Employee engagement might not be top of the agenda in this economic climate, but there are two very good reasons why employers should stay focused on this area in 2010 – whether were heading out of recession or not, says Matt Roddan.
Firstly, although evidence suggests that many employees are reluctant to switch jobs at present, engaged staff are far more inclined to stay with their employers as the economy recovers – and they are more likely to do their bit to help the organisation survive. Those who dont feel that they have been treated well are likely to jump ship when the economy picks up again, taking their knowledge, experience and a bad impression of their previous employer with them when they do.
According to the recent HR Reflections survey by the Infogroup company ORC International, around two thirds of UK organisations – 67% – saw lower levels of staff turnover last year.
However the survey, which includes results from 215 companies from both the private and public sector, also showed that many employers (41%) worry they are not retaining the best employees, or sufficiently motivating employees who are staying.
More than three quarters (77%) of organisations with an engaged workforce had a more successful year in 2009, according to the survey.
And this is the second reason why employee engagement is crucial in uncertain times: an organisation must have a workforce that is flexible, adaptive to change and motivated to help it achieve its goals. Evidence across a range of organisational studies conducted by ORC International shows that engaged employees are more likely to feel the organisation encourages them to go the extra mile.
The ORC International Reflections survey results are reassuring: they show that nearly half (49%) of organisations have increased their focus on engagement during the recession, while 34% have maintained the same focus on engagement. However, increasing focus on engagement is not just about appreciating its importance. Organisations need to identify the barriers to engagement and then take action to actively address those issues.
According to the HR professionals surveyed, the greatest barriers to employee engagement remain leadership, line management skills and communication.
These elements are continually in focus in ORC Internationals employee engagement research: during tough times, employers need to show strong, visible leadership qualities. Employees look to leaders for reassurance, inspiration and direction. They want them to acknowledge adversity, but also to speak positively about the journey ahead.
Communication is also key. Employers need to clearly articulate reasons behind change, communicate progress and remind employees of what is still important to the organisation. Communication needs to focus on creating a compelling link to the vision of the organisation and involving employees in honest and open two-way discussion about the best way to change.
Line managers are clearly central to this process. They communicate messages, objectives and values from above and are responsible for ensuring employees are challenged and motivated. Organisations need to make sure that line managers have the skills (and the time) to motivate their staff, to constructively manage poor performance and to communicate a consistent, proactive message about change.
It is heartening to see, then, that leadership development looks to be an area where organisations will be increasing spending in 2010: 51% will be spending more in this area, while 35% will keep spending at current levels. Spending on communications will also be increased by 37% of companies, and 56% will maintain their current spend.
Organisations which succeed in getting to grips with these key areas will certainly reap the rewards as the economy picks up because they will be in the best position to attract, retain and motivate the best talent in a newly mobile job market.
Matt Roddan, associate director, Infogroup ORC International
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