Biggest Hurdle of 2018
Cascade HR, one of the UK’s leading HR software companies, has released the results of its survey of the biggest obstacles in human resources for 2018. 2018 HR Landscape: What’s in Store? Included a survey of 447 HR directors that identified a major area of concern: employee engagement.
Nearly half of HR directors said that employee engagement was the biggest hurdle that they will face in 2018. This was only a small increase from the results of their 2017 survey, which found that engagement was a major concern for 39% of respondents.
The second biggest concern? Staff retention (36%), but as the talent and performance manager at Sony Europe, Christoph Williams, points out, the two are closely linked.
I’m not at all surprised that employee engagement has come up as the top concern for HR. It’s an all-encompassing issue that branches into other problems; when employee engagement goes down turnover goes up and retention goes down.
The Cost of Less-Engaged Employees
In addition to churn, employee engagement has an impact on your bottom line. Employee engagement drives performance, both on an individual and team level. Research has shown that companies with less engaged employees record less growth, lower profits, and lower customer loyalty.
Research carried out by the UK government found that companies with lower engagement scores record operating income of 32.7 percent less than companies in the same industries with more engaged employees.
Whilst the Corporate Leadership Council study of 50,000 employees around the world found that companies with engaged employees can see their profits grow at a rate of up to three times faster than their competitors.
McLean & Company, the research and advisory firm that focuses on providing practical solutions to human resources challenges, found that a disengaged employee costs an organization roughly $3,400 for every $10,000 in annual salary. Even more alarmingly, they found that disengaged employees cost the American economy approximately $350 billion per year due to lost productivity.
As we have touched on before, research carried out by the Temkin Group found that customer experience improved significantly when dealing with companies where over 60% of the workforce was engaged. 60% may sound like a low benchmark, but Gallup research has shown that 87% of employees worldwide are not fully engaged.
How Can You Fix the Problem?
As you can see, regardless of your sector or industry, employee engagement will be costing your company money, causing employees to leave, and damaging your relationships with your clients.
So, how can you fix it? The good news is, as Joe Mechlinksi the CEO of Entrequest and NY Times bestselling author, points out, it’s not that hard. Simply throwing more money at the problem won’t work, but giving your employees a voice, a sense that they can take ownership of problems and be proactive does.
According to Forbes, the most important step to improving employee engagement is to make sure that every employee feels listened to and valued, whether they are a senior executive or an entry-level employee.
You need to provide your employees with an outlet and means of communicating with upper management and HR. Employee engagement has to be ingrained in your corporate culture. How are you going to make it a part of it?
The Braineet Solution
Braineet provides the perfect platform for increasing your employee engagement. Thanks to our platform, our clients report that 30% of employees report that they feel more engaged within just 6 months of the platform being introduced.
The platform allows your employees to share their ideas on how the workplace, products, or services could be improved – regardless of their position or status within the company. Popular ideas can be liked and pushed up the rankings, and with our easy-to-use tools you can review and manage ideas and projects.
Braineet not only provides your employees with a voice but even more importantly, it allows best practices to be shared and new ideas to be more easily identified. It’s an all-in-one solution that bolsters employee engagement and helps companies to refine and improve their business practices.