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1Best Employers Study 2016
In partnership with
Country Report: India
Best Employers Study 2016
1 Best Employers Study 2016
Table of Contents
Foreword
About the Best Employers Study
India Best Employers 2016: Study Insights
• SectionI:High Employee Engagement
• SectionII:Compelling Employer Brand
• SectionIII:Effective Leadership
• SectionIV:High Performance Culture
• SectionV:Effective HR Function
Imagineering the Future: The Journey to Being a Best Employer
2Best Employers Study 2016
Foreword
3 Best Employers Study 2016
We are proud to present the ninth edition of Aon Hewitt’s flagship study in Asia: Best Employers India 2016.
Through our research, we know that high employee engagement not only delivers greater shareholder value, but it also reduces staff turnover and improves customer satisfaction. Aon Hewitt began the Best Employers research in Asia in 2001 to provide insights into how organizations can create real competitive advantage through people and explore the contours of what makes a workplace of choice.
Our 16 years of Best Employers studies in Asia, backed with engagement research of over 6,400 global organizations
(including 2,300 in the region) supports the striking evidence: having a high level of Employee Engagement, a Compelling Employer Brand, Effective Leadership and a High Performance Culture translates into a committed and productive workforce that delivers stronger business results.
This report provides a deep-dive into our observations, supporting practices and outcome on the Best Employers construct in India.
We know that the journey to becoming a Best Employer is a unique experience for each organization, and we hope you continue successfully on this journey.
Foreword
Best Employers 2016 Asia PacificCovers 700,000 employee opinions (representative of a total employment in excess of 2 million) across 570 organizations from 12 countries• AonHewitt’spremierstudyforbuildingbetterplacesfor
work since 2001
• ExpansiveinsightsacrosstheAsiaPacificregion
• ANZ,ChinaandIndiacontribute~50%totheparticipation
• Employeeopinioncoveragehasdoubledsince2011
• Participatingcompaniescrossed500+inthe 2013 edition
No.ofParticipatingEmployees(‘000)
2016
700
No.ofParticipatingOrganizations
Definitions
570
2011 2016
+16%
490
Mkt. Average Scores – Average scores of all organizations in the India market in2015-16.Thisincludesnon-BestEmployers participants as well
Best Employer Scores – Average scores of all Best Employers in the Indiamarketin2015-16
Participant Average Scores – Average scores of only Best Employers participants in the India marketin2015-16
Insights
4Best Employers Study 2016
High Employee Engagement
Compelling Employer Brand
Effective Leadership
High Performance Culture
The employees consistently speak positively about the organization to co-workers, potential employees and customers
The organization is well-known and has a good reputation in the market
Leaders show clear and compelling future vision to the members of the organization
Managers set clear goals and expectations, and employees know how they can best contribute to business
The employees have an intense desire to be a member of the organization
Employees are proud to be part of the organization, and can explain what makes working here different from other organizations
Employees experience that leaders are appropriately visible and accessible; treat them as organization’s most valued asset
Rewards and recognition for high performance are clearly understood and transparent to employees
The employees exert extra effort and engage in work that contributes to business success
Employees believe that the organization delivers on the promises it makes to employees
Employees trust their senior leaders to be open and honest; and believe they make good business decisions to drive the organization to success
Organization prepares for future challenges by offering interesting careers for high potential employees and learning opportunities
Say
Reputation
Future Vision
Internal Brand
Reward
Credibility
Business Excellence
Growth
Stay Strive
Best Employers 2016 Asia PacificStudy construct focuses on 4 master and 12 sub indices
Valuing People
Accountability & Trust
5 Best Employers Study 2016
Best Employers 2016 India The jury
From Right to LeftProf. Rajen Gupta: Professor at MDI | Mr. Raman Roy: BPO Industry Pioneer and Chairman & Chief, Quattro | Mr. Shiv Shivakumar: PepsiCo India, CEO | Ms. Renu Sud Karnad: Managing Director, HDFC Limited | Dr. Santrupt Misra: CEO, Carbon Business and Director, Group HR, Aditya Birla Group
Aon Hewitt Study Team and Partner:Mr. Tarandeep Singh: Partner, Talent & Performance Consulting, Aon Hewitt India | Mr. Annurag Batra: Chairman and Editor-in-Chief, BW Businessworld | Ms. Yamini Maheshwari Sapra: Senior Consultant & India Leader – Aon Best Employers Study
As we talk about businesses being capable and we talk about Make in India, it is important that all organizations learn to leverage the best out of their Human Resources.
Dr. Santrupt MisraCEO, Carbon Business and Director, Group HR, Aditya Birla Group
Happy to see that this year other than the IT, ITeS, BFSIs, a lot of Mining, and Manufacturing companies are coming in and that’s where India’s growth will pick up.
Ms. Renu Sud KarnadManaging Director, HDFC Limited
I was struck by the following 4 innovations that the companies are doing in the area of 1-Recruitment, 2-Development of Leadership as Capability, 3-Identifying top 10 or 100 managers in the companies anddesign-specificinputsfortheircapabilitiessothattheyfitintoseniorroles,4-Diversity,thoughthere’sstill a long way to go in this area.
Mr. Shiv ShivakumarPepsiCo India, CEO
6Best Employers Study 2016
Best Employers 2016 IndiaThe winners
Best Employers 2016 (in alphabetical order)
BajajFinanceLtd.
AGS Health Pvt. Ltd.
AAPC India Hotel
Management Pvt. Ltd.
BectonDickinsonIndia Pvt. Ltd.
Godrej Consumer ProductsLtd.
METRO Cash and Carry India
Pvt. Ltd.
Bharti Infratel Ltd.
Bajaj Allianz GeneralInsurance
Co. Ltd.
DHLExpressIndia Pvt. Ltd.
Lupin Ltd.
HewlettPackardEnterprise Global
Soft Pvt. Ltd.
RelianceCapital Asset Management
SKS Microfinance
Ltd.
Tata AIA Life InsuranceCompany
WNS Global ServicePvt.
Ltd.
Starwood Hotels &
Resorts India Pvt. Ltd.
Whirlpool of India Ltd.
YASH Technologies
Pvt. Ltd.
Marriott International India (Global
Program)
TeleperformanceIndia (Global
Program)
Tata Communications
Ltd.
Saint-Gobain India Pvt. Ltd.- GyprocBusiness
TataAutocompSystems Ltd.
(TACO)
The Oberoi Group
BlueDartExpressLtd.
InterGlobe Aviation Ltd.
(IndiGo)
TataChemicalsLtd.
7 Best Employers Study 2016
It is MNCs that make it to Best Employers
of the Best Employer winners have been Indian companies
Only large organizations can become Best Employers
An organization needs to have a rich history to make it as a Best Employer
Had been in existence <10 years when they became a Best Employer
Had less than2,000 employees
Best Employers are service-oriented firms
Manufacturing companies that were Best Employers
51%
30%
20%
43%
Best Employers 2016 India The winners – myth v/s fact
8Best Employers Study 2016
2016 India Trends
9 Best Employers Study 2016
India: Overview & Highlights9 out of 10 participants projecting fast/steady growth
• IndiacontinuestoleadtheworldGDPgrowth(aspertheIMFprojectionsofApril2016,growthinIndiaisprojectedtonotchupto7.5%in2016-17)
• 9outof10participantsprojectingfast/steadygrowth
• 7outof10businessesforeseeanimprovedbusinessoutlookin2016-17
• 7outof10businesseswillincreasehiringin2016-17
Getting Back on Track (GDP Trends)
India
2006201
2201
8
Developed Economies
Emerging Economies
Source: IMF (April 2016 projections), Aon Hewitt India SIS 2016, Aon Hewitt India Hiring Study 2016
A Positive Business and Hiring Outlook Indicates an All Round Sentiment of Cautious Optimism
HiringForecast
55%
12%
1%
14%
18%
Improving
Stabilizing
Declining
SignificantIncrease
Somewhat Increase
Neutral
Somewhat Decrease
SignificantDecrease
BusinessOutlook
67%
6%
27%
10Best Employers Study 2016
How do Best Employers manage talent risks?
Rising salaries continues to be the biggest talent risk in India. According to the latest Aon Hewitt Salary IncreaseSurvey(SIS),theincreaseinsalaryforkeytalentisexpectedtobeatanaverageof14%to16%.
India: Overview & HighlightsTalent risks and emerging talent imperatives
Rising salaries
Critical skills shortage
Inadequate leadership pipeline
Low employee productivity
Inability to attract talent
CONCERN ZONE
CAUTION ZONE
Likely
Med
ium
Poor labor relations
Capability of current leaders
Poor external talent selection
Inability to retain employees
Near CertainLikelihoodofTalentRisks
Impac
tofTalen
tRisksonBusiness
Hig
h
On an average only 33% of the organizations feel they are prepared to tackle these risks. Best Employers leverage the 4 key pillars as defined earlier, to derisk themselves against the talent risks.
Emer
ging
Tal
ent I
mpe
rativ
es
High Employee Engagement
Rising talent costs
Critical skills shortage
Inability to retain employees
Inadequate leadership pipeline
Low employee productivity
Compelling Employer Brand
Effective Leadership High Performance Culture
1
2
3
4
5
Key Talent Risks
11 Best Employers Study 2016
2016 Best Employers Insights
12Best Employers Study 2016
India: Overview & HighlightsFrom 2013 to 2016, Best Employers maintain their lead across all the study indices
High Employee Engagement Compelling Employer Brand
Effective Leadership High Performance Culture
*Growth in pre-tax income over FY2014
Best Employers Gap Shift 2013-16 Mkt. Average Scores Best Employer Scores
1%
4% 1%
4%
66%79%
79%87%
• BestEmployersachieve38% higher growth in income* than market average
• BestEmployersfilled30% more openings internally compared to the participant average
• PositiveshiftsacrossalltheBestEmployersindices,but the widest shifts have been in the Effective Leadership and the Employer Brand pillars
Best Employers delivered sustained growth ahead of macroeconomic indicators
70%
81%
68%
77%
13 Best Employers Study 2016
100125
136
187 198
372
409
shareholder return
2.6X
157172
12712398
121100
2010
IndexedGrowthoftheNSE (Jan 2010-2016)
Source: Best Employers India Study 2016
Indexed Growth of Best Employer Stock Prices Calculated at Average Stock Price Growth YoY (January 2010-January 2016)
To qualify for the analysis, a Best Employer should have beeen recognized in 2 of the last5studies
2011 2012 2013 2014 2015 2016
India: Overview & HighlightsHigh business performance is a given for Best Employers
Inadditiontoregisteringasignificantleadonaverageshareholderreturns,BestEmployersalso:
• Stayedaheadduringtoughtimes;and
• Leverage“better”timestocreatedisproportionatedistancewiththeothersonNSE
Best Employers register 2.6X shareholder returns compared to the rest of the market
14Best Employers Study 2016
Section 1: High Employee Engagement
15 Best Employers Study 2016
High Employee EngagementBest Employers register 9% points higher employee engagement
• OverallengagementforBestEmployersshowsa1%pointincreaseover2013,eventhoughthemarkethasimprovedby3%pointsoverthe2013scores
• The‘Say’and‘Stay’pillarscoresaremarginallylowerforBestEmployersincomparisonto2013,however,theBestEmployershaveimprovedon‘Strive’by5%pointssince2013
SAY: The employees consistently speak positively about the organization to co-workers, potential employees and customers
STAY: The employees have an intense desire to be a member of the organization
STRIVE: The employees exert extra effort and engage in work that contributes to business success
Employee Engagement Index 77%68%
1%
-2%
-1%
5%
77% 84%
59% 67%
73% 81%
Best Employers Gap Shift 2013-16 Mkt. Average Scores Best Employer Scores
• “What’sinitforme”isgettingstrongerbytheyear
• EmployeesarewillingtostrivehardinaBestEmployerenvironment,giventhestrongleadershipandcompelling brand connect
• However,thereisagrowingneedtocreatearewardingcultureasaretentionmeasure
16Best Employers Study 2016
High Employee EngagementGap between Best Employers and market engagement scores has reduced substantially in this year
Engagement Scores Over the Last 16 Years
The gap between the engagement scores has reduced this year indicating that the market is slowly, but surely making efforts towards improving engagement
Best Employers Sustenance Drivers
78%76%
83%
88%
77%76%
83%
77%
68%66%65%
67%71%
67%
62%66%
2003 2006 2013 2016
Mkt. Average Scores Best Employer Scores
External collaboration with broader ecosystem has increasingly become a desired capability for Best Employers and the market
What helps Best Employers sustain their lead?
Health & Well-being
Supervision
Collaboration
84% 89%
72% 81%
72% 80%
17 Best Employers Study 2016
High Employee EngagementCareer opportunities and rewards & recognition continue to be top 2 engagement drivers
Top Engagement Drivers in India - Ranked by Demographic
Engagement Drivers in India
Rank 2016 (Mkt. Avg.)
Best Employers
2016GenY Women Leadership Sr.
Mgmt. Mid.
Mgmt.
Rewards & Recognition 1 1 1 1 1 4 1
Career Opportunities 2 2 2 2 1 2
Brand 3 3 4 4 1 3
Senior Leadership 4 4 5 2
Work Tasks 4 4 4 3
Trust in Action 4 5
Collaboration 2 5 4
Work-life Balance 3 4
Enabling Infrastructure 1
Learning & Development 5
Whilethetop2engagementdriversremainthesame,variationsacrossthetop3-5aredefiningexperiences.BestEmployersmanagethismulti-dimensionalcomplexitythroughspecificprogramsthataddressthedifferentneedsofdifferent employee segments
BestEmployersmanagemulti-dimensionalcomplexitythroughspecificprogramsthataddressdifferentneeds of employee segments
• Diversemixoffocusareasforvarieddemographicprofile.Interestingly,work-lifebalanceiskeyforleadership,andsenior management has indicated need for better enabling infrastructure
• Collaborationiskeyacrossalllevelsofmanagement
18Best Employers Study 2016
Engagement Levels by Tenure Within the Organization
High Employee EngagementBest Employers sustain consistent engagement levels across employee segments
Best Employers create a consistent employee experience across tenure groups
6 months-1 year
80%
76%
< 6 months 1-2 years
72%
67%
75%
65%
76%
66%
80%
73%
2-10 years 10+ years
Mkt. Average Scores Best Employer Scores
• BestEmployersmaintainaconsistentengagementlevelacrossthetenureofanemployee;theyoutperformthemarket specially after employees are sufficiently tenured
• Thistenuredurationiscriticalasitlaysfoundationsofacareerforanemployeewithintheorganization
19 Best Employers Study 2016
High Employee EngagementBest Employers work to sustain consistent engagement levels across employee segments
Engagement Levels across Generations
Best Employers engage GenY through differentiated and focused talent programs
Mkt. Average Scores Best Employer Scores Participant Average Scores
57% of GenY feel their future career opportunities at their organization’s look good
53% of GenY feel they are paid fairly for the contributions they make to the organization’s success
• GenYscoresarethelowestfortheBestEmployersaswellasthemarket
• However,BestEmployersshow11%pointshigherEngagementforGenYat76%whencomparedtothemarketat65%
Best Employers v/s Market
Specifictalentprograms*targetedtowardsGenY
*GodrejcasestudyonGenYspecificinitiativesonPage2355% 63%
84%80%
Baby Boomers GenX: 1965-1978
GenY: 1979-1990
76%72%
65%
76%
20Best Employers Study 2016
Best Employer Scores Participant Average Scores
High Employee EngagementMeasuring engagement is the norm; acting on opinions is how the Best Employers drive results
Practice Prevalence
Measure engagement on a regular basis (at least annually)
Communication of engagement results is followed up with team or focus group meetings that lead to a structured action plan
Communication of engagement results is followed up with regular employee communication on action plans
People manager and senior leaders own implementation of action plans more than HR function
Progress on action plans is reported to employees
Engagement is linked to manager’s performance scorecard
97% 100%
92%
71% 79%
64% 75%
75%
83%
Best Employers hold leaders and managers equally accountable for employee engagement
62%
69%
83%
21 Best Employers Study 2016
The Best Employers CircleHigh Employee Engagement
Lessons from the trenches
McThai
Operating in the food and beverage industry as part of the McDonald’s brand, McThai Co. Ltd. is a fast foodrestaurantthatwasfoundedin1985andhas8,000employees.Thailand
The Challenge
Toattract400+futureleaders to the company each year by hiring and engaging external talent while at the same boosting engagement through a variable pay program.
The Approach
McThai annually reviews and develops a 3-1-Q plan (3 year strategic outlook – 1 year target – quarterly execution), where goals and targets of each employee are tied to an annual performance bonus scheme and a variable pay program.
Engagement Score –
92%
NetPromoter Score –
89%
The Outcome
22Best Employers Study 2016
High Employee Engagement
The Best Employers CircleLessons from the trenches
Starwood Hotels & Resorts
Starwood Hotels & Resorts Worldwide, Inc. is an international hotel and leisure company. It is a fully integrated owner, operator and franchisor of hotels, resorts and residences with internationally renowned brandssuchasTheSt.Regis,TheLuxuryCollection,W,WestinandLeMeridien,operating39hotelsinIndia with 3,400 employees.
India
The Challenge
How to double manpower in order to achieve high growth (100 hotels in India by 2015)inthefaceofpaucity of talent.
The Approach
• Developedaholisticintegrated talent management program ‘Starwood Careers’
• Talent development was organized into 3 distinct career tracks: the executive, the mid-management and the entry-level tracks
• Career paths mapped for each track by profilingthecriticaljob responsibilities and competencies required for each role. This helped build transparency about the competencies required to grow in the organization
The Outcome
• Attritiondroppedwellbelowthe market average to less than10%in2012-13
• 80%ofseniormanagementand90%ofmiddlemanagement openings were filledinternally
• Employeeperceptionon“Starwoodhelpsmereachmypotential”inaninternalsurveyincreasedfrom75%in2009to86%in2013
23 Best Employers Study 2016
Godrej
The Godrej Group is an Indian conglomerate headquartered in Mumbai, India, managed and largely ownedbytheGodrejfamily.ItwasfoundedbyArdeshirGodrejandPirojshaBurjorjiGodrejin1897,and operates in sectors as diverse as real estate, consumer products, industrial engineering, appliances, furniture, security and agricultural products.
The Challenge
How to create a campus initiative to identify some of the most passionate and creative individuals and the kind that would be the next generation of Godrej employees?
The Approach
• Godrej LOUD was created with the objective of building Godrej brand at campuses
• MediatieupwithCNBCTV18 for a 7-part series on GodrejLOUD;introducedaLOUD anthem contest where shortlisted student bands were invited to perform with Indian Ocean
• Theprogramintroduceda Campus Dream competition – students were invited to share their dreams for their campus and Godrej sponsored (`5lacs)for the winning dream
• GodrejintroducedaLOUD journal for the students as a toolkit to help them discover themselves and their dreams
The Outcome
• ThisinitiativehelpedGodrejsee substantial improvement in their campus connect interest levels, really helping Godrej re-brand themselves as an employer of choice for GenY
• Thisyear,Godrejreceivedover 2,300 applications, a 500%increasefrom2012,the year LOUD was launched
• In2014,Godrejalsoreceivedrequests from B-schools, other than the ones that they visited, to allow participation in the program
The Best Employers CircleLessons from the trenches
India
GenY Specific Initiatives
24Best Employers Study 2016
Section 2: Compelling Employer Brand
25 Best Employers Study 2016
Compelling Employer BrandBest Employers score 8% points higher than the market on the employer brand index• Marketisclosingthegaponthe“CompellingEmployerBrand”indexfrom12%in2013comparedto8%now
• BestEmployershaveshownhealthyimprovementacrossallsubindicesascomparedto2013withthemaximummovementonthecredibilitysub-index(7%)
REPUTATION: The organization is well-known and has a good reputation in the market
INTERNAL BRAND: Employees are proud to be part of the organization, and can explain what makes working here different from other organizations
CREDIBILITY: Employees believe that the organization delivers on its promises it makes to employees
Employer Brand Index 87%79%
4%
2%
3%
76% 85%
81% 87%
74% 82%
Best Employers Gap Shift 2013-16 Mkt. Average Scores Best Employer Scores
• BestEmployersdisplayedrenewedfocusonbuildingtheirbranddifferentiator
• BestEmployersgobeyondwordstodelivertheirbrandpromisethroughpractices,policiesandorganizational culture
7%
26Best Employers Study 2016
As Employee Value Proposition (EVP) relevance and importance increases, there is increasing pressure for organizations to deliver on their promises
Compelling Employer BrandBest Employers lay focus on effectiveness measurement of the defined brand
The Top 6 EVP Effectiveness Measures
Attrition Statistics Rank
Numberofemployeereferrals 1
Attrition statistics 2
Length of service statistics 2
Employee satisfaction on EVP driver (through employee surveys) 2
Employee feedback through exit interviews 5
Cost of recruitment statistics 6
Percentage of offers accepted 6
Numberofvisitstoorganization’scareersite 6
The outcome of practices and measuring effectiveness is the opinion… Does the organization keep the promises it makes?
84%
73%
2009 2011 2013
66%
62%63%
72%
65%
76%
2016
Mkt. Average Scores Best Employer Scores
27 Best Employers Study 2016
Compelling Employer BrandBest Employers clearly define their ‘value proposition’ and effectively ‘walk-the-talk’
I can clearly explain what makes working here different from
other organizations
75%
60%
77%
64%
84%
75%
This organization offers excellent career opportunities to employees
who are strong performers
There is effective cooperation betweendifferentgroups/
departments in the organization
This organization offers exciting careers and provides great learning opportunities
Careers and Collaboration are among top EVP differentiators among Best Employers
In this organization there is a great sense of teamwork and camaraderie amongstco-workers;employeesarechallengedandempowered
Practice Prevalence: Employer Brand
Employee Experience
We have formal documentation, implemented the EVP in all HR policies and programs, and we measure the effectiveness of our EVP regularly
DefininganEVPisnotenough,reinforcingitthroughcommunication,deliveryandcontentis
Best Employer ScoresMkt. Average Scores Participant Average Scores
19% 29%
36% 46%
22% 33%
• BestEmployersclearlydefine“what’sinitforme”foremployees
• Providinganempoweringenvironmentandclarityonindividualgrowthpaths,setsBestEmployersapart from the market
28Best Employers Study 2016
The Best Employers CircleLessons from the trenches
IndiGo
IndiGo commenced operations in August 2006, as a low-cost airline in a competitive and highly regulated Indian aviation space and today, is the largest airline in India with the highest market share and a fleet of 104 aircrafts.
India
The Challenge
To ensure employees truly live their brand promise and to extend the guiding principles of“ontime”,“courteousservice/hassle-free”and“lowfare”totheinternal customers.
The Approach
• Ensuringemployeeexperience, leadership’s vision and design of people programs, practices and policies are aligned to bring alive a customer grade experience for its employees across all touch points
• Introduced8typesof flying patterns and associated work contracts for pilots to ensure hassle free flexibility in their flying schedule
• Givespilotsanearningpotential compounded incentiveupto20%onthe average base pay
The Outcome
IndiGo was adjudged an Aon Best Employer and is considered one of the best companies to work for in the Indian aviation industry.
Compelling Employer Brand
29 Best Employers Study 2016
Reliance Capital
Reliance Capital Asset Management Limited (RCAM) is the asset manager of Reliance Mutual Fund (RMF) and subsidiary of Reliance Capital Limited (RCL). As a leading and fast-growing company in India,RCAMhas902employees,703ofwhomarehomegrowntalent.
The Best Employers CircleLessons from the trenches
India
The Challenge
To build a strong Employee Value Proposition (EVP) to enhance the internal employee experience, and develop an employer brand that strengthens RCAM’s credibility to attract, retain and groom high-quality future leaders.
The Approach
• RCAMintroducedaninnovative initiative of sourcing talent from diverse industries to promote learning and innovation
• Thesediverseindustriesarecarefullyidentifiedbasis the business challenge or opportunity at hand. For example, to penetrate India’s hinterland and rural markets, RCAM sourced a Chief Marketing Officer with an FMCG background
The Outcome
• 70%ofRCAM’stalentcomes from outside the AMC (Asset Management Company)industryand38%from outside BFSI (Banking, Financial Services, and Insurance)
• 90%ofCXOtalentisgrownin-house&75%ofnext-in-lineleaders are also developed in-house
• Employeeattritionrateisatalow5%
Compelling Employer Brand
30Best Employers Study 2016
Section 3: Effective Leadership
31 Best Employers Study 2016
Effective LeadershipBest Employers have an 11% higher effective leadership index than the market• TheoverallindexscorehasshownpositivemovementwithboththeBestEmployersandthemarketshowinga4%
and2%pointimprovementrespectivelyover2013scores
• TheBestEmployersregisterimprovementacrossallsubindiceswithasubstantial6%pointimprovementonthevaluing people sub index
FUTURE VISION: Leaders show clear and compelling future vision to the members of the organization
VALUING PEOPLE: Employees experience that leaders are appropriatelyvisibleandaccessible;treat them as organization’s most valued asset
BUSINESS EXCELLENCE : Employees trust their senior leaders to be open andhonest;andbelievetheymakegood business decisions
Effective Leadership Index 81%70%
4%
3%
6%
4%
68% 79%
69% 79%
70% 80%
Best Employers Gap Shift 2013-16 Mkt. Average Scores Best Employer Scores
• BestEmployersuseleaderstodriveculture,reinforceorganizationvaluesandcreateanengagingenvironment
• Leaderscreateastrongpersonalconnectwithemployeesandtherebyinstillastrongsenseofpurpose
32Best Employers Study 2016
Senior leadership engagement has dipped for Best Employers and remained steady for the market
Market is registering a positive upswing in employee opinion on Senior Leadership, and while Best Employers scores havedipped,theystillmaintainan11%pointslead
Effective Leadership
2007
82%
75%77%
79%
74%76% 76%
87%
80%
86%
93%
83%
2009 2011 2013 2015 2016
An engaged senior leadership is an effective leadership
Engagement Scores of Top Leadership
Employee Opinion Scores on the Leadership Pillar
2007
84%
67%
74%
68% 68%65%
70%
87%
77% 78%
84%81%
2009 2011 2013 2015 2016
Mkt. Average Scores Best Employer Scores
TopleadershipinBestEmployersissignificantlymoreengaged,resultinginabetterperceptionoftheireffectiveness across the organization
33 Best Employers Study 2016
Effective LeadershipBest Employers understand what engages leaders the best
Practice Prevalence
Increased access and interactions with senior executives/topmanagement(e.g.shadowing)
Formal process to identify and develop successors and successor list is regularly reviewed
Internal training (classroom-based)
External training (i.e. executive training courses)
External coaching
Rotational assignments (formal process to move leaders through a series of departments or regions)
Developmental assignments (job assignmentsmatchedtospecificdevelopment needs of leaders)
Prac
tices
ado
pted
for l
eade
rshi
p de
velo
pmen
t
40%
72%
38%
83%
81% 96%
76%
59%
83%
67%
60% 67%
64% 79%
Participant Average Scores Best Employer Scores
Coaching is just one of the ways for Best Employers to develop the leadership pipeline
Best Employers adopt multi-modal interventions to develop their leaders
34Best Employers Study 2016
The Best Employers CircleLessons from the trenches
Whirlpool of India Ltd.
The Whirlpool Corporation is an American multinational manufacturer and marketer of home appliances. WhirlpoolenteredIndiainthelate1980sasapartofitsglobalexpansionstrategy.Thecompanyownsthreestate-of-the-artmanufacturingfacilitiesatFaridabad,PondicherryandPune,andhas1,625fulltimeemployees.
India
The Challenge
To inculcate and ensure employees truly embrace leadership behaviors, Whirlpool worked towards ensuring the culture of the organization, and not a part of the culture, centered around leadership.
The Approach
The fundamental objective was to de-mystify leadership and make it a part of everyday lingo for all employees through several inventive methods:
• Designedanddevelopedmass customized learning content
• Createdchangechampionsto train employees on the leadership model
• Leadershipevangelismthrough the leadership team
• Employeesallowedtochartand select their personal leadership journeys
• Integratedleadershipmodelinto people processes
The Outcome
Their effective leadership index isat80%whichis7percentagepoints ahead of their industry benchmark.
Effective Leadership
35 Best Employers Study 2016
Tata Communications Ltd.
Tata Communications Ltd. (TCL) is a global telecommunications company. As the sixth largest mobile service provider in India, TCL is renowned for its cutting-edge, one-of-a-kind innovation – including the world’sonly,wholly-ownedfiberringaroundtheworldandEthernetringservingtheMiddleEast.
The Best Employers CircleLessons from the trenches
India
The Challenge
TCL launched Develop MINTtocreateapipeline of business leaders for the future withahorizonof3-5years. Objectives include:
• Buildastrongbench-strength of business leaders for the future
• Enhancecapabilityof leaders who understand the business and have therightDNA
• Focusona‘Buildover Buy’ strategy for talent expansion
The Approach
• Afterarigorousselectionprocedure,30finalistswereselected. Development was based on the 70:20:10 learning model
• Anadvancedbusinessleadercompetency development training program was organized in Frankfurt, Germany. The CEO set expectations and extended support
• Candidateswereassigneda Group Coach who helped them create their IDPs,identifiedareasofdevelopment, identify the roles for the candidates over the next 3-6 years
The Outcome
• Themetricstomeasuresuccess have been divided into the following three categories: quality, cost and time
• Theprogramiscurrentlyunderway and the participants are undergoing theirfirstjobrotation
Effective Leadership
36Best Employers Study 2016
Section 4: High Performance Culture
37 Best Employers Study 2016
High Performance CultureBest Employers have a 13% point lead on the high performance culture index• BestEmployersshowa1%increaseinoverallindexscoresover2013,however,themarkethasdippedby3%points
in comparison to 2013
• BoththemarketandBestEmployersregisteranoticeabledipintherewardsubindexwitha4%and7%pointrespective drop over 2013
ACCOUNTABILITY & TRUST Managers set clear goals and expectations, and employees know how they can best contribute to realize their business strategy
REWARD: Rewards & recognition for high performance are clearly understood and transparent to employees
GROWTH: The organization prepares for future challenges by offering interesting careers for high potential employees and learning opportunities for all employees
High Performance Index 79%66%
1%
1%
-4%
5%
74% 82%
59% 70%
70% 79%
Best Employers Gap Shift 2013-16 Mkt. Average Scores Best Employer Scores
• ManagerialcapabilitybuildinghasenabledBestEmployerstocreatetransparencyandtrust
• However,withtheadventofnew-ageindustries,oneneedsbalancedfocusonrewards&recognition too
38Best Employers Study 2016
Best Employers ensure appropriate recognition and differentiate rewards based on performance to push high performers further
High Performance Culture
Practice: We combine structured, formal recognition programs with manager-driven recognition
Practice: Keeping average performers as a benchmark, how much does the variable pay differ by performance?
Outcome: Employee opinion
46% 47%
2016
Employees 102
Top Leadership
Average Performers
132
128 53%
66%
60%
74%
145
100
18
21
100
Employees
Top Leadership
High Performers
Under Performers
Appropriate Recognition
Performance Impact on Pay
1915
Participant Average Scores Best Employer Scores
Best Employers distinguishing and rewarding for performance
39 Best Employers Study 2016
High Performance CultureManager development focus continued
Practice Prevalence: People Manager Development
People managers receive effective feedback on how their leadership style influences their team
We have a formal approach to improving people management skills
People managers get coached to provide career advice and to explain rewards successfully to their people
Participant Average Scores Best Employer Scores
People managers are measured on their quality of people management and are rewarded for managing their people effectively
People managers’ performance ratings reflect their teams’ engagement levels
Prac
tices
to d
rive
Peo
ple
Man
ager
D
evel
opm
ent
93% 96%
59% 71%
78%
60%
79%
71%
55% 63%
Continued focus on managers assisted Best Employers on:
• Drivingaccountabilityofteamengagementthroughmanagers
• Creatingindividualdevelopmentplanstohelpthembecomeengagingleaders
Best Employers develop, coach, assess and reward their people managers to become engaging managers
40Best Employers Study 2016
High Performance CultureThe focus on outcomes
Practice Prevalence: Career Development
Employee Experience on Career Opportunities
81%72%75%
69%77%
67%
One-on-one coaching for employees on managing their careers
We have a formal career development framework
We have a campaign to communicate the framework to our employees
Structured succession planning
Assessment of behavioral capability
Opportunity of cross department assignments
Career planning portal (an online tool that helps managers and employees manage careers)
Career development goals integrated into performance management
Opportunity for internal and external learning programs
Prac
tices
to s
uppo
rt c
aree
r dev
elop
men
t
Technology adoption is low even for Best Employers in an increasing complex area of career opportunities
Best Employer ScoresMkt. Average Scores Participant Average Scores
60% 79%
57% 67%
64%
22%
71%
38%
50% 63%
59% 71%
64% 83%
55% 71%
67% 83%
Participant Average Scores Best Employer Scores
Best Employers are far ahead of the market in planning, communicating and providing abundant career opportunities to their employees
There are sufficient opportunities within the organization for me to work
on assignments to gain new skills
Organization strongly supports the learning and development of its
employees
Organization offers excellent career opportunities to employees who
are strong performers
41 Best Employers Study 2016
The Best Employers CircleLessons from the trenches
Bajaj Finance Ltd.
BajajFinanceisoneofthefewNBFCsinthecountrytobeawardedaratingofFAAA/StableforFixedDepositsandhaveanetworkofover115branchofficesthroughoutthecountry.Theyhavebeeninoperationfor29yearsandhaveaworkforceexceeding4,400fulltimeemployees.
India
The Challenge
To shift the onus of employee growth (up to a certain level) to lie with the employee. An employee can growth in their current role afteraspecifiedperiodof time provided they meetthedefinedsetofmetrics.
The Approach
• Theauto-promotionpolicyisa unique initiative to create a strong career progression program at Junior to Middle management levels on achievementofapre-definedset of performance metrics. The intent being:
- To grow in-house talent and
- Ensure job enrichment for an employee
• Thereviewperiodoftheauto-promotion policy is quarterly and promotions are automatically initiated basis tenure and performance
The Outcome
The success ratio of the Auto-promotion policy will be to ensurethatatleast70%ofemployees completing the required tenure get promoted in the system.
High Performance Culture
42Best Employers Study 2016
The Best Employers CircleLessons from the trenches
DHL India Ltd.
DHL is present in over 220 countries and territories across the globe, making it the most international company. DHL India has been operation for 37 years and has a workforce exceeding 1100 employees.India
The Challenge
DHL targeted to achieve the following 3 bottom lines, i.e. to be an:
• Investorofchoice
• Providerofchoice
• Employerofchoice
The Approach
• Eachemployeesperformanceappraisal carries weighted linkage to the 3 bottom lines
• Allemployeesirrespectiveof their grades have the following2/3collaborativetargets:
- EBIT
- Transit time
- Active leadership
• Theweightageforcollaborative target is higher for management employees as they are decision-makers and their variable component can goashighas70%
The Outcome
Linking Performance Pay with “3bottomlines”hasshowntremendous results:
• Transittimeover96%(provider of choice)
• ActiveLeadershipscoresimprovedby16%inlast3years (employer of choice)
• CustomerPromisescoresimprovedby8%inlast3yearsandcurrentlyat95%(provider of choice)
High Performance Culture
43 Best Employers Study 2016
Section 5: Effective HR Function
44Best Employers Study 2016
An Effective HR FunctionThe Best Employers’ business expectations
What the CEOs of winner organizations expect from Best Employers?
An Effective HR FunctionThe Best Employers’ business expectations
R.S. Subramanian, CEO, DHL
HR partners with the key stakeholders to ensure that people
strategy and policies are aligned to the
business requirements and in line with our ambition to be the employer of choice. HR further helps the
organization develop key measures that track the people dimension
that impact the business and develop actions to ensure high quality work environment and ethic. HR helps the business leaders
to look ahead and stay people focused to
ensure that decisions are taken with the people aspect in mind and the organization is future
ready. HR is the voice of the employee in the
leadership team and help ensure that talent and skill development
remains a key focus area at all times.
Vikram Oberoi, CEO, Oberoi Hotels
The competitive advantage of the
group stems from our single minded focus on creating memorable experiences for our
guests. To do this, the HR function drives our
ability to attract the best talent, provide
them with learning and growth in an enabling
environment that supports and empowers them to do their best for
our guests…
Aditya Ghosh, CEO, IndiGo
HR is a very important and
strategic function in my organization.
We are obsessed with our own people and HR is a key partner to implement our
culture. A lot of what our customers see of
us and our product is a reflection of who we are
internally. Therefore, HR is a key partner for our leaders to drive excellence.
Arvind Uppal, CEO, Whirlpool
Increasingly, the success of businesses
depends on the ability of its employees to
execute their business strategy. For us, the
ability of our employees to enable business
transformation is termed as‘PeopleExcellence’.Enabling, nurturing
and sustaining people excellence and thereby driving business strategy is where our HR function
plays a pivotal role.
45 Best Employers Study 2016
An Effective HR Function
Participant Average Scores Best Employer Scores
AreasofstrengthforBestEmployers(%reflectsselectionintheTop3)
64%
75%
38%
26% 26%
38%
Employee Engagement &
Motivation
Learning & Development
Defining/Aligning
Organization Culture
22%
38%42%
50%
Employer Branding HiPo Development
Succession Planning
Actualspendonpeoplepracticesinitiatives(annualHRbudget)expressedasa%ofannualrevenuesin2015-16
3.0%
2016
1.0%
DataRepresentation:Actualspendonpeoplepracticesinitiatives(annualHRbudget)expressedasa%ofannualrevenuesin2015-16Source: Best Employers India Study 2016
BestEmployersspend1/3rdofmarketspendonpeoplepractices/initiatives
Best Employers don’t spend more on HR. They focus on doing the right things and doing them well
46Best Employers Study 2016
An Effective HR Function
The HR strategy was developed in partnership with multiple business stakeholders
The CEO is measured based on organization’s HR KPIs (e.g. employee engagement, attrition)
HR collaborates with the business to identify HR KPIs and then monitor, assess and report performance against those HR KPIs
Our organization participated in an HR benchmarking process in the last 2 years
Prac
tice
Prev
alen
ce
Design new people programs
Build a differentiated EVP
Include in our HR reporting
Set our HR KPIs
Validate practices
Best Employers go beyond articulation of HR strategy. Their HR co-owns the outcomes and metrics
The
use
of b
ench
mar
k da
ta a
nd
insi
ghts
76% 79%
74% 79%
71% 79%
60% 71%
83% 88%
43% 63%
34% 46%
Participant Average Scores Best Employer Scores
47% 58%
71% 79%
Best Employers don’t just articulate HR strategy, they ensure accountability and governance around it
47 Best Employers Study 2016
What’s in Store for the Future
48Best Employers Study 2016
Best Employers: Delivering on the Now, Imagineering for What’s to ComeIs India Inc. Future Ready?Businessestodayareexperiencingbreakthroughsfasterthanever;lifecyclesforinnovationareshortening,theEastisgradually becoming the new West and more importantly, technology is the new fuel disrupting and enabling businesses. Leadingfirmsareleavingbehindthetraditionalmodelsofmarketaccess;insteadtheyarecreatingnewmarketsandcontrolling consumer experience like never before.
Withcloseto7connecteddevicesperhumanbeingonearthby2020andtheaveragehumanspendingcloseto2.5hoursonmobiledevicessurfingdaily,onedoesnotreallyneedtounderscorethepaceofchangebothsubliminalandactual.Besides increasing connectedness, mobility and social media are also making organizations transparent to the outside world. Current and prospective workforce is impacted by an employer’s stated purpose of existence (or rather, lack of it), more so when income inequalities are rising and awareness for social issues are high.
The purpose of this report is to identify emerging trends around the below 3 shifts and visualize a journey that prepares organizations for the future.
Megatrends Impacting the Business and the Workplace
• Businessesareexperiencingbreakthroughsfasterthanever
• Natureofworkisshiftingdimensionsfasterthanever
• Connectednessisredefiningtalentexpectationsfasterthanever
Business
• Disruptionbecomesanorm
• Changingsourcesofcompetitive advantage
• Technologyandinternetofeverything
• Interconnectedtradeandtalent flows
Workforce
• Demographicandpsychographic shifts
• Consumermindset
• Socialconnectedness
• Highlyinformed
• Lifelonglearner
49 Best Employers Study 2016
Agility InnovationSpeed On- Demand
Constant Learning
Man & Machine
Transparent Experience Purpose
Faster than ever
Connectednessisredefiningtalentexpectationsfasterthanever
Natureofworkisshiftingdimensions faster than ever
Businessesareexperiencingbreakthroughsfasterthanever
Best Employers: Delivering on the Now, Imagineering for What’s to ComeWhat Does India Inc. Need to be Future Ready?
Given the above mentioned external and demographic shifts, businesses now have to focus on three critical imperatives to keep pace with the fast-changing workplace and business landscape.
Keeping Pace with the Fast Changing Business and Workplace Landscapes
Create work culture to deliver
10X impact
21Design
organizations for Innovation, Agility
& Speed
Manage the young, the old and the connected
3
50Best Employers Study 2016
Best Employers: Delivering on the Now, Imagineering for What’s to ComeWhere do the Best Still Need Improvement?
IMPROVEMENTDRIVERS
SUSTAINDRIVERS
Dimensions to Imagineering the Future
1 Collaboration Takes Center-stage: Collaboration at the workplace is amongst top 3 sustenance drivers for Best Employers. However, it is not the top most, which points towards the future journey for Best Employers.
2 Balance Work & Life: Work-Life Balance is an improvement driver for Best Employers despite its high scores. This represents employees’ rising expectations towards better work-life integration enabled through omnipresent technology.
3 Inspirational Leaders and Stellar Reputation Count: Brand and senior leadership are amongst top 4 improvement drivers for the market. Incidentally, senior leadership was a sustenance driver for Best Employers last year, but no longer now. This corroborates our hypothesis of the task cut-out for inspiring leaders and organization’s reputation.
4 Rewards & Recognition Matters: Best Employers have created the highest gap against the market average on rewards&recognition(13%)validatingthepositiveexperiencecreatedfortheemployee.Thesamehoweverisstilltheirtopmostimprovementdriver,whichsignifieshurdlesofthejourneyyettobetraveled.BestEmployersareseemingly more prepared for this.
5Raise the Bar of ‘Delivery of Promise’: Market average scores have interestingly improved across all engagement drivers, with the maximum increase on brand and career opportunities. This indicates market is catching up with key differentiatorsofthepast.Hence,BestEmployersneedtoraisetheir“deliveryofpromise”andfocusoncreationofpurposeful organizations.
IMPROVEMENTDRIVERS
SUSTAINDRIVERS
Rewards & Recognition
Career Opportunities
Brand
Supervision
Learning & Development
Performance Management
Rewards & Recognition
Career Opportunities
Work-Life Balance
Health & Well-being
Supervision
Collaboration
Best EmployersMarket
51 Best Employers Study 2016
Best Employers: Delivering on the Now, Imagineering for What’s to ComeChallenges That Emerge for HRThefuturewillalwaysremainthefuture;organizationsthatacknowledgethefactthattheyneedtobepreparedforthesame will continue to seize opportunities and create exponential advantages. In our view, HR will face the following 3 critical challenges in the readiness, and their ability to influence and lead change during this journey will determine their success.
Pre-empt and solve the TEAM
conundrum!1
• Organizationsofthefuturewillworkinsmalleranddiverseteams
• Teaminabilitytoworkcohesivelywillimpactthedesiredbusinessoutcomes of speed, agility and innovation
72%84%
Career Opportunities
65%78%
Collaboration
71% 81%
Diversity & Inclusion
TheBestareat84%onDiversity & Inclusion,
ensuring they provide an open work environment that respects individual differences. The market definitelyhasgroundtocover here as employee
expectations are constantly rising.
Career opportunities is the second most critical improvement driver for
the Market as well as the Best Employers. This only reaffirms the criticality of this driver for employees across organizations at
both ends of the maturity spectrum.
Collaboration at the workplace is amongst the top 3 sustenance
drivers for Best Employers. However, it is not the
top most, which points towards the future journey
for Best Employers.
Best Employer ScoresMkt. Average Scores
52Best Employers Study 2016
Best Employers: Delivering on the Now, Imagineering for What’s to ComeChallenges that emerge for HR
Enable the new-age WORK &
LEARNING techniques!
2• Futureofworkrevolvesaroundone’sabilitytolearnandadapt
• Solvingproblemswillbehugelydependentonquickerdecision-making and iterative learning techniques
• Technologywillbeomnipresent,andworkprocesseswillaltersignificantlyowingtoautomationandartificialintelligence
71% 79%73% 83%69%81%
Empowerment & Autonomy
Work-life Balance (Integration)
Basics (Enabling Infra, Talent & Staffing)
TheBestare12%pointsahead on the market when it
comes to providing the basics i.e. the requisite people
and material resources and an enabling infrastructure. Considering that these are
foundation elements for any organization, delivering
on these is critical for all employers.
TheBestareat83%on Empowerment &
Autonomy, which goes to show that in addition
to providing an open work environment, they
are also empowering their employees to take decisions and learn from
their mistakes.
Work/LifeBalanceisanimprovement driver for Best Employers
despite high scores. This represents employees’
rising expectations towards better work-
life integration enabled through omnipresent
technology.
Best Employer ScoresMkt. Average Scores
53 Best Employers Study 2016
Best Employers: Delivering on the Now, Imagineering for What’s to ComeChallenges that emerge for HR
Relearn the art of MANAGING
Brand and People!
3• Futureofmanagingtalentwillbedrivenbyindividualchoices-
traditional control & command practices will lose favor
• Employeeexperiencewillbeparamount,andleadershipstylewillneed to be inspirational
Employer Brand Rewards & Recognition Inspiring Leadership
Senior Leadership was a sustenance driver for Best
Employers last year, but no longer now. Leadership style will need to be inspirational to drive positive energy and
a sense of purpose within the workforce.
Brand is the third most critical improvement driver for the Market. Organizations are
expected to live and deliver the employer brand in
thought, speech and action. TheBestEmployersare10%points ahead of the market,
anddefinitelybetterpreparedto deliver on employee
expectations.
Best Employers have created the highest gap against the Market Average on Rewards
&Recognition(16%).However, it also is their top most improvement driver,
whichsignifieshurdlesofthejourney yet to be traveled.
Best Employers are seemingly better prepared here.
70%83% 78% 88%
58%74%
Best Employer ScoresMkt. Average Scores
54Best Employers Study 2016
Imagineering the FutureDimensions to Imagineering 2020
How to become a Best Employer
Collaboration Takes Centerstage
Balance Work & Life
Rewards & Recognition Matters
Inculcate the ability for teams to work cohesively to drive speed, agility and innovation
Enable better work-life integration through omnipresent technology
Differentiate, reward and recognize effective performance and efforts
Inspirational Leaders and a Stellar Reputation Count
Build towards an inspirational leadership and a stellar reputation to set up for future-readiness
Raise the Bar on ‘Delivery of Promise’
Raisethebaron“deliveryofpromise”andfocusoncreationof purposeful organizations
55 Best Employers Study 2016
Risk. Reinsurance. Human Resources.
Vikrant Khanna Senior Consultant Insights & Innovation Aon Hewitt, APAC [email protected]
Kanika Manchanda Consultant Culture & Engagement Aon Hewitt, India kanika.manchanda@aonhewittcom
About Aon Aon plc (NYSE:AON) is a leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 72,000 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 andwww.aon.com/manchesterunited to learn about Aon’s global partnership with Manchester United.
© Aon plc 2016. All rights reserved.The information contained herein and the statements expressedare of a general nature and are not intended to address thecircumstances of any particular individual or entity. Although weendeavor to provide accurate and timely information and usesources we consider reliable, there can be no guarantee that suchinformation is accurate as of the date it is received or that it willcontinue to be accurate in the future. No one should act on suchinformation without appropriate professional advice after a thoroughexamination of the particular situation.
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