© 2007 towers perrin july 2007 2007 global workforce study phase i core analytics – italy for...

July 2007

© 2007 Towers Perrin

2007 Global Workforce Study

Phase I Core Analytics – Italy

For regional/core country team use only.Not for external use.

2© 2007 Towers Perrin

ITALY

N Indicates new question/item asked in 2007

What’s new for the 2007 GWS

We have made a number of enhancements to the Global Workforce study this year; including changes to the survey items, the sample size, number of countries included, demographics, and methodology that you should know about before you begin to review your region/country results. While these changes will significantly enhance our ability to consult and market with this data, they do have implications for how you view your data.

About the survey The questionnaire now includes: intrinsic items (about me), “provocative” questions (I love/hate my boss)

and a general clean up or “tightening” up of other items. (About 1/3 of the survey items have changed) Countries and Sampling

We expanded the study from 16 to 19 countries in 2007 totaling 86,500 respondents (same as 2005)

Countries* 2005 2007 Countries* 2005 2007

Belgium 1,000 1,000 Korea 1,000 1,000

Brazil 1,000 1,500 Mexico 1,000 1,000

Canada 5,000 5,000 Netherlands 1,000 2,500

China 1,000 5,000 Poland --- 1,000

France 3,000 5,000 Russia --- 1,500

Germany 3,000 3,000 Spain 1,000 1,000

Hong Kong --- 1,000 Switzerland --- 1,000

India 1,000 4,500 U.K. 3,000 5,000

Italy 1,000 1,000 U.S. 60,000 41,500

Japan 1,000 4,000

2007 Total Sample: 86,500

*Ireland was dropped from the 2007 study


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Engagement methodology The expansion of our engagement model allows us to more fully understand what engages employees

and the role that employer’s can play in engaging their workforce. Often referred to as the “think, feel and act” model

Our new model expands our classification of our engagement items from two to three categories: Rational, Emotional, Motivational Rational items

— I believe strongly in the goals and objectives of this company N

— I fully support the values for which this company stands N

— I understand how my unit/department contributes to the success of my organization Emotional items

— I would recommend my organization to a friend as a good place to work— I am proud to tell others I work for my organization— My organization inspires me to do my best work

Motivational items— I am willing to put in a great deal of effort beyond what

is normally expected to help my organization succeed— I am personally motivated to help my organization be successful— I fully apply my skills and abilities in my work N

In addition, three of the nine original engagement items were dropped — I understand how my role is related to my organization’s overall goals, objectives and direction— My job provides me with a sense of personal accomplishment— I really care about the future of my organization


ITALY



Engagement methodology (cont’d) We have expanded our highly engaged, moderately engaged and disengaged group to four

categories which provides us with an opportunity to understand more about the “massive” middle – or moderately engaged group

For now our new labels/categories are: Fully engaged, Partially engaged, partially disengaged and fully disengaged (These are descriptive labels used to create this grouping. We will adjust these labels to capture the unique nature of engagement in each group— We used a different methodology to arrive at this grouping by allowing the data to tell us where

the groups clustered or fell into categories. In 2005 we used a a distinct cut-off in overall engagement score to determine engagement level (ex. In 2005 highly = overall engagement score of 4.55 or greater)

All of these changes directly affect your ability to make apples-to-apples comparisons between 2005 and 2007. So, some things to keep in mind as you review this data Because of the addition of items that could serve as potential drivers you may have an item that has

dropped from the 2007 list that appeared in 2005. This DOES NOT mean that these items are no longer important to the respondents it is just that other new items (intrinsic – about me) were more important drivers. Please refer to the question-by-question reports to see how these items were rated by respondents in your data


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Top drivers of attraction

Attraction Drivers

Challenging work 1

Competitive base pay 2

Career advancement opportunities 3

Convenient work location N 4

Learning and development opportunities 5

Flexible schedule N 6

High level of autonomy 7

Short-term incentives 8

Competitive benefits 9

Innovative environment N 10

Source: Towers Perrin 2007 Workforce Study — Italy.


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Top drivers of attraction by age group

Attraction DriversItaly

OverallAges 18

to 29Ages 30

to 44Ages 45

to 54Age 55 or Older

Challenging work 1 2 2 1 1

Competitive base pay 2 1 1 2 3

Career advancement opportunities 3 3 3 3 4

Convenient work location N 4 4 4 4 8

Learning and development opportunities 5 5 6 6 6

Flexible schedule N 6 6 5 7 —

High level of autonomy 7 — 7 5 2

Short-term incentives 8 8 8 9 —

Competitive benefits 9 7 9 — 9

Innovative environment N 10 — — 8 7

Long-term incentives — 9 — — —

Vacation/paid time off — 10 — — —

Reputation of the organization as a good employer

— — 10 10 10

Competitive retirement benefits — — — — 5



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Patterns of employee mobility

2007

5%6%

10% 21%

58%

No plans to leaveNot looking, but would consider another offerActively looking for another jobMade plans to leave current jobPlan to retire in the next few years



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Top drivers of retention

% Favorable

23%

47%

56%

18%

17%

57%

Competitive career development N

Salary criteria are fair and consistent

Organization’s reputation in community N

Can impact quality of work/product/service

Manager acts quickly if I ask for help

Satisfaction with the organization’s people decisions

Drivers are shown in descending order of importance



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2007 Employee engagement items

Rational items

I believe strongly in the goals and objectives of this company N

I fully support the values for which this company stands N

I understand how my unit/department contributes to the success of my organization

Emotional items

I would recommend my organization to a friend as a good place to work

I am proud to tell others I work for my organization

My organization inspires me to do my best work

Motivational items

I am willing to put in a great deal of effort beyond what is normally expected to help my organization succeed

I am personally motivated to help my organization be successful

I fully apply my skills and abilities in my work N

Rational Emotional

Motivational

Engagement

Notes:One question of the engagement model has been altered from prior versions. Do not use earlier versions of the engagement model.

All 9 items in the current model have been validated globally.


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Respondent scores on the components of engagement

% Favorable

72%

51%

63%

30%

51%

35%

58%

42%

37%Believe in organization's goals/objectives N

Apply skills/abilities in work N

Support organization’s values N

Understand how my unit contributes to organization’s success

Recommend organization as a good place to work

Organization inspires me to do my best work

Willing to put in a great deal of effort to help my organization succeed

Personally motivated to help organization succeed

Proud to tell others I work for my organization

Rational Components

Emotional Components

Motivational Components



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Employee engagement levels

2007

13%

40%

11%

36%

Fully Engaged Partially Engaged Partially Disengaged Fully Disengaged



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Engagement levels: Relative favorability and frequency clusters

-2

-1.5

-1

-0.5

0

0.5

1

1.5

2

Fully Engaged Partially Engaged PartiallyDisengaged

Fully Disengaged

Rational Emotional Motivational

40% 13%36%11%

RelativeFavorability



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Engagement levels: Percent favorable by engagement component

97

67

20

6

91

57

15

4

97

84

42

17

0

20

40

60

80

100

Fully Engaged Partially Engaged PartiallyDisengaged

Fully Disengaged

Rational Emotional Motivational

PercentFavorable



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57%

32%

56%

35%

27%

89%

46%

38%

59%

22%

Top drivers of engagement

Senior management communicates openly and honestly

Input into decision making in my department

Understand potential career track within organization N

Organization quickly resolves customer concerns N

Enjoy challenging work assignments that broaden skills N

Organization supports work/life balance

Manager understands what motivates me

Set high personal standards N

Belief that senior management values the workforce N

Can impact the quality of work/product/service

% Favorable




ITALY


51%

18%

11%

37%

77%

43%

36%

70%

53%

20%

18%

27%

How engagement affects employees’ views of their contribution to the company

79%

47%

27%

69%

I can impact the quality of our work/product/service I can impact costs

I can impact customer satisfaction

56%

29%

18%

42%

54%

22%

9%

41%

I can impact revenue growth

I can impact the overall profitability of my organization

Fully Engaged Partially Engaged Partially Disengaged Fully Disengaged

I can impact innovation of products/services N



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5%0%

3%

43%

49%

5%7%

16%

15%

58%

How engagement affects mobility

Partially Disengaged

Fully Engaged


5%4%

3%22%

66%

5%16%

24%

14%

40%

Fully Disengaged

Partially Engaged



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Using a similar methodology used to derive engagement and retention drivers, we looked at which senior management behaviors drive a respondent’s feelings towards senior management (Q1225 – How do you feel about your senior management?)

33%

31%

22%

35%

29%

20%

Drivers of overall perception of senior management

Senior management sincerely interested in employee well-being

Senior management tries to be visible and accessible

Senior management acts in customers’ best interests

Senior management communicates openly and honestly

Senior management’s has communicated clear vision for long-term success

Senior management actions consistent with our values


% FavorableSource: Towers Perrin 2007 Workforce Study — Italy.


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Using a similar methodology used to derive engagement and retention drivers, we looked at which immediate manager behaviors drive a respondent’s feelings towards their supervisor (Q1212 – How do you feel about your boss?)

46%

34%

35%

51%

33%

Drivers of overall perception of immediate managers

Manager inspires enthusiasm for work

Manager treats people with respect

Manager understands what motivates me

Manager effectively coaches employees

Manager empowers people to take initiative


% FavorableSource: Towers Perrin 2007 Workforce Study — Italy.


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Overview of the three sets of drivers (attraction, retention and engagement)

Top Attraction Drivers Top Retention Drivers Top Engagement Drivers

Challenging work Competitive career development N Senior management communicates openly and honestly

Competitive base pay Salary criteria are fair and consistent


Career advancement opportunities Organization’s reputation in community N

Understand potential career track within organization N

Convenient work location N Manager acts quickly if I ask for help

Organization quickly resolves customer concerns N

Learning and development opportunities

Can impact quality of work/product/service

Enjoy challenging work assignments that broaden skills N

Flexible schedule N Satisfaction with the organization’s people decisions

Organization supports work/life balance

High level of autonomy Manager understands what motivates me

Short-term incentives Set high personal standards N

Competitive benefits Belief that senior management values the workforce N

Innovative environment N Can impact quality of work/product/service



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Overview of the three sets of drivers by reward quadrant (attraction, retention and engagement)

Attraction Retention Engagement

Pay

2. Competitive base pay

8. Short-term incentives

Pay

2. Salary criteria are fair and consistent

Pay

Benefits

9. Competitive benefits

Benefits Benefits

Learning and Development

3. Career advancement opportunities

5. Learning and development opportunities


1. Competitive career development N

4. Manager acts quickly if I ask for help


3. Understand potential career track within organization N

5. Enjoy challenging work assignments that broaden skills N

Work Environment

1. Challenging work

4. Convenient work location N

6. Flexible schedule N

7. High level of autonomy

10. Innovative environment N

Work Environment

3. Organization’s reputation in the community N

5. Can impact quality of work/product/service

6. Satisfaction with the organization’s people decisions

Work Environment

1. Senior management communicates openly and honestly

2. Input into decision making in my department

4. Organization quickly resolves customer concerns N

6. Organization supports work/life balance

7. Manager understands what motivates me

8. Set high personal standards N

9. Belief that senior management values the workforce N

10. Can impact quality of work/product/service


Reference


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Overview of the three sets of drivers (attraction, retention and engagement) - 2005

Top Attraction Drivers Top Retention Drivers Top Engagement Drivers

Challenging work Organization provides clear pay information

Senior management interest in employee well-being

Competitive base pay My manager handles performance reviews fairly and effectively

Improved my skills and capabilities over the last year

Career advancement opportunities Satisfaction with the organization’s business decisions

My manager understands what motivates me

Learning and development opportunities

Low- or no-stress work environment


Work/life balance My manager provides access to learning opportunities

Reputation of the organization as a good employer

Salary increases linked to individual performance

Can express views openly even if I know people disagree

Salary criteria are fair and consistent

Collaborative environment Organization retains people with needed skills

Opportunities to learn and develop new skills

Organization’s financial health Organization allows for flexible work schedule

Senior management acts in customers’ best interests

High level of autonomy Good collaboration across units

Leading-edge technology Appropriate amount of decision-making authority to do my job well



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Overall employee engagement levels - 2005

2005

DefinitionsHighly engaged = Top scores across the nine items that define engagementDisengaged = Bottom scores across the nine items that define engagementModerately engaged = Everyone in between

64%

7%

29%

Highly Engaged Moderately Engaged Disengaged



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Patterns of employee mobility - 2005

2005

7%4%

10%33%

46%



© 2007 towers perrin july 2007 2007 global workforce study phase i core analytics – italy for...

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