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1 Employee Engagement Forum Belgium JUNE 6th, 2013 BRUSSELS Welcome

2 01 Introduction Nico Van Dam (Hay Group)

3 Agenda for today 15:30 Introduction Nico Van Dam Hay Group 15:45 Insights from 2013 Research Belgium Nathalie Sterckx Hay Group 16:20 Panel discussion Translating your employee engagement survey results into an action plan with impact Lucrèce Reybroeck Corporate HR Director, Euroports Patrick De Deken Site Manager Antwerp, Ineos Oxide Patrick Janssens Member of Flemish Parliament Moderator: Sonja Brouwers Hay Group 17:10 Reception & Networking 3

4 When engagement meets enablement, it translates into better business performance 54 percent reduction in voluntary staff turnover People are 50 percent more likely to outperform expectations 4.5x revenue growth versus companies in the bottom quartile on both measures Source: Based on linkage case studies using Hay Group s global normative database 4

5 Why does employee engagement matter? CEO Top Challenges in Human Capital 2 Operational Excellence 3 Innovation 4 Customer Relationships 5 Global Political / Economic Risk Source: Conference Board 2013 Top 5 strategies to meet Human Capital Challenges 1 Grow Talent Internally 2 Provide Employee Training & Development 3 Raise Employee Engagement 4 Improve Performance Management Process and Accountability 5 Retain Critical Talent 5

6 Trend 1 Engagement levels are dropping

7 What have we done to our employees? salary freezes & pay cuts... salary moderation... downsizing & company closures... cost cutting... more with less... 7

8 Engagement levels in Belgium are dropping... Belgium Engagement indicator (% employees willing to walk the extra mile) 2010* 60% 2011* 55% ** 53% Intention to stay > 5 years (% employees) 74% 65% 65% (*) Source: Hay Group Insight Employee Opinion Databases (**) Source: Hay Group Research Belgium (n=1393) 8

9 Trend 2 Coming up... Massive talent shortages around the world

10 Massive talent shortages around the world... One in five of all senior executives in the Fortune 500 is eligible for retirement now Source: Rothwell & Associates Engineers topped the list of job titles experiencing talent shortage Source: Manpower s 2011 Global Talent Shortage Survey As of Jan.1, the oldest of America s baby boom generation started turning 65 at a rate of 10,000 a day Source: NY Times, 2011 China s impending talent shortage? A As labour unbelievable shortage, as with may a population seem, this of is precisely 1.3 billion? the As situation unbelievable China as now it may confronts. seem, this is precisely the situation China now confronts. Source: Online Asia Times Two thirds of CEOs believe they re facing a limited supply of skilled candidates Source: PWC Annual CEO report

11 Trend 3 Coming up... Global talent exodus as economy picks up

12 Global talent exodus as economy picks up... Global employee turnover 24.0% 23.5% 23.0% 22.5% 22.0% 21.5% 21.0% 20.5% Forecast 2014 will see the sharpest increase in employee turnover % Total employees (right axis) Employee turnover rate (left axis) Source: Hay Group & OECD & CEBR analysis, April

13 Employee turnover rate Emerging economies to lead turnover spike Belgium to follow in 2015 Timing and magnitude of global turnover spikes, % 30% 25% 20% 15% 10% 5% Mexico India Brazil USA China Colombia Indonesia Australia Canada Peru Germany Russia UK Poland Belgium Spain Netherlands France Italy Year of sharpest turnover increase Mature economies Emerging economies Source: Hay Group & OECD & CEBR analysis, April

14 Employee turnover trends for Belgium 12% in will see a rise in turnover again, with the sharpest rise expected in 2015 as economic activity picks up (12%) Turnover in Belgium will further decline in 2013 to 11.1% Source: Hay Group & OECD & CEBR analysis, April

15 Call for action 15

16

17 Research Belgium Nathalie Sterckx (Hay Group)

18 Employee Effectiveness Model Clear & promising direction Confidence in leaders Respect & recognition Quality & customer focus Development opportunities Pay and benefits Drivers Engagement Commitment Discretionary effort Employee Effectiveness Financial performance Customer satisfaction Business Results Performance management Authority and empowerment Collaboration Work, structure & processes Resources Training Enablement Optimized roles Supportive environment Attraction and retention of talent Employee performance 18

19 View the results through multiple lenses Employee effectiveness profile 72% Dimensions of engagement and enablement Comparison to benchmarks Drivers of engagement / enablement / retention Priorities and action planning 19

20 Enablement Employee Effectiveness Profile Belgium HIGH DETACHED EFFECTIVE 14% 32% INEFFECTIVE FRUSTRATED 39% 15% LOW Engagement HIGH Frustrated employees will break through break down, or break free 20

21 Engagement Which dimensions score the highest? Quality and customer focus Clear and promising direction Resources Respect and recognition Confidence in leaders Authority and empowerment Performance management Collaboration Work, structure and process 78% 72% 67% 67% Benchmark Belgium versus Europe Development opportunities Training Pay and benefits 52% 47% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% % Positive

22 Worldwide engagement 22

23 Enablement Which dimensions score the highest? Quality and customer focus Clear and promising direction Resources Respect and recognition Confidence in leaders Authority and empowerment Performance management Collaboration Work, structure and process Development opportunities Training Pay and benefits 68% 64% 64% 55% 55% 51% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% % Positive Benchmark Belgium versus Europe

24 Employee effectiveness Which dimensions score the highest? Quality and customer focus Clear and promising direction Resources Respect and recognition Confidence in leaders Authority and empowerment Performance management Collaboration Work, structure and process Development opportunities Training Pay and benefits 78% 72% 68% 67% 67% 64% 64% 55% 55% 52% 51% 47% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% % Positive Benchmark Belgium versus Europe

25 What really drives engagement? Clear & promising direction Confidence in leaders Respect & recognition Quality & customer focus Development opportunities Pay and benefits 1. Respect and recognition 2. Confidence in leaders 3. Clear and promising direction 4. Development opportunities 5. Quality & customer focus 6. Pay and benefits R²

26 What really drives enablement? Performance management Authority and empowerment Collaboration Work, structure & processes Resources Training 1. Authority and empowerment 2. Work, structure & processes 3. Collaboration 4. Performance management 5. Resources 6. Training R²

27 What makes people stay? Trust in company and leadership Environment for success What makes people stay? Room for growth Authority and influence A fair exchange 27

28 Retention There is some work to do - Belgium Trust in company and leadership Environment for success What makes people stay? Room for growth 65% Belief firm is effectively managed and well run Authority and influence A fair exchange 76% Enough authority to effectively perform their roles 37% 49% 57% Concern over fairness compensation Concern over direction and goals Unsure about achieving career objectives 28

29 Summary: Key drivers of Engagement - Enablement - Retention Engagement Enablement Retention Respect & recognition Authority & empowerment Room for growth Confidence in leaders Work, structure & processes Authority & influence Clear and promising direction Collaboration Perceived fairness of pay 29

30

31 03 Panel discussion Moderator: Sonja Brouwers (Hay Group)

32 Once questionnaires are sent in. Create ownership amongst line managers Set priorities and come up with a clear plan Keep talking with your employees 32

33 Lucrèce Reybroeck Corporate HR Director - Euroports Patrick De Deken Site Manager Antwerp Ineos Oxide Patrick Janssens Member of Flemish Parliament

34

35 04 Conclusion Nico Van Dam (Hay Group)

36 Employee Engagement Forum Thank you

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