Leadership & Engagement - Aon Hewitt


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Leadership & Engagement - Aon Hewitt

  1. 1. Leadership and Engagement The Impact of Leadership on Employee Motivation Engaged leaders engage others How do they achieve this? Aon Hewitt analysis of companies with strong Senior leaders in high-performing organisations financial results shows that one distinguishing are perceived as more effective by middle managers feature is the quality of their senior management. In and employees and it’s not because they are less particular we see that senior management’s own levels demanding. They set clearer and more aggressive of engagement are high and their ability to engage goals, address issues of underperformance and others in the organisation is strong. work at ensuring that everyone understands organisational strategy and goals. The chart below (Figure 1) shows that 95% of senior leaders in high performing organisations are engaged. Additionally, senior leaders in these high-performing This compares with 70% of senior leaders in other organisations are seen to be open, honest and organisations. trustworthy and able to create excitement for the future. This chart also shows that the gap between high-performing organisations and others widens Our research also reveals that senior leaders at lower organisation levels demonstrating that in high-performing organisations are known for senior leaders in high-performing organisations do the time they spend nurturing and developing a better job of engaging others, particularly middle future talent. management levels. Figure 1: Engagement by Level In Organisation 100% 90% 80% 70%Engagement 60% Best Companies 50% 40% Other Companies 30% 20% Source: Aon Hewitt Global Best Employer 10% Research 0% Senior Report to Senior Middle Team Leader Professional Team Member management Management Management
  2. 2. Case Study A Case Study BAon Hewitt compared leaders’ 360 degree feedback We compared individual survey items of highscores with engagement study data to understand engagement business areas with low engagementthe specific behaviours leaders were demonstrating areas and identified that the biggest differencesin highly engaged business units. were in the following leadership areas: ▪▪ InspirationWe discovered that leaders who took the followingactions had the highest engagement in their ▪▪ Motivationbusinesses, 14 % points higher than other areas: ▪▪ Acting ethically, honestly▪▪ Living and encouraging the company’s ▪▪ Providing development values—role modeling what the company believes is important in how people work We helped the organisation to focus on four specific together areas:▪▪ Focusing on strategy and implementation— ▪▪ More open, transparent and candid showing that they know how to run the business communication▪▪ Investing in people to build their skills ▪▪ Creating better messaging between Senior▪▪ Overcoming and removing barriers that prevent Leadership and employees change from happening ▪▪ Improving clear and granular feedback regarding performance, pay and promotions ▪▪ Better education of employees about opportunities within the organisationThe impact on business resultsThe knock-on impact on business results is alsocompelling. When satisfaction Engagement scores Total Shareholder with senior leadership also change Return (TSR) increases changes from from 47% to 72% from 1% to 19% 32% to 76%ContactsIf you would like more information, please contact either of the following consultants:Jenny Merry +44 (0) 1727 888395 jenny.merry@aonhewitt.comRita Veres +36 1 801 8011 rita.veres@aonhewitt.comDidier Burgaud +33 1 55 63 23 70 didier.burgaud@aonhewitt.comBrenda Broad +31 634 000 622 brenda.broad@aonhewitt.com© 2011 Aon Hewittwww.aonhewitt.com