Despite Increased Demand for New Hires, Leadership Ineffectiveness
Threatens Employee Attraction and Retention
TORONTO, Sept. 19, 2011 /CNW/ - The 2011 Canadian Talent Survey released today by Aon Hewitt, the global human resource consulting and
outsourcing solutions business of Aon Corporation (NYSE: AON), finds
that many organizations doubt their leaders' ability to meet the
challenges of today's post-recession environment.
Aon Hewitt surveyed 386 organizations nationwide earlier this year,
receiving responses from all levels of employees, ranging from top
executives to support staff. The majority of respondents were either
directors (32 per cent) or managers (30 per cent), primarily in human
resources (HR) roles.
The survey results found that leaders play a vital role in delivering
desired customer service (53 per cent), meeting business goals (40 per
cent) and profitability targets (40 per cent), and retaining talent (35
per cent). However, only 14 per cent believe their leaders are
extremely effective at delivering quality service, while their ability
to meet business goals and profitability targets is ranked at eight per
cent and ten per cent, respectively. As for retaining talent, just five
per cent rated their leaders as extremely effective.
"This crisis in confidence regarding leadership effectiveness does not
bode well for the future success of some organizations," said Robert
Carlyle, vice president with Aon Hewitt in Toronto. "Now that the
Canadian economy is recovering, survey respondents named employee
engagement as their primary post-recession business concern, followed
by the retention of top talent. If leaders aren't able to keep pace
with shifting demands, they run the risk of losing key employees to
According to Aon Hewitt, leaders must be more creative in this
post-recession environment. Key capabilities include:
Focusing on the most valuable talent and pay for performance;
Demonstrating speed and agility;
Developing middle management;
Increasing employee engagement; and
Developing leadership resiliency.
Results from Aon Hewitt's annual Best Employers in Canada study revealed that employee engagement increased during the recession,
due to the limited employment alternatives. Now that the economic
downturn seems to be at an end and more job opportunities exist,
employees' commitment to their employer may be wavering if they're not
A focus on middle management is also important. "Leaders must invest in
developing middle managers - they're the ones who can bridge the gap
between leadership strategy and employee actions and can effect
change," stated Carlyle.
Aon Hewitt will share more insight regarding leadership best practices
and how to effectively develop the next generation of leaders when the
results of its Top Companies for Leaders study are revealed this fall.
In addition, the Canadian Talent Survey revealed that 39 per cent of respondents are planning to hire more
employees in 2011 than they did in 2010, and only 13 per cent expect to
hire fewer employees this year than they did last year. However, just
24 per cent of organizations believe they are very or extremely
effective at hiring quality employees. Half of the responding
organizations say they are effective at securing quality hires and 26
per cent think they are only somewhat effective or not at all effective
at hiring quality workers.
According to Aon Hewitt, one of the reasons for this poor perspective on
organizations' ability to effectively hire quality employees is due to
the fact that many HR departments lack recruiting resources to process
and screen the large number of candidates applying for positions. Forty
per cent of respondents state that it is very or extremely important
for them to fill positions faster, while only 17 per cent think that
they are very or extremely effective in doing so.
"Improving the hiring process is critical if employers are planning to
ramp up their number of new hires," said Carlyle. "We are seeing
organizations focus on improving the candidate experience, upgrading
selection and assessment approaches that will yield increased
performance from new hires, and redesigning the on-boarding process."
The survey results reveal additional information regarding Canadian
employers' hiring plans:
Just over half (51 per cent) of respondents agree or strongly agree that
they have a stated HR strategy and plan.
When recruiting entry-level employees, the three sources that
organizations rely on the most are employee referrals, job boards and
unsolicited applications received through the company website. For more
experienced hires, employers again turn to employee referrals and job
boards, but also look to agencies for help in finding candidates.
According to 28 per cent of respondents, it is not important for their
organization to leverage social media for recruitment. That's just as
well, given that 38 per cent believe their employer is ineffective in
leveraging social media for this purpose.
About this Survey
Aon Hewitt's 2011 Canadian Talent Survey examines the talent practices, strategies and challenges employers face
as Canada emerges from the recession. Findings show that organizations
are optimistic and cautiously beginning to change their focus from
reducing costs to growth strategies. To receive a copy of the survey
highlights report, please contact us at email@example.com.
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About Aon Hewitt
Aon Hewitt is the global leader in human resource consulting and
outsourcing solutions. The company partners with organizations to
solve their most complex benefits, talent and related financial
challenges, and improve business performance. Aon Hewitt designs,
implements, communicates and administers a wide range of human capital,
retirement, investment management, health care, compensation and talent
management strategies. With more than 29,000 professionals in 90
countries, Aon Hewitt makes the world a better place to work for
clients and their employees. For more information on Aon Hewitt,
please visit www.aonhewitt.com.
Aon Corporation (NYSE: AON) is the leading global provider of risk management services, insurance and reinsurance brokerage, and human resources solutions and outsourcing. Through its more than 59,000 colleagues worldwide, Aon unites to deliver distinctive client value via innovative and effective risk management and workforce productivity solutions. Aon's industry-leading global resources and
technical expertise are delivered locally in over 120 countries. Named
the world's best broker by Euromoney magazine's 2008, 2009 and 2010 Insurance Survey, Aon also ranked
highest on Business Insurance's listing of the world's insurance brokers based on commercial retail, wholesale, reinsurance and personal lines
brokerage revenues in 2008 and 2009. A.M. Best deemed Aon the number one insurance broker based on revenues in 2007,
2008 and 2009, and Aon was voted best insurance intermediary 2007-2010,
best reinsurance intermediary 2006-2010, best captives manager
2009-2010, and best employee benefits consulting firm 2007-2009 by the readers of Business Insurance. Visit http://www.aon.com for more information on Aon and http://www.aon.com/manchesterunited to learn about Aon's global partnership and shirt sponsorship with Manchester United.
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