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Risk. Reinsurance. Human Resources.

Workforce MindsetTM Study

Aon HewittCommunication

Key Findings on What Differentiates, What Rewards, and What Communicates

What’s Up? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

What Differentiates? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

What Rewards? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

What Communicates? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

What’s Next? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30

Who Responded? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31

Table of Contents

Aon Hewitt 1

What’s Up?

The employment landscape

is shifting—employee trust is

at an all-time low, employee

engagement remains flat,

and generational differences

prevail. In fact, more than

one in three employees are

looking to switch jobs in

the next year, and nearly

half of all Millennials expect

to do so. And Boomers are

among the least engaged.

At a time when employers are looking to attract and retain talent, employees are looking for a better, unique, and more compelling work experience.

What’s really on the minds

of your employees when it

comes to the employment

experience? When you

understand what truly

matters to employees, you

can shape a total work

experience (not just an

environment) that drives

higher levels of engagement

and business performance.

Aon Hewitt’s Workforce

MindsetTM Study

comprehensively explores

employees’ perspectives

and attitudes about their

employment experience—

including values and

culture, work environment,

engagement, total rewards,

and communication—

across job categories,

demographics, regions,

industries, generations, and

more. This report answers

three critical questions

that help define the overall

employment experience from

the employee perspective: n What makes an employer

truly stand out from the

rest? (What differentiates?)

n What do employees really

think of their rewards?

(What rewards?) n How and from whom do

employees want to receive

communication and engage

in conversation? (What

communicates?)

This report only scratches the

surface of our exploration of

this unique data, but it will help

you begin to discover what

truly matters to employees

across the U.S. and what you

can do to deliver a compelling

employment experience.

Traditionalists–born prior to 1946

Boomers–born 1946–1964

Gen Xers–born 1965–1978

Millennials–born 1979–1996

Gender

Icon Key

Hourly/Salaried

Generation

Throughout this report, some numbers may not add up to 100% due to rounding or multiple

options available to employees.

2 Workforce MindsetTM Study2 Inside The Employee Mindset

What Differentiates?Offer employees a fun, flexible workplace and clearly defined opportunities to develop their careers.

“Communicate completely and honestly with me—it shapes how I view my experience.”

“Recognize my achievements and provide career development opportunities.”

“Create an experience that’s different from the rest.”

Aon Hewitt 3

“I’m looking for a workplace that’s fun, flexible, and innovative.”

Employees expect certain qualities from all employers—even when they don’t always experience them. But when asked about qualities that have the best opportunity to differentiate, most employees cite fun, flexibility, and innovation.

Characteristics that differentiate

Differentiators

Expectations

Women are more likely than men to expect this quality.

Millennials are more likely than other generations to expect this quality from all employers.

Boomers are more likely than other generations to view this quality as a workforce differentiator.

What Differentiates an Employer

What I Expect From Any Employer

Fun place to work

Flexible work environment

Innovative

Good fit with my values

Provides stimulating work

Financially successful/market leader

Great employees

Provides meaningful work

Provides good pay and benefits

Empowers employees

Good corporate citizen (environmentally/socially responsible)

Great internal and external reputation

Provides good career and/or development opportunities

Provides valuable work tools/resources, including technology

Strong management and leadership team

Collaborative and encourages teamwork

Recognizes strong achievement or performance

Communicates completely and honestly

Gen Xers and Boomers view this quality as a differentiator, whereas Millennials see it as an expectation.

4 Workforce MindsetTM Study

“I was first attracted to good pay and benefits.”

When looking for a new job, employees are most influenced by good pay and benefits, the flexibility offered, and the leadership position of the employer.

Characteristics that first attracted me to my employer (select up to five)

10%

11%

12%

14%

14%

15%

16%

17%

21%

23%

24%

26%

27%

29%

29%

31%

35%

52%

0% 20% 40% 60%

Communicates completely and honestly

Is an organization that empowers employees

Is an innovative organization

Provides valuable work tools and resources, including technology

Is a good corporate citizen (environmentally and socially responsible)

Has a strong management and leadership team


Encourages collaboration and teamwork


Is a good fit with my values

Is a fun place to work

Has a great reputation with customers/clients

Has great employees



Is financially successful or a market leader in areas in which it competes

Has a flexible work environment


Salaried employees are more likely than hourly employees to be attracted to an employer based on this characteristic.

Boomers are more likely than younger generations to be attracted to an employer based on this characteristic, as are salaried employees compared to hourly employees.

Hourly employees are more likely than salaried employees to be attracted to an employer based on this characteristic.

Aon Hewitt 5

“I’d like to see improvements in rewards, recognition, and communication.”

Good pay and benefits, recognition, and honest communication top employees’ lists of desired areas of improvement for employers. They’re also looking for improved career/development opportunities, greater flexibility, and stronger leadership.

Qualities I’d most like to see improved to increase my overall engagement or satisfaction

Ranked 1 Ranked 1, 2, 3

7%

9%

10%

11%

11%

11%

12%

13%

13%

15%

15%

17%

19%

22%

23%

24%

27%

42%

2%

3%

2%

3%

4%

3%

3%

3%

4%

4%

4%

4%

7%

7%

7%

10%

8%

24%

0% 10% 20% 30% 40% 50%

Is an innovative organization

Is a good corporate citizen (environmentally and socially responsible)

Has great employees

Is financially successful or a market leader in areas in which it competes

Has a great reputation with customers/clients



Encourages collaboration and teamwork

Is a good fit with my values

Provides valuable work tools and resources, including technology

Is a fun place to work

Is an organization that empowers employees

Has a strong management and leadership team

Has a flexible work environment


Communicates openly and honestly



Men are more likely than women to view this as a key improvement area.

Men are more likely than women to view this as a key improvement area, as are Millennials.

Women are more likely than men to rank pay and benefits as a #1, #2, or #3 improvement area, as are Boomers.

Women are more likely than men to view this as the #1 desired improvement area, as are Boomers.


Characteristic Rank*

Teamwork 1

Customer satisfaction 2

Profit 3

Quality 4

Brand image 5

Productivity 6

Accountability 7

Cost reduction 8

Financial stability 9

Community involvement 10

Making a difference 11

Employee recognition 12

Bureaucracy 13

Diversity 14

Responsibility 15

Characteristic Rank*

Employee recognition 1

Respect 2

Loyalty 3

Balance (home/work) 4

Teamwork 5

Open communication 6

Fairness 7

Honesty 8

Accountability 9

Trust 10

Positive attitude 11

Employee health 12

Employee engagement 13

Professional growth 14

Financial stability 15

While teamwork is the most often cited employment characteristic, employees feel their current workplace is devoted to business performance, systems and processes, financial matters, and organizational growth. When asked about characteristics they desire in their workplace, employee recognition is the most often mentioned.

Women are more likely than men to use these words to describe their current employer.

Words I currently use to describe my current employer

Words I’d like to use to describe my current employer

“My employer is mostly focused on the bottom line—but I’d like more focus on recognition, respect, and loyalty.”

Millennials are less likely than other generations to want recognition.

Boomers are more likely than other generations to want respect.

Women are more likely than men to want these characteristics.

*Based on rank order of number of mentions—most often mentioned is ranked “1”

Aon Hewitt 7

“The characteristics I’d really like to see in my employer don’t match my current experience.”The data suggests that employees are feeling overworked and hindered by rigid systems and processes and limited resources. They want to feel appreciated for their efforts and successes, see opportunities to advance, and be more involved in the workplace, while having ample time for their personal lives—in short, they want a more “human” workplace.

Words that describe my current and desired experiences

Current Characteristics and ValuesWhen asked about the characteristics of their current workplaces, employees focus primarily on characteristics such as teaming up to meet customer needs (teamwork and customer satisfaction are the top two characteristics), market presence (brand image and community involvement), company financial performance and bottom-line needs (profit, productivity, cost reduction, financial stability), as well as accountability and quality. Eight of the top 10 most often cited are more organizational-oriented characteristics, while two are more relationship-based (teamwork and accountability).

Desired Characteristics and ValuesWhen asked about the characteristics they desire in their workplaces, employee recognition is the most often mentioned characteristic of the desired experience. The values most often cited as desirable are more relationship-oriented values, indicating that employees want to focus on the quality of interpersonal relationships—internally, externally, or both. These values include employee recognition, respect, loyalty, teamwork, fairness, open communication, accountability, and trust.

Moving From Current to DesiredWith only two characteristics (teamwork and accountability) crossing over between the top current and desired sets, there’s a clear need for a shift in values to produce better outcomes. Employees are asking for more attention to their individual needs. Specifically, they want to feel appreciated for their efforts and successes. They would also like opportunities to advance and be more involved in the workplace, while having ample time for their personal lives. They seek just treatment, consideration, and comradery from their colleagues. They seek an environment where information flows freely and authentically and where people know they can count on one another.

Current Desired Shaded areas show biggest gaps between current and desired

Num

ber o

f Res

pond

ents

Team

work

Profi

t Qua

lity

Bran

d imag

e

Prod

uctiv

ity

Accou

ntab

ility

Cost r

educ

tion

Finan

cial s

tabilit

y

Comm

unity

invo

lvem

ent

Mak

ing

a di�e

renc

e

Bure

aucr

acy

Diversi

ty

Resp

onsib

ility

Posit

ive at

titud

e

Emplo

yee h

ealth

Emplo

yee e

ngag

emen

t

Prof

essio

nal g

rowth

Et

hics

Prof

essio

nalis

m

Bein

g th

e bes

t Ex

celle

nce

Contin

uous

impro

vem

ent

Organ

izatio

nal g

rowth

Long

hou

rs

Achiev

emen

t

Goals

orien

tatio

n

Perso

nal g

rowth

E�

cienc

y

Compas

sion

Empow

erm

ent

Inte

grity

Eq

ualit

y

Coach

ing/

Men

torin

g Tr

ust

Hones

ty

Fairn

ess

Balan

ce (h

ome/

work)

Lo

yalty

Re

spec

t

Emplo

yee r

ecog

nitio

n

Custo

mer

satis

factio

n

0

100

200

300

400

500

600

700

800

Open co

mm

unica

tion

*Based on rank order of number of mentions—most often mentioned is ranked “1”


“Flexibility is important to me, and I may not be getting enough of it.”Across the board, a flexible work environment shows up as a quality that differentiates employers. The data suggests that while women and men view flexibility as having similar importance, men have a more positive perception of their existing work/life programs and women are more likely to desire improvements in this area.

Thirty-seven percent view a flexible work

environment as a differentiator at their current

employer. This is the second most often cited

differentiator behind a fun work environment.

#5Flexibility ranked #5 on the list of

desired improvement areas (behind pay,

communication, recognition, and career

development opportunities).

Salaried employees are more likely than hourly

employees to desire improvement in this area.

Women are more likely than men to list

“has a flexible work environment” as a top 3

improvement area.

Men are more likely than women, and

salaried employees are more likely than

hourly employees, to believe their current

employer’s work/life balance programs are

better than other employers’ programs.

Aon Hewitt 9

“I want more career development opportunities.”

Career and/or development programs are among the areas employees view as important from all perspectives: influential in first attracting employees to employers, an expectation of all employees (though a potential differentiator in some cases), and an improvement area.

n More than three-fifths expect career and/or development opportunities from all employers.

n One-third of employees cite good career and/or development opportunities as a characteristic that first attracted them to their current employer. One-third also say it’s what sets their current employer apart from most other organizations.

n For some employees, there’s room for improvement. If their employers provided better career and/or development programs, one-quarter say it would be impactful on engagement and employee satisfaction.

Millennials are more likely to perceive the career

and/or development opportunities at their employer

as better than that of other employers.

Millennials are also more likely to expect career and/or

development opportunities from any employer.

Boomers are more likely to see career and/or

development opportunities as a differentiator.

Boomers are also more likely to identify career

and/or development opportunities as a desired

improvement area.


“I work to provide for my family…but work means so much more to me than that.”

Work plays a number of roles in employees’ lives. Not surprisingly, employees work to afford a certain lifestyle. But there are so many other important aspects.

This description best describes the role that work plays in my life, beyond providing desired lifestyle*

7%

8%

12%

6%

6%

9%

13%

14%

21%

0% 10% 20% 30% 40%

Express my creativity or entrepreneurial/innovative spirit

Help and guide others to be their best

Collaborate and interact with peopleI enjoy and respect

Be a valuable part of a winning team

Be challenged and stimulated through a variety of experiences

Contribute to society in a meaningful way/provide service and support to others

Do what I do best and be recognized as an expert

10%

15%

14%

15%

17%

11%

13%

16%

20%

22%

21%

28%

30%

35%

39% Build my skills/abilities to become better

or more valuable Building skills/abilities is more likely to play a significant role for men and Millennials than other groups.

Being a valuable part of a winning team and collaborating with people are more important to Boomers than others.

Men are more likely than women to view this as primary or secondary.

Total Primary Secondary

*Figures represent percentage citing each role work plays, not including “afford lifestyle I and my family desire,” which is citied by 62% as a primary or secondary role.

Women are more likely than men to view this as primary or secondary.

Women are more likely than men to view this as primary or secondary.

Aon Hewitt 11

Sure, employees are looking for an employment experience that meets

their basic needs, like good pay and benefits. But they also want a fun,

flexible workplace that provides clearly defined opportunities for career

growth. The advantage of a work experience that achieves both? Higher engagement and the ability to attract and retain the right talent to move your business forward.

Here are a few questions to consider as you think about building a

compelling work experience for employees:

n Have you defined your employment value proposition—what you

expect from employees and what they can expect in return?

n What differentiates your employment experience? Are you highlighting

those differentiators that are most important to employees, like

flexibility and opportunity?

n How are you fully addressing the basic expectations of employees, like

open communication and teamwork?

n How much focus are you placing on providing opportunities to build

skills and experience, especially if you’re looking to attract Millennials?

n How compelling is your employment story to your most critical talent?

n How consistent and reflective of today’s media is your employee

communication—are you using the most effective language, tone,

and style to tell your employment story?

Ask Yourself


What Rewards?Consider what’s most valuable and engaging to employees when marketing your total rewards.

“Focus on me, as an employee. After all, my rewards are personal.”

“Make my total rewards package stand out from the rest…and spell it out.”

“Offer programs that are well-balanced: good pay, benefits, flexibility, and job training.”

Aon Hewitt 13

“Pay is important, but it’s not the only thing that matters to me.”

When asked to allocate 100 points across each component of their total rewards, employees consistently allocate the most value to pay–averaging an allocation of 38 points. Health and wellness benefits and retirement and financial wellness benefits have a similar average allocation, and together account for about one-quarter of average overall value. This data suggests that it remains important to help employees understand how pay and benefits add value, while focusing efforts on other important components like paid time off, work/life balance, and career development.

The value of total rewards programs

Millennials allocate less value to

retirement and financial benefits

than Boomers.

Career development and learning

7%

Pay 38%

Health and wellness benefits15%

Retirement and financial wellness

benefits13%

Work/life balance support

10%

Life and disability insurance

6%

Paid time off11%

Millennials allocate more value to career

development and learning than others.

Salaried employees allocate more value to career

development and learning than hourly employees.

Salaried employees allocate more

value to retirement and financial

benefits than hourly employees.

Women allocate more

value to paid time off

than men.

Women allocate more value to

work/life balance than men.

Men allocate more value

to pay than women.


77%

49%

52%

56%

61%

14%

25%

25%

28%

23%

5%

11%

11%

9%

7%

4%

15%

12%

7%

9%

0% 20% 40% 60% 80% 100%

At my place of employment, I have a good understanding of my total rewards overall

Support our organization’s ability to retain employees

Support our organization’s ability to attract employees

Have a significant impact on the company’s reputation

Meet my/my family’s needs

Strongly Agree/Agree Slightly Agree Slightly Disagree Disagree/Strongly Disagree

“My total rewards may be sufficient, but they don’t stand out.”

At 61%, the majority of employees feel their total rewards adequately meet their families’ needs, though more than one-third do not agree. With rising health benefit costs for employees and relatively flat wage increases, the frustration with rewards is beginning to show in employee attitudes. Employees are less likely to see total rewards supporting attraction and retention effectively.

My total rewards overall...

Salaried employees are more likely than hourly employees to say their current total rewards meet their needs and help their employer attract and retain talent.

Millennials and Gen Xers are more likely than others to say their total rewards help retain talent.

Aon Hewitt 15

60%

61%

64%

67%

70%

77%

78%

80%

83%

84%

77%

19%

20%

15%

14%

17%

11%

11%

11%

9%

8%

14%

7%

8%

7%

6%

5%

4%

4%

3%

3%

2%

4%

8%

8%

11%

10%

6%

6%

5%

4%

4%

4%

4%

6%

3%

3%

3%

2%

2%

2%

2%

1%

2%

1%

0% 20% 40% 60% 80% 100%

Work/life balance programs

Career development/training programs

Bonus (incentives and commissions)

Pension plan


Company match and/or basic contributionsto 401(k) type plans

Dental coverage/insurance

Medical coverage/insurance

Base pay

Vacation and holidays

Total rewards overall

Strongly Agree/Agree Slightly Agree Slightly Disagree

Disagree/Strongly Disagree Not Aware

“I have a reasonably good understanding of my reward programs.”

Employees have a strong awareness and good perceived understanding of the vast majority of their rewards. Paid time off and base pay are most understood. Bonus, career development/training, and work/life balance programs are least understood.

At my place of employment, I have a good understanding of...

Men are more likely to report greater understanding of their total rewards than women.

Rewards are less understood by Millennials and hourly employees.


“My rewards are pretty much the same as other companies’ rewards.”

When compared to perceptions of rewards at other companies, employees generally view their total rewards as being about the same as others’. Among the total rewards employees feel fall short are bonus, base pay, work/life balance programs, and career development/training. This data shows a relationship between employee understanding and perceptions of competitiveness—many of the least understood programs (career development/training, work/life balance, and bonus) are also viewed as the least competitive.

Compared to what I think other employers are offering, this reward is…

Across the rewards areas, men are more likely to perceive their total rewards as more competitive than women.

Perceived competitiveness is also higher among Millennials.

Perceived competitiveness is lower among Boomers and Traditionalists.

30%

33%

34%

36%

36%

37%

37%

38%

41%

42%

40%

59%

53%

44%

44%

34%

49%

36%

47%

41%

44%

44%

11%

14%

22%

20%

30%

14%

27%

15%

18%

14%

16%

0% 20% 40% 60% 80% 100%






Company match and/or basic contributionsto 401(k) type savings plans

Base pay


Pension plan


Total rewards overall

Well Above/Above About the Same Below/Well Below

Aon Hewitt 17

Employees who view these programs as better than those offered by others are nearly three times more likely to be engaged than other employees.

Millennials are more likely than others to view these programs as better than those of other employers.

“Total rewards have an impact on my engagement.”

There’s a strong relationship between employee perceptions of total rewards and employees’ overall engagement levels. Employees who rank their total rewards above others are also more engaged.

Compared to what I think other employers are offering, this reward is well above or above other employers’...

Men are more likely than women to view their pay programs as better than others’.

Men are more likely than women to view their bonus as better than what others provide.

Engaged Disengaged Total Population

Employees who view their total rewards as competitive are 2.5 times more engaged than other employees.

30%

33%

34%

36%

36%

37%

37%

38%

41%

42%

44%

51%

52%

52%

52%

52%

50%

54%

19%

24%

19%

20%

22%

24%

24%

29%

29%

0% 10% 20% 30% 40% 50% 60%






Company match and/or basic contributionsto 401(k) type savings plans

40%

24%

42%

Base pay


Pension plan


Total rewards overall 60%

24%

55% 32%


“When it comes to my employer’s total rewards, nothing stands out.”

Many employees don’t think their current rewards differ from what other companies offer. Others describe how specific reward programs stand out.

Here are some total rewards that do stand out for employees:n Reasonably priced medical coveragen Time-off benefits, flexibility, and paid time off to help care for personal obligationsn Efforts to be rewarded and recognized (both formally and informally)n An overall work experience that’s fun, collaborative, stable, caring, fair, and family-oriented

What stands out about my current employer’s total rewards?*

Employee experience/recognition208

Base pay223

Paid time off239

Medical/prescription drug240

Total compensation253

Nothing stands out351

“Recognition for teamwork.” (Gen Xer)

“Recognition is the biggest thing. Even if you only get honorable mention, it still means a lot.” (Boomer/Traditionalist)

“You are a person, not a number.” (Boomer/Traditionalist)

“I get 4 weeks’ vacation each year plus a bonus. This is the best job I’ve ever had regarding these perks.” (Boomer/Traditionalist)

“I love the total rewards because I’m given extra vacation time to spend with my parents.” (Millennial)

“We have a chance to earn sick, vacation, and personal time. This allows us to be able to handle our family obligations with paid time off. “ (Gen Xer)

“My company stands out because of the base pay offered.” (Millennial)

“My pay is way too low in comparison to the contribution I make to the company’s success.” (Gen Xer)

“The health care coverage is very good, and at this point I only have copays. No monthly fees come out of my paycheck to cover the premium.” (Millennial)

“Everything is about average. Nothing

stands out.” (Boomer/Traditionalist)

“Our program is well-balanced. Good pay, benefits, and job training.” (Boomer/Traditionalist)

“Honestly, there isn’t much I know about it.” (Gen Xer)

*Figures represent the number of comments mentioned for each category.

Aon Hewitt 19

Total rewards represent everything an employer provides to an employee—

they go beyond pay and benefits to include the work environment and

many other elements. Survey results show that employees who understand

and value their total rewards are more engaged overall. With the least understood rewards also being viewed as the least competitive, you have the opportunity to set your organization apart by improving the perceived value of your total rewards.

Here are a few questions to consider as you think about designing,

communicating, and delivering total rewards to your employees:

n Have you clearly defined and articulated your total rewards strategy or

guiding principles?

n How do you show the value of all total rewards, including pay and benefits,

as well as work/life balance programs, career development and learning,

and recognition?

n How well do your employees understand their rewards? What are

their perceptions? Are you getting the optimum return from your overall

investment in total rewards?

n What are you doing to ensure that your total rewards are communicated

and delivered effectively—across the employment life cycle?

n What role do you want managers to play in the communication and

delivery of total rewards? What are you doing to prepare them?

Ask Yourself


What Communicates?

“I want communication that’s relevant to me, like my performance and career advancement.”

“Honesty and transparency are key— it’s obvious when it’s not.”

“Help connect me to senior leaders.”

Authentic and hyper-relevant communication delivered through a variety of channels best reaches employees.

Aon Hewitt 21

37%

40%

46%

46%

40%

46%

46%

47%

33%

39%

38%

47%

16%

18%

24%

24%

18%

23%

23%

24%

10%

15%

14%

22%

63%

65%

72%

72%

66%

73%

74%

75%

61%

67%

67%

77%

0% 20% 40% 60% 80% 100%

My manager discusses career and learning opportunities with me appropriately

Communication from human resources is e�ective

My manager checks in with me regularly on progress or concerns I may have

Communication from other employees is e ective

Senior leadership is appropriately visible and accessible to employees

I know what I need to do to get ahead at my company

My manager provides relevant and valuable input to improve my performance and/or work experience

My manager shares relevant information aboutthe business and work environment with me

Senior leadership fills me with excitement for the future of this organization

Senior leadership in this organization provides clear direction for the future

Senior leadership is open and honest in communication

I feel encouraged to share my ideas and opinions with others

Engaged Not Engaged Total Population Gap

“Open dialogue, especially with leaders, will boost my engagement.”

Employees who feel informed are also more engaged, most notably when it comes to feeling encouraged to share ideas and seeing open and honest senior leadership communication. For example, employees who view leadership as open and honest are nearly five times more engaged than those who don’t. Our data shows a significant gap between the communication perceptions of employees who are engaged and those who are not.

Communication perceptions by engagement (strongly agree/agree)

Across all segments, employees say that complete and honest communication could improve their engagement. In fact, “Communicates completely and honestly” was the #2 most often cited area for improvement behind “Provides good pay and benefits.”

55%

53%

52%

51%

51%

51%

50%

48%

48%

47%

47%

Millennials are less likely than other generations to feel informed about HR and business issues. However, they have better relationships with their managers compared to other generations.

48%


46%

42%

40%

40%

38%

38%

35%

33%

30%

30%

25%

26%

22%

23%

52%

55%

56%

57%

58%

60%

55%

62%

62%

64%

65%

67%

71%

73%

3%

3%

4%

3%

4%

2%

11%

5%

8%

7%

10%

7%

7%

3%

0% 20% 40% 60% 80% 100%

Recognition of your e�orts and accomplishments

Career and/or development opportunities

Work/life balance and/or stress management

Incentive/bonus pay (including commissions)

Personal finances/financial planning

Base pay

Changes in the organization

What’s happening in your organization (employee news, concerns, accomplishments)

Feedback on your job performance

Financial performance of the organization

The organization’s goals and priorities

Personal health and wellness

Your job (role and responsibilities)

Company-provided benefits (medical, retirement, etc.)

“For most things, I get the right amount of information…but there’s room for improvement.”

Most employees feel they’re getting the right amount of communication on most topics. The biggest opportunities for improvement are in the areas that also are most important to engagement (i.e., career and/or development opportunities, work/life programs, and incentive/bonus pay).

Amount of communication received on the following topics

Too Little Just Right Too Much

Gen Xers are more likely to value the personal health/wellness communication they receive.

Millennials and Gen Xers are more likely than other generations to think communication about their pay (base pay, incentive/bonus pay, personal finance and planning) and their jobs (performance feedback and career and/or development opportunities) is valuable.

Millennials are more likely to say the communication they receive about recognition is valuable.

Aon Hewitt 23

57%

60%

58%

64%

55%

62%

56%

52%

67%

65%

62%

62%

71%

73%

61%

66%

67%

70%

70%

71%

71%

72%

73%

73%

75%

76%

79%

82%

0% 20% 40% 60% 80% 100%

Incentive/bonus pay





What’s happening in your organization


Recognition of your e orts and achievements


The organization’s goals and priorities

Base pay


Your job

Company-provided benefits

“On benefits and wellness, you’ve got it covered.”

Employers typically make significant time and financial investments in communicating about benefits, and increasingly, about wellness. The investments appear to be paying off. Employees feel that communication about company-provided benefits is very valuable and they’re receiving just the right amount. Don’t let up!

The value and amount of communication received about...

Millennials are more likely to feel they receive the right amount of communication related to recognition of their efforts and achievements compared to Boomers, who tend to say they receive too little recognition.

Salaried employees are more likely than hourly employees to say the amount of communication they receive is “just right.”

Women are less likely than men to share this viewpoint.

Valuable Just Right


79%

82%

73%

73%

70%

71%

76%

71%

66%

75%

61%

67%

70%

72%

22%

23%

25%

26%

30%

30%

33%

35%

38%

38%

40%

40%

42%

46%

0% 20% 40% 60% 80% 100%

Your job

Company-provided benefits

The organization's goals and priorities



What's happening in your organization




Base pay

Incentive/bonus pay



Recognition of your e�orts and achievements

“I want to be recognized and know how to move ahead—and I’m not hearing enough about that.”

Personal recognition, opportunities to move ahead, incentive/bonus pay, and work/life balance and/or stress management are all important. Many employees feel they don’t get enough communication about those things.

The value and amount of communication received about...

Too Little Valuable

One-third of Millennials say they don’t receive enough communication about recognition or career and/or development opportunities.

Gen Xers and Boomers, many of whom are the Millennials’ managers, are more likely to be dissatisfied with the amount of communication they receive about development opportunities. They’re also more likely to want more personal recognition.

Aon Hewitt 25

Employees expect an array of media, including emails, online information, one-on-one time with managers, and messages from senior leaders. How to reach employees most effectively depends on the topic.

Channels and sources from which I prefer to receive this communication topic (#1 and #2 preferences)

Topic #1 Channel

#2 Channel

#1 Source

#2 Source

Job roles and responsibilities Manager Leader

Feedback on job performance Manager Leader

Recognition of employees’ efforts and achievements Manager Leader

Pay Manager HR

Career and/or development opportunities Manager HR

Work/life balance HR Manager

Company-provided benefits HR Corporatecommunication

Personal health and wellness HR Corporatecommunication

Personal finances/financial planning HR Corporatecommunication

The organization’s goals and priorities Leader Corporate

communication

Changes in the organization Leader Corporatecommunication

What’s happening in the organization

Corporatecommunication Leader


Corporatecommunication Leader

How From Whom

“Email is still the killer app, but managers and leaders matter.”

Mobile and social media channels such as text messages and Twitter feeds don’t make the top 3 preferred channels for any topic, though Millennials show a significantly higher preference for mobile and social media channels.

Salaried employees have a significantly stronger preference for email; hourly employees prefer more variety (such as meetings or print channels). Salaried employees are also more likely to prefer communication about the organization from senior leaders, while hourly employees prefer to get the information from corporate communications.

For benefits communication, Gen Xers and Boomers have a slightly stronger preference for print than Millennials.

Email 1-on-1 meeting Internal company website In-person group meeting


When it comes to pay, individual performance, and job-related information, a large majority of employees prefer to hear from their managers through one-on-one conversations.

Communication channel preference (#1 channel choice/#2 channel choice)

“I want to hear from my manager about my pay, my performance, and my opportunities.”

Fifty-one percent prefer to receive information on pay one-on-one. Gen Xers and Boomers are more likely than Millennials to prefer one-on-one interaction.

When it comes to performance and job-related information, more than 70% of employees say they want to hear it from their managers.

Topic #1 Channel #2 Channel #1 Source #2 Source

Pay Manager HR

Job roles and responsibilities Manager Leader

Feedback on job performance Manager Leader

Career and/or development opportunities Manager HR

Recognition of employees’ efforts and achievements Manager Leader

How From Whom

Email 1-on-1 meeting Internal company website In-person group meeting

Icon Key

Aon Hewitt 27

25%

22%

21%

21%

19%

20%

16%

16%

15%

14%

21%

24%

23%

22%

23%

20%

22%

21%

20%

20%

23%

24%

26%

24%

25%

24%

30%

26%

27%

29%

31%

30%

30%

33%

33%

36%

32%

37%

38%

37%

0% 20% 40% 60% 80% 100%

When asked to describe their current communication on a spectrum, here’s how employees view the experience. Exploring principles of content marketing and adding elements of social media and/or user-generated content are beginning to take root in creating greater innovation, inspiration, and authenticity for employees.

Characteristics of communication at current employer

“Communication is generally helpful and clear, yet could be more proactive, innovative, and inspiring.”

Irrelevant/untimely

Not helpful

Unclear

Dated

Full of spin/concealing something

Discourages participation and dialogue

Fragmented

Uninspiring

Traditional

Reactive

Relevant/timely

Helpful

Clear

Contemporary

Authentic/straightforward

Invites participation and dialogue

Complete

Inspiring

Innovative

Proactive

Boomers are more likely than others to describe

communication at their employer as “reactive,”

“dated,” and “traditional.”

Millennials are more likely to describe the

communication as “inviting participation and

dialogue” as well as “relevant/timely.”

Less Effective More Effective


“I want open and honest communication from HR, corporate communication, and leaders.”

Nearly eight out of 10 employees surveyed took the time to respond to this open-ended question: What would improve my organization’s communication? Their #1 suggestion? More honesty and transparency. Many comments also point to the need for a stronger connection between management and employees.

What would improve my organization’s communication?*

Honesty/openness263

Relevance161

Employee experience/respect118

Corporate communication111

Meetings102

“If higher-level employees would explain more to the lower-level employees. More face-to-face contact.” (Millennial)

“Leadership should just be straightforward with employees. They seem to play hide the ball with information.” (Boomer/Traditionalist)

“There seems to be a lot that happens above my position that affects us, but we’re not told.” (Millennial)

“Cut down on mass, verbose communications… or at least have line managers boil down each team’s takeaway/action items from a mass communication.” (Gen Xer)

“Inform associates of things that impact their job and employment.” (Boomer/Traditionalist)

“Getting rid of all the ‘corporate lingo’ and having a more authentic work environment.” (Millennial)

“Being interested in the betterment of employees’ lives.” (Gen Xer)

“Have more meetings to keep employees informed

on upcoming changes.” (Gen Xer)

“Members of upper management actively engaging with employees to find out what processes we go through to get a job done, encouraging employees to voice opinions, concerns, and ideas.” (Gen Xer)

“If the top of the management chain would remember that those in direct contact with the public are actual people and not machines, that would be great.” (Millennial)

*Figures represent the number of comments mentioned for each category.

Aon Hewitt 29

You spend considerable time and resources delivering communication. And

you hear, “Our employees don’t read.” It’s time to deliver relevant messages

and invite dialogue. Employees have diverse needs and preferences when it comes to communication. Take the time to find out what would lead them to pay attention. Then consider how to use the resources you have to meet them where they are.

Here are a few questions to consider as you think about delivering more

effective, interactive communication between your company and employees:

n Where are your communication efforts and investments focused? Are you

providing employees with enough information on relevant topics?

n How are you addressing the needs of difficult-to-reach segments such as

production, remote/virtual, or mobile employees?

n Are you leveraging multimedia communication methods and

contemporary marketing techniques (e.g., content marketing, social media,

user-generated content), including those that employees use and expect

outside the workplace? Are you balancing electronic with face-to-face

communication effectively?

n How are you focusing your communication on important topics like

recognition and opportunities?

n How often do you expect managers to connect with employees

individually to discuss performance and job-related topics,

including development?

n What are you doing to support managers in communicating about topics

that are important to employees—like pay, performance, and career?

Are managers recognized appropriately for doing so?

Ask Yourself


What’s Next?

Ready to take action? Here are a few recommendations for making sure your employment experience truly stands out from the rest in areas that matter to employees—the work environment, total rewards, and communication.

Define Your Unique Employment Value PropositionYour employment value proposition should clearly articulate the particular features

of your work experience that are most compelling and differentiating. It should

support your business as well as your ability to attract and retain employees. When

developing your employment value proposition, be sure to address what employees

expect as well as what they desire—and consider how total rewards fit in.

Focus on the Things That Matter to EmployeesYou can’t forget about pay and benefits. But employees are clearly saying they want

greater focus on recognition and career opportunities. And it’s important to think about

how total rewards programs are delivered across the employment life cycle—from the

time an employee is hired through retirement.

Tell Your Compelling StoryWhen it comes to the employment experience and the total rewards you offer employees,

be clear about your story—what’s expected of employees and what they can expect in

return. Tell that story in a compelling way. Inspire action by making it clear to employees

what it takes to meet both business and personal needs. And communicate consistently—

using effective language, tone, and style each time you reach out to employees.

Leader and Manager Communication Skills MatterEmployees want to hear from their managers about some things—like pay, performance,

and career. Managers need to connect more frequently with employees individually

to discuss performance and job-related topics, including development. Committing

resources to help managers have meaningful conversations with employees, in particular

about pay, is worth the effort. When managers communicate well, it makes a difference

in employees’ engagement.

Aon Hewitt 31

Who Responded?

This inaugural effort of Aon Hewitt’s Workforce Mindset Study comes from a survey administered by The Futures Company online within the U.S. in August 2014. A diverse group of 2,539 employees working in companies with at least 1,000 people completed the comprehensive survey. Results reflect the U.S. employed population across many categories, as shown below:

Gender Age

Employment Company Size (Number of U.S.-Based Employees)

Male51%

Female49%

Employed full-time(30 hours or more per week)

89%

Employed part-time(less than 30 hours per week)

11%

18–24 5%

25–39 31%

40–49 27%

50–59 25%

60+ 12%

1,000–1,999 10%

2,000–4,999 20%

10,000–24,999 16%

25,000 or more 36%

5,000–9,999 19%


Industry

Public sector and health care

26%

Manufacturing and energy

20%

Retail and wholesale trade 19%

Financial services and insurance

13%

Business services and construction

12%

Utilities and telecommunications

6%

Media, entertainment, and leisure

5%

West20%

Region

Northeast20%

Midwest25%

South36%

Aon Hewitt 33

Personal Income

Household Income

< $25,0004%

$25,000–$74,99941%

$150,000 or more11%

$75,000–$99,99921%

$100,000–$149,99923%

< $25,00013%

$25,000–$74,99956%

$100,000–$149,99913%

$75,000–$99,99915%

$150,000 or more4%


Asian6%

Race

Household Status

White71%

African-American9%

Hispanic/Latino(a)12%

American Indian or Alaska native 1% Multiracial 1% Prefer not to say 1%

Union Status

Union21%

Nonunion79%

Single, with dependents

9%

Married/domestic partner, with dependents

33%

Married/domestic partner, no dependents

30%

Single, no dependents

28%

Aon Hewitt 35

Hourly vs. Salaried

Job Description

Hourly51%

Salaried49%

Senior management7%

Individual contributor58%

Supervisory19%

Middle management16%


Client or customer location6%

Some college23%

EducationEducation

Primary Work Location

Some or no high school1%

High school graduate11%

College graduate/undergraduate degree41%

Advanced/postgraduate degree18%

Some advanced/postgraduate education6%

Main office/large office location49%

Your home/home office5%

Factory, production facility, or distribution center

12%

Field office/satellite or smaller regional office

19%

Other9%

ContactsPam [email protected]

Ray [email protected]

Anne [email protected]

Christin [email protected]

Aon Hewitt empowers organizations and individuals to secure a better future through innovative talent, retirement and health solutions. We advise, design and execute a wide range of solutions that enable clients to cultivate talent to drive organizational and personal performance and growth, navigate retirement risk while providing new levels of financial security, and redefine health solutions for greater choice, affordability and wellness. Aon Hewitt is the global leader in human resource solutions, with over 30,000 professionals in 90 countries serving more than 20,000 clients worldwide. For more information, please visit aonhewitt.com.

About Aon Hewitt

About Aon Aon plc (NYSE:AON) is the leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 66,000 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, best reinsurance intermediary, best captives manager, and best employee benefits consulting firm by multiple industry sources. Visit aon.com for more information on Aon and aon.com/manchesterunited to learn about Aon’s global partnership with Manchester United.

© Aon plc 2015 . All rights reserved .The information contained herein and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information and use sources we consider reliable, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate profes-sional advice after a thorough examination of the particular situation.

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