Aon Hewitt 2011 Talent Survey

Consulting
Talent & Rewards
2011 Talent Survey

Igniting a High-Performance Culture

The economic challenges of the past three years have reduced organizations ability to deliver on
their employer-employee contract. Often benefits or payor bothhave been scaled back.
Collegiality and productivity of work environments have suffered. Although these decisions were
necessary, they adversely impacted employees view of their organization and work experience.
In 2010, an Aon Hewitt study of employee engagement found that:
Just over half of employees are disengaged;
There is a significant turnover risk (even among engaged employees); and
n Employees are stressed and exhausted; a result of doing more with less.
n
n
The Aon Hewitt 2011 Talent Survey results build on these findings and emphasize the role that
employee engagement plays in driving business resultsboth failures and successes. Our 2011
respondents report that engagement continues to be low, and employees have become myopic,
more focused on their personal situation and less concerned with what they can do to help
the company succeed. And, we see a striking lack of confidence in leaders ability to deliver on the
factors that will steer their organization in the right direction and motivate a disengaged workforce.
What can organizations do to re-ignite the passion of their workforces and create a high-performance
culture that will spark and sustain recovery?
Reinstating programs that have been cut and getting back to normal will simply yield middle-ofthe-road results. We are challenged to create a new normal. We must be bolder, more aggressive,
nimble, and, in many ways, smarter about how we manage our employees. Fresh ideas, new
approaches, and rapid alignment strategies will lead to greater market share. The race to the new
normal will create winners, as well as recession casualties.
Aon Hewitts 2011 Talent Survey examines what organizations are doing today and what they plan to
do in the future as they embark on efforts to re-engage workers and provide meaningful reasons for
them to stay. In doing so, they will build stronger, more resilient, more innovative, more productive
and more fun organizations.
We hope these findings are helpful to your organization as you focus on building a strong future with
a highly engaged workforce.
Sincerely,
Kathryn J. Hayley
Chief Executive Officer
Consulting Americas
Aon Hewitt
2011 Talent Survey

Contents
3 2011 Talent Survey Executive Summary
9 Engagement Findings:
Engagement Drives Passion and Productivity
17 Leadership Findings:
The New Normal Demands New Leadership
21 Talent Acquisition Findings:
Focus on Quality New Employees over Quantity
27 Next-Generation Communication Findings:
Communication in the New Age of Employee
Engagement, Recruitment, and Productivity
31 Survey Data
2011 Talent Survey

Executive Summary
For the fifth consecutive year, Aon Hewitt surveyed employers across the
United States to examine their talent practices, strategies, and challenges.
The survey was conducted in late fall 2010, as the nation begins to
slowly emerge from the worst financial crisis in modern history. We find
organizations optimistic and cautiously beginning to change their focus
from reducing costs to growth strategies.
2011 Talent Survey
Summary of Findings
As leaders transition toward growth, there is an increased focus on human

capital: identifying and actively engaging the most critical employees,
rapidly aligning the workforce around change, and thinking creatively about
how to ensure that cost is managed to get the most out of every HR
dollar spent.
In this report, Aon Hewitts 2011 Talent Survey, we examine survey
responses in four areas: leadership, engagement, talent acquisition,
and next-generation communication. We report on:
n
Key Findingsas identified by our respondents
Commentary and Calls to Actionsteps to position your organization

for success
n
Survey Datathe complete findings for your reference
Engagement Drives Passion The economic challenges of the past three years have significantly impacted
and Productivity organizations ability to deliver on their employer-employee contract.
Employee engagement is at an all-time low. And yet, for the past two years,
retention levels have been at an all-time high, driven in large part by
a close to 10% U.S. unemployment rate. With fewer companies hiring,
consolidation of businesses and processes, off-shoring, outsourcing,
and fewer mature employees leaving the workforce, many employees
have become reluctant to stray from their current employer.
As the economy shows signs of recovery, employees will begin to consider
greener pastures. What happens if theres a mass exodus of key talent
just as an organization is moving toward recovery? Organizational leaders
are concerned and engagement strategies are a reported priority.
Key Findings:
n
Engagement of critical talent is a top concern.
Engagement levels are low and there is a lack of confidence that leaders
can retain their critical talent.
n
Total rewards plays a significant role in engaging a workforce.
Middle management will be critical to business strategy execution and

engaging the workforce.
n
Aon Hewitt
The New Normal Demands Talented, effective, creative, and respected leaders have a dramatic impact
New Leadership on employee engagement, innovation, and profitability. In an economic
environment where change is the norm, leaders are finding themselves
ill-equipped to adapt and become a catalyst for change. In this years
survey, one striking finding is the perceived lack of leaders effectiveness
in delivering on the success factors that are critically important.
Key Findings:
n
There is a perceived gap in leadership effectiveness.
There is a general lack of confidence in leaders ability to drive change.
Focus on Quality New Employees With job cuts and unemployment stabilizing, and business recovery on
over Quantity the horizon, HR executives can look toward strategically growing their
workforces. Forty-five percent of respondents anticipate slightly to
significantly greater hiring volumes than in the past year. Only 16% of
the responding organizations anticipate slightly or significantly less
hiring this year compared to last. Respondents also report an increased
focus on the quality of candidates, citing a priority for more productive
employees. With those directives, the shrunken talent acquisition function
must be bolstered with the required employees to match business demand.
Key Findings:
n
Top hiring priority is quality, not quantity.
The talent acquisition function is a strong candidate for

process improvement.
n
Social media is an emerging, but not yet prevalent, sourcing channel.
Communication in the New Age Most respondents agree that their organizations value the role that
of Employee Engagement, communication plays in engagement and retention; they also agree that
Recruitment, Productivity they are not very good at it. Most acknowledge that their communications
could be more effective at impacting employee behavior. They also report
a wait-and-see approach to social media tools, with only 16% of
organizations investing in this area.
Key Findings:
n
Traditional employee communication tools are still prevalent.
Change communication is easier said than done.
Social media networks are not prevalent in HR (yet).
2011 Talent Survey
Participant Demographics
A total of 1,328 individuals participated in Aon Hewitts 2011 Talent Survey.

The confidence interval is 95% +/- 2%-6%. Numbers in this document
are rounded.
The participant profile is as follows:
Organization Size
>5000
27%
500-5000
39%
<500
34%
Respondent Title
C-Suite
17%
Director
38%
Manager
28%
Professional
14%
Support
3%
Aon Hewitt
Respondents by Industry
Industry
Percentage
Accommodation and Food Services
1%
Agriculture, Forestry, Fishing, and Hunting
0%
Arts, Entertainment, and Recreation
1%
Construction
2%
Educational Services
5%
Federal Government
1%
Finance and Insurance
11%
Health Care and Social Assistance
10%
Information
1%
Management of Companies and Enterprises
1%
Manufacturing
18%
Mining and Quarrying
0%
Not-for-Profit
6%
Professional, Scientific, and Technical Services
7%
Real Estate and Rental and Leasing
2%
Retail Trade
4%
State and Local Government
5%
Technology
6%
Telecommunications
2%
Transportation and Warehousing
2%
Utilities
3%
Other Services (Except Public Administration)
8%
2011 Talent Survey
Aon Hewitt
Engagement Findings:
Engagement Drives Passion and Productivity
The economic challenges of the past three years have significantly impacted
organizations ability to deliver on their employer-employee contract.
Employee engagement is at an all-time low. And yet, retention levels have
been at an all-time high for the past two years, driven in large part by
a close to 10% U.S. unemployment rate. With fewer companies hiring,
consolidation, off-shoring, outsourcing, and fewer employees retiring,
many have become reluctant to stray from their current employer.
2011 Talent Survey
Key Findings
As the economy shows signs of recovery, employees may begin to consider

greener pastures. What happens if theres a mass exodus of key talent
just as an organization is moving toward recovery?
The Aon Hewitt 2011 Talent Survey shows that:
n
Engagement of critical talent is a top concern.
Engagement levels are low and there is a lack of confidence that leaders
can retain their critical talent.
n
Total rewards plays a significant role in engaging a workforce.
Middle management will be critical to business strategy execution and

engaging the workforce.
n
Engagement of critical talent Retaining and engaging the workforce is a business-critical focus coming
is a top concern out of the global recession, with more than half of the leaders rating them
as two of their top three concerns:
n
Talent retention (31%)
Business strategy execution (18%)
Engagement of employees (16%)
When asked to anticipate the HR actions mostly likely to occur in 2011, we

again see a concern about acquiring, keeping, and developing talent:
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61% anticipate an increased focus on talent development
Nearly 40% anticipate an increased focus on hiring
Nearly one-third anticipate increased turnover
As the nation emerges from the most

recent economic crisis, please select
the area of greatest concern to you.
Area of Concern
Percentage
Aging workforce/retirements
9%
Business strategy execution
18%
Development of leaders to take on more

critical work
10%
Engagement of employees
16%
Leading change
6%
Retention of top talent
31%
Succession planning
8%
Other
3%
Engagement levels are low and there When asked about their employees current level of engagement, 45% of
is a lack of confidence that leaders can employers dont believe that their employees are focused on the job,
retain critical talent 43% dont feel that their employees are immersed fully in their work, and
40% dont believe that their employees are driven to do whatever it
takes to do their jobs.
Please indicate the extent to

which you agree or disagree
with each statement.
Strongly
Agree
Agree
Neutral
Disagree
Strongly
Disagree
The majority of employees in this

organization are passionate
and enthusiastic about their work.
15%
52%
22%
10%
1%

organization are devoted to getting
the job done right.
22%
64%
11%
3%
0%
The majority of employees in

this organization are immersed
fully in their work.
7%
50%
31%
12%
0%

organization are focused and concentrate
intensely while on the job.
6%
49%
34%
11%
0%

organization are driven to do whatever
it takes to complete the job.
11%
50%
30%
9%
1%
2011 Talent Survey
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The respondents of Aon Hewitts 2010 Engagement 2.0 Study echo this
concern and provide clear evidence that the actions taken during the
global recession have impacted employee engagement. Theres a chink
in the foundation of the employer-employee relationship:
n
Over 50% are passive or actively disengaged
42% are not energized by their work
Only 43% trust in senior leadership
40% are generally stressed to the point of feeling burned out
64% are physically exhausted when they get home from work
Respondents generally think that leaders play a significant role in the

attraction and retention of key talent, but many agree that they may not
be able to follow through:
73% agree that senior leaders play a very or extremely important role in
attracting talent
n
83% agree that senior leaders play a very or extremely important role
in retaining talent
n
Only 33% rate their leadership as very or extremely effective in retaining

the talent they need for the future
n
Less than one-third feel that leaders are very effective in hiring more
productive employees
n
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Aon Hewitt
Total rewards plays a significant role in Total rewards spend is one of the largest ongoing corporate costsyet,
engaging the workforce the intended outcomes of this spend are not well articulated, understood,
measured, or realized. Respondents to the Aon Hewitt 2011 Talent Survey
report that the current management of the cost of total rewards is half as
effective as its importance.
Indicate how important

managing the cost of total rewards
is to your organization.
Extremely
Important
Very
Important
Important
Somewhat
Important
Not
Important
Importance
25%
36%
29%
8%
3%
Indicate how effective your

HR organization is at managing
the cost of total rewards.
Extremely
Effective
Very
Effective
Effective
Somewhat
Effective
Not
Effective
Effectiveness
12%
36%
37%
12%
3%
Only about half of responding organizations use annual total rewards

statements. Those that do are reaping benefits from the transparency.
Nearly 80% agree that total rewards statements are effective at helping
employees understand and appreciate the value of their benefits.
In addition, total rewards statements are reported to:
Please rate the effectiveness of your

annual total compensation or total
rewards statements at impacting
Improve retention (69%)
Improve employee engagement (63%)
Extremely
Effective
Very
Effective
Effective
Somewhat
Effective
Not
Effective
Employees understanding and

appreciation of the value of their
benefits and the organizations
substantial investment in them
11%
30%
37%
19%
2%
Employee/executive retention
8%
20%
41%
26%
5%
Employee engagement
4%
14%
45%
31%
7%
2011 Talent Survey
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Role of middle management will be Middle managers are the delivery mechanism to the workforce,
critical to business strategy execution communicating change and business strategy, developing models on how
and engaging the workforce the workforce will contribute to the businesss performance. Twenty-six
percent of respondents agree that middle managers are most essential for
carrying out critical work for the organization; nearly the same percentage
as choose senior management. And, when asked what the main issues are
that could prevent an organization from reaching its strategic goals quickly,
ineffective decision-making and siloed thinking behaviors were the top
two responses.
Middle managers are also perceived to be an at-risk attraction and retention
group. One-quarter of respondents report that middle managers will be
the most challenging in regards to attraction and retention. No other
position is thought to be more challenging.
What role in your organization do

you see as being most essential
for carrying out the critical work
of the organization? What role
in your organization do you see as
being most challenging in regards
to attraction and retention?
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Role
Most
Essential
Most
Challenging
Executives
12%
5%
First level management
12%
12%
Individual contributors
14%
17%
Middle management
26%
25%
Other specialist specific to our industry
4%
9%
Senior management
29%
19%
Technical/scientific specialists
4%
13%
Aon Hewitts Perspective
In the past few years, the employee contract has been disruptedand in
many cases decimatedas companies reacted to the economic downturn
and legislative changes with programmatic cutbacks and continued
shifting of benefits cost and risk onto employees. The Bureau of Labor
Statistics shows a decrease in productivity (output per hour worked)
for the first time in five consecutive quarters of strong productivity growth
since 2009. The concept of doing more with less may have just reached
a point of diminishing returns. Corporate stress and burnout are on the rise.
Igniting a high-performance culture may well have to start with engaging
the workforce. Highly engaged employees provide higher value. They
are more effective at producing high quality and innovative products/
services, and they more positively impact customer satisfaction, cost,
and revenue growth.
Getting back to normal may not be good enough. To re-engage the
disengaged and obtain an engagement lift, baseline rewards must meet
baseline needs. But, giving all employees exactly what they want is
unrealistic. A pragmatic approach is required for an immediate impact. Focus
on the highest-value employees. The 80/20 rule applies to human
capital20% of the organizations employees create 80% of the value.
Invest in identifying the 20%, the relative value that they provide, and
what they want. Then, deliver on those factors that are under your control.
Organizations may also design and market programs targeted at specific
high-value segments (e.g., generations, levels, job classes, or functions) to
drive specific desired outcomes from those groups.
Organizations are carefully considering the management and
communication of total rewards, defined as everything an employer
provides that employees perceive as rewarding or valuable. As we
have seen from much of the data reviewed here, total rewards are far
more than compensation and benefits. Leading companies are looking
holistically at data to understand what rewards program designs will drive
key employee outcomes. Not only do the drivers differ by employee
segment, they also differ across the spectrum of attraction, retention,
and engagement.
The key is to expend the appropriate level of organizational focus, attention,
and investment, commensurate with the relative value that an employee, or
employee group, creates.
2011 Talent Survey
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Leadership Findings:
The New Normal Demands New Leadership
Talented, effective, and respected leaders have a dramatic impact on
employee engagement, innovation, and profitability. They also
drive organizational change from the top, working through middle
management to translate strategy into tactical plans.
2011 Talent Survey
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Key Findings
In this years survey results, striking is the perceived lack of leaders

effectiveness in delivering on those success factors that are critically
important to lead the organization to the new normal.
n
There is a perceived gap in leadership effectiveness.
There is a general lack of confidence in leaders ability to drive change.
There is a perceived gap in When asked about the importance of leadership credibility, almost
leadership effectiveness unanimously (97%) respondents agree that leadership credibility is
important, very important or extremely important to the business strategy.
Respondents were then asked about importance and effectiveness of
current leadership for meeting business growth goals, driving innovation,
meeting profitability targets, delivering desired customer service levels,
ensuring safety, attracting talent, and retaining talent.
Respondents agree that leadership is extremely important for:
n
Meeting business goals (56%)
Meeting profitability targets (56%)
Delivering service (56%)
Retaining talent (44%)
Yet, less than 20% of respondents rank leadership as extremely effective

in the same categories:
n
Meeting business goals (12%)
Meeting profitability targets (14%)
Delivering service (17%)
Retaining talent (7%)
And, when asked if there is a shortage of qualified leadership, nearly 20%

report that there is a leadership shortage right now; another 15% expect a
shortage of qualified leadership in the next one to two years.
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There is a general lack of confidence in Respondents reflect a lack of confidence in their leaders ability to drive
leaders ability to drive change change or effectively communicate change. When asked about leaderships
ability to manage change, only 9% report success to an extremely high
extent and just 33% report success to a high extent. When asked about the
importance and effectiveness of change interventions, respondents report
significant gaps between extremely important and extremely effective:
When your organization implements

change, how important is each
of the following change initiatives?
How effective is your organization
at each?
Communicating change: 45 percentage point gap
Leadership alignment with change: 44 percentage point gap
Change Initiative
Extremely
Important
Extremely
Effective
Communication
55%
10%
Leadership alignment with the change
57%
13%
Aon Hewitts Perspective We operate in a world that is volatile, uncertain, and complex. Rapid-fire
change is the norm and is one of the biggest, if not the biggest, challenges
facing an organization. Yet, enterprises often find themselves ill-equipped to
adapt. So, change is often slow.
When continuous change is the norm, the entire leadership team must be
equipped to become catalysts for change. For many, this requires a new
set of capabilitiesone of the most important being creativity. Leaders must
now demonstrate speed and agility, navigate ambiguity and complexity,
develop middle managers, lift engagement, and deliver relevant messages.
We see the need for a revised set of leadership skills reflected in the survey
responses that confirms a lack of leadership effectiveness and inability
to lead the changes that are necessary. Organizations should evaluate
current leadership by assessing leaders against critical competencies,
and accelerating skill development in areas found lacking.
Mid-level managers, too, are vitally important to rapidly aligning an
organizations workforce around leaderships strategy and direction. They
are in a unique position to bridge the gap between strategy and employee
engagement, perceptions, and productivity. For a rapid alignment strategy
to work, mid-level managers must be equipped with the right tools, driven
by the senior leadership team, to internalize strategy, translate strategy into
decisive local action, and drive performance. Our survey results find
effective leadership communication lacking. Improving communication and
empowering mid-level managers, who are closest to employees, will result
in more efficient strategy execution and improved productivity.
2011 Talent Survey
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Talent Acquisition Findings:

Focus on Quality New Employees over Quantity
With retention of key employees a top concern and employers optimistically
looking forward to bolstering the workforce in strategic areas, acquiring
new talent becomes a driving force of organizational success.
2011 Talent Survey
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Key Findings
Respondents to the Aon Hewitt 2011 Talent Survey report a more optimistic
hiring view of workers in the coming year, with 45% citing slightly greater
to significantly greater hiring volumes than in the past year. Only 16% of
organizations anticipate slightly or significantly less hiring this year as
compared to last.
n
Top hiring priority is quality, not quantity.
Talent acquisition function may be a candidate for process improvement.
Employee referrals continue to be the prevalent new hire source.
Top hiring priority is quality, When asked about the goal of their organizations talent acquisition function
not quantity in the coming year, 55% report increased focus on the quality of candidates.
Similarly, when asked their top hiring priority, nearly 60% agree that it is
very or extremely important to hire more productive employees. Less than
50% cite filling positions faster and staying on budget as a top priority.
How important is hiring more productive

employees to your organization?
Extremely Important
20%
Very Important
39%
Important
30%
Somewhat Important
7%
Not Important
3%
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Conventional wisdom would lead us to believe that hiring quality employees

is easier than in years past due to the glut of unemployed workers. However,
with increased candidate volumes flooding HR departments and a lack of
recruiting resources to process and screen hundreds of applicants for
each position, organizations are finding it difficult to find quality hires in the
traditional and virtual resume piles. Only 28% report that they are very or
extremely effective at hiring more productive employees.
How effective is your organization at

hiring more productive employees?
Extremely Effective
5%
Very Effective
23%
Effective
51%
Somewhat Effective
18%
Not Effective
3%
Talent acquisition function may be a With job cuts and unemployment stabilizing, HR executives can now look
candidate for process improvement toward growing their workforces in strategic areas where growth is
anticipated. That growth will require many formerly downsized talent
acquisition functions to match business demand with the required
employees to deliver the goods or services.
HR leaders appear less inclined to rebuild their recruiting function with
full-time employees during recovery, with only 8% citing rebuilding the
recruitment team as a primary goal in 2011. They may look at smaller fixes
such as redesigning talent acquisition to be more scalable, streamlined,
and to operate more cost-effectively, with 35% of respondents stating that
recruiting and staffing could benefit from process improvement.
2011 Talent Survey
23
Employee referrals continue to be the Social media is certain to change the face of talent acquisition, but
prevalent new hire source respondents to the survey report a wait-and-see position. Only 24%
of respondents cite that determining how to use social media in
recruitment is very or extremely important. And, when asked to rank
the most effective sources of new hires, traditional recruiting techniques
such as employee referrals and job boards top the list for both entry level/
hourly and experienced/mid-career new hires.
What are the most effective sources

of hires for your organization?
Sources
Entry level/
New hires
Experienced/
Mid-career
Employee referrals
48%
40%
Job boards
30%
31%
Resume mining, Internet and/or

company resume databases
12%
20%
Agencies
(search firms or temporary)
16%
28%
Company website careers

pageunsolicited applications
29%
25%
Social media
(LinkedIn, Twitter, Facebook)
5%
10%
Existing employees
(internal placements)
21%
27%
Print media
(newspapers, trade journals)
12%
9%
Job fairs/recruitment
events/open houses
9%
4%
Unsolicited walk-ins,
resume, application
9%
2%
School outreach (college,

technical school, or high school)
11%
3%
(Choose up to 3.)
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Aon Hewitt
Aon Hewitts Perspective With job cuts and unemployment stabilizing and business recovery in most
industries looming, HR executives can look toward growing their workforces
in strategic areas outlined by executive management. The key acquisition
issues HR departments will face are:
How to react to fluctuating business demands combined with an urgency
to hire productive new employees to support the new growth.
n
How to best structure the talent acquisition function to be nimble,

and how to cost-effectively scale up to meet business demand to deliver
high-quality, productive employees to the organization.
n
Workforce planning tools will become increasingly important to HR

executives and they will invest here as they work with their business units to
help accurately forecast their near-term and long-term workforce needs.
2011 Talent Survey
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Next-Generation
Communication Findings:
Communication in the New Age of Employee
Engagement, Recruitment, and Productivity
Todays employees are empowered, confident, hard to reach, and equally
hard to engage. Individual communication toolse-mails, conference
calls, webinars, hard copy mailingsdont seem to have the desired impact.
And communication for communications sake, without a tie to business
strategy or an overall plan, is ineffective.
2011 Talent Survey
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Key Findings
Respondents confirm that most organizations value the role that

communication plays in employee engagement and retention. However,
they also report that those communications have not been closely
aligned with an organizations overall business strategy.
n
Traditional employee communication tools are still prevalent.
Change communication is easier said than done.
Social media networks are not prevalent in HR (yet).
Traditional communication tools Where organizations are focused on employee communication, the use of
are still prevalent more traditional methods such as e-mail and intranets still far outweighs
the use of emerging social media tools. Even in the recruiting space there
is a disconnect where 55% of employers see social media as an important
tool to leverage when reaching recruits, but only 5% to 10% of employers
think social media is an effective source of candidates.
Change communication: When an organization implements change, 55% believe that

easier said than done communication is extremely important, while only 10% of those same
organizations believe that they are extremely effective in delivering
that communication. Today less than half (47%) of the organizations
in the survey provide total rewards statements to employees, even
though most find them to be effective in every category of the survey.
Since 54% of organizations believe that employees understanding of
the value of the total rewards program is important to their overall business
strategy, it is reasonable to assume that more organizations will embrace
personalized total rewards communications.
Social media networks not prevalent Only 16% of organizations are investing in social media tools, with most still
in HR (yet) depending on established methods such as e-mail (push) and intranets
(pull). Reluctance to embrace new technologies appears to carry ahead over
the next three years, where only 30% of organizations believe that they
will invest in social media as a means of communicating with employees.
Generally speaking, investments in communication over the next three
years are split almost 50-50 between increased budgets and holding steady.
While companies do not seem to be focusing on social media in the
next three years, a large number, 67%, either have formal policies in place
dictating how employees should use social networking tools, or are working
on formulating those polices.
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Aon Hewitts Perspective The survey data confirms that while most organizations believe that
communicating with employees is extremely important, the vast majority
will admit that they are not very good at it. There is a fairly large disconnect
between belief and actual results. While one can speculate on the reasons
(e.g., internal staffing issues, budget, other priorities), it is clear that
companies feel their communications could be more effective in impacting
employee behavior. We feel strongly that organizations need to:
n
Communicate with employees using tools that they use.
Personalize those communications. Using targeted messaging based

on employee demographics can be a highly effective means of engaging
and retaining employees.
n
With all of the press that social media receives today, it is not yet the
communication of choice for organizations budget dollars, at least in the
near term. We believe these tools can be a highly effective and productive
means of communicating; however, employers lack employees personal
cell phone numbers and e-mail addresses, and that is hindering the
expansion of social media as a broad-based resource. Allowing employees
to opt in to text and e-mail message services is gaining some momentum,
although it is still too soon to tell if most employees will embrace the
technology for this purpose.
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2011 Talent Survey Data
2011 Talent Survey
31
Do you anticipate your

organization will experience
any of the following HR events
in 2010 and/or 2011?
(Select all that apply.)
Please indicate your

organizations
top HR strengths.
HR Event
Global off-shoring
HR outsourcing
11%
Recruitment process outsourcing
13%
HR systems integration or upgrades; automation of

manual HR activities
49%
Review of total rewards
38%
HR cost cutting
27%
Increased hiring
38%
Increased turnover and/or retirements
29%
Increased focus on leadership, talent development,

and succession planning
61%
Increased focus on HR productivity and

process improvement
48%
Increased focus on safety
20%
Use of new social media for job candidate or

employee communications
35%
HR Strength
Internal service excellence provided to employees
43%
Recruiting and developing a talented workforce
27%
Driving innovation
Aon Hewitt
8%
Ensuring safety
13%
Low-cost function
24%
Competitive benefits
50%
Competitive compensation
23%
Recognition as an employer of choice in your market
22%
Organization effectiveness/organizational change
15%
Mergers and acquisitions facilitation
32
8%
8%
Which of the following

administrative areas of HR
could benefit from a
process improvement within
your organization?
What regions of the world

will require your greatest
focus on talent issues in the
coming year?
HR Administrative Area
Recruiting and staffing administration
35%
Onboarding/Offboarding
37%
Leadership development and succession planning
57%
Benefits administration
19%
Training coordination/Tracking
34%
Workers compensation administration
10%
Global talent management
18%
Region
Europe
10%
Russia
0%
Asia/Pacific
14%
India
5%
Africa
2%
Middle East
2%
U.S./Canada
74%
Latin America
7%
2011 Talent Survey
33
As the nation emerges from

the most recent economic
crisis, please select the area of
greatest concern to you.
Concern
Aging workforce/retirements
9%
Business strategy execution
18%
Development of leaders to take on more critical work
10%
Engagement of employees
16%
Leading change
6%
Other
3%
Retention of top talent

Succession planning
When, if ever, do you

anticipate that a shortage
of qualified leadership
will impact your
organizations performance?
Aon Hewitt
8%
Outlook
Now, we currently have a shortage.
19%
Next 1-2 years
15%
Next 3-4 years
26%
Next 5-9 years
17%
Next 10+ years
2%
We do not anticipate a shortage of qualified leaders

in our organization.
34
31%
22%
Please rate how

important it is that your
organizations leaders
Importance
Extremely
important
Very
important
Important
Somewhat
important
Not
important
Meet business growth goals
56%
28%
10%
4%
3%
Innovate
29%
39%
25%
6%
1%
Meet profitability targets
56%
26%
10%
3%
4%
Deliver desired customer

service levels
56%
32%
11%
1%
0%
Ensure safety
36%
25%
25%
9%
5%
Attract talent
30%
43%
21%
5%
1%
Retain talent
44%
39%
14%
3%
1%
Extremely
effective
Very
effective
Effective
Somewhat
effective
12%
34%
36%
16%
2%
7%
21%
36%
31%
5%
Please rate the effectiveness

of your organizations
leaders to
Effectiveness
Not
effective
Meet business growth goals
Innovate
Meet profitability targets
14%
31%
36%
15%
4%
Deliver desired customer

service levels
17%
38%
33%
11%
1%
Ensure safety
17%
35%
37%
9%
2%
Attract talent
5%
27%
41%
23%
3%
Retain talent
7%
26%
40%
22%
4%
2011 Talent Survey
35
10
What role in your

organization do you see as
being most essential for
carrying out the critical work
of the organization?
What role in your organization

do you see as being
most challenging in regards to
attraction and retention?
Role
Executives
12%
Senior management
29%
Middle management
26%
12%
14%
4%
4%
Role
Executives
12%
17%
Middle management
25%
11
What is the main issue

preventing your organization
from reaching your
strategic goals quickly?
Aon Hewitt
9%
Senior management
19%
13%
Issue
Governance, structure, and efficiency of decision making
17%
Inability of leaders to drive strategic change
13%
Insufficient leadership capacity
12%
Investment
12%
Lack of talent/succession pool
36
5%
7%
Siloed thinking/behavior
29%
Workforce engagement
10%
12
What are the most important

elements that your
organization currently
considers when
making rewards and other
HR program decisions?
(Choose up to three.)
Elements
Cost
58%
Competitive position
25%
Legal/regulatory compliance
17%
Alignment with the business performance
38%
Leaderships rewards philosophy
16%
Risk to the enterprise

Ability to attract, retain, and engage the right talent
13
What are the most important

elements that your
organization should be
considering when
making rewards and other
HR program decisions?
7%
33%
Elements
Cost
28%
Competitive position
34%
Legal/regulatory compliance
12%
Alignment with the business performance
50%
Leaderships rewards philosophy
17%
Risk to the enterprise

Ability to attract, retain, and engage the right talent
5%
55%
2011 Talent Survey
37
14
Importance
Extremely
Important
Very
Important
Important
Somewhat
Important
Not
Important
Managing the cost of

total rewards
25%
36%
29%
8%
3%
Attracting and assessing the

talent the organization needs
31%
42%
20%
6%
1%
Retaining the talent the

organization needs
38%
37%
17%
6%
2%
Enhancing employee
engagement and performance
31%
39%
20%
8%
2%
Planning future
workforce requirements
16%
35%
31%
14%
4%
Managing a multi-cultural,
global workforce
11%
18%
25%
18%
28%
Extremely
Effective
Very
Effective
Effective
Somewhat
Effective
Not
Effective
12%
36%
37%
12%
3%
15
38
Please indicate how

important each HR program
is to your organization.
Please indicate how effective

your HR organization
is at delivering each of
the following.
Effectiveness
Managing the cost of

total rewards
Attracting and assessing the

talent the organization needs
6%
25%
41%
24%
4%
Retaining the talent the

organization needs
8%
26%
41%
21%
4%
Enhancing employee
engagement and performance
3%
17%
40%
30%
9%
Planning future
workforce requirements
3%
12%
35%
37%
14%
Managing a multi-cultural,
global workforce
5%
10%
35%
26%
24%
Aon Hewitt
16

Agreement
Strongly
Agree
Agree
Neutral
Disagree
Strongly
Disagree

organization are passionate and
enthusiastic about their work.
15%
52%
22%
10%
1%

this organization are devoted to
getting the job done right.
22%
64%
11%
3%
0%

organization are immersed fully
in their work.
7%
50%
31%
12%
0%

this organization are focused and
concentrate intensely while on
the job.
6%
49%
34%
11%
0%

this organization are driven to
do whatever it takes to complete
the job.
11%
50%
30%
9%
1%
17
How does your anticipated

hiring volume in the
upcoming year compare to
the prior year?
Hiring Volume
Significantly greater
12%
Slightly greater
33%
About the same
39%
Slightly less
10%
Significantly less
6%
2011 Talent Survey
39
18
Importance
Extremely
important
Very
important
Important
Somewhat
important
Not
Important
Hire more productive employees
20%
39%
30%
7%
3%
Reduce early turnover of

new employees
18%
32%
28%
13%
9%
Fill positions faster
17%
32%
31%
15%
5%
Stay on recruitment budget
14%
28%
36%
16%
6%
Launch new
recruitment technology
7%
18%
25%
26%
25%
Determine how to leverage social

media in recruitment
4%
20%
31%
27%
18%
Improve onboarding/orientation
program
14%
34%
30%
15%
7%
Very
Effective
Effective
Somewhat
Effective
19
40
How important are

the following recruitment
programs to
your organization?
How effective is your

organization at
implementing the
following
recruitment programs?
Effectiveness
Extremely
Effective
Not
Effective
Hire more productive employees
5%
23%
51%
18%
3%
Reduce early turnover of

new employees
7%
19%
43%
26%
5%
Fill positions faster
4%
17%
39%
32%
8%
Stay on recruitment budget
11%
27%
45%
13%
3%
Launch new
recruitment technology
5%
13%
34%
28%
19%
Determine how to leverage social

media in recruitment
3%
8%
26%
35%
28%
Improve onboarding/orientation
program
4%
16%
37%
32%
10%
Aon Hewitt
20
What are the most

effective sources of entry
level/hourly new hires
for your organization?
Sources
Employee referrals
48%
Job boards
30%
Resume mining Internet and/or company

resume databases
12%
Agencies (search firms or temporary)
16%
Company website careers page unsolicited applications
29%
Social media (LinkedIn, Twitter, Facebook)
5%
Existing employees (internal placements)
21%
Print media (newspapers, trade journals)
12%
Job fairs/recruitment events/open houses
9%
Walk-in unsolicited resume/application
9%
School outreach (college, technical school,

or high school)
21
What are the most effective

sources of experienced/
mid-career new hires for
your organization?
11%
Sources
Employee referrals
40%
Job boards
31%
Resume mining Internet and/or company

resume databases
20%
Agencies (search firms or temporary)
28%
Company website careers page unsolicited applications
25%
Social media (LinkedIn, Twitter, Facebook)
10%
Existing employees (internal placements)
27%
Print media (newspapers, trade journals)
9%
Job fairs/recruitment events/open houses
4%
Walk-in unsolicited resume/application
2%
School outreach (college, technical school,

or high school)
3%
2011 Talent Survey
41
22
Which properly describes the

goal of your organizations
talent acquisition function for
the upcoming year?
23

Sources
Becoming more lean
15%
Increased focus on quality of candidates
55%
Creating more scalability in our process to respond to

changing business needs
30%
Implementing new recruitment technology
22%
Developing processes that address global talent needs
12%
Rebuilding the recruitment team
8%
Evaluate increased use of outsourcing
7%
Evaluate in-sourcing work that was previously outsourced
3%
Agreement
Strongly
Agree
42
Strongly
Disagree
Agree
Neutral
Disagree
4%
41%
40%
13%
2%
Our organizations change

initiatives achieve the
desired behavioral and
business outcomes.
Leaders actions and

behaviors support messages
in our organization.
12%
43%
27%
15%
3%
Our communication drives

desired behavioral outcomes.
5%
39%
38%
16%
2%
We have a stated HR strategy

and plan.
14%
40%
21%
18%
5%
We measure the ROI of

HR initiatives.
5%
22%
30%
34%
10%
We measure satisfaction with

HR services.
11%
31%
26%
25%
6%
Aon Hewitt
24
When your organization

implements change,
how important is each
of the following
change interventions?
Importance
Extremely
Important
Very
Important
Important
Somewhat
Important
Not
Important
Communication
55%
32%
10%
2%
1%
Leadership alignment with

the change
57%
31%
8%
3%
0%
Rewards and consequences
14%
36%
35%
11%
4%
Measurement
17%
37%
31%
11%
3%
Capability building
13%
33%
37%
13%
4%
Governance and decision rights
13%
32%
36%
15%
3%
Stakeholder involvement
26%
38%
24%
8%
4%
Workforce transition
(e.g., headcount
reduction, redeployment)
12%
31%
38%
13%
6%
2011 Talent Survey
43
25
Effectiveness
Extremely
Effective
Very
Effective
Effective
Somewhat
Effective
Not
Effective
Communication
10%
26%
35%
24%
5%
Leadership alignment with

the change
13%
29%
31%
22%
5%
Rewards and consequences
3%
15%
39%
32%
11%
Measurement
5%
15%
32%
35%
13%
Capability building
3%
12%
38%
36%
11%
Governance and decision rights
5%
17%
44%
27%
7%
Stakeholder involvement
6%
23%
37%
26%
7%
Workforce transition
(e.g., headcount
reduction, redeployment)
6%
20%
43%
24%
6%
26
44
When your organization

implements change, how
effective is your organization
at each of the following
change interventions?
Aon Hewitt
Do you use business

metrics to measure
the success of a significant
organizational change?
Agreement
Yes
51%
No
49%
27
Please indicate the business

metrics used to measure
the success of a significant
organizational change.
Business Metrics
Revenue growth
22%
Cost savings
22%
Market share
6%
Innovation
2%
Speed of transition/integration/restructuring
5%
Customer satisfaction
28
How involved was HR in

your most recent
organizational change?
17%
Health and safety measures
3%
Employee retention
8%
Employee productivity
5%
Employee engagement
8%
Involvement
Deeply involved in creating the strategy, then asked
to execute
31%
Provided input to the strategy, then asked to execute

the plan
40%
Asked to execute the plan
12%
Not involved
9%
There have not been recent organizational changes.
8%
2011 Talent Survey
45
29
30
46
Does your organization use

annual total compensation or
total rewards statements?
Please rate the effectiveness

of your annual total
compensation or total rewards
statements at impacting
Agreement
Yes
47%
No
53%
Effectiveness
Extremely
Effective
Very
Effective
Effective
Somewhat
Effective
Not
Effective
11%
30%
37%
19%
2%
Employees understanding and

appreciation of the value of their
benefits and the organizations
substantial investment in them
Employee/executive retention
8%
20%
41%
26%
5%
Employee engagement
4%
14%
45%
31%
7%
Employee savings activity

or participation
4%
17%
38%
29%
10%
Executives understanding
of their unique pay, benefits,
and wealth accumulation
opportunities
11%
30%
38%
16%
5%
Participation in voluntary plans
5%
16%
42%
26%
10%
Aon Hewitt
31
Please rate the importance

of each of the following
to your organizations
business strategy.
Importance
Extremely
Important
Very
Important
Important
Somewhat
Important
Not
Important
Employee understanding of
business objectives
34%
40%
20%
4%
1%
Employee capability to deliver on

business objectives
39%
41%
17%
3%
0%
Employee engagement
36%
42%
18%
4%
1%
Building a strong
corporate culture
33%
37%
21%
7%
2%
Senior leadership credibility
53%
33%
11%
2%
1%
Managing organizational
transformation/change
28%
43%
23%
4%
2%
Employees understanding of
the value of your organizations
total rewards
15%
39%
33%
11%
2%
Employees understanding
of how your organizations
employee benefits plans work
17%
39%
34%
8%
2%
changes to policies/procedures
17%
39%
35%
8%
1%
Employee health and wellness
27%
36%
27%
9%
1%
Safety
36%
26%
25%
10%
3%
2011 Talent Survey
47
32
48
Please rate the extent to

which your organizations
communication strategy is
focused on the following.
Extent
Very high
Extent
High
Extent
Some
Extent
Little
Extent
None
18%
36%
35%
9%
2%
9%
36%
43%
10%
2%
Employee understanding of
business objectives
Employee capability to deliver on

business objectives
Employee engagement
11%
34%
42%
11%
3%
Building a strong corporate

culture
18%
31%
37%
12%
3%
Senior leadership credibility
18%
37%
33%
10%
3%
Managing organizational
transformation/change
9%
31%
44%
13%
3%
Employees understanding of the

value of your organizations total
rewards
5%
25%
44%
21%
5%
Employees understanding
of how your organizations
employee benefits plans work
9%
39%
38%
12%
2%
changes to policies/procedures
8%
33%
45%
11%
2%
Employee health and wellness
12%
35%
37%
13%
3%
Safety
21%
28%
31%
14%
6%
Aon Hewitt
33
Please select the

communication areas
your organization
is currently investing in.
Communication Areas
E-mail
61%
Organization intranet
57%
Online newsletters/brochures
39%
Printed newsletters/brochures
29%
Town halls/all-organization meetings
42%
Printed materials mailed to employees homes
29%
Multimedia/video
20%
Focus groups
23%
Electronic bulletin boards/dashboards (e.g., SharePoint)
24%
Instant messaging
13%
Pulse surveys
13%
Social networking (e.g., Facebook, MySpace)
16%
Blogs/discussion boards
12%
Podcasts
4%
Text messaging
5%
2011 Talent Survey
49
34
Please select the

communication areas
your organization
will invest in 3 years
from now.
50
Aon Hewitt
Communication Areas
E-mail
36%
Organization intranet
42%
Online newsletters/brochures
33%
Printed newsletters/brochures
15%
Town halls/all-organization meetings
27%
Printed materials mailed to employees homes
14%
Multimedia/video
28%
Focus groups
22%
Electronic bulletin boards/dashboards (e.g., SharePoint)
31%
Instant messaging
14%
Pulse surveys
19%
Social networking (e.g., Facebook, MySpace)
30%
Blogs/discussion boards
21%
Podcasts
14%
Text messaging
8%
35
36
Over the next 3 years,

will your organizations
total investment in
communication:
Do you have any formal

policies that dictate
how employees use social
networking tools?
Communication Investment
Decrease
2%
Increase
50%
Stay the same
47%
Social Networking Policies

Yes, employees are informed of our social networking
usage policies
39%
No, but we are working on formulating those policies
28%
No, we have no formal policies
20%
We do not use social networking tools
13%
2011 Talent Survey
51
About Aon Hewitt

Aon Hewitt is the global leader in human resource consulting and outsourcing solutions.
The company partners with organizations to solve their most complex benefits, talent
and related financial challenges, and improve business performance. Aon Hewitt designs,
implements, communicates and administers a wide range of human resource, retirement,
investment management, health care, compensation and talent management strategies. With
more than 29,000 professionals in 90 countries, Aon Hewitt makes the world a better place
to work for clients and their employees.
For more information on Aon Hewitt, please visit www.aonhewitt.com.
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Consulting

Talent & Rewards

2011 Talent Survey

Igniting a High-Performance Culture

2011 Talent Survey

2011 Talent Survey

2011 Talent Survey

As leaders transition toward growth, there is an increased focus on human

Key Findingsas identified by our respondents

Commentary and Calls to Actionsteps to position your organization

Survey Datathe complete findings for your reference

Engagement of critical talent is a top concern.

Total rewards plays a significant role in engaging a workforce.

Middle management will be critical to business strategy execution and

There is a perceived gap in leadership effectiveness.

There is a general lack of confidence in leaders ability to drive change.

Top hiring priority is quality, not quantity.

The talent acquisition function is a strong candidate for

Social media is an emerging, but not yet prevalent, sourcing channel.

Traditional employee communication tools are still prevalent.

Change communication is easier said than done.

Social media networks are not prevalent in HR (yet).

2011 Talent Survey

A total of 1,328 individuals participated in Aon Hewitts 2011 Talent Survey.

Accommodation and Food Services

Agriculture, Forestry, Fishing, and Hunting

Arts, Entertainment, and Recreation

Finance and Insurance

Health Care and Social Assistance

Management of Companies and Enterprises

Mining and Quarrying

Professional, Scientific, and Technical Services

Real Estate and Rental and Leasing

State and Local Government

Transportation and Warehousing

Other Services (Except Public Administration)

2011 Talent Survey

2011 Talent Survey

As the economy shows signs of recovery, employees may begin to consider

Engagement of critical talent is a top concern.

Total rewards plays a significant role in engaging a workforce.

Middle management will be critical to business strategy execution and

Talent retention (31%)

Business strategy execution (18%)

Engagement of employees (16%)

When asked to anticipate the HR actions mostly likely to occur in 2011, we

61% anticipate an increased focus on talent development

Nearly 40% anticipate an increased focus on hiring

Nearly one-third anticipate increased turnover

As the nation emerges from the most

Business strategy execution

Development of leaders to take on more

Retention of top talent

Please indicate the extent to

The majority of employees in this

The majority of employees in this

The majority of employees in

The majority of employees in this

The majority of employees in this

2011 Talent Survey

Over 50% are passive or actively disengaged

42% are not energized by their work

Only 43% trust in senior leadership