2nd edition shows improving APAC engagement trend now on par with global

Nov 20, 2014

Hong Kong, 20 November, 2014 - Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE: AON), today launched the 2014 Trends in Asia Pacific Employee Engagement Report.

As organizations in Asia Pacific continue to struggle with economic volatility and uneven growth patterns, a new analysis by Aon Hewitt in Asia Pacific, the global talent, retirement and health solutions business of Aon plc (NYSE: AON) finds that for these firms, overall employee engagement and employees' perceptions of their work experience remained static or slightly declined. These results diverge from global engagement trends, which improved within the same time frame.

"In many cases, employers in Asia Pacific will be building on a strong foundation: our report shows that employees in the region have already attained levels of engagement that are on par with the global average. There is also plenty of room for improvement: 24% of Asia Pacific employees are only passively engaged. The challenge for employers is to improve and sustain levels, to support continued business growth", said Gabriela Domicelj, Regional Engagement Practice Leader, Asia Pacific.

Key Findings of Aon Hewitt's 2014 Trends in Asia Pacific Employee Engagement
As the global economy continues to stabilize, GDP growth improved across most of the Asia Pacific region during the past year, with an overall growth rate of 4%. The outlook for Asia Pacific's growth is to remain steady and higher than the global average, at 5.4% in 2014 and 5.5% in 2015. Overall, positive changes have impacted engagement levels in Asia Pacific, as reflected in the key findings below.

Key Findings of Aon Hewitt's 2014 Trends in Asia Pacific Employee Engagement

  • Asia Pacific employee engagement in 2013 was higher than before the financial crisis. Rising from 58% in 2012 to 61% in 2013, Asia Pacific's average engagement score rose to 61% in 2013 from 58% in 2012, a bigger increase than was seen in the global engagement score, which rose to 61% in 2013 from 60% in 2012. In 2013, Asia Pacific shares the same engagement score of 61% as the global average. Of the 12 countries represented in this report, nine saw improvements in employee engagement levels in 2013, two saw scores decline, and one remained the same.
  • Compared to the global average, Asia Pacific employees are more willing to advocate for their employers, but less willing to stay in the organization. In 2013, Asia Pacific reported increases in all Say, Stay and Strive scores (see Appendix for Aon Hewitt's Engagement Model). Most significantly, Say scores increased by six points to 69%, showing that more employees are saying good things about their employers. Despite an increase since 2012, the Stay score of 55% remained the lowest of the three, reflecting that just under half of employees in Asia Pacific are willing to stay with their organizations.
  • Almost two-thirds of all employees in Asia Pacific are engaged; 24% are passively engaged and present a great opportunity for employers to improve their engagement levels. The engagement distribution in Asia Pacific shares an identical pattern with global employee engagement distributions. 21% of employees are highly engaged, leaving a large potential for employers to improve engagement, as 64% of employees in Asia Pacific are either moderately or passively engaged. With the right management and work conditions, these employees could become highly engaged.
  • The overall work experience in Asia Pacific is improving. Globally, overall work experience improved by 4%, while Asia Pacific showed an increase of 6%. The areas that have improved the most are employer brand and foundational elements (i.e., safety, resources). However, perception of leadership and company practices has dropped. This may be because Asia Pacific employees are becoming more sophisticated and therefore more discerning about business and strategic imperatives.
  • Career Opportunities and Pay remain the top two engagement drivers in Asia Pacific. Career Opportunities were the number one driver both globally and in Asia Pacific in 2013 (Career Opportunities ranked as the top engagement driver in nine out of 12 countries). Pay has a particularly higher ranking in Asia Pacific compared to the rest of the world, and is valued notably in China, South Korea, and Thailand.

Anand Shankar, Performance, Talent and Rewards Regional Practice leader, Asia Pacific, said, "Employees today have access to vast amounts of data that allow them to compare potential and current employers on multiple levels, and they are using it to ensure they get the best jobs and conditions possible. Employees in Asia Pacific are becoming increasingly clear and vocal about what they want. Our research shows that employees in Asia Pacific want career opportunities even more than they want pay increases."

Gabriela Domicelj added: "Engagement drivers differ substantially by country. Asia Pacific shows a great deal of cultural, economic, and political diversity. Talent management practices also vary greatly in maturity across countries and industries in this region. Operating in this complex environment presents a challenge for leaders trying to drive high levels of employee engagement. Organizations that invest in understanding and managing the key drivers of employee engagement across their multiple constituencies will be able to drive performance in more efficient and effective ways".

The report first analyzes employee engagement trends for the Asia Pacific region, then goes into a detailed breakdown of each of the 12 countries surveyed. These data-backed insights are important for helping employers understand how current trends in demographics and culture are reshaping what employees want in exchange for their efforts. With these trends in mind, companies need to take action to optimize employees' motivation and productivity.

A Call to Action for Leaders: Improving Employee Engagement in Asia Pacific
Overall, in 2013, Asia Pacific witnessed changes in employee engagement. In particular, the region saw improvements in the number of "highly engaged" employees, which increased by 5% to 21%, and in the engagement levels of Millennials, which rose by 5% in 2013 compared with 2012. Looking ahead, employers should focus on ways to sustain growth and avoid volatility in employee engagement levels, especially in fast-growing economies such as China, Indonesia, Thailand and India. Investing wisely in engagement-improvement initiatives is the key for business and HR leaders. The following top five engagement drivers in Asia Pacific highlight the opportunities we see for organizations to improve their employee engagement levels.

  • Career Opportunities - consistently shows up as the most important employee engagement driver across all Asia Pacific countries. The importance of Career Opportunities within an organization is evident across generations, job levels and job function. Thus, having a flexible and clearly defined career path is one of the most critical improvements for employers to focus on. Career Opportunities also includes having options for short-term assignments and geographic transfers. Strengths in this area will certainly be a differentiating factor for employers in Asia Pacific.
  • Pay - After rising in the rankings for two years, Pay remains the second most important engagement driver in Asia Pacific. The findings around pay indicate that economic pressures, threats of inflation, and historical pay constraints may have caused pay to be more highly sought after in specific Asia Pacific countries. Employers should focus on "pay-for performance" strategies, drive more variation in reward levels that are aligned with engagement and performance output, and motivate their employees to give their best performance.
  • Brand Alignment - Brand Alignment has risen from number four to number three in the list of top five impact drivers. It is important that organizations are consistent in keeping the promises they make to their employees and in providing the promised experience for employees once on-board. Those organizations that focus on articulating a unique and compelling employee value proposition for prospective and current employees and who then deliver on that proposition will be rewarded with higher employee engagement.
  • Recognition - Recognition schemes are certainly less costly for an employer than direct pay and can also have a significant impact on employee engagement. Despite many economic and business pressures, engagement is on the rise - more employees have said good things about their company are committed to staying with them and have put in extra efforts at work. These employees deserve recognition from their employers, which will in turn result in sustained or even higher engagement.
  • Managing Performance - The only driver that is new on the list compared to the previous year. Employees in Asia Pacific want to work for organizations that focus on clear performance outcomes. Employers need a holistic approach to 'employee performance' as part of their culture, and one that is supported by enabling performance management processes, effective people management, ensuring learning and development supports the capability required to perform, and reinforcing performance through rewards and recognition.


Gabriela Domicelj concluded: "Today's talent challenges in Asia Pacific are significant. Organizations have to invest wisely in their employees to stay ahead of the race. Getting employee engagement right is a major step towards driving positive business results through increased employee productivity. Now is the time to focus on improving employee engagement in workplaces across Asia Pacific".

Click here to download the full report: 2014 Trends in Asia Pacific Employee Engagement.

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About Aon Hewitt
Aon Hewitt empowers organizations and individuals to secure a better future through innovative talent, retirement and health solutions. We advise, design and execute a wide range of solutions that enable clients to cultivate talent to drive organizational and personal performance and growth, navigate retirement risk while providing new levels of financial security, and redefine health solutions for greater choice, affordability and wellness.  Aon Hewitt is the global leader in human resource solutions, with over 30,000 professionals in 90 countries serving more than 20,000 clients worldwide.  For more information on Aon Hewitt, please visit http://www.bestemployersasia.com/ & www.aonhewitt.com.


About Aon
Aon plc(NYSE:AON) is the leading global provider of risk management, insurance and reinsurancebrokerage, and human resourcessolutions and outsourcingservices. Through its more than 66,000 colleagues worldwide, Aonunites to empower results for clients in over 120 countries via innovativeand effective riskand peoplesolutions and through industry-leading global resources and technical expertise. Aon has been named repeatedly as the world's best broker, best insurance intermediary, best reinsurance intermediary, best captives manager, and best employee benefitsconsulting firm by multiple industry sources. Visit aon.comfor more information on Aon and aon.com/manchesterunitedto learn about Aon's global partnership with Manchester United. 

Media Contact:
Romy Serfaty, +852.2917.7952 / +852.9459.0100
romy.serfaty@aonhewitt.com

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