After years of declining employee engagement levels around the world, it looks like there’s a positive shift coming in, according to research by Aon Hewitt.
Aon Hewitt’s 2012 Global Engagement report analyzed employee engagement trends of more than 3,100 organizations worldwide, and found that 58% of employees were engaged in 2011, up from 56% from 2010.
Specifically, improvements in employee perception scores were found in three key areas:
- effective leadership at the business unit/division level was 61%, up from 54% in 2010;
- people/HR practices creating a positive work environment was 53%, up from 47% in 2010; and
- perceiving relationships with customers as rewarding was 75%, up from 70% in 2010.
However, the analysis also showed a decline in three key perception scores:
- effective communication was 42%, down from 46% in 2010;
- innovation was 52%, down from 55% in 2010; and
- workplace safety and security was 75%, down from 78% in 2010.
While engagement may be up, that doesn’t mean organizations can sit back and take a rest, says Pete Sanborn, co-president of global compensation and talent at Aon Hewitt.
“As the economy improves, retaining top talent is going to be difficult,” he said. “Now is the time for organizations to measure and gain insights on engagement drivers and to start doing the work necessary to improve engagement. Our research shows that organizations with higher engagement have significantly higher total shareholder return than the average company, so organizations that focus on what matters most in connecting employees to their work will emerge as leaders.”
The report also analyzed which engagement drivers offer the best return on investment; the top factors were career opportunities, recognition, organizational reputation and communication.
Career opportunities
For the fourth consecutive year, career opportunities remained the top driver to positively impact overall engagement levels.
“Organizations must communicate clear career paths, prepare employees for the next role and provide lateral growth opportunities for key employees,” said Ken Oehler, global practice leader of engagement with Aon Hewitt.
Recognition
Recognizing the extra effort employees have put forth—especially in a tough business climate—will pay dividends, said Oehler. What’s more, providing feedback and positive reinforcement often comes at no cost to the organization.
Organizational reputation
“Employees join organizations that have a reputation as a best employer, and they are also engaged by working for a best employer,” said Oehler. “This driver is about connecting employees to the company, the mission and the work beyond financial business performance, and showing them how their work experience cannot easily be replicated elsewhere.”
Communication
“Corporate communications is the primary connection point between the majority of employees and executive leadership,” said Oehler.
Yet the survey found that employee perceptions of communication declined in 2011. Oehler thinks this could be a result of the recession—with companies focused on recovery, they may have become less focused on clear and consistent communication from leaders.
“Messages usually break down at the mid-management or immediate manager level, so it is important for the leaders to continue to provide clear messages about business objectives, challenges and what is required of employees.”