WHAT DO A doubling of shareholder return relative to other organisations, 50 per cent stronger revenue growth and over 100 per cent stronger profit growth all have in common?
WHAT DO A doubling of shareholder return relative to other organisations, 50 per cent stronger revenue growth and over 100 per cent stronger profit growth all have in common?
There’s a strong association between such business performance and the level of engagement required to be a best employer in Australia, according to Jon Williams, managing director of Hewitt Associates, Australia and New Zealand.
“There is a clear and unambiguous link between being a best employer and virtually every measure of company performance, from revenue and profit growth to total shareholder return,” he said.
Speaking on the announcement of the winners of the 2005 Hewitt Best Employers in Australia and New Zealand study, Williams said there are five interrelated factors that create an engaged workforce and that generate significant competitive advantages for Australia’s best employers.
“Highly committed leaders who actually believe and are passionate about the rhetoric of employees being their most important asset,” are critical to being a best employer, he said.
Such organisations, according to Williams, also create a compelling employment experience for their employees, being clear about what they stand for and delivering on that promise to their people.
Furthermore, they connect their people with the organisational strategy, align their people practices with business objectives and inspire and “maintain a passion for outstanding achievement among their people – and in doing so, create a differentiated high performance culture”, Williams said.
High quality, connected, committed and capable HR people are a prerequisite for creating a highly engaged workforce, he added.
“However, good HR on its own is not capable of making a big enough difference to get an organisation to best employer status,” he said.
“Without senior leaders who believe that improved employee engagement adds tangible value to their business and a mechanism to provide real data about what is really going on in the organisation to those leaders, just having great HR is not sufficient.”
With a senior leadership team that does not genuinely believe people can make a significant difference and that has a history of overlooking employees, it can often be easier to just walk away, Williams said.
However, assuming reasonably fertile ground and at least some sympathetic ears among a leadership team, executives usually couldn’t resist compelling data and case studies for too long, he added.
Commenting on the future makings of a best employer, Williams predicted the basics will likely stay the same, but expectations will continue to rise.
“The expectations of some Generation Y folk will be tougher,” he said. “They will be looking for a much more individual and tailored experience, rather than just being required to fit in.”
Paul Bassat, CEO of SEEK, which was recognised for consistent improvement in the study, said that ever since its founding, the company had worked hard to employ people on the basis of values and to promote a results-driven culture.
“We have been clear about what is expected, we have given our staff room to make their own decisions, and we have celebrated successes as a group,” he said.
