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Best Employers in Asia

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					Best Employers in
Asia 2005 - China

Overview and Findings
      May 2005
 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




Hewitt Associates                           1                Best Employers in Asia
Background to the
Best Employers in
   Asia Study
 An Instrument in the “War for Talent”…

 • Exploring:
           •        Talent management
           •        Employer branding
           •        Employee aspirations
           •        Key drivers of employee Engagement
 • Testing the ‘point–of–view’ 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


Hewitt Associates                           3              Best Employers in Asia
 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


  80%
  70%
  60%
  50%
  40%
  30%
  20%
  10%
   0%
             Leadership    Project       Client        IT and       Marketing        Sales        Specialist        General
                          Management   Management    e–business                                 technical skills technical skills
                                                        skills

                                         2003 Best      2003 Rest        2005 Best           2005 Rest


Hewitt Associates                                            4                                                Best Employers in Asia
 View from the Top

 • Top 3 priorities for CEOs at the Best for the year ahead:
      1. Maintaining a highly engaged and motivated workforce
      2. Building stronger relationships with customers
      3. Providing a vision for the organization’s future

 • Factors with the greatest impact on the organization’s ability to
   succeed:
      1. Employee motivation and engagement / Quality of
          Leadership
      3. Acquisition and retention of talent
      4. Talented management and management skills
      5. Organizational Culture
      6. Increased Competition / Corporate Branding

Hewitt Associates                   5                          Best Employers in Asia
 Best Employers - Study History

 •       Conducted across the               78 companies
         globe:                           24,312 employees
           • Australia/New
              Zealand
           • Canada
           • Europe
           • India                           China
           • Latin America
           • China
           • Hong Kong
           • Malaysia
           • Singapore
           • Thailand
 •       Participation solicited by
         invitations/press
         announcements

Hewitt Associates                     6              Best Employers in Asia
 Methodology

 • Each company responded to three data requests:


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




Hewitt Associates                7                        Best Employers in Asia
 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




Hewitt Associates                        8                          Best Employers in Asia
 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

Hewitt Associates                      9                     Best Employers in Asia
 The Best Employers in China 2005

 1. The Portman Ritz-Carlton, Shanghai
 2. Johnson & Johnson Medical (China) Ltd.
 3. ASIMCO Technologies Limited
 4. China Hotel, A Marriott Hotel Guangzhou
 5. Beijing Novartis Pharma Ltd.
 6. China Hewlett-Packard Co., Ltd.
 7. Federal Express – DTW Co., Ltd.
 8. TNT China (Holding) Co., Ltd.
 9. Guangdong Nanfang Lee Kum Kee Health Products
    Co., Ltd.
 10.Intel China Ltd./Intel Products (Shanghai) Ltd./Intel
    Products (Chengdu) Ltd./Intel China Research Center

Hewitt Associates           10                    Best Employers in Asia
 Study Highlights
Best Employers in
       Asia
  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
Hewitt Associates                 12                           Best Employers in Asia
Factors that Drive Engagement

                    People                               Work
                    • Senior Leadership                  • Intrinsic Motivation
                    • Manager                            • Influence
                    • Coworkers                          • Work Tasks
                                                         • Resources




           Compensation                                          Opportunities
           • Pay                          Engagement             • Career Opportunities
           • Benefits                                            • Recognition




                        Procedures                     Quality of Life
                                                       • Work/Life Balance
                        • Policies
                                                       • Physical Work Environment
                        • HR
                                                       • Safety


Hewitt Associates                            13                            Best Employers in Asia
The Best Employers have Highly Engaged
Employees

                                              Engagement in the Rest 50%

                                               40%                      60%
                         Lowest
                      Engagement
                      score of any
                                                      Indifference                  Engagement in
                    participant – 28%                    Zone                          the Best
                                                                                     Employers in
                             25%        Uncertainty                                   China – 75%
                                          Zone




                                                                     High Performance Zone   Highest
                                                                                             Engagement
                                                                                             score of any
                                                                                             participant –
                                                                                             99%
                0%                                                                           100%




Hewitt Associates                                               14                                   Best Employers in Asia
     Best Employers Have Highly Engaged
     Employees



                                            % Employees Who Agree and Strongly
                                                         Agree
                    PRC
                                            Best Employers           Rest

    It would take a lot to get me to
    leave this organization                     86%                 71%

    I would not hesitate to
    recommend this organization to              93%                 56%
    a friend seeking employment

    This organization inspires me
    to do my best work every day                90%                 55%




Hewitt Associates                      15                             Best Employers in Asia
  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.


Hewitt Associates                 16          Best Employers in Asia
   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




Hewitt Associates            17                   Best Employers in Asia
  Why its Worth Driving Engagement


                                              xx%
                                           Engagement
                                    40%

                                                            65%
   Average TSR = –3.4%

                     30%
                                          Indifferent
                              Serious        Zone                       xx% Engagement
                               Zone
                                                             High
                                           Average      Performance/
                                          TSR = 9.1%                     Average TSR
                                                        Best Employer    =24.2 %
                      Destructive                            Zone
                         Zone

                0%                                                         100%




Hewitt Associates                          18                             Best Employers in Asia
 Stronger Growth!

 • Across the Region Best Employers grow revenue
   faster
                         BEA 2005: Revenue growth

               20%
               18%         17.3%

               16%
               14%
                                                          The Best
               12%                             10.7%      The Rest
                                                                     Best
               10%
                                                                     Rest
                    8%
                    6%
                    4%
                    2%
                    0%
                                   2003-2004
                                   2003-2004
Hewitt Associates                   19                 Best Employers in Asia
 Increased Employee Productivity



                    BEA 2005: Growth in productivity by employees

    20%
                                                             The Best
                                                             The Rest
    15%
                               11.6%
                                                    8.7%                              B
    10%
                                                                                      R

       5%

       0%
                                        2003-2004
                                       2003-2004

Hewitt Associates                      20                    Best Employers in Asia
 Lower Recruitment Costs

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

                    BEA 2005: Average recruitment costs per employee
                                                   100%
          100%
           90%
           80%
           70%
                                                                       The Best
           60%                                                         The Rest
                                                                            Best
           50%                    45%
                                                                            Rest
           40%
           30%
           20%
           10%
             0%

                                  Average cost for 2004
Hewitt Associates                          21                      Best Employers in Asia
 Better Retention Rates

 • Turnover in early years of employment lower


                    Average Percentage of Employees Leaving

    30%

    25%

    20%

    15%
                                                                                       12%
                                                  9%
    10%
                    5%                                        4%
      5%

      0%
                    Best                          Rest        Best                     Rest

                           After the first year                    After the second year


Hewitt Associates                                        22                           Best Employers in Asia
How The Best Inspire
 Great Performance
    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


                                     Best Employers       Rest
    This organization’s policies
    create a positive work                70%             48%
    environment for me
    The work processes we have in
    place (e.g., priority setting,
    project management, work              61%             40%
    flow, etc.) allow me to be as
    productive as possible
    My work challenges me to use
    my knowledge and skills fully         77%             61%

Hewitt Associates                    24                          Best Employers in Asia
      … Manage Perceptions About Fairness of
      Rewards


                                          Best Employers   Rest
      I receive adequate recognition
      (beyond compensation) for my
                                                68%        47%
      contributions and
      accomplishments
      I am made to feel like a valued
                                                56%        37%
      member of this organization
      My performance has a
                                                62%        40%
      significant impact on my pay
      If this organization does well, I
      will appropriately share in its           64%        41%
      financial success



Hewitt Associates                         25                  Best Employers in Asia
 … 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 organization’s vision
    • feeling excited about that vision
    • deriving a sense of accomplishment from their work

                                        Best Employers              Rest

   Our senior leaders fill me with
   excitement for the future of this           81%                  61%
   organization
   Our senior leadership provides
                                               73%                  50%
   clear direction for the future
   I get a sense of accomplishment
   from my work                                74%                  56%

Hewitt Associates                       26                            Best Employers in Asia
 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.

                                          Best Employers               Rest
   I see strong evidence of effective
                                                 76%                   54%
   leadership from senior management
   Our senior leadership is expert at
                                                 81%                   61%
   running the business
   Our senior leaders are excellent
   role models of our organization’s             77%                   53%
   values
   Our senior leadership is open and
                                                 75%                   52%
   honest in communication
   Our senior leadership is
   appropriately visible and accessible          81%                   61%
   to employees
Hewitt Associates                         27                               Best Employers in Asia
 … 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.

                                          Best Employers   Rest

       I trust our senior leadership to
       appropriately balance
                                               72%         49%
       employee interests with those
       of the organization
       Senior leadership treats
       employees as this
                                               71%         46%
       organization’s most valued
       asset
       Senior leadership is worthy of
                                               75%         52%
       my trust

Hewitt Associates                         28                  Best Employers in Asia
 … And Generating Confidence in the
 Future

                                      % of Employees Who Agree and Strongly
                                                     Agree
                                     Best Employers                                 Rest
 It would take a lot to get me to
 leave this organization                     86%                                    71%

 I hardly ever think about leaving
 this organization to work                   62%                                    42%
 somewhere else
 My future career opportunities
 here look good                              63%                                    42%




                                          Hewitt Associates: Best Employers in Asia, 2005


Hewitt Associates                    29                                                Best Employers in Asia
 Success Drives Positive Perceptions About
 the Company


                               Best Employers   Rest


  This organization has an
  excellent reputation among          80%       65%
  customers
  This organization has an
  excellent reputation among          74%       50%
  potential employees
  This organization has an
  excellent reputation among          68%       48%
  the community
  This organization has an
  excellent reputation among          80%       60%
  shareholders

Hewitt Associates                30                    Best Employers in Asia
 Employee Impressions Say A Great Deal

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


 Characteristics              The Best   The Rest   % Difference
 Customer-oriented                76%      57%          19%
 Results-oriented                 75%      54%          21%

 Demonstrates concern for         73%      50%          23%
 society
 Team-oriented                    72%      51%          21%
 Innovation                       70%      51%          19%
 Employee-focused                 69%      42%          27%


Hewitt Associates            31                        Best Employers in Asia
 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.

Hewitt Associates             32                     Best Employers in Asia
 More on Best Employers in Asia

 • www.bestemployersasia.com




Hewitt Associates        33       Best Employers in Asia

				
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