Beyond Greener Grass: What Leading Technology Companies Need To Do in the Battle for Workforce Share.

Business/High-Tech Editors

CHICAGO--(BUSINESS WIRE)--Dec. 6, 2000

Aon's High-Technology @Work(TM) Research Offers Ways

To Beat The Competition at Retaining Your Own Workers

Ask just about any employer in the high-tech industry what keeps them awake at night, and they'll tell you it's retaining a committed workforce. In fact, the Information Technology Association of America (ITAA) says there are about 1.6 million open positions for IT workers.

In the first High-Technology @Work(TM) study conducted by Aon Consulting's Loyalty Institute, with assistance from the Society for Human Resource Management (SHRM) High-Tech Net and the Information Technology Association of America, 1,100 workers were surveyed about what keeps them committed to their employer. Among the key findings: Courting new hires with perks and packages while paying less attention to current workers is damaging morale and worker retention.

"Despite popular misconceptions, high-tech workers share the values of employees in most industries: they're committed to their job, their colleagues and growing with the company," says Dave Stum, president of Aon Consulting's Loyalty Institute. "But the flexibility of the new work order only goes so far - without equitable pay and benefits that are in line with the person in the next cube, high-tech workers cannot be expected to avoid the temptations from down the street. "

"This timely research sends an important message to senior management that if they want to garner a higher level of workforce commitment, they should focus their resources and energies on those management practices that drive workforce commitment," said Harris N. Miller, President of ITAA. "ITAA is proud to have been a part of helping to gather this important information."

"The survey results reinforce the importance of developing and nurturing positive relationships with employees," said Rod Glover, president-elect of the SHRM High-Tech Net and Managing Partner of the Washington, DC office of Gardner, Carton and Douglas. "The SHRM High-Tech Net is thrilled that our members had the opportunity to engage their employees in discussions about this important piece of research. The publication of these results will foster continued positive relationships between employers and employees."

Although most workers report happiness with the way their company is developing and are mostly satisfied, employers should look to some of the other issues that are affecting the workplace: stress, burnout and a lack of long term expectations or commitment.

Among the key study findings:

- The vast majority of high-tech workers (81 percent) say they

experience a great deal of job satisfaction, nearly

three-quarters (73.6 percent) say the direction their company

is moving exceeds their expectations, and 3/4 (78%) would

recommend the services that the organization offers as the

best that a customer could buy.

However:

- More than one quarter of workers (26.5 percent) feel their pay isn't fair
compared to people with similar jobs in their same company

- 38.6 percent feel their pay isn't fair compared with workers in other similar
organizations

- 44 percent of workers say they could be lured away by a job offering a pay
increase of 20 percent or less

- Nearly 2/3 (61 percent) would recommend the organization as one of the best
places to work in the community.

"Employers in the technology industry need to show that they care about their employees' careers," said Stum. "Of course you need the right culture - flexible hours, informal dress codes and so on - but employees also want the hard rewards. They need to know their compensation is fair - matching their same-level colleagues inside the company, and at the very least, competitive to outside offers."

The study points to eight key workplace practices - or Commitment Drivers - that have the greatest influence on an employee's level of commitment to a technology employer:

- Stock option eligibility - despite recent devaluations of

technology stocks, options are a critical component for a

committed workforce in the booming technology field where IPOs

are on the horizon

- Resources - it's Palm VII vs. Palm V. High tech workers have

technology resources, but they want the latest tools and

technologies available

- Skills training - employees' skills need to keep track with

the demands of their jobs

- Performance evaluation - an understanding of how performance

is evaluated by managers

- Fair compensation - compared to similar jobs WITHIN the same

company

- Personal life - managers must realize the importance of the

employee's personal and family life

- Benefits - a benefits package that is the same or better than

other that of other organizations

- Benefits program communication - better manager communication

about benefits.

Stum advises employers to think longer term. The High-Technology @Work survey showed a definite need for personal growth opportunities. Employees feel they must stay ahead of the fast-moving technology curve. "If that means regular training and continual investment in the newest and best equipment and resources, the employers need to make it happen," he says.

About the study

Aon conducted an Internet-based survey of high-tech workers through the third quarter of 2000. Aon Consulting received over 1,100 responses to our online High-Technology @Work(TM) questionnaire. The questionnaire was open to all employees in the high-tech industry over the age of 18.

In 2001, a separate High-Technology @Work study will be conducted in Canada as well as in the United States.

About Aon

Aon Consulting Worldwide is among the world's top global human resource consulting firms, with 1999 revenues of $656 million and 5,700 employees in over 130 offices worldwide. Aon Consulting delivers integrated solutions to help clients with employee benefits, compensation, human resources and change management.

Aon Corporation (www.aon.com) is a holding company that comprises a family of insurance brokerage, consulting and insurance underwriting subsidiaries. Aon's common stock (NYSE:AOC) is listed on the New York, Chicago, Frankfurt and London stock exchanges 

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