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HR Connect New Zealand – Volume 3, Issue 4, 2014
Achieve engagement goals by engaging leaders
You’ve probably heard it before – employee engagement matters. Year after year, Aon Hewitt’s Best Employers research has shown that engaged employees deliver better business results, are more connected and committed to their work, and strive to go above and beyond far more than their less engaged peers – this is especially so during times of change.
Fundamental to creating a highly engaged organisation is the engagement of leaders. Best Employers data reveals it can create a multiplier effect on engagement across all levels of the business. They’ll do a better job of engaging others, particularly middle management. This flows down further with engaged managers more likely to build engaged teams which translates into better business results. The effect has been confirmed in work we’ve done with clients; where in one example, a large Australian organisation with over 30,000 employees, a highly engaged leader was able to engage on average 70% of their direct reports, versus an actively disengaged leader who engaged on average only 33% of those reporting to them.
The engaging leader has a unique profile. Our work with Best Employer organisations and Top Companies for Leaders has revealed some interesting findings about the experiences, beliefs and behaviours of leaders.
Our research produced amazingly consistent results, which led to the development of The Engaging Leader Report and Engaging Leader model. We learned that at their core, engaging leaders have 3 fundamental similarities that positively and exponentially impact the engagement of those around them. Their profile is built through their experiences, beliefs and what they do as a leader.
They typically have had early experiences that stretched them and allowed them to grow. The experiences then support and shape unique belief structures about their own sense of identity, they conduct themselves in an authentic way to act in service of their people and generally have an optimistic outlook. These experiences and belief systems ultimately manifest themselves in behaviours that exhibit the leader’s own sense of purpose and focus to inspire others, demonstrate personal connection and authenticity, and help others grow and develop.
Leaders who seize the opportunity to engage themselves, engage others, ultimately drive a culture of performance through their team. This leads to better business outcomes.
It’s therefore critical to understand what drives the engagement of leaders so that a workplace is created to foster a motivated, purposeful and engaged leadership team. As a demographic group, leaders are very different from other employee segments. Our 2014 Trends in Global Employee Engagement Report data shows that for the top 5 engagement drivers for all job levels globally, leaders only ranked one, career opportunities, on their individual top 5 list. Most uniquely, leaders value a culture focused on people and working constructively with their senior leadership peers.
To learn how these organisations and other Aon Hewitt Best Employers were able to achieve business goals through an engaged workforce, or to find out how Aon Hewitt can partner with you to provide innovative solutions to your leadership development and employee engagement needs get in touch with us today. Contact Jocelyn Anso on +64 9 362 9296 or [email protected], or Alison Hall on +64 9 362 9292 or [email protected].
KiwiSaver ‘Which Fund’ video series
When it comes to choosing a KiwiSaver fund to invest in, the choices can be overwhelming! Are you unsure which KiwiSaver fund is best suited for you?
Aon KiwiSaver Scheme recently took part in the KiwiSaver video series 'Which Fund?' where scheme providers talk about the different types of investment funds available and the risk profile attached to each. The aim of the video series is to provide information that might help you decide what type of investment fund suits you best.
In the videos, presenter Geoff Bryan asks a series of questions about the Aon KiwiSaver Scheme’s Conservative, Balanced and Growth funds, covering topics such as:
- where your money is invested,
- the risk and return assessment,
- what type of investor is best suited to a particular fund,
- management fees,
- how we communicate, and
- whether there is anything particularly good or different about the Aon KiwiSaver Scheme.
The videos are available on our Aon KiwiSaver Scheme website, or you can view all the interviews from KiwiSaver providers on the NZ Herald website.
So, why would you choose the Aon KiwiSaver Scheme?
Our Scheme offers the choice of thirteen different Investment Funds so you can choose the fund that suits you best and diversify your investments to make the most of your retirement nest egg.
To find out more about Aon KiwiSaver Scheme, and how it can help you save for your retirement goals view our Investment Statement (available at www.aonkiwisaver.co.nz), or contact our KiwiSaver Sales and Service Manager Amanda Beeslaar on +64 9 362 9184 or [email protected].
Protecting investment performance
As 2014 draws to a close, investors look set for another year of strong returns from investment markets. The average balanced fund in New Zealand should deliver around 10% (before tax and fees) to investors in 2014 (barring a sharp sell-off over the last few weeks of the year). This is in line with the returns received over the previous 5 years which have also averaged 10% p.a.
Performance has been strong across all asset classes, with equities and property faring best but bonds also providing good returns. However, many investment assets are now very highly valued (some would say overvalued) and it seems unlikely that returns over the next 5 years will match those that have been enjoyed since the end of the Global Financial Crisis 5 ½ years ago.
As a result, some investors are now trying to position their portfolios to protect the gains they have achieved and they are looking at including alternative asset classes, or different types of investment strategy to generate returns going forward.
Manager selection also remains an important consideration for maximising returns. While the average numbers look good across all asset classes, within asset classes, the performance of the different investment managers can vary considerably.
Looking at domestic equities for example, the best performing manager over the last 5 years has returned 17.6% p.a., compared with 12.5% p.a. for the worst performer. This difference amounts to nearly 30% over the full period, and highlights the importance of selecting the right manager.
Of course selecting managers is not simply a case of looking for ones with good recent performance – consistent above average performance is much more important than short periods of brilliance. The best performing New Zealand equity manager in 2010 was by far the worst performer in 2011, and the worst performing fund in 2013 had been one of the best in 2012.
Performance, both short and long term, is only one factor to consider when selecting a manager. Aon Hewitt has a detailed and robust process for ensuring that our wholesale clients can choose the investment manager best suited to their particular needs and objectives.
The figures quoted above all come from the Aon Investment Update, a quarterly survey of New Zealand wholesale investment managers which is published by Aon Hewitt. The latest survey can be found here. All returns quoted are before tax and deduction of any fees.
Aon Hewitt also provides investment consulting services, including asset allocation and manager selection, to a range of institutions, public and private companies, superannuation schemes, iwi, community trusts and charitable trusts. For further information on this, or if you’d like to be added to our mailing list for the Aon Investment Update please contact Guy Fisher on +64 4 819 4054 or email [email protected].