Engagement and the Generations HEABC Annual Conference 25 June 2007

Engagement and the Generations

HEABC Annual Conference

25 June 2007

2Hewitt Associates—Private and Confidential 2007 Best Employers in Canada

Today's discussion

Where did the research come from?

What have we learned from the Study?

What did we learn from our generational research?

How can we get better and learn from the Best?

Why is doing this kind of research important to you?

Where did this researchcome from?


What is the Best Employers study all about?

Sponsors

Partners


What is the Best Employers study all about?

Primarily a RESEARCH study• Learn what is going on in Canadian workplaces• Enable employers to see how they are doing and how they

compare to broader trends

Extensive multi-year comparative database • 300 individual employers representing 750,000 Canadian

workers• 200,000 unique employee opinions• 3,000 unique leader opinions• 50+ industry/sector/demographic comparisons

The annual list of the 50 Best Employers in Canada is a by-product of the research


How do organizations participate?

• At least 400 permanent employees (50 to 399 for BSME Study)• At least 3 years in business in Canada• Required to complete 3 different survey instruments• Minimum number of completed surveys varies by organization size

Em

plo

yee

s

HR

Fu

nctio

n

Ex

ecu

tive T

eam

Employee OpinionSurvey

Human ResourcesSurvey

Leadership TeamSurvey


The Top 10 2007 Best Employers


Core measure: Employee engagement

Engaged employees exhibit the following three key behaviours:

SaySay

Consistently speak positively about the

organization to co-workers, potential

employees and customers.

StayStay

Have an intense desire to continue working for the

organization.

StriveStrive

Exert extra effort and engage in behaviours

that contribute to organizational success.

EngagementEngagement 77% of employeesare engaged at

a typicalBest Employer


The benefits of high employee engagement

Studies show that high engagement can lead to:

Financial Success• Greater financial returns• Greater growth• Greater customer

satisfaction

High Morale• Higher employee morale and

sense of accomplishment• Greater alignment among

leaders and between leaders and employees

• Greater employee alignment withvalues and workplace culture

Productivity• Less sick time• Fewer lost days due to accidents• High performance culture• Employees more focused on

future direction and strategies

Attraction & Retention• Lower turnover• More applications for

employment

What have we learned fromthe Study?


Engagement varies widely…

Canada – 63% BC – 64%


Engagement by Job Type

40%

50%

60%

70%

80%

90%

SeniorManagement

MiddleManagement

Supervisor /Team Leader

Professional /Specialist /Technician

Front-line Ee /Production TmMbr / Service

Team Mbr

Administrative /ClericalSupport

% Engaged

Canada (63%) Alberta (61%) BC (64%)

Engagement is complex – every sector / organization / region faces different issues


Engagement by Generation

40%

50%

60%

70%

80%

90%

Millenials (1981and later)

Generation X (1966to 1980)

Late Boomers(1961 to 1965)

Early / MidBoomers (1946 to

1960)

Matures (Before1946)

% Engaged

Canada (63%) Alberta (61%) BC (64%)

Even generational differences vary across sectors / regions / organizations…


Generational differences narrow as engagement rises…

Engagement by Generation

30%

40%

50%

60%

70%

80%

90%

100%

Millenials (1981and later)

Generation X(1966 to 1980)

Late Boomers(1961to 1965)

Mid Boomers(1951 to 1960)

Early Boomers(1946 to 1950)

Matures(Before 1946)

% Engaged

Maintain Zone (Eng. Avg. 74%) Journey Zone (Eng. Avg. 57%)

Rethink Zone (Eng. Avg. 38%)

Engagement Gap = 11%




But overall Millennials and Generation X aren’t happy with today’s employment deal…

Engagement by Years of Service

30%

40%

50%

60%

70%

80%

90%

100%

Less than 2years

2 to 5 years 6 to 10 years 11 to 15years

16 to 20years

21 to 25years

26 or moreyears

% Engaged

Millennials Gen X Matures Boomers

What did we learn from our generational research?


What is important to Canadian workers?

Two perspectives drawn from Best Employer research:

• What is important for employee engagement?

• What is important when choosing to join or stay with an organization?

Are they the same / different?

Personal Work Values = Attraction & RetentionEngagement = Attraction, Retention & Motivation


Engagement Drivers

Hewitt’s Engagement Model TM


Top 5 Drivers of Employee Engagementby Generation

Matures Early/Mid Boomers

LateBoomers

Gen X Millennials

Career Opportunities



Managing Performance





RecognitionCareer

Opportunities

Organizational Reputation

Recognition RecognitionCareer

Opportunities WorkTasks

PeoplePractices




Recognition

RecognitionPeople

PracticesPeople

PracticesWork

Processes Organizational

Reputation

Senior Leadership

WorkProcesses

WorkProcesses

(1)

(2)

(2)

(4)

(5)

(5)

(5)

(1)

(1)

(3)

(4)

(4)

(1)

(1)

(1)

(4)

(4)

(1)

(1)

(3)

(4)

(4)

(1)

(2)

(2)

(2)

(5)

(5)

Matures – pre-1946Early/Mid Boomers – 1946 to 1960Late Boomers – 1961 to 1965Generation X – 1966 to 1980Millennials – 1981 and later

SeniorLeadership

WorkTasks


Special Generational Researchincluded in the 2007 Best Employers StudyPartnered with an academic research team led byDr. Linda Duxbury

• General Work Opinions – level of agreement with a series of statements about the work environment

• Personal Work Values – work environment factors that are important for choosing to join or stay with an organization

Employee responses were segmented by generation• Ranked to identify differences in work opinions and personal

work values of the generations and other sub-groups


Top 5 Personal Work Values Affecting Decision to Join or Stay in Organization

Matures Early/Mid Boomers

Late Boomers

Gen X Millennials

Supportive Supervisor



Interesting Work

GoodSalary

Access to Information


Interesting Work

GoodSalary

InterestingWork

InterestingWork

InterestingWork

GoodSalary


Advancement Opportunity

Fully Use Abilities

GoodSalary

Work / Life Balance

Work / Life Balance


Work / Life Balance

Work / Life Balance


Continuous Learning

Continuous Learning

Doing Work Consistent with Moral

Values

(1)

(1)

(3)

(3)

(5)

(5)

(1)

(1)

(1)

(4)

(4)

(1)

(1)

(1)

(4)

(5)

(1)

(1)

(3)

(3)

(5)

(1)

(2)

(3)

(4)

(4)

Matures – pre-1946Early/Mid Boomers – 1946 to 1960Late Boomers – 1961 to 1965Generation X – 1966 to 1980Millennials – 1981 and later

Doing Work Consistent with

Moral Values

Fully Use Abilities

AdvancementOpportunity

ContinuousLearning


Similarities / differences across generations

Similar Personal Work Values


Interesting Work

Work / Life Balance (4)

Good Salary (4)

Similar Engagement Drivers



Recognition


Different Personal Work Values

Mature (pre-1946)Fully Use Abilities

Doing Work Consistent with Moral Values

Millennial (1981+)Advancement Opportunity

Continuous Learning (Millennial / Gen X)

Different Engagement Drivers

Mature (pre-1946)Senior Leadership

Millennial (1981+)Work Tasks


Conclusions from broad research

Significant common ground across engagement and work values research:

• Manager/supervisors make or break the organization

• Interesting work is important to everyone

• People want to work for one of the “best”

• Every organization needs to define its deal regarding work / life balance


Conclusions from broad research

Important differences that can be exploited

• Matures want to be valued as full contributors rather than people coasting toward the end of their work-life

– They want to fully use their abilities– They want to do work that has integrity– They want to work for leaders who are effective, provide clear

direction for the future and are trustworthy

• Millennials want to learn and have opportunities for advancement – and they really want to enjoy the specific work they do

How can we get better and learn from the Best?


The approach to maintaining and improving engagement depends on where you are…

Canada – 63% BC – 64%


Building or maintaining high engagement

Regardless of where you start, building and maintaining high engagement:

• Is a core organizational strategy, not an HR initiative

• Is an never ending journey

• Requires a well planned and executed approach

• Requires you communicate your intent


Characteristics of the Best

Leaders who Lead

Managers who Manage

Hire, Promote and Reward for Fit

Why is doing this kind of research important to you?


Why is doing this kind of researchimportant to you?Do you know your level of engagement?

Do you know where your engagement hot spots are?

Do you know what the personal work values are amongst your employee population? What about your target recruitment populations?

Do your employees’ personal work values fit with your employment deal?

Your Questions?

www.hewitt.com/bestemployerscanada

Toll-free 1-877-740-9199

Neil CrawfordHewitt Associates1111 West Georgia StreetVancouver, BC V6E 4M3

604 683 7311 – main604 683 0249 – fax 604 317 5450 – mobile [email protected]

Documents

Engagement and the Generations HEABC Annual Conference 25 June 2007