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back to index backGLOBALtalk December,  2014


Indonesia Companies Need to Capitalize on Improving Employee Engagement Trends

Employee engagement scored in Indonesia continues to show consistent increase from 64 percent to 71 percent over the past six years, the highest score in employee engagement among 11 other countries in Asia Pacific. Economic factors such as GDP growth and falling unemployment rate, combined  with CEO's growing expectations on human resources, have added increased challenges for HR professionals in Indonesia. This is especially so if they want to stay ahead and win the war for talent.

Sixty-seven percent of participating CEO in the Best Employers in Indonesia study consider "People Issues" as the top business challenge impacting their organization's ability to succeed. The primary concerns identified on the talent front are:

- availability of critical skills

- ability to build an adequate leadership pipeline

- capability of management to support business operations

The Best Employers research results in Indonesia revealed the following insights and implications for employers:

Employee Engagement

Highest Engagement Score in Asia Pacific: Indonesia's employee engagement score was ranked the highest among the Asia Pacific countries. Seventy five percent (75 percent) of the employees speak positively about the organization and want to put in extra effort for the company; Indonesia also had the smallest proportion of actively disengaged employees.

In spite of this encouraging engagement trend for Indonesia, considerable disparity exists between Indonesia Best Employers and the market average. The Indonesia Best Employers not only enjoy significantly higher engagement scores from their employees (89 percent) than the Indonesia market average (71 percent), they also outperform the market by scoring an average of 23 percent higher than market average in the four drivers with which Indonesia employees were "least satisfied" - benefits (73 percent), pay (76 percent), career opportunities (76 percent), and brand alignment (76 percent).

Higher Growth and Lower Attrition: Best Employers in Indonesia achieved 4 percent higher growth and 4 percent lower employee attrition levels than study participants. Best Employers also successfully filled 20 percent more job openings internally, compared to other study participants. Best Employers do not face the same degree of challenge in attracting talent with critical skills to support their businesses.

Generation Y: Engaging Generation Y emerged as a key focus for Best Employers in Indonesia with a distinctly high engagement score of 81 percent in this age group. According to Lusi Lubis, managing director of Aon Hewitt in Indonesia, Best Employers in Indonesia know how to engage Gen Y by offering activities and initiatives that are aligned with their competitive nature rather than merely rewarding them with financial incentive.

However, this is not the case with the market in general where the Gen Y average score (61 percent) is 20 percentage points lower than the Best Employers and 10 points lower than the market general average (71 percent).

To read entire article, please click here.

Source: AON
- GAI




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