Global work forces are continuing to see low points of employee satisfaction and engagement, which remains at the lowest level since 2008, according to a new analysis by Aon Hewitt, a global human resources consulting and outsourcing business.
Based on Aon Hewitt's findings, there is a 56 percent engagement level to date 2011. This hits the same level as 2010 but lower than 2009 when it was 60 percent and 2008 when it was 57 percent. Engagement levels are typically between 65 percent and 100 percent for a high-performing culture. Forty-five percent to 65 percent suggests the work force is unresponsive to organizational success or failure, and figures lower than 45 percent reveal a serious or destructive range.
Aon Hewitt finds that the most significant decline in engagement in 2011 is employees' perception of performance management. On a global scale, workers believe their employers do not offer the necesary focus or level of management that would increase productivity or have connected individual performance to company goals.
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"A significant number of employees are not motivated enough to provide extra effort beyond the job requirements, and many anticipate leaving their employers in the near future," says Pete Sanborn, talent and organization consulting global practice leader for Aon Hewitt. "This is critical, as our research continues to show a strong correlation between employee engagement and financial performance, even in turbulent financial times.
"For example, in 2010, organizations with engagement levels of 65 percent or greater outperformed the total stock market index and posted total shareholder returns 22 percent higher than average. On the other hand, companies with engagement of 45 percent or less had a total shareholder return that was 28 percent lower than the average return in 2010."
In fact, Aon Hewitt's analysis shows that performance management fell by nearly 8 percent globally to date in 2011 for a global satisfaction score of 44 percent. Performance management is at 55 percent in Latin America, 50 percent in the U.S., 49 percent in Canada, 49 percent in Asia Pacific and 36 percent in Europe.
Engagement scores related to performance management are low, as well. Globally, career Opportunities is at a 42 percent satisfaction level, recognition is at 40 percent, tools and resources are at 51 percent, and senior leadership is at 48 percent.
"Our analysis suggests that even at the height of the recession, employees felt a greater connection to their work and role in achieving organizational success than they do now," Sanborn says. "This is a harsh reality but also an opportunity for those employers willing to invest in specific areas that will have the largest impact on employee engagement. While there is an expense in doing so, the return on investment can be well worth the effort."
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