Indonesian Companies Urged to Capitalize on Improving Employee Engagement

Indonesia has demonstrated steady improvement in employee engagement scores showing 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, finds a study by Aon Hewitt.

With GDP growth at 6 percent annually since 2007 and the unemployment rate steadily falling from 9.75 percent in 2006 to 5.92 percent in 2013 and growing expectations from CEOs to raise the bar on human resources, the future will be challenging for HR professionals in Indonesia, if they want to stay ahead and win the war for talent.

The Best Employers Indonesia study, conducted by Aon Hewitt, suggests that 67 percent of participating CEOs consider “People Issues” as the top business challenge impacting their organization’s ability to succeed.

The primary concerns identified on the talent front are: the availability of critical skills, the ability to build an adequate leadership pipeline, and the capability of management to support business operations.

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.”

These drivers are benefits (73 percent), pay (76 percent), career opportunities (76 percent), and brand alignment (76 percent).

The most prevalent message Indonesia employers are emphasizing in their employer brand is pride in the organization’s products and services and the brand name.

Best Employers score 10 percent higher on average on each of the leadership indices − future vision, people focus and business excellence, reflecting their deliberate effort to hone in on their leadership skills.

All Best Employers (100 percent) have internal leadership training programs compared to 93 percent of the market average.

The majority of participating organizations in Indonesia have been more focused on external training and degree programs while Best employers focus on providing internal programs and developmental assignments.

Performance management systems at Best Employers are perceived to be more effective by their employees: 81 percent of the employees at Best Employers agreed that “The way we manage performance here enables me to contribute as much as possible to our organization’s success,” as compared with 69 percent of employees at other organizations.

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