Go Global or Localise?

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1 Go Global or Localise? How Leading Organisations are Making People Programme Decisions 27 November 2013 Aon Hewitt, Performance, Reward & Talent Risk. Reinsurance. Human Resources. Empower Results

2 Agenda 1. Globalisation Global People Trends and the Impact on Local HR 2. Best Employers Case Studies Driving employee engagement Developing a compelling employer brand Building effective leadership Establishing a high performance culture 3. A Globalisation Success Story: Hilti Localization, Globalization.Glocalization 4. Questions Proprietary & Confidential November

3 Globalisation Global People Trends and the Impact on Local HR

4 Expectations Management Knowing & meeting employee s preferences now Proprietary & Confidential November

5 We all have different preferences do your employers know? APAC Key Engagement Drivers Expectations Management Baby Boomers Gen X Gen Y Gen Z 1. Career Opportunities 1. Career Opportunities 1. Career Opportunities 1. Benefits 2. Innovation 2. Managing Performance 2. Pay 2. Career Opportunities 3. Senior Leadership 3. Recognition 3. Managing Performance 3. Organization Reputation 9. Benefits 6. Pay 4. Benefits 4. Pay 10. Pay 8. Benefits 7. Organization Reputation 8. Managing Performance Data Sources: Aon Hewitt 2013 Best Employers Study, Hong Kong Proprietary & Confidential November

6 Expectations Management Knowing & meeting employee s preferences now The Impact for HR Employees expect companies to know them and treat them as an individual just like their customers This requires a focus on mass customization of rewards, career and succession management and learning programs to drive increased engagement based on stage of life, specific needs, lifestyle, etc Proprietary & Confidential November

7 Employee engagement Expectations Management Provides individual engagement tracking, ongoing feedback and engagement advice. Drives real-time, event-based feedback, and engagement. Proprietary & Confidential November

8 The Level Playing Field Employer-employee information equality Proprietary & Confidential November

9 Equal data access for employers and employees Employers know more about you The Level Playing Field and You know more about employers Social networking, data mining, and surveys using online personal data submissions. More informed employees have access to market data on compensation, company practices and work environments Proprietary & Confidential November

10 The Level Playing Field Employer-employee information equality The Impact for HR Unclear and inconsistent delivery of an employee value proposition will be exposed and shared Proprietary & Confidential November

11 Demographic & Globile Talent Shift Out there and searching for opportunities Proprietary & Confidential November

12 The Demographic & Globile Talent Shift the pull and the push to Asia Demographic & Globile Talent With stagnant population growth, China s current competitive advantage in laborintensive industries will decrease and employment costs are likely to rise fasten than productivity increases Magnetic Appeal: Attracting Talent in China, Aon Hewitt Sources: Economist Intelligence Unit; E&Y employee trends report Proprietary & Confidential November

13 Demographic & Globile Talent Shift Out there and searching for opportunities The Impact for HR Employees and Businesses will continue to look to Asia for career opportunities - and revenue growth Sourcing and Developing a robust pipeline of talent, that supports the growth, will continue to be THE critical enabler Proprietary & Confidential November

14 Agility & Collaboration The Differentiators Proprietary & Confidential November

15 Agility & Collaboration the differentiators Agility & Collaboration When people ask me, What s going to happen in the next five years?, I throw up my hands and say I have no idea and neither do you. Peter Tortorici, CEO, GroupM Entertainment Global -- PwC 2013 Global CEO report [CEOs] are creating more open and collaborative cultures encouraging employees to connect, learn from each other and thrive in a world of rapid change. --IBM 2012 Global CEO Report AGILITY Capabilities Rewards Structures Work Environments Workforce Policies Cultures COLLABORATION Proprietary & Confidential November

16 Agility & Collaboration The Differentiators The Impact for HR Business leaders will expect the organization and people to have the ability to consistently perform and quickly execute the new business strategy whatever it is! Proprietary & Confidential November

17 Four global employment trends and the implications for Local HR Expectations Management Knowing & meeting employee s preferences now The Level Playing Field Employer-employee information equality Demoraphic & Globile Shift Out there and searching for opportunities Agility & Collaboration The Differentiators Proprietary & Confidential November

18 Best Employers Findings Proprietary & Confidential November

19 Best Employers in Asia Pacific Hewitt first began the Best Employers study in Asia Pacific in 2001 to: provide insights into how to create real competitive advantage through people explore what makes a workplace of choice identify the Best Employers in the region 12 years of research Proprietary & Confidential November

20 Does being a Best Employer make a difference? Our research supports the striking evidence that a committed and productive workforce delivers stronger business results. Best Employers attain 40% higher growth in profit Best Employers have 25% lower employee turnover levels and 40% more job openings filled internally Proprietary & Confidential November Source: Aon Hewitt Best Employers 2.0 Asia 2013 Study

21 What constitutes a Best Employer? Four measurable factors contribute to whether an organization is a Best Employer. High Employee Engagement Compelling Employer Brand Effective Leadership High Performance Culture Best Employer Attributes Proprietary & Confidential November

22 Effective Leadership High Performance Culture High Employee Engagement Compelling Employer Brand The Gap between Rhetoric and Reality 61% of CEOs in Asia have identified People Issues as their key business challenge today, however still there is a gap to close with employee expectations. Career Opportunities is the top driver of engagement across all generations. 78% of organizations say they have a clearly defined employer brand. But only 50% of employees think they have good career opportunities at their organization. But only 18% have alignment between the CEO and HR definition of their employer brand Leaders say our employees are our greatest asset. But only 60% of employees believe their senior leaders treat them as their organization s most valued asset. 78% of CEOs say people managers have the tools and resources to manage But only 56% of people managers feel they are fully productive Proprietary & Confidential November Source: Aon Hewitt Best Employers 2.0 Asia 2013 (excludes India)

23 Learnings from Best Employers Going Global We see the following critical success factors to going global. Best Employer Attributes High Employee Engagement Tailor engagement programs for employee segments (cultural, national and demographic groups) Compelling Employer Brand Effective Leadership High Performance Culture Proprietary & Confidential November

24 Learnings from Best Employers Going Global We see the following critical success factors to going global. Best Employer Attributes High Employee Engagement Compelling Employer Brand Tailor engagement programs for employee segments (cultural, national and demographic groups) Employee value proposition needs to be relevant, compelling and may need to be socialised Effective Leadership High Performance Culture Proprietary & Confidential November

25 Learnings from Best Employers Going Global We see the following critical success factors to going global. Best Employer Attributes High Employee Engagement Compelling Employer Brand Effective Leadership Tailor engagement programs for employee segments (cultural, national and demographic groups) Employee value proposition needs to be relevant, compelling and may need to be socialised Ensure leadership development is relevant across the group and reflective of organization s own culture High Performance Culture Proprietary & Confidential November

26 Learnings from Best Employers Going Global We see the following critical success factors to going global. Best Employer Attributes High Employee Engagement Compelling Employer Brand Effective Leadership High Performance Culture Tailor engagement programs for employee segments (cultural, national and demographic groups) Employee value proposition needs to be relevant, compelling and may need to be socialised Ensure leadership development is relevant across the group and reflective of organization s own culture Retain the best organisational cultural traits from country of origin, true to the company s history Proprietary & Confidential November

27 Find out more If you are interested in hearing more about employee engagement in Asia Pacific or in joining Best Employers Asia 2015, please contact us Trends in Asia Pacific Employee Engagement Project Manager: Belin Tai Upcoming Webinar: 3 December, 1:30pm Website: Proprietary & Confidential November

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