Managers a critical link in employee engagement

September 2011

We continue to live in uncertain times

Percent of Organisations with an Increase or Decrease in Engagement
60% 50% 40% 30% 20% 15% 10% 0% 53% 50% 46% 41% 46% 38% 37% 29% 24% 26% 31% 30% 31% 31% 30% 35% 31% 40% 34% 30% 25% 40% 32% 46%

28%

ri c al Tr en d Ju ly -S ep 08 O ct -D ec 08 Ja nM ar 09 A pr -J un 09 Ju ly -S ep 09 O ct -D ec 09 Ja nM ar 10 A pr -J un 10 Ju l-S ep 10 O ct -D ec 10 Ja nM ar 11

is to

Decrease

Increase

Source: Aon Hewitts Global Employee Engagement Database

pr -

Ju n1 1

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)
90% 80% 70%

% of employees with strong positive perceptions of managers

60% 50% 40% 30% 20% 10% 0% Providing support to succeed Giving valuable feedback Addressing Listening to and underimplementing my performance ideas 3
Best Employer The Rest

But they are under pressure

Market uncertainty
Mergers & acquisitions

Making sense of corporate messages Line Manager Influencing consequence s

Customer confidence
4

Regulatory changes

Digging further into the manager experience

>700 managers across Europe All functions (except HR) Approx 40% are managing more than 20 people

Some key findings

Managers are more likely to act on engagement when:

They themselves are engaged!

Theyve seen the impact for themselves

They are clear about what is expected of them

They get support and encouragement

Engaged managers are more likely to take action

70% 63% 60% 52% 50% % of engaged managers 40% 30% 27%

20% 10%
0% I did not review the results I reviewed the results I reviewed the results and took action
7

Source: Aon Hewitt European Manager Survey 2011

How engaged are your managers?

Engagement levels by job type
70%

68%
65%

69% 62% 66% 59% 55% 53% 50%

60%
60%

55%

50%

50%

50%

45%

45%

40% 2008 2009 2010 2011

Executives/Senior Managers

Middle Managers

Front-line Employees

Source: Aon Hewitts Global Employee Engagement Database

Whats needed to engage managers today?

2008 1.Career opportunities 2.Recognition 3.Effective work practices 4.Inspiring leadership 5.Fair pay 1. 2. 3. 4. 5. 2010 People/HR practices Career opportunities Organisation reputation Innovation is supported Communication

2008

2009

2010

2011

2009 1.Career opportunities 2.Fair pay 3.Inspiring leadership 4.Effective work practices 5.Recognition

2011 1.Delivery on promises 2.Effective work practices 3.Innovation is supported 4.Fair pay 5.Career opportunities
9

Seeing is Believing Case Study: Team Engagement and Customer Promoters

60% 60%

50% 40% 40% 37%

30%

20%

10%
10%

0%
% Promoters
Teams in Aon Hewitt High Performance Zone for Engagement Teams outside of the Aon Hewitt High Performance Zone for Engagement

NPS

10

Clear expectations make a difference

80% 70%

75%

60%

% of managers taking action

50% 40% 30% 20% 10% 0%

45%

I have not been set clear expectations

I have been set clear expectations

11

DNA of an engaging manager

A truly 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 theyre going to do builds team spirit is hands-on with their teams is resilient
12

Clear accountability is needed too!

50% 45% 40% 35% 35% 47%

% of managers

30% 25% 20% 15% 10% 5% 0% Change in Engagement Implementation of Action Score Plans Both 17%

13

Support from HR is essential

80% 70% 75%

60%

% of managers taking action

50% 40% 30% 20% 10% 0% I have not been given sufficient support from HR I have been given sufficient support from HR

38%

14

Senior leaders need to be role models

80% 70% 60%

73%

% of managers taking action

50% 40% 30%

44%

20%
10% 0% Senior leadership does not set a positive example Senior leadership sets a positive example

15

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

16

Jenny Merry UK Engagement Practice Leader Tel: 01727 888395 jenny.merry@aonhewitt.com