India engagement enablement Press Release


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Employee engagement & enablement study 2012.
Engagement is the result organizations achieve when they stimulate employees' enthusiasm for their work and direct it toward organizational success.
Employees are 'enabled' when jobs and work environments support them to channel their enthusiasm into productive action

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India engagement enablement Press Release

  1. 1. News Release Depressed Employee Engagement Stunts Global Business PerformanceIndian employees looking for an engaging workplace, 60 per cent of them planning toleave their present jobs within five years • Just two-thirds of worldwide employees are engaged • Employee engagement levels in India stand marginally higher than the Asia average, at 68 per cent • 58 per cent of employees in India set to exit their present organizations before 2017 • Global firms lose ground to the highest performing organizations, where engagement levels found to be 75 per cent • Company loyalty hits five-year lowNew Delhi, July 12, 2012: Global firms’ performance continues to be stunted, withmore than a third of employees across the world unwilling and unable to go the extramile for their organization, according to new research from global managementconsultancy Hay Group.The study shows that this year on average 66 per cent of workers feel engaged– rebounding marginally over the last twelve months, but still falling significantlybehind the world’s highest performing companies (which boast engagement levels of75 per cent).More than a third of employees also reported that they are unable to performoptimally, with an average of 33 per cent of workers claiming that barriers put inplace by the organization are preventing them from excelling at work. Indianemployers find themselves in the same boat, with one in every three employeesworried about workplace barriers inhibiting their capability to support the organizationfor success.Hay Group examined annual engagement1 and enablement2 levels in 1,610organizations across 46 countries, representing almost five million employees.Worldwide employee engagement levels have made only a tentative recovery fromlast year’s five-year low. Global engagement levels had been falling consistentlysince 2007, reaching just two-thirds (65 per cent) last year.Mark Royal, senior principal at Hay Group and author of The Enemy of Engagement,comments: “Over the past few years we have seen employee engagement acrossthe world decline or stagnate at 2008 levels – well behind the best performingcompanies – at the very point when organizations around the world are needing todeliver better performance.”Says Gaurav Lahiri, Managing Director at Hay Group India: “Measuring how engagedyour staff really is with your organization could make for frightening reading. But,these days more than ever, employee engagement must be part of any company’s 1
  2. 2. News Releasekey performance indicators and should be tied into decisions that affect return oninvestment.”Employee Engagement StagnatesLevels of engagement in Asia stand at 63 per cent, which represents a minor rise ofone percentage point over the last twelve months. India has performed marginallyhigher than the Asia average, with more than two in every three employees found tobe effectively engaged.Europe and Pacific face the greatest threat from employee disengagement, withengagement levels falling to a five-year low of just 63 per cent of the workforce. Inthe Middle East, engagement has stagnated at 64 per cent, with no change since theheight of recession in 2008.Gaurav Lahiri comments: “Faced with a challenging global economic climate, manyorganizations in the region are needing to do more with less, giving them goodreason to focus on enhancing levels of employee engagement. To get the most fromengaged employees, motivation to contribute has to be matched with the ability tocontribute – what we call ‘employee enablement’.”Asian employees less engaged than their counterparts in the Middle East andAmericasDespite the alarming engagement figures at the global level, Asian organizations lagfurther behind their global counterparts by three percentage points, at 63 per cent.The Americas present a brighter picture. Engagement levels in South American firmsnow stand at nearly three quarters (73 per cent) of the workforce, on par with 2008.Engagement in North America has fallen by three percentage points since 2009, butstill remains ahead of global averages at 69 per cent.An impressive three quarters (74 per cent) of South American workers feel motivatedto go beyond their formal job responsibilities, compared with just 66 per cent ofemployees in Europe and the Middle East.South America also enjoys the highest levels of employee pride, with more than fourin five employees (86 per cent) feeling proud to work for their companies.Firms Holding Employees BackHay Group’s unique data also shows that employees across the globe are notproperly supported at work – and are unable to perform to their full potential as aresult.Less than two thirds of employees around the world (62 per cent) feel that conditionsat work allow them to be as productive as they could be. This falls to a low 58 percent in Europe and the Middle East. Employees based in India are slightly better off;however, more than a quarter admit that they could be more effective if workplaceconditions allow for greater productivity.Even in South America – where the majority of employees feel motivated to gobeyond their formal job responsibilities (74 per cent) – only 61 per cent feel as if their 2
  3. 3. News Releasecompanies provide the right environment for them to perform at their best. This is atrend evident across all global regions.Mark Royal comments: “We are seeing a stubborn gap between the discretionaryeffort employees across the world are willing to put into their work and the level ofsupport available to help them excel. For organizations looking to harness the fullproductivity of their workforce, leaving this pool of motivation untapped is a wastedopportunity.“To truly drive productivity, business leaders must understand the role they have toplay in enabling high levels of performance – removing the barriers that are holdingtheir employees and their organizations back.”Gaurav Lahiri explains: “In our view, the ability of engaged individuals to makemaximum contributions has two key components. The first, personal utilization,requires that employees are effectively matched to their roles, such that their skillsand abilities are put to best use. The second component, an enabling environment,involves structuring work arrangements such that they facilitate, rather than hinder,individual productivity.”Company Loyalty PlummetsLong-term commitment is a casualty of low levels of employee engagement andemployee enablement according to Hay Group’s research, with commitment levelsfalling to a five-year low in every major region.More than two-fifths (44 per cent) of the global workforce intend to leave theiremployers within five years, with more than one in five employees (21 per cent)intending to leave in less than two years. A much larger majority of employees inIndia (58 per cent) have acknowledged their intent to exit their present organizationswithin the next years, with about one in every three planning this shift within twoyears itself.At the regional level, the Pacific finds itself with the lowest level of employeecommitment, with 54 per cent of the workforce intending to leave their companieswithin five years. Employee commitment is highest in North America with three in fiveemployees (62 per cent) intending to stay with their employer for five years or more.However, commitment has declined by five per cent since last year.Mark Royal comments: “Low engagement and enablement levels are depressingcompany performance worldwide. However, an important challenge to business isthe looming threat of increased employee turnover.“While tight labor market conditions have reduced staff churn, there is a buildup ofrestless and frustrated employees, which now amounts to more than two fifths ofcompanies’ workers.“A small improvement in the labor market is likely to provoke a dramatic rise inemployee mobility. Unfortunately, it is often the best performing, highest potentialworkers who are prepared to vote with their feet if the organization doesn’t give themwhat they need to deliver.” 3
  4. 4. News ReleaseGaurav Lahiri adds: “It is a worrying sign that Indian organizations, despite averaginghigher engagement levels than the Asia average, find that only about 40 per centintend to remain loyal to their present organizations in the next five years. Frustratedemployees are unlikely to persist over the long-term in this state. Clearly, theopportunities currently available for organizations to improve the bottom line byactively engaging the workforce have never been so good – and the time to act isnow.”endsPlease note: this study should be credited to ‘global management consultancy, HayGroup’, and not ‘Hay’ or ‘Hays’, which are separate and unrelated organizations.For more information, please contact:Nidhi Mehra KapoorEmail: nidhi.mehra@haygroup.comMob: +91 (124) 417 7400Notes to Editors1. Engagement is the result organizations achieve when they stimulate employees enthusiasm for their work and direct it toward organizational success. It includes: • Commitment. Employees are proud to work for the organization, would recommend it as a place to work and express an intention to stay. • Discretionary effort. Employees are willing to go the extra mile to help the organization succeed.2. Employees are enabled when jobs and work environments support them to channel their enthusiasm into productive action. Enablement includes: • Optimized roles. Jobs make good use of skills and abilities and work is challenging and interesting. • Supportive environments. The workplace is free from significant barriers to getting the job done and employees feel as productive as they can be.About the studyThe study is based on information from Hay Group’s Insight database, whichincludes information from 1,610 organizations across 46 countries, representing4,55,9762 employees.About Hay GroupHay Group is a global management consulting firm that works with leaders totransform strategy into reality. We develop talent, organize people to be moreeffective and motivate them to perform at their best. Our focus is on making changehappen and helping people and organizations realize their potential.We have over 2600 employees working in 85 offices in 49 countries. Our insight issupported by robust data from over 100 countries. Our clients are from the private,public and not-for-profit sectors, across every major industry. For more informationplease contact us through!/HayGroupIndiaLinkedin Group: ###   4