Download - 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: [email protected]
Olivier Hamelle Email: [email protected]
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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.
