Employee Engagement Report 2008

The Employee Engagement Equation In India
Presented By BlessingWhite & HR Anexi
Copyright BlessingWhite 2008
HR Anexi Confidential
1.
1. 2. 3.
Table of contents
Table of contents ........................................................................................... 2 Introduction .................................................................................................... 3 Research overview ........................................................................................ 3 3.1. Methodology ........................................................................................... 3 4. BlessingWhites definition of engagement and the X engagement model. ... 5 4.2. What Is Engagement Anyway? Satisfaction and contribution .............. 5 4.3. So What? The Business Case for an Engaged Workforce ..................... 8 4.3.1. Positive Correlations........................................................................ 8 4.3.2. The Chicken-Egg Question ............................................................. 8 4.4. Engagement vs. retention ....................................................................... 9 5. Distribution of Indian responses................................................................... 10 5.5. Distribution by age: ............................................................................... 10 5.6. Distribution by industry: ........................................................................ 10 5.7. Distribution by role: ............................................................................... 11 5.8. Distribution by company size: ............................................................... 11 5.9. Distribution by company department: ................................................... 11 5.10. Distribution by job tenure: ................................................................. 11 5.11. Distribution by company tenure: ........................................................ 12 5.12. Distribution by gender: ...................................................................... 12 5.13. Distribution by company health: ........................................................ 12 5.14. Distribution by co-location of colleagues: .......................................... 13 6. India Vs. the Rest of the world ..................................................................... 14 7. Employee Engagement in India ................................................................... 14 7.15. Organisational focus on Employee Engagement .............................. 14 7.16. Engagement ...................................................................................... 15 7.16.1. Engagement by industry ............................................................ 15 7.16.2. Engagement by level: It pays to be engaged ............................. 16 7.16.3. Engagement by Gender ............................................................. 17 7.16.4. Trust in managers & the senior leadership: ............................... 17 7.17. Factors influencing satisfaction ......................................................... 18 7.18. Factors influencing contribution ........................................................ 19 7.19. Retention........................................................................................... 20 8. Conclusion ................................................................................................... 22
2.
Introduction
Are you having a good day at work? If you are not, then spare a thought for workers in China, or in the UK. Or for that matter anywhere else in the world. Here in India technical professionals enjoy some of the most rewarding opportunity and interesting work. Says who? Several recent studies of Employee Engagement levels have pointed to the Indian workforce as being more focused on helping the organisation they work for achieve its goals. A recent study done in partnership between BusinessWorld and two Human Resource consulting firms - HRAnexi and BlessingWhite again points at significant differences between what motivates workers in India and what motivates workers in other countries. This latest report builds on three previous studies done by BlessingWhite. These determined that the majority of employees liked their work, were planning on sticking around, but were not necessarily focused on what mattered most to their employers. This latest research was designed to revisit and build on past themes, providing insights into how employees feel about their work, their employers, and their managers as well as their plans to stay. It also focused on the actions that organizations and individual leaders are taking to increase employee engagement. Top of mind: Whats really working and whats the payoff?
3.
Research overview
Between January 2008 and March 2008 BlessingWhite (a global consulting firm based in Princeton, NJ, USA) in collaboration with HR Anexi (a leading Indian human capital consulting firm with its HQ in Mumbai) collected global responses to an online survey. The objective of the study was to analyze worldwide employee engagement trends. BlessingWhite has conducted three previous global studies the latest in 2006 - using comparable questions.
3.1.
Methodology
Our online survey was designed to be completed in less than 10 minutes and consisted of 19 multiple-choice questions and two optional write-ins. Everyone answered the first 16 items. The remaining items differed based on respondents
answers to question 16, which inquired about plans to stay with their employer through the 2008 year. While the demographic questions were not compulsory, only respondents that provided full demographic details were included in the report. The survey link was emailed January 2008 through March 2008 to individuals representing a cross-section of job functions, job titles, and industries. It was also posted or distributed through key media, professional networking sites, and blogs. The survey was made available in English for the Indian respondents. Versions in Thai, Chinese and Japanese were also made available for those countries. Respondents represent a variety of roles and industries. To round out the employee perspective, we conducted 40 interviews with HR and line leaders. The interviews centred on employee engagement challenges and best practices of organizations and HR departments -- as well as the actions that individual leaders take each day to create engaged teams. One key objective was to gain insight into the engagement levels of workers in India. 32% of the responses were collected from Indian workers, thus allowing a reliable comparison of Indias workforce engagement levels to global benchmarks as well as analysis of factors that impact and influence engagement within the Indian population. The study finds significant differences between the polled population of Indian workers and those of other regions such as Asia-Pacific, Europe or North America: Employees in India enjoy higher levels of job satisfaction and connect more strongly with the objectives of their organization. It is a significant competitive advantage over firms in other parts of the world. The workforce in India also enjoys more buoyant job market and wage inflation. This has a direct impact on workers expectations as well as the factors influencing their decisions to stay or leave their current job. Understanding the specific factors influencing the engagement levels of the Indian workforce will be important to any Indian company looking to positively influence the productivity of its workforce. These differences must also be taken into account by any company planning global organizational development activities aimed at increasing the individual contribution of employees or improving retention scores. Engagement strategies
developed for other regions may well miss the mark if applied as-is to the Indian workforce (or vice-versa).
4.
BlessingWhites definition of engagement and the X Engagement Model.

4.2. What Is Engagement Anyway? Satisfaction and contribution
The term employee engagement means different things to different organizations. Some equate it with job satisfaction, which unfortunately can reflect a superficial, transactional relationship that is only as good as the organizations last round of perks or bonuses. Others measure engagement by gauging employees emotional commitment to their organization. Although commitment is an important ingredient, it is only a piece of the engagement equation. Most internal workforce studies, processes and initiatives focus on performance, internal communication of company results & objectives, and/or succession planning. While organizations are keen to maximize the contribution of each individual toward corporate imperatives and metrics set out by senior executives, individual employees need to find purpose and satisfaction in their work. Consequently, BlessingWhites engagement model focuses on an individuals: contribution to the companys success personal satisfaction in the role. We believe that aligning employees values, goals and aspirations with those of the company is the best method for achieving sustainable improvements in employee engagement that will help the organization reach its stated goals. Full engagement represents an alignment of maximum job satisfaction (I like my work and do it well) with maximum job contribution (I help achieve the goals of my organization). By examining engagement against these two factors allows organizations to ensure that productivity gains are sustainable in the long-term.
Engaged employees are not just committed. They are not just passionate or proud. They have a line-of-sight on their own future and on the organizations mission and goals. They are enthused and in gear, using their talents and discretionary effort to make a difference in their employers quest for sustainable business success. By better aligning these two factors, companies can increase contribution, reduce turnover or absenteeism and help build a sustainable culture in which each individual plays a meaningful part. Note: A five-minute presentation of BlessingWhites Engagement model can be found on the website at www.blessingwhite.com. The index we use to determine engagement levels contains items that reflect the two axes of contribution and satisfaction. By plotting a given population against the two axis, we identify 5 distinct employee segments: Fully engaged Almost engaged Honeymooners & hamsters Crash & burn Disengaged Segmentation of the workforce based on these segments allows us to develop actionable plans to improve worker engagement.
Segment The Engaged: High contribution & High satisfaction Almost engaged: Medium to high contribution & satisfaction
Description These employees are at the apex they are contributing strongly to the success of the organization and find great satisfaction in their work. They bring discretionary effort and initiative.When recruiters call, the large majority cordially cut the conversation short. If their engagement is not sustained, individuals in this segment could transition over time to any of the three adjacent groups. A critical group: these employees are among the high-performers and are reasonably satisfied with their current job. They may not have consistent great days at work but they know what they look like. They are however at risk they are highly employable, open to offers from other firms and would have a deep impact on performance should they leave or otherwise slide down on the contribution scale. Individuals in this segment can progress into any of the other 4 segments. Investing in this group to increase engagement is typically the most rewarding for the organization. This segment includes two sub-groups: Honeymooners are new to the organization or their role and happy to be there. The honeymoon phase typically lasts 12 to 18 months during which satisfaction is high but people are still to find their stride and understand how to contribute fully to the organizations goals. Hamsters are more tenured individuals who may perceive themselves as contributing strongly, but are in effect spinning their wheels going nowhere, contributing little to the success of the organization. Some may even be hiding out curled up in their cedar shavings (retired in place). They are very satisfied with their position and are less likely to leave. Disillusioned and potentially exhausted, these employees are top producers but are growing bitter due to a lack of personal satisfaction. They are sometimes bitterly vocal that that senior management are making bad decisions or that colleagues are not pulling their weight. If left alone, they are likely to slip down the contribution scale to become disengaged bringing down those around them. They may leave but are more likely to stop working hard. Most disengaged employees didnt start out as bad apples, but they have become the most disconnected to organizational priorities and are not getting what they need from work. Mostly sceptical of any organizational initiative or communication, they are more likely to indulge in contagious negativity. If left alone, people in this group are likely to continue collecting a pay check but contribute minimally.
General engagement strategy Sustain the level of engagement in the longterm. Recognize this groups ability to influence and motivate others.
Honeymooners & Hamsters: Medium to high satisfaction but low contribution
Invest in this group to increase engagement and sustain. Organizations should invest in them for two reasons: 1) They are highly employable, more open to offers from other firms than the engaged group and would also have a deep impact on performance should they leave or otherwise slip into a lower level of engagement. 2) These employees have the shortest distance to travel to reach full engagement. Clarify objectives and expectations. Provide more feedback. Note: The honeymoon should be temporary and it should be a priority to get them aligned and delivering as soon as possible. Look to effective on-boarding & new role coaching.
Crash & Burn: Medium to high contribution but low satisfaction
Provide coaching and support. Recognize efforts.
The Disengaged: Low to medium contribution and satisfaction.
Spell out expectations and provide opportunity to take on more challenging work. Failing that, facilitate exit from the organization.
4.3. So What? The Business Case for an Engaged Workforce

Sure, engagement has become a buzz word, hailed as the secret ingredient to competitive advantage and organizational success. It is an intuitive concept: Committed, aligned, and passionate employees are good for the business. Yet the enthusiasm for employee engagement has been fuelled in large part by faith and anecdotes. A few advocates have preached the message for decades now, but many financially driven CEOs want more proof that this people strategy pays off as a business driver.
4.3.1.
Positive Correlations
Recently, a few studies primarily conducted in the United States - have linked high employee engagement to superior business performance. For example: Towers Perrin (ISR) found that high-engagement firms experienced an EPS (earnings-per-share) growth rate of 28% compared to an 11.2% decline for low-engagement firms. Gallups research indicates that public organizations ranking in the top quartile of employee engagement had EPS growth of 2.6 times the rate of those that were below average. At the same time, the firm estimates that disengaged employees cost US firms as much as $300 billion annually in lost productivity. US retailer JC Penney has found that stores with top-quartile engagement scores generate about 10% more in sales per square foot than average and 36% more operating income than similar-sized stores in the lowest quartile. A Manpower survey of call centre customers and employees indicated that centres with high employee satisfaction also have high customer satisfaction. Alternatively, centres with low employee satisfaction have low customer satisfaction. For more research on the business drivers, see the Wikipedia page for employee Engagement.
4.3.2.
The Chicken-Egg Question
Experts like John Gibbons of The Conference Board point out that most studies indicate a correlation between high engagement and performance, not a causal link. According to Gibbons, research doesnt demonstrate a direct lead-lag
relationship. You need to see a spike in engagement, and then a spike in organization performance to know that one caused the other, and we dont have that yet. Perhaps it is easier to be engaged when you think youre on a winning team, but we believe there is enough anecdotal evidence that organizational success depends on having skilled employees who do more than just show up each day. According to the majority of HR leaders we interviewed, their top executives are becoming believers, too.
4.4.
Engagement vs. retention
While there is a clear correlation between engagement and retention, it is important to distinguish these two factors. Engaged employees may be less likely to leave the organization, but all segments of the employee population irrespective of engagement level are (to a greater or lesser degree) likely to leave at any time. The strong correlation however allows us to distinguish two trends: 1. That strategies for retention should be segmented based on the level of engagement for any one individual namely that retention policies (such as when to make a counter-offer) should always consider how strongly the individual is contributing to the organizations success but also how sustainable is that effort. For instance, retaining an employee who is leaving because they are dissatisfied with their current role simply by meeting their salary demands will not result in sustained effort unless the job conditions are also changed. 2. That stated intent to leave the organization is not a predictor of actual departure. Instead, it is an indicator of how hard a person will be working to help the organization to reach its objectives and how much effort may be spent on other activities (such as tracking the wanted ads on company time.) Based on our segmentation approach and the data analyzed, we will review the various strategies for tackling engagement and retention in each of the five segments.
5.
Distribution of Indian responses

5.5. Distribution by age:
Distribution of Indian respondents by age: 5% 1% 0% 1930 1945 1946 1953 1954 1964 1965 1977 1978 - 1990 32%
5.6.
Distribution by industry:
Total 25.02% 23.76% 16.01% 13.10% 8.26% 4.30% 2.57% 2.40% 2.19% 1.52% 0.55% 0.34% 100.00%
Which best describes your organization's industry? Count of Count Which best describes your organizations industry? Technology Communications/media Banking and insurance Retail Government Business services Consumer products and services Manufacturing Academia, not-for-profit Pharma, Biotech and Healthcare Energy/utilities Other Grand Total
62%
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5.7.
Distribution by role:
Total 7.58% 3.92% 26.33% 20.64% 32.56% 5.35% 2.23% 1.39% 100.00%
5.9. Distribution by company department:

Which best describes your department? Customer Service Engineering Finance General Administration Human Resources Information Technology Management Manufacturing/Production Marketing Other Research & Development Sales Training & Development Grand Total Total 9.31% 4.13% 7.29% 1.77% 9.90% 19.42% 1.39% 10.07% 8.00% 1.26% 12.43% 14.45% 0.59% 100.00%
What role best describes your position in the organization? Vice President or above Director Manager/Supervisor Team Leader/Tech Lead Specialist/Professional Administrative/Clerical Consultant Other Grand Total
5.8.
Distribution by company size:

Total 33.36% 54.80% 7.41% 4.42% 100.00%
5.10.
Distribution by job tenure:
How many people are employed by your organization? 1 999 1,000 4,999 5,000 9,999 More than 10,000 Grand Total
How long have you worked in the position you now hold? Total Less than 1 year 45.03% 1-3 years 44.69% 4-7 years 6.28% More than 7 years 4.00% Grand Total 100.00%
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5.11.
Less than 1 year 1-3 years 4-7 years More than 7 years Grand Total
Distribution by company tenure:

Total 44.02% 41.49% 7.54% 6.95% 100.00%
5.13.
Distribution by company health:

Total 54.47% 34.37% 2.44% 7.29% 1.43% 100.00%
How long have you worked for this organization?
Which best describes your organizations current business situation? Growing rapidly Growing steadily Losing ground Stagnant, flat Struggling to survive Grand Total
5.12.
Female Male Total
Distribution by gender:
Total 23.00% 77.00% 100%
Distribution of Indian responses by company growth
7% 2%
1%
Grow ing rapidly Grow ing steadily Losing ground Stagnant, flat Struggling to survive
This distribution is consistent with the gender distribution of professionals in India1

35% 55%
: While India has a 36 percent female participation in the overall labour force, for professional and technical workers the figure is an abysmal 21 percent' The Great Indian Gender Divide' By Neeta Lal, The Wip. Posted January 29, 2008.
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5.14. Distribution by co-location of colleagues:

How many other members of your team work at the same location as you do? India Global All 26.58% 30.11% Most 22.11% 26.24% Some 40.86% 33.62% None 10.45% 10.03% 100.00% 100.00% Grand Total
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6.
India Vs. the Rest of the world
Just over a third (34%) of employees in India are fully engaged and 13% are actually disengaged. Although a sobering situation, India stands out from the world population as having one of the most focused and satisfied workforces.
Region India South AF. NA AU NZ Europe SEA China Other Grand Total
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
11% 13% 13% 18% 29% 12% 13% 12% 14% 11% 19% 20% 21% 21% 18% 13% 15% 18% 9% 33% 36% 18% 26% 27% 24% 28% 31% 16% 9% 34% 31% 29% 26% 23% 22% 32% 27% 28% 7% 7% 13% 12%
Fully Engaged Almost Engaged Crash&Burn Newlyweds & hamsters Disengaged
Disengaged 13% 11% 19% 20% 21% 21% 33% 36% 18%
Honeymooners & Hamsters 13% 14% 12% 18% 15% 9% 9% 7% 12%
Crash & Burn 11% 18% 13% 12% 13% 18% 16% 7% 13%
Almost Engaged 29% 26% 27% 24% 28% 31% 32% 27% 28%
Fully Engaged 34% 31% 29% 26% 23% 22% 10% 24% 29%
10% 24% 29%
7.
Employee Engagement in India

7.15. Organisational focus on Employee Engagement
When it comes to organisational focus on employee engagement, not much has changed since our first employee engagement report in 2003.
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Grand Total
South AF.
AU NZ
NA
Europe
China
India
SEA
Other
Indian firms, on the whole, have benefited from rapid growth and healthy profitability. HR processes have struggled to keep up with the growth and dynamic nature of Indias workforce. Surveys have certainly become more established - even institutionalized - but our findings and interviews indicate that firms still struggle to make these reports actionable.
7.16.
Engagement
"The key talent management challenge for Indian companies is how to keep workforces highly productive and, at the same time, satisfied, engaged and committed."
Accenture Research Report: "The HighPerformance Workforce Study 2007 India"
Consistent with other studies, BlessingWhite finds the Indian working population to be highly engaged both engaged in helping organizations achieve their stated strategic goals and engaged in meeting their own personal objectives of interesting, meaningful and rewarding work.
7.16.1. industry
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Engagement by
Fully Engaged Almost Engaged Newlyweds & hamsters Crash&Burn Disengaged
Banking and insurance
Academia, not-for-profit Technology
Energy/utilities
Manufacturing
Business services Consumer products
Communications/media
Pharma, Biotech and Other
Government
Retail
The level of engagement of Indian workers does vary from one industry to the next. Having said this, with the exception of the Government sector (which has relatively low engagement levels in all countries), there is no clear pattern of the types of industries where engagement levels are strongest. Some high-tech Copyright BlessingWhite 2008 15 HR Anexi Confidential
Average
industries (like Pharma and Biotech) score low whereas some service focused industries (Retail, consumer products) score high.
7.16.2.
100% 90%
Engagement by level: It pays to be engaged
28%
80% 70% 60%
29%
36%
36%
44%
46%
32%
50% 40% 30% 20% 10% 0%
28% 30% 16% 10% 11% 16%

Specialist/Professional
31% 25% 24%
The Engaged Almost Engaged Honeymooners & hamsters Crash & Burners Disengaged
16% 10% 13%

Administrative/Clerical
11% 11% 11%

Manager/Supervisor
12% 10% 10%

Director
11% 7% 12%
Vice President or above
11% 13%
Team Leader/Tech Lead
As we might expect, people higher up in the organisation experience higher levels of engagement. This is hardly surprising: they are closer to the centres of decision making, have more say in the direction of the organisation and presumably were promoted at least partly on their ability to deliver against the organisations goals. This trend is more progressive in India than it is in other parts of the world, where we observe a much greater drop in engagement past the VP level. Still, with roughly half of all Indian VPs and C level executives fully engaged in the pursuit of organisational success, there is plenty of room for improvement even at the most senior levels.
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7.16.3.
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Engagement by Gender
Male Female
Fully Engaged
Almost Engaged
Crash&Burn
Female Male Grand Total
Fully Engaged 28% 36% 34%
Almost Engaged 29% 29% 29%
Honeymooners & hamsters 14% 12% 13%
Disengaged
Newlyweds & hamsters
Crash & Burn 12% 10% 11%
Disengaged 18% 12% 13%
Engagement by gender reveals a large disparity between men and women: Men count 8% more fully engaged and 6% less Disengaged than the female population.
7.16.4.
Trust in managers & the senior leadership:
Understanding the relationships of trust in the organisation is very important when addressing employee engagement. Those critical conversations that help in engaging employees must come from a source they trust. Typically, less engaged employees have lower levels of trust in the management of the organisation.
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100%
100%
90%
90%
32%
80%
80%
45%
70%
65% 72% 81% 90% 37%

Agree & Strongly Agree Neither Agree/Disagree Disagree & Strongly Disagree
70%
71%
60%
60%
89%
50%
86%
79%
Agree & Strongly Agree Neither Agree/Disagree Disagree & Strongly Disagree
50%
40%
40%
29%
30%
19%
20%
30%
22% 15% 7% 16% 4% 6%
31%
20%
18% 13% 26% 10% 11% 4% 8% Disengaged
10%
10%
7% 3% The Engaged
0%
3% The Engaged
Almost Engaged Crash & Burners Honeymooners & hamsters
Disengaged
0%
Almost Engaged Crash & Burners Honeymooners & hamsters
I trust the senior leadership
I trust my manager
7.17.
Factors influencing satisfaction
In the survey, respondents were asked to pick the single top item that they believe would most influence their satisfaction at work.
Greater clarity about my own work preferences and career goals 10.74% 9.80% Greater clarity about what the organization needs me to do and why 7.71% 8.28% More say in how my work gets done 4.04% 5.43%
India Grand Total
Career development opportunities and training 30.03% 28.22%
More challenging work 20.09% 12.24%
More opportunities to do what I do best 19.33% 23.80%
Improved cooperation among my co-workers 4.47% 7.39%
A better relationship with my manager 3.58% 4.82%
When reviewing the data on a national level, the Indian working population lists three items as most important to their satisfaction in the workplace: Career development opportunities and training (30%) More challenging work (20%) More opportunities to do what I do best (19%) These three factors top of Indian workers wish lists consistent with the top 3 global demands. More challenging work in particular stands out as a louder request from Indian workers. The nuance in these requests (and a more actionable approach) appears when we look at the data by segment based on the BlessingWhite engagement model:
Choose the item that would most improve your job satisfaction. (Select only one.) Career development opportunities and training More challenging work Disengaged 26.25% 15.63% Crash& Burn 27.45% 18.82% Honeymooners & Hamsters 28.67% 20.33% Almost Engaged 32.06% 16.98% Fully Engaged 31.13% 24.75% Grand Total 30.03% 20.09%
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More opportunities to do what I do best Greater clarity about my own work preferences and career goals Greater clarity about what the organization needs me to do and why Improved cooperation among my coworkers More say in how my work gets done A better relationship with my manager Grand Total
20.31% 10.31% 13.13% 5.63% 5.00% 3.75% 100.00%
19.22% 12.94% 8.63% 5.88% 3.14% 3.92% 100.00%
18.00% 11.67% 9.67% 4.00% 3.67% 4.00% 100.00%
19.18% 11.57% 6.88% 4.69% 4.10% 4.54% 100.00%
19.61% 9.19% 5.27% 3.55% 4.04% 2.45% 100.00%
19.33% 10.74% 7.71% 4.47% 4.04% 3.58% 100.00%
Career development opportunities are a clear expectation of Indian workers, rating as the #1 request for employees at all levels of engagement. Offering challenging work however will mostly build engagement with the Honeymooners & Hamsters segment, as well as help sustain the engagement level for those already fully engaged.
7.18.
Factors influencing contribution
In the survey, respondents were asked to pick the single top item that they believe would most influence their contribution (expressed as your performance) at work.
Regular, specific feedback about how Im doing 25.32% 20.34% Greater clarity about what the organization needs me to do and why 21.74% 18.54% Better communi cation with my manager 7.41% 6.77% A better relationship with my coworkers 7.25% 4.81% A coach or a mentor other than my manager 4.76% 11.41%
India Global
Development opportunities and training 26.28% 20.35%
More resources 7.25% 17.78%
Again, the top three items for Indian workers match the top three global requests, but the pattern is even more pronounced in India with a clear top 3: Development opportunities and training (26%) Regular, specific feedback about how Im doing (25%) Greater clarity about what the organization needs me to do and why (22%) It is important to note that relationships with co-workers and managers (while higher than global figures) do not rank highest on most peoples wish list. As we conclude globally, it is not the quality of the relationships that hinders employee engagement, but rather the lack of time invested in clarity and coaching to gain peoples engagement. Also note that Indian workers do not feel as deprived of resources to get their tasks accomplished.
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As with satisfaction factors above, the nuance in these requests (and a more actionable approach) appears when we look at the data by segment based on the BlessingWhite engagement model:
Choose the item that would most improve your performance. (Select only one.) Development opportunities and training Regular, specific feedback about how Im doing Greater clarity about what the organization needs me to do and why Better communication with my manager A better relationship with my coworkers More resources A coach or a mentor other than my manager Grand Total Crash & Burn 27.84% 15.29% 23.92% 9.02% 7.45% 9.80% 6.67% 100.00% Honeymooners & hamsters 24.67% 21.33% 26.67% 8.00% 5.67% 6.67% 7.00% 100.00% Almost Engaged 27.23% 29.28% 18.01% 6.30% 8.05% 6.73% 4.39% 100.00% Fully Engaged 26.23% 30.76% 18.38% 7.60% 6.37% 7.84% 2.82% 100.00% Grand Total 26.28% 25.32% 21.74% 7.41% 7.25% 7.25% 4.76% 100.00%
Disengaged 24.69% 14.69% 31.88% 7.50% 9.06% 5.31% 6.88% 100.00%
While we find the same three items in the top of each segments list, there is a shift from greater clarity for those low on the satisfaction scale (Disengaged, Crash & Burn) to Regular, specific feedback for those higher on the satisfaction scale.
7.19.
Retention
In 2008, HR executives in India continue to struggle with talent management issues, and in particular with retention. Yet, when asked the question Assuming you have a choice, do you plan to remain with your organization through the 2008 year? we find the Indian working population to be more engaged than the global workforce:
India Global [excluding India] No Way 4.76% 7.83% Probably stay 29.70% 33.97% Yes 65.54% 58.20%
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The proportion of Indian workers answering Probably stay is lower than the global and is tied not to dissatisfaction at work but to more opportunity in a growing economy. While financial returns do not top the list of wishes for workers in Europe, Asia Pacific or North America, Indian workers are still very much focused on building their personal wealth. Remuneration features highly on their list of priorities. Overall, Indian companies are facing the typical challenge of a growing economy: retaining the most productive talent.
Planning on leaving?
"Assuming you have a choice, do you plan to remain with your organization through the 2008 year?" 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% No Way Probably stay Yes 4.76% 7.83% 33.97% 29.70% India Global [excluding India] 65.54% 58.20%
While this can be achieved in the short term through higher compensation, a better strategy in the long term is to provide competitive compensation coupled with interesting work and growth opportunities.
Question: Assuming you have a choice, do you plan to remain with your organization through the 2008 year? Data for all Indian respondents
Disengaged 17.81% 49.06% 33.13% 100.00% Crash& Burn 9.02% 49.02% 41.96% 100.00% Honeymooner s & hamsters 3.00% 29.67% 67.33% 100.00% Almost Engaged 1.02% 28.84% 70.13% 100.00% Fully Engage d 2.08% 16.79% 81.13% 100.00% Grand Total 4.76% 29.70% 65.54% 100.00%
No way Probably stay Yes, definitely Grand Total
Comparison data for all non-Indian respondents (i.e. Global responses less India)
Disengage d 21.89% 48.51% 29.60% Crash& Burn 11.71% 50.78% 37.52% Honeymooner s & hamsters 5.57% 39.51% 54.92% Almost Engaged 3.33% 31.02% 65.65% Fully Engage d 0.81% 14.79% 84.41% Grand Total 7.83% 33.97% 58.20%
No way Probably Yes, definitely
When looking at the data by segment, we see the clear correlation between engagement and stated intent to stay. Consider for instance that only one out of three disengaged employees fully expects to be working for the company this time next year. This gives an indication of how focused these individuals will be on delivering against the
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companys objectives, and how much of their focus may be on say identifying their next opportunity. Even if these individuals do not leave the company, their staying and claiming a pay check may not be the best thing for the organization. When we compare Indian responses to those of other regions, we see that being fully engaged is less of a guarantee of retention in India. Analysis of the write-in answers indicates that pay expectations and a heated job market means that people are less loyal to their current employer and will be expecting to make their next career move outside of the current organization. Workers who indicated that they would be leaving or might consider leaving were then asked what could their current employer do to prevent them from walking out the door. Again the difference between the Indian responses and the global responses point to a focus on compensation and career opportunities.
Access to resources, working conditions & location 10.0% 15% Respect, positive work environment, fairness, recognition 35.0% 29% Clarity and consistency of strategy and org structure 13.2% 14% Improved talent utilization & job scope. 19.4% 19% Nothing, I am leaving no matter what 2.4% 3%
Better pay India Global minus India 33.3% 21%
Growth / career opportunities 35.9% 31%
Manager Feedback 7.5% 8%
Rebuild faith in senior leadership 2.1% 6%
Note: %s add up to more than 100% because respondents mentioned more than one reason.
Also noteworthy is 1) The greater confidence in senior management this is typical of a growth economy where fewer companies are struggling to stay profitable (a situation typically blamed on senior management by individual workers). 2) A request for a respectful and equitable work environment
8.
Conclusion
The Engagement Equation in India has a clear number of specific factors associated with a young, dynamic and fast-paced economy. Employees expect opportunity and a chance to partake in the action. They trust in their leaders and are willing to make the sacrifices necessary to ensure the success of the organisation they belong to. Opportunities abound for the respondent population. Consequently pay and development opportunities rate highly in their expectations. In such an environment, companies should not feel compelled to attract and retain talent through inflated salaries and pampered working conditions. Instead, they should focus on building an equitable and dynamic work environment along Copyright BlessingWhite 2008 22 HR Anexi Confidential
with a culture that is demanding but rewarding. Pay scales should be competitive, but its providing development opportunities, challenging work and clarity on the organisations goals and expectations that will get people performing at their best. It is possible that in a period of high employment and job opportunity certain organizations may become victims of complacency: environments where employees may settle with little fear of pressure to perform. While organizations in India will benefit from having access to an educated & motivated workforce, they should non-the-less clearly spell out their expectations for performance. Indian firms need to give people the opportunity to prove themselves and develop their career through delivering to the companys goals rather than simply rely on the demand for qualified labour. The real test for Indian companies is still to come: can these levels of engagement be sustained in a downturn? Will employees be ready when market demands change and companies need to react? Building an engaged and loyal workforce today will help weather the challenges of tomorrow. [For more information on the employee engagement survey and recommendations on how to increase employee engagement in your company, call Ms. Usha Arora on +91 22 4090 1000 or write to us at usha.arora@hranexi.com]
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Employee Engagement Report 2008

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Employee Engagement Report 2008

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The Employee Engagement Equation In India

Presented By BlessingWhite & HR Anexi

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BlessingWhites definition of engagement and the X Engagement Model.

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Honeymooners & Hamsters: Medium to high satisfaction but low contribution

Crash & Burn: Medium to high contribution but low satisfaction

Provide coaching and support. Recognize efforts.

The Disengaged: Low to medium contribution and satisfaction.

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4.3. So What? The Business Case for an Engaged Workforce

The Chicken-Egg Question

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Engagement vs. retention

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Distribution of Indian responses

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5.9. Distribution by company department:

Distribution by company size:

Distribution by job tenure:

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Distribution by company tenure:

Distribution by company health:

How long have you worked for this organization?

This distribution is consistent with the gender distribution of professionals in India1

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5.14. Distribution by co-location of colleagues:

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India Vs. the Rest of the world

Honeymooners & Hamsters 13% 14% 12% 18% 15% 9% 9% 7% 12%

10% 24% 29%

Employee Engagement in India

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Fully Engaged Almost Engaged Newlyweds & hamsters Crash&Burn Disengaged

Banking and insurance

Academia, not-for-profit Technology

Business services Consumer products

Pharma, Biotech and Other

Engagement by level: It pays to be engaged

28% 30% 16% 10% 11% 16%

31% 25% 24%

16% 10% 13%

11% 11% 11%

12% 10% 10%

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Female Male Grand Total

Fully Engaged 28% 36% 34%

Almost Engaged 29% 29% 29%

Honeymooners & hamsters 14% 12% 13%

Newlyweds & hamsters

Crash & Burn 12% 10% 11%

Disengaged 18% 12% 13%

Trust in managers & the senior leadership:

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65% 72% 81% 90% 37%

22% 15% 7% 16% 4% 6%

18% 13% 26% 10% 11% 4% 8% Disengaged

Almost Engaged Crash & Burners Honeymooners & hamsters

Almost Engaged Crash & Burners Honeymooners & hamsters