April 18, 2007Study finds that companies with highly engaged employees tend to be among the better performersCorporations that value their employees and that live by those values end up with highly engaged staff who, in turn, contribute positively towards improving the company’s bottom line, the results of a study suggest.
According to the latest study by human resources consulting and outsourcing company, Hewitt Associates, organisations that it named among the best employers in
Hong Kong reported an average profit growth of 38 per cent in 2005, compared with 17 per cent for firms that participated in the study but did not make the top 10 list.
“People issues are business issues.”
“Customers are a lot happier when served by highly engaged staff. This leads to customer loyalty and contributes positively to the business result of the company,”
While almost all companies claim that they treat employees as valuable assets, not all actually deliver on it. Best employers, as their name implies, back up their words with actions.
“Best employers do not disappoint. They set clear expectations and deliver on that. What you see is what you get.”
In the case of best employers, company practices are aligned with what is verbally communicated. More chief executives of companies that made the best employer list than those that did not said they valued quality of leadership and attraction of talent as the most important factors affecting their organisation’s ability to succeed.
Thirty per cent of CEOs from the best employer list consider employee engagement as a top priority for the year ahead, compared to a miniscule 6 per cent of CEOs from “the rest” list. Employee engagement was the most frequently cited priority for CEOs on the best employer list.
Hewitt’s latest Best Employers in Hong Kong study is part of the fourth Best Employers in
Asia study. The Ritz-Carlton Hotel topped the
Hong Kong top 10 list this year for the third time.
Other winners in
Hong Kong include Sun Hung Kai Properties, Jones Lang LaSalle Management Services, Nokia, Convoy Financial Services, Langham Place Hotel in Mong Kok, UBS AG, Pret A Manger, McDonald’s Restaurants and American Express.
“There are new companies in the top 10 this year. There are certain local companies that put emphasis on their HR strategy as part of their business strategy. They will be very successful if they do so.”
Figures from the report show that while “the best” have an average employee engagement score of 76 per cent, “the rest” returned an engagement score of only 49 per cent. Engagement is defined as the level of intellectual and emotional commitment an employee has for their company.
It measures three aspects of employee behaviour to determine their level of engagement: whether employees say great things about the company, whether they want to stay with the company and whether they are inspired and motivated to do their best for the company.
The best employers also tended to view human resources as a strategic business partner. Ninety per cent of CEOs from firms that made the list acknowledged that their HR departments identified and implemented human resource strategies and solutions that were critical to meeting business needs, compared to 71 per cent of CEOs from “the rest”.
And contrary to popular opinion, paying more does not necessarily make one a best employer. Companies that made the list gave salary increases similar to those that did not.
Top brands want best employer label McDonald’s / American Express
McDonald’s (ranked ninth in the survey) and American Express (ranked 10th) strive to be leading brands and be recognised among
Hong Kong’s best employers.
Susanna Li Man-ha, vice-president of human resources and training for McDonald’s, said the recognition had a special meaning because of previous controversies about the company’s pay policy. She said the introduction of improved staff management measures two years ago had clearly made a difference.
“We are committed to our staff and we want the public to see and feel this,” Ms Li said. “This means we have to be doing the right things internally first to impress our internal clients, before they reflect this in their service to the public.”
She said the pay of crew employees was now 16 per cent higher than in 2004. The company had also improved other benefits and was organising more family orientated activities for full-time and part-time staff.
“But above all, we ensure that there is frank dialogue between the management and our staff to get them engaged,” Ms Li said.
American Express also sees staff engagement as vital to maintaining service standards. Koh Yat-chung, general manager for
Hong Kong, said this meant keeping staff fully informed about all aspects of the organisation and inspiring them to go the extra mile when dealing with customers.
“Open communication at all levels is crucial. Our staff are in a better position to provide a superior service if they know what we are doing in the company,” Mr Koh said.
Functional forums are arranged for the 770 staff in
Hong Kong. A strong corporate culture made it possible to keep average staff turnover well below the industry average of 15 per cent. “We believe we have to give employees some common values to look up to as part of our commitment to a long-term relationship with them,” Mr Koh said.