23 October 2007
Majority of global companies face an engagement gap
New research paints a difficult picture for communications.
Three quarters of employees don't believe their organizations are doing enough to help them become fully engaged and contribute to their companies' success, according to a new global workforce study conducted by professional services firm, Towers Perrin.
Entitled the “Global Workforce Study” the research, which is sure to be a point of reference for communicators in the ongoing battle to prove the value of internal communications, draws upon two unique sources including a survey of nearly 90,000 workers in 18 countries.
Defining engagement
It shows that just 21% of the employees surveyed around the world are engaged in their work, with Towers Perrin defining engagement as “meaning they're willing to go the extra mile to help their companies succeed.”
It's impossible to overstate the importance of an engaged workforce on a company's bottom line.
In contrast, some 38% of those surveyed said they were partly to fully disengaged. The result is a gap that Towers Perrin has dubbed the "engagement gap" between the discretionary effort companies need and people actually want to invest and companies' effectiveness in channeling this effort to enhance performance.
The study also found that companies with the highest levels of employee engagement achieve better financial results and are more successful in retaining their most valued employees than companies with lower levels of engagement.
Linking engagement to the bottom line
"It's impossible to overstate the importance of an engaged workforce on a company's bottom line," said Julie Gebauer, managing director and leader of Towers Perrin's Workforce Effectiveness consulting practice.
“The Global Workforce Study establishes a definitive link between levels of engagement and financial performance and begins to quantify that link. It demonstrates that, at a time when companies are looking for every source of competitive advantage, the workforce itself represents the largest reservoir of untapped potential."
Areas in need of attention
The findings point to several areas of focus for companies to increase engagement and tap the reservoir of employee discretionary effort.
- Employees need their senior leaders to demonstrate inspiration, vision and commitment. Only 38% of employees surveyed felt senior management communicates openly and honestly, and just 44% agreed senior management tries to be visible and accessible.
- Employees want to give more to their companies and their jobs, but also want a clearer picture of what's in it for them. More than three out of four employees love or like their job (86%) and their organization (77%), while 83% "look for opportunities to develop new knowledge or skills," and 84% "enjoy challenging work that will allow them to learn new skills".
- In contrast, however, they don't feel their companies and leaders are meeting these needs and creating the conditions that will sustain engagement. Just 36% agreed they have excellent career opportunities at their organization, and more than two-thirds said they're sometimes or frequently frustrated by their organization's people-related decisions.
The workforce itself represents the largest reservoir of untapped potential.
Companies must return employee commitment
"The study paints a picture of a workforce that’s energetic, ambitious and committed to working hard and giving its best,” Gebauer says.
“This lays to rest several persistent stereotypes: that employees are loyal only to themselves and their careers and are looking to do the minimum to get by. But turning people's energy and ambition into engagement – and ultimately into significant performance lift – demands attention, focus and some very different behaviors from senior leaders, as well as clear follow-through on a number of organizational practices."
Got a news story? Contact the newsdesk