aon hewitt employee engagement 2011 presentation

17
September 2011 Managers – a critical link in employee engagement

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Companies must use managers in the engagement process, urges Aon Hewitt Latest research reveals the missed opportunity of empowering middle managersEmployers must take action to motivate and equip their managers to act on engagement surveys says Aon Hewitt, the global human resource consulting and outsourcing business of Aon Corporation (NYSE:AON). Data from Aon Hewitt's European Engagement database shows that the vast majority of employees across Europe believe that their employers view employee engagement as a tick box exercise, with only 18% of employees strongly believing that survey results will be will be acted upon. To gain a better understanding of the role that managers could and should play, Aon Hewitt ran a European research project in June 2011, which canvassed the views of more than 700 managers across 10 European countries, resulting in the report Managers: Your Strongest or Weakest Link in Driving Employee Engagement? The report shows that nearly half (47%) of managers indicated that they spend only two to five days a year on activities relating to their annual engagement survey.

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Page 1: Aon hewitt employee engagement 2011 presentation

September 2011

Managers – a critical link in employee engagement

Page 2: Aon hewitt employee engagement 2011 presentation

2

We continue to live in uncertain times……

15%

37%

46%

25%

32%

50%

29%

53%

46%

40%

30%

40%34%35%

24%26%

31%28%

30% 31% 31%30%31%

41%

46%

38%

0%

10%

20%

30%

40%

50%

60%

Histo

rical

Tre

nd

July

-Sep

08

Oct

-Dec

08

Jan-M

ar 09

Apr-Jun 0

9

July

-Sep

09

Oct

-Dec

09

Jan-M

ar 10

Apr-Jun10

Jul-S

ep10

Oct

-Dec

10

Jan-M

ar11

Apr-Jun11

Decrease Increase

Percent of Organisations with an Increase or Decrease in Engagement

Source: Aon Hewitt‘s Global Employee Engagement Database

Page 3: Aon hewitt employee engagement 2011 presentation

3

Managers definitely have a role to play

“The line manager is the lens through which I see the company and the company sees me.”

Chris Bones (Engaging for Success 2009)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Providingsupport tosucceed

Giving valuablefeedback

Addressingunder-

performance

Listening to andimplementing my

ideas

Best Employer

The Rest

% of employees with strong

positive perceptions of

managers…

Page 4: Aon hewitt employee engagement 2011 presentation

4

But they are under pressure

Market uncertainty

Customer confidence

Mergers & acquisitions

Regulatory changes

Influencing consequence

s

Line Manager

Making sense of corporate messages

Page 5: Aon hewitt employee engagement 2011 presentation

5

Digging further into the manager experience……

>700 managers across Europe

All functions (except HR)

Approx 40% are managing more than 20 people

Page 6: Aon hewitt employee engagement 2011 presentation

6

Some key findings

Managers are more likely to act on engagement when:

They themselves are engaged!

They’ve seen the impact for themselves

They get support

and encouragement

They are clear about what is

expected of them

Page 7: Aon hewitt employee engagement 2011 presentation

7

Engaged managers are more likely to take action

Source: Aon Hewitt European Manager Survey 2011

27%

52%

63%

0%

10%

20%

30%

40%

50%

60%

70%

I did not review the results

I reviewed the results I reviewed the results and took action

% of engaged

managers

Page 8: Aon hewitt employee engagement 2011 presentation

8

How engaged are your managers?

50%

45%

68%69%

66%

53%

60%62%

59%

55%

50%50%

40%

45%

50%

55%

60%

65%

70%

2008 2009 2010 2011

Executives/Senior Managers Middle Managers Front-line Employees

Engagement levels by job type

Source: Aon Hewitt‘s Global Employee Engagement Database

Page 9: Aon hewitt employee engagement 2011 presentation

9

What’s needed to engage managers today?

20081.Career opportunities2.Recognition3.Effective work practices4.Inspiring leadership5.Fair pay

20091.Career opportunities2.Fair pay3.Inspiring leadership4.Effective work practices5.Recognition

20101.People/HR practices2.Career opportunities3.Organisation reputation4.Innovation is supported5.Communication

20111.Delivery on promises2.Effective work practices3.Innovation is supported4.Fair pay5.Career opportunities

2008 2009 2010 2011

Page 10: Aon hewitt employee engagement 2011 presentation

10

Seeing is Believing Case Study: Team Engagement and Customer Promoters

60%

37%40%

10%

0%

10%

20%

30%

40%

50%

60%

% Promoters NPS

Teams in Aon Hewitt High Performance Zone for Engagement

Teams outside of the Aon Hewitt High Performance Zone for Engagement

Page 11: Aon hewitt employee engagement 2011 presentation

11

Clear expectations make a difference

45%

75%

0%

10%

20%

30%

40%

50%

60%

70%

80%

I have not been set clearexpectations

I have been set clearexpectations

% of managers

taking action

Page 12: Aon hewitt employee engagement 2011 presentation

12

DNA of an engaging manager

• is tuned-in to people

• is an effective performance coach

• empowers people to grow

• matches strengths to opportunities

• promotes two-way communication

• does what they say they’re going to do

• builds team spirit

• is hands-on with their teams

• is resilient

A truly engaging manager ..

Page 13: Aon hewitt employee engagement 2011 presentation

13

Clear accountability is needed too!

17%

35%

47%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Change in EngagementScore

Implementation of ActionPlans

Both

% of managers

Page 14: Aon hewitt employee engagement 2011 presentation

14

Support from HR is essential

38%

75%

0%

10%

20%

30%

40%

50%

60%

70%

80%

I have not been given sufficientsupport from HR

I have been given sufficientsupport from HR

% of managers

taking action

Page 15: Aon hewitt employee engagement 2011 presentation

15

Senior leaders need to be role models

44%

73%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Senior leadership does not seta positive example

Senior leadership sets apositive example

% of managers

taking action

Page 16: Aon hewitt employee engagement 2011 presentation

16

Some practical advice

• Focus on the engagement priorities for your managers

• Look to establish the links between engagement and team performance

• Clarify what engaging manager DNA looks like in your organisation and make this explicit

• Include engagement into manager training and induction programs

• Set-up forums and support networks

Page 17: Aon hewitt employee engagement 2011 presentation

Jenny MerryUK Engagement Practice LeaderTel: 01727 [email protected]