an effective performance coach

• empowers people to grow

• matches strengths to opportunities

• promotes two-way communication

• does what they say they’re going to do

• builds team spirit

• is hands-on with their teams

• is resilient

A truly engaging manager ..

13

Clear accountability is needed too!

17%

35%

47%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Change in EngagementScore

Implementation of ActionPlans

Both

% of managers

14

Support from HR is essential

38%

75%

0%

10%

20%

30%

40%

50%

60%

70%

80%

I have not been given sufficientsupport from HR

I have been given sufficientsupport from HR

% of managers

taking action

15

Senior leaders need to be role models

44%

73%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Senior leadership does not seta positive example

Senior leadership sets apositive example

% of managers

taking action

16

Some practical advice

• Focus on the engagement priorities for your managers

• Look to establish the links between engagement and team performance

• Clarify what engaging manager DNA looks like in your organisation and make this explicit

• Include engagement into manager training and induction programs

• Set-up forums and support networks

Nicole ToorenaarTel: 020 430 5027nicole.toorenaar@aonhewitt.com