Aon Hewitt Talent Practice Myth Busting: “Business leaders are responsible for driving employee engagement” Over the years, managers’ role in engaging employees and nurturing high-performance teams has become solidified as employees ask for more than guidance on The four key imperatives on the agenda of the HR professionals who are effectively building engagement in their organizations should be: the daily activities or assurance of a monthly paycheck; Know the workforce however, with such emphasis on the managers’ role, has HR consequently abandoned its vital role in driving employee engagement? One of the biggest challenges facing HR is driving engagement by working through, and with, managers. Dealing with this challenge gets to the heart of what it really means for HR to be a strategic business partner. The ability of HR to engage managers, build engagement capabilities and develop an overall engaging Communicate well with leaders and managers Focus on the business outcomes of engagement organizational culture should overcome the inevitable challenges of managerial interest and commitment. Develop management strength Risk. Reinsurance. Human Resources. Focus on the business outcomes of engagement When tackling engagement issues, effective HR Managers start with the end result in mind. They understand that employee engagement scores are just an indicator of organizational wellbeing and that the value of engagement lies in its impact on organizational performance. Instead of commissioning an engagement survey and communicating the results, proactive HR professionals define their organization’s engagement agenda. They make sure they understand the business fundamentals and the outcomes that matter. Rather than resigning themselves to the fluctuating interest of management in engagement matters, they work hard to demonstrate the business value of engagement and develop engagement objectives (and associated business outcomes) that managers would relate to. Practical steps HR professionals can take: • Understand what the important business outcomes are. • Compile data to link engagement scores to business The bottom line is always important, but do not leave it outcomes (it does not require several years of data at that. Develop a detailed insight into the key business to achieve this). Correlate performance of different processes and performance measures that lead to valued business units with their engagement scores and outcomes and speak to key managers to understand this. correlate senior managers’ engagement scores with • Instead of waiting for the survey results, start with setting engagement objectives long ahead of the survey launch. Convene an annual ‘people strategy’ meeting with key managers to discuss the business strategy, its likely impact on employees, the risks, the key employee segments and what is required from the employees. Develop the HR those of their units. Also compile qualitative data such as stories from employees and managers. The latter, although not statistically robust, often has a disproportionate influence on people’s beliefs about engagement. • Keep a steady course on engagement even when programs based on this. This has the advantage of making the organization is engulfed by unexpected waves - engagement the foundation of the HR programs rather e.g. changes in the economy, loss of key customers, than a separate stream of work. mergers or acquisitions. In these circumstances, employee engagement is even more important as uncertainty makes it harder for employees to focus on their contributions. Aon Hewitt Myth Busting: “Business leaders are responsible for driving employee engagement” 2 Know the workforce The employee engagement survey is a solid but incomplete starting point for understanding the workforce. The survey results will indicate the employees’ average and/or extreme attitudes, priorities and perceptions, as well as their overall wellbeing; however, as anyone who has been through an engagement survey process knows, results can be interpreted in various ways and HR professionals need to go beyond the survey data to really understand the workforce. Would the CEO rely only on market data to make investment decisions? The answer is “no” and neither should HR professionals. HR professionals’ deep insight and knowledge of the workforce will give them the credibility to engage senior management in robust discussions on the linkages between engagement and performance and the ways to enhance these. Practical steps HR professionals can take: • Always look at engagement at different levels of management and see how it correlates with their employees’ engagement (the survey provider can help break down engagement data to understand employee segments). Make sure to know who are the key employee segments and look at their engagement levels and challenges. Consider the statistical data as well as the qualitative data, and if there is not enough qualitative data available, set up one-on-ones or group meetings to get more insights. • Speak to the employees. This is obvious, but in the day-to-day drive of HR activities, are HR professionals only listening to those employees who come to present problems? By proactively seeking out different employees’ views, HR can identify problems before they arise and even more importantly, identify pockets of good practices and positive engagement that will save HR from being the organizational ‘doomsayer’. Aon Hewitt Myth Busting: “Business leaders are responsible for driving employee engagement” 3 Communicate well with leaders and managers In order to be credible, HR professionals need to communicate about people and the organization with imagination, flair and an eye to the future. This can sometimes be difficult to achieve as HR and other leaders and managers might be caught up in routine communication dealing with the short-term issues and priorities and rarely taking the time to consider the big picture. The same pitfall applies to communication about employee engagement. Too many companies present or just send the engagement survey results to managers hoping they will do something with them. In many instances, managers themselves get little say in determining the priorities and actions that should be taken. Worryingly, our research with managers show that a high proportion of them strongly believe that they cannot influence the action planning to improve engagement in future years, as budgets and strategic plans are determined by the executive team at corporate level - a sure indicator of ‘disengagement with engagement’! Is this management ‘resistance’ at its best, or is HR failing to bring engagement to life for its stakeholders? The engagement survey is the ‘scientific’ part of the process; the art is in crafting a narrative that speaks to business priorities while bringing the employee voice to the forefront and engaging managers in the way forward. Practical steps HR professionals can take: • Continuously monitor the HR communication for clarity • Avoid the temptation to go it alone. Engage managers and impact and consider taking remedial action where in key annual people planning milestones - setting up communication does not achieve its objectives. the annual HR programs, deciding how to measure • Develop a communication plan to cover all the planned HR programs and initiatives. Ensure that key messages to managers weave employee engagement seamlessly. • Review the HR programs and initiatives and assess whether they are trying to peddle too many initiatives. Do HR initiatives make sense together or are they disjointed? engagement, action planning for the survey results, etc. • Engage key managers on their units’ unique challenges while keeping them aware and raising their understanding of the business challenges overall. Work with managers to tweak organizational solutions to address their respective units’ requirements. If managers are suffering from initiatives overload, HR messages will easily get lost. If this is the case, find ways to streamline the initiatives and the associated communication. Aon Hewitt Myth Busting: “Business leaders are responsible for driving employee engagement” 4 Develop management strength Often people are promoted to management based on competencies other than expertise in people management. Programs that develop leaders’ and mangers’ strength on people management are therefore essential to laying the foundations for high employee engagement. Communication fosters awareness, motivation and desire in managers to engage people, but more is needed to develop the skills for effective people management. It is of no use assigning performance objectives on engagement for managers and then letting the managers ‘get along’ with it without providing them with consistent support. Practical steps HR professionals can take: • Assess managers’ strengths on engagement and help managers understand the relationship between their own and their teams’ engagement levels. • Review recruitment, selection, development and reward processes for managers. Do they help to bring in or develop the kind of managers that the organization requires? • Ensure that leadership and management development programs address employee engagement capability. Periodically assess gaps at the organizational and individual manager levels and create development plans to close the gaps. • Create manager forums and communities where managers can safely discuss and share their achievements and challenges for raising employee engagement. • Encourage experienced and capable managers to serve as coaches to less experienced ones. • Celebrate the accomplishments of managers who achieve breakthrough or important results on people management. HR is better off showing results to get more commitment for the next steps. To start with… Employee engagement is the cornerstone of the HR strategy and a key indicator of HR programs’ effectiveness. While managers are a key link to the engagement process, it is the HR function that should have the expertise and capability to drive it forward. It is a responsibility that cannot be reneged and needs to be integrated into the daily HR practices, not just a one-off survey. No one HR practice or program is the key to employee engagement. It is only by spending valuable time and energy on building solid foundations, planning carefully and executing mindfully that HR can master the art and science that is employee engagement. Aon Hewitt Myth Busting: “Business leaders are responsible for driving employee engagement” 5 Contacts Elias Dib Associate Partner - Making Engagement Happen Talent Practice elias.dib@aonhewitt.com Khalid Youssef Senior Consultant Talent Practice khalid.youssef@aonhewitt.com About Aon Hewitt Aon Hewitt empowers organizations and individuals health solutions for greater choice, affordability and to secure a better future through innovative talent, wellness. Aon Hewitt is the global leader in human retirement and health solutions. We advise, design and resource solutions, with over 30,000 professionals in 90 execute a wide range of solutions that enable clients countries serving more than 20,000 clients worldwide. to cultivate talent to drive organizational and personal performance and growth, navigate retirement risk while providing new levels of financial security, and redefine Aon Hewitt For more information on Aon Hewitt, please visit http:// www.aon.com/middle-east Myth Busting: “Business leaders are responsible for driving employee engagement” 6 About Aon Aon plc (NYSE:AON) is the leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 66,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative and effective risk and people solutions and through industry-leading global resources and technical expertise. Aon has been named repeatedly as the world’s best broker, best insurance intermediary, reinsurance intermediary, captives manager and best employee benefits consulting firm by multiple industry sources. Visit www.aon.com for more information on Aon and www.aon.com/manchesterunited to learn about Aon’s global partnership and shirt sponsorship with Manchester United. © Aon plc 2014. All rights reserved. The information contained herein and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information and use sources we consider reliable, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. www.aon.com Risk. Reinsurance. 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