New Zealand

Turbulent times call for better leaders

Latest research shows engagement and leadership the keys to success in difficult times

Auckland, 4 June 2013: While all businesses face similar challenges in times of economic uncertainty, some are far better prepared than others to survive and even prosper – despite the difficulties. Those businesses are the ones with higher levels of employee engagement.

This is one of the topline findings of the 2013 Aon Hewitt Best Employers study for New Zealand and Australia. The study has been run since 2001 and this year includes data from a survey of over 100,000 employees from 125 organisations.

Chorus, FedEx Express (New Zealand), Frucor Beverages and Express Data were among 19 companies across New Zealand and Australia accredited as Aon Hewitt Best Employers for their high levels of employee engagement and outstanding people practices.

"All employers are confronted by the same set of economic circumstances, but our Best Employers are able to do a substantially better job of leading and managing the workforce to create high levels of engagement. This mitigates many of the economic issues they face – leading to better results," said Stephen Hickey, Employee Engagement Lead at Aon Hewitt.

"Best Employers achieve four times higher profit growth than other organisations," said Mr Hickey. "And, when it comes to total shareholder return, we’re talking 50% above average levels."

Despite recent economic uncertainty, Best Employers are maintaining their focus on employee engagement – and reaping the rewards.

"It is the decisions that an organisation's leaders are making about how to lead it when times are tough that can dictate the levels of engagement – which in turn affect how well a company is likely to perform," explained Mr Hickey.

He went on to say that most organisations today are seeking to restore growth from low cost baselines – achieving more with less. And, he asserted, this takes a very different set of leadership skills than those that applied before the GFC.

"In essence, while we continue to see Best Employers engaging, building leadership and taking a differentiated position in the employment market, the strategy for delivery has evolved over the last few years. Difficult times are not the factor. It's how we respond to them that counts."

Mr Hickey cited a number of examples from the 2013 Aon Hewitt Best Employers that support this position. These include the growing move to develop people leadership capability as a core competency within an organisation rather than a secondary focus; a more concerted push to connect middle managers to the broader business strategy; and a greater willingness to identify and single out an organisation’s best performers for additional rewards.

"There is also the considerable benefit of the brand differentiation that Best Employers enjoy. In a tight labour market they become employers of choice. They are able to hold on to the best people – and those people are able to reap the material and career satisfaction rewards of working with passionate and engaged colleagues."

The 2013 Aon Hewitt Best Employers are:
Bristol-Myers Squibb, Chorus, Cooper Grace Ward Lawyers, Employment Innovations, Express Data, FedEx Express (New Zealand), Fiat Chrysler Group, Frucor Beverages Australia, Frucor Beverages New Zealand, Hilti (Aust.) Pty Ltd, Marriott Hotels & Resorts, Millward Brown Australia, Peoplebank Australia Limited, Shire Australia Pty Ltd, Silver Chef Ltd, Smartsalary Pty Ltd, STIHL Pty Ltd, The Wrigley Company Limited and Wood & Grieve Engineers.

Marriott Hotels & Resorts won the Aon Hewitt 2013 Best of the Best accreditation.

Key findings from the Best Employers study for Australia and New Zealand include:

  • Best Employers achieve four times higher profit growth than other organisations
  • Organisations with high employee engagement achieve 50% higher Total Shareholder Return outcomes than other organisations
  • In 2012 and 2013, 38% of organisations improved their level of employee engagement
  • 83% of Best Employers have an explicit employer brand, compared to only 39% of other organisations.

For more information on the 2013 Best Employers study, or to arrange an interview with Stephen Hickey, please contact:

Abbe Popadich
Aon Hewitt
09 362 9153
021 557 725
[email protected]

Alison Hall
Aon Hewitt
09 362 9292
021 447 466
[email protected]

About Aon Hewitt Best Employers in New Zealand and Australia

Aon Hewitt Best Employers New Zealand and Australia and is the preeminent research and accreditation program into the people practices of high performing organisations.

Conducted in New Zealand and Australia since 2001, the 2013 study involves data from 125 organisations and over 100,000 employees.

The report provides the specific set of actions and benchmark comparisons that an organisation needs to develop and sustain a high performance workforce.

About Aon Hewitt

Aon Hewitt is the global talent, retirement and health solutions business of Aon plc (NYSE: AON).

Aon Hewitt empowers organisations and individuals to secure a better future through innovative talent, retirement and health solutions. We advise, design and execute a wide range of solutions that enable clients to cultivate talent to drive organisational and personal performance and growth, navigate retirement risk while providing new levels of financial security, and redefine health solutions for greater choice, affordability and wellness. Aon Hewitt is the global leader in human resource solutions, with over 30,000 professionals in 90 countries serving more than 20,000 clients worldwide. For more information on Aon Hewitt, please visit www.aonhewitt.co.nz.