Aon Hewitt Survey Finds Positive Shift in Employee Engagement Worldwide

Career opportunities, employee recognition and organization reputation are top engagement drivers across the globe

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Jun 04, 2012, 09:03 ET

LINCOLNSHIRE, Ill., June 4, 2012 /PRNewswire/ -- After years of declining employee engagement levels around the world, a new analysis released today by Aon Hewitt, the global human resource solutions business of Aon plc (NYSE:AON), showed a positive global shift in employee engagement—or emotional and intellectual involvement in the workplace.

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Aon Hewitt's 2012 Global Engagement report, which analyzed employee engagement trends of more than 3,100 organizations representing 9.7 million employees worldwide, found that 58 percent of employees were engaged in 2011, up from 56 percent from 2010.

Aon Hewitt's analysis showed improvements in employee perception scores in three key areas in 2011:

Effective leadership at the business unit/division level was 61 percent, up from 54 percent in 2010
People/HR practices creating a positive work environment was 53 percent, up from 47 percent in 2010
Perceiving relationships with customers as rewarding was 75 percent, up from 70 percent in 2010

The analysis also showed a decline in three key perception scores in 2011:

Effective communication was 42 percent, down from 46 percent in 2010
Innovation was 52 percent, down from 55 percent in 2010
Workplace safety and security was 75 percent, down from 78 percent in 2010

"Business leadership as well as HR programs that meet the needs of specific employee segments contributed to the uptick in engagement levels," said Pete Sanborn, co-president of Global Compensation and Talent at Aon Hewitt. "However, with one out of every four people not engaged worldwide, more needs to be done. As the economy improves, retaining top talent is going to be difficult. Now is the time for organizations to measure and gain insights on engagement drivers and to start doing the work necessary to improve engagement. Our research shows that organizations with higher engagement have significantly higher total shareholder return than the average company, so organizations that focus on what matters most in connecting employees to their work will emerge as leaders, and the others will be left behind."

Engagement Levels by Region
While overall engagement levels increased, Aon Hewitt's study found significant variances by region. Improvements in Asia Pacific engagement scores (58 percent in 2011 versus 55 percent in 2010) contributed to the overall upward movement of global engagement. Europe showed an upward shift by one percentage point from 51 percent in 2010 to 52 percent in 2011, while Latin America, the region with the highest regional engagement levels, experienced a slight decline in engagement levels, from 72 percent in 2010 to 71 percent in 2011. Employee engagement scores in North American remained unchanged from 2010 at 64 percent.

Overall Employee Engagement Scores By Region
Region	2011	2010
North America	64 percent	64 percent
Asia Pacific	58 percent	55 percent
Europe	52 percent	51 percent
Latin America	71 percent	72 percent

"Our global clients are becoming increasingly sophisticated in analyzing engagement results by region and business unit," said Ken Oehler, global practice leader of Engagement at Aon Hewitt. "We are cascading the results and insights further into organizations so that companies can implement targeted actions that will have the most impact on the engagement levels of discrete employee populations."

Reengaging the Workforce
Aon Hewitt's report also analyzed which engagement drivers had the most positive impact on engagement and opportunity for improvement. According to the analysis, organizations are likely to get the highest return on investment in employee engagement if they focus on improving the following drivers:

Career opportunities: For the fourth consecutive year--globally, as well as across all regions--career opportunities remained the top driver to positively impact overall engagement levels. "2012 will be a challenging year for employers in this category as a result of limited career development and advancement opportunities," said Oehler. "Now, more than ever, organizations must communicate clear career paths, prepare employees for the next role and provide lateral growth opportunities for key employees."
Recognition: Aon Hewitt's analysis shows that recognizing the extra effort employees have given in a tough business climate by providing feedback and positive reinforcement will pay dividends—and it often comes at no cost to the organization. Aon Hewitt found that recognition has a higher impact for employees in Asia Pacific and Latin America than in other regions.
Organizational reputation: According to Oehler, people want to be part of a respected and winning team. Aon Hewitt's analysis found that European and North American employees are more concerned about their company's reputation and what it stands for in the market versus recognition.

"Employees join organizations that have a reputation as a best employer, and they are also engaged by working for a best employer. This driver is about connecting employees to the company, the mission and the work beyond financial business performance, and showing them how their work experience cannot easily be replicated elsewhere," noted Oehler.

Communication: Aon Hewitt's analysis shows that effective and engaging communication resonates with the employee in rationally, emotionally and behaviorally relevant ways.

Oehler added, "Corporate communications is the primary connection point between the majority of employees and executive leadership. We saw that employee perceptions of communication declined in 2011. As companies recovered from the recession, they likely became less focused on clear and consistent communication from leaders. Messages usually break down at the mid-management or immediate manager level so it is important for the leaders to continue to provide clear messages about business objectives, challenges and what is required of employees."

Download the 2012 Global Engagement Report: http://www.Aon.com/globalengagement

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About Aon Hewitt
Aon Hewitt is the global leader in human resource solutions. The company partners with organizations to solve their most complex benefits, talent and related financial challenges, and improve business performance. Aon Hewitt designs, implements, communicates and administers a wide range of human capital, retirement, investment management, health care, compensation and talent management strategies. With more than 29,000 professionals in 90 countries, Aon Hewitt makes the world a better place to work for clients and their employees. For more information on Aon Hewitt, please visit www.aonhewitt.com.

About Aon
Aon plc (NYSE: AON) is the leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 61,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative and effective risk and people solutions and through industry-leading global resources and technical expertise. Aon has been named repeatedly as the world's best broker, best insurance intermediary, reinsurance intermediary, captives manager and best employee benefits consulting firm by multiple industry sources. Visit www.aon.com for more information on Aon and www.aon.com/manchesterunited to learn about Aon's global partnership and shirt sponsorship with Manchester United.