Special Promotional Feature

By several measures, employees’ engagement plays a central role in any organization’s success—retention, employee performance and productivity, sales, profitability and more. From the beginning of the recruiting process, all the way to the conclusion of an employee’s relationship with the employer, employees’ level of engagement hinges on employers’ attention to it. Some employees are more receptive to improvements in this area. For instance, 67 per cent of all employees responding to Ceridian’s fourth annual “Pulse of Talent” survey are looking for another job, but 40 per cent are not doing so actively. The potential to improve levels of engagement among employees in this 40 per cent is great. Smart organizations can do so by implementing a multifaceted approach that recognizes what drives employee engagement, and they can find relevant insight in the data of Ceridian’s report.

Poor Employee Engagement: What it Looks Like
Lack of employee engagement comes in many flavors. You may have disengaged employees. Their level of engagement is nil. Five per cent of respondents to the “Pulse of Talent” survey fit this definition. Additionally, you may have employees who are engaged, yes, but the level is poor. Twenty-two per cent of survey participants fall into this category. Both constituencies may be conscious of their level of engagement, though their lack of engagement may just as easily be a subconscious reaction to factors in the work environment. Poor employee engagement has three primary symptoms:

1. High Turnover
   Again, 67 per cent of employees are passively or actively looking for a job elsewhere, according to this year’s “Pulse of Talent.” Some workers who are more likely to be looking for a new job have been at their current job for less than five years. Others want to explore new career paths. And there are few, as well, who perceive that promotions are given externally. Better engagement would retain more of them. For instance, a Gallup-conducted meta-analysis from 2013 shows that companies performing best at employee engagement in high-turnover industries such as retail have 25 per cent better retention.

 

2. Low Productivity
   The same Gallup survey shows that top–performing companies have 21 per cent higher employee productivity, too, and Ceridian’s research underscores engagement’s correleation with productivity. Stress is high among the symptoms of low engagement. Sixty-two per cent of employees who self-report as poorly engaged experience stress vs. just 23 per cent of highly engaged employees. Thoughts of work keep 37 per cent of them from sleeping at night, too, compared to 18 per cent overall. Sleep deficiency costs businesses $63.2 billion per year in lost productivity, according to Workplace Wake-up Call: Pulling Back the Covers on Sleep Deficiency,” a survey conducted recently by Ceridian LifeWorks, finds that more than 30 per cent of HR leaders have witnessed or heard about a co-worker falling asleep on the job in the past six months.

 

3. Slow Adaptation to Change
   Resulting in a less agile workforce, lack of engagement leads to higher training costs, as well. Among employees who have low levels of engagement, 51 per cent encounter difficulty remaining up-to-date in their work and professional readiness. The cost of training is high, and so is the cost of training new employees, once the poorly engaged ones leave.

Lack of Employee Engagement and its Ripple Effects
So employees’ lack of engagement exacts a heavy toll on the organization. Ceridian’s research underscores the ripple effects of poor vs. good employee engagement.

Recruitment
A first impression here plays a critical role in organizations’ ability to build and maintain a strong company brand—and a usually irreversible one in destroying an employer’s reputation. Even small mistakes can be detrimental in a big way. For instance, a failure to communicate with job applicants at every step of the process has lasting repercussions: Sixty-eight per cent of respondents say that neglecting to notify candidates of their application status leaves a negative impact on their overall impression of the company. Furthermore, 52 per cent say that they’re less inclined to apply for other job postings at companies that neglect to notify candidates of their application status.

Profitability
This year’s “Pulse of Talent” survey traces profitability all the way back to the the recruiting process, too. Of respondents to the survey who were job seekers and did not receive communication regarding their applications’ status, 44 per cent said that they’d be less inclined to buy the company’s products and services. (Worth noting, Gallup’s 2013 study also shows a correlation between higher employee engagement and better profits.)

Recognition
All this poor employee engagement has a visible impact on the organization. One of the most recognizable is the workforce’s perception of being recognized. Only 44 per cent of the more than 800 respondents to Ceridian’s survey believe that the work they do is valued by their employer.

Promotions
Promoting from within has a correlation with higher levels of employee engagement. Employers who provide an environment where employees can develop and be promoted internally are able to develop and retain more highly engaged employees. Among all respondents, 38 per cent—a minority—believe their employers prioritize internal employees for available positions. Contrast that with the 59 per cent of highly engaged employees who see their employer as focused more on internal promotions. It’s a number four times higher than the percentage for disengaged respondents.

Loyalty
Policies for promotion tie back to retention, too. Sixty-eight per cent of highly-engaged employees would like to stay with their current employer for five or more years. It’s a leap compared to the mere 14 per cent of disengaged employees who say so. Furthermore, highly engaged employees are far less likely to be seeking new jobs elsewhere. Just 14 per cent of them are looking, whereas 63 per cent of disengaged employees are.

Takeaways to Keep Employers from Taking Away from Employee Engagement
This year’s “Pulse of Talent” identified key drivers of employee engagement. Respondents rated 15 statements on a 10-point scale. Ceridian then grouped these statements and respondents’ ratings of them, arriving at the following seven drivers: rewards, recognition, motivation, challenges, pride and advocacy, employer care, work environment. Several best practices stem from these key drivers, and employers will see increases in their employees’ level of engagement by implementing the following:

• For a job well done, reward employees with monetary and non-monetary compensation.
• So they feel valued, show recognition to employees who earn it.
• Motivate and challenge employees in their professional pursuits.
• Demonstrate to employees that their opinions and personal well-being matter.
• Regularly communicate the company’s vision.

Employee Engagement Spelling Success or Disaster
The extent to which employees feel involved in the job and appreciated for the work they put into it affects most corners of an employer’s business. Engaged employees carry an employer brand to new heights as it attract top talent to the organization This phenomenon increases the number of engaged employees, which only strengthens the brand further. Conversely, battling employee disengagement, an organization can struggle to survive as its employer brand flounders.