HR Connect Asia Pacific

Transcription

1 APAC Secures Increase in Employee Engagement Aon Hewitt s recent Global Employee Engagement study finds that employee engagement levels and employees perceptions of their overall work experience are improving in a majority of regions worldwide. Aon Hewitt s 2014 Trends in Global Employee Engagement annual study, representing the perspectives of 7 million employees across more than 6,000 companies in 155 countries, indicates that Asia Pacific s engagement increased for the first time in two years (by three percentage points), thus reaching the global average of 61%. Globally, the average employee engagement level increased to 61% in 2013, up one percentage point from 2012 and three percentage points from Social, demographic, technological and macro-level economic changes have challenged business leaders to create agile, innovative organizations that can grow, said Dr. Ken Oehler, Aon Hewitt s global engagement practice leader. But creating this type of organization is impossible without having engaged employees, and companies with low to moderate engagement levels will struggle. Our study shows that organizations overcoming business and people challenges are investing in a culture of engagement built on performance focus, strong reputation, and superior leadership. These investments are resulting in stronger company performance. Aon Hewitt s study found that high-performing companies (known as Aon Hewitt Best Employers 1 ) drive better business outcomes. Marked by strong leadership, reputation, performance orientation, and employee engagement, these companies outperform average companies on sales growth (+6 points), operating margin (+4 points) and total shareholder return (+6 points). They even outperform those companies with high employee engagement alone Engagement Levels by Region With its forecasted population and growth, the region with the largest engagement increases in 2013 was Africa/Middle East (with a gain of eight percentage points). North America recovered from its 2012 decline (increasing by two percentage points), while Europe remained flat at 57% engagement. Though Latin America remains at the top of the engagement leader board worldwide, the region dropped four percentage points to 70% engagement. 1 Aon Hewitt conducts regional and market Best Employers studies in 35 countries around the world. Best Employers studies consistently demonstrate that high levels of employee engagement, a compelling employer brand, effective leadership, and a high performance culture translate into a committed and productive workforce that delivers stronger business results. Aon Hewitt Singapore Pte. Ltd. Co. Reg. No.: D 1

2 Drivers of Employee Engagement To identify the top five drivers of global employee engagement, Aon Hewitt conducted meta-analysis across nearly 3,000 organizations representing more than three million employees worldwide. Aon Hewitt Singapore Pte. Ltd. Co. Reg. No.: D 2

3 As in past years, Career Opportunities ranked as the highest driver of engagement globally. Managing Performance ranked second, followed by Organization Reputation. Pay, which ranked as the third highest driver of engagement in 2012, dropped to fourth. Communication rounded out the top five. While the top driver in Asia Pacific was consistent with the global rankings, employees in this region placed more importance on Pay and Brand Alignment, thus outranking Managing Performance, which was ranked second globally and fifth in both Asia Pacific and Europe. Millennials and professionals least engaged Baby Boomers continue to hold the highest level of engagement with 66% engaged, followed by Generation X (60%), and Millennials (56%). While differences in geography, culture and generation impact what drives engagement for employees globally, Aon Hewitt s research also shows that there is actually more harmony than discord, said Gabriela Domicelj, Regional Engagement Practice Leader, Asia Pacific. Universally, employees want to be part of an organization that offers career opportunities, provides rewards for performance and has a solid reputation. However, there is no one-size-fits-all solution. Understanding your employees and what drives them, and subsequently tailoring your communication and people initiatives to resonate best with respective groups, will pay dividends in making engagement happen. Consistent with Aon Hewitt s 2012 analysis, engagement levels continue to vary by job level. Executives and senior managers remain the most engaged, with 75% engagement globally. This group also saw the largest increase in engagement over last year with an increase of nine percentage points. Middle managers and frontline employees saw slight increases to 65% and 61%, respectively, while professional employees, such as engineers, lawyers and nurses, maintained their status of having the lowest level of engagement globally, with only 54% engaged (a decrease of one percentage point from 2012). Our research shows that raising the bar on employee engagement starts with the leaders themselves, said Oehler. The continuous rise in executive-level engagement may be a promising sign to come that we ll see an upward shift in the engagement levels of other employee segments in the near future. Call to Action Make Engagement Happen According to Aon Hewitt, evolving economic, technological, demographic and social changes are requiring businesses to rapidly respond to the myriad of extraordinary pressures they now face. Organizations have to look deeper and focus on engaging talent in the right core behaviors. To make engagement happen, Aon Hewitt experts believe organizations must: Understand talent trends. Understanding the global economic and technological trends affecting businesses is essential to building a relevant talent strategy. It is important to be Aon Hewitt Singapore Pte. Ltd. Co. Reg. No.: D 3

4 aware of the generational and demographical characteristics of employees, as these will in large part define the expectations these employees have of their company. Focus on the behaviors required for performance and business success. Organizations must clearly define for employees what engagement looks like. For many employers, there is an increasing need for agility, flexibility, and an ability to learn and adapt, said Oehler. Organizations can further encourage behaviors that signify engagement by aligning performance management, learning and development, and rewards and recognition with their expectations for success. Deliver on a compelling Employee Value Proposition (EVP). According to Aon Hewitt, there is a growing disconnect between what companies require, what they are offering, and what employees expect in return. Organization Reputation, being a top engagement driver, provides insight into how employees define value from their company. Aon Hewitt s research shows that companies that deliver on their EVP are more likely to: have employees who speak positively about their organization, retain people, and cultivate an environment of employees who aim for excellence. Create a culture of engagement. According to Aon Hewitt s study, an organization s health is based on employees perceptions of its brand, reputation, performance focus, and leadership excellence. To build a culture of engagement, organizations first must understand the composition of their workforce (generational, functional, and organizational) and build tailored programs that motivate and inspire the unique makeup of their employee base. Domicelj said, We believe that companies across Asia Pacific are taking employee engagement more seriously and investing more wisely in their workforces. The key driver for this focus on employee engagement improvement is the chronic talent shortage prevalent across many Asian markets. Build engaging leaders. Previous Aon Hewitt research has indicated that leaders own the employee engagement equation. They make critical decisions on the key factors within an organization that impact employee engagement, such as performance goals, pay and recognition, type and frequency of communication to employees, as well as work process and innovation. Leaders, who seize the opportunity to engage themselves and others, and holistically drive a culture of brand, reputation, performance and engagement, will help their teams and organizations achieve better business outcomes. Read Aon Hewitt s 2014 Trends in Global Employee Engagement report. Aon Hewitt Singapore Pte. Ltd. Co. Reg. No.: D 4

5 Contact Ken Oehler, Ph.D. is Global Engagement Practice Leader with Aon Hewitt. He can be reached at Gabriela Domicelj is Aon Hewitt s Asia Pacific Engagement Practice Leader. She can be reached at gabriela.domicelj@aonhewitt.com. Aon Hewitt Singapore Pte. Ltd. Co. Reg. No.: D 5