New Delhi/Mumbai, December 4, 2012: Hay Group, global management consultancy, today released the annual Top Executives Compensation Report 2012-13, revealing that the compensation of CEOs and their top executives is set to increase by a modest 9 per cent & 9.4 per cent respectively in the coming year. This exhibits a dip from the double-digit growth witnessed in previous years.
The Top Executive Compensation Report 2012-2013 features insights from about 158 organizations across the sectors of Auto, Chemicals, Basic Resources, Oil and Gas, FMCG, Retail, Construction and Materials, Telecommunication, Utilities, Industrial Goods, and Transportation. It is designed to enable organizations to understand prevailing compensation practices and trends in India.
Sridhar Ganesan, Rewards Practice Leader, Hay Group India explains, “Hay Group research has found that markets, strategy, culture, and ambitions are the four real drivers of modern-day executive compensation. This is important to keep in mind as data analytics on executive compensation have to be interpreted beyond just the stated numbers”.
Statistical analysis between the Hay Level (proxy for job contour in terms of scope, scale, size, complexity, etc.) and Total Cost to Company (CTC) found a co-relation of 0.26 – indicating that other factors, besides just the organization’s contour affect CEO compensation.
Faced with a challenging global economic climate, organizations need to do more with less, making the discretionary effort of employees willing to ‘go the extra mile’ all the more important.
What’s the missing piece? To borrow a line from the movie Jerry Maguire, engaged employees seem often to be saying to their leaders, “help me help you.” In other words, put us in roles that leverage our skills and abilities and allow us to do what we do best.
Give us the tools, technology, information, support, and other resources we need to
And, finally, get out of our way. Don’t dilute our focus and consume our energy with tasks that don’t add value. And don’t introduce procedural barriers that will interfere with our ability to get things done.
Most organizations today employ a sizeable number of people who are hindered at work.
These individuals are aligned with corporate goals and objectives and are enthusiastic about making a difference – but they are held back by roles that do not suit them
and work environments that get in their way. These ‘frustrated employees’ represent a lost opportunity as commendably high levels of motivation are not being translated into high productivity, undermining the impact of employee satisfaction programs.
Research from Hay Group indicates that in organizations today, frustrated employees may represent 20% or more of the total workforce.
Some surveys ask employees how they feel - how motivated or engaged they are at work. Some ask about the factors that help or hinder their work. The Employee Effectiveness Survey (EES) is unique because it does both.
EES is a powerful, off-the-shelf tool, it helps you measure and analyze the level of engagement and enablement your employees are experiencing. It presents these comprehensive finding in a clear, organization-wide report and it shows how engagement and enablement level vary across the organization.
The results from the EES will give you the critical information you need to identify the factors preventing employees from performing at their best. And by addressing these barriers to performance, your organization can then create a more positive environment, which leads to quantifiable business improvement.
Indian employees looking for an engaging workplace, 60% of them planning to leave their present jobs within five years:
We’ve all heard the one about the CEO who was asked how many people worked in his organisation. “Oh, about half of them,” he replied.
Joking aside, how true is this within your organisation? If you don’t know chances are it’s not being measured or at least not being measured in a way that gives you the same top line data such as profit, debt days outstanding and units shipped. It’s interesting that many organisations just don’t know, even when perhaps half of their salary bills, their biggest costs, are going on people either not contributing
– what we call non-engaged – or, worse still, those who are actually pushing in the wrong direction. In other words, actively disengaged.
After all, who needs competitors if you’ve got actively disengaged employees on your payroll?
All of our research shows that employees want to work and want to work hard, it’s what human beings naturally want to do. That’s the good news. Given that the vast majority of us want to work, what then is the driving force behind those that want to work in the same direction as the employer and those that don’t? That’s the question a good engagement study seeks to answer. And the answers matter. A well aligned workforce results in better bottom-line performance. It delivers higher scores on pretty much any business critical key performance indicators you care to mention, whether they be profit, innovation, safety or anything else. It also means comparatively better share performance.
To the question of whether employee engagement matters to the CEO the answer is undoubtedly ‘yes’. Highly engaged workers make for better business outputs, more loyal customers, fewer ‘problems’ and better financial performance. What’s not to like?