Challenges in Employee Engagement and Retention
Employee engagement means “a positive, fulfilling,
work-related state of mind that is characterized by vigour, dedication and
absorption.” Schaufeli et al (2002)
Employee retention means having lower employee turnover in
the company, in other the ability to keep current employees motivated and
dedicated to work in the company for a longer period.
There is a positive relationship between employee engagement
and employee retention, which means a significant increase in employee
engagement, will increase employee retention. In other words, organizations
with higher employee engagement have lower employee turnover rates (Council,
C.L., 2004.).
Welcome to the 'Challenges faced by HR and how to overcome
them' blog. In this article, we are going to discuss the challenges faced by HR
in employee engagement and retention functions and how to overcome them.
Challenges
- Development in technology – While we make use of the latest technologies, there are also downsides to them. Employees can connect to work even outside office premises due to the involvement in technology. Although it has made employees' work easier and more flexible the potential downside is to balance between work and personal life. Due to rapid changes in technology employees fear their knowledge being obsolete which disengages them from the company.
- Remote working – With the Covid-19 pandemic many companies were forced to enter remote working environments. This affected the companies as there was a lack of person-to-person interactions which created a communication gap and distance between team members. While some employees had issues with work-life balance, some employees felt isolated in doing tasks which made them disengage from company matters (Galanti, T. et al 2021).
- Generational differences – In the modern world, companies are full of diversified employees from different age groups. The needs and wants of employees differ depending on the specific generations. For example, millennials would prefer learning and development, and new opportunities to showcase talent, but baby boomers want job security and financial stability. If millennials do not find career development in the company, retention is at risk.
- Competitive job market – With technological advances, employees have access to check many job opportunities in other companies and check for the remuneration packages, and career development opportunities of those selected companies. Therefore HR needs to find new methods of retaining the top talent within the organization using different methods.
Other than the above reasons high work-related stress, low
recognition, lack of career development opportunities, lack of leadership and
management, company culture, and economic uncertainty leading to a risk of job
security could disengage employees from the company. Thereby disengaging
increase the risk of higher turnover (Council, C.L., 2004.) if HR fails to
increase employee engagement in the company.
How to increase employee engagement and retention in the company
- Flexible work arrangements – Contrary to remote working, where employees work entirely outside the office premises, employers could give more freedom to the employees in the location they want to work in. It need not necessarily mean working remotely, but as per employees' choice to work at the office, a co-working space or even a coffee shop. Through this employees are given much more freedom and employees feel management listens to them. It also reduces work stress and gives more ability to balance work-life thereby increasing opportunities for employee engagement and higher retention (Kelliher and Menezes, 2019).
- Facilitating career development programmes – In a modern world full of technological advancements, a diversified labour force and new entrants entering the market, one of the main expectations of employees is to build their careers as well as keep knowledge updated. Employees are more likely to retain in a company, which acknowledges career development options.
- Regular feedback and recognition – This is a topic we discussed under performance management too. Employees who receive regular feedback are 3.5 times more likely to be interested in their work, according to Gallup survey (R. Sutton, and B. Wigert 2019)Employees interested in work means more engagement.
- Initiatives on employee wellness –This is an employee benefits scheme where companies assist employees in maintaining their physical, emotional, and mental health. Employees build a connection/trust with the company when the company assures that they care about the employee's mental and physical health. Around 58.4% of respondents agree that their performance is improved by wellness programs (Mani, V., 2011).
- Investing in stronger leadership and management – Good leadership means someone who could inspire and motivate employees to achieve the company within a limited time frame. This needs interpersonal skills, technical skills and conceptual skills.HR could invest in training managers to improve their communication and these leadership skills which helps to create a positive work environment, which eventually increases employee engagement. With clear communication skills employees are given clear goals and indicators which builds a positive attitude to work by an employee. This will increase employee retention in the company(Mani, V., 2011).
Conclusion
Employee engagement and
retention are crucial for a company to stay competitive and for the success of
the organization. To reach the company’s mission, through its goals, employee
performance, engagement and retention are mandatory. A company with higher
employee engagement is interconnected with the company’s lower employee
turnover rate, in other words, higher employee retention. Therefore having
flexible work arrangements, positive work culture, frequent feedback,
initiatives on employee wellness, and surveys on employee engagement to
identify employee engagement needs will help the organization reach its
heights.
References
Council, C.L., 2004. Driving performance and retention through employee engagement (Vol. 14). Washington, DC: Corporate Executive Board.
.[Online]
accessed on 14.04.2023
Galanti, T., Guidetti, G., Mazzei,
E., Zappalà, S. and Toscano, F., 2021. Work from home during the COVID-19
outbreak: The impact on employees’ remote work productivity, engagement, and
stress. Journal of occupational and environmental medicine, 63(7), p.e426.[Online] accessed on 14.04.2023
https://www.gallup.com/workplace/249332/harm-good-truth-performance-reviews.aspx
[Online] accessed on 12.04.2023
Kelliher, C. and Menezes, L. (2019) Flexible Working
in Organisations. 1st edn. Taylor and Francis. Available at:
https://www.perlego.com/book/1501574/flexible-working-in-organisations-a-research-overview-pdf
[Online] Accessed: 13 April 2023.
Mani, V., 2011. Analysis of
employee engagement and its predictors. International Journal of Human Resource Studies, 1(2), p.15. [Online] Accessed: 14
April 2023
Markos, S. and Sridevi, M.S., 2010.
Employee engagement: The key to improving performance. International journal of business and management, 5(12), p.89. [Online] Accessed: 08
April 2023
Shaufeli.W.B., Salanova, M., Gonzalez, R. V. and
Bakker, A.B. (2002). The measurement of engagement and burnout: a two sample
confirmatory factor analytic approach. Journal of Happiness Studies.3, pp.
71-92. [Online] Accessed: 08 April 2023
I agree with the insights presented in the blog on the challenges faced by HR in employee engagement and retention, and how to overcome them. The author rightly points out the impact of technological advancements and remote working on employees' work-life balance and engagement (Galanti, T. et al 2021). Providing flexible work arrangements and investing in career development programs are effective strategies to increase employee engagement and retention (Kelliher and Menezes, 2019). Regular feedback, recognition, and wellness programs can also positively impact employee engagement (R. Sutton, and B. Wigert 2019; Mani, V., 2011).
ReplyDeleteMoreover, investing in stronger leadership and management skills is critical in creating a positive work environment (Mani, V., 2011). The blog provides valuable insights for HR professionals on how to address employee engagement and retention challenges in a rapidly evolving work environment. Overall, it is essential for organizations to prioritize employee engagement and retention to achieve their goals and stay competitive.
Yes Hassaan,Thank you for highlighting the impact of leadership skills.Leadership is a driving force of organizational success.A good leader with appropriate management skills is mandatory to create a positive work culture which boost employee satisfaction.
DeleteAn interesting topic.
ReplyDeleteIn addition to the above points discussed, employee-manager relationships also play vital role in employee engagement and retention. When employees feel supported, valued, and heard by their manager, they are more likely to be motivated and committed to their work. Appreciation also makes an impact on employee engagement and retention. Compensation review based on market forces such as inflation should be undertaken by organisation and employees should be fairly paid which will also support in retention and loyalty.
Yes Kabi,it is important to consider the inflation and other market forces in compensation as well as workplace relationships would play a pivotal role in the organzationanl employee retention. Appreciate your insight on it
DeleteOne of the many issues that today's business leaders must concentrate on is corporate culture. Be that as it may, it appears to be less clear the way in which pioneers ought to move toward the issue. Culture feeds on itself, so managers who think they can decide for themselves how the company's culture should look are wrong. The misconception that management can introduce culture into an existing organization is always dangerous because culture is already present. However, it is open to leadership's influence. Understanding the organization's current driving forces and applying them to the intended culture is the key. If leaders want employees to maximize productivity, complete projects on time and accurately, and contribute to the success of the business, they must ensure that each member of the team is aware of exactly what is expected of them. In any case, setting clear assumptions is some of the time not exactly simple or easy inside a bustling association, and there are "correct" ways and "wrong" ways of doing as such.
ReplyDelete