Best Employers in Asia 2005 China

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Best Employers in Asia 2005 - China

• Overview and Findings
• May 2005

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Hewitt Associates

• Global HR consulting firm
• First and largest WOFE consulting business in
  China
• 10 years of experience
• Broad range of services
• Employee Retention Talent Management
• Leadership Management Development
• Corporate Restructuring Change
• Compensation Benefits Measurement
• HR Outsourcing
• E-HR Solutions

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Background to the Best Employers in Asia Study
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An Instrument in the War for Talent

• Exploring
• Talent management
• Employer branding
• Employee aspirations
• Key drivers of employee Engagement
• Testing the pointofview that
• Best Employers Best People Best Results
• Identifying the key issues facing CEOs across the
  region today and their impact on people
  management
• Furthering understanding about how organizations
  align people and business strategies

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The Talent Shortage Remains!

• Percent of organizations experiencing a talent
  shortage
• 2003 70 of Best 81 of the Rest
• 2005 70 of the Best 92 of the Rest

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View from the Top

• Top 3 priorities for CEOs at the Best for the
  year ahead
• Maintaining a highly engaged and motivated
  workforce
• Building stronger relationships with customers
• Providing a vision for the organizations future
• Factors with the greatest impact on the
  organizations ability to succeed
• Employee motivation and engagement / Quality of
  Leadership
• 3. Acquisition and retention of talent
• 4. Talented management and management skills
• 5. Organizational Culture
• Increased Competition / Corporate Branding

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Best Employers - Study History
78 companies 24,312 employees

• Conducted across the globe
• Australia/New Zealand
• Canada
• Europe
• India
• Latin America
• China
• Hong Kong
• Malaysia
• Singapore
• Thailand
• Participation solicited by invitations/press
  announcements

China
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Methodology

• Each company responded to three data requests

A CEO questionnaire
A People Practices Inventory (PPI) completed by
HR
An Employee Opinion Survey (EOS) exploring the
level of Engagement among employees
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The Judging Process

• Independent judging panel set Best criteria
• academic
• business management
• human resources
• Blind review of finalist companies
• Quantitative and qualitative data from the three
  study tools.
• Standardized Engagement scores and alignment
  scores
• Random on-site audits to validate company
  responses
• Local Best Employers contenders for the regional
  list

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What Makes a Best Employer?

• Three characteristics demonstrated across all
  markets

Consistently inspire great performance from their
people
Go out of their way to ensure employees feel
valued
Manage their business in ways that build
long-term success and sustainability
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The Best Employers in China 2005

• The Portman Ritz-Carlton, Shanghai
• Johnson Johnson Medical (China) Ltd.
• ASIMCO Technologies Limited
• China Hotel, A Marriott Hotel Guangzhou
• Beijing Novartis Pharma Ltd.
• China Hewlett-Packard Co., Ltd.
• Federal Express DTW Co., Ltd.
• TNT China (Holding) Co., Ltd.
• Guangdong Nanfang Lee Kum Kee Health Products
  Co., Ltd.
• Intel China Ltd./Intel Products (Shanghai)
  Ltd./Intel Products (Chengdu) Ltd./Intel China
  Research Center

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Study HighlightsBest Employers in Asia
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What is Engagement?
For 25 years you had my hands you could have
had my head and heart for nothing

• The state in which individuals are emotionally
  and intellectually committed to the organisation
• The extent to which an employer has captured the
  hearts minds of its people
• Beyond satisfaction it measures what it takes to
  make the company succeed
• Engaged employees want to and actually do strive
  to improve business results
• A tough measure. Engaged people
  enthusiastically and passionately strive to
  produce great results

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Factors that Drive Engagement
Opportunities
Engagement

• Career Opportunities
• Recognition

Quality of Life

• Work/Life Balance
• Physical Work Environment
• Safety

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The Best Employers have Highly Engaged Employees
Engagement in the Rest 50
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Best Employers Have Highly Engaged Employees
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Most Common Drivers of Engagement in China

• PAY Employee perceptions of whether or not they
  are paid fairly for their contributions
• Refers to both fixed and variable pay
• Competitiveness and perceived equity
• Pay-related communication
• PROCESSES The degree to which work processes
  (e.g., priority setting, project management, work
  flow, etc.) help to create a positive environment
  and allow employees to be as productive as
  possible.

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Most Common Drivers of Engagement in China

• CAREER OPPORTUNITIES Employee perceptions of
  their future at the company
• Processes that assist employees identify
  development needs
• Opportunities to develop through increased
  responsibilities and challenges
• Amount of training

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Why its Worth Driving Engagement
xx Engagement
40
65
Average TSR 3.4
Indifferent Zone
30
Serious Zone
xx Engagement
High Performance/Best Employer Zone
Average TSR 9.1
Average TSR 24.2
DestructiveZone
100
0
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Stronger Growth!

• Across the Region Best Employers grow revenue
  faster

2003-2004
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Increased Employee Productivity
2003-2004
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Lower Recruitment Costs

• Best Employers
• Receive more unsolicited job applications
• Have more employee referrals for job candidates
• Need to advertise less for open jobs

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Better Retention Rates

• Turnover in early years of employment lower

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How The Best Inspire Great Performance
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Get the Basics Right
Best Employers are more likely to have in place
an organizational structure, policies and
procedures, and tools and resources to enhance
employee productivity
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Manage Perceptions About Fairness of Rewards
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And Provide Meaning!

• When people talk of inspiration and voluntarily
  doing more (as they do in the Best Employers),
  they must derive a sense of meaning and belonging
  from their work
• knowing and buying into an organizations
  vision
• feeling excited about that vision
• deriving a sense of accomplishment from their
  work

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This is all about Leadership

• Leaders are the key to inspiring a great
  performance
• How leaders behave
• How beliefs shape actions
• How well they create a sense of passion and pride
  among their people.

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Credible Leadership!

• Leaders of Best Employers demonstrate
  credibility.
• Comes from a sincere belief among the leaders
  that their people are critical to the success of
  the organization.

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And Generating Confidence in the Future
Hewitt Associates Best Employers in Asia, 2005
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Success Drives Positive Perceptions About the
Company
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Employee Impressions Say A Great Deal

• Employee perceptions indicate stronger belief in
  winning organizational characteristics at The
  Best.

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Listen to the Best Employers With These Thoughts
in Mind

• Creating and sustaining the culture that
  generates these perceptions takes effort
• So, too, does becoming a Best Employer
• The journey starts with leadership, and
  specifically, with leaders who put people top of
  mind
• It involves defining the type of culture you want
  to build
• It takes a planful approach to boosting employee
  engagement
• For those who make the effort, the results are
  clearly worthwhile.

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More on Best Employers in Asia

• www.bestemployersasia.com