Engagement and the Generations HEABC Annual Conference 25 June 2007

2 Hewitt Associates—Private and Confidential 2007 Best Employers in Canada Today's discussion Where did the research come from? What have we learned from the Study? What did we learn from our generational research? How can we get better and learn from the Best? Why is doing this kind of research important to you?

Where did this research come from?

4 Hewitt Associates—Private and Confidential 2007 Best Employers in Canada What is the Best Employers study all about? Sponsors Partners

5 Hewitt Associates—Private and Confidential 2007 Best Employers in Canada What is the Best Employers study all about? Primarily a RESEARCH study Learn what is going on in Canadian workplaces Enable employers to see how they are doing and how they compare to broader trends Extensive multi-year comparative database 300 individual employers representing 750,000 Canadian workers 200,000 unique employee opinions 3,000 unique leader opinions 50+ industry/sector/demographic comparisons The annual list of the 50 Best Employers in Canada is a by-product of the research

6 Hewitt Associates—Private and Confidential 2007 Best Employers in Canada How do organizations participate? At least 400 permanent employees (50 to 399 for BSME Study) At least 3 years in business in Canada Required to complete 3 different survey instruments Minimum number of completed surveys varies by organization size Employees HR Function Executive Team Employee Opinion Survey Human Resources Survey Leadership Team Survey

7 Hewitt Associates—Private and Confidential 2007 Best Employers in Canada The Top Best Employers

8 Hewitt Associates—Private and Confidential 2007 Best Employers in Canada Core measure: Employee engagement Engaged employees exhibit the following three key behaviours: Say Consistently speak positively about the organization to co-workers, potential employees and customers. Stay Have an intense desire to continue working for the organization. Strive Exert extra effort and engage in behaviours that contribute to organizational success. Engagement 77% of employees are engaged at a typical Best Employer

9 Hewitt Associates—Private and Confidential 2007 Best Employers in Canada The benefits of high employee engagement Studies show that high engagement can lead to: Financial Success Greater financial returns Greater growth Greater customer satisfaction High Morale Higher employee morale and sense of accomplishment Greater alignment among leaders and between leaders and employees Greater employee alignment with values and workplace culture Productivity Less sick time Fewer lost days due to accidents High performance culture Employees more focused on future direction and strategies Attraction & Retention Lower turnover More applications for employment

What have we learned from the Study?

11 Hewitt Associates—Private and Confidential 2007 Best Employers in Canada Engagement varies widely… Canada – 63% BC – 64%

12 Hewitt Associates—Private and Confidential 2007 Best Employers in Canada Engagement is complex – every sector / organization / region faces different issues

13 Hewitt Associates—Private and Confidential 2007 Best Employers in Canada Even generational differences vary across sectors / regions / organizations…

14 Hewitt Associates—Private and Confidential 2007 Best Employers in Canada Generational differences narrow as engagement rises… Engagement Gap = 11% Engagement Gap = 16% Engagement Gap = 17%

15 Hewitt Associates—Private and Confidential 2007 Best Employers in Canada But overall Millennials and Generation X aren’t happy with today’s employment deal…

What did we learn from our generational research?

17 Hewitt Associates—Private and Confidential 2007 Best Employers in Canada What is important to Canadian workers? Two perspectives drawn from Best Employer research: What is important for employee engagement? What is important when choosing to join or stay with an organization? Are they the same / different? Personal Work Values = Attraction & Retention Engagement = Attraction, Retention & Motivation

18 Hewitt Associates—Private and Confidential 2007 Best Employers in Canada Engagement Drivers Hewitt’s Engagement Model TM

19 Hewitt Associates—Private and Confidential 2007 Best Employers in Canada Top 5 Drivers of Employee Engagement by Generation MaturesEarly/Mid Boomers Late Boomers Gen XMillennials Career Opportunities Managing Performance Recognition Career Opportunities Organizational Reputation Recognition Career Opportunities Work Tasks People Practices Organizational Reputation Recognition People Practices Work Processes Organizational Reputation Senior Leadership Work Processes (1) (2) (4) (5) (1) (3) (4) (1) (4) (1) (3) (4) (1) (2) (5) Matures – pre-1946 Early/Mid Boomers – 1946 to 1960 Late Boomers – 1961 to 1965 Generation X – 1966 to 1980 Millennials – 1981 and later Senior Leadership Work Tasks

20 Hewitt Associates—Private and Confidential 2007 Best Employers in Canada Special Generational Research included in the 2007 Best Employers Study Partnered with an academic research team led by Dr. Linda Duxbury General Work Opinions – level of agreement with a series of statements about the work environment Personal Work Values – work environment factors that are important for choosing to join or stay with an organization Employee responses were segmented by generation Ranked to identify differences in work opinions and personal work values of the generations and other sub-groups

21 Hewitt Associates—Private and Confidential 2007 Best Employers in Canada Top 5 Personal Work Values Affecting Decision to Join or Stay in Organization MaturesEarly/Mid Boomers Late Boomers Gen XMillennials Supportive Supervisor Interesting Work Good Salary Access to Information Interesting Work Good Salary Interesting Work Good Salary Supportive Supervisor Advancement Opportunity Fully Use Abilities Good Salary Work / Life Balance Supportive Supervisor Work / Life Balance Access to Information Continuous Learning Doing Work Consistent with Moral Values (1) (3) (5) (1) (4) (1) (4) (5) (1) (3) (5) (1) (2) (3) (4) Matures – pre-1946 Early/Mid Boomers – 1946 to 1960 Late Boomers – 1961 to 1965 Generation X – 1966 to 1980 Millennials – 1981 and later Doing Work Consistent with Moral Values Fully Use Abilities Advancement Opportunity Continuous Learning

22 Hewitt Associates—Private and Confidential 2007 Best Employers in Canada Similarities / differences across generations Similar Personal Work Values Supportive Supervisor Interesting Work Work / Life Balance (4) Good Salary (4) Similar Engagement Drivers Career Opportunities Managing Performance Recognition Organizational Reputation Different Personal Work Values Mature (pre-1946) Fully Use Abilities Doing Work Consistent with Moral Values Millennial (1981+) Advancement Opportunity Continuous Learning (Millennial / Gen X) Different Engagement Drivers Mature (pre-1946) Senior Leadership Millennial (1981+) Work Tasks

23 Hewitt Associates—Private and Confidential 2007 Best Employers in Canada Conclusions from broad research Significant common ground across engagement and work values research: Manager/supervisors make or break the organization Interesting work is important to everyone People want to work for one of the “best” Every organization needs to define its deal regarding work / life balance

24 Hewitt Associates—Private and Confidential 2007 Best Employers in Canada Conclusions from broad research Important differences that can be exploited Matures want to be valued as full contributors rather than people coasting toward the end of their work-life –They want to fully use their abilities –They want to do work that has integrity –They want to work for leaders who are effective, provide clear direction for the future and are trustworthy Millennials want to learn and have opportunities for advancement – and they really want to enjoy the specific work they do

How can we get better and learn from the Best?

26 Hewitt Associates—Private and Confidential 2007 Best Employers in Canada The approach to maintaining and improving engagement depends on where you are… Canada – 63% BC – 64%

27 Hewitt Associates—Private and Confidential 2007 Best Employers in Canada Building or maintaining high engagement Regardless of where you start, building and maintaining high engagement: Is a core organizational strategy, not an HR initiative Is an never ending journey Requires a well planned and executed approach Requires you communicate your intent

28 Hewitt Associates—Private and Confidential 2007 Best Employers in Canada Characteristics of the Best Leaders who Lead Managers who Manage Hire, Promote and Reward for Fit

Why is doing this kind of research important to you?

30 Hewitt Associates—Private and Confidential 2007 Best Employers in Canada Why is doing this kind of research important to you? Do you know your level of engagement? Do you know where your engagement hot spots are? Do you know what the personal work values are amongst your employee population? What about your target recruitment populations? Do your employees’ personal work values fit with your employment deal?

Your Questions?

Toll-free Neil Crawford Hewitt Associates 1111 West Georgia Street Vancouver, BC V6E 4M – main – fax – mobile