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Global Talent

Monitor:

New

Zealand

Update on Workforce

Activity in Q1 2016

CONFIDENTIALITY AND INTELLECTUAL PROPERTY

These materials have been prepared by The Corporate Executive

Board Company and its affiliates (CEB) for the exclusive and

individual use of our member companies. These materials contain

valuable confidential and proprietary information belonging to CEB

and they may not be shared with any third party (including

independent contractors and consultants) without the prior approval

of CEB. CEB retains any and all intellectual property rights in these

materials and requires retention of the copyright mark on all pages

reproduced.

LEGAL CAVEAT

CEB is not able to guarantee the accuracy of the information or

analysis contained in these materials. Furthermore, CEB is not

engaged in rendering legal, accounting, or any other professional

services. CEB specifically disclaims liability for any damages, claims

or losses that may arise from a) any errors or omissions in these

materials, whether caused by CEB or its sources, or b) reliance upon

any recommendation made by CEB.

CEB Talent Management Labs Group Leader

Conrad Schmidt

Research Leader

Mark Little

Research Manager

Lindsey Walsh

Research Scientist

Neha Jain

Senior Research Analyst

Sajal Jain

Research Analyst

Namrata Raina

Research Specialist

Nikita Ojha

2

CEB Corporate Leadership Council Practice Leader

Brian Kropp

Research Director

Matt Dudek

Research Analyst

Caitlin Dutkiewicz

© 2016 The Corporate Executive Board Company. All Rights Reserved. - CEB5647216SYN

TABLE OF CONTENTS

3 © 2016 The Corporate Executive Board Company. All Rights Reserved. - CEB5647216SYN

Executive Summary 4

Survey Participant Demographics 6

Employee Engagement Model 8

Employee Engagement 11

Discretionary Effort Trends 12

Intent to Stay Trends 14

Engagement Recap 18

Employment Value Proposition 19

Satisfaction with EVP Categories 21

Impact of EVP on Engagement 23

Rewards Trends 25

Opportunity Trends 28

Organization Trends 31

People Trends 33

Work Trends 34

Recommendations and Resources 35

Appendix 37

EXECUTIVE SUMMARY

Employee

Engagement

19.6% of employees in New Zealand report high

discretionary effort and 36.6% report high intent

to stay, which means that engagement levels in

New Zealand are about average. To maximize

employee engagement, leaders in New Zealand

should focus on improving employee satisfaction

with key areas of the EVP.

Trends in employee

discretionary effort and

intent to stay

Employment

Value

Proposition

On average, employees in New Zealand are

least likely to be satisfied with EVP attributes

related to rewards. When considering what they

want in a potential employer, the rewards

attribute most important for employees in New

Zealand is Compensation.

Trends in employee

satisfaction with Work,

Opportunity, Rewards,

Organization, and

People

4

Report Topics Topic Description


Key Finding Recommended Resources

Discretionary effort and intent to stay levels are neutral among employees in

New Zealand. Watch out for the negative impact of dissatisfaction with

Rewards on discretionary effort and retention.

Departure View: Use CEB’s exit survey to

receive feedback on areas of dissatisfaction.

Employment Value Proposition Design Center:

Design a compelling EVP with this online, data-

based tool that presents data from over 100,000

employees.

Engagement Strategy Playbook: Discover step-

by-step guidance for building an engaged,

aligned, and agile workforce.

Making the Most of Compensation Changes:

Understand how to effectively roll out

compensation changes to employees for

maximum impact.

Increasing the Impact of Pay Through Manager

Involvement: Engage managers in pay activities

to improve compensation satisfaction.

Improve Pay Perceptions by Customizing

Communications: Focus managers on

communicating a few high impact themes to

double their impact on employee pay

perceptions.

https://www.cebglobal.com/member/corporate-leadership-council/benchmarks/survey/departure-view-clc-hr-s-exit-survey-resource.html

https://www.cebglobal.com/member/corporate-leadership-council/benchmarks/metric/employment-value-proposition-design-center.html

https://www.executiveboard.com/member/corporate-leadership-council/benchmarks/metric/employment-value-proposition-design-center.html

https://www.cebglobal.com/member/corporate-leadership-council/tools/12/engagement-strategy-playbook.html?referrerTitle=Employee Engagement - CEB Corporate Leadership Council%E2%84%A2

https://www.cebglobal.com/member/corporate-leadership-council/research/executive_summary/11/making-the-most-of-compensation-changes.html

https://www.executiveboard.com/content/corporate-leadership-council/us/en/member/research/executive_summary/10/increasing-the-impact-of-pay-through-manager-involvement.html

https://www.cebglobal.com/member/corporate-leadership-council/research/executive_summary/10/increasing-the-impact-of-pay-through-manager-involvement.html



https://www.cebglobal.com/member/corporate-leadership-council/research/executive_summary/15/increasing-the-impact-of-pay-transparency-through-more-focused-c.html/?referrerTitle=Search - CEB Corporate Leadership Council%E2%84%A2&searchString=pay perceptions&screenContentId=200784260

https://www.cebglobal.com/member/corporate-leadership-council/research/executive_summary/15/increasing-the-impact-of-pay-transparency-through-more-focused-c.html/?referrerTitle=Search - CEB Corporate Leadership Council%E2%84%A2&searchString=pay perceptions&screenContentId=200784260

5

Current State of Employee Engagement Satisfaction with the Employment Value

Proposition

Engagement among employees in New Zealand is about

average.

Impact of EVP Satisfaction on Employee

Engagement

The 38 attributes of the employment value proposition fall

into five categories. Employees in New Zealand are least

likely to be satisfied with those related to rewards.

Most Important EVP Drivers Not all aspects of the EVP are equally important. The attributes below are those most frequently selected by employees in New Zealand as reasons to join or leave an organization.

WHAT SHOULD NEW ZEALAND LEADERS KNOW TO BETTER MANAGE THEIR

TEAMS?


Employees in New Zealand who are satisfied with their EVP

are more likely to report high discretionary effort and intent

to stay.

New Zealand

International Average

0%

10%

20%

30%

40%

50%

60%

Hig

h D

isc

reti

on

ary

Effo

rt

0% 10% 20% 30% 40% 50% 60%

High Intent to Stay

Rewards

• Compensation

Opportunity

• Stability

• Development Opportunity

• Future Career Opportunity

Organization

• Respect

• Ethics/Integrity

People

• Coworker Quality

• Manager Quality

• People Management

Work

• Location

• Work-Life Balance

• Job-Interests Alignment

• Recognition

WHO PARTICIPATED IN THE SURVEY?


NOTE: Totals may not equal 100% due to rounding.

NOTE: The maximum margin of error for the analyses reported in this deck is plus/minus 5 percentage points at 95% confidence.

Industry New Zealand All Employees

Aerospace 0.6% 0.9%

Construction 5.4% 5.1%

Consumer Goods 4.2% 4.0%

Education 15.0% 8.4%

Financial Services and Insurance 3.4% 7.4%

Government 5.6% 6.4%

Health Care 11.0% 6.0%

Leisure and Hospitality 3.6% 2.3%

Manufacturing 6.0% 11.1%

Media 2.2% 1.9%

Nonprofit 1.4% 1.9%

Oil, Gas, and Mining 0.0% 1.8%

Pharmaceuticals 0.8% 1.3%

Professional Services 13.4% 10.9%

Real Estate 0.8% 2.1%

Restaurant 0.8% 1.5%

Retail 9.8% 7.9%

Technology 7.6% 10.8%

Travel and Transportation 4.8% 4.2%

Utilities 3.0% 4.2%

Survey Period New Zealand All Employees

Q1 2016 500 21,140

Function New Zealand All Employees

Administrative support 7.8% 13.6%

Communications 1.2% 1.7%

Corporate 1.6% 4.9%

Customer Contact 9.0% 7.4%

Educator 5.6% 2.2%

Finance and Accounting 4.0% 8.2%

Human Resources 4.2% 4.4%

IT 6.8% 12.1%

Manufacturing 3.0% 5.3%

Marketing and Market Research 1.4% 1.7%

Operations 10.0% 6.8%

Procurement 0.6% 1.7%

Quality 1.0% 2.6%

R&D and Engineering 4.8% 8.7%

Retail 5.6% 4.4%

Sales 4.2% 7.2%

Supply Chain and Logistics 2.2% 2.0%

Technician 6.0% 5.1%

Employee Level New Zealand All Employees

Junior level 37.4% 36.1%

Mid level 50.9% 54.0%

Senior level 11.7% 14.0%

WHICH COUNTRIES DO SURVEY PARTICIPANTS REPRESENT?

© 2016 The Corporate Executive Board Company. All Rights Reserved. - CEB5647216SYN 7

NOTE: International averages are computed from a straight mean of all survey respondents.

Country All Employees

Argentina 0.9%

Australia 4.7%

Belgium 1.2%

Brazil 2.8%

Canada 4.7%

Chile 0.9%

China 4.6%

Colombia 0.9%

Czech Republic 0.4%

Denmark 1.2%

Finland 1.2%

France 2.4%

Germany 5.9%

Hong Kong 0.9%

Hungary 0.4%

India 4.7%

Indonesia 2.4%

Italy 2.4%

Japan 2.4%

Malaysia 1.2%

Country All Employees

Mexico 2.8%

Netherlands 2.4%

New Zealand 2.4%

Norway 0.9%

Philippines 1.2%

Poland 2.4%

Romania 0.4%

Russian Federation 2.4%

Singapore 2.4%

South Africa 2.4%

South Korea 2.4%

Spain 2.4%

Sweden 1.2%

Switzerland 2.4%

Taiwan 2.4%

Thailand 2.4%

Turkey 0.9%

United Kingdom 7.1%

United States 10.9%

Vietnam 2.4%

EMPLOYEE ENGAGEMENT MODEL

CEB ClearAdvantage Engagement Model

Source: CEB analysis.

Engagement Metrics

Percentage of Employees Indicating High Levels of:

Energy

■ Sense of urgency

■ Excitement and/or

enthusiasm

■ Focus

Optimism

■ Confidence in the

future

■ Belief in progress

Pride

■ Identification with

company

■ Recommending the

company

Intent to Stay

An employee’s desire to stay with the organization, based on whether he or she intends to look for a new job within a year, frequently thinks of quitting, has actively been looking for a new job, or has taken steps such as placing phone calls and sending out résumés

Discretionary Effort

Employee willingness to go above and beyond the call of duty, such as helping others with heavy workloads, volunteering for additional duties, and looking for ways to perform the job more efficiently


8

Employee

engagement is the

pride, energy, and

optimism that fuels

employees’

discretionary effort

and intent to stay.

Firms with high levels

of employee

engagement report

financial outcomes (i.e.,

return on assets, profit

margin) three times

higher than firms with

low engagement.

WHY IS EMPLOYEE ENGAGEMENT IMPORTANT?

Employee Engagement

Level of the Firm

Bottom quartile

Top quartile

Profit Margin2

4%

14%

Return on Assets1

9%

3%

Impact of Engagement on Financial

Performance

Higher levels of employee engagement are also associated with higher:

Employee performance – Every 10% improvement in engagement can increase an

employee’s effort level by 6%, which can improve an employee’s performance by 2%.

Employee retention – Every 10% improvement in engagement can decrease an

employee’s probability of departure by 9%.

Customer satisfaction – Customers of firms with high levels of employee engagement are

9% more satisfied than customers of firms with low levels of employee engagement.

1 Return on assets is an indicator of how profitable a company is relative to its total assets, including how efficient a firm is at using its assets to generate

earnings. It is calculated by dividing a company's annual earnings by its total assets. It may also be referred to as "return on investment".

2 Profit margin is a ratio of profitability calculated as net income divided by revenues, or net profits divided by sales. It measures how much out of every dollar

of sales a company keeps in earnings.

N = 93 organizations.

Source: CEB 2014 ClearAdvantage Survey.


To drive business

outcomes more

effectively, expand

beyond engagement to

incorporate alignment

and agility, and use

engagement more

strategically by

customizing

engagement efforts to

specific business

priorities.

EXPAND YOUR FOCUS TO ALIGNMENT AND AGILITY FOR A

ClearAdvantage

CEB ClearAdvantage Framework Create and sustain advantage by incorporating alignment and agility into engagement strategies.

• Engagement—Employees’ pride, energy, and

optimism that fuels their discretionary effort and intent

to stay.

• Alignment—The connection between employees’

work and goals with those of the company overall.

• Agility—The organization’s ability to sense and

respond to change.

Common Business Priorities Customize engagement efforts to specific business

priorities to impact specific business outcomes.


What You Can Do


Use your membership to align employee

engagement with business strategy.

Assess Engagement Strategically

Participate in CEB’s ClearAdvantage Check

to assess not only the engagement of your

workforce but also its impact on your unique

business priorities.

Contact Us to Learn More

Phone: +1-866-913-6447

E-Mail: ClearAdvantageCheck@

executiveboard.com

https://www.cebglobal.com/member/corporate-leadership-council/benchmarks/survey/clearadvantage-check-ceb-s-strategic-engagement-survey.html





mailto:[email protected]



ROADMAP

Employment

Value Proposition Employee

Engagement

Recommendations

and Resources

• Understand the status of

discretionary effort in New

Zealand today.

• Understand the status of intent

to stay in New Zealand today.

• Identify engagement risks

among key segments of the

labor force in New Zealand.

• How can executives improve

engagement on their teams?

• What is the employment value

proposition and why does it

matter?

• What aspects are most

important and are employees in

New Zealand satisfied with

them?

• What next steps should an HR

executive take?

• What resources does CEB have

to help?


HOW MANY EMPLOYEES REPORT GOING ABOVE

AND BEYOND?

Source: CEB 2009-2016 Global Labor Market Survey.

Percentage of Employees Reporting High Levels of Discretionary Effort

Global Employed Labor Force

Discretionary Effort

An employee’s willingness to go

above and beyond the call of

duty, such as helping others with

heavy workloads, volunteering

for additional duties, and looking

for ways to perform the job

more effectively

Few employees report truly

low discretionary effort, so

executives should focus

on shifting individuals

from neutral or somewhat

high to high.

NOTE: Discretionary effort levels are calculated from a battery of five questions posed to survey respondents. These answers are combined and the respondents with an average score of 6.0 or above

on a 7-point scale are considered to report high discretionary effort at work.


Q1 2016 n: 21,140 all employees; 500 employees in New Zealand.

Q1 2016 n: 500 employees in New Zealand.

19.6% of employees in New

Zealand report showing high

discretionary effort, and

another 44.6% are leaning

towards high.

Discretionary effort levels in

New Zealand have not

significantly changed over

the last year.

Q1 2016

Distribution of Employees in New Zealand by Level of Discretionary Effort Employed Labor Force in New Zealand | Q1 2016

New Zealand 19.6%

International

Average 17.2%

HOW DO DISCRETIONARY EFFORT LEVELS COMPARE ACROSS REGIONS?

13


NOTE: : A green or red box indicates a statistically significant positive or negative change at the 95% confidence level, whereas a dash indicates that the change was not statistically significant.


Percentage of Employees Globally Reporting High Levels of Discretionary Effort by Region

Global Employed Labor Force | Q1 2016

Year-

Over-

Year

Change


HOW MANY EMPLOYEES REPORT STRONG INTENT TO

STAY WITH THEIR JOBS?

Percentage of Employees Globally with High and Low Levels of Intent to Stay

Global Employed Labor Force

Intent to Stay

The employee’s desire to stay

with the organization, based on

whether he or she intends to

look for a new job within a year,

frequently thinks of quitting, is

actively looking for a job, or has

begun to take tangible steps,

such as placing phone calls or

sending out résumés

Productivity research

shows individual

performance improves with

tenure. Low intent to stay

can lead to retention

challenges.

NOTE: Intent to stay levels are calculated from a battery of four questions posed to survey respondents. These answers are combined and the respondents with an average score of 6.0 or above on a

7-point scale are considered to report high intent to stay at work.






Zealand report low intent to

stay, and another 9.4% are

leaning towards low.

The percentage of

employees in New Zealand

reporting high intent to stay

has not significantly changed

over the last year.

High Intent to Stay

Q1 2016

Low Intent to Stay

Q1 2016

Distribution of Employees in New Zealand by Level of Intent to Stay

Employed Labor Force in New Zealand | Q1 2016

New Zealand 36.6%

International

Average 35.4%

New Zealand 9.4%

International

Average 9.0%

HOW DOES EMPLOYEE INTENT TO STAY COMPARE ACROSS REGIONS?

15


NOTE: : A green or red box indicates a statistically significant positive or negative change at the 95% confidence level, whereas a dash indicates that the change was not statistically significant.


Percentage of Employees Globally with High and Low Levels of Intent to Stay by Region

Global Employed Labor Force | Q1 2016

Year-Over-

Year

Change

Year-Over-

Year

Change

Low Intent

to Stay

High Intent

to Stay


HOW MANY EMPLOYEES WHO GO ABOVE AND

BEYOND PLAN TO STAY?

Distribution of Intent to Stay for Employees in New Zealand

Given that only 19.6% of


display high levels of

discretionary effort,

leaders must focus on

retaining those who do.

Distribution of Intent to Stay for All Employees with High Discretionary

Effort | Q1 2016

Source: CEB 2016 Global Labor Market Survey.


Q1 2016 n: 98 high discretionary effort employees in New Zealand.

Q1 2016 n: 3,644 all high discretionary effort employees.


Distribution of Intent to Stay for Employees with High Discretionary Effort New Zealand Employed Labor Force | Q1 2016


Zealand who go above and

beyond at work intend to

stay with their employers.

with High Discretionary Effort | Q1 2016

1

WHICH TALENT SUBSETS IN NEW ZEALAND ARE AT

HIGHER RISK OF LEAVING?

Low Risk: Employee Sub-Groups with a Higher Percentage of Employees with High Intent to Stay Employed Labor Force in New Zealand | Q2 2015-Q1 2016

Intent to Stay

The employee’s desire to stay

with the organization, based on

whether he or she intends to

look for a new job within a year,

frequently thinks of quitting, is

actively looking for a job, or has

begun to take tangible steps,

such as placing phone calls or

sending out résumés

Specific demographic

groups, such as those with

a certain level of

education, can be a higher

retention risk than other

segments.

• See the Appendix for intent

to stay information for

different segments of New

Zealand employee

population.

Q2 2015-Q1 2016 n: 2,002 employees in New Zealand.


High Risk: Employee Sub-Groups with a Lower Percentage of Employees with High Intent to Stay Employed Labor Force in New Zealand | Q2 2015-Q1 2016

• Age: 50-70

• Education: Completed high school / secondary level education and / or some

college

• Employee Level: Senior level

• Performance Level: High Potential

• Organization Size: 100 or fewer

• Age: 18-29, 30-39

• Education: Completed MBA, Completed Masters degree (non-MBA), PhD,

Medical Degree, Law Degree, or Other Professional Degree

• Employee Level: Junior level

• Organization Size: 1,001 to 5,000, 101 to 1,000


HOW DOES EMPLOYEE ENGAGEMENT COMPARE ACROSS REGIONS?

Percentage of Employees with High Discretionary Effort and Intent to Stay by Region Global Employed Labor Force | Q1 2016




Above Average DiscretionaryEffort Only

Above Average on BothAspects of Engagement

Above Average Intentto Stay Only

Below Average on BothAspects of Engagement

New Zealand

Argentina, Chile, and Colombia

Australia

Belgium and the Netherlands

BrazilCanada

ChinaEastern Europe France

Germany

India

Island Southeast AsiaItaly

Mexico

Nordic Region

Russia

Singapore

South Africa

South Korea

Spain

Switzerland

Taiwan

United Kingdom

United States

Vietnam and Thailand

0%

10%

20%

30%

40%

Perc

en

tag

e o

f Em

plo

yee

s R

ep

ort

ing

Hig

h D

iscre

tio

nary

Eff

ort

10% 20% 30% 40% 50% 60%

Percentage of Employees Reporting High Intent to Stay

ROADMAP

Employment Value

Proposition

Employee

Engagement Recommendations

and Resources



Zealand today.


intent to stay in New Zealand

today.








matter?




them?


executive take?


to help?


What You Can Do

CEB’S EVP FRAMEWORK

An effective EVP allows organizations to better source new employees.


Attraction Benefits

■ Reduces the compensation premium needed to hire by 50%

■ Enables organizations to reach deeper into the labor market to attract passive candidates

Retention Benefits

■ Decreases annual employee turnover by 69%

■ Increases new hire commitment by 29%

Rewards

■ Compensation

■ Health Benefits

■ Retirement

Benefits

■ Vacation

Opportunity

■ Development

Opportunity

■ Future Career

Opportunity

■ Growth Rate

■ Meritocracy

■ Stability

Organization

■ Customer Prestige

■ Empowerment

■ Environmental

Responsibility

■ Ethics and Integrity

■ Formality of Work

Environment

■ “Great Employer”

Recognition

■ Inclusion and Diversity

■ Industry Desirability

■ Market Position

■ Organization Size

■ Product or Service

Quality

■ Respect

■ Risk Taking

■ Social Responsibility

■ Technology Level

■ Well-Known Product

Brand

People

■ Camaraderie

■ Collegial Work

Environment

■ Coworker Quality

■ Manager Quality

■ People

Management

■ Senior Leadership

Reputation

Work

■ Business Travel

■ Innovative Work

■ Job–Interests

Alignment

■ Level of Impact

■ Location

■ Recognition

■ Work–Life Balance

EVP

The set of attributes that the labor market and employees perceive as the value they gain through employment in the organization.

The EVP Framework and the Benefits of a Differentiated EVP


20

1.Define the vision for a

differentiated EVP.

2. Prioritize and position your EVP.

3. Deliver on your EVP promise.

Visit our EVP Topic Center for more

information.

https://www.cebglobal.com/member/corporate-leadership-council/topics/employment-value-proposition/define-the-vision-for-a-differentiated-evp.html



https://clc.executiveboard.com/Members/Topics/Abstract.aspx?cid=100612491

https://www.cebglobal.com/member/corporate-leadership-council/topics/employment-value-proposition/prioritize-and-position-the-evp.html

https://www.cebglobal.com/member/corporate-leadership-council/topics/employment-value-proposition/deliver-on-the-evp-promise.html

https://www.cebglobal.com/member/corporate-leadership-council/topics/employment-value-proposition.html

WHAT PORTION OF EMPLOYEES IN NEW ZEALAND

ARE SATISFIED WITH THE EVP CATEGORIES?

Percentage of Employees in New Zealand Satisfied with EVP Categories Overall Global Employed Labor Force | Q1 2016

Satisfaction among


is below average for EVP

attributes related to

rewards.


Q1 2016 n: 21,140 all employees 500 employees in New Zealand.


WHERE DOES SATISFACTION DIFFER FROM OTHER REGIONS?


NOTE: Green or red highlighting indicates that satisfaction in New Zealand differs from the international average by 4.0% or more.



Percentage of Employees in New Zealand Satisfied with EVP Attributes Global Employed Labor Force | Q1 2016

Rewards

Opportunity

Organization

People

Work

Attribute New Zealand International

Average Attribute New Zealand

International

Average

Vacation 39.2% 42.2% Health Benefits 21.2% 32.4%

Compensation 24.8% 30.7% Retirement Benefits 16.8% 28.5%

Stability 47.2% 44.4% Development Opportunity 25.6% 30.3%

Growth Rate 29.2% 30.9% Meritocracy 19.2% 25.4%

Future Career Opportunity 28.0% 28.3%

Product or Service Quality 46.6% 45.7% Ethics/Integrity 37.0% 39.3%

Organization Size 40.8% 41.1% Inclusion/Diversity 32.0% 34.2%

Industry Desirability 40.4% 40.6% Customer Prestige 31.6% 36.4%

Respect 38.4% 42.8% Social Responsibility 30.6% 33.8%

Formality of Work Environment 38.4% 38.3% Empowerment 29.4% 33.1%

Well-Known Product Brand 38.0% 38.5% "Great Employer" Recognition 28.2% 31.7%

Technology Level 37.6% 37.1% Environmental Responsibility 27.2% 32.3%

Market Position 37.4% 38.5% Risk Taking 20.0% 27.8%

Coworker Quality 40.6% 40.4% Collegial Work Environment 32.0% 39.3%

Camaraderie 38.8% 41.0% Senior Leadership Reputation 31.6% 35.6%

Manager Quality 36.0% 36.3% People Management 30.6% 32.9%

Location 62.6% 54.9% Level of Impact 29.6% 32.8%

Work-Life Balance 45.8% 40.2% Innovative Work 29.6% 32.4%

Job-Interests Alignment 33.8% 36.7% Business Travel 18.2% 26.7%

Recognition 31.4% 35.4%

HOW DOES EVP SATISFACTION IMPACT EMPLOYEE

ENGAGEMENT?

An employee who is highly

satisfied with the EVP

attributes he or she

prioritizes when

considering a new

opportunity is more likely

to report high discretionary

effort and intent to stay.

Likelihood That an Employee in New Zealand Will Report High Intent to Stay Employed Labor Force in New Zealand | Q2 2015-Q1 2016


Q2 2015-Q1 2016 n: 1,240 employees in New Zealand with lower satisfaction; 762 employees in New Zealand with higher satisfaction.

Employees in New Zealand who are

more highly satisfied with the five

EVP attributes they prioritize in a

potential employer are twice as likely

to report high discretionary effort.

In addition, these people are three

times as likely to report high intent

to stay.

23

Q2 2015-Q1 2016 n: 1,240 employees in New Zealand with lower satisfaction; 762 employees in New Zealand with higher satisfaction.

Likelihood That an Employee in New Zealand Will Report High Discretionary Effort Employed Labor Force in New Zealand | Q2 2015-Q1 2016

1


HOW DO I BETTER UNDERSTAND EMPLOYEE SATISFACTION?

Q2 2015-Q1 2016 n: 2,002 employees in New Zealand (attraction importance); 353 employees in New Zealand (attrition importance) 500 employees in New Zealand (EVP satisfaction).


NOTE: Attribute Importance is based on employee responses about what attracts them to an organization. Attributes are ordered according to their level of satisfaction among employees in New Zealand.

24

Most Important Attributes for Attracting Employees in New Zealand Employed Labor Force in New Zealand | Q2 2015-Q1 2016

Most Important EVP

Drivers for New Zealand

Staff

Other Attributes

Additional Information Page 34 Page 33 Page 28 Page 25 Page 31

Rewards

• Compensation

Opportunity

• Stability



Organization

• Respect


People


• Manager Quality


Work

• Location



• Recognition

• Vacation

• Health Benefits

• Retirement Benefits

• Growth Rate

• Meritocracy

• Product or Service Quality

• Organization Size

• Well-Known Product Brand

• Industry Desirability

• Formality of Work Environment

• Market Position

• Technology Level

• Inclusion/Diversity

• Social Responsibility

• Customer Prestige

• Empowerment

• "Great Employer" Recognition

• Environmental Responsibility

• Risk Taking

• Camaraderie

• Collegial Work Environment

• Senior Leadership Reputation

• Level of Impact

• Innovative Work

• Business Travel

1




HOW HAS SATISFACTION WITH REWARDS ATTRIBUTES

CHANGED OVER TIME?


Employees in New Zealand

are least satisfied with

retirement benefits and

most satisfied with

vacation.

25

Percentage of Employees in New Zealand Satisfied with Key Rewards Attributes Employed Labor Force in New Zealand

Q1 2016

Important Drivers of Attraction

‒— Rewards

• Compensation

Missing data in the trend line indicates insufficient sample size or that the data was not collected in the period.

HOW DO EMPLOYEES PERCEIVE THE OVERALL

VALUE OF THEIR PAY?


have about average

perceptions of pay value,

fairness, and equity.

Neutral



The Pay Perceptions Index measures employee perceptions of the six aspects of pay listed below and

weights them according to their impact on employee intent to stay and discretionary effort.

Financial Value

Nonfinancial Value

Organizational Fairness

Manager Fairness

Internal Equity

External Equity


Above

Neutral

Below

Neutral

The Pay Perceptions Index

measures six aspects of

employee perceptions at their

organizations—financial value,

nonfinancial value,

organizational fairness, manager

fairness, internal equity, and

external equity—weighted by

their impact on employee intent

to stay and discretionary effort.

26

Pay Perceptions Index Global Employed Labor Force

Q1 2016


Base Pay and Bonus Pay

Change Expectations measure

the percent change in base or

bonus pay an employee expects

in the coming year.

HOW MUCH MORE DO EMPLOYEES EXPECT TO EARN

IN THE COMING YEAR?

On average, employees in

New Zealand expect a 2.6%

increase in base pay and a

0.1% decrease in bonus

pay this year.


Bonus Pay Change Expectations Global Employed Labor Force



Base Pay Change Expectations Global Employed Labor Force


Q1 2016

Q1 2016



HOW HAS SATISFACTION WITH OPPORTUNITY

ATTRIBUTES CHANGED OVER TIME?




meritocracy and most

satisfied with stability.

28

Percentage of Employees in New Zealand Satisfied with Key Opportunity Attributes Employed Labor Force in New Zealand



Q1 2016



‒— Opportunity

• Stability



HOW LIKELY ARE EMPLOYEES TO EXPERIENCE A

CAREER MOMENT?

Career Moments are changes

experienced by the employee

during a given year. Career

moments disrupt an employee’s

ability to do his or her job by

changing the nature of roles,

relationships, work knowledge,

and/or benefits.

Of employees in New

Zealand who experienced

career moments, the

greatest proportion

experienced significant

organizational

restructuring or a

substantial change in one

or more senior leaders.

Q1 2016 n: 10,629 all employees (International Average); Past Change - 246 employees in New Zealand; Future Change - 254 employees in New Zealand.


NOTE: A green or red box indicates a statistically significant positive or negative change at the 95% confidence level, whereas a dash indicates that the change was not statistically significant.

29

Percentage of Employees in New Zealand Experiencing Career Moments Global Employed Labor Force | Q1 2016

Career Moments

Percentage of Employees Experiencing a Career

Moment in the Past Year Percentage of New

Zealand Employees

Expecting Career

Moments in the Next 6

Months

International

Average

New Zealand

% Y-o-Y Change

(6.1%) –

(3.6%) –

(0.7%) –

(3.9%) –

(4.7%) –

1.9% –

(1.4%) –

(4.2%) –

(1.3%) –

(1.7%) –

(2.5%) –

(4.1%) ↓

(1.2%) –

(0.8%) –

6.5% – No career moments 30.9%

Significant organizational restructuring 26.2%

Substantial change in one or more senior leaders 23.0%

Significant change in job responsibilities 19.6%

Change in your direct manager 18.9%

Layoffs of team members 24.7%

Significant change in the skills you are using 8.5%

Wage freeze or salary cap 14.1%

Hiring freeze 15.5%

Merger/Acquisition 6.8%

Transfer to an entirely new team 8.4%

Reduction or elimination in variable pay (e.g., bonuses) 10.6%

Reduction in benefits 9.8%

Mandatory unpaid leave 3.2%

New early retirement offer to employees 4.8%

26.8%

26.0%

20.7%

18.7%

17.9%

12.2%

10.6%

9.3%

6.9%

6.9%

5.3%

2.0%

1.2%

0.8%

22.0%

14.6%

18.9%

16.9%

11.0%

10.6%

13.8%

7.9%

5.1%

7.9%

8.3%

5.1%

3.5%

3.1%

39.0% 46.5%

1


HOW DO CAREER MOMENTS AFFECT EMPLOYEE

INTENT TO STAY?

Anticipated and actual

career moments—

indicators of stability—

markedly affect intent to

stay.


Q1 2016 n: 10,629 all employees.


Career Moments are changes

experienced by the employee

during a given year. Career

moments disrupt an employee’s

ability to do his or her job by

changing the nature of roles,

relationships, work knowledge,

and/or benefits.

30

Impact of Experienced Career Moments on Intent to Stay Global Employed Labor Force | Q1 2016

How to Read this Graph: The shift from experiencing no career moments to experiencing the layoff of a team member

decreases the expected percentage of employees with high intent to stay from 47% to 25%, a negative 22 percentage point

impact.

A new early retirement offer

to employees and substantial

change in one or more

senior leaders have the least

pronounced impact on intent

to stay.

Mandatory unpaid leave and

a reduction or elimination in

variable pay (e.g., bonuses)

have the most pronounced

negative effect on intent to

stay.

-1

HOW HAS SATISFACTION WITH ORGANIZATION

ATTRIBUTES CHANGED OVER TIME?



are least satisfied with risk

taking and most satisfied

with product or service

quality.

31

Percentage of Employees in New Zealand Satisfied with Key Organization Attributes Employed Labor Force in New Zealand



Q1 2016



‒— Organization

• Respect


IT Impact Index

Employed individuals’ ability to

use the resources and

capabilities officially provided by

their employers for collaboration,

analysis, and mobility

Misconduct Monitor

Employed individuals’

perceptions of ethical behavior

and practices within their

organization

Risk Tolerance Quotient

Employed individuals’

confidence in their ability to take

risks to improve business

outcomes both personally and

for their current organization


have below-average

perceptions of the

resources provided to

them for collaboration,

mobility, and analysis. Misconduct Monitor Global Employed Labor Force | Q1 2016

IT Impact Index Global Employed Labor Force | Q1 2016


DO EMPLOYEES HAVE MORE POSITIVE PERCEPTIONS OF

ORGANIZATION ATTRIBUTES?

Risk Tolerance Quotient Global Employed Labor Force | Q1 2016

NOTE: Indices are based on a 100-point scale for which 0 is negative and 100 is positive. Higher scores indicate that employees in New Zealand have more positive perceptions of the attribute at their

workplace. 32 © 2016 The Corporate Executive Board Company. All Rights Reserved. - CEB5647216SYN

Q1 2016 n: 20,725 all employees; 480 employees in New Zealand. Q1 2016 n: 21,140 all employees; 500 employees in New Zealand.


1

HOW HAS SATISFACTION WITH PEOPLE ATTRIBUTES

CHANGED OVER TIME?



people management and

most satisfied with

coworker quality.


Percentage of Employees in New Zealand Satisfied with Key People Attributes Employed Labor Force in New Zealand



Q1 2016



‒— People


• Manager Quality


HOW HAS SATISFACTION WITH WORK ATTRIBUTES

CHANGED OVER TIME?



innovative work and level

of impact and most

satisfied with location.


Percentage of Employees in New Zealand Satisfied with Key Work Attributes Employed Labor Force in New Zealand



Q1 2016



‒— Work

• Location



• Recognition

ROADMAP

Employment Value

Proposition

Employee

Engagement Recommendations

and Resources

35



Zealand today.

• Understand the status of intent

to stay in New Zealand today.








matter?




them?


executive take?


to help?


ADDITIONAL INSIGHTS AND RESOURCES

Business Objective Your Critical Initiative How CEB Can Support You

Enable Growth

Create a Competitive Employment Value Proposition Design and deliver a competitively differentiated EVP to attract and retain

critical talent.

Create Compelling Careers for Employees and the

Organization

Design and deliver careers that retain and build talent.

Improve the Impact of Performance Management Redesign performance management to reflect the changing

workforce and work environment.

Drive Returns on Employee Engagement Investments Redesign your engagement strategy to drive execution against your

business strategy.

Improve Diversity and Inclusion Outcomes Build practical, business-led strategies for achieving and measuring diversity

and inclusion objectives.

Improve Efficiency Lead Organization Redesign Develop and execute effective organization design strategies to improve

performance.

Reduce Risk

Embed Talent into Strategic Board Conversations Change your board conversations to provide higher levels of assurance

about critical talent risks impacting business strategy.

Improve Your Succession Management Strategies Build a succession and talent review process that addresses

changing organizational and leadership requirements.

Improve High-Potential Identification and Deployment Equip line leaders to more effectively identify and manage rising leaders to

maximize their potential.

Create Strategic Workforce Plans Develop plans to deliver key capabilities for business growth based on

internal and external talent supply and demand.

Transform the Function

Maximize HR Business Partner (HRBP) Effectiveness Identify, develop, and enable the next generation capabilities required of HR

business partners to meet changing business needs.

Improve HR Analytics Build HR capability to use data to drive line decision making.

Develop an Integrated Talent Management Strategy1 Align talent management objectives directly with business strategy, and drive

coordinated support for those objectives.

Create an HR Strategic Plan Formulate and execute an end-to-end HR strategic plan to deliver critical

functional capabilities as business conditions evolve.

Critical Initiatives and CEB Support We offer direct assistance to eliminate significant work required to complete essential projects.

1 This service is available to members of CEB Corporate Leadership Council, CEB Recruiting Leadership Council, and CEB Learning & Development Leadership Council.


36



https://www.cebglobal.com/member/corporate-leadership-council/topics/workforce-management/career-management.html



https://www.cebglobal.com/member/corporate-leadership-council/topics/performance-management.html


https://www.cebglobal.com/member/corporate-leadership-council/topics/employee-engagement.html

https://www.cebglobal.com/member/corporate-leadership-council/topics/employee-engagement.html

https://www.cebglobal.com/member/corporate-leadership-council/topics/workforce-management/diversity-and-inclusion.html





https://www.cebglobal.com/member/corporate-leadership-council/topics/organization-design.html



https://clc.executiveboard.com/Members/ResearchAndTools/Abstract.aspx?cid=101282156&fs=1&q=board&program=&ds=1

https://www.cebglobal.com/member/corporate-leadership-council/resources-by-role/chro-portal.html





https://www.cebglobal.com/member/corporate-leadership-council/topics/succession-management.html



https://www.cebglobal.com/member/corporate-leadership-council/topics/high-potential-employees.html



https://www.cebglobal.com/member/corporate-leadership-council/topics/workforce-planning.html

https://www.cebglobal.com/member/corporate-leadership-council/topics/workforce-planning.html

https://www.cebglobal.com/member/corporate-leadership-council/resources-by-role/hr-business-partner-portal.html

https://www.cebglobal.com/member/corporate-leadership-council/resources-by-role/hr-business-partner-portal.html

https://www.cebglobal.com/member/corporate-leadership-council/topics/hr-metrics-and-analytics.html

https://www.cebglobal.com/member/corporate-leadership-council/topics/hr-transformation.html

https://www.cebglobal.com/member/corporate-leadership-council/topics/hr-transformation.html

https://www.cebglobal.com/member/corporate-leadership-council/topics/hr-strategic-planning.html






Appendix


Q2 2015-Q1 2016 n: 90,093 all employees (engagement and PPI); 2,002 employees in New Zealand (engagement and PPI); 90,093 all employees (EVP Satisfaction); 2,002 employees in New Zealand (EVP Satisfaction); 45,026 all employees (no career moments);

1,027 employees in New Zealand (no career moments).

NEW ZEALAND ENGAGEMENT AND PERFORMANCE RISK HEATMAP

Q2 2015-Q1 2016 OVERVIEW

38

NOTE: Green or red highlighting indicates that a percentage differs from the New Zealand average by 4.0% or more, or an Index by 4.0 or more. Green highlighting indicates that an employee subset is considered “low risk” for an attribute and red highlighting indicates

“high risk”. Blank boxes indicate an insufficient n-size for reporting.


Benchmarks

Gender

Age

Education

Employee

Level

Performance

Level

Organization Size

Engagement EVP Satisfaction Key Measures

High

Discretionary

Effort

Low Intent to

Stay

High Intent to

Stay

Rewards

Satisfaction

Opportunity

Satisfaction

Organization

Satisfaction

People

Satisfaction

Work

Satisfaction

Pay

Perceptions

Index

Experienced No

Career Moments

International Average 17.7% 9.0% 35.4% 33.2% 31.6% 36.7% 37.4% 37.0% 55.5 31.3%

New Zealand 20.2% 8.7% 36.2% 25.5% 30.2% 36.4% 38.1% 37.7% 54.5 37.5%

Female 22.7% 8.7% 37.2% 24.3% 30.7% 37.1% 39.1% 38.2% 53.9 38.7%

Male 17.4% 8.8% 35.0% 26.8% 29.7% 35.7% 36.9% 37.2% 55.2 36.1%

18-29 10.5% 13.1% 23.6% 26.4% 33.5% 37.3% 39.3% 36.4% 56.3 39.0%

30-39 16.6% 8.6% 31.5% 25.6% 29.5% 33.9% 34.4% 36.3% 54.7 31.3%

40-49 21.5% 9.5% 34.2% 26.7% 28.9% 35.8% 38.4% 37.3% 54.6 35.9%

50-70 26.5% 6.3% 46.7% 24.2% 29.9% 37.9% 39.7% 39.5% 53.3 42.4%

Completed high school / secondary

level education and / or some college 21.6% 7.3% 40.3% 25.3% 29.8% 36.8% 36.1% 38.3% 52.6 36.7%

Completed technical / associate

degree, certificate, or diploma 21.6% 8.4% 39.4% 22.0% 26.6% 32.0% 33.3% 34.3% 53.3 36.5%

Completed bachelor's / university

degree 19.2% 8.7% 34.6% 27.1% 32.7% 38.7% 41.6% 39.7% 56.0 39.6%

Completed MBA 10.5% 15.8% 29.8% 29.4% 28.8% 33.6% 43.3% 35.6% NA 36.8%

Completed Masters degree (non-

MBA), PhD, Medical Degree, Law

Degree, or Other Professional Degree

20.1% 9.9% 30.2% 26.2% 29.6% 36.0% 38.2% 37.1% 55.9 34.2%

Junior level 19.4% 9.8% 31.7% 23.2% 27.8% 34.5% 36.1% 35.1% NA 32.4%

Mid level 19.3% 9.2% 33.5% 25.2% 29.4% 35.3% 36.1% 36.4% NA 31.0%

Senior level 26.3% 4.2% 53.2% 35.1% 42.9% 48.5% 54.2% 52.1% NA 67.0%

Non-High Potential 17.7% 9.1% 34.7% 24.0% 28.2% 34.2% 35.9% 35.7% 53.2 38.1%

High Potential 45.0% 5.6% 50.6% 41.0% 50.3% 58.2% 59.6% 57.6% 66.9 30.7%

Greater than 20,000 20.1% 12.8% 32.9% 29.6% 30.1% 37.5% 34.9% 37.2% 54.0 26.6%

5,001 to 20,000 20.3% 7.9% 36.5% 26.4% 29.8% 34.9% 35.1% 34.5% 53.1 27.4%

1,001 to 5,000 20.7% 10.7% 29.5% 27.1% 29.4% 33.9% 35.8% 35.8% 53.0 25.3%

101 to 1,000 20.7% 8.9% 29.4% 23.1% 29.4% 35.0% 35.7% 36.7% 53.9 28.9%

100 or fewer 19.7% 7.5% 42.5% 25.2% 31.1% 38.2% 41.6% 40.0% 55.8 51.9%


Key Definitions

39

Base pay change expectations measure the percent change in base pay an employee expects in the coming year.

Bonus pay change expectations measure the percent change in short-term incentive (STI) an employee expects in the coming year.

Career Moments are changes experienced by the employee during a given year. Career moments disrupt an employee’s ability to do his or her job by changing the nature of

roles, relationships, work knowledge, and/or benefits.

Discretionary Effort measures an employee’s reported willingness to go above and beyond the call of duty, such as helping others with heavy workloads, volunteering for

additional duties, and looking for ways to perform the job more effectively.

The Employment Value Proposition

The tangible rewards an employee receives for his or her work, such as compensation and benefits.

The opportunity a job or organization affords an employee, such as development experiences.

The characteristics of the organization, such as its size or market position.

The characteristics of the organization’s people, such as manager quality.

The nature of the work itself, such as the extent to which it matches an employee’s interests.

Intent to Stay measures an employee’s reported desire to stay with the organization, based on whether he or she intends to look for a new job within a year, frequently thinks of

quitting, is actively looking for a job, or has begun to take tangible steps such as placing phone calls or sending out résumés.

The IT Impact Index measures employed individuals’ ability to use the resources and capabilities officially provided by their employers for collaboration, analysis, and mobility.

The Misconduct Monitor measures employed individuals’ perceptions of ethical behavior and practices within their organization.

The Pay Perceptions Index measures six aspects of employee perceptions at their organizations—financial value, nonfinancial value, organizational fairness, manager fairness,

internal equity, and external equity—weighted by their impact on employee intent to stay and discretionary effort.

The Risk Tolerance Quotient measures employed individuals’ confidence in their ability to take risks to improve business outcomes both personally and for their current

organization.


DEFINITIONS OF EVP ATTRIBUTES

Attribute’s Name Definition

Business Travel The amount of out-of-town business travel required by the job

Camaraderie Whether working for the organization provides opportunities to socialize with other employees

Collegial Work Environment

Whether the work environment is team-oriented and collaborative

Compensation The competitiveness of the job’s financial compensation package

Coworker Quality The quality of the coworkers in the organization

Customer Prestige The reputation of the clients and customers served in performing the job

Development Opportunity

The developmental and educational opportunities provided by the job and organization

Inclusion/Diversity The organization’s level of commitment to having an inclusive and diverse workforce

Empowerment The level of involvement employees have in decisions that affect their job and career

Environmental Responsibility

The organization’s level of commitment to environmental health and sustainability

Ethics/Integrity The organization’s commitment to ethics and integrity

Formality of Work Environment

Whether the organization maintains a casual work environment

Future Career Opportunity The future career opportunities provided by the organization

“Great Employer” Recognition

Whether or not the organization’s reputation as an employer has been recognized by a third-party organization

Growth Rate The growth rate of the organization’s business

Health Benefits The comprehensiveness of the organization’s health benefits

Industry Desirability The desirability of the organization’s industry to the respondent

Innovative Work The opportunity provided by the job to work on innovative, “leading-edge” projects

Job Interests Alignment

Whether the job responsibilities match your interests

Originally developed in

2006, our EVP model

consists of 38 attributes

that drive attraction and

retention.

We compiled a master list of

more than 200 employment

characteristics and evaluated

it for similarity,

distinctiveness, universality,

and overall ratability, leading

to the consolidated list of 38

attributes.

The 38 attributes are

grouped into five categories:

rewards, opportunity,

organization, work, and

people.


DEFINITIONS OF EVP ATTRIBUTES (CONTINUED)

Attribute’s Name Definition

Level of Impact The level of direct impact the job has on business outcomes

Location The location of the jobs offered by the organization

Manager Quality The quality of the organization’s managers

Market Position The competitive position the organization holds in its market(s)

Meritocracy Whether employees are rewarded and promoted based on their achievements

Organization Size The size of the organization’s workforce

Stability The level of stability of the organization and the job

People Management The organization’s reputation for managing people

Well-Known Product Brand The level of awareness in the marketplace for the product’s brand

Product or Service Quality The organization’s product or service quality reputation

Recognition The amount of recognition provided to employees by the organization

Respect The degree of respect the organization shows employees

Retirement Benefits The comprehensiveness of the organization’s retirement benefits

Risk Taking The amount of risk the organization encourages employees to take

Senior Leadership Reputation The quality of the organization’s senior leadership

Social Responsibility The organization’s level of commitment to social responsibility (e.g., community service, philanthropy)

Technology Level The extent to which the organization invests in modern technology and equipment

Vacation The amount of holiday or vacation time employees earn annually

Work–Life Balance The extent to which the job allows employees to balance work and other interests

Originally developed in

2006, our EVP model

consists of 38 attributes

that drive attraction and

retention.

We compiled a master list of

more than 200 employment

characteristics and evaluated

it for similarity,

distinctiveness, universality,

and overall ratability, leading

to the consolidated list of 38

attributes.

The 38 attributes are

grouped into five categories:

rewards, opportunity,

organization, work, and

people.


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