CLC Quarterly Global Workforce Bench Marking Report Q1 2012

CLC HUMAN RESOURCES™

Quarterly Global Workforce Benchmarking Report

Trends in EVP Attraction, Engagement, and Retention

Q1 2012

CORPORATE LEADERSHIP COUNCIL®

CLC HUMAN RESOURCES™CLC HUMAN RESOURCES

Senior AnalystSonia Kundal

Consultant Brett Agypt

DirectorsDirectorsRaymond Liu

Sallie Van Tassel

Senior DirectorsAdam Brinegar

Brad Adams

Managing DirectorBrian Kropp

Mark Van Buren

NOTE TO MEMBERSThis project was researched and written to fulfill the research request of several members of The Corporate Executive Board Company and as a result may not satisfy the information needs of all member companies. The Corporate Executive Board Company encourages members who have additional questions about this topic to contact the Member Support Center at [email protected] further discussion. The views expressed herein by third-party sources do not necessarily reflect the policies of the organizations they represent.

PROFESSIONAL SERVICES NOTE

CLC Human Resources, Corporate Leadership Council© 2012 The Corporate Executive Board Company. All Rights Reserved. CLC9542211PRO 2

PROFESSIONAL SERVICES NOTECLC Human Resources has worked to ensure the accuracy of the information it provides to its members. This project relies upon data obtained from many sources, however, and CLC Human Resources cannot guarantee the accuracy of the information or its analysis in all cases. Furthermore, CLC Human Resources is not engaged in rendering legal, accounting, or other professional services. Its projects should not be construed as professional advice on any particular set of facts or circumstances. Members requiring such services are advised to consult an appropriate professional. Neither The Corporate Executive Board Company nor its programs are responsible for any claims or losses that may arise from any errors or omissions in their reports, whether caused by The Corporate Executive Board Company or its sources.

TABLE OF CONTENTSThi t l kf b h ki t id t di d t th k t f th l t lif lThis quarterly workforce benchmarking report provides trending data on three key outcomes of the employment lifecycle: attraction, engagement, and retention. Use this data to inform your organization’s EVP strategy – for both attracting candidates and addressing weaknesses in EVP delivery to employees – and to benchmark the engagement level of your key talent segments.

This report uses global data collected through CLC Human Resources’ Quarterly Global Labor Market Survey, which polls approximately 18,000 employees in 28 countries during the first month of every quarter. CLC Human Resources provides separate

t d l d ft thi th t id i d th t d d t j i d t ireports modeled after this one that provide more in-depth, segmented data on major regions and countries.

EVP Drivers of Attraction

• EVP Framework Defined……………………………………………………………….………………......……………………….....Page 5

• Trends in EVP Drivers of Attraction.……………………………………………………………….………………...………………..Page 6

T EVP D i f Att ti b R i P 8• Top EVP Drivers of Attraction by Region………………………………………………………….………………...………………..Page 8

EVP Drivers of Attrition

• Trends in EVP Drivers of Attrition.……………………………………………………………….………………...…………………..Page 10

• Top EVP Drivers of Attrition by Region…...…………………………………………….……………………………………………..Page 12

• Change in Pay Reported by Departed Employees...…………………………...….…………………………………………….…..Page 14

Global Employee Engagement Levels

• Engagement Model Defined……………………………………………………………….………………....…………………….….Page 16

• Global Engagement Trends………………….……………………………………………………………….………………………..Page 17

• Engagement Trends by Function………………………………………………………………………………………………………Page 19

• Engagement Trends by Industry……………………………………………………………………………………………………….Page 21

• Engagement Trends by Region……………………………………………………………………………………………………..…Page 23

Appendix


Appendix

• Definitions of the 38 EVP Attributes……………………………………………………………….………………......……...……….Page 29

• Survey Demographics.……………………………………………………………….………………...………………….………..…..Page 31

REPORT ROAD MAP

Trends in Drivers of Trends in Trends in Drivers of Attraction:

Building an Appealing EVP Brand

Engagement Levels:

By Function, Industry, and Region

Attrition:

Addressing EVP Delivery Weaknesses

CLC Human Resources, Corporate Leadership Council© 2012 The Corporate Executive Board Company. All Rights Reserved. CLC9542211PRO

The EVP is the set of attributes that the labor

CLC’s EMPLOYMENT VALUE attributes that the labor market and employees perceive as the value they gain through employment in the organization. The EVP provides a holistic, actionable framework for

EVP Framework and Benefits

PROPOSITION (EVP) FRAMEWORK

managing talent outcomes across the employment lifecycle.

Relevant Resource:

Visit the EVP Topic Centerfor more background information on individual


information on individual EVP attributes and tools for designing an EVP.

https://clc.executiveboard.com/Members/Topics/Abstract.aspx?cid=100612961

The top EVP drivers of attraction are:

EVP DRIVERS OF ATTRACTION: Q1 2012attraction are:

1. Compensation2. Respect3. Stability4. Work-Life Balance 5. Location.

Global EVP Drivers of Attraction: Q4 2011 – Q1 2012

Percentage of Potential Candidates Rating Attribute Among Top 5 Most Important

Importance to Importance to

• The largest changes quarter-over-quarter occurred with compensation and work-life balance, which decreased in i t b 3% d 2%

EVP Attribute

AttractionQ‐o‐Q Change EVP Attribute

AttractionQ‐o‐Q ChangeQ1 2012 Q4 2011 Q1 2012 Q4 2011

1. Compensation 41% 44% ‐3% 20. People Management 10% 11% 0%

2. Respect 35% 34% 1% 21. Organization Growth Rate 10% 9% 1%

3. Stability 35% 34% 1% 22. Innovative Work 10% 9% 1%importance by 3% and 2%, respectively.

y 35% 34% 1% 10% 9% 1%

4. Work‐Life Balance 32% 34% ‐2% 23. Social Responsibility 10% 9% 1%

5. Location 26% 26% ‐1% 24. Technology Level 10% 9% 1%

6. Future Career Opportunity 25% 24% 1% 25. "Great Employer" Recognition 8% 8% 0%

7. Development Opportunity 20% 21% ‐1% 26. Empowerment 8% 8% 0%

8 Recognition 19% 19% 0% 27 Market Position 7% 7% 1%

Relevant Resource:

Learn more about using the Recruiting Effectiveness Dashboard (RED) which is

8. Recognition 19% 19% 0% 27. Market Position 7% 7% 1%

9. Ethics & Integrity 18% 18% 0% 28. Industry Desirability 6% 6% 0%

10. Vacation 16% 17% ‐1% 29. Environmental Responsibility 6% 5% 1%

11. Health Benefits 16% 15% 1% 30. Organization Size 5% 5% 0%

12. Collegial Work Environment 14% 15% ‐1% 31. Formality of Work Environment 5% 6% 0%

/Dashboard (RED), which is a survey and benchmarking tool that helps organizations measure quality of hire and other key talent attraction metrics.

RED is provided through

13. Product/Service Quality 14% 14% 0% 32. Senior Leadership Reputation 4% 4% 0%

14. Coworker Quality 14% 13% 0% 33. Customer Reputation 4% 4% 0%

15. Retirement Benefits 12% 13% ‐1% 34. Diversity 4% 3% 1%

16. Manager Quality 11% 11% 0% 35. Product Brand 4% 4% 0%

17. Meritocracy 11% 11% 0% 36. Risk Taking 3% 2% 1%


Source: Quarterly Global Labor Market Survey, CLC Human Resources.

RED is provided through CLC Recruiting, a sister program of CLC HR.

18. Job‐Interest Alignment 11% 12% ‐1% 37. Business Travel 3% 3% 0%

19. Camaraderie 11% 10% 0% 38. Job Impact 3% 3% 0%

https://rr.executiveboard.com/Members/RED/Default.aspx

The importance of compensation the highest

TREND IN TOP 10 EVP DRIVERS OF compensation – the highest of all EVP attributes globally (though not in every country) – peaked at 44% during 2011 but declined slightly to 41% in the first quarter of 2012.

ATTRACTIONTop 10 Global EVP Drivers of Attraction: Q1 2011 – Q1 2012

Percentage of Potential Candidates Rating Attribute Among Top 5 Most Importantq

• The top drivers of attraction were relatively unchanged over the past year. The importance of job location saw th l t h

1. Compensation40%

41%

the largest change, a decrease of 3%.

2. Respect

4. Work-Life Balance

3. Stability35%

35%33%

35%

32%

29%

5. Location6. Future Career Opportunity

7. Development Opportunity8 Recognition

29%

26%25%

19% 20%19%

25%

8. Recognition9. Ethics and Integrity

10. Vacation15% 16%

18%9%

18%

2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1

Relevant Resource:

Use the EVP Design Center, CLC’s online benchmarking tool, to segment the attraction data for key talent


2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1attraction data for key talent groups by geography, industry, function, and level. Source: Quarterly Global Labor Market Survey, CLC Human Resources.

https://clc.executiveboard.com/Members/Benchmarking/Abstract.aspx?cid=40591430

TOP 10 ATTRACTION DRIVERS BY REGIONTop 10 EVP Drivers of Attraction by Region: Q1 2012

Percentage of Potential Candidates Rating Attribute Among Top 5 Most Important

GlobalAustralia & New Zealand

Brazil Canada China Germany IndiaSoutheast Asia*

UnitedKingdom

United States

1 CompensationWork‐Life

Balance (54%)Compensation

(51%)Respect (45%)

Compensation (62%)

Compensation (57%)

Future Career Opportunity (31%)

Work‐Life Balance (41%)


Stability (44%)

2 Respect Respect (45%) Stability (35%) Stability (42%)Development Opportunity

(38%)

Collegial Work Environment

(36%)


Compensation (40%)

Location (42%)Compensation

(43%)

Future Career Organization Future Career3 Stability Location (40%) Respect (34%)


Future Career Opportunity

(33%)Location (34%)

Organization Growth Rate

(29%)


(38%)Respect (39%)

Health Benefits (40%)

4Work‐Life Balance

Stability (39%)Recognition

(32%)Health Benefits

(38%)Stability (29%) Respect (31%) Respect (29%) Stability (31%) Stability (37%) Respect (38%)

5 LocationCompensation Ethics and Compensation Health Benefits

Stability (26%) Stability (28%) Respect (25%)Future Career Opportunity

Work‐Life 5 Location

(26%) Integrity (30%) (37%) (29%)Stability (26%) Stability (28%) Respect (25%) Opportunity

(29%)Balance (35%)

6Future Career Opportunity

Ethics and Integrity (24%)


(28%)Location (33%) Respect (27%)

Recognition (25%)

Technology Level (24%)


Recognition (21%)

Location (34%)

7Development Opportunity


(23%)



(28%)

Retirement Benefits (18%)

Social Responsibility

(22%)

Compensation (22%)

Recognition (23%)

Development Opportunity

(19%)

Ethics and Integrity (26%)pp y

(23%)( )

(28%)( )

(22%)( ) ( )

(19%)g y ( )

8 RecognitionRecognition

(19%)

Collegial Work Environment

(20%)Vacation (20%)


Camaraderie (22%)

Development Opportunity (22%)

Health Benefits (23%)

Compensation (18%)


(24%)

9Ethics and Integrity

Product/Service Quality (18%)

Product/Service Quality (19%)


Industry Desirability

(16%)

Manager Quality (18%)

Recognition (20%)Development Opportunity

(22%)

People Management

(17%)



10 VacationPeople

Management (17%)

Development Opportunity

(18%)




(17%)Location (20%)

People Management

(21%)Vacation (15%) Vacation (17%)

* Includes Indonesia, Malaysia, the Philippines, and Singapore.

REPORT ROAD MAP

Trends in Trends in Drivers of Trends in Drivers of Engagement Levels:


Attrition:


Attraction:



Employees indicated the highest dissatisfaction with

EVP DRIVERS OF ATTRITION: Q1 2012highest dissatisfaction with the following EVP drivers as the cause for them to leave for another job:

1. Future Career Opportunity

Global EVP Drivers of Attrition: Q4 2011 – Q1 2012

Percentage of Departed Employees Selecting Attribute Among Top 5 Most Dissatisfied at Former Employer

Impact on Impact onpp y2. Compensation3. People Management 4. Manager Quality5. Recognition.

EVP Attribute

Impact on Attrition

Q‐o‐Q Change EVP Attribute

Impact on Attrition

Q‐o‐Q ChangeQ1 2012 Q4 2011 Q1 2012 Q4 2011

1. Future Career Opportunity 44% 42% 2% 20. Vacation 9% 8% 1%

2. Compensation 37% 42% ‐5% 21. Innovative Work 9% 9% 0%

/3. People Management 35% 36% ‐1% 22. Product/Service Quality 8% 5% 3%

4. Manager Quality 31% 30% 1% 23. Job Impact 8% 7% 1%

5. Recognition 30% 29% 1% 24. Risk Taking 6% 6% 0%

6. Respect 29% 29% 0% 25. Collegial Work Environment 6% 6% 0%

7. Work‐Life Balance 29% 28% 1% 26. "Great Employer" Recognition 6% 7% ‐1%

8. Development Opportunity 26% 32% ‐6% 27. Industry Desirability 6% 4% 2%

9. Location 16% 17% ‐1% 28. Market Position 6% 4% 2%

10. Organization Growth Rate 16% 16% 0% 29. Retirement Benefits 5% 6% ‐1%

11. Stability 15% 16% ‐1% 30. Formality of Work Environment 5% 5% 0%

12. Job‐Interest Alignment 14% 14% 0% 31. Camaraderie 5% 4% 1%

Relevant Resource:

Learn more about using the Departure View Exit Survey, included in the CLC

13. Ethics and Integrity 13% 10% 3% 32. Organization Size 4% 3% 1%

14. Meritocracy 12% 12% 0% 33. Business Travel 4% 4% 0%

15. Empowerment 11% 14% ‐3% 34. Diversity 4% 3% 1%

16. Senior Leadership Reputation 11% 12% ‐1% 35. Social Responsibility 3% 3% 0%

17. Technology Level 11% 9% 2% 36. Environmental Responsibility 2% 3% ‐1%


Source: Departure View Exit Survey, CLC Human Resources.

included in the CLC membership, at your organization.

18. Coworker Quality 10% 12% ‐2% 37. Customer Reputation 2% 2% 0%

19. Health Benefits 9% 9% 0% 38. Product Brand 2% 1% 1%

https://clc.executiveboard.com/Members/ExitSurvey.aspx

The impact on attrition of compensation and work life

TREND IN TOP 10 EVP DRIVERS OF compensation and work-life balance has increased the most (each by +8%) since late 2010.

• At 44%, future career

ATTRITIONTop 10 Global EVP Drivers of Attrition: Q4 2010 – Q1 2012

Percentage of Departed Employees Selecting Attribute Among Top 5 Most Dissatisfied at Former Employer ,

opportunity remains the most frequently reported cause of departure.

48%

44% 1. Future Career Opportunity

29%

37%35%

39%

31%34%

30%29%

2. Compensation

3. People Management

5. Recognition4. Manager Quality

28% 29%

21%

16%16%

6. Respect

8. Development Opportunities

7. Work-Life Balance

9 Location

26%

Relevant Resource:

Use the EVP Design Center, CLC’s online benchmarking tool, to segment the attrition data for key talent groups by

13%

16%

10%

16%

10. Organization Growth Rate

9. Location



data for key talent groups by geography, industry, function, and level.

2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1

https://clc.executiveboard.com/Members/Benchmarking/Abstract.aspx?cid=40591430

TOP 10 ATTRITION DRIVERS BY REGIONTop 10 EVP Drivers of Attrition by Region: Q1 2012

Percentage of Departed Employees Selecting Attribute Among Top 5 Most Dissatisfied at Former Employer

GlobalAustralia & New

ZealandCanada China India Southeast Asia* UK US

Zealand

1 Future Career OpportunityFuture Career

Opportunity (46%)Future Career

Opportunity (43%)Compensation

(60%)Compensation

(52%)Future Career

Opportunity (45%)Future Career


(40%)

2 CompensationPeople

Management (40%)People

Management (39%)Development

Opportunity (53%)Recognition (46%)

People Management (45%)



People3 People Management


Respect (34%)Future Career

Opportunity (40%)Organization

Growth Rate (45%)Development


(37%)

People Management

(36%)

4 Manager Quality Recognition (32%)Compensation

(34%)Work‐Life Balance

(32%)Future Career

Opportunity (44%)Recognition (33%)

People Management

(37%)Respect (35%)

5 RecognitionWork‐Life Balance

Recognition (34%) Recognition (31%)People

Respect (26%) Recognition (35%)Future Career

5 Recognition(28%)

Recognition (34%) Recognition (31%)Management (32%)

Respect (26%) Recognition (35%)Opportunity (33%)

6 RespectManager Quality

(24%)Work‐Life Balance

(33%)Stability (22%)




Recognition (26%)

7 Work‐Life Balance Respect (24%)Manager Quality

(29%)Respect (21%)


Compensation (25%)



8 Development OpportunityCompensation

(22%)Development

Opportunity (25%)Manager Quality

(20%)Development

Opportunity (24%)Work‐Life Balance

(22%)Respect (23%)


9 Location Stability (18%) Vacation (19%)Job‐Interests

Alignment (19%)Respect (18%)

Job‐Interests Alignment (19%)

Empowerment (17%)

Coworker Quality (17%)

J b I t t O i ti J b I t t C k Q lit


10 Organization Growth RateJob‐Interests

Alignment (18%)Organization

Growth Rate (16%)Meritocracy (17%)

Job‐Interests Alignment (18%)

Coworker Quality (18%)

Stability (17%) Stability (17%)

* Includes Indonesia, Malaysia, the Philippines, and Singapore.

Employers should invest in promoting and delivering

PRIORITIZE TOP DRIVERS OF BOTH

Top 10 Global Drivers of Attraction Top 10 Global Drivers of Attrition

promoting and delivering the “core EVP attributes” that matter most to employees.

• Seven of the top 10 drivers of

ATTRACTION AND ATTRITION

Seven of the top 10 drivers of attraction are also drivers of attrition; employees are leaving organizations for (primarily) the same reasons that attracted them to join.

Core EVP Attributes

• Compensation

• Respect

• Work-Life Balance• Stability • People Management

M Q lit

• Aside from the seven core EVP attribute, employees are attracted by stability, ethics and integrity, and vacation time, but they leave their jobs due to dissatisfaction with manager quality people • Work-Life Balance

• Location

• Future Career Opportunity

• Development Opportunity

• Ethics and Integrity

• Vacation

• Manager Quality

• Organizational

Growth Rate

manager quality, people management, and organizational growth rate.

p pp y

• Recognition


In Q1 2012, departed employees expected to

CHANGE IN PAY REPORTED BY employees expected to receive 14.8% higher compensation with their new employer, down from 16.8% in the previous quarter.

DEPARTED EMPLOYEESDeparted Employees’ Expected Compensation Change at Their New Organization

Q3 2011 – Q1 2012

36%39%

37%Q3 2011 Average: 15.6%

Average Change in Pay

20%22%

36%

19%

23%21%

18%

Q4 2011

Q1 2012

Average: 16.8%

Average: 14.8%

2% 2%4%

13%

2% 1%4%

12%

19%

3% 2%5%

14%

18%

Relevant Resource:

Learn more about how CLC Compensation can help improve your organization’s pay design and management.

2% 2%2% 1% 2%

25% Decrease or more

15-24% Decrease

5-14% Decrease

About the same

5-14% Increase

15-24% Increase

25% Increase or more



CLC Compensation is a sister program of CLC HR.

http://www.executiveboard.com/human-resources/clc-compensation/index.html

http://www.executiveboard.com/human-resources/clc-compensation/index.html

REPORT ROAD MAP

Trends in Drivers of Trends in Trends in Drivers of Attraction:


Engagement Levels:


Attrition:



CLC’s EMPLOYEE ENGAGEMENT MODELCLC’s employee engagement model links

CLC’s Employee Engagement Model

engagement model links two key talent outcomes –discretionary effort and intent to stay – to organizational performance.

Discretionary Effort

Employee willingness to go “above

• The engagement metrics in this section of the report are based on the percentage of employees who display high or very high levels of discretionary effort and intent

Employee Engagement

The extent to which employees commit—both rationally and

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.

Organizational

yto stay.

commit both rationally and emotionally—to something or someone in their organization, how hard they work, and how long they stay as a result of that commitment.

Intent to Stay

Employee desire to stay with the organization, based on whether he/she intends to look for a new job within a year whether he/she

gPerformance

job within a year, whether he/she frequently thinks of quitting, whether he/she is actively looking for a job, or has begun to take tangible steps, like placing phone calls or sending out résumés.

Relevant Resource:

Visit the Engagement Topic Center for guidance on measuring and managing


g g gemployee engagement at your organization.



DISCRETIONARY EFFORT ROSE IN In Q1 2012, discretionary effort levels increased by

Q1 2012Percentage of Employees with High Levels of Discretionary Effort

effort levels increased by 0.9% quarter-over-quarter, setting another four-year high.

• On a year-over-year basis, O a yea o e yea bas s,almost 7% more employees globally are now reporting high levels of discretionary effort.

18 3%19.9%

30%

17.3%17.8%

12.8%

12.0%12.1%

14.8%

13.4% 12.8% 13.1% 13.1%14.2%

18.3%17.9% 19.0%

15%

0%1H

20082H

2008Q1

2009Q2

2009Q3

2009Q4

2009Q1

2010Q2

2010Q3

2010Q4

2010Q1

2011Q2

2011Q3

2011Q4

2011Q1

2012

Quarter-over-Quarter Change 0.9% ↑

2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012


INTENT TO STAY FLAT OVER THE PAST After rising for five consecutive quarters intent

HALF YEARconsecutive quarters, intent to stay levels dipped slightly by 0.5% in the first quarter of 2012.

• Also in Q1, for the first time since the downturn the ranks

Percentage of Employees with High Levels of Intent to Stay

since the downturn, the ranks of passive candidates (i.e., employees who aren’t looking for a new job at all) shrank, and those who are actively looking increased to make up 27% of the global workforce.

27.4%29.8% 29.8%

31.8%

29 2% 28 4% 29.0%

31.7% 32.3% 32.9%

32.4%

40%

Download CLC Recruiting’sQuarterly Global Labor Market Briefing for more data. CLC Recruiting membership is required.

24.0%

27.4%29.2%

27.5% 26.1%28.4%

20%

0%1H 2H Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Quarter-over-Quarter Change - 0.5% ↓

1H 2008

2H 2008

Q1 2009

Q2 2009

Q3 2009

Q4 2009

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012


https://rr.executiveboard.com/Members/ResearchAndTools/Abstract.aspx?cid=101162445

https://rr.executiveboard.com/Members/ResearchAndTools/Abstract.aspx?cid=101162445

DISCRETIONARY EFFORT TRENDS BY FUNCTIONFUNCTION

Percentage of Employees with High Levels of Discretionary Effort by Function

Function Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Quarter-over-

Quarter Change

Customer Service and Call 14 5% 13 6% 13 5% 14 8% 15 6% 20 4% 18 6% 19 0% 20 1% 1 1% ↑Customer Service and Call Center 14.5% 13.6% 13.5% 14.8% 15.6% 20.4% 18.6% 19.0% 20.1% 1.1% ↑

Engineering and Research and Development 8.7% 9.7% 9.6% 9.4% 11.3% 14.8% 17.1% 15.2% 17.6% 2.4% ↑

Finance and Accounting 14.9% 14.0% 13.4% 15.6% 13.5% 19.5% 15.0% 18.9% 19.5% 0.6% ↑

Human Resources 18.6% 18.6% 15.6% 19.0% 17.9% 24.0% 23.0% 22.0% 23.5% 1.5% ↑

Information Technology 10.5% 10.7% 10.7% 12.0% 11.5% 15.5% 16.4% 17.1% 17.2% 0.1% ↑

Manufacturing 13.7% 13.7% 11.6% 12.6% 13.6% 17.0% 17.8% 16.8% 18.0% 1.2% ↑g ↑

Operations, Procurement, and Supply Chain 15.8% 15.3% 14.1% 17.6% 17.3% 21.8% 20.7% 20.8% 22.3% 1.5% ↑

Retail 20.4% 15.7% - 18.4% 19.3% 23.1% 21.6% 23.8% 23.6% -0.2% ↓


Sales and Marketing 12.2% 11.8% 9.7% 11.1% 13.0% 18.1% 18.0% 19.4% 19.4% 0.1% ↑

INTENT TO STAY TRENDS BY FUNCTION

Percentage of Employees with High Levels of Intent to Stay by Function

Function Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Quarter-over-

Quarter Change

Customer Service and Call 26 5% 24 1% 24 6% 27 4% 25 5% 28 8% 29 3% 30 4% 30 9% 0 5% ↑Customer Service and Call Center 26.5% 24.1% 24.6% 27.4% 25.5% 28.8% 29.3% 30.4% 30.9% 0.5% ↑

Engineering and Research and Development 28.5% 27.5% 26.6% 25.2% 23.0% 25.6% 28.4% 24.9% 28.4% 3.5% ↑

Finance and Accounting 37.5% 33.9% 29.8% 32.6% 29.6% 32.9% 33.1% 31.7% 32.4% 0.7% ↑

Human Resources 29.6% 27.4% 26.6% 27.8% 28.1% 29.7% 38.6% 39.1% 36.3% -2.8% ↓

Information Technology 27.4% 24.3% 22.7% 22.6% 24.3% 28.5% 25.7% 26.9% 26.0% -0.9% ↓

Manufacturing 31.2% 31.0% 26.8% 29.9% 28.6% 30.7% 33.0% 32.3% 32.0% -0.3% ↓g ↓

Operations, Procurement, and Supply Chain 30.2% 27.7% 25.2% 30.8% 31.5% 32.6% 35.8% 37.0% 36.2% -0.8% ↓

Retail 26.2% 23.4% - 25.8% 27.6% 29.0% 31.7% 31.5% 29.5% -1.9% ↓


Sales and Marketing 29.5% 27.8% 25.3% 27.2% 27.3% 27.9% 29.3% 31.0% 31.2% 0.1% ↑

DISCRETIONARY EFFORT TRENDS BY INDUSTRY

Percentage of Employees with High Levels of Discretionary Effort by Industry

INDUSTRY

Industry Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012Quarter-

over-QuarterChange

Consumer Goods Manufacturing 14.7% 15.4% 12.1% 15.4% 23.0% 17.3% 18.9% 22.5% 3.6% ↑ManufacturingDurable Goods Manufacturing 12.9% 13.1% 12.9% 12.8% 18.1% 18.0% 18.3% 19.4% 1.0% ↑

Energy and Utilities 14.0% 14.4% 11.7% 13.6% 17.9% 17.1% 18.4% 17.4% -1.0% ↓

Financial Services and 13 8% 12 4% 15 1% 13 5% 18 9% 17 9% 19 2% 19 4% 0 2% ↑Financial Services and Insurance

13.8% 12.4% 15.1% 13.5% 18.9% 17.9% 19.2% 19.4% 0.2% ↑

Government/Non-Profit/Education 14.1% 15.8% 14.5% 15.8% 21.0% 21.1% 20.3% 21.2% 0.9% ↑

Healthcare and Pharmaceuticals 16.8% 15.1% 19.0% 18.9% 22.9% 21.4% 19.8% 21.5% 1.7% ↑

Professional Services 15.8% 16.1% 15.3% 14.4% 19.1% 19.1% 20.4% 19.8% -0.6% ↓

Retail/Restaurant 16.0% 16.3% 16.8% 18.2% 23.1% 20.9% 21.9% 22.9% 1.1% ↑

Technology and T l i ti 12.6% 8.3% 11.5% 11.1% 16.6% 16.6% 18.0% 16.8% -1.2% ↓


Telecommunication 12.6% 8.3% 11.5% 11.1% 16.6% 16.6% 18.0% 16.8% 1.2% ↓

INTENT TO STAY TRENDS BY INDUSTRY

Percentage of Employees with High Levels of Intent to Stay by Industry

Industry Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012Quarter-

over-Quarter Change

Consumer Goods Manufacturing 24.8% 24.4% 28.6% 26.8% 31.0% 29.7% 30.2% 31.9% 1.7% ↑ManufacturingDurable Goods Manufacturing 24.5% 22.3% 26.3% 27.5% 29.3% 28.9% 30.2% 29.9% -0.3% ↓

Energy and Utilities 24.4% 28.8% 29.9% 28.1% 35.4% 33.1% 34.6% 31.1% -3.5% ↓

Financial Services and 22 3% 23 8% 28 8% 28 7% 31 1% 32 0% 31 2% 31 2% 0 0%Insurance

22.3% 23.8% 28.8% 28.7% 31.1% 32.0% 31.2% 31.2% 0.0% ↔

Government/Non-Profit/Education 34.3% 33.3% 34.0% 36.3% 38.2% 38.5% 38.8% 38.4% -0.4% ↓

Healthcare and Pharmaceuticals 29.6% 28.7% 34.1% 33.0% 37.7% 36.1% 36.0% 37.6% 1.6% ↑

Professional Services 28.6% 27.7% 29.1% 29.3% 33.7% 31.4% 33.8% 32.3% -1.5% ↓

Retail/Restaurant 24.1% 23.0% 23.7% 27.6% 28.4% 29.2% 29.0% 28.0% -1.1% ↓

Technology and Telecommunication 19.3% 19.4% 20.4% 23.9% 26.6% 26.9% 28.0% 25.1% -2.9% ↓


Telecommunication

REGIONAL ENGAGEMENT OUTLOOK

After rising for six quarters in a row, intent to stay levels in Europedeclined by 1.4% in Q1 2012.

Employees in North America reported another quarterly increase in what was already the highest Both discretionarywas already the highest level of discretionary effort of all major regions. Intent to stay remained relatively flat.

Both discretionary effort and intent to stay improved by about 0.5% in Asiaduring Q1 2012.

Australia and New Zealand reported the largest quarterly increase in discretionary effort of 1.8% but also the largest decrease in intent to stay of 1.7%.


Note: North America includes Canada, Mexico, and the U.S.; Europe includes Belgium, Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Spain, Sweden, Switzerland, and the UK; Asia includes China, India, Indonesia, Japan, Malaysia, the Philippines, Singapore, and South Korea.

DISCRETIONARY EFFORT TRENDS BY REGION

Percentage of Employees with High Levels of Discretionary Effort by Region

REGION

Region Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Quarter-

over-Region 2010 2010 2010 2010 2011 2011 2011 2011 2012 Quarter Change

Asia - 6.8% - 7.9% 7.6% 12.3% 11.9% 12.4% 12.8% 0.4% ↑

Australia and New Zealand 15.5% 20.3% - 20.3% 22.5% 25.0% 22.3% 21.0% 22.8% 1.8% ↑

Europe 9.5% 11.8% 11.8% 12.8% 13.5% 16.9% 16.6% 18.6% 18.5% -0.1% ↓

North America 23.5% 20.8% 19.9% 19.8% 21.6% 27.3% 27.2% 27.0% 28.1% 1.2% ↑

Note: North America includes Canada, Mexico, and the U.S.; Europe includes Belgium, Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Spain, Sweden, Switzerland, and the UK; Asia includes China India Indonesia Japan Malaysia the Philippines Singapore and South Korea


*Data is unavailable for some quarters due to low sample size.

Asia includes China, India, Indonesia, Japan, Malaysia, the Philippines, Singapore, and South Korea.

INTENT TO STAY TRENDS BY REGION

Percentage of Employees with High Levels of Intent to Stay by Region

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Quarter-

over-2010 2010 2010 2010 2011 2011 2011 2011 2012 Quarter

Change

Asia - 15.0% - 16.1% 15.8% 18.5% 20.1% 19.1% 19.6% 0.5% ↑

Australia and New Zealand 30.4% 31.0% - 33.0% 33.8% 33.0% 36.4% 37.0% 35.3% -1.7% ↓

Europe 29.4% 27.6% 31.5% 32.4% 33.0% 37.5% 37.9% 38.8% 37.4% -1.4% ↓

North America 38.1% 33.1% 31.9% 32.5% 33.5% 35.0% 35.1% 35.9% 35.9% 0.1% ↑

Note: North America includes Canada, Mexico, and the U.S.; Europe includes Belgium, Denmark, France, Germany, Italy, the Netherlands, Norway, Spain, Sweden, Switzerland, and the UK;


*Data is unavailable for some quarters due to low sample size.

Asia includes China, India, Japan, Malaysia, the Philippines, Singapore, and South Korea.

APPENDIX


Departure View is a comprehensive survey, CLC HR DEPARTURE VIEW SURVEYcomprehensive survey, benchmarking, and analytics resource that helps organizations survey their departing employees and receive detailed and objective feedback on

CLC HR Departure View: Online User Dashboard

employees’ reasons for leaving.

• Participation is included in the CLC Human Resources membership.

• More than 100 member organizations use Departure View and contribute to the global benchmark.

• Visit the CLC HR website to learn more about Departure View or contact us directly at [email protected].

CLC HR Departure View: User Feedback

“The new CLC Exit Survey tool is available at just the right time to us as an organization. We're very excited to have access to this valuable data which can be used to help inform our executive teams and further improve our Employee Value Proposition. The report also identifies whether that future employer i t id i d t di t tit “

"Departure View was the right solution. CLC's reputation and strong member base, as well as the simplicity of the Departure View launch process and robust reporting capabilities, made it an

h i f "


is outside our industry or a direct competitor.“

-- Tom BrownVP, Human Resources Americas

Juniper Networks

easy choice for us."

-- L. RussenHR Manager

Sony Electronics

https://clc.executiveboard.com/Members/ExitSurvey.aspx

The Recruiting Effectiveness Dashboard (RED) is a survey RECRUITING EFFECTIVENESSDashboard (RED) is a survey solution that collects information on quality of hire and recruiting effectiveness from new hires, hiring managers, and internal transfers.

DASHBOARD (RED)CLC Recruiting: Recruiting Effectiveness Dashboard

• Participation is included in the CLC Recruiting membership.

• More than 100 CLC Recruiting member organizations use RED and the globalRED and the global benchmarks include more than 200,000 completed surveys.

• Visit the CLC Recruiting website to learn more about RED or contact us directly at [email protected].


https://rr.executiveboard.com/Members/RED/Default.aspx

Originally developed in 2006 CLC’s EVP model

DEFINITIONS OF EVP ATTRIBUTES2006, CLC’s EVP model consists of 38 attributes that drive attraction and retention.

• A master list of more than 200 employment characteristics was compiled and evaluated for similarity, distinctiveness, universality, and overall ratability, leading to the consolidated list of 38

tt ib tattributes.

• This final list of 38 attributes can be grouped into five categories: Rewards, Opportunity, Organization, Work, and People.


Originally developed in 2006 CLC’s EVP model

DEFINITIONS OF EVP ATTRIBUTES2006, CLC’s EVP model consists of 38 attributes that drive attraction and retention.

• A master list of more than 200 employment characteristics was compiled and evaluated for similarity, distinctiveness, universality, and overall ratability, leading to the consolidated list of 38

tt ib tattributes.

• This final list of 38 attributes can be grouped into five categories: Rewards, Opportunity, Organization, Work, and People.


SURVEY PARTICIPANT DEMOGRAPHICSThe EVP and engagement data in this report comesdata in this report comes from CLC HR’s Quarterly Global Labor Market Survey, which polls approximately 18,000 employees in 28 countries during the first month of every quartery q


CORPORATE EXECUTIVE BOARD

WWW.EXECUTIVEBOARD.COM

Documents

CLC Quarterly Global Workforce Bench Marking Report Q1 2012