Talent Engagement not only Saves Cost but also Grows Business!
January 2017 has come and gone and the judges are still out on whether 2016 was “The year of Talent Engagement”. With several different drivers of engagement that change with each company’s environment, there is no golden mantra to optimise talent engagement. All we know for sure is talent engagement strategies and tactics evolve and change continuously and companies need to be on their toes to pick up the pulse on the ground.
According to Deloitte’s 2015 Global Human Capital Trends Report, the number one topic on the minds of CEO’s and senior HR leaders is ‘culture & engagement’, but engagement is very tricky to quantify in real terms. We have now established that engagement impacts the bottom line through less turnover and absenteeism and higher productivity. Consider these facts:
· Gallup: “Businesses with highly engaged teams experience a 20% lift in productivity”.
· The Workforce Institute on Absenteeism: “Businesses saw a drop in absenteeism by 41% when teams were engaged in their work”.
On average, highly engaged teams will experience a 40% improvement in turnover (from 24% in high-turnover organizations to 59% in low-turnover organizations).
· Willis Towers Watson: “Companies with engaged employees enjoy a 19% increase in operating income; without engagement, operating income decreases by 30%”.
So, how does one measure engagement? Perhaps the best way is to look at a composite of the following indicators measured against industry/sector benchmarks:
· Revenue per employee is a simple calculation that divides annual company revenue by the average number of employees. It measures how efficiently a particular company is utilizing its employees.
· Cost of absenteeism per employee represents the individual impact to the business when an employee is absent with unearned paid time off.
· Total cost of absenteeism represents the business impact of absenteeism company-wide.
· Turnover rate is calculated by dividing the number of employees that left during the year by the average number of employees during the year.
· Number or employees that leave in a year is the turnover rate multiplied by the average number of employees.
· Average cost to replace an employee. According to The Society for Human Resources Management, every time a business replaces a salaried employee, it costs 6-9 months of the replaced employee’s salary. For executive positions, replacement can be as high as 200% of the employee’s annual salary.
· Total cost of employee turnover multiplies the average cost to replace an employee by the number of employees that quit or were fired last year.
And how does one improve engagement? We recommend the following measures:
· Focus on Value Propositions. Identify what aspects of the brand first drew employees to work for the business and build those value propositions to retain valued employees. Get employees excited about working for the company/ brand again.
· Develop Results-Based Recognition. Effective rewards and recognition through a results-based program with features like specific, measurable goals achievable by sales and non-sales employees; upon meeting or exceeding objectives, teams earn bonuses, which can be monetary or otherwise improves retention and productivity. A well-organized results-based recognition program also informs employees about their place in the business and their impact on the brand’s overall success.
· Empower New Employees Quickly. The sooner employees feel engaged with the business and brand, the longer they are likely to be content with their positions and productive in their jobs. An on-boarding program engages employees faster; retain them longer and shortens the time it takes new hires to become productive in their jobs, which means employees can be more profitable.
· Offer Leadership Training. Leadership training, mentor-ship programs, and other such initiatives are relatively rare in the workplace, and offering them will engage the younger generation in ways few employers are willing to do.
· Care for Employees. Businesses need to demonstrate appreciation for their employee’s ― perhaps relaxing the dress code or providing creative benefits packages, such as telecommuting options and schedule flexibility, as well as well-being programs.
In conclusion, talent engagement continues challenge employers, corporations and policy makers across the globe. The better we understand human behaviour and workplace dynamics, the more we may improve how we engage talent in the future and contribute to more holistic and efficient productivity.
To know more, please go to our website (www.talentkare.com) or contact us at [email protected]
Written by: Bindita Ghose
turnnoffyourmind
dailybridgerton
jimmyeatworldofficial
titsay