In the recent People & Productivity 2014 research, conducted by Works Management and Festo Training & Consulting, there was indeed some good news. Just under half (47%) of those surveyed believe that employee engagement has improved since last year. Fantastic. This, however, is tempered by the fact that only 46% of organisations formally measure employee engagement. So perhaps positivity is catching. It's just a feeling that we have, says Gary Wyles, managing director of Fsto Training & Consulting.
We cannot however underestimate the importance of employee engagement. With high levels of engagement we get increased productivity. And boy do we need it.
This is where the bad news comes in. Skill shortages are impacting our business and our profitability. 82% of companies say that they are suffering from a skills shortage, that's an increase of 17% from the survey that was conducted last year.
In a round-table with senior business leaders hosted by Works Management in July this was well articulated. From increased downtime, often for substantial periods, having to revisit tasks more than once, through to poor performing outsourcing, manufacturers are struggling to keep up productivity and deliver good business returns. Back to the good news, business is improving, but this is creating a wider skills gap as manufacturers accept work that they will struggle to deliver on time, to budget and to the quality expected. And, this is where we'll really start to see the impact.
Let's return to the subject of employee engagement. In the round-table we discussed the impact that disengaged employees can have on a business. One leader mentioned: "I feel that I am spending a great deal of time with disengaged employees and I wonder whether it's actually worth spending that much time on those that aren't moving the organisation forward." Another said, "A big problem is having disengaged managers as they influence the whole team."
This places a tricky decision on business leaders. Reduce the workforce even further but have only engaged employees on the team, or struggle on spending time and money trying to turn people into productive and engaged workers?
At Festo, we have carried out a lot of research into employee engagement summed up in a recently published White Paper - www.festo-didactic.co.uk/ee
We have found that employees can be characterised into eight different 'types', measured by three aspects: proactivity, alignment and personal satisfaction. Some employees will have positive attributes. For example, they might be aligned with the organisation and personally satisfied in their careers. However, they may not necessarily be highly proactive but they deliver what's expected.
If employees are out of alignment with the organisation, dissatisfied with their roles and proactive in their views, that's where action needs to be taken. Disengaged employees, and especially managers, who proactively share their dissatisfaction can cause issues. 62% of survey respondents say that the biggest issue is maintaining employee morale. Equally, 23% are looking to leave their job in the next year and 15% say they would leave because they don't like their boss.
The issue of disengaged employees needs to be addressed. Working to address disengagement is a time-intensive activity but it can reap rewards. Communication is key and working individually to find projects and programmes that will engage employees can help. It is also worthwhile the organisation understanding what is leading to disengagement. Perhaps it's that work-life balance of the employee has suffered or potentially there might be external issues at the root of it. Working together to address disengagement is critical.
Engaged employees will be much better at supporting and improving skills levels internally. Churn will be reduced as employees will be happier in their role. Good levels of engagement also help recruitment, as potential employees will want to join a team that's really focussed and driven. Customers will be more satisfied and relationships will improve.
Now is the time for those tough decisions. Employee engagement is the bedrock for your organisation. It's the foundation on which we can build a secure and positive future and help close that skills gap once and for all.