Copyright © 2012 Aon Hewitt Limited. All rights reserved.Aon Hewitt Limited, 8 Devonshire Square London EC2M 4PL Registered in England No. 4396810

Trends in Global Employee Engagement 2012

From credit crunch… to talent crunch

28 June 2012

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Agenda

Introductions

The global picture

Focus on Europe

How successful organisations are responding to the ‘crunch’

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Global landscape: uneven & slowing growth

Global growth projected at 3.5% in 2012

Over the next 13 years, global growth will be 0.5-1.0% below the growth rate from 1995-2008

Growth rates vary significantly by region:

– Advanced economies* will slow down from 1.6% in 2011 to 1.3% in 2012

– Emerging economies** will slow down from 6.3% growth in 2011 to 5.6% in 2012

Source: The Conference Board, Global Economic Look 2012 *Advanced Economies: U.S., Japan and EU prior to 2004 **Emerging Economies: China, India, Latin America, Middle East, Africa, Central and Eastern Europe, Russia and other CIS

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European workforce projections

Population projections show increasing age & diversity workforce trends emerging over time

Source: Lanzieri, G. (2011). “Fewer, older and multicultural? Projections of the EU populations by foreign/national background”, Eurostat Methodologies and Working Papers.

Projected share of the population with foreign background by age group (%)

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In this environment organisations need to:

Maintain efficiency

Drive growth

Foster more innovation

Integrate acquired businesses better / faster

Include and involve an increasingly diverse workforce

Protect against talent flight as the economy improves

Respond rapidly to local opportunities while operating globally

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The global picture

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Aon Hewitt “Trends in Global Employee Engagement 2012” research

Over 3,100 organisations represented

9.7 million employees covered

Regions include: Asia Pacific, Europe, Latin America and North America

Diverse range of company sizes and industries

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Global engagement trends

• Global engagement increased from 56% (2010) to 58% (2011)

• Four out of ten employees are still not engaged worldwide

• Engagement levels are stabilizing globally but shifting across regions

55%

51%

52%

71% 72% 71%

67%

64%64%

60%

55%

58%

2009 2010 2011

Asia Pacific

Europe

Latin America

North America

Global

59% 56%

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Top engagement drivers

Shaded cells show the top three scores for each region / globally

2011 Top 5 Regional Drivers

Global 2011 APAC Europe Latin America North America

Career Opportunities 1 1 1 2 1

Recognition 2 3 5 1 4

Organization Reputation 3 2 3

Communication 4 4 3 5

Managing Performance 5 2

Pay 4 5

Innovation 3

Brand Alignment

People / HR Practices 2

Career Aspirations 5 4

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Focus on Europe

11Source: Aon Hewitt Employee Engagement Database

Divergent engagement between Managers & Employees

While engagement for roles with people management responsibility is increasing the engagement of professional and front line employees is dropping

Engagement scores per Level in Europe

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Zoom in: European markets

47%

64%

53%51%

46%48%50%

62%

55%

44%47%

50%

61%64%

48%

38%

50%49%47%

53%

0%

10%

20%

30%

40%

50%

60%

70%

Austria

Belgium

Czech

Rep

ublic

Denmark

France

German

yGree

ceHun

gary Italy

Netherl

ands

Poland

Roman

iaRus

siaSlov

akia

Spain

Sweden

Switerla

ndTurk

eyUkra

ine

United

Kingdo

m

2011

• Engagement scores vary strongly between European countries

• Countries with high scores are Russia, Ukraine, Hungary, Romania and Greece

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Key driver perceptions in 2011

Europe Asia Pacific North America Latin America

Career Opportunities 36% 47% 52% 57%

Organisational Reputation 47% 56% 60% 68%

Innovation 42% 56% 50% 59%

Communication 40% 46% 38% 46%

Recognition 39% 45% 50% 46%

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Responding to the ‘crunch’

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Advice from Aon Hewitt Best Employers

Create a culture of engagement through leadership

“Invest time to obtain top leadership buy-in”

“We established a leadership style program based on hand-picked managers whose teams have high engagement scores”

“We have a role model program with strong people managers as buddies”

Connect with your employees“Listen to your employees, be transparent about why certain business decisions have been made and ensure timely communications”

Recognise peoples’ efforts and performance

“Ensure recognition is fair, transparent and goes beyond the immediate team”

Create employee growth opportunities

“Develop more creative or less traditional growth opportunities”

Select employees pre-disposed to engagement

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Understand the key priorities across your organisation

Focus on 2-3 things that will make a difference

Execute well (and communicate!)

Closing messages

“This is my third company and numerous cycles doing surveys, and I’ve only seen one really good success story. The entire organisation (11,000 people) dived into action- planning. They mobilised a lot of people. It became the driving force – every conversation, everything. It had the attention and focus of leadership.” HR Director

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Aon Hewitt Global Footprint

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More information

Jenny Merry

jenny.merry@aonhewitt.com+44 (0)172 788 8395

Laura Heathcock

laura.heathcock@aonhewitt.com+44 (0)207 086 9184

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Copyright © 2012 Aon Hewitt Limited. All rights reserved.Aon Hewitt Limited, 8 Devonshire Square London EC2M 4PL Registered in England & Wales No. 4396810

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