Career Choices for the Present Times
The four career choices analyzed here are entrepreneurship, freelancing, sabbaticals, and regular full time employment. While all of these are attractive to different individuals, the bottom line for any career choice is how well you are able to support yourself and your families. In addition, feet on the ground approach is preferable as many career […]
The Problem with ESOP’s
Employee Stock Option Plans (ESOP’s) are one of the most popular ways in which modern startup companies reward their early employees. In Silicon Valley, many companies such as Google and Facebook have used Employee Stock Option Plans (ESOP’s) to lure the best talent from the market. Since these companies have become very successful, there are […]
Student Loans and the Rising Cost of Useless Degrees
The baby boomers were the first generation to truly experience affluence. However, they were also the first generation to truly experience stress and burnout. The boredom of working at the same jobs year after year had taken a toll on these people. They had a dream to give their children better lives than they got. […]
Entrepreneurial Ecosystem
What is an Entrepreneurial Ecosystem? All of us are endowed with skills, abilities, and capabilities. However, the reason why some of us are so successful whereas others languish is mainly due to the way in which these traits are nurtured, encouraged, and enabled. For instance, we need to go to the right schools, have supportive […]
Entrpreneurial Ecosystem
What is an Entrepreneurial Ecosystem? All of us are endowed with skills, abilities, and capabilities. However, the reason why some of us are so successful whereas others languish is mainly due to the way in which these traits are nurtured, encouraged, and enabled. For instance, we need to go to the right schools, have supportive […]
Headquartered in Lincolnshire, Illinois in United States, Hewitt Associates was a global management consulting and HR outsourcing firm. Established in 1940, the firm delivered a wide range of HR and management services to the companies across the world to in managing their Human resource operations, policies and procedures, enhancing the level of employee engagement and involvement and improving their overall management.
The firm later on in 2010 was purchased by Aon Corporation and since then the new subsidiary of Aon Group is known as Aon Hewitt.
Hewitt conducted a research on employee engagement in year 2007 and published a report mentioning that the best employers have earned their ranks and reputation because of high level of employee engagement. The study revealed that more than 77 percent of the employees were actively engaged in highly productive organizations as compared with 50 percent at other organizations.
Hewitt included almost 10,000 employees working in Canada in more than 120 organizations in the survey and revealed some specific traits of the best employers. These traits included the lower turnover rates, better financial platform and ease of attracting new talent. The consulting firm revealed the fact that employee engagement is not only about creating loyal or satisfied employees but it extends to the state of intellectual and emotional involvement and a strong sense of commitment of the workforce.
The best employers have an easy access to the best industry talent. Because of their reputation, they can attract more than 100 applications for each job posted whereas an average company doesn’t receive more than 30 applications for a particular job.
This is the ratio when a job is advertised externally. When it comes to employee references, they have ample choices and therefore, have a strict internal employee reference policy; whereas, this is hardly the case with average employers. They may have choices but the number of references is very low.
It was found out that the rate of voluntary employee turnover rate for full time employees was approximately 9 percent with the best employers. When it comes to part-time or home-based jobs, the employee turnover rate was around22 percent.
An average organization faces approximately 13 percent voluntary employee turnover annually for full time staff whereas for home-based or part-time staff the percentages goes up to 34 percent.
Higher employee engagement levels in best companies benefit their financial status ultimately. When employees are completely engaged in their jobs, they are more productive. They are able to fulfill all customer requirements plus handle all their queries and issues with complete enthusiasm. This in turn increases the customer loyalty towards the organization.
The study revealed that the annual growth rate in service and sales experienced by the best employers was 13 percent approximately whereas average employers experienced an increase of only 5 percent in their net sales.
Although the study was conducted in year 2007, but it still holds its effectiveness in the current scenario also. It has been a challenge in front of the managers to increase the employee engagement levels and take their organization to the next level.
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