Hanging on to High Performers - Aon Canada · Hanging on to High Performers: ... Building and...
Transcript of Hanging on to High Performers - Aon Canada · Hanging on to High Performers: ... Building and...
Prepared by Aon Hewitt
© 2012 Aon Consulting Inc./Hewitt Associates Corp. (Aon Hewitt). All Rights Reserved.
TALENT RETENTIONHanging on to High Performers:
Building and Engaging Great Leaders
Wednesday, March 7, 2012
Part one of a three part webcast series
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Our Speakers
Andree Mercier, PartnerAon Hewitt
Francine Tremblay, Senior AssociateAon Hewitt
Stephane Rivet, Senior AssociateAon Hewitt
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Three Part Webcast Series
Part One - Building and Engaging Great LeadersPart Two - Manager Effectiveness– March 29
Part Three - Connecting with Employees through Social Media– April 24
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Agenda
Why Leadership MattersHow Canadian Leaders FareWhat About You?How Top Companies Build and Support the Right LeadersTop Five Things to Consider
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Why LeadershipMatters
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Why Leadership Matters
There is a strong link between business performance and leadership effectiveness...
Source: Hewitt’s Double Digit Growth Research
39% of the variance in business results is a
function of engagement R = 0.63
69% of the variance in engagement is a
function of leadership effectiveness R = 0.83
Leadership effectiveness
Employee engagement
Better business results‘People don’t leave
organizations…they leave
bad bosses!’
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How Canadian Leaders Fare
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How Canadian Leaders Fare –2012 Best Employers Research
Research is based on the 2012 Best Employers in Canada Study participants consisting of over 267 organizations with feedback from over 118,000 employees and 2,500 executive team members
Research Goals
Understand relationships between leader effectiveness, engagement and other work environment factors
Support Assess the perceived level of support people leaders receive
1
2
AlignmentDegree of alignment on leader effectiveness and support between employees, people leaders and executive teams
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Effectiveness
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How Canadian Leaders Fare
52%
76%
Top Team’sperception
of support given to leaders
70%
87%
Top Team’sperception of leaders
effectiveness
36%45%Organizations with LOWengagement
68%73%Organizations with HIGHengagement
% of leaderswho feel
well supportedby their
organisation
% of employeeswho view
their leader to be effective
Source: Aon Hewitt Best Employers Database (2012)
Leaders feel engaged when they feel supported
(0.74 correlation)
Do some Top Teams have a ‘blind spot’?
Leaders in high engagement organizations feel more supported andare viewed to be more effective by their people
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What Specifically Makes Employees View Their Leaders As Effective?
Employees want regular, meaningful feedback and advice from their leaders about four things:1. How they’re doing against what’s expected2. Why their contribution is appreciated3. What they could do to develop their skills4. What they should be doing to advance their careers
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0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
I get the support Ineed to successfullymanage others (e.g.
training, development,coaching, tools, time,
resources)
I have enough timeeach day to coach and
develop my team
I have the tools andresources I need to
provide valuablecareer advice to
individuals on my team
I have the training /development /
coaching I need toprovide valuablecareer advice to
individuals on my team
I receive effectivefeedback from my
manager on how myleadership style
influences my team
I get the support Ineed to help people onmy team improve their
performance (e.g.training, development,
coaching, tools,resources)
How Canadian Leaders Fare: Level of Support – Two weak links
Source: Aon Hewitt Best Employers Database (2012)
High Engagement (65% and above)* Moderate Engagement (45% to 65%)* Low Engagement (Below 45%)*
% Strongly Agree / Agree
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Questions
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What About You?
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What About You?
Ensure it will have enough of the right leaders to meet its evolving needs?
Develop its leaders at all levels using a variety of methods?
Select the right leaders?
Evaluate the feasibility of its leaders to deliver what’s expected of them?
Deliver the right level of support to each leader?
Measure the effectiveness of its leaders?
This is a StrengthWe’re OK
We Need to ImproveHow well does your organization…
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How Top CompaniesBuild Support and the Right Leaders
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How Top Companies Build and Support The Right Leaders
Top Companies for Leaders (TCFL) is the most comprehensive longitudinal study of talent management and leadership practicesaround the globeThere is a clear link between financial success and great leadership practicesThis is the 6th TCFL study that Aon Hewitt, Fortune and RBL Group have collaborated478 Companies from 25 countries participated in 2011 study…Detailed 88 item questionnaire182 were selected as finalists– Followed by in-depth/structured interviews of senior leaders and HR
Finalists evaluated by an esteemed panel of judges including authors, academics, and journalists… Consider survey and interview data, company reputation, leadership culture and values, and business performance over the past five years
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Major Themes Uncovered in 2011
The emotional side of leadership is powerful Integration and embedded-ness of leadership programs/practices is critical One-size fits none: customization and differential investment in development for different groups Diversity is a must—composition of the executive team and the pipeline must show this Cultural agility is paramount to success in emerging markets: leaders must think globally but act locally
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Model behaviourDedicated to developing talentBuild a pipeline
Leadership strategy part of business strategyAligned practices Practical, relevant, and easily executable
Invest in top talentFocus permeates all levels Focus on development, hiring, coaching, promoting, and rewarding
Institutionalized mindsetCulture, decision-making, growth strategyOrganizational DNA
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What Differentiates The Top Companies for Leaders —The Four Disciplines
Leaders Lead the Way
Unrelenting Focus on Talent
Practical and Aligned Programs and
Practices
When Leadership Becomes a Way of Life
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Leaders Lead The Way – Commitment
Commitment starts at the topTCFLs are passionate about cultivating leaders and act on that passion daily… it's a mindset not a programLeaders role model the values and take personal interest in and responsibility for their talentThey are committed to keeping a pipeline of engagedleadership talent and a strong leadership 'brand'They inspire confidence of employees and customersThey actively manage the 'leadership system''Conversion rate' defines success (ability to take bigger roles and responsibilities) Each board member takes responsibility for a select group of employeesBoards spend significant time on leadership activities... (succession planning, coaching, talent reviews)…44% of TCFLs vs 9% of others
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The Board and Executive Teams at Top Companies Are Actively Involved in Leadership Practices
Leaders are engaged and values driven. They demonstrate the right behaviors, right skills, right way
Source: Aon Hewitt’s 2011 Top Companies for Leaders Study, North America data
Reviewing talent and succession planning
Leading/participating in company programs Coaching/Mentoring
Top Companies All Others
100%100%
68%
100%100%
52%
100%100%100%
88%
75%
24%
80%
68%
14%
83%81%
90%
0%
20%
40%
60%
80%
100%
BOD CEO SeniorManagement
BOD CEO SeniorManagement
BOD CEO SeniorManagement
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Unrelenting Focus On Talent – Connected
They walk the talk… are passionate about their roles…and zealous about bringing others alongA sense of purpose becomes paramountTCFL leaders work to understand who their talent are, what inspires them and what aspirations they haveSenior leaders embrace the personal side of leadership and attend to the emotional aspects of their peopleThis fosters trust in people, trust in the culture, trust in the systemThey have regular, robust, ‘real’ talent reviews at all levelsThey connect all of the phases of the leadership life cycle –hiring, coaching, developing, promoting, rewarding
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Practical & Aligned Practices – Comprehensive
Leadership programs explicitly link to business strategyPractices connect and build upon each other and drive toward achieving business goalsHigh potentials are identified through both objective and subjective inputsThey calibrate top talent and customized development plans are implementedThey continuously look to the future to determine what is neededThey hold people accountable in meaningful waysTCFLs measure the strength and diversity of their pipelines as well as their ability to retain leaders and critical talent more oftenPay decisions are based on both performance and potential (80% vs 45%)They provide accelerated development through meaningful, experiential, relational, and traditional processes
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Conduct robust talent reviews, including honest talent-management discussions that are facilitated and calibrated consistently
Use metrics to evaluate their ability to create a sustainable, future-focused workforce
Top Companies’ PracticesRobust talent review processes drive accountability for individual and leader
Targeted succession planning for specific positions and talent pools
Rigorous assessment of talent (360 degree and third party assessments)
Succession Planning—Top Companies For Leaders
Source: Aon Hewitt’s 2011 Top Companies for Leaders Study, North America data
Top Companies’ PracticesStrength of pipeline Diverse candidates in succession poolDiversity in pipeline Bench strengthRetention of leaders Placement rate of divers candidatesRetention of HP’s Ability to resource growth initiatives
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Provide accelerated development through meaningful, experiential, relational, and traditional processes
Source: Aon Hewitt’s 2011 Top Companies for Leaders Study, North America data
First opportunity to move into key positions
Leaders as Teachers
Customized leadership training
Special assignments directly related to corporate social responsibility strategy
Corporate philanthropy exercises
Service on nonprofit Board
Access to senior leadership meetings
Shadowing senior executives
Mentoring – internal provider
Structured opportunities for peer networking
Exposure & visibility to CEO/senior management
Greater exposure & visibility to Board of Directors
Coaching – internal provider
Coaching – external provider
Special projects/action learning
Global assignments
Rotational assignments
Developmental assignments
High Potentials
Front Line Management
Middle Management
Senior ManagementPractice
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When Leadership Becomes A Way Of Life –Culture
TCFLs have distinctly strong cultures that guide their organizationsThey key on training leaders on the new realities based on self-awarenessThe personal side of leadership is critical to setting the tone for the organization's internal cultureLeaders play the primary role in shaping the internal brandor EVP that drives attraction and retention of the right leadership talentTCFLs focus on the personal, emotional and inspirational side of leadershipOne of the most powerful leadership skills is aligning the entire organization in the same direction with clear expectations of what is acceptable and expectedThis clarity increases productivity and engagementTCFLs are intentional in their leadership branding efforts
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Questions
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Top Five Things to Consider
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Top Five Things to Consider
1. There is a strong link between leadership effectiveness, employee engagement and business performance.
2. Leaders in high engagement organisations are more engaged, feel more supported, and are viewed to be more effective by their people
3. An effective leader provides meaningful feedback and advice to employees about:• How they’re doing against what’s expected• Why their contribution is appreciated• What they could do to develop their skills• What they should be doing to advance their careers
4. What differentiates The Top Companies For Leaders :• Leaders lead the way• There is and unrelenting focus on talent• There are practical and aligned programs and practices• Leadership is a way of life
5. Cultural agility, diversity, customization of leadership programs and emotional leadership are becoming increasingly important to Top Companies For leaders
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How do you Compare?
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How Do You Compare? Benchmark Yourself…
Manager Effectiveness and SupportA comparison of your organization with other companies in your Engagement zoneAlso included is an analysis of your company’s Manager Effectiveness/Support results by an Aon Hewitt consultant. This may include:– An analysis of what aspects of manager
effectiveness contribute to employees’engagement
– How the findings and analysis can help your organization become a better place to work
– A qualitative analysis of employee-submitted verbatim comments to support the above findings
2011 Top Companies for Leaders Benchmark Report
Available against Global and/or Regional Top Companies, Regional Top Companies, by industry, or any combinationReport covers over 57,000 data points from the survey comparing your company against a selected benchmark group and all other participants; includes specific gaps and opportunities along with general insights into what the best do on a number of leadership practicesInsights/deep dives include ((# of survey items):– Leadership Strategy (160)– Succession Management (93)– Leadership Development (212– High Potential/Critical Talent (207)
Top Companies for Leaders
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Questions
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For more information contact:
Angela KennellyTel: [email protected]
Daphne WoolfTel:[email protected]
Marie PinsonneaultTel:[email protected]
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Thank you