employee engagement trends 2013
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Why does employee engagement matter? What really drives engagement? And what makes people stay at your company? Discover the key drivers of engagement, enablement and retention and learn how to use them to empower your employees.TRANSCRIPT
Employee Engagement Forum Belgium - 2013
JUNE 6th, 2013 BRUSSELS
Welcome
01 Introduction Nico Van Dam (Hay Group)
3 © 2013 Hay Group. All rights reserved
15:30 Introduction
Nico Van Dam – Hay Group
15:45 Insights from Engagement@Work 2013 Research – Belgium
Nathalie Sterckx – Hay Group
16:20 Panel discussion Translating your employee engagement survey results
into an action plan with impact
Lucrèce Reybroeck – Corporate HR Director, Euroports
Patrick De Deken – Site Manager Antwerp, Ineos Oxide
Patrick Janssens – Member of Flemish Parliament
Moderator: Sonja Brouwers – Hay Group
17:10 Reception & Networking
Agenda for today
4 © 2013 Hay Group. All rights reserved
When engagement meets enablement, it translates into better business performance
4.5x revenue growth versus companies in the
bottom quartile on both
measures
54 percent reduction in voluntary staff
turnover
50 percent more likely to outperform
expectations
People are
Source: Based on linkage case studies using Hay Group’s
global normative database
5 © 2013 Hay Group. All rights reserved
Why does employee engagement matter?
CEO Top Challenges in 2013
1 Human Capital
2 Operational Excellence
3 Innovation
4 Customer Relationships
5 Global Political / Economic Risk
Top 5 strategies to meet
Human Capital Challenges
1 Grow Talent Internally
2 Provide Employee Training &
Development
3 Raise Employee Engagement
4 Improve Performance
Management Process and
Accountability
5 Retain Critical Talent Source: Conference Board 2013
Trend 1 Engagement levels are dropping
7 © 2013 Hay Group. All rights reserved
What have we done to our employees?
salary freezes & pay cuts...
salary moderation...
downsizing & company closures...
cost cutting...
more with less...
8 © 2013 Hay Group. All rights reserved
Engagement levels in Belgium are dropping ...
Belgium
Engagement
indicator
(% employees
willing to walk
the extra mile)
2010* 60%
2011* 55%
2012-13** 53%
Intention to stay
> 5 years
(% employees)
74%
65%
65%
(*) Source: Hay Group Insight Employee Opinion Databases
(**) Source: Hay Group Engagement@Work Research Belgium (n=1393)
Trend 2 Coming up... Massive talent shortages around the world
10 © 2013 Hay Group. All rights reserved
Massive talent shortages around the world...
“As of Jan.1, the oldest of
America’s baby boom
generation started turning
65 at a rate of 10,000 a day”
Source: NY Times, 2011
? As unbelievable as it may seem, this is
precisely the situation China now
confronts.
“Engineers topped the list of job titles
experiencing talent shortage”
Source: Manpower’s ‘2011 Global Talent Shortage Survey
Two thirds of CEOs believe they’re facing a limited supply of skilled candidates Source: PWC Annual CEO report 2011
One in five of all senior executives in the Fortune 500 is eligible for retirement now Source: Rothwell & Associates
China’s impending talent shortage “A labour shortage, with a population of
1.3 billion? As unbelievable as it may
seem, this is precisely the situation
China now confronts.”
Source: Online Asia Times
Trend 3 Coming up... Global talent exodus as economy picks up
12 © 2013 Hay Group. All rights reserved
Global talent exodus as economy picks up...
Global employee turnover
500
550
600
650
700
750
800
850
900
20.0%
20.5%
21.0%
21.5%
22.0%
22.5%
23.0%
23.5%
24.0%
2010 2011 2012 2013 2014 2015 2016 2017 2018
Total employees (right axis) Employee turnover rate (left axis)
Forecast
2014 will see the sharpest
increase in employee turnover
Source: Hay Group & OECD & CEBR analysis, April 2013
13 © 2013 Hay Group. All rights reserved
Emerging economies to lead turnover spike Belgium to follow in 2015
Timing and magnitude of global turnover spikes, 2012-2018
35%
30%
25%
20%
15%
10%
5%
Year of sharpest turnover increase
Mature economies Emerging economies
Em
plo
ye
e tu
rno
ve
r ra
te
2012 2013 2015 2014 2016 2017 2018 2019
Indonesia
Peru
Russia
Poland
Colombia
India Mexico
Brazil
China
USA Australia
Canada
UK
Spain
Netherlands
France
Italy
Germany
Belgium
Source: Hay Group & OECD & CEBR analysis, April 2013
14 © 2013 Hay Group. All rights reserved
Employee turnover trends for Belgium
12% in 2015
Turnover in Belgium will further
decline in 2013 to 11.1%
2014 will see a rise in turnover
again, with the sharpest rise
expected in 2015 as economic
activity picks up (12%)
Source: Hay Group & OECD & CEBR analysis, April 2013
15 © 2013 Hay Group. All rights reserved
Call for action…
02 Engagement@Work 2013 Research – Belgium Nathalie Sterckx (Hay Group)
18 © 2013 Hay Group. All rights reserved
Employee Effectiveness Model
Clear & promising direction
Confidence in leaders
Respect & recognition
Quality & customer focus
Development opportunities
Pay and benefits
Performance management
Authority and empowerment
Collaboration
Work, structure & processes
Resources
Training
Employee
Effectiveness
Engagement
Commitment
Discretionary effort
Enablement
Optimized roles
Supportive environment
Financial
performance
Customer
satisfaction
Attraction and
retention of talent
Employee
performance
Business Results
Drivers
19 © 2013 Hay Group. All rights reserved
View the results through multiple lenses
Dimensions of engagement and enablement 72%
Priorities and action planning
Drivers of engagement / enablement / retention
Comparison to benchmarks
Employee effectiveness profile
20 © 2013 Hay Group. All rights reserved
Employee Effectiveness Profile – Belgium
HIGH
DETACHED EFFECTIVE
INEFFECTIVE FRUSTRATED
LOW HIGH Engagement
En
ab
lem
en
t
Frustrated employees will… break through
break down,
or break free
14% 32%
39% 15%
21 © 2013 Hay Group. All rights reserved
Engagement Which dimensions score the highest?
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Pay and benefits
Training
Development opportunities
Work, structure and process
Collaboration
Performance management
Authority and empowerment
Confidence in leaders
Respect and recognition
Resources
Clear and promising direction
Quality and customer focus
47%
52%
67%
67%
72%
78%
% Positive
Benchmark
Belgium versus Europe
-1
-1
3
2
0
0
3
-1
-2
3
-1
0
22 © 2013 Hay Group. All rights reserved
Worldwide engagement
23 © 2013 Hay Group. All rights reserved
Enablement Which dimensions score the highest?
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Pay and benefits
Training
Development opportunities
Work, structure and process
Collaboration
Performance management
Authority and empowerment
Confidence in leaders
Respect and recognition
Resources
Clear and promising direction
Quality and customer focus
51%
55%
55%
64%
64%
68%
% Positive
Benchmark
Belgium versus Europe
-1
-1
3
2
0
0
3
-1
-2
3
-1
0
24 © 2013 Hay Group. All rights reserved
Employee effectiveness Which dimensions score the highest?
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Pay and benefits
Training
Development opportunities
Work, structure and process
Collaboration
Performance management
Authority and empowerment
Confidence in leaders
Respect and recognition
Resources
Clear and promising direction
Quality and customer focus
47%
51%
52%
55%
55%
64%
64%
67%
67%
68%
72%
78%
% Positive
Benchmark
Belgium versus Europe
-1
-1
3
2
0
0
3
-1
-2
3
-1
0
25 © 2013 Hay Group. All rights reserved
What really drives engagement?
Clear & promising direction
Confidence in leaders
Respect & recognition
Quality & customer focus
Development opportunities
Pay and benefits
1. Respect and recognition
2. Confidence in leaders
3. Clear and promising direction
4. Development opportunities
5. Quality & customer focus
6. Pay and benefits
0.600
0.517
0.488
0.477
0.423
0.399
R²
26 © 2013 Hay Group. All rights reserved
What really drives enablement?
1. Authority and empowerment
2. Work, structure & processes
3. Collaboration
Performance management
Authority and empowerment
Collaboration
Work, structure & processes
Resources
Training
0.551
0.536
0.529
0.520
0.486
0.377
R²
4. Performance management
5. Resources
6. Training
27 © 2013 Hay Group. All rights reserved
What makes people stay?
What makes
people stay?
Trust in company
and leadership
Environment
for success
Room for
growth
A fair exchange Authority
and influence
28 © 2013 Hay Group. All rights reserved
Retention – There is some work to do - Belgium
76%
57%
49%
Concern over
direction and goals Unsure about achieving
career objectives
Concern over fairness
compensation
Enough authority to
effectively perform their roles
Belief firm is effectively
managed and well run What makes
people stay?
Trust in company
and leadership
Environment
for success
Room for
growth
A fair
exchange
Authority
and influence
37%
65%
29 © 2013 Hay Group. All rights reserved
Summary: Key drivers of Engagement - Enablement - Retention
Respect & recognition
Confidence in leaders
Clear and promising direction
Engagement
Authority & empowerment
Work, structure & processes
Collaboration
Enablement
Room for growth
Authority & influence
Perceived fairness of pay
Retention
03 Panel discussion Moderator: Sonja Brouwers (Hay Group)
32 © 2013 Hay Group. All rights reserved
Once questionnaires are sent in….
Set priorities and come up with a clear plan
Keep talking with your employees
Create ownership amongst line managers
Lucrèce Reybroeck Corporate HR Director - Euroports
Patrick De Deken Site Manager Antwerp – Ineos Oxide
Patrick Janssens Member of Flemish Parliament
04 Conclusion Nico Van Dam (Hay Group)
Employee Engagement Forum
Thank you