Engagement and the Generations HEABC Annual Conference 25 June 2007

1. Engagement and the GenerationsHEABC Annual Conference25 June 2007

2. 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?

3. Where did this researchcome from?

4. What is the Best Employers study all about? • Sponsors • Partners

5. 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. HR Function 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 Employee OpinionSurvey Leadership TeamSurvey Human ResourcesSurvey Employees Executive Team

7. The Top 10 2007 Best Employers

8. Say Stay Strive Consistently speak positively about the organization to co-workers, potential employees and customers. Have an intense desire to continue working for the organization. Exert extra effort and engage in behaviours that contribute to organizational success. Engagement Core measure: Employee engagement • Engaged employees exhibit the following three key behaviours: 77% of employeesare engaged ata typicalBest Employer

9. The benefits of high employee engagement • Studies show that high engagement can lead to: • Attraction & Retention • Lower turnover • More applications for employment • 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 withvalues and workplace culture • Productivity • Less sick time • Fewer lost days due to accidents • High performance culture • Employees more focused on future direction and strategies

10. What have we learned fromthe Study?

11. Canada – 63% BC – 64% Engagement varies widely…

12. Engagement is complex – every sector / organization / region faces different issues

13. Even generational differences vary across sectors / regions / organizations…

14. Generational differences narrow as engagement rises… Engagement Gap = 11% Engagement Gap = 16% Engagement Gap = 17%

15. But overall Millennials and Generation X aren’t happy with today’s employment deal…

16. What did we learn from our generational research?

17. 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. Engagement Drivers • Hewitt’s Engagement Model TM

19. Top 5 Drivers of Employee Engagementby Generation (1) (1) (1) (1) (1) (1) (2) (1) (2) (1) Work Tasks (3) (2) (2) (1) (3) (4) (4) (4) (2) (4) (5) (4) (4) (4) (5) SeniorLeadership Matures – pre-1946 Early/Mid Boomers – 1946 to 1960 Late Boomers – 1961 to 1965 Generation X – 1966 to 1980 Millennials – 1981 and later (5) (5) (5)

20. Special Generational Researchincluded in the 2007 Best Employers Study • Partnered with an academic research team led byDr. 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. Top 5 Personal Work Values Affecting Decision to Join or Stay in Organization (1) (1) (1) (1) (1) (2) (1) (1) (1) (1) AdvancementOpportunity (3) (1) (3) (1) (3) Fully Use Abilities (4) (4) (3) (3) (4) ContinuousLearning (4) (5) (5) (4) (5) Doing Work Consistent with Moral Values Matures – pre-1946 Early/Mid Boomers – 1946 to 1960 Late Boomers – 1961 to 1965 Generation X – 1966 to 1980 Millennials – 1981 and later (5)

22. Similarities / differences across generations

23. 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. 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

25. How can we get better and learn from the Best?

26. Canada – 63% BC – 64% The approach to maintaining and improving engagement depends on where you are…

27. 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. Characteristics of the Best • Leaders who Lead • Managers who Manage • Hire, Promote and Reward for Fit

29. Why is doing this kind of research important to you?

30. Why is doing this kind of researchimportant 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?

31. Your Questions?

32. www.hewitt.com/bestemployerscanada Toll-free 1-877-740-9199 Neil CrawfordHewitt Associates1111 West Georgia StreetVancouver, BC V6E 4M3 604 683 7311 – main604 683 0249 – fax 604 317 5450 – mobile neil.crawford@hewitt.com