If you’re reading this article at work, it’s likely that two thirds of your colleagues or team are disengaged. Latest research into employee engagement found that only 36% of UK employees are ‘highly engaged’. As the survey reveals, this is affecting productivity in UK businesses, regardless of size. The chances are that your company falls into this category.
We identified three areas that companies must pay attention to if they are to re-engage their employees:-
The pay gap
Significant gaps in salaries between different levels of employees within an organisation often have a corrosive effect on company culture, leading to demotivated and disengaged staff. The controversy over public sector pay rises fixed at 1% compared to a 10% recommended pay rise for MPs epitomises this problem but the private sector isn’t immune.
According to research carried out by XpertHR and the Chartered Management Institute, underperforming managers are still receiving bonuses at an average rate of £9,000 per underperforming employee. This compares with average pay rises of around 3 to 3.5%. By refusing to acknowledge this issue, companies risk creating a negative culture, leading to higher levels of absenteeism and lower levels of retention. The same survey revealed that nearly 90% of employers are struggling to recruit talent to meet business demands in 2015, compared to 70% last year.
Recommendations include tackling CEO pay and managing the expectations of business leaders, stating exactly how their performance will be measured.
No concern for carers
A CIPD study shows that one in nine UK workers now combines their employment with a caring role for parents, siblings, grandparents and partners in their personal life. The majority of carers found their workplace the least ‘carer-friendly’ of their communities. Employers who don’t make provision for this changing dynamic risk losing talented performers as three quarters of those interviewed experienced a lack of support in the workplace. While flexible working is welcome, carers are reluctant to accept it in all cases as it may have a detrimental effect on their career. With 67% of the UK’s 4.27 million carers in employment steps must be taken to identify affected employees early in the hiring process. Approximately one third of companies currently have strategies in place for carers at work.
Learning and development
Deloitte’s Global Human Capital Trends Survey 2015 identified learning and development issues as one of the top three talent challenges for global businesses. Companies that transform their learning and development can ‘dramatically improve employee engagement and retention’. The report highlights the example of Deckers Outdoor, manufacturers of Ugg footwear and a company with high levels of staff retention. The company adopts an approach of ‘inspiring people to learn’ with each programme of learning incorporating the ‘why’ behind the content’. Deckers’ head of Learning and Development is also responsible for employee engagement, culture, and employee communications. The majority of businesses identified a clear capability gap between their needs and what they are able to deliver. Yet again the onus is on HR to offer learning opportunities to meet both the needs of the business and expectations of employees.
Further insight is offered by leadership philosopher Fred Kaufman who offers three simple strategies echoing the recommendations made above:-
- Create an environment that people want to work in. Key elements include the need for a culture of empowerment, meaning, openness and learning.
- Create a company culture rooted in purpose and local culture.
- Create loyalty without asking for it. Kaufman concludes that if people aren’t valued they’ll be disengaged and disconnected, leading to higher staff turnover rates. Based on current research, that equates to two thirds of UK companies.
Take action now
Advorto’s world class recruiting software helps global businesses to identify where their best people come from, enabling HR to focus on developing a culture to attract, hire and retain more talent. Contact us today to find out more.
Hiring Solutions : Wellbeing At Work
Leadership In The Spotlight (new whitepaper)
If you would like to receive Advorto’s latest content directly to your inbox please sign up here