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. Best Employers Indonesia is part of a 12-country study of the Best Employers in Asia Pacific, built on a clearly articulated framework of four measurable key themes, identified as critical for today’s HR agenda:

• High Employee Engagement
• Compelling Employer Brand
• Effective Leadership
• High Performance Culture

With 12 years of experience conducting Best Employers research, Aon Hewitt has fine-tuned its approach and methodology based on the changing HR trends in Asia Pacific by means of its professional, data-driven approach that collects data from three distinct sources: employees, HR and the CEO. In addition, an external, independent judging panel composed of reputable business, academic and media leaders is appointed to blindly deliberate and decide on each year’s list of Best Employers. 

From the data collected, the results provide invaluable insights and best practices to employers and HR professionals in Indonesia as to how they can better manage talent and improve their business results. They also provide a useful benchmark against other countries in the region, as well as other parts of the world.

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

1. Employee Engagement

• Highest Engagement Score in Asia Pacific: Indonesia 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.

• 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.

• 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. “Best Employers know how to engage Gen Y by offering activities and initiatives that are aligned with their competitive nature, and not merely rewarding them with financial incentive”, Lusi Lubis, managing director of Aon Hewitt in Indonesia explains.

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), the score for Gen Y is also the lowest among the different population segments.

The table at the bottom of the press release shows that Gen Y is the least engaged as a population segment. Addressing this gap by tailoring HR programs specifically to Gen Y skills and expectations is a prime opportunity for organizations seeking to improve their employee engagement level.

Career opportunities, brand alignment and benefits continue to be top drivers for improving employee engagement in Indonesia, including Generation Y populations. Key engagement drivers for Gen Y and Junior Management are also unique in that both populations rank “pay” more importantly (fourth), while it is not even ranked among the top six driving factors by other generations.

2. Compelling Employer Brand:

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 research shows that while most organizations in Indonesia believe they have a defined employer brand, the delivery of the associated employer promise is not clearly perceived by their employees.  Only 7 percent of participating organizations reported complete alignment between CEO and HR on the definition of their employer brand. This presents a clear opportunity for employers to ensure that their employee value proposition (EVP) is compelling and unique and that they deliver effectively on that proposition for new, as well as long-serving, employees. Organizations also need to ensure that their EVP is embedded in all activities of human resources management from recruitment induction through to performance management and the reward system.

3. Effective Leadership:

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.

Aon Hewitt’s research reveals that only three in five employees felt their leaders had a strong people focus or agreed with the statement “Our senior leaders treat employees as this organization’s most valued asset”, suggesting that improvements in listening to employee needs and an open and honest communication style would have a positive impact on employees’ appreciation of their leaders.

4. High Performance Culture:

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.

Analysis of data also shows that people managers are able to articulate the link between employees’ performance goals and their organization's business goals, with 72 percent of employees agreeing with the accountability statement: “I understand how my work goals relate to the organization’s goals”. However, they are less successful in career management, as only 53 percent of the market agreed with the statement “My future career opportunities here look good”. Best Employers, on the other hand, fared much better at 76 percent.

This presents an opportunity for organizations in Indonesia to review their career management programs, improve their managers' understanding of them, and build their capability to communicate, coach and mentor their team to strive for excellence. Following this recommendation will help employers to overcome two of their biggest business challenges − building a leadership pipeline and that management has the capability to support business operations and growth.

Aon Hewitt Best Employers Indonesia ‘Best of the Best’ Award went to PT. Adira Dinamika Multi Finance, while Best Employers awards went to Tbk PT. Birotika Semesta (DHL Express Indonesia, Ltd.), PT. Microsoft Indonesia, The Ritz Carlton Jakarta, Mega Kuningan PT. Wijaya Karya (Persero), Tbk. The Best Employee Commitment to Engagement award went to PT. Johnson Home Hygiene Products, and the Best Employer for Generation Y was awarded to PT. Adira Dinamika Multi Finance

“Being on the Best Employer list is like receiving a 'gold medal' for business excellence”, said the CEO, PT. Johnson Home Hygiene Products. “We take this study seriously because it helps highlight our improvement areas and how we can continue to develop our talent practices towards being best in class”.

"Best Employers triggered us to invest in new breakthrough people-development programs”, added the
Director of Human Capital and Business Development, PT. Wijaya Karya (Persero) Tbk., Indonesia.

Participation in Aon Hewitt’s survey brings a wide range of benefits to organizations, such as discovering how employees perceive and rate their employer, the reasons why they are attracted to certain employer brands, and the type of organizational culture they value sufficiently to “stay and strive.” The study also provides a benchmark against company competitors in the market. Participating organizations gain access to Aon Hewitt’s latest market research insights, along with the best and most innovative people practices of Best Employers.

New academic partnership announced.

As part of its ongoing focus to gain insights into companies that are creating real competitive advantage through their people, to explore the various factors that make a workplace of choice, and to identify the Best Employers in Indonesia, Aon Hewitt has announced that the next Best Employers Program − Indonesia 2015 will be conducted as an exclusive academic partnership with Institut Teknologi Bandung's prestigious School of Business and Management (SBM-ITB).

 “We are delighted to be inaugurating a new partnership with a prestigious academic institution such as SBM-ITB,” said Lusi Lubis, managing director of Aon Hewitt in Indonesia. “This partnership will bring synergy into the respective research effort of what makes a best employer and the trends in workforce practices, thus raising the profile of our study and attracting more attention from both the business and academic world. This will only bring benefits to the future development of businesses in Indonesia”.

“This partnership with Aon Hewitt makes perfect sense,” said John Welly M.Sc., associate professor of SBM-ITB.  “It will bring data-backed insights for students, alumni, faculty, partners at large, and the Indonesia business community on the best practices in human capital management and its impact on business performance.  Aon Hewitt empowers organizations through innovative talent, retirement and health solutions, and SBM-ITB is Indonesia’s leading educational provider for graduate management studies and is one of the best international institutions of management education in the Asia Pacific region.  SBM-ITB emphasizes cross-cultural experience, knowledge creation and management practice with an Asian perspective. Our goals align perfectly through the Aon Hewitt Best Employers collaboration research and promotion of best practices”.

The announcement of the Best Employers – Indonesia 2015 awards, results and insights will be released in the first quarter of 2015.

While the Best Employers study recognizes organizations that display standards of excellence, the journey to get there is one that Aon Hewitt recommends for every organization to embark upon. “For organizations that don’t make it to the Best Employers list, but are aspiring to become Best Employers, we want to reinforce that becoming an Aon Hewitt Best Employer doesn’t happen overnight,” said Gabriela Domicelj, Asia Pacific engagement practice leader and Best Employers Study lead at Aon Hewitt. “It is possible for everyone to become a Best Employer, if you’ve articulated the destination you want to head to and have planned your journey wisely.”

To find out more about the Aon Hewitt Best Employers Asia Pacific 2015 Program, please visit www.bestemployersasia.com or contact Edo Irfandi, at edo.irfandi@aonhewitt.com Tel: +62.21.2985.8598

 

---end---

Sign up for News Alerts:  http://aon.mediaroom.com/index.php?s=58
Follow Aon Hewitt on Twitter @AonHewittAPAC

About Aon Hewitt

Aon Hewitt empowers organizations 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 organizational 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.com.

About Aon

Aon plc (NYSE:AON) is the leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 65,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative and effective risk and people solutions and through industry-leading global resources and technical expertise. Aon has been named repeatedly as the world’s best broker, best insurance intermediary, reinsurance intermediary, captives manager and best employee benefits consulting firm by multiple industry sources. Visit www.aon.com for more information on Aon and www.aon.com/manchesterunited to learn about Aon’s global partnership and shirt sponsorship with Manchester United.

About The school of Business and Management Institut Teknologi Bandung (SBM-ITB)

The school of Business and Management Institut Teknologi Bandung (SBM-ITB) is the brainchild of ITB leaders. In 2003, ITB formally established its School of Business and Management to cater to both MBA and Undergraduate Programs with a solid vision to become a world-class institution that inspires and develops new leaders with entrepreneurship spirit. As one of the best business schools in Indonesia, SBM-ITB collaborates with other world-class universities to run programs targeted at senior executives and business owners who seek quality education to become global leaders of the future. SBM-ITB has partnerships with academic institutions in Europe, Asia and Australia, including student exchanges, joint research and business incubation.

SBM-ITB academic programs include the Bachelor of Management, Bachelor of Entrepreneurship, Master of Business Administration (MBA), Master of Science in Management (MSM), and an upcoming Doctorate of Science in Management.

Media Contacts: 

Cheryl Widjaja

Tel: + 62.21.2985.8594

cheryl.widjaja@aonhewitt.com

Dian Fahmi

Tel: +62.21.739.9928

dian@cognito.co.id

---