THE IMPORTANCE OF EMPLOYEE ENGAGEMENT06.11.2017
Candidate generation and attraction is not the only challenge for companies within the current candidate led market. Employee engagement is a key focus for many companies with a recent survey from Deloitte highlighting 48% of senior leaders believe employee engagement continues to be a challenge. This is particularly prominent within the Technology industry where the demand for talent is increasing. However, with more companies implementing flexible and remote working, along with the multicultural nature of most organisations, engagement amongst all staff can be difficult. We’ve explored the financial implications and potential problems for companies who have low staff morale and some of the best initiatives companies can use to motivate staff.
Research from Hay Group suggests employee disengagement costs the UK £340 billion each year. This cost can include lost revenue if employees are less productive, the time and money it takes to train new staff and the cost of finding and hiring new candidates if turnover is high. Also many companies rely on employee referrals to source new candidates, therefore, if engagement is low, staff are less likely to refer friends which can lead to skill shortages and vacancies being un-filled.
With this cost set to rise, companies are investing more in employee engagement managers, launching in-depth annual staff surveys and introducing team and company wide incentives. Whilst staff surveys can be helpful, they aren’t a constant measure of engagement since they are usually done once a year. Also for many staff completing these are optional and for larger companies results can be hard to analyse. One of the best and quickest ways to increase engagement can be to launch incentives. These vary in cost depending on what a company’s trying to achieve, how much they want to spend and how many employees they have. Quick wins can include a free day’s holiday on employee’s birthday or an extra day off at Christmas. Also many companies give staff free fruit or free gym memberships which are both a great way to increase motivation and encourage a healthier working environment. Slightly more expensive incentives can include annual holidays for best performers, for example, Opus professional services have a villa in Italy which is free for staff to use throughout the year. Also Air BnB offers all staff $2,000 Travel credit per year to travel the world.
From higher productivity, lower staff turnover and increased employee referrals there are huge advantages for companies who have high employee engagement. Plus for many companies staff are their biggest assets and usually are the interface for customers/clients therefore, the more passionate they are about their role the better. Whilst some engagement campaigns can be costly and time consuming, there are quick wins which can help improve engagement. Employee engagement is a key focus for Cognatio Solutions, we’re keen to ensure we match clients with the right talent and place candidates in roles they are passionate about. If you would like to discuss more about how Cognatio Solutions can impact your businesses hiring plans or if you’re a candidate looking to explore new opportunities please get in touch. Also don’t forget to follow us on Twitter and LinkedIn to hear regular industry news and find out more about the projects we’re working on.