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1、Does being a Top Employer make a difference in employee engagement?,How-And Why-Top Employers Are Building An Oasis for Talent,Canadas Top EmployersMarch 22-23,2007,2,Why are we all here?,Public recognition of workplace excellenceBecause the CEO said it was important Because people make the differen
2、ce between success and failure,3,Why be on the list?,Easier to attract good candidatesManagement and shareholder recognition of what your HR programs are all aboutShows your current and future employees the kind of workplace you want to be or becomeA visible sign that helps shape your reputation as
3、a good employer Recognition that your internal employment deal supports your external customer brand,4,Why CEOs are placing Talent Management front and centre,A global playing field is heightening competition for business and talent The competition for leadership talent among top companies has inten
4、sified,and companies are looking at new ways to attract and retain top talent“People-driven”enterprises are setting themselves apart in terms of overall business performanceWhile the worlds population will continue to grow,demographic projections point to a coming skills shortage in such areas as ma
5、nagement,customer service and research,5,Organizations have identified critical gaps in retaining current leaders and growing future leaders,Developing existing leadership talent,Attracting the right leadership talent,Retaining the right leadership talent,Engaging leadership talent,Identifying exist
6、ing leadership talent,Deploying existing leadership talent,Lack of leadership capability at senior levels,Leadership Talent Management Challenges Current and Future,Source:2006 Towers Perrin Talent Management Survey,6,The world in numbers,Billions of People,Percentage in Developed World,19%18%17%16%
7、15%14%13%,7,People systems and programs,Employeebehaviour,Customerbehaviour,Financial performance,EngagementValuesCustomer serviceProductivity/operationalAdaptabilityRetentionLearning,Customer satisfactionCustomer loyaltyCustomer value,ROIRevenue growthNet earningsStock performance,StaffingCompensat
8、ionBenefitsPeople developmentWorkforce relationsOrganizational managementWork environment,Leading organizations make the critical link between people,programs and results,“People systems”should start from and support the organizations specific performance goals,8,Towers Perrin and Canadas Top 100 sh
9、are the view that:,Employee engagement is a fundamental metric of company“health”and of the day-to-day work experienceIncluding such a measure as part of the overall assessment of a company as a place to work makes great senseTowers Perrin has a well-tested(externally validated)and relatively simple
10、 model for measuring engagement,9,Understanding what engagement means,how its measured and what drives it,We define engagement as employees willingness and ability to contribute to company success,in large part by delivering discretionary effort on a sustained basisWe measure it using nine items tha
11、t capture employees emotional and rational connections to work Respondents scores across all nine items determine their level of engagement:high,moderate or lowWe derive the drivers of engagement the elements of the work environment that influence it via statistical analysis,10,Employee engagement i
12、s critical in driving the way people behave at work,I can positively impact quality,I can positively impact costs,I can positively impact customer service,I can positively impact overall profitability,I can positively impact revenue growth,Source:Towers Perrin Global Workforce Study:Canada,11,More e
13、ngaged employees are more likely to stay with the organization,Highly Engaged,Disengaged,Moderately Engaged,(Canadian data),Source:Towers Perrin Global Workforce Study:Canada,12,Operating Margin With 5%,10%,15%Change in Engagement,%Change in People Engagement,Current,11.4%,5%,11.8%,10%,12.2%,15%,12.
14、6%,For a$3B company,thats$24,000,000*,Source:Towers Perrin 2003 Talent Report.Financials are illustrative and do not represent any specific company,10%,14%,18%,22%,26%,30%,LOW,HIGH,Engagement Index Score,Revenue Growth,Engagement Index Score,62%,64%,66%,68%,70%,72%,74%,LOW,HIGH,Cost of Goods Sold,SG
15、&A,Note:Employee engagement strongly correlated to intention to stay.,Intent to Stay,19%,21%,23%,25%,27%,LOW,HIGH,Employee engagement and financial performance are highly correlated,13,The Top 100 Employers Pilot Engagement Survey-2006,Six organizations volunteered to join us for the pilotFrom these
16、 organizations,we gathered 1,667 employee responses As a benefit of participation,each organization received a report of their individual resultsAggregate results were not releaseduntil now,14,How did they do?,Canada Workforce,Top 100 Applicants(Pilot),High(17%),Disengaged(17%),Moderate(66%),High(36
17、%),Disengaged(6%),Moderate(58%),15,What Drives Engagement in Canada?Canada Workforce vs.Top Employers Pilot 2006,Favourable Score:,16,100%90%80%70%60%50%40%30%20%10%0%,High Favourability Higher Impact on Engagement,Strength of relationship between item and Employee Engagement,%Favourable,Prioritizin
18、g by relationship to engagement,High Favourability Lower Impact on Engagement,15,28,25,10,39,18,INCREASING,Low Favourability Higher Impact on Engagement,Low Favourability Lower Impact on Engagement,41,21,Best Practice:Diagnosing Engagement,17,Build workforce plans that align with the long-term busin
19、ess growth strategy,Workforce required to execute business plan,Workforce currently in place and available in the market,Workforce Demand,Workforce Supply,AttractionEngagementRetention,Sourcing,deployment,people processes/programs,1,2,3,Identify key drivers to ensure workforce supply and desired beh
20、aviours,4,Align talent strategy and optimize processes/programs,Analyze business plans to understand required workforce,Identify potential workforce gaps,Business plan and required capabilities,Best Practice:Strategic Workforce Planning,18,Understand employee preferences to“optimize”ROI on your tota
21、l rewards,KEYA)Optimal cost savings:The reward mix that maximizes cost reduction with a neutral impact on employee engagementB)Optimal reallocation of current investment:The reward mix that reallocates the current total spend across programs in a way that maximizes employee engagementC)Optimal inves
22、tment:The reward mix beyond which there are diminishing returns in employee engagement,ILLUSTRATIVE,Best Practice:Optimizing rewards,19,Define career models,clarify paths and calibrate rewards,Best Practice:Improving career framework,20,To truly influence engagement(and workforce effectiveness)you n
23、eed a holistic approach,21,Sustaining a Top 100 Culture,Employee engagement is rapidly emerging as a key indicator of business performanceLeading organizations will use engagement metrics,including performance relative to key drivers,as a roadmap for actionThe road will curve as the drivers of engagement change over timeTop employers will keep ahead of the curve by paying close attention to the evolving needs of their employees,22,Questions?,Kevin A(416)960-2712Charlie W(617)638-3942,
