Keeping Employees Engaged: What Does It Take?

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    Sustainable engagement and the AsiaPacic workforce

    Asia Pacic is a diverse region and employeeengagement levels vary in different countries. In fast-growing economies such as China, India, Indonesiaand the Philippines, employee engagement levelsare much higher than in the developed economiesincluding Australia, Hong Kong, Japan, Korea,Singapore and Taiwan. [Refer Slide: Engagementlevels in APAC countries.]

    Nonetheless, in both the fast-growing and developedeconomies, talent attraction and retention remainkey challenges for organisations. Employers infast-growing economies nd that attracting criticalskill employees is their biggest challenge. They alsond it hard to retain fresh graduates. On the otherhand, employers in the developed economies havedifculty recruiting fresh graduates. [Refer Slide 9in TM&R deck.] Given the intense competition forworkers, an effective talent attraction and retentionstrategy requires keeping employees engaged.

    In addition, the correlation between employeeengagement and corporate performance means theopportunity exists for every organisation to improvebusiness performance by raising sustainableengagement. To do this, employers need to examinea number of elements in the work environment thataffect their employees.

    Stress, Work-life Balance and Workload

    From the study, Stress, Work-life Balance andWorkload is collectively identied as the mostimportant driver for sustainable engagement.However, workers are struggling to cope in thisaspect.

    Workers in Asia Pacic are stressed. More than40% of the workers are bothered by work stress.Paid time-off is under-utilised, especially in fast-growing economies including China, India, Indonesia,Malaysia, Philippines, where more than half of the

    workforce reported using fewer paid time-off daysthan in the past.

    Moving forward, more than half of the employeesin the region also expect to work more hours thannormal in the next three years.

    Excessive work pressure is a factor pushing peopleout of their companies. Of those who are likely toleave their companies within the next two years,61% admitted they are often bothered by excessivepressure on the job.

    However, it appears that leaders perceivedinterest in employee well-being can mitigate theeffect of excessive job pressures. The study foundthat leadership is a key factor driving sustainableengagement. Among many other leaders attributes,

    what counts for employees is whether their leadersshow a sincere interest in their well-being. Whileworkers are generally critical about their seniorcorporate leadership, in companies where there isperceived interest in employee well-being, workersare more favourable towards their leaders.

    Communication and Empowerment

    In a number of Asia Pacic countries, effectivecommunication and empowerment is another factorfor sustaining employee engagement levels. Thisis most prominent in China where employees who

    feel their organisation keeps them informed ofthe companys values, goals and performance aremore engaged. Likewise, employees who believemanagement takes the time to listen to and act ontheir suggestions are more engaged. In Hong Kongand Taiwan, the survey data reveals that a sharedview of organisational goals and objectives drivessustainable engagement. Unfortunately, there isa gap in effective communication of goals andobjectives.

    A signicant observation is the central role ofmanagers in enablement, energy and traditional

    engagement. The role of the direct manager hasshifted from being a technical expert that directsthe work of employees to more of a leader who canmotivate and coach their subordinates. Indeed, manyemployees have high expectations of their managersas people managers rather than task managers.

    Managers who make sure their subordinates haveadequate tools, resources and support to make thebest possible use of their skills, and who assigntasks suited to the skills of their subordinatesare viewed more favourably. They help enhanceshared accountability and sustainable engagement.

    Managers who can communicate goals clearly canhelp to alleviate pressure and set boundaries aroundan employees workload. In this way, they havesignicant inuence over employee engagement.

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    most other Asia Pacic countries, there exists theopportunity to optimise total rewards and increaseemployees understanding of the Employee ValueProposition (EVP).

    The EVP denes the give and the get between theemployer and the employee. It is the tangible andnon-tangible rewards that an employee expects toget in exchange for his commitment, discretionaryeffort and performance for the organisation. AnEVP could include the purpose and values of anorganisation, the job, the culture and the peopleaspects, and total rewards.

    There is evidence that effective EVP implementationmitigates poor pay equity perception, most notablyin Taiwan, Korea and India. It is also worth notingthat in Asia Pacic, the fast-developing economiesare actively investing in the implementation andcommunication of EVP. It is not coincidental thatthese countries have higher employee engagementlevels.

    Employers need to optimise their total rewardsprogramme that is based on a better understandingof employee needs, including healthcare programmesor retirement benets.

    While companies need to pay competitively and offerthe right pay, it is even more important for them tocommunicate effectively to employees about totalrewards and the EVP.

    Sustainable engagement needs to bestrengthened

    While the Asia Pacic region is dominated by fast-growing economies, the drive for business growth,and the changes and restructuring in workplacescan actually cause leaders to lose touch with theiremployees over time. Employers who are able toprovide reassurance and clarity to employees aboutthe changes taking place in the organisation, their

    job security and pay will go some way in mitigatingtheir employees stress and anxiety, and encouragetheir level of engagement.

    Even for companies with engaged employees,sustainable engagement is fragile and employerswould do well to strengthen the key enablers ofsustainable engagement in their organisation.

    It is evident from the study that a few factorsare important for getting it right with employees.These include effective leadership, effectivecommunication, performance management andproper communication of total rewards and theEmployee Value Proposition.

    About Towers WatsonTowers Watson is a leading global professional servicescompany that helps organisations improve performancethrough effective people, risk and nancial management.With 14,000 associates around the world, we offersolutions in the areas of employee benets, talent

    management, rewards, and risk and capital management.

    Copyright 2013 Towers Watson. All rights reserved.TW-AP-13-30515

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