best employers study 2016 - aon hewitt · 2016-12-01 · 3 est mployers tudy 2016 we are proud to...

1Best Employers Study 2016

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Country Report: India

Best Employers Study 2016

1 Best Employers Study 2016

Table of Contents

Foreword

About the Best Employers Study

India Best Employers 2016: Study Insights

• SectionI:High Employee Engagement

• SectionII:Compelling Employer Brand

• SectionIII:Effective Leadership

• SectionIV:High Performance Culture

• SectionV:Effective HR Function

Imagineering the Future: The Journey to Being a Best Employer


Foreword


We are proud to present the ninth edition of Aon Hewitt’s flagship study in Asia: Best Employers India 2016.

Through our research, we know that high employee engagement not only delivers greater shareholder value, but it also reduces staff turnover and improves customer satisfaction. Aon Hewitt began the Best Employers research in Asia in 2001 to provide insights into how organizations can create real competitive advantage through people and explore the contours of what makes a workplace of choice.

Our 16 years of Best Employers studies in Asia, backed with engagement research of over 6,400 global organizations

(including 2,300 in the region) supports the striking evidence: having a high level of Employee Engagement, a Compelling Employer Brand, Effective Leadership and a High Performance Culture translates into a committed and productive workforce that delivers stronger business results.

This report provides a deep-dive into our observations, supporting practices and outcome on the Best Employers construct in India.

We know that the journey to becoming a Best Employer is a unique experience for each organization, and we hope you continue successfully on this journey.

Foreword

Best Employers 2016 Asia PacificCovers 700,000 employee opinions (representative of a total employment in excess of 2 million) across 570 organizations from 12 countries• AonHewitt’spremierstudyforbuildingbetterplacesfor

work since 2001

• ExpansiveinsightsacrosstheAsiaPacificregion

• ANZ,ChinaandIndiacontribute~50%totheparticipation

• Employeeopinioncoveragehasdoubledsince2011

• Participatingcompaniescrossed500+inthe 2013 edition

No.ofParticipatingEmployees(‘000)

2016

700

No.ofParticipatingOrganizations

Definitions

570

2011 2016

+16%

490

Mkt. Average Scores – Average scores of all organizations in the India market in2015-16.Thisincludesnon-BestEmployers participants as well

Best Employer Scores – Average scores of all Best Employers in the Indiamarketin2015-16

Participant Average Scores – Average scores of only Best Employers participants in the India marketin2015-16

Insights


High Employee Engagement

Compelling Employer Brand

Effective Leadership

High Performance Culture

The employees consistently speak positively about the organization to co-workers, potential employees and customers

The organization is well-known and has a good reputation in the market

Leaders show clear and compelling future vision to the members of the organization

Managers set clear goals and expectations, and employees know how they can best contribute to business

The employees have an intense desire to be a member of the organization

Employees are proud to be part of the organization, and can explain what makes working here different from other organizations

Employees experience that leaders are appropriately visible and accessible; treat them as organization’s most valued asset

Rewards and recognition for high performance are clearly understood and transparent to employees

The employees exert extra effort and engage in work that contributes to business success

Employees believe that the organization delivers on the promises it makes to employees

Employees trust their senior leaders to be open and honest; and believe they make good business decisions to drive the organization to success

Organization prepares for future challenges by offering interesting careers for high potential employees and learning opportunities

Say

Reputation

Future Vision

Internal Brand

Reward

Credibility

Business Excellence

Growth

Stay Strive

Best Employers 2016 Asia PacificStudy construct focuses on 4 master and 12 sub indices

Valuing People

Accountability & Trust


Best Employers 2016 India The jury

From Right to LeftProf. Rajen Gupta: Professor at MDI | Mr. Raman Roy: BPO Industry Pioneer and Chairman & Chief, Quattro | Mr. Shiv Shivakumar: PepsiCo India, CEO | Ms. Renu Sud Karnad: Managing Director, HDFC Limited | Dr. Santrupt Misra: CEO, Carbon Business and Director, Group HR, Aditya Birla Group

Aon Hewitt Study Team and Partner:Mr. Tarandeep Singh: Partner, Talent & Performance Consulting, Aon Hewitt India | Mr. Annurag Batra: Chairman and Editor-in-Chief, BW Businessworld | Ms. Yamini Maheshwari Sapra: Senior Consultant & India Leader – Aon Best Employers Study

As we talk about businesses being capable and we talk about Make in India, it is important that all organizations learn to leverage the best out of their Human Resources.

Dr. Santrupt MisraCEO, Carbon Business and Director, Group HR, Aditya Birla Group

Happy to see that this year other than the IT, ITeS, BFSIs, a lot of Mining, and Manufacturing companies are coming in and that’s where India’s growth will pick up.

Ms. Renu Sud KarnadManaging Director, HDFC Limited

I was struck by the following 4 innovations that the companies are doing in the area of 1-Recruitment, 2-Development of Leadership as Capability, 3-Identifying top 10 or 100 managers in the companies anddesign-specificinputsfortheircapabilitiessothattheyfitintoseniorroles,4-Diversity,thoughthere’sstill a long way to go in this area.

Mr. Shiv ShivakumarPepsiCo India, CEO


Best Employers 2016 IndiaThe winners

Best Employers 2016 (in alphabetical order)

BajajFinanceLtd.

AGS Health Pvt. Ltd.

AAPC India Hotel

Management Pvt. Ltd.

BectonDickinsonIndia Pvt. Ltd.

Godrej Consumer ProductsLtd.

METRO Cash and Carry India

Pvt. Ltd.

Bharti Infratel Ltd.

Bajaj Allianz GeneralInsurance

Co. Ltd.

DHLExpressIndia Pvt. Ltd.

Lupin Ltd.

HewlettPackardEnterprise Global

Soft Pvt. Ltd.

RelianceCapital Asset Management

SKS Microfinance

Ltd.

Tata AIA Life InsuranceCompany

WNS Global ServicePvt.

Ltd.

Starwood Hotels &

Resorts India Pvt. Ltd.

Whirlpool of India Ltd.

YASH Technologies

Pvt. Ltd.

Marriott International India (Global

Program)

TeleperformanceIndia (Global

Program)

Tata Communications

Ltd.

Saint-Gobain India Pvt. Ltd.- GyprocBusiness

TataAutocompSystems Ltd.

(TACO)

The Oberoi Group

BlueDartExpressLtd.

InterGlobe Aviation Ltd.

(IndiGo)

TataChemicalsLtd.


It is MNCs that make it to Best Employers

of the Best Employer winners have been Indian companies

Only large organizations can become Best Employers

An organization needs to have a rich history to make it as a Best Employer

Had been in existence <10 years when they became a Best Employer

Had less than2,000 employees

Best Employers are service-oriented firms

Manufacturing companies that were Best Employers

51%

30%

20%

43%

Best Employers 2016 India The winners – myth v/s fact


2016 India Trends


India: Overview & Highlights9 out of 10 participants projecting fast/steady growth

• IndiacontinuestoleadtheworldGDPgrowth(aspertheIMFprojectionsofApril2016,growthinIndiaisprojectedtonotchupto7.5%in2016-17)

• 9outof10participantsprojectingfast/steadygrowth

• 7outof10businessesforeseeanimprovedbusinessoutlookin2016-17

• 7outof10businesseswillincreasehiringin2016-17

Getting Back on Track (GDP Trends)

India

2006201

2201

8

Developed Economies

Emerging Economies

Source: IMF (April 2016 projections), Aon Hewitt India SIS 2016, Aon Hewitt India Hiring Study 2016

A Positive Business and Hiring Outlook Indicates an All Round Sentiment of Cautious Optimism

HiringForecast

55%

12%

1%

14%

18%

Improving

Stabilizing

Declining

SignificantIncrease

Somewhat Increase

Neutral

Somewhat Decrease

SignificantDecrease

BusinessOutlook

67%

6%

27%


How do Best Employers manage talent risks?

Rising salaries continues to be the biggest talent risk in India. According to the latest Aon Hewitt Salary IncreaseSurvey(SIS),theincreaseinsalaryforkeytalentisexpectedtobeatanaverageof14%to16%.

India: Overview & HighlightsTalent risks and emerging talent imperatives

Rising salaries

Critical skills shortage

Inadequate leadership pipeline

Low employee productivity

Inability to attract talent

CONCERN ZONE

CAUTION ZONE

Likely

Med

ium

Poor labor relations

Capability of current leaders

Poor external talent selection

Inability to retain employees

Near CertainLikelihoodofTalentRisks

Impac

tofTalen

tRisksonBusiness

Hig

h

On an average only 33% of the organizations feel they are prepared to tackle these risks. Best Employers leverage the 4 key pillars as defined earlier, to derisk themselves against the talent risks.

Emer

ging

Tal

ent I

mpe

rativ

es


Rising talent costs

Critical skills shortage

Inability to retain employees

Inadequate leadership pipeline

Low employee productivity


Effective Leadership High Performance Culture

1

2

3

4

5

Key Talent Risks


2016 Best Employers Insights


India: Overview & HighlightsFrom 2013 to 2016, Best Employers maintain their lead across all the study indices

High Employee Engagement Compelling Employer Brand

Effective Leadership High Performance Culture

*Growth in pre-tax income over FY2014

Best Employers Gap Shift 2013-16 Mkt. Average Scores Best Employer Scores

1%

4% 1%

4%

66%79%

79%87%

• BestEmployersachieve38% higher growth in income* than market average

• BestEmployersfilled30% more openings internally compared to the participant average

• PositiveshiftsacrossalltheBestEmployersindices,but the widest shifts have been in the Effective Leadership and the Employer Brand pillars

Best Employers delivered sustained growth ahead of macroeconomic indicators

70%

81%

68%

77%


100125

136

187 198

372

409

shareholder return

2.6X

157172

12712398

121100

2010

IndexedGrowthoftheNSE (Jan 2010-2016)

Source: Best Employers India Study 2016

Indexed Growth of Best Employer Stock Prices Calculated at Average Stock Price Growth YoY (January 2010-January 2016)

To qualify for the analysis, a Best Employer should have beeen recognized in 2 of the last5studies

2011 2012 2013 2014 2015 2016

India: Overview & HighlightsHigh business performance is a given for Best Employers

Inadditiontoregisteringasignificantleadonaverageshareholderreturns,BestEmployersalso:

• Stayedaheadduringtoughtimes;and

• Leverage“better”timestocreatedisproportionatedistancewiththeothersonNSE

Best Employers register 2.6X shareholder returns compared to the rest of the market


Section 1: High Employee Engagement


High Employee EngagementBest Employers register 9% points higher employee engagement

• OverallengagementforBestEmployersshowsa1%pointincreaseover2013,eventhoughthemarkethasimprovedby3%pointsoverthe2013scores

• The‘Say’and‘Stay’pillarscoresaremarginallylowerforBestEmployersincomparisonto2013,however,theBestEmployershaveimprovedon‘Strive’by5%pointssince2013

SAY: The employees consistently speak positively about the organization to co-workers, potential employees and customers

STAY: The employees have an intense desire to be a member of the organization

STRIVE: The employees exert extra effort and engage in work that contributes to business success

Employee Engagement Index 77%68%

1%

-2%

-1%

5%

77% 84%

59% 67%

73% 81%


• “What’sinitforme”isgettingstrongerbytheyear

• EmployeesarewillingtostrivehardinaBestEmployerenvironment,giventhestrongleadershipandcompelling brand connect

• However,thereisagrowingneedtocreatearewardingcultureasaretentionmeasure


High Employee EngagementGap between Best Employers and market engagement scores has reduced substantially in this year

Engagement Scores Over the Last 16 Years

The gap between the engagement scores has reduced this year indicating that the market is slowly, but surely making efforts towards improving engagement

Best Employers Sustenance Drivers

78%76%

83%

88%

77%76%

83%

77%

68%66%65%

67%71%

67%

62%66%

2003 2006 2013 2016

Mkt. Average Scores Best Employer Scores

External collaboration with broader ecosystem has increasingly become a desired capability for Best Employers and the market

What helps Best Employers sustain their lead?

Health & Well-being

Supervision

Collaboration

84% 89%

72% 81%

72% 80%


High Employee EngagementCareer opportunities and rewards & recognition continue to be top 2 engagement drivers

Top Engagement Drivers in India - Ranked by Demographic

Engagement Drivers in India

Rank 2016 (Mkt. Avg.)

Best Employers

2016GenY Women Leadership Sr.

Mgmt. Mid.

Mgmt.

Rewards & Recognition 1 1 1 1 1 4 1

Career Opportunities 2 2 2 2 1 2

Brand 3 3 4 4 1 3

Senior Leadership 4 4 5 2

Work Tasks 4 4 4 3

Trust in Action 4 5

Collaboration 2 5 4

Work-life Balance 3 4

Enabling Infrastructure 1

Learning & Development 5

Whilethetop2engagementdriversremainthesame,variationsacrossthetop3-5aredefiningexperiences.BestEmployersmanagethismulti-dimensionalcomplexitythroughspecificprogramsthataddressthedifferentneedsofdifferent employee segments

BestEmployersmanagemulti-dimensionalcomplexitythroughspecificprogramsthataddressdifferentneeds of employee segments

• Diversemixoffocusareasforvarieddemographicprofile.Interestingly,work-lifebalanceiskeyforleadership,andsenior management has indicated need for better enabling infrastructure

• Collaborationiskeyacrossalllevelsofmanagement


Engagement Levels by Tenure Within the Organization

High Employee EngagementBest Employers sustain consistent engagement levels across employee segments

Best Employers create a consistent employee experience across tenure groups

6 months-1 year

80%

76%

< 6 months 1-2 years

72%

67%

75%

65%

76%

66%

80%

73%

2-10 years 10+ years


• BestEmployersmaintainaconsistentengagementlevelacrossthetenureofanemployee;theyoutperformthemarket specially after employees are sufficiently tenured

• Thistenuredurationiscriticalasitlaysfoundationsofacareerforanemployeewithintheorganization


High Employee EngagementBest Employers work to sustain consistent engagement levels across employee segments

Engagement Levels across Generations

Best Employers engage GenY through differentiated and focused talent programs

Mkt. Average Scores Best Employer Scores Participant Average Scores

57% of GenY feel their future career opportunities at their organization’s look good

53% of GenY feel they are paid fairly for the contributions they make to the organization’s success

• GenYscoresarethelowestfortheBestEmployersaswellasthemarket

• However,BestEmployersshow11%pointshigherEngagementforGenYat76%whencomparedtothemarketat65%

Best Employers v/s Market

Specifictalentprograms*targetedtowardsGenY

*GodrejcasestudyonGenYspecificinitiativesonPage2355% 63%

84%80%

Baby Boomers GenX: 1965-1978

GenY: 1979-1990

76%72%

65%

76%


Best Employer Scores Participant Average Scores

High Employee EngagementMeasuring engagement is the norm; acting on opinions is how the Best Employers drive results

Practice Prevalence

Measure engagement on a regular basis (at least annually)

Communication of engagement results is followed up with team or focus group meetings that lead to a structured action plan

Communication of engagement results is followed up with regular employee communication on action plans

People manager and senior leaders own implementation of action plans more than HR function

Progress on action plans is reported to employees

Engagement is linked to manager’s performance scorecard

97% 100%

92%

71% 79%

64% 75%

75%

83%

Best Employers hold leaders and managers equally accountable for employee engagement

62%

69%

83%


The Best Employers CircleHigh Employee Engagement

Lessons from the trenches

McThai

Operating in the food and beverage industry as part of the McDonald’s brand, McThai Co. Ltd. is a fast foodrestaurantthatwasfoundedin1985andhas8,000employees.Thailand

The Challenge

Toattract400+futureleaders to the company each year by hiring and engaging external talent while at the same boosting engagement through a variable pay program.

The Approach

McThai annually reviews and develops a 3-1-Q plan (3 year strategic outlook – 1 year target – quarterly execution), where goals and targets of each employee are tied to an annual performance bonus scheme and a variable pay program.

Engagement Score –

92%

NetPromoter Score –

89%

The Outcome



The Best Employers CircleLessons from the trenches

Starwood Hotels & Resorts

Starwood Hotels & Resorts Worldwide, Inc. is an international hotel and leisure company. It is a fully integrated owner, operator and franchisor of hotels, resorts and residences with internationally renowned brandssuchasTheSt.Regis,TheLuxuryCollection,W,WestinandLeMeridien,operating39hotelsinIndia with 3,400 employees.

India

The Challenge

How to double manpower in order to achieve high growth (100 hotels in India by 2015)inthefaceofpaucity of talent.

The Approach

• Developedaholisticintegrated talent management program ‘Starwood Careers’

• Talent development was organized into 3 distinct career tracks: the executive, the mid-management and the entry-level tracks

• Career paths mapped for each track by profilingthecriticaljob responsibilities and competencies required for each role. This helped build transparency about the competencies required to grow in the organization

The Outcome

• Attritiondroppedwellbelowthe market average to less than10%in2012-13

• 80%ofseniormanagementand90%ofmiddlemanagement openings were filledinternally

• Employeeperceptionon“Starwoodhelpsmereachmypotential”inaninternalsurveyincreasedfrom75%in2009to86%in2013


Godrej

The Godrej Group is an Indian conglomerate headquartered in Mumbai, India, managed and largely ownedbytheGodrejfamily.ItwasfoundedbyArdeshirGodrejandPirojshaBurjorjiGodrejin1897,and operates in sectors as diverse as real estate, consumer products, industrial engineering, appliances, furniture, security and agricultural products.

The Challenge

How to create a campus initiative to identify some of the most passionate and creative individuals and the kind that would be the next generation of Godrej employees?

The Approach

• Godrej LOUD was created with the objective of building Godrej brand at campuses

• MediatieupwithCNBCTV18 for a 7-part series on GodrejLOUD;introducedaLOUD anthem contest where shortlisted student bands were invited to perform with Indian Ocean

• Theprogramintroduceda Campus Dream competition – students were invited to share their dreams for their campus and Godrej sponsored (`5lacs)for the winning dream

• GodrejintroducedaLOUD journal for the students as a toolkit to help them discover themselves and their dreams

The Outcome

• ThisinitiativehelpedGodrejsee substantial improvement in their campus connect interest levels, really helping Godrej re-brand themselves as an employer of choice for GenY

• Thisyear,Godrejreceivedover 2,300 applications, a 500%increasefrom2012,the year LOUD was launched

• In2014,Godrejalsoreceivedrequests from B-schools, other than the ones that they visited, to allow participation in the program


India

GenY Specific Initiatives


Section 2: Compelling Employer Brand


Compelling Employer BrandBest Employers score 8% points higher than the market on the employer brand index• Marketisclosingthegaponthe“CompellingEmployerBrand”indexfrom12%in2013comparedto8%now

• BestEmployershaveshownhealthyimprovementacrossallsubindicesascomparedto2013withthemaximummovementonthecredibilitysub-index(7%)

REPUTATION: The organization is well-known and has a good reputation in the market

INTERNAL BRAND: Employees are proud to be part of the organization, and can explain what makes working here different from other organizations

CREDIBILITY: Employees believe that the organization delivers on its promises it makes to employees

Employer Brand Index 87%79%

4%

2%

3%

76% 85%

81% 87%

74% 82%


• BestEmployersdisplayedrenewedfocusonbuildingtheirbranddifferentiator

• BestEmployersgobeyondwordstodelivertheirbrandpromisethroughpractices,policiesandorganizational culture

7%


As Employee Value Proposition (EVP) relevance and importance increases, there is increasing pressure for organizations to deliver on their promises

Compelling Employer BrandBest Employers lay focus on effectiveness measurement of the defined brand

The Top 6 EVP Effectiveness Measures

Attrition Statistics Rank

Numberofemployeereferrals 1

Attrition statistics 2

Length of service statistics 2

Employee satisfaction on EVP driver (through employee surveys) 2

Employee feedback through exit interviews 5

Cost of recruitment statistics 6

Percentage of offers accepted 6

Numberofvisitstoorganization’scareersite 6

The outcome of practices and measuring effectiveness is the opinion… Does the organization keep the promises it makes?

84%

73%

2009 2011 2013

66%

62%63%

72%

65%

76%

2016



Compelling Employer BrandBest Employers clearly define their ‘value proposition’ and effectively ‘walk-the-talk’

I can clearly explain what makes working here different from

other organizations

75%

60%

77%

64%

84%

75%

This organization offers excellent career opportunities to employees

who are strong performers

There is effective cooperation betweendifferentgroups/

departments in the organization

This organization offers exciting careers and provides great learning opportunities

Careers and Collaboration are among top EVP differentiators among Best Employers

In this organization there is a great sense of teamwork and camaraderie amongstco-workers;employeesarechallengedandempowered

Practice Prevalence: Employer Brand

Employee Experience

We have formal documentation, implemented the EVP in all HR policies and programs, and we measure the effectiveness of our EVP regularly

DefininganEVPisnotenough,reinforcingitthroughcommunication,deliveryandcontentis

Best Employer ScoresMkt. Average Scores Participant Average Scores

19% 29%

36% 46%

22% 33%

• BestEmployersclearlydefine“what’sinitforme”foremployees

• Providinganempoweringenvironmentandclarityonindividualgrowthpaths,setsBestEmployersapart from the market



IndiGo

IndiGo commenced operations in August 2006, as a low-cost airline in a competitive and highly regulated Indian aviation space and today, is the largest airline in India with the highest market share and a fleet of 104 aircrafts.

India

The Challenge

To ensure employees truly live their brand promise and to extend the guiding principles of“ontime”,“courteousservice/hassle-free”and“lowfare”totheinternal customers.

The Approach

• Ensuringemployeeexperience, leadership’s vision and design of people programs, practices and policies are aligned to bring alive a customer grade experience for its employees across all touch points

• Introduced8typesof flying patterns and associated work contracts for pilots to ensure hassle free flexibility in their flying schedule

• Givespilotsanearningpotential compounded incentiveupto20%onthe average base pay

The Outcome

IndiGo was adjudged an Aon Best Employer and is considered one of the best companies to work for in the Indian aviation industry.



Reliance Capital

Reliance Capital Asset Management Limited (RCAM) is the asset manager of Reliance Mutual Fund (RMF) and subsidiary of Reliance Capital Limited (RCL). As a leading and fast-growing company in India,RCAMhas902employees,703ofwhomarehomegrowntalent.


India

The Challenge

To build a strong Employee Value Proposition (EVP) to enhance the internal employee experience, and develop an employer brand that strengthens RCAM’s credibility to attract, retain and groom high-quality future leaders.

The Approach

• RCAMintroducedaninnovative initiative of sourcing talent from diverse industries to promote learning and innovation

• Thesediverseindustriesarecarefullyidentifiedbasis the business challenge or opportunity at hand. For example, to penetrate India’s hinterland and rural markets, RCAM sourced a Chief Marketing Officer with an FMCG background

The Outcome

• 70%ofRCAM’stalentcomes from outside the AMC (Asset Management Company)industryand38%from outside BFSI (Banking, Financial Services, and Insurance)

• 90%ofCXOtalentisgrownin-house&75%ofnext-in-lineleaders are also developed in-house

• Employeeattritionrateisatalow5%



Section 3: Effective Leadership


Effective LeadershipBest Employers have an 11% higher effective leadership index than the market• TheoverallindexscorehasshownpositivemovementwithboththeBestEmployersandthemarketshowinga4%

and2%pointimprovementrespectivelyover2013scores

• TheBestEmployersregisterimprovementacrossallsubindiceswithasubstantial6%pointimprovementonthevaluing people sub index

FUTURE VISION: Leaders show clear and compelling future vision to the members of the organization

VALUING PEOPLE: Employees experience that leaders are appropriatelyvisibleandaccessible;treat them as organization’s most valued asset

BUSINESS EXCELLENCE : Employees trust their senior leaders to be open andhonest;andbelievetheymakegood business decisions

Effective Leadership Index 81%70%

4%

3%

6%

4%

68% 79%

69% 79%

70% 80%


• BestEmployersuseleaderstodriveculture,reinforceorganizationvaluesandcreateanengagingenvironment

• Leaderscreateastrongpersonalconnectwithemployeesandtherebyinstillastrongsenseofpurpose


Senior leadership engagement has dipped for Best Employers and remained steady for the market

Market is registering a positive upswing in employee opinion on Senior Leadership, and while Best Employers scores havedipped,theystillmaintainan11%pointslead


2007

82%

75%77%

79%

74%76% 76%

87%

80%

86%

93%

83%

2009 2011 2013 2015 2016

An engaged senior leadership is an effective leadership

Engagement Scores of Top Leadership

Employee Opinion Scores on the Leadership Pillar

2007

84%

67%

74%

68% 68%65%

70%

87%

77% 78%

84%81%

2009 2011 2013 2015 2016


TopleadershipinBestEmployersissignificantlymoreengaged,resultinginabetterperceptionoftheireffectiveness across the organization


Effective LeadershipBest Employers understand what engages leaders the best

Practice Prevalence

Increased access and interactions with senior executives/topmanagement(e.g.shadowing)

Formal process to identify and develop successors and successor list is regularly reviewed

Internal training (classroom-based)

External training (i.e. executive training courses)

External coaching

Rotational assignments (formal process to move leaders through a series of departments or regions)

Developmental assignments (job assignmentsmatchedtospecificdevelopment needs of leaders)

Prac

tices

ado

pted

for l

eade

rshi

p de

velo

pmen

t

40%

72%

38%

83%

81% 96%

76%

59%

83%

67%

60% 67%

64% 79%

Participant Average Scores Best Employer Scores

Coaching is just one of the ways for Best Employers to develop the leadership pipeline

Best Employers adopt multi-modal interventions to develop their leaders



Whirlpool of India Ltd.

The Whirlpool Corporation is an American multinational manufacturer and marketer of home appliances. WhirlpoolenteredIndiainthelate1980sasapartofitsglobalexpansionstrategy.Thecompanyownsthreestate-of-the-artmanufacturingfacilitiesatFaridabad,PondicherryandPune,andhas1,625fulltimeemployees.

India

The Challenge

To inculcate and ensure employees truly embrace leadership behaviors, Whirlpool worked towards ensuring the culture of the organization, and not a part of the culture, centered around leadership.

The Approach

The fundamental objective was to de-mystify leadership and make it a part of everyday lingo for all employees through several inventive methods:

• Designedanddevelopedmass customized learning content

• Createdchangechampionsto train employees on the leadership model

• Leadershipevangelismthrough the leadership team

• Employeesallowedtochartand select their personal leadership journeys

• Integratedleadershipmodelinto people processes

The Outcome

Their effective leadership index isat80%whichis7percentagepoints ahead of their industry benchmark.



Tata Communications Ltd.

Tata Communications Ltd. (TCL) is a global telecommunications company. As the sixth largest mobile service provider in India, TCL is renowned for its cutting-edge, one-of-a-kind innovation – including the world’sonly,wholly-ownedfiberringaroundtheworldandEthernetringservingtheMiddleEast.


India

The Challenge

TCL launched Develop MINTtocreateapipeline of business leaders for the future withahorizonof3-5years. Objectives include:

• Buildastrongbench-strength of business leaders for the future

• Enhancecapabilityof leaders who understand the business and have therightDNA

• Focusona‘Buildover Buy’ strategy for talent expansion

The Approach

• Afterarigorousselectionprocedure,30finalistswereselected. Development was based on the 70:20:10 learning model

• Anadvancedbusinessleadercompetency development training program was organized in Frankfurt, Germany. The CEO set expectations and extended support

• Candidateswereassigneda Group Coach who helped them create their IDPs,identifiedareasofdevelopment, identify the roles for the candidates over the next 3-6 years

The Outcome

• Themetricstomeasuresuccess have been divided into the following three categories: quality, cost and time

• Theprogramiscurrentlyunderway and the participants are undergoing theirfirstjobrotation



Section 4: High Performance Culture


High Performance CultureBest Employers have a 13% point lead on the high performance culture index• BestEmployersshowa1%increaseinoverallindexscoresover2013,however,themarkethasdippedby3%points

in comparison to 2013

• BoththemarketandBestEmployersregisteranoticeabledipintherewardsubindexwitha4%and7%pointrespective drop over 2013

ACCOUNTABILITY & TRUST Managers set clear goals and expectations, and employees know how they can best contribute to realize their business strategy

REWARD: Rewards & recognition for high performance are clearly understood and transparent to employees

GROWTH: The organization prepares for future challenges by offering interesting careers for high potential employees and learning opportunities for all employees

High Performance Index 79%66%

1%

1%

-4%

5%

74% 82%

59% 70%

70% 79%


• ManagerialcapabilitybuildinghasenabledBestEmployerstocreatetransparencyandtrust

• However,withtheadventofnew-ageindustries,oneneedsbalancedfocusonrewards&recognition too


Best Employers ensure appropriate recognition and differentiate rewards based on performance to push high performers further


Practice: We combine structured, formal recognition programs with manager-driven recognition

Practice: Keeping average performers as a benchmark, how much does the variable pay differ by performance?

Outcome: Employee opinion

46% 47%

2016

Employees 102

Top Leadership

Average Performers

132

128 53%

66%

60%

74%

145

100

18

21

100

Employees

Top Leadership

High Performers

Under Performers

Appropriate Recognition

Performance Impact on Pay

1915


Best Employers distinguishing and rewarding for performance


High Performance CultureManager development focus continued

Practice Prevalence: People Manager Development

People managers receive effective feedback on how their leadership style influences their team

We have a formal approach to improving people management skills

People managers get coached to provide career advice and to explain rewards successfully to their people


People managers are measured on their quality of people management and are rewarded for managing their people effectively

People managers’ performance ratings reflect their teams’ engagement levels

Prac

tices

to d

rive

Peo

ple

Man

ager

D

evel

opm

ent

93% 96%

59% 71%

78%

60%

79%

71%

55% 63%

Continued focus on managers assisted Best Employers on:

• Drivingaccountabilityofteamengagementthroughmanagers

• Creatingindividualdevelopmentplanstohelpthembecomeengagingleaders

Best Employers develop, coach, assess and reward their people managers to become engaging managers


High Performance CultureThe focus on outcomes

Practice Prevalence: Career Development

Employee Experience on Career Opportunities

81%72%75%

69%77%

67%

One-on-one coaching for employees on managing their careers

We have a formal career development framework

We have a campaign to communicate the framework to our employees

Structured succession planning

Assessment of behavioral capability

Opportunity of cross department assignments

Career planning portal (an online tool that helps managers and employees manage careers)

Career development goals integrated into performance management

Opportunity for internal and external learning programs

Prac

tices

to s

uppo

rt c

aree

r dev

elop

men

t

Technology adoption is low even for Best Employers in an increasing complex area of career opportunities

Best Employer ScoresMkt. Average Scores Participant Average Scores

60% 79%

57% 67%

64%

22%

71%

38%

50% 63%

59% 71%

64% 83%

55% 71%

67% 83%


Best Employers are far ahead of the market in planning, communicating and providing abundant career opportunities to their employees

There are sufficient opportunities within the organization for me to work

on assignments to gain new skills

Organization strongly supports the learning and development of its

employees

Organization offers excellent career opportunities to employees who

are strong performers



Bajaj Finance Ltd.

BajajFinanceisoneofthefewNBFCsinthecountrytobeawardedaratingofFAAA/StableforFixedDepositsandhaveanetworkofover115branchofficesthroughoutthecountry.Theyhavebeeninoperationfor29yearsandhaveaworkforceexceeding4,400fulltimeemployees.

India

The Challenge

To shift the onus of employee growth (up to a certain level) to lie with the employee. An employee can growth in their current role afteraspecifiedperiodof time provided they meetthedefinedsetofmetrics.

The Approach

• Theauto-promotionpolicyisa unique initiative to create a strong career progression program at Junior to Middle management levels on achievementofapre-definedset of performance metrics. The intent being:

- To grow in-house talent and

- Ensure job enrichment for an employee

• Thereviewperiodoftheauto-promotion policy is quarterly and promotions are automatically initiated basis tenure and performance

The Outcome

The success ratio of the Auto-promotion policy will be to ensurethatatleast70%ofemployees completing the required tenure get promoted in the system.




DHL India Ltd.

DHL is present in over 220 countries and territories across the globe, making it the most international company. DHL India has been operation for 37 years and has a workforce exceeding 1100 employees.India

The Challenge

DHL targeted to achieve the following 3 bottom lines, i.e. to be an:

• Investorofchoice

• Providerofchoice

• Employerofchoice

The Approach

• Eachemployeesperformanceappraisal carries weighted linkage to the 3 bottom lines

• Allemployeesirrespectiveof their grades have the following2/3collaborativetargets:

- EBIT

- Transit time

- Active leadership

• Theweightageforcollaborative target is higher for management employees as they are decision-makers and their variable component can goashighas70%

The Outcome

Linking Performance Pay with “3bottomlines”hasshowntremendous results:

• Transittimeover96%(provider of choice)

• ActiveLeadershipscoresimprovedby16%inlast3years (employer of choice)

• CustomerPromisescoresimprovedby8%inlast3yearsandcurrentlyat95%(provider of choice)



Section 5: Effective HR Function


An Effective HR FunctionThe Best Employers’ business expectations

What the CEOs of winner organizations expect from Best Employers?

An Effective HR FunctionThe Best Employers’ business expectations

R.S. Subramanian, CEO, DHL

HR partners with the key stakeholders to ensure that people

strategy and policies are aligned to the

business requirements and in line with our ambition to be the employer of choice. HR further helps the

organization develop key measures that track the people dimension

that impact the business and develop actions to ensure high quality work environment and ethic. HR helps the business leaders

to look ahead and stay people focused to

ensure that decisions are taken with the people aspect in mind and the organization is future

ready. HR is the voice of the employee in the

leadership team and help ensure that talent and skill development

remains a key focus area at all times.

Vikram Oberoi, CEO, Oberoi Hotels

The competitive advantage of the

group stems from our single minded focus on creating memorable experiences for our

guests. To do this, the HR function drives our

ability to attract the best talent, provide

them with learning and growth in an enabling

environment that supports and empowers them to do their best for

our guests…

Aditya Ghosh, CEO, IndiGo

HR is a very important and

strategic function in my organization.

We are obsessed with our own people and HR is a key partner to implement our

culture. A lot of what our customers see of

us and our product is a reflection of who we are

internally. Therefore, HR is a key partner for our leaders to drive excellence.

Arvind Uppal, CEO, Whirlpool

Increasingly, the success of businesses

depends on the ability of its employees to

execute their business strategy. For us, the

ability of our employees to enable business

transformation is termed as‘PeopleExcellence’.Enabling, nurturing

and sustaining people excellence and thereby driving business strategy is where our HR function

plays a pivotal role.


An Effective HR Function


AreasofstrengthforBestEmployers(%reflectsselectionintheTop3)

64%

75%

38%

26% 26%

38%

Employee Engagement &

Motivation

Learning & Development

Defining/Aligning

Organization Culture

22%

38%42%

50%

Employer Branding HiPo Development

Succession Planning

Actualspendonpeoplepracticesinitiatives(annualHRbudget)expressedasa%ofannualrevenuesin2015-16

3.0%

2016

1.0%

DataRepresentation:Actualspendonpeoplepracticesinitiatives(annualHRbudget)expressedasa%ofannualrevenuesin2015-16Source: Best Employers India Study 2016

BestEmployersspend1/3rdofmarketspendonpeoplepractices/initiatives

Best Employers don’t spend more on HR. They focus on doing the right things and doing them well


An Effective HR Function

The HR strategy was developed in partnership with multiple business stakeholders

The CEO is measured based on organization’s HR KPIs (e.g. employee engagement, attrition)

HR collaborates with the business to identify HR KPIs and then monitor, assess and report performance against those HR KPIs

Our organization participated in an HR benchmarking process in the last 2 years

Prac

tice

Prev

alen

ce

Design new people programs

Build a differentiated EVP

Include in our HR reporting

Set our HR KPIs

Validate practices

Best Employers go beyond articulation of HR strategy. Their HR co-owns the outcomes and metrics

The

use

of b

ench

mar

k da

ta a

nd

insi

ghts

76% 79%

74% 79%

71% 79%

60% 71%

83% 88%

43% 63%

34% 46%


47% 58%

71% 79%

Best Employers don’t just articulate HR strategy, they ensure accountability and governance around it


What’s in Store for the Future


Best Employers: Delivering on the Now, Imagineering for What’s to ComeIs India Inc. Future Ready?Businessestodayareexperiencingbreakthroughsfasterthanever;lifecyclesforinnovationareshortening,theEastisgradually becoming the new West and more importantly, technology is the new fuel disrupting and enabling businesses. Leadingfirmsareleavingbehindthetraditionalmodelsofmarketaccess;insteadtheyarecreatingnewmarketsandcontrolling consumer experience like never before.

Withcloseto7connecteddevicesperhumanbeingonearthby2020andtheaveragehumanspendingcloseto2.5hoursonmobiledevicessurfingdaily,onedoesnotreallyneedtounderscorethepaceofchangebothsubliminalandactual.Besides increasing connectedness, mobility and social media are also making organizations transparent to the outside world. Current and prospective workforce is impacted by an employer’s stated purpose of existence (or rather, lack of it), more so when income inequalities are rising and awareness for social issues are high.

The purpose of this report is to identify emerging trends around the below 3 shifts and visualize a journey that prepares organizations for the future.

Megatrends Impacting the Business and the Workplace

• Businessesareexperiencingbreakthroughsfasterthanever

• Natureofworkisshiftingdimensionsfasterthanever

• Connectednessisredefiningtalentexpectationsfasterthanever

Business

• Disruptionbecomesanorm

• Changingsourcesofcompetitive advantage

• Technologyandinternetofeverything

• Interconnectedtradeandtalent flows

Workforce

• Demographicandpsychographic shifts

• Consumermindset

• Socialconnectedness

• Highlyinformed

• Lifelonglearner


Agility InnovationSpeed On- Demand

Constant Learning

Man & Machine

Transparent Experience Purpose

Faster than ever

Connectednessisredefiningtalentexpectationsfasterthanever

Natureofworkisshiftingdimensions faster than ever

Businessesareexperiencingbreakthroughsfasterthanever

Best Employers: Delivering on the Now, Imagineering for What’s to ComeWhat Does India Inc. Need to be Future Ready?

Given the above mentioned external and demographic shifts, businesses now have to focus on three critical imperatives to keep pace with the fast-changing workplace and business landscape.

Keeping Pace with the Fast Changing Business and Workplace Landscapes

Create work culture to deliver

10X impact

21Design

organizations for Innovation, Agility

& Speed

Manage the young, the old and the connected

3


Best Employers: Delivering on the Now, Imagineering for What’s to ComeWhere do the Best Still Need Improvement?

IMPROVEMENTDRIVERS

SUSTAINDRIVERS

Dimensions to Imagineering the Future

1 Collaboration Takes Center-stage: Collaboration at the workplace is amongst top 3 sustenance drivers for Best Employers. However, it is not the top most, which points towards the future journey for Best Employers.

2 Balance Work & Life: Work-Life Balance is an improvement driver for Best Employers despite its high scores. This represents employees’ rising expectations towards better work-life integration enabled through omnipresent technology.

3 Inspirational Leaders and Stellar Reputation Count: Brand and senior leadership are amongst top 4 improvement drivers for the market. Incidentally, senior leadership was a sustenance driver for Best Employers last year, but no longer now. This corroborates our hypothesis of the task cut-out for inspiring leaders and organization’s reputation.

4 Rewards & Recognition Matters: Best Employers have created the highest gap against the market average on rewards&recognition(13%)validatingthepositiveexperiencecreatedfortheemployee.Thesamehoweverisstilltheirtopmostimprovementdriver,whichsignifieshurdlesofthejourneyyettobetraveled.BestEmployersareseemingly more prepared for this.

5Raise the Bar of ‘Delivery of Promise’: Market average scores have interestingly improved across all engagement drivers, with the maximum increase on brand and career opportunities. This indicates market is catching up with key differentiatorsofthepast.Hence,BestEmployersneedtoraisetheir“deliveryofpromise”andfocusoncreationofpurposeful organizations.

IMPROVEMENTDRIVERS

SUSTAINDRIVERS

Rewards & Recognition

Career Opportunities

Brand

Supervision

Learning & Development

Performance Management

Rewards & Recognition


Work-Life Balance

Health & Well-being

Supervision

Collaboration

Best EmployersMarket


Best Employers: Delivering on the Now, Imagineering for What’s to ComeChallenges That Emerge for HRThefuturewillalwaysremainthefuture;organizationsthatacknowledgethefactthattheyneedtobepreparedforthesame will continue to seize opportunities and create exponential advantages. In our view, HR will face the following 3 critical challenges in the readiness, and their ability to influence and lead change during this journey will determine their success.

Pre-empt and solve the TEAM

conundrum!1

• Organizationsofthefuturewillworkinsmalleranddiverseteams

• Teaminabilitytoworkcohesivelywillimpactthedesiredbusinessoutcomes of speed, agility and innovation

72%84%


65%78%

Collaboration

71% 81%

Diversity & Inclusion

TheBestareat84%onDiversity & Inclusion,

ensuring they provide an open work environment that respects individual differences. The market definitelyhasgroundtocover here as employee

expectations are constantly rising.

Career opportunities is the second most critical improvement driver for

the Market as well as the Best Employers. This only reaffirms the criticality of this driver for employees across organizations at

both ends of the maturity spectrum.

Collaboration at the workplace is amongst the top 3 sustenance

drivers for Best Employers. However, it is not the

top most, which points towards the future journey

for Best Employers.

Best Employer ScoresMkt. Average Scores


Best Employers: Delivering on the Now, Imagineering for What’s to ComeChallenges that emerge for HR

Enable the new-age WORK &

LEARNING techniques!

2• Futureofworkrevolvesaroundone’sabilitytolearnandadapt

• Solvingproblemswillbehugelydependentonquickerdecision-making and iterative learning techniques

• Technologywillbeomnipresent,andworkprocesseswillaltersignificantlyowingtoautomationandartificialintelligence

71% 79%73% 83%69%81%

Empowerment & Autonomy

Work-life Balance (Integration)

Basics (Enabling Infra, Talent & Staffing)

TheBestare12%pointsahead on the market when it

comes to providing the basics i.e. the requisite people

and material resources and an enabling infrastructure. Considering that these are

foundation elements for any organization, delivering

on these is critical for all employers.

TheBestareat83%on Empowerment &

Autonomy, which goes to show that in addition

to providing an open work environment, they

are also empowering their employees to take decisions and learn from

their mistakes.

Work/LifeBalanceisanimprovement driver for Best Employers

despite high scores. This represents employees’

rising expectations towards better work-

life integration enabled through omnipresent

technology.



Best Employers: Delivering on the Now, Imagineering for What’s to ComeChallenges that emerge for HR

Relearn the art of MANAGING

Brand and People!

3• Futureofmanagingtalentwillbedrivenbyindividualchoices-

traditional control & command practices will lose favor

• Employeeexperiencewillbeparamount,andleadershipstylewillneed to be inspirational

Employer Brand Rewards & Recognition Inspiring Leadership

Senior Leadership was a sustenance driver for Best

Employers last year, but no longer now. Leadership style will need to be inspirational to drive positive energy and

a sense of purpose within the workforce.

Brand is the third most critical improvement driver for the Market. Organizations are

expected to live and deliver the employer brand in

thought, speech and action. TheBestEmployersare10%points ahead of the market,

anddefinitelybetterpreparedto deliver on employee

expectations.

Best Employers have created the highest gap against the Market Average on Rewards

&Recognition(16%).However, it also is their top most improvement driver,

whichsignifieshurdlesofthejourney yet to be traveled.

Best Employers are seemingly better prepared here.

70%83% 78% 88%

58%74%



Imagineering the FutureDimensions to Imagineering 2020

How to become a Best Employer

Collaboration Takes Centerstage

Balance Work & Life

Rewards & Recognition Matters

Inculcate the ability for teams to work cohesively to drive speed, agility and innovation

Enable better work-life integration through omnipresent technology

Differentiate, reward and recognize effective performance and efforts

Inspirational Leaders and a Stellar Reputation Count

Build towards an inspirational leadership and a stellar reputation to set up for future-readiness

Raise the Bar on ‘Delivery of Promise’

Raisethebaron“deliveryofpromise”andfocusoncreationof purposeful organizations


Risk. Reinsurance. Human Resources.

Vikrant Khanna Senior Consultant Insights & Innovation Aon Hewitt, APAC [email protected]

Kanika Manchanda Consultant Culture & Engagement Aon Hewitt, India kanika.manchanda@aonhewittcom

About Aon Aon plc (NYSE:AON) is a leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 72,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative and effective risk and people solutions and through industry-leading global resources and technical expertise. Aon has been named repeatedly as the world’s best broker, best insurance intermediary, reinsurance intermediary, captives manager and best employee benefits consulting firm by multiple industry sources. Visit www.aon.com for more information on Aon andwww.aon.com/manchesterunited to learn about Aon’s global partnership with Manchester United.

© Aon plc 2016. All rights reserved.The information contained herein and the statements expressedare of a general nature and are not intended to address thecircumstances of any particular individual or entity. Although weendeavor to provide accurate and timely information and usesources we consider reliable, there can be no guarantee that suchinformation is accurate as of the date it is received or that it willcontinue to be accurate in the future. No one should act on suchinformation without appropriate professional advice after a thoroughexamination of the particular situation.

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