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Resource for the Latest

Trends Affecting Your

Workforce Plan

Global Workforce Insights: New Zealand

Part of the CHRO Insight Series

CEB Corporate Leadership Council™

Third Quarter 2015

CONFIDENTIALITY AND INTELLECTUAL PROPERTY

These materials have been prepared by The Corporate Executive Board Company and its affiliates (CEB) for the exclusive and individual use of our member companies. These materials contain valuable confidential and proprietary information belonging to CEB and they may not be shared with any third party (including independent contractors and consultants) without the prior approval of CEB. CEB retains any and all intellectual property rights in these materials and requires retention of the copyright mark on all pages reproduced.

LEGAL CAVEAT

CEB is not able to guarantee the accuracy of the information or analysis contained in these materials. Furthermore, CEB is not engaged in rendering legal, accounting, or any other professional services. CEB specifically disclaims liability for any damages, claims or losses that may arise from a) any errors or omissions in these materials, whether caused by CEB or its sources, or b) reliance upon any recommendation made by CEB.

CEB Talent Management Labs Group LeaderConrad Schmidt

Research DirectorMark Little

Research ManagerLindsey Walsh

Research ScientistNeha Jain

Senior Research AnalystSajal Jain

Research AnalystsNamrata RainaNikita Ojha

2

CEB Corporate Leadership CouncilManaging DirectorMark Van Buren

Director Matt Dudek

Associate DirectorMarianne Stengel

Research AnalystNitin Krishna Menon

© 2015 The Corporate Executive Board Company. All Rights Reserved. - CEB3244315SYN

TABLE OF CONTENTS

3© 2015 The Corporate Executive Board Company. All Rights Reserved. - CEB3244315SYN

Executive Summary 4

Survey Participant Demographics 6

Business Need in the New Work Environment 8

Employee Engagement 11

Discretionary Effort Trends 12

Intent to Stay Trends 14

Engagement Recap 18

Employment Value Proposition 19

Satisfaction with EVP Categories 21

Impact of EVP on Engagement 23

Rewards Trends 25

Opportunity Trends 28

Organization Trends 31

People Trends 33

Work Trends 35

Recommendations and Resources 37

Appendix 39

EXECUTIVE SUMMARY

Employee Engagement

21.7% of employees in New Zealand report high discretionary effort and 34.5% report high intent to stay, which means that engagement levels in New Zealand are mixed. To maximize employee engagement, leaders in New Zealand should focus on improving employee satisfaction with key areas of the EVP.

Trends in employee discretionary effort and intent to stay

Employment Value Proposition

On average, employees in New Zealand are least likely to be satisfied with EVP attributes related to rewards. When considering what they want in a potential employer, the rewards attribute most important for employees in New Zealand is Compensation.

Trends in employee satisfaction with Work, Opportunity, Rewards, Organization, and People

4

Report Topics Topic Description


Key Finding

Departure View: Use CEB’s exit survey to receive feedback on areas of dissatisfaction. Employment Value Proposition Design Center: Design a compelling EVP with this online, data-based tool that presents data from over 100,000 employees. Maximize the Business Impact of Higher Intent to Stay: Intent to stay increased by 3.3 percentage points in North America and by 5.6 percentage points in Australia and New Zealand.

Making the Most of Compensation Changes: Understand how to effectively roll out compensation changes to employees for maximum impact. Increasing the Impact of Pay Through Manager Involvement: Engage managers in pay activities to improve compensation satisfaction. Improve Pay Perceptions by Customizing Communications: Organizations can significantly improve employee pay perceptions when pay communication strategies specifically target employees by their age (1.25x greater), performance (1.04x greater), and region (1.00x greater).

Recommended Resources

Discretionary effort levels are high and intent to stay levels are neutral among employees in New Zealand. Watch out for the negative impact of dissatisfaction with Rewards on discretionary effort and retention.

https://www.executiveboard.com/member/corporate-leadership-council/decision_supportcenter/departure-view-clc-hr-s-exit-survey-resource.html

https://www.executiveboard.com/member/corporate-leadership-council/benchmarks/metric/employment-value-proposition-design-center.html

https://www.executiveboard.com/member/corporate-leadership-council/research/report/hr-news-report/15/hr-news-report--q2-2015/employee-engagement-and-retention.html

https://www.executiveboard.com/member/corporate-leadership-council/research/report/hr-news-report/15/hr-news-report--q2-2015/employee-engagement-and-retention.html

https://www.executiveboard.com/content/corporate-leadership-council/us/en/member/research/executive_summary/11/making-the-most-of-compensation-changes.html

https://www.executiveboard.com/content/corporate-leadership-council/us/en/member/research/executive_summary/10/increasing-the-impact-of-pay-through-manager-involvement.html

https://www.executiveboard.com/content/corporate-leadership-council/us/en/member/research/executive_summary/10/increasing-the-impact-of-pay-through-manager-involvement.html

https://clc.executiveboard.com/Members/ResearchAndTools/Abstract.aspx?cid=101283635


5

Current State of Employee Engagement Satisfaction with the Employment Value Proposition

Engagement among employees in New Zealand is mixed.

Impact of EVP Satisfaction on Employee Engagement

The 38 attributes of the employment value proposition fall into five categories. Employees in New Zealand are least likely to be satisfied with those related to rewards.

Most Important EVP DriversNot all aspects of the EVP are equally important. The attributes below are those most frequently selected by employees in New Zealand as reasons to join or leave an organization.

WHAT SHOULD LEADERS IN NEW ZEALAND KNOW TO BETTER MANAGE THEIR TEAMS?


Employees in New Zealand who are satisfied with their EVP are more likely to report high discretionary effort and intent to stay.

New Zealand

International Average

0%

10%

20%

30%

40%

50%

60%

Hig

h D

isc

reti

on

ary

Effo

rt

0% 10% 20% 30% 40% 50% 60%

High Intent to Stay

Rewards

• Compensation

Opportunity

• Stability

• Future Career Opportunity

• Development Opportunity

Organization

• Respect

• Ethics/Integrity

People

• Manager Quality

• People Management

Work

• Location

• Work-Life Balance

• Job-Interests Alignment

• Recognition

WHO PARTICIPATED IN THE SURVEY?


NOTE: Totals may not equal 100% due to rounding.

NOTE: The maximum margin of error for the analyses reported in this deck is plus/minus 5 percentage points at 95% confidence.

Industry New Zealand All Employees

Aerospace 0.8% 0.8%

Construction 5.6% 4.9%

Consumer Goods 3.4% 3.3%

Education 12.4% 9.3%

Financial Services and Insurance 6.0% 6.9%

Government 7.2% 7.1%

Health Care 11.8% 6.8%

Leisure and Hospitality 3.6% 2.5%

Manufacturing 6.6% 10.9%

Media 1.4% 1.9%

Nonprofit 3.2% 2.2%

Oil, Gas, and Mining 0.8% 2.0%

Pharmaceuticals 0.4% 1.3%

Professional Services 8.6% 9.8%

Real Estate 1.2% 1.8%

Restaurant 0.6% 1.8%

Retail 9.2% 8.0%

Technology 9.8% 10.5%

Travel and Transportation 5.0% 4.3%

Utilities 2.2% 4.1%

Survey Period New Zealand All Employees

Q2 2015 502 19,741

Function New Zealand All Employees

Administrative support 9.0% 10.4%

Communications 1.6% 2.3%

Corporate 2.6% 4.1%

Customer Contact 7.6% 5.9%

Educator 8.4% 3.4%

Finance and Accounting 6.6% 7.6%

Human Resources 5.2% 5.2%

IT 9.2% 11.3%

Manufacturing 3.6% 5.8%

Marketing and Market Research 0.6% 1.8%

Operations 16.1% 10.9%

Procurement 0.6% 1.7%

Quality 1.6% 2.6%

R&D and Engineering 7.2% 8.5%

Retail 5.8% 4.8%

Sales 7.0% 6.4%

Supply Chain and Logistics 2.2% 2.2%

Technician 5.4% 5.1%

Employee Level New Zealand All Employees

Junior level 39.6% 36.8%

Mid level 56.2% 55.0%

Senior level 4.3% 8.2%

WHICH COUNTRIES MAKE UP THE INTERNATIONAL AVERAGE IN THIS REPORT?

© 2015 The Corporate Executive Board Company. All Rights Reserved. - CEB3244315SYN 7

NOTE: International averages are computed from a straight mean of all survey respondents.

Country All Employees

Australia 5.1%

Belgium 2.5%

Brazil 3.0%

Canada 5.1%

China 5.0%

Denmark 2.5%

Finland 2.5%

France 2.5%

Germany 6.3%

India 5.1%

Indonesia 2.6%

Italy 2.5%

Japan 2.5%

Malaysia 2.5%

Country All Employees

Mexico 3.0%

Netherlands 2.5%

New Zealand 2.5%

Norway 2.5%

Philippines 2.5%

Russian Federation 2.5%

Singapore 2.5%

South Africa 2.5%

South Korea 2.5%

Spain 2.5%

Sweden 2.5%

Switzerland 2.6%

United Kingdom 7.6%

United States 11.6%

0% 1-10% 11-20% 21-30% More than 30%

5%

39%

27%

15% 14%

WHAT DO LEADERS NEED FROM EMPLOYEES TO ACHIEVE BUSINESS GOALS?

Percentage Improvement in Employee Productivity Needed to Achieve Current Business GoalsGlobal Executives

Percentage of Business Leaders Who Agree That Employee Engagement Is Critical to Achieving Business Objectives

Source: CEB analysis.

.

Realities of the new work environment have executives needing more from their current teams.

On average, global

executives believe they will

need a 20% improvement in

performance over and above

current levels to achieve

goals.

Seventy percent of business

leaders believe engagement

is critical to their business.

CEB analysis on drivers of

employee performance

shows engagement

accounts for 46% of

variation in performance. Percentage of Variation in Individual Performance Explained by Engagement Versus Other Drivers of Performance1

54%Other Drivers of Individual Performance

46%Engagement30%

Neutral/Disagree 70%

Agree

Average = 20% Improvement

n = 2,046

1Variation explained is a measure of the proportion of changes in performance that can be attributed to engagement versus other drivers of performance. The amount of variation in performance explained is determined by conducting a MANOVA analysis.

n = 3,954


WHY IS EMPLOYEE ENGAGEMENT IMPORTANT?

Select Implications of theNew Work Environment

Required Employee Behaviors The Benefits of Engagement

More Frequent Change

Interdependent Work

Adapt toChange

Work Collaboratively

High performers use their knowledge of the organization and their role to adjust quickly. They are proactive and willing to move projects and priorities forward.

High performers are good collaborators who work well with and through others. They use their technical expertise to influence and contribute to collaborative projects.

Highly engaged employees are more willing to…

• Accept a role change • Accept a job move• Actively find ways to improve and expand their skills• Proactively suggest opportunities for improvement• Accept and support changes the company makes, rather

than complain about the change

Highly engaged employees…

• Are more easily retained with the organization, which in turn enables them to develop greater knowledge of the business

• Put forth more discretionary effort, meaning they are more willing to go above and beyond to help others.

Source: CEB analysis.


HOW DOES EVP SATISFACTION INFLUENCE ORGANIZATIONAL PERFORMANCE?

Executives should focus on the most important aspects of the employment value proposition (EVP) to promote behaviors that best enable performance.

EVP Satisfaction

Employees who are satisfied with the most important aspects of the employment value proposition show higher levels of discretionary effort and intent to stay.

Organizational Performance

Discretionary Effort

An employee’s willingness to go above and beyond the call of duty, such as helping others with heavy workloads, volunteering for additional duties, and looking for ways to perform the job more effectively

Intent to Stay

The employee’s desire to stay with the organization, based on whether he or she intends to look for a new job within a year, frequently thinks of quitting, is actively looking for a job, or has begun to take tangible steps such as placing phone calls or sending out résumés

Individual Performance

Retention

Employee Engagement


ROADMAP


Employee Engagement

Recommendations and Resources

• Understand the status of discretionary effort in New Zealand today.

• Understand the status of intent to stay in New Zealand today.

• Identify engagement risks among key segments of the labor force in New Zealand.

• How can executives improve engagement on their teams?

• What is the employment value proposition and why does it matter?

• What aspects are most important and are employees in New Zealand satisfied with them?

• What next steps should an HR executive take?

• What resources does CEB have to help?


HOW MANY EMPLOYEES REPORT GOING ABOVE AND BEYOND?

Source: CEB 2009-2015 Global Labor Market Survey.

Percentage of Employees Reporting High Levels of Discretionary EffortGlobal Employed Labor Force

Discretionary Effort

An employee’s willingness to go above and beyond the call of duty, such as helping others with heavy workloads, volunteering for additional duties, and looking for ways to perform the job more effectively

Few employees report truly low discretionary effort, so executives should focus on shifting individuals from neutral or somewhat high to high.

NOTE: Discretionary effort levels are calculated from a battery of five questions posed to survey respondents. These answers are combined and the respondents with an average score of 6.0 or above on a 7-point scale are considered to report high discretionary effort at work.


Q2 2015 n: 19,741 all employees; 502 employees in New Zealand.

Q2 2015 n: 502 employees in New Zealand.

21.7% of employees in New

Zealand report showing high

discretionary effort, and

another 46.8% are leaning

towards high.

Discretionary effort levels in

New Zealand have

significantly increased over

the last quarter.

Q2 2015

Distribution of Employees in New Zealand by Level of Discretionary EffortEmployed Labor Force in New Zealand | Q2 2015

New Zealand

21.7%


18.8%

HOW DO DISCRETIONARY EFFORT LEVELS COMPARE ACROSS REGIONS?

13


NOTE: : A green or red box indicates a statistically significant positive or negative change at the 95% confidence level, whereas a dash indicates that the change was not statistically significant.


Percentage of Employees Globally Reporting High Levels of Discretionary Effort by RegionGlobal Employed Labor Force | Q2 2015

Year-Over-Year

Change


HOW MANY EMPLOYEES REPORT STRONG INTENT TO STAY WITH THEIR JOBS?

Percentage of Employees Globally with High and Low Levels of Intent to StayGlobal Employed Labor Force

Intent to Stay

The employee’s desire to stay with the organization, based on whether he or she intends to look for a new job within a year, frequently thinks of quitting, is actively looking for a job, or has begun to take tangible steps, such as placing phone calls or sending out résumés

Productivity research shows individual performance improves with tenure. Low intent to stay can lead to retention challenges.

NOTE: Intent to stay levels are calculated from a battery of four questions posed to survey respondents. These answers are combined and the respondents with an average score of 6.0 or above on a 7-point scale are considered to report high intent to stay at work.






Zealand report low intent to

stay, and another 9.0% are

leaning towards low.

The percentage of

employees in New Zealand

reporting high intent to stay

has not significantly changed

over the last year.

High Intent to Stay Q2 2015

Low Intent to Stay Q2 2015

Distribution of Employees in New Zealand by Level of Intent to StayEmployed Labor Force in New Zealand | Q2 2015

New Zealand

34.5%


36.2%

New Zealand

9.2%


9.2%

HOW DOES EMPLOYEE INTENT TO STAY COMPARE ACROSS REGIONS?

15


NOTE: : A green or red box indicates a statistically significant positive or negative change at the 95% confidence level, whereas a dash indicates that the change was not statistically significant.


Percentage of Employees Globally with High and Low Levels of Intent to Stay by RegionGlobal Employed Labor Force | Q2 2015

Year-Over-Year

Change

Year-Over-Year

Change


HOW MANY EMPLOYEES WHO GO ABOVE AND BEYOND PLAN TO STAY?

Distribution of Intent to Stay for Employees in New Zealand

Given that only 21.7% of employees in New Zealand display high levels of discretionary effort, leaders must focus on retaining those who do.

Distribution of Intent to Stay for All Employees with High Discretionary Effort | Q2 2015

Source: CEB 2015 Global Labor Market Survey.


Q2 2015 n: 109 high discretionary effort employees in New Zealand.

Q2 2015 n: 3,707 all high discretionary effort employees.


Distribution of Intent to Stay for Employees with High Discretionary Effort New Zealand Employed Labor Force | Q2 2015


Zealand who go above and

beyond at work intend to

stay with their employers.

with High Discretionary Effort | Q2 2015

1

WHICH TALENT SUBSETS IN NEW ZEALAND ARE AT HIGHER RISK OF LEAVING?

Low Risk: Employee Sub-Groups with a Higher Percentage of Employees with High Intent to Stay Employed Labor Force in New Zealand | Q3 2014-Q2 2015

Intent to Stay

The employee’s desire to stay with the organization, based on whether he or she intends to look for a new job within a year, frequently thinks of quitting, is actively looking for a job, or has begun to take tangible steps, such as placing phone calls or sending out résumés

Specific demographic groups, such as those with a certain level of education, can be a higher retention risk than other segments.

• See the Appendix for intent

to stay information for

different segments of New

Zealand’s employee

population.

Q3 2014-Q2 2015 n: 2,009 employees in New Zealand.


High Risk: Employee Sub-Groups with a Lower Percentage of Employees with High Intent to Stay Employed Labor Force in New Zealand | Q3 2014-Q2 2015

• Age: 50-70

• Performance Level: High Potential

• Age: 18-29

• Education: Completed MBA

• Organization Size: 1,001 to 5,000


HOW DOES EMPLOYEE ENGAGEMENT COMPARE ACROSS REGIONS?

Percentage of Employees with High Discretionary Effort and Intent to Stay by Region Global Employed Labor Force | Q2 2015




Above Average DiscretionaryEffort Only

Above Average on BothAspects of Engagement

Above Average Intentto Stay Only

Below Average on BothAspects of Engagement

New ZealandAustralia

Belgium and the Netherlands

Brazil

Canada

China

FranceGermany

India

IndonesiaItaly

Japan

Malaysia and the Philippines

Mexico

Nordic Region

RussiaSingapore

South Africa

South Korea

Spain

SwitzerlandUnited Kingdom

United States

0%

10%

20%

30%

40%

Pe

rcen

tag

e o

f Em

plo

yees

Rep

ort

ing

Hig

h D

iscr

etio

nar

y E

ffort

10% 20% 30% 40% 50%

Percentage of Employees Reporting High Intent to Stay

ROADMAP


Employee Engagement











WHY IS AN EVP IMPORTANT?

EVP Framework and Benefits of a Differentiated EVP

EVP

The set of attributes that the labor market and employees perceive as the value they gain through employment in the organization

REWARDS■ Compensation

■ Health Benefits

■ Retirement Benefits

■ Vacation

OPPORTUNITY■ Development

Opportunity■ Future Career

Opportunity■ Growth Rate■ Meritocracy■ Stability

ORGANIZATION■ Customer Prestige

■ Empowerment

■ Environmental Responsibility

■ Ethics/Integrity

■ Formality of Work Environment

■ ‘Great Employer’Recognition

■ Inclusion/Diversity

■ Industry Desirability

■ Market Position

■ Product or Service Quality

■ Respect

■ Risk Taking

■ Organization Size

■ Social Responsibility

■ Technology Level

■ Well-Known Product Brand

PEOPLE■ Camaraderie■ Collegial Work

Environment■ Coworker Quality■ Manager Quality■ People Management■ Senior Leadership

Reputation

WORK■ Business Travel■ Innovative Work■ Job–Interests

Alignment■ Level of Impact ■ Location■ Recognition■ Work–Life Balance

Attraction Benefits

■Reduces the compensation premium needed to hire by 50%

■Enables organizations to reach deeper into the labor market to attract passive candidates

Retention Benefits

■Decreases annual employee turnover by 69%

■Increases new hire commitment by 29%

An effective employment value proposition (EVP) allows organizations to source more deeply within the labor market by attracting passive candidates.

CEB’s EVP model consists

of 38 attributes validated to

most significantly drive

attraction and retention.

When candidates in the

labor market view an

organization’s EVP as

attractive, they demand less

of a compensation premium

when deciding to join.

Organizations with the most

effective EVP delivery have

employees who display

lower levels of turnover than

less-effective organizations.


WHAT PORTION OF EMPLOYEES IN NEW ZEALAND ARE SATISFIED WITH THE EVP CATEGORIES?

Percentage of Employees in New Zealand Satisfied with EVP Categories OverallGlobal Employed Labor Force | Q2 2015

Satisfaction among employees in New Zealand is below average for EVP attributes related to rewards.


Q2 2015 n: 19,741 all employees 502 employees in New Zealand.


WHERE DOES SATISFACTION DIFFER FROM OTHER REGIONS?


NOTE: Green or red highlighting indicates that satisfaction in New Zealand differs from the international average by 4.0% or more.



Percentage of Employees in New Zealand Satisfied with EVP AttributesGlobal Employed Labor Force | Q2 2015

Rewards

Opportunity

Organization

People

Work

Attribute New ZealandInternational

AverageAttribute New Zealand


Vacation 35.7% 43.2% Health Benefits 23.3% 32.8%

Compensation 25.7% 30.7% Retirement Benefits 18.5% 29.2%

Stability 46.0% 45.5% Future Career Opportunity 27.3% 28.0%

Growth Rate 30.7% 31.7% Meritocracy 22.5% 25.2%

Development Opportunity 29.3% 30.3%

Product or Service Quality 48.0% 46.6% Inclusion/Diversity 35.7% 34.5%

Well-Known Product Brand 42.4% 39.9% Technology Level 35.7% 38.0%

Organization Size 42.2% 42.6% Social Responsibility 34.3% 33.5%

Ethics/Integrity 42.2% 38.7% Customer Prestige 32.5% 36.1%

Respect 41.8% 43.1% Empowerment 32.5% 33.0%

Market Position 39.0% 39.4% "Great Employer" Recognition 29.1% 33.1%

Industry Desirability 38.8% 41.0% Environmental Responsibility 26.9% 32.7%

Formality of Work Environment 36.5% 39.2% Risk Taking 24.5% 27.6%

Coworker Quality 44.0% 41.7% Manager Quality 38.0% 36.1%

Camaraderie 42.0% 42.1% Senior Leadership Reputation 36.1% 35.0%

Collegial Work Environment 39.2% 40.5% People Management 27.9% 32.7%

Location 63.1% 57.7% Recognition 33.9% 36.5%

Work-Life Balance 42.6% 41.9% Innovative Work 32.5% 33.0%

Job-Interests Alignment 35.3% 37.6% Business Travel 17.3% 25.8%

Level of Impact 34.1% 33.2%

HOW DOES EVP SATISFACTION IMPACT EMPLOYEE ENGAGEMENT?

An employee who is highly satisfied with the EVP attributes he or she prioritizes when considering a new opportunity is more likely to report high discretionary effort and intent to stay.

Likelihood That an Employee in New Zealand Will Report High Intent to StayEmployed Labor Force in New Zealand | Q3 2014-Q2 2015


Q3 2014-Q2 2015 n: 1,264 employees in New Zealand with lower satisfaction; 745 employees in New Zealand with higher satisfaction.

Employees in New Zealand who are more highly satisfied with the five EVP attributes they prioritize in a

potential employer are twice as likely to report high discretionary effort.

In addition, these people are three times as likely to report high intent

to stay.

23

Q3 2014-Q2 2015 n: 1,264 employees in New Zealand with lower satisfaction; 745 employees in New Zealand with higher satisfaction.

Likelihood That an Employee in New Zealand Will Report High Discretionary EffortEmployed Labor Force in New Zealand | Q3 2014-Q2 2015

1


HOW DO I BETTER UNDERSTAND EMPLOYEE SATISFACTION?

Q3 2014-Q2 2015 n: 2,009 employees in New Zealand (attraction importance); 375 employees in New Zealand (attrition importance) 502 employees in New Zealand (EVP satisfaction).


NOTE: Attribute Importance is based on employee responses about what attracts them to an organization. Attributes are ordered according to their level of satisfaction among employees in New Zealand.

24

Most Important Attributes for Attracting Employees in New ZealandEmployed Labor Force in New Zealand | Q3 2014-Q2 2015

Most Important EVP Drivers for New Zealand

Staff

Other Attributes

Additional Information Page 35Page 33Page 28Page 25 Page 31

Rewards

• Compensation

Opportunity

• Stability



Organization

• Respect


People

• Manager Quality


Work

• Location



• Recognition

• Vacation

• Health Benefits

• Retirement Benefits

• Growth Rate

• Meritocracy

• Product or Service Quality

• Organization Size

• Well-Known Product Brand

• Market Position

• Industry Desirability

• Formality of Work Environment

• Inclusion/Diversity

• Technology Level

• Social Responsibility

• Customer Prestige

• Empowerment

• "Great Employer" Recognition

• Environmental Responsibility

• Risk Taking

• Coworker Quality

• Camaraderie

• Collegial Work Environment

• Senior Leadership Reputation

• Level of Impact

• Innovative Work

• Business Travel

1




HOW HAS SATISFACTION WITH REWARDS ATTRIBUTES CHANGED OVER TIME?


Employees in New Zealand are least satisfied with retirement benefits and most satisfied with vacation.

25

Percentage of Employees in New Zealand Satisfied with Key Rewards Attributes Employed Labor Force in New Zealand

Q2 2015

Important Drivers of Attraction ‒— Rewards

• Compensation

Missing data in the trend line indicates insufficient sample size or that the data was not collected in the period.

HOW DO EMPLOYEES PERCEIVE THE OVERALL VALUE OF THEIR PAY?

Employees in New Zealand have about average perceptions of pay value, fairness, and equity.

Neutral



The Pay Perceptions Index measures employee perceptions of the six aspects of pay listed below and weights them according to their impact on employee intent to stay and discretionary effort.

Financial Value Nonfinancial Value

Organizational Fairness Manager Fairness

Internal Equity External Equity


Above Neutral

Below Neutral

The Pay Perceptions Index measures six aspects of employee perceptions at their organizations—financial value, nonfinancial value, organizational fairness, manager fairness, internal equity, and external equity—weighted by their impact on employee intent to stay and discretionary effort.

26

Pay Perceptions IndexGlobal Employed Labor Force

Q2 2015


Base Pay and Bonus Pay Change Expectations measure the percent change in base or bonus pay an employee expects in the coming year.

HOW MUCH MORE DO EMPLOYEES EXPECT TO EARN IN THE COMING YEAR?

On average, employees in New Zealand expect a 2.7% increase in base pay and a 1.2% increase in bonus pay this year.


Bonus Pay Change ExpectationsGlobal Employed Labor Force



Base Pay Change ExpectationsGlobal Employed Labor Force


Q2 2015

Q2 2015



HOW HAS SATISFACTION WITH OPPORTUNITY ATTRIBUTES CHANGED OVER TIME?


Employees in New Zealand are least satisfied with meritocracy and most satisfied with stability.

28

Percentage of Employees in New Zealand Satisfied with Key Opportunity Attributes Employed Labor Force in New Zealand



Q2 2015


Important Drivers of Attraction ‒— Opportunity

• Stability



HOW LIKELY ARE EMPLOYEES TO EXPERIENCE A CAREER MOMENT?

Career Moments are changes experienced by the employee during a given year. Career moments disrupt an employee’s ability to do his or her job by changing the nature of roles, relationships, work knowledge, and/or benefits.

Of employees in New Zealand who experienced career moments, the greatest proportion experienced significant organizational restructuring or substantial change in one or more senior leaders.

Q2 2015 n: 9,875 all employees (International Average); Past Change - 263 employees in New Zealand; Future Change - 239 employees in New Zealand.


NOTE: A green or red box indicates a statistically significant positive or negative change at the 95% confidence level, whereas a dash indicates that the change was not statistically significant.

29

Percentage of Employees in New Zealand Experiencing Career MomentsGlobal Employed Labor Force | Q2 2015

Career Moments

Percentage of Employees Experiencing a Career Moment in the Past Year

Percentage of New Zealand Employees

Expecting Career Moments in the Next 6

Months


New Zealand

% Y-o-Y Change3.6% –

6.0% –

2.6% –

6.8% –

1.1% –

1.7% –

3.4% –

3.7% –

1.4% –

1.5% –

3.9% ↑

4.3% ↑

(0.7%) –

(3.5%) ↓

(7.5%) –No career moments 31.6%

Significant organizational restructuring 26.6%

Substantial change in one or more senior leaders 22.5%

Significant change in job responsibilities 19.9%

Change in your direct manager 19.0%

Layoffs of team members 23.6%

Significant change in the skills you are using 7.8%

Wage freeze or salary cap 14.0%

Hiring freeze 15.3%

Transfer to an entirely new team 8.6%

Merger/Acquisition 6.6%

Reduction or elimination in variable pay (e.g., bonuses) 9.9%

Reduction in benefits 9.7%

Mandatory unpaid leave 3.8%

New early retirement offer to employees 4.8%

32.7%

31.2%

27.4%

25.1%

22.8%

12.5%

12.5%

10.3%

8.7%

7.6%

6.5%

6.5%

1.9%

0.4%

17.6%

18.0%

19.7%

14.2%

11.3%

13.8%

7.5%

12.6%

7.1%

4.2%

2.9%

5.9%

1.7%

2.5%

30.8% 50.6%

1


HOW DO CAREER MOMENTS AFFECT EMPLOYEE INTENT TO STAY?

Anticipated and actual career moments—indicators of stability— markedly affect intent to stay.


Q2 2015 n: 9,875 all employees.



30

Impact of Experienced Career Moments on Intent to StayGlobal Employed Labor Force | Q2 2015

How to Read this Graph: The shift from experiencing no career moments to experiencing the layoff of a team member decreases the expected percentage of employees with high intent to stay from 46% to 28%, a negative 18 percentage

point impact.

A new early retirement offer

to employees and a

substantial change in one or

more senior leaders have

the least pronounced impact

on intent to stay.

Mandatory unpaid leave and

a reduction in benefits have

the most pronounced

negative effect on intent to

stay.

-1

HOW HAS SATISFACTION WITH ORGANIZATION ATTRIBUTES CHANGED OVER TIME?


Employees in New Zealand are least satisfied with risk taking and most satisfied with product or service quality.

31

Percentage of Employees in New Zealand Satisfied with Key Organization Attributes Employed Labor Force in New Zealand



Q2 2015


Important Drivers of Attraction ‒— Organization

• Respect


Empowerment Barometer Employed individuals’ perspective on the degree to which all employees can recommend ideas, solve problems, execute on strategy, and take on temporary leadership roles

IT Impact IndexEmployed individuals’ ability to use the resources and capabilities officially provided by their employers for collaboration, analysis, and mobility

Misconduct Monitor Employed individuals’ perceptions of ethical behavior and practices within their organization

Risk Tolerance Quotient Employed individuals’ confidence in their ability to take risks to improve business outcomes both personally and for their current organization

Employees in New Zealand have above-average perceptions of the ethical environment at their organization.

Misconduct MonitorGlobal Employed Labor Force | Q2 2015

IT Impact IndexGlobal Employed Labor Force | Q2 2015



DO EMPLOYEES HAVE MORE POSITIVE PERCEPTIONS OF ORGANIZATION ATTRIBUTES?

Risk Tolerance QuotientGlobal Employed Labor Force | Q2 2015

NOTE: Indices are based on a 100-point scale for which 0 is negative and 100 is positive. Higher scores indicate that employees in New Zealand have more positive perceptions of the attribute at their workplace. 32


Empowerment BarometerGlobal Employed Labor Force | Q2 2015


Q2 2015 n: 19,741 all employees; 502 employees in New Zealand. Q2 2015 n: 19,187 all employees; 493 employees in New Zealand.

1

HOW HAS SATISFACTION WITH PEOPLE ATTRIBUTES CHANGED OVER TIME?

Employees in New Zealand are least satisfied with people management and most satisfied with coworker quality.


Percentage of Employees in New Zealand Satisfied with Key People Attributes Employed Labor Force in New Zealand



Q2 2015


Important Drivers of Attraction ‒— People

• Manager Quality


DO EMPLOYEES HAVE MORE POSITIVE PERCEPTIONS OF THEIR COLLEAGUES?

Collaboration Quotient Employed individuals’ perceptions of their ability to access peers both from within their team and across the organization to get help, share information, and source ideas.

Confidence in Senior LeadershipEmployed individuals’ confidence in the senior leadership of their current organization to successfully prepare for the future by setting strategy, developing leaders, and responding to economic and labor market changes.

Manager EffectivenessEmployed individuals’ confidence in their direct manager’s effectiveness at helping employees acquire and apply skills and knowledge, providing appropriate feedback formally and informally, and helping employees improve against development goals.

Employees in New Zealand have average perceptions of their managers and colleagues.

Confidence in Senior Leadership Global Employed Labor Force | Q2 2015


Manager EffectivenessGlobal Employed Labor Force | Q2 2015



Collaboration QuotientGlobal Employed Labor Force | Q2 2015

Q2 2015 n: 19,741 all employees; 502 employees in New Zealand. Q2 2015 n: 18,560 all employees; 473 employees in New Zealand.


1

HOW HAS SATISFACTION WITH WORK ATTRIBUTES CHANGED OVER TIME?

Employees in New Zealand are least satisfied with innovative work and most satisfied with location.


Percentage of Employees in New Zealand Satisfied with Key Work Attributes Employed Labor Force in New Zealand



Q2 2015


Important Drivers of Attraction ‒— Work

• Location



• Recognition

Innovation IndexEmployed individuals’ confidence in their organization’s ability to try new ideas, achieve high levels of innovation, launch successful new initiatives, and rapidly deliver new products or services to the market.

Employees in New Zealand typically have average confidence in their organization's ability to innovate.


HOW DO PERCEPTIONS OF INNOVATION COMPARE?



Innovation IndexGlobal Employed Labor Force | Q2 2015


1

ROADMAP


Employee Engagement


37










Key Finding Resources

Key Resource

Rebuilding Your Employment Brand Understand the importance of brand message credibility (CEB Recruiting Membership Required)

Only an 11% increase in compensation is needed to draw candidates who feel the EVP is attractive, while a 21% premium is needed to lure candidates who feel the EVP is unattractive.

EVP DiagnosticTake a self- or team-diagnostic to determine the current strength of your EVP

EVP Business CasePresent a business case for investing in EVP redesign

The best organizations focus about 80% of their effort on delivering on EVP promises and 20% on defining and managing the EVP—not the other way around.

EVP Delivery ToolIdentify the highest-impact EVP investments to pursue

Ford: Co-Ownership of EVP DevelopmentAlter the typical EVP development process to ensure co-ownership between HR and line executives.

Every 10% improvement in shortlist quality translates to a 5% improvement in quality of hire and 3% improvement in time to fill.

Recruiting Effectiveness Dashboard Identify the most common sources of your highest quality new hires (CEB Recruiting Membership Required)

Sourcing Channel Evaluation Tool Evaluate and optimize your sourcing channel mix (CEB Recruiting Membership Required)

ADDITIONAL INSIGHTS AND RESOURCES ON ATTRACTING CANDIDATES

Key Resource

Key Resource

Key Resource

Key Resource

Key Resource

Key Resource

Key Resource

38

The average organization uses at least 15 sourcing channels, but only 13% of organizations say all of their channels are effective.

Action Toolkit: Employee Referral ProgramBoost the impact and ROI of your current employee referral program.

PNC: Value-Based Sourcing Service Model Prioritize sourcing strategy by cost and value of intelligence gathered.(CEB Recruiting Membership Required)

Key Resource Key Resource

Covering up the organization’s negative attributes during the recruiting process results in new hires who are up to 14% less engaged.

Web 2.0 Topic CenterUnderstand the role of social media (CEB

Recruiting Membership Required)


https://rr.executiveboard.com/Members/Events/EventReplayAbstract.aspx?cid=100225064

https://clc.executiveboard.com/Members/ResearchAndTools/Abstract.aspx?cid=100121266&tc=Proposition&stc=1&loc=wy

https://clc.executiveboard.com/Members/ResearchAndTools/Abstract.aspx?cid=100121266&tc=Proposition&stc=1&loc=wy




https://clc.executiveboard.com/Members/ResearchAndTools/Abstract.aspx?cid=101208023&fs=1&q=%22employment+branding%22&program=&ds=1

https://rr.executiveboard.com/Members/RED/Default.aspx?tc=pipelines&stc=1&loc=wy

https://rr.executiveboard.com/Members/RED/Default.aspx?tc=pipelines&stc=1&loc=wy

https://rr.executiveboard.com/Members/ResearchAndTools/Abstract.aspx?cid=100143156&tc=pipelines&stc=1&loc=wy

https://clc.executiveboard.com/Members/Toolkit/EmployeeReferral.aspx?tc=Proposition&stc=3&loc=wy

https://rr.executiveboard.com/Members/ResearchAndTools/Abstract.aspx?cid=100497721&tc=pipelines&stc=1&loc=fr



http://rr.executiveboard.com/members/decisionsupportcenters/abstract.aspx?cid=100114940&tc=employment_branding&stc=4&loc=wy

http://rr.executiveboard.com/members/decisionsupportcenters/abstract.aspx?cid=100114940&tc=employment_branding&stc=4&loc=wy

Appendix


Q3 2014-Q2 2015 n: 75,104 all employees (engagement and PPI); 2,009 employees in New Zealand (engagement and PPI); 75,104 all employees (EVP Satisfaction); 2,009 employees in New Zealand (EVP Satisfaction); 37,534 all employees (no career moments); 1,015 employees in New Zealand (no career moments).

NEW ZEALAND ENGAGEMENT AND PERFORMANCE RISK HEATMAPQ3 2014-Q2 2015 OVERVIEW

40

NOTE: Green or red highlighting indicates that a percentage differs from the New Zealand average by 4.0% or more, or an Index by 4.0 or more. Green highlighting indicates that an employee subset is considered “low risk” for an attribute and red highlighting indicates “high risk”. Blank boxes indicate an insufficient n-size for reporting.


Benchmarks

Gender

Age

Education

Employee Level

Performance Level

Organization Size

Engagement EVP Satisfaction Key Measures

High Discretionary

Effort

Low Intent to Stay

High Intent to Stay

Rewards Satisfaction

Opportunity Satisfaction

Organization Satisfaction

People Satisfaction

Work Satisfaction Pay Perceptions Index

Experienced No Career Moments

International Average 18.4% 9.8% 34.2% 33.3% 31.8% 36.8% 37.4% 37.2% 55.0 31.8%

New Zealand 20.2% 10.6% 34.3% 25.1% 30.6% 35.9% 37.2% 37.1% 54.1 34.2%

Female 23.9% 11.0% 35.1% 24.1% 30.6% 35.8% 38.4% 37.8% 53.7 34.8%

Male 16.6% 10.2% 33.9% 26.3% 30.8% 36.4% 36.3% 36.6% 54.6 33.4%

18-29 13.5% 13.0% 24.9% 23.3% 31.5% 35.4% 36.6% 35.1% 54.2 40.3%

30-39 18.8% 11.0% 30.9% 26.1% 30.7% 34.4% 35.8% 36.8% 55.0 27.5%

40-49 19.5% 10.9% 35.0% 25.5% 30.4% 35.9% 37.3% 37.1% 53.7 34.4%

50-70 28.7% 7.4% 46.4% 25.1% 29.8% 38.3% 39.4% 39.2% 53.2 37.0%

Completed high school / secondary level education and / or some college 21.2% 8.9% 36.8% 23.5% 29.7% 35.0% 35.8% 35.4% 52.5 38.7%

Completed technical / associate degree, certificate, or diploma 22.7% 9.9% 37.6% 27.5% 30.9% 37.0% 37.2% 38.3% 54.9 31.7%

Completed bachelor's / university degree 20.5% 10.0% 32.8% 24.5% 30.1% 35.5% 38.4% 37.1% 54.4 31.2%

Completed MBA 19.7% 18.2% 25.8% 24.2% 26.4% 33.2% 36.6% 36.4% 53.8 32.5%

Completed Masters degree (non-MBA), PhD, Medical Degree, Law Degree, or Other Professional Degree

17.2% 13.0% 32.2% 28.0% 32.8% 38.8% 39.1% 40.6% 56.8 29.5%

Junior level 18.3% 10.7% 30.5% 22.4% 28.5% 32.9% 34.7% 33.7% NA 37.1%

Mid level 20.6% 10.7% 35.6% 26.4% 31.4% 37.4% 37.6% 38.8% NA 27.5%

Senior level 22.7% 15.2% 37.9% 35.6% 41.2% 49.1% 56.6% 47.4% NA 36.0%

Non-High Potential 18.0% 10.4% 32.9% 23.7% 28.6% 34.0% 35.3% 35.3% 53.0 35.0%

High Potential 40.0% 12.0% 47.5% 37.4% 48.2% 53.0% 54.8% 53.4% 64.1 26.3%

Greater than 20,000 21.6% 12.6% 34.7% 29.9% 36.2% 40.2% 39.5% 37.9% 55.1 26.5%

5,001 to 20,000 19.2% 10.3% 34.6% 27.1% 30.5% 34.7% 35.6% 35.6% 53.4 17.5%

1,001 to 5,000 18.6% 10.0% 30.1% 27.4% 29.3% 34.9% 35.9% 36.5% 54.1 24.3%

101 to 1,000 19.0% 10.5% 32.1% 23.4% 30.1% 34.5% 34.5% 35.9% 53.5 31.1%

100 or fewer 21.7% 10.4% 37.3% 23.2% 29.9% 36.6% 39.5% 38.4% 54.5 48.8%


Key Definitions

41

Base pay change expectations measure the percent change in base pay an employee expects in the coming year.

Bonus pay change expectations measure the percent change in short-term incentive (STI) an employee expects in the coming year.


The Confidence in Senior Leadership Index measures employed individuals’ confidence in the senior leadership of their current organization to successfully prepare for the future by setting strategy, developing leaders, and responding to economic and labor market changes.

The Collaboration Quotient measures employed individuals’ perceptions of their ability to access peers both from within their team and across the organization to get help, share information, and source ideas.

Discretionary Effort measures an employee’s reported willingness to go above and beyond the call of duty, such as helping others with heavy workloads, volunteering for additional duties, and looking for ways to perform the job more effectively.

The Employment Value Proposition The tangible rewards an employee receives for his or her work, such as compensation and benefits. The opportunity a job or organization affords an employee, such as development experiences. The characteristics of the organization, such as its size or market position. The characteristics of the organization’s people, such as manager quality. The nature of the work itself, such as the extent to which it matches an employee’s interests.

The Empowerment Barometer measures employed individuals’ perspective on the degree to which all employees can recommend ideas, solve problems, execute on strategy, and take on temporary leadership roles.

The Innovation Index measures employed individuals’ confidence in their organization’s ability to try new ideas, achieve high levels of innovation, launch successful new initiatives, and rapidly deliver new products or services to the market.

Intent to Stay measures an employee’s reported desire to stay with the organization, based on whether he or she intends to look for a new job within a year, frequently thinks of quitting, is actively looking for a job, or has begun to take tangible steps such as placing phone calls or sending out résumés.

The IT Impact Index measures employed individuals’ ability to use the resources and capabilities officially provided by their employers for collaboration, analysis, and mobility.

The Manager Effectiveness Index measures employed individuals’ confidence in their direct manager’s effectiveness at helping employees acquire and apply skills and knowledge, providing appropriate feedback formally and informally, and helping employees improve against development goals.

The Misconduct Monitor measures employed individuals’ perceptions of ethical behavior and practices within their organization.

The Pay Perceptions Index measures six aspects of employee perceptions at their organizations—financial value, nonfinancial value, organizational fairness, manager fairness, internal equity, and external equity—weighted by their impact on employee intent to stay and discretionary effort.

The Risk Tolerance Quotient measures employed individuals’ confidence in their ability to take risks to improve business outcomes both personally and for their current organization.


DEFINITIONS OF EVP ATTRIBUTES

Attribute’s Name Definition

Business Travel The amount of out-of-town business travel required by the job

Camaraderie Whether working for the organization provides opportunities to socialize with other employees

Collegial Work Environment

Whether the work environment is team-oriented and collaborative

Compensation The competitiveness of the job’s financial compensation package

Coworker Quality The quality of the coworkers in the organization

Customer Prestige The reputation of the clients and customers served in performing the job

Development Opportunity The developmental and educational opportunities provided by the job and organization

Inclusion/Diversity The organization’s level of commitment to having an inclusive and diverse workforce

Empowerment The level of involvement employees have in decisions that affect their job and career

Environmental Responsibility

The organization’s level of commitment to environmental health and sustainability

Ethics/Integrity The organization’s commitment to ethics and integrity

Formality of Work Environment

Whether the organization maintains a casual work environment

Future Career Opportunity The future career opportunities provided by the organization

“Great Employer” Recognition

Whether or not the organization’s reputation as an employer has been recognized by a third-party organization

Growth Rate The growth rate of the organization’s business

Health Benefits The comprehensiveness of the organization’s health benefits

Industry Desirability The desirability of the organization’s industry to the respondent

Innovative Work The opportunity provided by the job to work on innovative, “leading-edge” projects

Job Interests Alignment

Whether the job responsibilities match your interests

42

Originally developed in 2006, our EVP model consists of 38 attributes that drive attraction and retention.

We compiled a master list of

more than 200 employment

characteristics and

evaluated it for similarity,

distinctiveness, universality,

and overall ratability, leading

to the consolidated list of 38

attributes.

The 38 attributes are

grouped into five categories:

rewards, opportunity,

organization, work, and

people.


DEFINITIONS OF EVP ATTRIBUTES (CONTINUED)

Attribute’s Name Definition

Level of Impact The level of direct impact the job has on business outcomes

Location The location of the jobs offered by the organization

Manager Quality The quality of the organization’s managers

Market Position The competitive position the organization holds in its market(s)

Meritocracy Whether employees are rewarded and promoted based on their achievements

Organization Size The size of the organization’s workforce

Stability The level of stability of the organization and the job

People Management The organization’s reputation for managing people

Well-Known Product Brand The level of awareness in the marketplace for the product’s brand

Product or Service Quality The organization’s product or service quality reputation

Recognition The amount of recognition provided to employees by the organization

Respect The degree of respect the organization shows employees

Retirement Benefits The comprehensiveness of the organization’s retirement benefits

Risk Taking The amount of risk the organization encourages employees to take

Senior Leadership Reputation The quality of the organization’s senior leadership

Social Responsibility The organization’s level of commitment to social responsibility (e.g., community service, philanthropy)

Technology Level The extent to which the organization invests in modern technology and equipment

Vacation The amount of holiday or vacation time employees earn annually

Work–Life Balance The extent to which the job allows employees to balance work and other interests

43

Originally developed in 2006, our EVP model consists of 38 attributes that drive attraction and retention.

We compiled a master list of

more than 200 employment

characteristics and

evaluated it for similarity,

distinctiveness, universality,

and overall ratability, leading

to the consolidated list of 38

attributes.

The 38 attributes are

grouped into five categories:

rewards, opportunity,

organization, work, and

people.


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