CORPORATE LEADERSHIP COUNCIL CLC HUMAN RESOURCES RESOURCES Senior Analyst Sonia Kundal Consultant Brett Agypt Directors Raymond Liu Sallie Van Tassel Senior Directors Adam Brinegar Brad Adams Managing Director Brian Kropp Mark Van Buren
NOTE TO MEMBERS This project was researched and written to fulfill the research request of several members of The Corporate Executive Board Company and as a result may not satisfy the information needs of all member companies. The Corporate Executive Board Company encourages members who have additional questions about this topic to contact the Member Support Center at EXBD_Support_CLC@executiveboard.com for further discussion. The views expressed herein by third-party sources do not necessarily reflect the policies of the organizations they represent. PROFESSIONAL SERVICES NOTE CLC Human Resources has worked to ensure the accuracy of the information it provides to its members. This project relies upon data obtained from many sources, however, and CLC Human Resources cannot guarantee the accuracy of the information or its analysis in all cases. Furthermore, CLC Human Resources is not engaged in rendering legal, accounting, or other professional services. Its projects should not be construed as professional advice on any particular set of facts or circumstances. Members requiring such services are advised to consult an appropriate professional. Neither The Corporate Executive Board Company nor its programs are responsible for any claims or losses that may arise from any errors or omissions in their reports, whether caused by The Corporate Executive Board Company or its sources.
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TABLE OF CONTENTS
This Thi quarterly workforce benchmarking report provides t di d t on th t l kf b h ki t id trending data three key outcomes of the employment lif k t f th l t lifecycle: l attraction, engagement, and retention. Use this data to inform your organizations EVP strategy for both attracting candidates and addressing weaknesses in EVP delivery to employees and to benchmark the engagement level of your key talent segments. This report uses global data collected through CLC Human Resources Quarterly Global Labor Market Survey, which polls approximately 18,000 employees in 28 countries during the first month of every quarter. CLC Human Resources provides separate reports modeled after this one that provide more i d th segmented d t on major regions and countries. t d l d ft thi th t id in-depth, t d data j i d ti
EVP Drivers of Attraction EVP Framework Defined............Page 5 Trends in EVP Drivers of Attraction.......Page 6 Top T EVP Drivers of Att ti b R i Di f Attraction by Region......Page 8 P
EVP Drivers of Attrition Trends in EVP Drivers of Attrition.......Page 10 Top EVP Drivers of Attrition by Region......Page 12 Change in Pay Reported by Departed Employees..........Page 14
Global Employee Engagement Levels Engagement Model Defined.......Page 16 Global Engagement Trends....Page 17 Engagement Trends by FunctionPage 19 Engagement Trends by Industry.Page 21 Engagement Trends by Region..Page 23
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The EVP is the set of attributes that the labor market and employees perceive as the value they gain through employment in the organization. The EVP provides a holistic, actionable framework for managing talent outcomes across the employment lifecycle.
Relevant Resource: Visit the EVP Topic Center for more background information on individual EVP attributes and tools for designing an EVP.
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The top EVP drivers of attraction are: 1. 2. 3. 4. 5. Compensation Respect Stability Work-Life Balance Location.
The largest changes quarterover-quarter occurred with compensation and work-life balance, which decreased in importance b 3% and 2% i t by d 2%, respectively.
Relevant Resource: Learn more about using the Recruiting Effectiveness Dashboard (RED) which is (RED), a survey and benchmarking tool that helps organizations measure quality of hire and other key talent attraction metrics. RED is provided through CLC Recruiting, a sister program of CLC HR.
10.Vacation 11.HealthBenefits 12.CollegialWorkEnvironment 13.Product/ServiceQuality / 14.CoworkerQuality 15.RetirementBenefits 16.ManagerQuality 17.Meritocracy 18.JobInterestAlignment 19.Camaraderie
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Source:QuarterlyGlobalLaborMarketSurvey,CLCHumanResources.
The importance of compensation the highest of all EVP attributes globally (though not in every country) peaked at 44% during 2011 but declined slightly to 41% in the first q quarter of 2012.
The top drivers of attraction were relatively unchanged over the past year. The importance of job location saw the largest change, a th l t h decrease of 3%.
40%
41%
1. Compensation
35% 33%
19% 18%
Relevant Resource: Use the EVP Design Center, CLCs online benchmarking tool, to segment the attraction data for key talent groups by geography, industry, function, and level.
15%
2011 Q1
2011 Q2
2011 Q3
2011 Q4
2012 Q1
Source:QuarterlyGlobalLaborMarketSurvey,CLCHumanResources.
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Global
1 Compensation
Brazil
Compensation (51%) Stability(35%)
Canada
Respect(45%)
China
Compensation (62%) Development Opportunity (38%) FutureCareer Future Career Opportunity (33%) Stability(29%) HealthBenefits (29%) Respect(27%) Retirement Benefits(18%) ( ) WorkLife Balance(18%) Industry Desirability (16%) Ethicsand Integrity(16%)
Germany
India
Southeast Asia*
United Kingdom
WorkLife Balance(44%) Location(42%)
United States
Stability(44%) Compensation (43%) HealthBenefits (40%) Respect(38%) WorkLife Balance(35%) Location(34%) Ethicsand Integrity(26%) g y( ) FutureCareer Opportunity (24%) Retirement Benefits(20%) Vacation(17%)
Compensation FutureCareer WorkLife (57%) Opportunity(31%) Balance(41%) CollegialWork WorkLifeBalance Compensation Environment (30%) (40%) (36%) Organization Organization FutureCareer Future Career Location(34%) GrowthRate Opportunity (29%) (38%) Respect(31%) Respect(29%) Stability(31%)
Respect
Stability(42%) WorkLife Balance(38%) HealthBenefits (38%) Compensation (37%) Location(33%) FutureCareer Opportunity (28%) Vacation(20%)
Stability WorkLife Balance Location FutureCareer Opportunity Development pp y Opportunity Recognition Ethicsand Integrity
Location(40%)
Respect(34%) Recognition (32%) Ethicsand Integrity(30%) FutureCareer Opportunity (28%) WorkLife Balance(20%) ( ) CollegialWork Environment (20%)
Respect(39%)
Stability(39%) Compensation (26%) Ethicsand Integrity(24%) FutureCareer Opportunity (23%) Recognition (19%)
Stability(37%) FutureCareer Opportunity Opportunity (29%) Recognition (21%) Development Opportunity (19%) Compensation (18%) People Management (17%) Vacation(15%)
Stability(26%) Stability (26%) Recognition (25%) Social Responsibility (22%) Camaraderie (22%)
Development HealthBenefits Opportunity(22%) (23%) Development Opportunity (22%) People Management (21%)
Product/Service Product/Service Retirement Quality(18%) Quality(19%) Benefits(18%) People Management (17%) Development Opportunity (18%) Ethicsand Integrity(17%)
10 Vacation
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*IncludesIndonesia,Malaysia,thePhilippines,andSingapore.
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Employees indicated the highest dissatisfaction with the following EVP drivers as the cause for them to leave for another job: 1. Future Career pp y Opportunity 2. Compensation 3. People Management 4. Manager Quality 5. Recognition.
Relevant Resource: Learn more about using the Departure View Exit Survey, included in the CLC membership, at your organization.
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Source:DepartureViewExitSurvey,CLCHumanResources.
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The impact on attrition of compensation and work life work-life balance has increased the most (each by +8%) since late 2010.
, At 44%, future career opportunity remains the most frequently reported cause of departure.
39% 37% 35% 31% 30% 29% 26% 2. Compensation 3. People Management 4. Manager Quality 5. Recognition 6. Respect 7. Work-Life Balance 8. Development Opportunities 16% 9. 9 Location 10. Organization Growth Rate
34%
29% 28%
21%
Relevant Resource: Use the EVP Design Center, CLCs online benchmarking tool, to segment the attrition data for key talent groups by geography, industry, function, and level.
13% 10%
2010 Q4
2011 Q1
2011 Q2
2011 Q3
2011 Q4
2012 Q1
Source:DepartureViewExitSurvey,CLCHumanResources.
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Australia&New Zealand
Canada
China
Compensation (60%)
India
Compensation (52%)
SoutheastAsia*
UK
US
Compensation (40%)
Compensation
People People Development People Development ManagerQuality Recognition(46%) Management(40%) Management(39%) Opportunity(53%) Management(45%) Opportunity(45%) (36%) Development Opportunity(35%) Recognition(32%) Respect(34%) Compensation (34%) FutureCareer Organization Development Opportunity(40%) GrowthRate(45%) Opportunity(42%) WorkLifeBalance FutureCareer Recognition(33%) (32%) Opportunity(44%) Respect(26%) Respect (26%) ManagerQuality (25%) Compensation (25%) Compensation (37%) People Management (37%) Recognition(35%) Recognition (35%) People People Management (36%) Respect(35%) FutureCareer Opportunity(33%)
PeopleManagement
ManagerQuality
Recognition
WorkLifeBalance People Recognition(34%) Recognition(31%) Recognition (34%) Recognition (31%) (28%) Management(32%) ManagerQuality WorkLifeBalance (24%) (33%) Respect(24%) Compensation (22%) Stability(18%) ManagerQuality (29%) Development Opportunity(25%) Vacation(19%) Stability(22%) ManagerQuality (30%) WorkLifeBalance (27%)
Respect
ManagerQuality Recognition(26%) (29%) WorkLifeBalance WorkLifeBalance (26%) (26%) Respect(23%) Empowerment (17%) Stability(17%) Development Opportunity(20%) CoworkerQuality (17%) Stability(17%)
WorkLifeBalance
Respect(21%)
DevelopmentOpportunity
ManagerQuality Development WorkLifeBalance (20%) Opportunity(24%) (22%) JobInterests Alignment(19%) Respect(18%) JobInterests J bI t t Alignment(18%) JobInterests Alignment(19%) CoworkerQuality C k Q lit (18%)
Location
10 OrganizationGrowthRate
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*IncludesIndonesia,Malaysia,thePhilippines,andSingapore.
Employers should invest in promoting and delivering the core EVP attributes that matter most to employees.
Seven of the top 10 drivers of attraction are also drivers of attrition; employees are leaving organizations for (primarily) the same reasons that attracted them to join. Aside from the seven core EVP attribute, employees are attracted by stability, ethics and integrity, and vacation time, but they leave their jobs due to dissatisfaction with manager quality, people quality management, and organizational growth rate.
Core EVP Attributes Compensation Stability Ethics and Integrity Vacation Respect Work-Life Balance Location Future Career Opportunity p pp y Development Opportunity Recognition People Management Manager Q lit Quality M Organizational Growth Rate
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In Q1 2012, departed employees expected to receive 14.8% higher compensation with their new employer, down from 16.8% in the previous quarter.
Relevant Resource: Learn more about how CLC Compensation can help improve your organizations pay design and management. CLC Compensation is a sister program of CLC HR.
2% 2%
3%
4% 4% 5% 2% 1% 2%
15-24% Decrease
5-14% Decrease
5-14% Increase
15-24% Increase
Source:DepartureViewExitSurvey,CLCHumanResources.
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CLCs employee engagement model links two key talent outcomes discretionary effort and intent to stay to organizational performance. The engagement metrics in this section of the report are based on the percentage of employees who display high or very high levels of y discretionary effort and intent to stay.
Discretionary Effort Employee willingness to go above and beyond the call of duty, such as helping others with heavy workloads, volunteering for additional duties, and looking for ways to perform the job more effectively. Organizational g Performance Intent to Stay Employee desire to stay with the organization, based on whether he/she intends to look for a new job within a year whether he/she year, frequently thinks of quitting, whether he/she is actively looking for a job, or has begun to take tangible steps, like placing phone calls or sending out rsums.
Employee Engagement The extent to which employees commit both commitboth rationally and emotionallyto something or someone in their organization, how hard they work, and how long they stay as a result of that commitment.
Relevant Resource: Visit the Engagement Topic Center for guidance on g g g measuring and managing employee engagement at your organization.
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In Q1 2012, discretionary effort levels increased by 0.9% quarter-over-quarter, setting another four-year high.
O year-over-year bas s, On a yea o e yea basis, almost 7% more employees globally are now reporting high levels of discretionary effort.
19.9% 18.3% 18 3% 17.8% 15% 17.3% 12.8% 12.0% 12.1% 13.4% 12.8% 13.1% 13.1% 14.8% 14.2% 17.9% 19.0%
0% 2H Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 1H 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 Quarter-over-Quarter Change 0.9%
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After rising for five consecutive quarters intent quarters, to stay levels dipped slightly by 0.5% in the first quarter of 2012. Also in Q1, for the first time since the downturn the ranks downturn, of passive candidates (i.e., employees who arent looking for a new job at all) shrank, and those who are actively looking increased to make up 27% of the global workforce. Download CLC Recruitings Quarterly Global Labor Market Briefing for more data. CLC Recruiting membership is required.
0% 1H 2H Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012
Quarter-over-Quarter Change
- 0.5%
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Function
Q1 2010
Q2 2010
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
QuarteroverQuarter Change 1.1% 1 1% 2.4% 0.6% 1.5% 0.1% 1.2% 1.5% -0.2% 0.1%
Customer Service and Call Center Engineering and Research and Development Finance and Accounting Human Resources Information Technology Manufacturing g Operations, Procurement, and Supply Chain Retail Sales and Marketing
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Function
Q1 2010
Q2 2010
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
QuarteroverQuarter Change 0.5% 0 5% 3.5% 0.7% -2.8% -0.9% -0.3% -0.8% -1.9% 0.1%
Customer Service and Call Center Engineering and Research and Development Finance and Accounting Human Resources Information Technology Manufacturing g Operations, Procurement, and Supply Chain Retail Sales and Marketing
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Industry Consumer Goods Manufacturing Durable Goods Manufacturing Energy and Utilities Financial Services and Insurance Government/NonProfit/Education Healthcare and Pharmaceuticals Professional Services Retail/Restaurant Technology and Telecommunication T l i ti
Q2 2010
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Quarterover-Quarter Change 3.6% 1.0% -1.0% 0.2% 0 2% 0.9% 1.7% -0.6% 1.1% -1.2% 1.2%
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Industry Consumer Goods Manufacturing Durable Goods Manufacturing Energy and Utilities Financial Services and Insurance Government/NonProfit/Education Healthcare and Pharmaceuticals Professional Services Retail/Restaurant Technology and Telecommunication
Q2 2010
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Quarterover-Quarter Change 1.7% -0.3% -3.5% 0.0% 0 0% -0.4% 1.6% -1.5% -1.1% -2.9%
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Employees in North America reported another quarterly increase in what was already the highest level of discretionary effort of all major regions. Intent to stay remained relatively flat.
Both discretionary effort and intent to stay improved by about 0.5% in Asia during Q1 2012.
Australia and New Zealand reported the largest quarterly increase in discretionary effort of 1.8% but also the largest decrease in intent to stay of 1.7%.
Note: North America includes Canada, Mexico, and the U.S.; Europe includes Belgium, Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Spain, Sweden, Switzerland, and the UK; Asia includes China, India, Indonesia, Japan, Malaysia, the Philippines, Singapore, and South Korea.
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Region
Q1 2010
Q2 2010
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
11.8% 19.9%
Note: North America includes Canada, Mexico, and the U.S.; Europe includes Belgium, Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Spain, Sweden, Switzerland, and the UK; Asia includes China India Indonesia Japan Malaysia the Philippines Singapore and South Korea China, India, Indonesia, Japan, Malaysia, Philippines, Singapore, Korea.
*Data is unavailable for some quarters due to low sample size.
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Q1 2010
Q2 2010
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
31.5% 31.9%
Note: North America includes Canada, Mexico, and the U.S.; Europe includes Belgium, Denmark, France, Germany, Italy, the Netherlands, Norway, Spain, Sweden, Switzerland, and the UK; Asia includes China, India, Japan, Malaysia, the Philippines, Singapore, and South Korea.
*Data is unavailable for some quarters due to low sample size.
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APPENDIX
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Departure View is a comprehensive survey, benchmarking, and analytics resource that helps organizations survey their departing employees and receive detailed and objective feedback on employees reasons for leaving. Participation is included in the CLC Human Resources membership. More than 100 member organizations use Departure View and contribute to the global benchmark. Visit the CLC HR website to learn more about Departure View or contact us directly at clcsurveyrequests@executiveb oard.com.
"Departure View was the right solution. CLC's reputation and strong member base, as well as the simplicity of the Departure View launch process and robust reporting capabilities, made it an easy choice f us." h i for " -- L. Russen HR Manager Sony Electronics
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The Recruiting Effectiveness Dashboard (RED) is a survey solution that collects information on quality of hire and recruiting effectiveness from new hires, hiring managers, and internal transfers. Participation is included in the CLC Recruiting membership. More than 100 CLC Recruiting member organizations use RED and the global benchmarks include more than 200,000 completed surveys. Visit the CLC Recruiting website to learn more about RED or contact us directly at rrweb@executiveboard.com.
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Originally developed in 2006, 2006 CLCs EVP model consists of 38 attributes that drive attraction and retention.
A master list of more than 200 employment characteristics was compiled and evaluated for similarity, distinctiveness, universality, and overall ratability, leading to the consolidated list of 38 attributes. tt ib t This final list of 38 attributes can be grouped into five categories: Rewards, Opportunity, Organization, Work, and People.
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Originally developed in 2006, 2006 CLCs EVP model consists of 38 attributes that drive attraction and retention.
A master list of more than 200 employment characteristics was compiled and evaluated for similarity, distinctiveness, universality, and overall ratability, leading to the consolidated list of 38 attributes. tt ib t This final list of 38 attributes can be grouped into five categories: Rewards, Opportunity, Organization, Work, and People.
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The EVP and engagement data in this report comes from CLC HRs Quarterly Global Labor Market Survey, which polls approximately 18,000 employees in 28 countries during the first y quarter month of every q
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