Hewitt Associates Announces 50 Best Employers in Canada

As baby boomers begin to retire and the challenge to hang on to top talent increases, 50 Canadian organizations have clearly demonstrated that they understand how to attract and retain the employees they need to meet their business objectives, according to Hewitt Associates (NYSE: HEW), the global human resources firm that conducts the annual Best Employers in Canada study. These organizations have been named the 50 Best Employers in Canada for 2006 in a list published today in the Globe and Mail´s Report on Business magazine and in La Presse. Hewitt´s Best Employers in Canada study is the only list based primarily on employees´ opinions.

"The companies that made the Best Employers list are ones that have developed people strategies that are designed to facilitate, promote and achieve corporate success," said Neil Crawford, leader of Hewitt´s Best Employers in Canada study. "This is what Hewitt refers to as employee engagement, where employees both see and feel a connection between their daily contributions and the success of their organization. In our experience, this connection is extremely important. The stronger the connection, the greater the motivation and commitment on the part of workers to help their employer achieve its goals."

This year, 137 organizations and more than 100,000 employees participated in Hewitt´s Best Employers in Canada study. Employees determined which employers made the list based on their responses to a confidential opinion survey.

Employee Engagement = Strategic Advantage

High employee engagement can make the difference between winning the war for talent and losing. Figures from this year´s Best Employers in Canada study show that, on average, 78 per cent of employees are engaged at the 50 Best Employers, compared to just 57 per cent at other participating organizations.

"Employee engagement is not simply about creating ´happy´ or ´loyal´ employees, but about measuring the emotional and intellectual commitment employees demonstrate for the organization for which they work," said senior Hewitt consultant Ted Emond. "Best Employers know that a highly engaged workforce provides a strategic advantage that will benefit them, particularly in attracting and retaining key employees."

In fact, leaders at the 50 Best Employers are far more likely to believe they are attracting the people they need for business success (86 per cent) versus leaders at other organizations (68 per cent). In addition, the average full-time voluntary turnover rate for Best Employers is 8 per cent, versus 11 per cent at other participating organizations. The difference is even greater when it comes to the average part-time voluntary turnover rate: 19 per cent at the Best Employers versus 28 per cent at other participants.

Driving Employee Engagement

While there are a variety of methods for creating a highly engaged workforce, Hewitt identified three important areas where the 50 Best Employers in Canada outshine other organizations, resulting in a significant positive impact on employee engagement:

1. Leadership Direction: leaders at the 50 Best Employers are more likely to:
   
   
   • Be clear about where the organization is going and what it takes to get there.
   • Display passion and enthusiasm for the future.
   • Build trust with employees by making commitments and consistently delivering on them.
   • Roll up their sleeves and work alongside employees to get the job done.
   • Focus most of their time and energy on coaching employees to be successful.
   • Listen to what the front line is saying and take corrective action quickly.
   • Create personal connections with employees.
2. Career Development and Opportunities: leaders and managers at the 50 Best Employers are more likely to:
   
   
   • Hire people based on their potential.
   • Constantly talk about the importance of growth and development, and ensure that resources are available to support career development programs and practices.
   • Be truly excited at the prospect of grooming their successors and helping employees reach their potential.
   • Make sure that the most qualified people are promoted.
   • Be properly equipped and trained to proactively coach employees through career development discussions on an ongoing basis.
   • Ensure that the human resources function has the expertise and resources to support managers and employees as they pursue their development plans.
   • Actively work to remove organizational barriers to career development and advancement.
   • Adopt a bias towards internal promotion rather than external hiring.
3. Recognition: leaders and managers at the 50 Best Employers are more likely to:
   
   
   • Act as consistent role models and demonstrate what recognition looks like, particularly towards new hires within the organization.
   • Notice extra work.
   • Deliver recognition sincerely and with an expression of true appreciation.
   • Recognize employees´ family members when appropriate.
   • Tailor recognition to the unique situation and the individual involved.

Excelling in these three areas is not about having the best programs. It´s about building these practices into the culture so that they happen every day and become second nature," said Crawford. "The commitment, patience and single-mindedness required to initially build these practices are extraordinary, but once they are in place they become self-sustaining and the rewards stretch well beyond the bottom line."

For more information on Hewitt Associates´ Best Employers in Canada study, please visit the Best Employers in Canada Web site at www.hewitt.com/bestemployerscanada.

About Hewitt Associates

With more than 60 years of experience, Hewitt Associates (NYSE: HEW) is the world´s foremost provider of human resources outsourcing and consulting services. The firm consults with more than 2,300 companies and administers human resources, health care, payroll and retirement programs on behalf of more than 300 companies to millions of employees and retirees worldwide. Located in 35 countries, including Canadian offices in Toronto, Montreal, Vancouver, Calgary and Regina, Hewitt employs approximately 22,000 associates. For more information, please visit: www.hewitt.com.