About return on engagement
The labor market is tight
The labor market is creaking and squeaking. As already predicted, we ended up in an increasingly tight labor market from the crisis. Good staff is hard to find in many sectors and the shortages will only get worse in the upcoming years. Jobfeed reported last month that in 2018 no fewer than 16.3 million vacancies were online in the Netherlands. That is almost twice as much as the entire working population! Many companies have to say no to assignments because they simply do not have the people.
In addition, staff turnover is increasing more and more. On the one hand, this is due to the often described job hop phenomenon, with which millennials in particular try to achieve a steeper learning curve. But on the other hand employers often do not know how to engage and involve their employees. The percentage of employees involved in the Netherlands is shockingly low at around 10% (“State of the Global Workforce”, Gallup 2017). Incidentally, companies around the world are not doing much better, since the percentage of employees who feel involved with the employer has been fluctuating between 13 and 15% for years. This low involvement can be seen as an indication of untapped potential and a barrier to a high performance culture.
These figures indicate how difficult it is to find talent and to engage them. All the more reason for an organization to take your personnel policy seriously. An important indicator for this is “employee engagement”, the degree of employee involvement in the organization.
What’s it exactly?
What we call ‘engaged employees’ are employees who do their work with passion, feel connected to the organization and (want to) help them to move forward. Effectory describes 3 characteristics of an involved workplace:
1. Time flies and people forget that they are working.
2. The work gives employees energy and mental resilience.
3. Employees feel enthusiastic, inspired and proud of their work (Insights into global employee engagement & commitment, Effectory 2018).
Why is it important?
In most organizations, people are the key to performance and growth. If your employees are happy and involved and have a good work experience, they are more committed to the goals of your organization and its success.
And that can also be seen in the operating result: the same Gallup study shows that companies that scored in the top 25% on employee engagement were also 17% more productive and 21% more profitable than the lowest 25% (‘State of the Global Workforce ‘, Gallup 2017). A lack of employee engagement is therefore not only demotivating and inefficient, but also actively reduces the productivity and performance of organizations. The Global Employee Engagement Index ™ from Effectory (2018) also found that committed and committed employees were more inclined to recommend their organization to both potential customers and employees.
How to work on a good employee experience
A hopeful finding for organizations is that almost all employees are involved when they are hired. The problem is that they lose this feeling over time. When the honeymoon is over and the first cracks in their experiences have arisen, employees quickly become more critical and less involved. The trick is to prevent this with a good “employee experience”. But how do you do that? In our next blog we share the 6 pillars for more involvement in the workplace.