2. Overview
Overview and Introduction
Diversifying Beyond
Traditional Boundaries
The Business Case: Employee Engagement, Economy and Results
Making Engagement Happen
Knowledge Sharing and Discussion
What’s next
Proprietary & Confidential | April 2014 2
3. Making Engagement Happen with: Olivier Hamelle - Director of Engagement Europe
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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
4. To what extent does engagement impact an organisation’s performance?
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A. Does not impact
B. Minimal
C. Average
D. To a large extent
5. Engagement
Motivation To what extent are
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Evolution of employee surveys
Satisfaction How satisfied are
employees with their
work and their
organisation?
employees motivated
to contribute to the
success of their
organisation?
To what extent does
engagement impact an
organisation’s performance
and are these inter-related?
Performance
To what extent do
employees behave, act,
contribute to the success of
their organisation?
6. Understanding the relationship between engagement and economics
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Economic
forces
Company
decisions
Company
performance
Employee
Engagement &
Performance
Macro-economic impact
Micro-economic impact
Behavioural-economic impact
7. Engagement is continuously moving
Global Engagement Results
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Middle East
Engagement
Results
2013
Source: Aon Hewitt database
8. The top drivers of employee engagement
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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
9. Economic forces explain why organisations take decisions
Organisations determine how decisions are taken
2 high performing clients in the technology sector
• Both started with over 80% employee engagement
• Both made a 15% headcount reduction
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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
10. Are you linking engagement to business results?
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A. Yes
B. No
C. We do not measure engagement
11. Organisations with high employee engagement deliver better results
Incremental Business Impact vs. Average Company (% Pt Difference from Average)
Sales Growth Operating Margin
Bottom Quartile Engagement
Top Quartile Engagement
Best Employers
Source: Aon Hewitt’s 2014 Trends in Global Engagement 11
12. 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.
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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
13. Business Case: Customer satisfaction is directly linked
Global provider of Government and Commercial outsourcing services
>100,000 employees across Europe, North America and APAC.
Customer Net Promoter Scores
Opportunity
Employee Engagement
(45-65%)
13
33
5 -7 -21
40
30
20
10
0
-‐10
-‐20
-‐30
a b
High Employee
Engagement
(65%)
Source: Serco and Aon Hewitt.
As published in “Nailing the evidence” University of Bath School of Management
Risk
Employee
Engagement
(30-44%)
Destructive
Employee
Engagement (<30%)
14. Engagement matters, how do companies make Engagement happen?
The Engagement Outliers
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Moderate Zone
Bottom Quartile
TSR = 50% Below
Average
TSR = At Par
with Average
Global Average
61%
Top Quartile
TSR = 50% Above
Average
Q1 46%
Q3 72%
Global Best
Employer
Average 78%
0 100
Source: 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
16. Success is about mobilising everyone!
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CEO
Leadership
Regional
Leadership
Country
Leadership
Managers /
Business Units
Employees
WHAT?
WHY?
HOW?
17. -‐
17
-‐
It’s critical to identify what matters
Triangulate Engagement Priorities
Importance Relative statistical impact on engagement
outcomes
Effectiveness Percent population with positive perceptions
Probability of Movement Distance from norm (adjusted to appropriate
population)
Category Level Driver Analysis
18. -‐
18
-‐
Case study: Making Engagement Happen
Mandate
• 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
Engagement increase of 15
points (from 48% to 63%)
between September 2011 and
May 2013
Deliverables
• 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
Benefits
Increased favorable perceptions
of senior leadership, career
development, communications,
and internal brand
19. 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!”
… Leadership Active Sponsorship
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20. Acting on employee feedback makes a real difference.
76%
20
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
-‐10%
Source: Aon Hewitt Employee Research Database
Engagement
Score
Difference
from
previous
year's
engagement
score
No
planning
session
31%
Planning
session
&
ac;ons
taken
39%
-‐6%
-‐20%
%
Engaged
22. 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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23. • Series of Insights: Making Engagement Happen
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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
Aon Hewitt Contact Details:
Astik Ranade
M:+971 50 653 8621
email: astik.ranade@aonhewitt.com
Olivier Hamelle
Email: olivier.hamelle@aonhewitt.com