UK Businesses fail to engage with staff

UK employers are putting their business at risk by failing to engage with their workforce.*

According to a new study carried out by Right Management (previously known as RightCoutts), out of six countries surveyed, the UK has the lowest proportion of motivated employees with less than a third (29 per cent) identified as being fully engaged at work. This compares with just under half (47 per cent) of workers in Norway, 43 per cent in the USA and 38 per cent in Australia.

In the UK, the least satisfied employees are those at junior management level and below where only 29 per cent are fully engaged. Unsurprisingly, engagement increases with seniority in organisations, but the study found that top managers are far from being universally engaged with their organisations. In fact the study found that just under half (47 per cent) of CEOs, Managing Directors and other Board Directors are fully engaged, with the remainder demonstrating only partial engagement.

Charles Fair, Research Director Europe at Right Management, comments: ìI would seriously worry about the state of any business where the top people are not fully on board. Not only are directors responsible for managing the companyís performance and direction, they are responsible for ensuring more junior staff are motivated and working productively.î

Studies** have shown that a company that has committed, motivated employees will have 29 per cent higher revenue, be 50 per cent more likely to have above-average customer loyalty and be 44 per cent more likely to turn above-average profits than otherwise comparable organisations.

Charles explains: ìStaff retention rates are much higher when a workforce is engaged. Itís already a jobseekers market, and with the anticipated global skills shortage expected to impact over the coming years, employers need to work harder now to attract and retain quality staff. Companies with a highly engaged workforce are better at attracting talent, as success breeds success.î

The research also reveals that the longer a person stays with an organisation the more disengaged they feel. Three quarters (74 per cent) of those whoíd been with their present employer for five years or more did not feel either satisfied or committed, compared with 57 per cent of those who had been there for less than a year, indicating a need for HR to focus on constantly motivating long term employees.

Managers that are good at developing people and senior leaders who value staff are top drivers for employee engagement. But the research reveals only four in ten employees believe their immediate manager has good staff development skills and 62 per cent feel senior leaders do not value their employees.

The research also revealed that just a quarter of employees (26 per cent) are ëStarsí - workers who believe their organisation is a great place to work and who are fully engaged with the organisation. ëBenchwarmersí are those who really like their company but are not fully engaged (16 per cent of employees), while ëFree Agentsí were the three per cent of employees who were committed to their work but did not think their company was a great place to work. Worryingly, over half of all employees (54 per cent) were classed as ëDisconnectedí - neither considering their organisation as a great place to work nor being fully engaged with it.

Charles explains: ìThe study revealed that the ëDisconnectedí employees are four times more likely to leave in one year than ëStarsí, so HR professionals need strong retention policies to ensure talented individuals do not go to competitors.î

Tips to keep staff engaged

Ensure employees have the knowledge and materials they need to do their job, providing regular access to training.

Think about an employeeís growth and development, giving positive feedback as well as constructive criticism.

Set clear goals and objectives for staff and revisit them regularly.

Ensure employees understand their role in helping the company achieve its business objectives.

Encourage open communication within the organisation, sharing successes and being transparent when times are tough.

Ensure senior managers are visible and accessible, and regularly engage and take an interest in their staff.

Right Management helps companies ensure engagement is part of their HR management strategy and understand why some parts of the organisation have poorer retention than others. Companies can contact Right Management on 020 7839 1001 or visit the website www.right.com for further information.

* Engagement is an indication of how well employees are aligned with their organisations. It is measured by assessing a workerís commitment, pride, advocacy and satisfaction both in regard to their current job and to the organisation itself.

** Information from ëValue Shiftí Izzo and Withers (2000)