2012

Table of Contents
Executive Summary Message from the CEO Hall of Fame About the Best Place to Work Importance of Employee Engagement Engagement Drivers What Makes an Organization the Best Place to Work About Engage Consulting page 2 page 3 page 4 page 5 page 6 page 7 page 8 page 15

Executive Summary
ver the past three years, we have gained a tremendous amount of insight into what makes a company the best place to work in Pakistan, and together with research done across the world we know that organizations whose employees are strongly engaged with the organization grow faster, earn more and have higher returns than their counterparts with low engagement levels. From our 2012 research on Pakistans Best Places to Work we know that the best scoring companies have 50% more engaged employees than the bottom ranking companies. The return on investment on engaging employees is for all to see, where in top companies, 83% of employees feel their organization energizes them to go the extra mile, while only 42% of employees in bottom ranking companies feel the same way. Pakistans Best Places to Work are aware that getting people to perform and stay with the organization requires that employees need to feel a sense of pride and belonging with the organization, ensure that all employees are aligned with and are empowered to deliver the organizations objectives and are given opportunities to grow within the company. The good news is that as leaders you dont have to wait for an organization wide engagement drive. One of the highest impact levers in engaging employees is to genuinely care for your team members. 88% of employees in Top ranking companies believe that their leaders care deeply for their employees. As a result, employees are proud to be associated with the company as well as the people they work with.

On the other hand, only 44% of employees in the bottom ranking companies have a sense of belonging, respect and pride in their leaders and company. Direct performance enablers are responsible for 57% in performance improvements, where nearly 9 out of 10 employees in top ranking companies believe that they are strategically aligned with company objectives. They know what the companys strategic drivers are and are stimulated by their work environment. Supporting research shows that money is the number one reason (53%) for people to leave and to find better opportunities whilst challenging and interesting work is by far the leading reason why people choose to stay with their company. Similarly we have found that 60% of employees who are considering leaving their company, do so because of limited career / growth opportunities or have no clarity on their career opportunities in their company. The survey results show that employees always score lowest on growth opportunities. Pakistans Best Places to Work out score their lower ranked counterparts , with 8 out of 10 employees who believe that top ranking companies have sufficient growth opportunities, rewards and recognition measures (compared to only 5 out of 10 employees in bottom ranking companies). The insights from our Best Place to Work research shows that Investing in engaging your workforce effectively and consistently, generates most likely the best return you can get to improve your business results.

(The) Best Place to Work Award is a great initiative as it provides a benchmark for companies working in Pakistan on HR practices. It is a platform to learn best practices from across industries and companies. Fariha Salahuddin VP HR, Middle East Africa GlaxoSmithKline

Message from Our CEO, Paul Keijzer & Associate Director, Shala Agha T
his year we celebrated the 3rd edition of the Best Place to Work Study. Since its inception in 2008, the initiative has been welcomed and employed by some of the largest and most respected organizations in the country. The top ranking companies came from the manufacturing, service and FMCG sectors.What they all have in common is the desire and vision to ensure their workplace is the best it can be - best for their employees and ultimately best for business and financial performance. Our research shows that company leaders and line managers, who are able to create a trustful relationship with their employees and recognize them for their contribution are more likely to create an environment where people want to go the extra mile and are willing to stay with the company. The winner of the 2012 Best Place to Work Study was DHL Express Pakistan. CEO Safaraz Siddiqui recognized that engaging people was the key in transforming the company. DHL has not only grown exponentially, but has also set a benchmark for other companies in Pakistan to follow. Engage Consulting would like to congratulate all organizations and their leaders for their outstanding achievement in being ranked one of the Best Places to Work for 2012. Our best wishes to those that did not make the rankings but are now on a journey to creating their own high-performing, best place to work.

Hall of Fame
BEST PLACE TO WORK

2012

You have to genuinely show them [employees] action, lead with a positive attitude and totally engage in the business. When people trust in you, they go the extra mile for you. Sarfaraz Siddiqui, CEO DHL Express Pakistan

DHL Express Pakistan P&G Akzo Nobel Pakistan

BEST PLACE TO WORK - RUNNER UP BEST PLACE TO WORK - RUNNER UP

BEST PLACE TO WORK

2010

Telenor Pakistan Engro Foods GlaxoSmithKline Standard Chartered Bank Frito Lay P&G

BEST LOCAL COMPANY TO WORK FOR

We are delighted with the outcome as this is a reassurance of our continued commitment and efforts in making our beloved company the best place to work through small things, which make a big difference. Asif Malik, VP Human Resources and Life Sciences ICI.

BEST PHARMACEUTICAL COMPANY BEST FINANCIAL SERVICES COMPANY BEST FMCG BEST RISING COMPANY BEST PLACE TO WORK

2008

GlaxoSmithKline Telenor Pakistan Engro Foods

BEST PLACE TO WORK - RUNNER UP BEST LOCAL COMPANY TO WORK FOR

About the Best Place to Work Study

ngage Consulting is a pioneer in studying and recognizing the best companies to work for in Pakistan. The Best Place to Work Study was introduced in 2008 and it is the first comprehensive longitudinal study on employee engagement in Pakistan. This study has built up a rich database of 8000+ employee responses from over 45 companies on their engagement levels. The Best Place to Work Study aims to highlight what drives employees overall satisfaction with ones company, their willingness to go the extra mile, and the intent to stay with a company. Engage Consultings Best Place to Work research is committed to helping organizations across all sectors to achieve lasting improvements in their workplace relationships.The Best Place to Work is an integrated look at survey data of employees from each company, across all industries, making it Pakistans largest annual study of workplace excellence. This study surveys a sample of 100 employees on 48 statements that are based on four Engagement Clusters; Belonging, Alignment, Growth and Commitment. The Best Place to Work Study has recognized leading workplaces throughout Pakistan, including top companies such as Pepsi, GSK, Engro, DHL, Telenor, P&G, Standard Chartered and many others. Measurable business benefits and better corporate performance are the results of creating a great workplace. This report will focus on the key drivers that were highlighted in the report and the difference between Top and Bottom Ranking companies.

Importance of Employee Engagement

mployee engagement is a key business driver for organizational prosperity and a vital part of any successful workplace. Employee engagement has a strong track record of boosting productivity, minimizing wastage, increasing profit margins and improving relations with clients and suppliers, which has many vital (if not always entirely obvious) benefits as far as winning future business is concerned. High levels of engagement help in retaining talent, fostering loyalty, and improving organizational performance. Engagement is influenced by many factors; from workplace culture, organizational communication and managerial styles to trust and respect, leadership and company character.. To support a culture of engagement, HR leads the way to design, measure and evaluate proactive workplace policies and practices that help attract and retain talent with skills and competencies necessary for growth and sustainability.

Organizations with high engagement rates are

78%
more productive and

40%
more profitable than those organizations with low levels of engagement.
- Hewitt Quarterly

10 Common Themes: Measuring Engagement

1 6
6

4 9

2 7

5 10

3 8

Engagement Drivers R
esearch from the Corporate Leadership Council shows that engaging people drives commitment, which is the key to performance and retention. Highly committed employees try 57% harder, perform up to 20% better and are 87% less likely to leave. We surveyed employees from different companies on statements representing each of the Engagement Clusters. Our model is based on global research, claiming that improvements in performance are driven by two determinants: Direct Performance Enablers and Attitudes of High Performance.

Attitudes of high performance, which drive of performance improvements, are dependent on two factors:

What Makes a Company the Best Place to Work? O

ur research shows that nearly 9 out of 10 employees are engaged in the Top Ranking companies in the Best Place to Work Study compared to 6 out of 10 employees in the Bottom Ranking companies. On average 84% of employees were engaged in terms of Personal Satisfaction, Discretionary Effort and Intent to Stay in Top Ranking companies compared to a low of 58% in Bottom Ranking companies. Top Ranking companies showed commitment to their organization with 83% of employees feeling their organization energizes them to go the extra mile, while only 42% of employees in Bottom Ranking companies felt the same way.

43%

EMPLOYEE ENGAGEMENT

2
Top Ranking Companies Bottom Ranking Companies

n the basis of this research and our vast local experience, Engage Consulting has developed an Engagement Model that drives high performance in organizations.

% of engaged employees

Belonging Growth Alignment Commitment

The extent to which employees value, enjoy, and believe in their jobs, managers, teams, or organizations

Emotional Commitment

100 90 80 70 60 50 40 62% 60% 55% 46% 56% 89% 87% 80% 84% 85% % of engaged employees 90 80 70 60 50 40 48% 63% 63% 83% 86% 82%

Belonging: Sense of pride, respect, community and belonging in the organzation and its leaders. Alignment: Understanding of expectations, alignment and commitment towards organizations strategic goals. Growth: Developmet, growth and support received from organization. Commitment: Engagement levels in terms of discretionary effort and intent to stay.

The extent to which employees believe that managers, teams, or organizations are in their self-interest (financial, developmental, or professional).
(Source Corporate Leadership Council Research)

Rational Commitment

Engagement Clusters

Commitment Drivers

A Sense of Belonging T
op Ranking companies in Pakistan have 44% more engaged employees, than bottom ranking companies when it comes to the emotional ties that employees develop for their workplace. 88% of employees in Top Ranking Companies believe their leaders care deeply for their employees and their company takes responsibility of the environment and community. As a result, employees are proud to be associated with the company as well as the people they work with. On the other hand, only 44% of employees in the Bottom Ranking Companies have a sense of belonging, respect and pride in their leaders and company.

Vision & Values

Top companies not only have a stated vision and values, but their employees truly believe in that vision and are excited and motivated by it. Top company leaders and line managers embrace the values and share their passion with others in the company to ensure that each and every employee adopts the company values as their own and follow them in their day to day lives.They hold value workshops and recognize Value champions. Mediocre companies have a stated mission, vision and values, but most of the time, they hold no meaning for their employees, for they are not followed by their leaders, nor even communicated properly to employees, thus displaying 33% less engagement in comparison to Top companies.

Senior Management Communication

Leaders in Top Companies show their employees that they care by giving them face time. They meet with them and hold Q&A sessions, take rounds of the office floor or have informal discussions over a meal. Employees who have the opportunity to get to know their leaders and develop a relationship with them are more likely to respect them and follow them with enthusiasm. Compared to Bottom Ranking companies,Top Ranking companies show 60% higher engagement due to senior management making an effort to communicate with employees.

BELONGING
3 I am proud to be associated with the people I work with Belonging Drivers I am proud to work for my organization My organization is strongly commited and acts to improve the environment and its relation with our community The leadership in my organization cares deeply for its employees The leaders in my organization practice what they preach
Top Ranking Companies Bottom Ranking Companies 30 59% 91% 38% 38% 79% 40 50 60 70 80 90 100 85% 70% 77% 96%

Corporate Social Responsibility

89%

In a country like Pakistan, which is riddled with social, economical and political unrest, people are still concerned and aware of the environmental threat and feel like they have a social responsibility to give back to the society. Therefore, companies with active and streamlined CSR programs are more likely to have more engaged employees than companies that do not. Top companies have 32% more engaged employees because employees believe that their organization is strongly committed and acts to improve the environment and its relation with the community.

Proud Employees
When employees believe in what their organization stands for, respect and believe in their leaders and know that their organization is giving back to society, they are more likely to be proud to be associated with their organization and their colleagues than companies that lack those aspects. Top ranking companies have 67% more employees that feel pride in being associated with their organization and its leaders.

% of engaged employees

10

Seamless Alignment A
part from the emotional factors that contribute to how engaged your employees are, you need to align them with the strategic goals and objectives of the company, make sure they know what is expected of them, encourage team work and create a productive and pleasant work environment. Direct performance enablers are responsible for 57% in performance improvements. Nearly 9 out of 10 employees in Top Ranking Companies believe that they are strategically aligned with company objectives, know what the companys strategic drivers are and are stimulated by their work environment.

Innovation & Risk Taking

When a company involves their employees in the innovation process, not only do employees feel like they can directly contribute to the companys success, but they know that their leaders trust in their competence, since they are willing to take a chance on their ideas. Top ranking companies, on average have 51% higher engagement levels, because they ensure that innovation is being discussed regularly in meetings, they recognize employees for innovative ideas and they train employees on innovative and creative thinking techniques.

Working Together
People are social beings and thrive on human interaction. Whether it be in the workplace or at home, people need to be able to share ideas, resolve conflict and just be around others. They do this by granting team based rewards, assigning roles to team members and organizing social gatherings for employees. Nearly 90% of employees at Top Ranking companies believe that their company encourages teamwork compared to about 60% employees in Bottom Ranking companies.

Work Environment
ALIGNMENT
4
54% 82%

My work environment stimulates me Alignmnet Drivers

Companies in Pakistan that foster teamwork, open communication, environmental awareness and are sensitive to employees personal needs, have shown higher engagement levels by 28%. Employees who are happy with their work environment, feel a sense of pride for the company and their colleagues and are more likely to recommend their company as a place to work to others and go the extra mile for their company. Top companies encourage employees to have open interactions by reducing the hierarchal gaps between management levels and stimulating an open door environment.

My organization does everything possible to encourage teamwork In our organization innovation and risk taking are encouraged and rewarded
0 10 20 25%

49% 87%

76% 30 40 50 60 70 80 90 100

Top Ranking Companies Bottom Ranking Companies

% of engaged employees

11

12

Growth From Within

ut of our 4 engagement clusters, Growth is always rated the lowest, because as humans, we can never be 100% satisfied with where we are. The grass will always look greener on the other side. However, companies that have shown high engagement levels, have out done their lower ranked counterparts by 34%. 8 out of 10 employees believe the top ranking companies have sufficient growth opportunities, reward and recognition measures, compared to only 5 out of 10 employees in bottom ranking companies. While competitive pay and benefits may attract the best talent, it is an environment that promotes employee recognition, diversity and employee growth and development throughout the company that stands the best chance of sustaining growth.

Development Opportunities & Support

A key reason why people leave organizations is to pursue career growth and opportunities. Employees need to know that they have a career path within a company and they need to feel like they are being groomed for better and higher positions in the future. 80% of employees in Top Ranking companies strongly agree or agree with the development opportunities and growth that their companies are providing them compared to only 45% in Bottom Ranking companies. Top companies stimulate development opportunities and support by designing team-building activities, internal coaching and mentoring, giving stretched assignments, and benchmarking amongst others.

Recognizing Employee Contribution

Companies that acknowledge their employees contributions and efforts help promote employee loyalty and pride in their company and themselves. Employees are acknowledged for superior performance, excellence in customer service, being a team player and for going the extra mile for the organization. 8 out of 10 employees in Top Ranking companies in Pakistan believe that their organization recognizes their contribution in more ways than one, while only 4 out of 10 employees in Bottom Ranking companies feel acknowledged.

GROWTH
5 Managers support diversity at work (recognizing and respecting the value of human differences) Growth Drivers My organization recognizes my contribution My organization offers sufficient opportunities for me to enhance my career There are sufficient opportunties for me to improve my skills in my current job There are sufficient learning opportunties for me to develop myself
Top Ranking Companies Bottom Ranking Companies 30 40 50 34% 50% 56% 86% 60 70 80 90 51% 85% 40% 83% 72% 87%

Diversity
Managers who treat all employees equally and with mutual trust and respect, will cover a lot more ground with their people, than those managers who do not. Employees in Top Ranking companies were 34% more engaged when it came to agreeing that their managers support diversity in the work place.This means that Top Ranking companies in Pakistan make employees feel accepted for who they are, regardless of gender, religion, and social differences.

% of engaged employees

13

14

About Us

ngage Consulting has been born out of the strong belief that we can help companies and their people improve the way they live and work with each other. We help organizations to engage their leadership teams, talent and workforce, foster commitment towards a cocreated future and build a high performance business. Engage Consulting has offices in Malaysia and the UAE as well as Karachi and Lahore in Pakistan. Our team is expanding daily and has work experience from across the world. The diversity of the team is another unique factor which helps the Engage experience stand out from others. We consider our clients our partners, and our team works together symbiotically relying on each others expertise and vast experience so as to be able to provide our clients with the best possible solutions, customized to fit their values, ways and corporate culture. We partner with clients in designing and delivering customized leadership and people solutions that add value. Over the years we have been engaged in a great number of impactful assignments and have supported companies by assisting them in strategy development and execution, leadership development and coaching, executive search, HR assessments, HR advisory, HR strategy, talent management, strategic communication and total reward solutions.

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Leadership & HR Insights by Paul Keijzer

www.engageasia.pk

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