The business case Toolkit for Career Development

Three key reasons to invest in career development

“Lack of future career opportunity” is consistently the # 1 driver of employee turnover, CEB Global Labour Market Survey (2011 -2017)

What is employee turnover costing our business? Costs include lost productivity, declined customer service, recruitment costs, onboarding/training costs, loss of institutional knowledge, flow on decline in team engagement and retention Up to 213 percent of annual salary for senior management positions (CAP study, 2012) Approximately 150% of annual salary for a mid-level employee (TLNT study, 2015) 48-59% for front-line sales and support roles (Willis Towers Watson, 2016) Job Level Financial cost of turnover (% of annual salary) Turnover rate (%) Number of employees Average salary Estimated cost Senior Management/ Executive 74% - 213% Professional 60% - 150% Front line: customer service, sales, business support 48% - 59% TOTAL

Career opportunities is consistently a top three driver of employee engagement -Aon Hewitt, Global Employee Engagement Trends (2011, 2015, 2017) -Willis Towers Watson, Global Workforce Studies (2016) Aon Hewitt, 2014 Aon Hewitt, 2017

Organisations with high employee engagement report on average: What impact could improved employee engagement have on our business results? 28% 26% 23% 19% Increase in operating income (Towers Watson, 2006) Profit growth (Aon Hewitt, 2011) Higher revenue per employee (Taleo Research, 2009) Earnings per Share growth (Towers Watson, 2006) Metric Example* Our current state Our possibilities? Career Satisfaction (+10%) x% ? Employee Engagement X% Customer Satisfaction (+4%) Business Results (+9%) *In one major global bank a 10% increase in employee engagement correlated with a 10% increase in business results (Willis Towers Watson, 2017)

Career opportunities is a top attraction driver for employees (Towers Watson, Global Workforce Study 2014, 2016) Towers Watson, 2014

Sample objectives for the career development program Engagement Retention Talent Improve employee engagement by increasing number of employees/leaders satisfied with their career and development opportunities Improve retention of: high potential talent leaders female leaders Improve ability to fill key positions internally/ placement rate of internal candidates Improve attraction of external employees (time to fill and offer acceptance rates of external candidates)

Research References (in order of citation) CEB Global Talent Monitor (2017), https://www.cebglobal.com/content/dam/cebglobal/us/EN/top-insights/global-talent- monitor/pdfs/workforce-trends.pdf?pageRequestId=1cd9adb6-856d-4278-9c2d-5f108e35318e There are significant business costs to replacing employees (CAP, 2012) https://www.americanprogress.org/wp- content/uploads/2012/11/CostofTurnover.pdf What was management thinking? The high cost of employee turnover (2015) https://www.tlnt.com/what-was-leadership-thinking- the-shockingly-high-cost-of-employee-turnover/ Willis Towers Watson Global Findings Report (2016) https://www.willistowerswatson.com/en/insights/2016/09/employers-look-to- modernize-the-employee-value-proposition Aon Hewitt trends in global employee engagement report (2014), http://www.aon.com/attachments/human-capital- consulting/2014-trends-in-global-employee-engagement-report.pdf Managing engagement in times of change (2017) http://www.aon.com/attachments/human-capital-consulting/Managing- Engagement-in-Times-of-Change-March2017.pdf The Towers Perrin ISR Employee Engagement Report (2006) Alignment drives employee engagement and productivity (2009) Retrieved from www.taleo.com Putting the business back into employee insights (2017) https://www.towerswatson.com/en- AU/Insights/Newsletters/Global/Sustainably-Engaged/2017/employee-insight-that-drives-business-outcomes Towers Watson Global Workforce Study (2014) https://www.towerswatson.com/en/Insights/IC-Types/Survey-Research- Results/2014/08/the-2014-global-workforce-study