Press Releases

-- WorkCanada^TM study reveals room for improvement in building employee trust and commitment. --

Toronto, March 29, 2007 – They were born in different decades, live different lifestyles and are concerned about different issues, but Canadian employees across all age groups are largely motivated by the same things to excel in their jobs. The WorkCanada^TM 2006/2007 survey of employee attitudes, released today by leading global consulting firm Watson Wyatt Worldwide, shows that generational differences in drivers of engagement are not as wide as perceived.

Based on survey findings, the leading drivers of employee engagement include management’s ability to demonstrate leadership and strategic direction that builds confidence in the prospects for long-term corporate success; effective reward programs; and frequent, clear two-way employee communication.

Employee Engagement Drivers by Age Group

Age Group	#1 Driver	#2 Driver	#3 Driver
Under 30	Strategic Direction /Leadership	Rewards (pay & benefits)	Communication
30-39	Rewards (pay & benefits)	Strategic Direction /Leadership	Communication
40-49	Strategic Direction /Leadership	Rewards (pay & benefits)	Communication
50-59	Strategic Direction /Leadership	Rewards (pay & benefits)	Communication; Training & Development
60 and over	Strategic Direction /Leadership	Rewards (pay & benefits)	Communication

“Widely held beliefs about generational differences in the workplace may lead organizations to develop programs that can actually diminish employee engagement,” says Debra Horsfield, Practice Leader, Organization Effectiveness with Watson Wyatt. “Employers should avoid an emphasis on labels and instead focus on commonalities in what motivates employees.”

Employee Trust and Communication with Leadership

Less than half of survey participants (44%) trust their company’s leadership, with the level of trust dropping substantially at lower levels of the organization. And only 43 per cent of employees say their leaders respond to questions with “straight answers”.

“The survey dispels another myth that employees know what their leaders are thinking,” says Horsfield. “The findings clearly indicate there is room for improvement in establishing effective two-way communication with employees, in order to generate a higher level of employee motivation and commitment.”

Employee Engagement and the Bottom Line

The Watson Wyatt study also examines the importance of employee engagement to a company’s financial performance. Canadian companies with high employee engagement levels demonstrate better annual total returns to shareholders (TRS), higher market premiums and higher productivity levels than those with low engagement.

	1-yr TRS	Market Premium	Productivity*
High Engagement	24.1%	6.8%	$484,000 per ee
Low Engagement	14.6%	-8.8%	$328,000 per ee

* Productivity is measured as revenue per employee

“With impending labour shortages, employee engagement will play a key role in addressing this challenge,” says Horsfield. “To be successful in improving engagement, organizations should survey employees to identify and clarify what drives their motivation and loyalty. Employers should then apply those drivers to employee initiatives and programs.”

About WorkCanada 2006/2007
Conducted in 2006, the seventh Watson Wyatt WorkCanada survey asked more than 3,000 Canadian employees across all job levels and industries about their attitudes toward the workplace and their employers. Results are considered accurate to within +/- 1.74 per cent and can be generalized across the Canadian workforce.

About Watson Wyatt Worldwide
Watson Wyatt (NYSE: WW) is the trusted business partner to the world's leading organizations on people and financial issues. The firm’s global services include: managing the cost and effectiveness of employee benefit programs; developing attraction, retention and reward strategies; providing strategic and financial advice to insurance and financial services companies; advising pension plan sponsors and other institutions on optimal investment strategies; and delivering related technology, outsourcing and data services. Watson Wyatt has 6,000 associates in 30 countries. In Western Canada, the firm serves clients from Vancouver and Calgary; in Central Canada from Toronto and Kitchener-Waterloo; and in Eastern Canada from Montreal. For more information, visit www.watsonwyatt.com/canada.