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Leadership and Engagement
 The Impact of Leadership on Employee Motivation

 Engaged leaders engage others                              How do they achieve this?

 Aon Hewitt analysis of companies with strong               Senior leaders in high-performing organisations
 financial results shows that one distinguishing            are perceived as more effective by middle managers
 feature is the quality of their senior management. In      and employees and it’s not because they are less
 particular we see that senior management’s own levels      demanding. They set clearer and more aggressive
 of engagement are high and their ability to engage         goals, address issues of underperformance and
 others in the organisation is strong.                      work at ensuring that everyone understands
                                                            organisational strategy and goals.
 The chart below (Figure 1) shows that 95% of senior
 leaders in high performing organisations are engaged.      Additionally, senior leaders in these high-performing
 This compares with 70% of senior leaders in other          organisations are seen to be open, honest and
 organisations.                                             trustworthy and able to create excitement for
                                                            the future.
 This chart also shows that the gap between
 high-performing organisations and others widens            Our research also reveals that senior leaders
 at lower organisation levels demonstrating that            in high-performing organisations are known for
 senior leaders in high-performing organisations do         the time they spend nurturing and developing
 a better job of engaging others, particularly middle       future talent.
 management levels.



                                  Figure 1: Engagement by Level In Organisation

             100%

             90%

             80%

             70%
Engagement




             60%                                                                                    Best Companies

             50%

             40%                                                                                    Other Companies

             30%

             20%                                                                                    Source: Aon Hewitt
                                                                                                    Global Best Employer
             10%                                                                                    Research

              0%
                      Senior   Report to Senior Middle   Team Leader   Professional   Team Member
                    management  Management Management
Case Study A                                                                     Case Study B

Aon Hewitt compared leaders’ 360 degree feedback                                 We compared individual survey items of high
scores with engagement study data to understand                                  engagement business areas with low engagement
the specific behaviours leaders were demonstrating                               areas and identified that the biggest differences
in highly engaged business units.                                                were in the following leadership areas:
                                                                                 ▪▪ Inspiration
We discovered that leaders who took the following
actions had the highest engagement in their                                      ▪▪ Motivation
businesses, 14 % points higher than other areas:
                                                                                 ▪▪ Acting ethically, honestly
▪▪ Living and encouraging the company’s                                          ▪▪ Providing development
   values—role modeling what the company
   believes is important in how people work                                      We helped the organisation to focus on four specific
   together                                                                      areas:

▪▪ Focusing on strategy and implementation—                                      ▪▪ More open, transparent and candid
   showing that they know how to run the business                                   communication
▪▪ Investing in people to build their skills                                     ▪▪ Creating better messaging between Senior
▪▪ Overcoming and removing barriers that prevent                                    Leadership and employees
   change from happening                                                         ▪▪ Improving clear and granular feedback regarding
                                                                                    performance, pay and promotions
                                                                                 ▪▪ Better education of employees about opportunities
                                                                                    within the organisation

The impact on business results

The knock-on impact on business results is also
compelling.


     When satisfaction
                                                     Engagement scores                         Total Shareholder
   with senior leadership
                                                         also change                         Return (TSR) increases
       changes from
                                                      from 47% to 72%                           from 1% to 19%
        32% to 76%




Contacts
If you would like more information, please contact either of the following consultants:

Jenny Merry 	              +44 (0) 1727 888395 	      jenny.merry@aonhewitt.com
Rita Veres    	            +36 1 801 8011     	       rita.veres@aonhewitt.com
Didier Burgaud       	     +33 1 55 63 23 70 	        didier.burgaud@aonhewitt.com
Brenda Broad	              +31 634 000 622	           brenda.broad@aonhewitt.com




© 2011 Aon Hewitt
www.aonhewitt.com

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Leadership & Engagement - Aon Hewitt

  • 1. Leadership and Engagement The Impact of Leadership on Employee Motivation Engaged leaders engage others How do they achieve this? Aon Hewitt analysis of companies with strong Senior leaders in high-performing organisations financial results shows that one distinguishing are perceived as more effective by middle managers feature is the quality of their senior management. In and employees and it’s not because they are less particular we see that senior management’s own levels demanding. They set clearer and more aggressive of engagement are high and their ability to engage goals, address issues of underperformance and others in the organisation is strong. work at ensuring that everyone understands organisational strategy and goals. The chart below (Figure 1) shows that 95% of senior leaders in high performing organisations are engaged. Additionally, senior leaders in these high-performing This compares with 70% of senior leaders in other organisations are seen to be open, honest and organisations. trustworthy and able to create excitement for the future. This chart also shows that the gap between high-performing organisations and others widens Our research also reveals that senior leaders at lower organisation levels demonstrating that in high-performing organisations are known for senior leaders in high-performing organisations do the time they spend nurturing and developing a better job of engaging others, particularly middle future talent. management levels. Figure 1: Engagement by Level In Organisation 100% 90% 80% 70% Engagement 60% Best Companies 50% 40% Other Companies 30% 20% Source: Aon Hewitt Global Best Employer 10% Research 0% Senior Report to Senior Middle Team Leader Professional Team Member management Management Management
  • 2. Case Study A Case Study B Aon Hewitt compared leaders’ 360 degree feedback We compared individual survey items of high scores with engagement study data to understand engagement business areas with low engagement the specific behaviours leaders were demonstrating areas and identified that the biggest differences in highly engaged business units. were in the following leadership areas: ▪▪ Inspiration We discovered that leaders who took the following actions had the highest engagement in their ▪▪ Motivation businesses, 14 % points higher than other areas: ▪▪ Acting ethically, honestly ▪▪ Living and encouraging the company’s ▪▪ Providing development values—role modeling what the company believes is important in how people work We helped the organisation to focus on four specific together areas: ▪▪ Focusing on strategy and implementation— ▪▪ More open, transparent and candid showing that they know how to run the business communication ▪▪ Investing in people to build their skills ▪▪ Creating better messaging between Senior ▪▪ Overcoming and removing barriers that prevent Leadership and employees change from happening ▪▪ Improving clear and granular feedback regarding performance, pay and promotions ▪▪ Better education of employees about opportunities within the organisation The impact on business results The knock-on impact on business results is also compelling. When satisfaction Engagement scores Total Shareholder with senior leadership also change Return (TSR) increases changes from from 47% to 72% from 1% to 19% 32% to 76% Contacts If you would like more information, please contact either of the following consultants: Jenny Merry +44 (0) 1727 888395 jenny.merry@aonhewitt.com Rita Veres +36 1 801 8011 rita.veres@aonhewitt.com Didier Burgaud +33 1 55 63 23 70 didier.burgaud@aonhewitt.com Brenda Broad +31 634 000 622 brenda.broad@aonhewitt.com © 2011 Aon Hewitt www.aonhewitt.com