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

Aon Hewitt | © 2012 Aon Consulting Inc./Hewitt Associates Corp. (Aon Hewitt). All Rights Reserved. 2

Our Speakers

Andree Mercier, PartnerAon Hewitt

Francine Tremblay, Senior AssociateAon Hewitt

Stephane Rivet, Senior AssociateAon Hewitt


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


Agenda

Why Leadership MattersHow Canadian Leaders FareWhat About You?How Top Companies Build and Support the Right LeadersTop Five Things to Consider


Why LeadershipMatters


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!’


How Canadian Leaders Fare


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

3

Effectiveness


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


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


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


Questions


What About You?


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…


How Top CompaniesBuild Support and the Right Leaders


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


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


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

18

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


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

1


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




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

2


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

3


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


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


Provide accelerated development through meaningful, experiential, relational, and traditional processes


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


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

4


Questions


Top Five Things to Consider


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


How do you Compare?


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


Questions


For more information contact:

Angela KennellyTel: [email protected]

Daphne WoolfTel:[email protected]

Marie PinsonneaultTel:[email protected]


Thank you

hanging on to high performers - aon canada · hanging on to high performers: ... building and...

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