Employee engagement is as critical as it has ever been for organisational success, and although the key ingredients that drive engagement haven’t changed in the last 20 years, the environment we are all working in certainly has.
Employees today increasingly value opportunities to develop their skills and careers; they want to be heard and have roles that make a significant difference. This was certainly true 20 years ago, and it remains relevant today. We are seeing the desire to work for an organisation that champions flexibility and wellbeing – and a greater sense of alignment with an organisation’s purpose and impact – on top of the perennial concerns for pay and financial security.
There has been a transformation in the workplace caused by a combination of factors, including digitisation, hybrid working, AI and worker expectations. These shifts pose a growing challenge for businesses in maintaining employee engagement and creating a lasting sense of connection to the organisation.
Communication and authenticity as drivers of employee engagement
Our latest research into employee engagement highlights several areas for businesses to focus on as drivers of future employee engagement and connection in this new environment.
What struck me most is the extent to which recent uncertainty has taken its toll on employees, just as it has on businesses and the markets. As a result, engaging in authentic, unscripted and transparent conversations that help people navigate this uncertainty and adapt to change has become even more important. We need leaders who are committed to developing their people, with the verve to inspire the next generation of leaders and the bravery to lean into the challenges on the horizon.
Whether it’s a shift in organisational strategy or the implementation of new technology, anything that might affect job roles or the service offering needs careful consideration. Specifically, this requires leaders to face difficult situations head-on, invest more time in communicating directly, and act on what they hear from employees.
At a time when resolute and inspiring leadership is most needed, it has become increasingly important to select leaders with the right skillset and temperament to engage authentically and credibly with employees.
The link between employee engagement, customer satisfaction and business performance
For businesses, the key benefit of strong employee engagement is a culture that can adapt to change and which promotes discretionary effort, empathy, collaboration and personal connection.
For Margaret Parkes, Deputy CEO of first direct and Andy Bell, People Director at Hays Travel, who spoke at our research launch webinar on Monday, what this looks like in practice can vary – from having the necessary training and support systems to deal with incidents of customer abuse appropriately, to managing conversations and concerns around AI by hosting drop in sessions for employees to understand how the technology will be used.
Regardless, this sort of culture creates an inclusive and motivating environment for employees. It also drives employee behaviours, and with it, business performance.
As our latest research shows, 95% of consumers who had an excellent service experience with an employee agreed that the person they dealt with was highly engaged with their job, and 58% of those who had an excellent experience with an employee are highly likely to recommend or buy again from the organisation.
Better employee engagement doesn’t just benefit employees, managers and senior leaders. It has a huge impact on customer relationships and the performance of the UK economy as a whole.
These memorable, positive customer experiences with employees have a powerful influence on buying intentions and behaviours. It is therefore essential that we understand the pace of change in employee preferences – as we do for our customers – and turn our attention to how best we can engage our people, and build the trust needed so that they join us on the journey towards growth.
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