Best Employers Study 2016: Country Report: India

Best Employers
Study 2016
Country Report: India
In partnership with
Best Employers Study 2016 1

Table of Contents
Foreword
About the Best Employers Study
India Best Employers 2016: Study Insights
• Section I: High Employee Engagement
• Section II: Compelling Employer Brand
• Section III: Effective Leadership
• Section IV: High Performance Culture
• Section V: Effective HR Function
Imagineering the Future: The Journey to Being a Best Employer
1 Best Employers Study 2016

Foreword

Foreword
We are proud to present the ninth edition of Aon Hewitt’s (including 2,300 in the region) supports the striking
flagship study in Asia: Best Employers India 2016. evidence: having a high level of Employee Engagement,
a Compelling Employer Brand, Effective Leadership and
Through our research, we know that high employee a High Performance Culture translates into a committed
engagement not only delivers greater shareholder value, and productive workforce that delivers stronger business
but it also reduces staff turnover and improves customer results.
satisfaction. Aon Hewitt began the Best Employers
research in Asia in 2001 to provide insights into how This report provides a deep-dive into our observations,
organizations can create real competitive advantage supporting practices and outcome on the Best Employers
through people and explore the contours of what makes a construct in India.
workplace of choice.
We know that the journey to becoming a Best Employer is
Our 16 years of Best Employers studies in Asia, backed with a unique experience for each organization, and we hope
engagement research of over 6,400 global organizations you continue successfully on this journey.
Best Employers 2016 Asia Pacific

Covers 700,000 employee opinions (representative of a total
employment in excess of 2 million) across 570 organizations from
12 countries
• Aon Hewitt’s premier study for building better places for • Employee opinion coverage has doubled since 2011
work since 2001
• Participating companies crossed 500+ in the
• Expansive insights across the Asia Pacific region 2013 edition
• ANZ, China and India contribute ~50% to the participation
No. of Participating Organizations No. of Participating Employees (‘000)
570 700
+16%
490
2011 2016 2016
Definitions
Mkt. Average Scores – Average scores Best Employer Scores Participant Average Insights
of all organizations in the India market – Average scores of all Scores – Average scores
in 2015-16. This includes non-Best Best Employers in the of only Best Employers
Employers participants as well India market in 2015-16 participants in the India
market in 2015-16

Best Employers 2016 Asia Pacific
Study construct focuses on 4 master and 12 sub indices
High Employee Engagement
Say Stay Strive

The employees consistently The employees have The employees exert
speak positively about an intense desire extra effort and engage
the organization to to be a member of in work that contributes
co-workers, potential the organization to business success
employees and customers
Compelling Employer Brand
Reputation Internal Brand Credibility

The organization is well- Employees are proud Employees believe that
known and has a good to be part of the the organization delivers
reputation in the market organization, and can on the promises it
explain what makes makes to employees
working here different
from other organizations
Effective Leadership
Future Vision Valuing People Business Excellence

Leaders show clear Employees experience that Employees trust their
and compelling future leaders are appropriately senior leaders to be open
vision to the members visible and accessible; treat and honest; and believe
of the organization them as organization’s they make good business
most valued asset decisions to drive the
organization to success
High Performance Culture
Accountability & Trust Reward Growth

Managers set clear Rewards and recognition Organization prepares
goals and expectations, for high performance are for future challenges
and employees know clearly understood and by offering interesting
how they can best transparent to employees careers for high potential
contribute to business employees and learning
opportunities

Best Employers 2016 India
The jury
From Right to Left

Prof. Rajen Gupta: Professor at MDI | Mr. Raman Roy: BPO Industry Pioneer and Chairman & Chief, Quattro | Mr. Shiv Shivakumar: PepsiCo India, CEO |
Ms. Renu Sud Karnad: Managing Director, HDFC Limited | Dr. Santrupt Misra: CEO, Carbon Business and Director, Group HR, Aditya Birla Group
Aon Hewitt Study Team and Partner:

Mr. Tarandeep Singh: Partner, Talent & Performance Consulting, Aon Hewitt India | Mr. Annurag Batra: Chairman and Editor-in-Chief, BW Businessworld
| Ms. Yamini Maheshwari Sapra: Senior Consultant & India Leader – Aon Best Employers Study
As we talk about businesses being capable and we talk

about Make in India, it is important that all organizations
learn to leverage the best out of their Human Resources.
Dr. Santrupt Misra

CEO, Carbon Business and Director, Group HR,
Aditya Birla Group
I was struck by the following 4 innovations that the
companies are doing in the area of 1-Recruitment,
2-Development of Leadership as Capability,
3-Identifying top 10 or 100 managers in the companies
and design-specific inputs for their capabilities so that
they fit into senior roles, 4-Diversity, though there’s
Happy to see that this year other than the IT,
still a long way to go in this area.
ITeS, BFSIs, a lot of Mining, and Manufacturing
companies are coming in and that’s where Mr. Shiv Shivakumar
India’s growth will pick up. PepsiCo India, CEO
Ms. Renu Sud Karnad

Managing Director, HDFC Limited

The winners
Best Employers 2016

(in alphabetical order)
AAPC
India Hotel AGS Health
Management Pvt. Ltd.
Pvt. Ltd.
Bajaj Allianz
Bajaj Finance Becton Dickinson Bharti
General Insurance
Ltd. India Pvt. Ltd. Infratel Ltd.
Co. Ltd.
Hewlett Packard
Blue Dart DHL Express Godrej Consumer
Enterprise Global
Express Ltd. India Pvt. Ltd. Products Ltd.
Soft Pvt. Ltd.
InterGlobe METRO Cash Reliance Saint-Gobain

Aviation Ltd. Lupin Ltd. and Carry India Capital Asset India Pvt. Ltd.-
(IndiGo) Pvt. Ltd. Management Gyproc Business
Starwood
SKS Tata Autocomp Tata AIA Life
Hotels &
Microfinance Systems Ltd. Insurance
Resorts India
Ltd. (TACO) Company
Pvt. Ltd.
Tata WNS Global

The Oberoi Whirlpool of
Tata Chemicals Ltd. Communications Service Pvt.
Group India Ltd.
Ltd. Ltd.
Marriott
YASH Teleperformance
International
Technologies India (Global
India (Global
Pvt. Ltd. Program)
Program)

The winners – myth v/s fact
It is MNCs that
make it to Best
Employers
51% of the Best Employer
winners have been
Indian companies
Only large
organizations can
become Best Employers
30% Had less than
2,000 employees
Had been in
existence
20%
An organization needs to
have a rich history to
<10 years
when they
make it as a Best Employer
became a
Best Employer
Manufacturing
43%
Best Employers are
service-oriented firms companies that
were Best Employers

2016 India Trends

India: Overview & Highlights
9 out of 10 participants projecting fast/steady growth
• India continues to lead the world GDP growth (as per the IMF projections of April 2016, growth in India is projected
to notch up to 7.5% in 2016-17)
• 9 out of 10 participants projecting fast/steady growth
Getting Back on Track (GDP Trends)
India
Emerging Economies
Developed Economies
06
18
12
20
20
20
A Positive Business and Hiring Outlook Indicates an All Round Sentiment of Cautious Optimism
• 7 out of 10 businesses foresee an improved business outlook in 2016-17
• 7 out of 10 businesses will increase hiring in 2016-17
Business Outlook Hiring Forecast

1%
6%
12% 14%
27%
18%
67% 55%
Improving Significant Increase

Stabilizing Somewhat Increase
Declining Neutral
Somewhat Decrease
Significant Decrease
Source: IMF (April 2016 projections), Aon Hewitt India SIS 2016, Aon Hewitt India Hiring Study 2016

Talent risks and emerging talent imperatives
Rising salaries continues to be the biggest talent risk in India. According to the latest Aon Hewitt Salary
Increase Survey (SIS), the increase in salary for key talent is expected to be at an average of 14% to 16%.
Key Talent Risks

High
CONCERN ZONE
Rising
salaries
Impact of Talent Risks on Business
Inability to retain
Critical skills
employees
shortage
Poor external Inadequate leadership
talent selection pipeline
Low employee
Capability of productivity
current leaders
Inability to CAUTION ZONE
attract talent
Poor labor
relations
Medium
Likely Near Certain

Likelihood of Talent Risks
How do Best Employers manage talent risks?

On an average only 33% of the organizations feel they are prepared to tackle these risks. Best Employers leverage the 4 key
pillars as defined earlier, to derisk themselves against the talent risks.
1 Rising talent costs

Emerging Talent Imperatives
2 Critical skills shortage

High Employee Compelling Employer
Inability to retain Engagement Brand
3
employees
Inadequate
4 leadership pipeline
Low employee
5 productivity Effective Leadership High Performance Culture

2016 Best Employers
Insights

From 2013 to 2016, Best Employers maintain their lead across all the
study indices
• Best Employers achieve 38% higher growth in • Positive shifts across all the Best Employers indices,
income* than market average but the widest shifts have been in the Effective
Leadership and the Employer Brand pillars
• Best Employers filled 30% more openings internally
compared to the participant average
High Employee Engagement Compelling Employer Brand

87%
77% 79%
68%
1%
4%
81%
70%
79%
66%
4% 1%
Effective Leadership High Performance Culture
Best Employers Gap Shift 2013-16 Mkt. Average Scores Best Employer Scores
*Growth in pre-tax income over FY2014
Best Employers delivered sustained growth ahead of macroeconomic indicators

High business performance is a given for Best Employers
Best Employers register 2.6X shareholder returns compared to the rest of the market
409
372
2.6X
shareholder
return
187 198
136
125 172
100 157
121 123 127

100 98
2010 2011 2012 2013 2014 2015 2016
Indexed Growth of the NSE

(Jan 2010-2016) To qualify for the analysis, a Best Employer
should have beeen recognized in 2 of the
Indexed Growth of Best Employer Stock last 5 studies
Prices Calculated at Average Stock Price
Growth YoY (January 2010-January 2016)
Source: Best Employers India Study 2016
In addition to registering a significant lead on average shareholder returns, Best Employers also:
• Stayed ahead during tough times; and
• Leverage “better” times to create disproportionate distance with the others on NSE

Section 1: High
Employee Engagement

Best Employers register 9% points higher employee engagement
• Overall engagement for Best Employers shows a 1% point increase over 2013, even though the market has improved
by 3% points over the 2013 scores
• The ‘Say’ and ‘Stay’ pillar scores are marginally lower for Best Employers in comparison to 2013, however, the Best
Employers have improved on ‘Strive’ by 5% points since 2013
Employee Engagement Index 68% 77%

1%
SAY: The employees consistently 77% 84%

speak positively about the
organization to co-workers, potential
employees and customers
-2%
STAY: The employees have an 59% 67%

intense desire to be a member of the
organization
-1%
STRIVE: The employees exert extra

effort and engage in work that
73% 81%
contributes to business success
5%
• “What’s in it for me” is getting stronger by the year
• Employees are willing to strive hard in a Best Employer environment, given the strong leadership and
compelling brand connect
• However, there is a growing need to create a rewarding culture as a retention measure

Gap between Best Employers and market engagement scores
has reduced substantially in this year
The gap between the engagement scores has reduced this year indicating that the market is slowly, but surely making
efforts towards improving engagement
Engagement Scores Over the Last 16 Years

88%
83%
83%
77% 77%
78% 76%
76%
71%
67% 67% 68%
66% 65% 66%
62%
2003 2006 2013 2016
What helps Best Employers sustain their lead?
Best Employers Sustenance Drivers
Health & Well-being 84% 89%
Supervision 72% 81%
Collaboration 72% 80%
Mkt. Average Scores Best Employer Scores
External collaboration with broader ecosystem has increasingly become a desired capability for Best
Employers and the market

Career opportunities and rewards & recognition continue to be top 2
engagement drivers
While the top 2 engagement drivers remain the same, variations across the top 3-5 are defining experiences. Best
Employers manage this multi-dimensional complexity through specific programs that address the different needs of
different employee segments
Top Engagement Drivers in India - Ranked by Demographic
Best
Engagement Rank 2016 Sr. Mid.
Employers GenY Women Leadership
Drivers in India (Mkt. Avg.) Mgmt. Mgmt.
2016
Rewards &
1 1 1 1 1 4 1
Recognition
Career
2 2 2 2 1 2
Opportunities
Brand 3 3 4 4 1 3
Senior Leadership 4 4 5 2
Work Tasks 4 4 4 3
Trust in Action 4 5
Collaboration 2 5 4
Work-life Balance 3 4
Enabling
1
Infrastructure
Learning &
5
Development
• Diverse mix of focus areas for varied demographic profile. Interestingly, work-life balance is key for leadership, and
senior management has indicated need for better enabling infrastructure
• Collaboration is key across all levels of management
Best Employers manage multi-dimensional complexity through specific programs that address different
needs of employee segments

Best Employers sustain consistent engagement levels across
employee segments
Engagement Levels by Tenure Within the Organization
• Best Employers maintain a consistent engagement level across the tenure of an employee; they outperform the
market specially after employees are sufficiently tenured
• This tenure duration is critical as it lays foundations of a career for an employee within the organization
80% 80%
76% 76%
75%
72% 73%
67% 66%
65%
< 6 months 6 months-1 year 1-2 years 2-10 years 10+ years
Best Employers create a consistent employee experience across tenure groups

Best Employers work to sustain consistent engagement levels across
employee segments
Engagement Levels across Generations
84%
80%
76%
76%
72%
65%
Baby Boomers GenX: GenY:

1965-1978 1979-1990
Best Employers v/s Market
Specific talent programs* targeted towards GenY

55% 63%
*Godrej case study on Gen Y specific initiatives on Page 23
57% of GenY feel their future career opportunities at

their organization’s look good
53% of GenY feel they are paid fairly for the

contributions they make to the organization’s success
• Gen Y scores are the lowest for the Best Employers as well as the market
• However, Best Employers show 11% points higher Engagement for GenY at 76% when compared to the market at 65%
Mkt. Average Scores Best Employer Scores Participant Average Scores
Best Employers engage GenY through differentiated and focused talent programs

Measuring engagement is the norm; acting on opinions is how the
Best Employers drive results
Practice Prevalence
97% 100%
Measure engagement on a regular basis (at least annually)
Communication of engagement results is followed up with

team or focus group meetings that lead to a structured 83% 92%
action plan
Communication of engagement results is followed up with

71% 79%
regular employee communication on action plans
People manager and senior leaders own implementation of

64% 75%
action plans more than HR function
Progress on action plans is reported to employees 69% 75%
Engagement is linked to manager’s performance scorecard 62% 83%
Best Employer Scores Participant Average Scores
Best Employers hold leaders and managers equally accountable for employee engagement

The Best Employers Circle

Lessons from the trenches
McThai
Operating in the food and beverage industry as part of the McDonald’s brand, McThai Co. Ltd. is a fast
Thailand food restaurant that was founded in 1985 and has 8,000 employees.
The Challenge The Outcome

To attract 400+ future
The Approach
leaders to the company
each year by hiring McThai annually reviews
and engaging external and develops a 3-1-Q plan
Net Promoter Engagement
talent while at the same (3 year strategic outlook Score – Score –
boosting engagement – 1 year target – quarterly
through a variable pay
program.
execution), where goals and
targets of each employee
89% 92%
are tied to an annual
performance bonus scheme
and a variable pay program.


Starwood Hotels & Resorts

Starwood Hotels & Resorts Worldwide, Inc. is an international hotel and leisure company. It is a fully
India integrated owner, operator and franchisor of hotels, resorts and residences with internationally renowned
brands such as The St. Regis, The Luxury Collection, W, Westin and Le Meridien, operating 39 hotels in
India with 3,400 employees.

How to double • Attrition dropped well below
The Approach
manpower in order to the market average to less
achieve high growth • Developed a holistic than 10% in 2012-13
(100 hotels in India by integrated talent
2015) in the face of • 80% of senior management
management program
paucity of talent. and 90% of middle
‘Starwood Careers’
management openings were
• Talent development filled internally
was organized into 3
• Employee perception on
distinct career tracks:
“Starwood helps me reach
the executive, the mid-
my potential” in an internal
management and the
survey increased from 75% in
entry-level tracks
2009 to 86% in 2013
• Career paths mapped
for each track by
profiling the critical
job responsibilities and
competencies required
for each role. This helped
build transparency
about the competencies
required to grow in the
organization

GenY Specific Initiatives

Godrej
The Godrej Group is an Indian conglomerate headquartered in Mumbai, India, managed and largely
India owned by the Godrej family. It was founded by Ardeshir Godrej and Pirojsha Burjorji Godrej in 1897,
and operates in sectors as diverse as real estate, consumer products, industrial engineering, appliances,
furniture, security and agricultural products.

How to create a campus • This initiative helped Godrej
initiative to identify
The Approach see substantial improvement
some of the most • Godrej LOUD was created in their campus connect
passionate and creative with the objective of building interest levels, really helping
individuals and the kind Godrej brand at campuses Godrej re-brand themselves
that would be the next as an employer of choice for
generation of Godrej • Media tie up with CNBC GenY
employees? TV18 for a 7-part series on
Godrej LOUD; introduced a • This year, Godrej received
LOUD anthem contest where over 2,300 applications, a
shortlisted student bands 500% increase from 2012,
were invited to perform with the year LOUD was launched
Indian Ocean
• In 2014, Godrej also received
• The program introduced requests from B-schools,
a Campus Dream other than the ones that they
competition – students visited, to allow participation
were invited to share their in the program
dreams for their campus and
Godrej sponsored (` 5 lacs)
for the winning dream
• Godrej introduced a LOUD

journal for the students as a
toolkit to help them discover
themselves and their dreams

Section 2: Compelling
Employer Brand

Best Employers score 8% points higher than the market on the
employer brand index
• Market is closing the gap on the “Compelling Employer Brand” index from 12% in 2013 compared to 8% now
• Best Employers have shown healthy improvement across all sub indices as compared to 2013 with the maximum
movement on the credibility sub-index (7%)
Employer Brand Index 79% 87%
4%
REPUTATION: The organization
is well-known and has a good 76% 85%
reputation in the market
2%
INTERNAL BRAND: Employees are

proud to be part of the organization,
81% 87%
and can explain what makes
working here different from other
organizations 3%
CREDIBILITY: Employees believe

74% 82%
that the organization delivers on its
promises it makes to employees
7%
• Best Employers displayed renewed focus on building their brand differentiator
• Best Employers go beyond words to deliver their brand promise through practices, policies and
organizational culture

Best Employers lay focus on effectiveness measurement of the
defined brand
As Employee Value Proposition (EVP) relevance and importance increases, there is increasing pressure for
organizations to deliver on their promises
The Top 6 EVP Effectiveness Measures
Attrition Statistics Rank
Number of employee referrals 1
Attrition statistics 2
Length of service statistics 2
Employee satisfaction on EVP driver (through employee surveys) 2
Employee feedback through exit interviews 5
Cost of recruitment statistics 6
Percentage of offers accepted 6
Number of visits to organization’s career site 6
The outcome of practices and measuring effectiveness is the opinion… Does the organization
keep the promises it makes?
84%
76%
73%
72%
66%
65%
63%
62%
2009 2011 2013 2016

Best Employers clearly define their ‘value proposition’ and effectively
‘walk-the-talk’
Careers and Collaboration are among top EVP differentiators among Best Employers
Practice Prevalence: Employer Brand
We have formal documentation, implemented the EVP in all HR policies and

19% 29%
programs, and we measure the effectiveness of our EVP regularly
This organization offers exciting careers and provides great

36% 46%
learning opportunities
In this organization there is a great sense of teamwork and camaraderie 22% 33%
amongst co-workers; employees are challenged and empowered
Employee Experience
Defining an EVP is not enough, reinforcing it through communication, delivery and content is
84%
77% 75%
75%
64%
60%
I can clearly explain what makes This organization offers excellent There is effective cooperation
working here different from career opportunities to employees between different groups/
other organizations who are strong performers departments in the organization
• Best Employers clearly define “what’s in it for me” for employees
• Providing an empowering environment and clarity on individual growth paths, sets Best Employers
apart from the market


IndiGo
IndiGo commenced operations in August 2006, as a low-cost airline in a competitive and highly regulated
India Indian aviation space and today, is the largest airline in India with the highest market share and a fleet of
104 aircrafts.

To ensure employees IndiGo was adjudged an Aon
The Approach
truly live their brand Best Employer and is considered
promise and to extend • Ensuring employee one of the best companies to
the guiding principles experience, leadership’s work for in the Indian aviation
of “on time”, “courteous vision and design of industry.
service/hassle-free” people programs,
and “low fare” to the practices and policies
internal customers. are aligned to bring
alive a customer grade
experience for its
employees across all
touch points
• Introduced 8 types
of flying patterns and
associated work contracts
for pilots to ensure hassle
free flexibility in their
flying schedule
• Gives pilots an earning

potential compounded
incentive up to 20% on
the average base pay


Reliance Capital
Reliance Capital Asset Management Limited (RCAM) is the asset manager of Reliance Mutual Fund
India (RMF) and subsidiary of Reliance Capital Limited (RCL). As a leading and fast-growing company in
India, RCAM has 902 employees, 703 of whom are homegrown talent.

To build a strong • 70% of RCAM’s talent
The Approach
Employee Value comes from outside the
Proposition (EVP) to • RCAM introduced an AMC (Asset Management
enhance the internal innovative initiative of Company) industry and 38%
employee experience, sourcing talent from from outside BFSI (Banking,
and develop an diverse industries to Financial Services, and
employer brand that promote learning and Insurance)
strengthens RCAM’s innovation
credibility to attract, • 90% of CXO talent is grown
retain and groom high- • These diverse industries in-house & 75% of next-in-line
quality future leaders. are carefully identified leaders are also developed
basis the business in-house
challenge or opportunity
• Employee attrition rate is at a
at hand. For example,
low 5%
to penetrate India’s
hinterland and rural
markets, RCAM sourced
a Chief Marketing
Officer with an FMCG
background

Section 3: Effective
Leadership

Best Employers have an 11% higher effective leadership index
than the market
• The overall index score has shown positive movement with both the Best Employers and the market showing a 4%
and 2% point improvement respectively over 2013 scores
• The Best Employers register improvement across all sub indices with a substantial 6% point improvement on the
valuing people sub index
Effective Leadership Index 70% 81%
4%
FUTURE VISION: Leaders show clear

and compelling future vision to the 68% 79%
members of the organization
3%
VALUING PEOPLE: Employees

experience that leaders are 69% 79%
appropriately visible and accessible;
treat them as organization’s most
valued asset 6%
BUSINESS EXCELLENCE : Employees

trust their senior leaders to be open 70% 80%
and honest; and believe they make
good business decisions
4%
• Best Employers use leaders to drive culture, reinforce organization values and create an engaging
environment
• Leaders create a strong personal connect with employees and thereby instill a strong sense of purpose

An engaged senior leadership is an effective leadership
Senior leadership engagement has dipped for Best Employers and remained steady for the market
Engagement Scores of Top Leadership
93%
87% 86%
82% 83%
80%
79%
77% 76% 76%
75% 74%
2007 2009 2011 2013 2015 2016
Market is registering a positive upswing in employee opinion on Senior Leadership, and while Best Employers scores
have dipped, they still maintain an 11% points lead
Employee Opinion Scores on the Leadership Pillar
87%
84% 84%
81%
77% 78%
74%
70%
68% 68%
67%
65%
2007 2009 2011 2013 2015 2016
Top leadership in Best Employers is significantly more engaged, resulting in a better perception of their
effectiveness across the organization

Best Employers understand what engages leaders the best
Best Employers adopt multi-modal interventions to develop their leaders
Practice Prevalence
Formal process to identify and develop successors

72% 83%
and successor list is regularly reviewed
Internal training (classroom-based) 81% 96%

Practices adopted for leadership development
External training (i.e. executive training courses) 76% 83%
External coaching 40% 38%
Rotational assignments (formal process

to move leaders through a series of 59% 67%
departments or regions)
Developmental assignments (job

assignments matched to specific 60% 67%
development needs of leaders)
Increased access and interactions with senior

64% 79%
executives/ top management (e.g. shadowing)
Participant Average Scores Best Employer Scores
Coaching is just one of the ways for Best Employers to develop the leadership pipeline


Whirlpool of India Ltd.

The Whirlpool Corporation is an American multinational manufacturer and marketer of home appliances.
India Whirlpool entered India in the late 1980s as a part of its global expansion strategy. The company owns
three state-of-the-art manufacturing facilities at Faridabad, Pondicherry and Pune, and has 1,625 full time
employees.

To inculcate and Their effective leadership index
The Approach
ensure employees truly is at 80% which is 7 percentage
embrace leadership The fundamental objective points ahead of their industry
behaviors, Whirlpool was to de-mystify leadership benchmark.
worked towards and make it a part of everyday
ensuring the culture of lingo for all employees through
the organization, and several inventive methods:
not a part of the culture,
centered around • Designed and developed
leadership. mass customized learning
content
• Created change champions

to train employees on the
leadership model
• Leadership evangelism
through the leadership team
• Employees allowed to chart

and select their personal
leadership journeys
• Integrated leadership model

into people processes


Tata Communications Ltd.

Tata Communications Ltd. (TCL) is a global telecommunications company. As the sixth largest mobile
India service provider in India, TCL is renowned for its cutting-edge, one-of-a-kind innovation – including the
world’s only, wholly-owned fiber ring around the world and Ethernet ring serving the Middle East.

• The metrics to measure
TCL launched Develop The Approach
MINT to create a success have been divided
pipeline of business • After a rigorous selection into the following three
leaders for the future procedure, 30 finalists were categories: quality, cost
with a horizon of 3-5 selected. Development and time
years. Objectives was based on the 70:20:10
• The program is currently
include: learning model
underway and the
• Build a strong bench- • An advanced business leader participants are undergoing
strength of business competency development their first job rotation
leaders for the future training program was
organized in Frankfurt,
• Enhance capability Germany. The CEO set
of leaders who expectations and extended
understand the support
business and have
the right DNA • Candidates were assigned
a Group Coach who
• Focus on a ‘Build helped them create their
over Buy’ strategy for IDPs, identified areas of
talent expansion development, identify the
roles for the candidates over
the next 3-6 years

Section 4: High
Performance Culture

Best Employers have a 13% point lead on the high performance
culture index
• Best Employers show a 1% increase in overall index scores over 2013, however, the market has dipped by 3% points
in comparison to 2013
• Both the market and Best Employers register a noticeable dip in the reward sub index with a 4% and 7% point
respective drop over 2013
High Performance Index 66% 79%
1%
ACCOUNTABILITY & TRUST

74% 82%
Managers set clear goals and
expectations, and employees know
how they can best contribute to
realize their business strategy 1%
REWARD: Rewards & recognition

for high performance are clearly 59% 70%
understood and transparent to
employees
-4%
GROWTH: The organization prepares

for future challenges by offering
interesting careers for high potential
employees and learning opportunities 70% 79%
for all employees 5%
• Managerial capability building has enabled Best Employers to create transparency and trust
• However, with the advent of new-age industries, one needs balanced focus on rewards &
recognition too

Best Employers distinguishing and rewarding for performance
Best Employers ensure appropriate recognition and differentiate rewards based on performance to push high
performers further
Practice: We combine Practice: Keeping average performers as a Outcome: Employee

structured, formal benchmark, how much does the variable opinion
recognition programs pay differ by performance?
with manager-driven
recognition
Employees 102
132
Top Leadership 53%
128 Appropriate
145 Recognition
66%
46% 47% Average 100

Performers 100
60%
Employees 18 Performance
21 Impact on Pay
74%
2016
Top Leadership
19
15
High Performers
Under Performers

Manager development focus continued
Best Employers develop, coach, assess and reward their people managers to become engaging managers
Practice Prevalence: People Manager Development
We have a formal approach to improving people management skills

93% 96%
Practices to drive People Manager
People managers get coached to

provide career advice and to explain 59% 71%
Development
rewards successfully to their people
People managers receive effective feedback on

78% 79%
how their leadership style influences their team
People managers’ performance ratings

60% 71%
reflect their teams’ engagement levels
People managers are measured

on their quality of people
55% 63%
management and are rewarded for
managing their people effectively
Continued focus on managers assisted Best Employers on:
• Driving accountability of team engagement through managers
• Creating individual development plans to help them become engaging leaders

The focus on outcomes
Best Employers are far ahead of the market in planning, communicating and providing abundant career opportunities to
their employees
Practice Prevalence: Career Development

We have a formal career development
60% 79%
framework
We have a campaign to communicate

57% 67%
the framework to our employees
Practices to support career development
Structured succession planning 59% 71%
Assessment of behavioral capability 64% 71%
Opportunity of cross department assignments 64% 83%
Career planning portal

(an online tool that helps
22% 38%
managers and employees
manage careers)
One-on-one coaching for

employees on managing 50% 63%
their careers
Opportunity for internal and

67% 83%
external learning programs
Career development goals integrated

55% 71%
into performance management
Employee Experience on Career Opportunities

81%
77% 75% 72%
67% 69%
Organization offers excellent career There are sufficient opportunities Organization strongly supports the
opportunities to employees who within the organization for me to work learning and development of its
are strong performers on assignments to gain new skills employees
Technology adoption is low even for Best Employers in an increasing complex area of career opportunities


Bajaj Finance Ltd.

Bajaj Finance is one of the few NBFCs in the country to be awarded a rating of FAAA/Stable for Fixed
India Deposits and have a network of over 115 branch offices throughout the country. They have been in
operation for 29 years and have a workforce exceeding 4,400 full time employees.

To shift the onus of The success ratio of the Auto-
employee growth (up
The Approach
promotion policy will be to
to a certain level) to lie • The auto-promotion policy is ensure that at least 70% of
with the employee. An a unique initiative to create employees completing the
employee can growth a strong career progression required tenure get promoted in
in their current role program at Junior to Middle the system.
after a specified period management levels on
of time provided they achievement of a pre-defined
meet the defined set of set of performance metrics.
metrics. The intent being:
- To grow in-house talent and
- Ensure job enrichment for

an employee
• The review period of the

auto-promotion policy is
quarterly and promotions are
automatically initiated basis
tenure and performance


DHL India Ltd.

DHL is present in over 220 countries and territories across the globe, making it the most international
India company. DHL India has been operation for 37 years and has a workforce exceeding 1100 employees.

DHL targeted to Linking Performance Pay with
achieve the following The Approach “3 bottom lines” has shown
3 bottom lines, i.e. to tremendous results:
be an: • Each employees performance
appraisal carries weighted • Transit time over 96%
• Investor of choice linkage to the 3 bottom lines (provider of choice)
• Provider of choice • All employees irrespective • Active Leadership scores

of their grades have the improved by 16% in last 3
• Employer of choice years (employer of choice)
following 2/3 collaborative
targets:
• Customer Promise scores
- EBIT improved by 8% in last 3
years and currently at 95%
- Transit time (provider of choice)
- Active leadership
• The weightage for

collaborative target is higher
for management employees as
they are decision-makers and
their variable component can
go as high as 70%

Section 5: Effective
HR Function

An Effective HR Function
The Best Employers’ business expectations
What the CEOs of winner organizations expect from Best Employers?
R.S. Subramanian, Aditya Ghosh, CEO, Vikram Oberoi, CEO, Arvind Uppal, CEO,
CEO, DHL IndiGo Oberoi Hotels Whirlpool
HR partners with the HR is a very The competitive Increasingly, the

key stakeholders to important and advantage of the success of businesses
ensure that people strategic function group stems from our depends on the ability
strategy and policies in my organization. single minded focus on of its employees to
are aligned to the We are obsessed with creating memorable execute their business
business requirements our own people and experiences for our strategy. For us, the
and in line with our HR is a key partner guests. To do this, the ability of our employees
ambition to be the to implement our HR function drives our to enable business
employer of choice. culture. A lot of what ability to attract the transformation is termed
HR further helps the our customers see of best talent, provide as ‘People Excellence’.
organization develop us and our product is a them with learning and Enabling, nurturing
key measures that track reflection of who we are growth in an enabling and sustaining people
the people dimension internally. Therefore, environment that excellence and thereby
that impact the business HR is a key partner supports and empowers driving business strategy
and develop actions to for our leaders to them to do their best for is where our HR function
ensure high quality drive excellence. our guests… plays a pivotal role.
work environment
and ethic. HR helps
the business leaders
to look ahead and stay
people focused to
ensure that decisions are
taken with the people
aspect in mind and the
organization is future
ready. HR is the voice
of the employee in the
leadership team and
help ensure that talent
and skill development
remains a key focus area
at all times.

Best Employers don’t spend more on HR. They focus on doing the right things and doing them well
Actual spend on people practices initiatives (annual HR budget) expressed as a % of annual revenues in 2015-16
3.0%
1.0%
2016
Areas of strength for Best Employers (% reflects selection in the Top 3)
75%
64%
50%
42%
38% 38% 38%
26% 26%
22%
Employee Learning & Defining/ Employer Branding HiPo

Engagement & Development Aligning Development
Motivation Organization Succession
Culture Planning
Data Representation: Actual spend on people practices initiatives (annual HR budget) expressed as a % of annual revenues in 2015-16
Source: Best Employers India Study 2016
Best Employers spend 1/3rd of market spend on people practices/initiatives

Best Employers don’t just articulate HR strategy, they ensure accountability and governance around it
The HR strategy was developed in partnership with multiple

76% 79%
business stakeholders
Practice Prevalence
The CEO is measured based on organization’s HR KPIs (e.g.

74% 79%
employee engagement, attrition)
HR collaborates with the business to identify HR KPIs and then

83% 88%
monitor, assess and report performance against those HR KPIs
Our organization participated in an HR benchmarking

71% 79%
process in the last 2 years
Design new
60% 71%
people programs
The use of benchmark data and
Build a
differentiated 34% 46%
EVP
insights
Include in our HR
43% 63%
reporting
Set our HR KPIs 47% 58%
Validate practices 71% 79%
Best Employers go beyond articulation of HR strategy. Their HR co-owns the outcomes and metrics

What’s in Store for
the Future

Best Employers: Delivering on the Now,
Imagineering for What’s to Come
Is India Inc. Future Ready?
Businesses today are experiencing breakthroughs faster than ever; lifecycles for innovation are shortening, the East is
gradually becoming the new West and more importantly, technology is the new fuel disrupting and enabling businesses.
Leading firms are leaving behind the traditional models of market access; instead they are creating new markets and
controlling consumer experience like never before.
With close to 7 connected devices per human being on earth by 2020 and the average human spending close to 2.5 hours
on mobile devices surfing daily, one does not really need to underscore the pace of change both subliminal and actual.
Besides increasing connectedness, mobility and social media are also making organizations transparent to the outside
world. Current and prospective workforce is impacted by an employer’s stated purpose of existence (or rather, lack of it),
more so when income inequalities are rising and awareness for social issues are high.
The purpose of this report is to identify emerging trends around the below 3 shifts and visualize a journey that prepares
organizations for the future.
Megatrends Impacting the Business and the Workplace
• Businesses are experiencing breakthroughs faster than ever
• Nature of work is shifting dimensions faster than ever
• Connectedness is redefining talent expectations faster than ever
Business Workforce
• Disruption becomes a norm • Demographic and

psychographic shifts
• Changing sources of
competitive advantage • Consumer mindset
• Technology and internet of • Social connectedness

everything
• Highly informed
• Interconnected trade and
talent flows • Life long learner

What Does India Inc. Need to be Future Ready?
Faster than ever
Businesses are experiencing Nature of work is shifting Connectedness is redefining talent

breakthroughs faster than ever dimensions faster than ever expectations faster than ever
Speed Agility Innovation On- Constant Man & Transparent Experience Purpose
Demand Learning Machine
Keeping Pace with the Fast Changing Business and Workplace

Landscapes
Given the above mentioned external and demographic shifts, businesses now have to focus on three critical imperatives
to keep pace with the fast-changing workplace and business landscape.
1 2
Design Create work
organizations for culture to deliver
Innovation, Agility 10X impact
& Speed
3
Manage the young, the
old and the
connected

Where do the Best Still Need Improvement?
Dimensions to Imagineering the Future
1 Collaboration Takes Center-stage: Collaboration at the workplace is amongst top 3 sustenance drivers for Best
Employers. However, it is not the top most, which points towards the future journey for Best Employers.
2 Balance Work & Life: Work-Life Balance is an improvement driver for Best Employers despite its high scores.
This represents employees’ rising expectations towards better work-life integration enabled through omnipresent
technology.
3 Inspirational Leaders and Stellar Reputation Count: Brand and senior leadership are amongst top 4
improvement drivers for the market. Incidentally, senior leadership was a sustenance driver for Best Employers last
year, but no longer now. This corroborates our hypothesis of the task cut-out for inspiring leaders and organization’s
reputation.
4 Rewards & Recognition Matters: Best Employers have created the highest gap against the market average on
rewards & recognition (13%) validating the positive experience created for the employee. The same however is still
their top most improvement driver, which signifies hurdles of the journey yet to be traveled. Best Employers are
seemingly more prepared for this.
5 Raise the Bar of ‘Delivery of Promise’: Market average scores have interestingly improved across all engagement
drivers, with the maximum increase on brand and career opportunities. This indicates market is catching up with key
differentiators of the past. Hence, Best Employers need to raise their “delivery of promise” and focus on creation of
purposeful organizations.
Rewards & Recognition Rewards & Recognition
Career Opportunities Career Opportunities
IMPROVEMENT
DRIVERS
Brand Work-Life Balance
Supervision Health & Well-being
Learning & Development Supervision
SUSTAIN
DRIVERS Performance Management Collaboration
Market Best Employers

Challenges That Emerge for HR
The future will always remain the future; organizations that acknowledge the fact that they need to be prepared for the
same will continue to seize opportunities and create exponential advantages. In our view, HR will face the following 3
critical challenges in the readiness, and their ability to influence and lead change during this journey will determine their
success.
Pre-empt
1
• Organizations of the future will work in smaller and diverse teams
and solve
the TEAM • Team inability to work cohesively will impact the desired business
conundrum! outcomes of speed, agility and innovation
78% 71% 81%

84% 65%
72%
Diversity & Inclusion Career Opportunities Collaboration
The Best are at 84% on Career opportunities is Collaboration at the

Diversity & Inclusion, the second most critical workplace is amongst
ensuring they provide an improvement driver for the top 3 sustenance
open work environment the Market as well as the drivers for Best Employers.
that respects individual Best Employers. This only However, it is not the
differences. The market reaffirms the criticality of top most, which points
definitely has ground to this driver for employees towards the future journey
cover here as employee across organizations at for Best Employers.
expectations are both ends of the maturity
constantly rising. spectrum.

Challenges that emerge for HR
• Future of work revolves around one’s ability to learn and adapt

Enable the
2
new-age • Solving problems will be hugely dependent on quicker
WORK & decision-making and iterative learning techniques
LEARNING
• Technology will be omnipresent, and work processes will alter
techniques! significantly owing to automation and artificial intelligence
81% 83%
69% 73% 71% 79%
Basics (Enabling Infra, Empowerment & Work-life Balance

Talent & Staffing) Autonomy (Integration)
The Best are 12% points The Best are at 83% Work/Life Balance is an
ahead on the market when it on Empowerment & improvement driver
comes to providing the basics Autonomy, which goes for Best Employers
i.e. the requisite people to show that in addition despite high scores. This
and material resources and to providing an open represents employees’
an enabling infrastructure. work environment, they rising expectations
Considering that these are are also empowering towards better work-
foundation elements for their employees to take life integration enabled
any organization, delivering decisions and learn from through omnipresent
on these is critical for all their mistakes. technology.
employers.

Challenges that emerge for HR
• Future of managing talent will be driven by individual choices -

Relearn the art
3
traditional control & command practices will lose favor
of MANAGING
Brand and • Employee experience will be paramount, and leadership style will
People! need to be inspirational
88% 74%
83% 78%
70% 58%
Rewards &
Inspiring Leadership Employer Brand
Recognition
Senior Leadership was a Brand is the third most critical Best Employers have created
sustenance driver for Best improvement driver for the the highest gap against the
Employers last year, but no Market. Organizations are Market Average on Rewards
longer now. Leadership style expected to live and deliver & Recognition (16%).
will need to be inspirational the employer brand in However, it also is their top
to drive positive energy and thought, speech and action. most improvement driver,
a sense of purpose within the The Best Employers are 10% which signifies hurdles of the
workforce. points ahead of the market, journey yet to be traveled.
and definitely better prepared Best Employers are seemingly
to deliver on employee better prepared here.
expectations.

Imagineering the Future
Dimensions to Imagineering 2020
How to become a Best Employer
Collaboration Takes
Centerstage
Inculcate the ability for teams to

work cohesively to drive speed,
agility and innovation
Balance Work & Life
Enable better work-life

integration through
omnipresent technology
Inspirational Leaders and a

Stellar Reputation Count
Build towards an inspirational

leadership and a stellar reputation
to set up for future-readiness
Rewards &
Recognition Matters
Differentiate, reward
and recognize effective
performance and efforts
Raise the Bar on

‘Delivery of Promise’
Raise the bar on “delivery of

promise” and focus on creation
of purposeful organizations

About Aon
Aon plc (NYSE:AON) is a leading global provider
of risk management, insurance and reinsurance
brokerage, and human resources solutions and
outsourcing services. Through its more than
72,000 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 andwww.aon.com/
manchesterunited to learn about Aon’s global
partnership with Manchester United.
© Aon plc 2016. All rights reserved.

The information contained herein and the statements
expressedare of a general nature and are not intended to address
thecircumstances of any particular individual or entity. Although
weendeavor to provide accurate and timely information and
usesources we consider reliable, there can be no guarantee that
suchinformation is accurate as of the date it is received or that it
willcontinue to be accurate in the future. No one should act on
suchinformation without appropriate professional advice after a
thoroughexamination of the particular situation.
aonhewitt.co.in
Vikrant Khanna
Senior Consultant
Insights & Innovation
Aon Hewitt, APAC
vikrant.khanna.3@aonhewitt.com
Kanika Manchanda
Consultant
Culture & Engagement
Aon Hewitt, India
kanika.manchanda@aonhewittcom
Powered by- Insights & Innovation, Aon Hewitt
Risk. Reinsurance. Human Resources.

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Best Employers

Best Employers Study 2016 1

About the Best Employers Study

India Best Employers 2016: Study Insights

• Section I: High Employee Engagement

• Section II: Compelling Employer Brand

• Section III: Effective Leadership

• Section IV: High Performance Culture

• Section V: Effective HR Function

Imagineering the Future: The Journey to Being a Best Employer

1 Best Employers Study 2016

Best Employers Study 2016 2

Best Employers 2016 Asia Pacific

• ANZ, China and India contribute ~50% to the participation

No. of Participating Organizations No. of Participating Employees (‘000)

2011 2016 2016

3 Best Employers Study 2016

High Employee Engagement

Say Stay Strive

Compelling Employer Brand

Reputation Internal Brand Credibility

Future Vision Valuing People Business Excellence

High Performance Culture

Accountability & Trust Reward Growth

Best Employers Study 2016 4

From Right to Left

Aon Hewitt Study Team and Partner:

As we talk about businesses being capable and we talk

Dr. Santrupt Misra

Ms. Renu Sud Karnad

5 Best Employers Study 2016

Best Employers 2016

InterGlobe METRO Cash Reliance Saint-Gobain

Tata WNS Global

Best Employers Study 2016 6

7 Best Employers Study 2016

Best Employers Study 2016 8

• 9 out of 10 participants projecting fast/steady growth

Getting Back on Track (GDP Trends)

• 7 out of 10 businesses will increase hiring in 2016-17

Business Outlook Hiring Forecast

Improving Significant Increase

9 Best Employers Study 2016

Key Talent Risks

Likely Near Certain

How do Best Employers manage talent risks?

1 Rising talent costs

2 Critical skills shortage

Best Employers Study 2016 10

11 Best Employers Study 2016

High Employee Engagement Compelling Employer Brand

Effective Leadership High Performance Culture

*Growth in pre-tax income over FY2014

Best Employers delivered sustained growth ahead of macroeconomic indicators

Best Employers Study 2016 12

121 123 127

2010 2011 2012 2013 2014 2015 2016

Indexed Growth of the NSE

Source: Best Employers India Study 2016

• Stayed ahead during tough times; and

13 Best Employers Study 2016

Best Employers Study 2016 14

Employee Engagement Index 68% 77%