Stern times call for better leaders
Stern times call for better
leaders
Latest research
shows engagement and leadership the keys to success in
difficult times
Sydney, 3 June 2013:
While all businesses face similar challenges in times of
economic uncertainty, some are far better prepared than
others to survive and even prosper – despite the
difficulties. Those businesses are the ones with higher
levels of employee engagement.
This is one of the topline findings of the 2013 Aon Hewitt Best Employers study for Australia and New Zealand. The report is the latest in the headland people performance research series that’s been run since 2001. The 2013 study includes data from a survey of over 100,000 employees from 125 organisations. This year, 19 companies across Australia and New Zealand have been accredited as Aon Hewitt Best Employers: those with the highest levels of employee engagement and outstanding people practices.
“All employers are confronted by the same set
of economic circumstances, but our Best
Employers are able to do a substantially better
job of leading and managing the workforce to create high
levels of engagement. This mitigates many of the economic
issues they face – leading to better results,” said
Stephen Hickey, Employee Engagement Lead at Aon
Hewitt.
“Best Employers achieve
four times higher profit growth than other organisations,”
said Mr Hickey. “And, when it comes to total shareholder
return, we’re talking 50% above average
levels.”
Despite recent economic uncertainty,
Best Employers are maintaining their
focus on employee engagement – and reaping the
rewards.
“It is the decisions that an organisation’s
leaders are making about how to lead it when times are tough
that can dictate the levels of engagement – which in turn
affect how well a company is likely to perform,” explained
Mr Hickey.
He went on to say that most organisations
today are seeking to restore growth from low cost baselines
– achieving more with less. And, he asserted, this takes a
very different set of leadership skills than those that
applied before the GFC.
“In essence, while we continue
to see Best Employers engaging,
building leadership and taking a differentiated position in
the employment market, the strategy for delivery has evolved
over the last few years. Difficult times are not the factor.
It’s how we respond to them that counts.”
Mr Hickey
cited a number of examples from the 2013 Aon Hewitt
Best Employers that support this
position. These include the growing move to develop people
leadership capability as a core competency within an
organisation rather than a secondary focus; a more concerted
push to connect middle managers to the broader business
strategy; and a greater willingness to identify and single
out an organisation’s best performers for additional
rewards.
“All of these measures are likely to boost
engagement. And with improved engagement comes increased
discretionary effort, increased retention, an increased
desire among employees to strive to do their best,” said
Mr Hickey. “There is also the considerable benefit of the
brand differentiation that Best
Employers enjoy. In a tight labour market they
become employers of choice. They are able to hold on to the
best people – and those people are able to reap the
material and career satisfaction rewards of working with
passionate and engaged colleagues.”
By way of example,
Mr Hickey cited Marriott Hotels & Resorts, which achieved
Best of the Best status, as an
organisation that has demonstrated excellence in a number of
key areas.
This includes its ability to promote a highly
aligned culture that supports the overall company aim of
consistent and superior customer service. The company has
also had to address attracting and retaining quality
employees despite local skills shortages and relatively high
wage costs at a time of global cost constraint and
productivity focus.
The 2013 Aon Hewitt Best
Employers are:
Bristol-Myers Squibb, Chorus,
Cooper Grace Ward Lawyers, Employment Innovations, Express
Data, FedEx Express (New Zealand), Fiat Chrysler Group,
Frucor Beverages Australia, Frucor Beverages New Zealand,
Hilti (Aust.) Pty Ltd, Marriott Hotels & Resorts, Millward
Brown Australia, Peoplebank Australia Limited, Shire
Australia Pty Ltd, Silver Chef Ltd, Smartsalary Pty Ltd,
STIHL Pty Ltd, The Wrigley Company Limited and Wood & Grieve
Engineers.
Marriott Hotels & Resorts won the Aon Hewitt
2013 Best of the Best
accreditation.
Key findings from the Best
Employers study for Australia and New Zealand
include:
• Best Employers
achieve four times higher profit growth than other
organisations
• Organisations with high employee
engagement achieve 50% higher Total Shareholder Return
outcomes than other organisations
• In 2012 and 2013,
38% of organisations improved their level of employee
engagement
• 83% of Best
Employers have an explicit employer brand,
compared to only 39% of other
organisations.
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About Aon Hewitt Best Employers in
Australia and New Zealand
Aon Hewitt
Best Employers Australia and New
Zealand is the preeminent research and accreditation program
into the people practices of high performing
organisations.
Conducted in Australia and New Zealand
since 2001, the 2013 study involves data from 125
organisations and over 100,000 employees.
The report
provides the specific set of actions and benchmark
comparisons that an organisation needs to develop and
sustain a high performance workforce.
About Aon
Hewitt
Aon Hewitt is the global talent,
retirement and health solutions business of Aon plc (NYSE:
AON).
Aon Hewitt empowers organisations and individuals
to secure a better future through innovative talent,
retirement and health solutions. We advise, design and
execute a wide range of solutions that enable clients to
cultivate talent to drive organisational and personal
performance and growth, navigate retirement risk while
providing new levels of financial security, and redefine
health solutions for greater choice, affordability and
wellness. Aon Hewitt is the global leader in human resource
solutions, with over 30,000 professionals in 90 countries
serving more than 20,000 clients worldwide. For more
information on Aon Hewitt, please visit www.aonhewitt.com.au