No Incentives Means Low Employee Engagement; Retention

  • workforce insights
  • September 28, 2012
With optimism returning to the US job market, the disconnect between workers and employers on effective means of employee engagement highlighted in a recent Randstad study is drawing employee retention concerns.
  workers weigh in on employer driven engagement 
American workers and employers remain divided over the best ways of driving sustained employee engagement. In the latest Randstad Engagement Index, 36 percent of workers indicated that bonuses and promotions were the most effective means of driving employee engagement, while only 27 percent report that their employers actually practice these types of incentives.. Additionally, 28 percent of respondents say their companies have a formal system to recognize and reward employees. Instead, it was found that 46 percent of employers were utilizing performance reviews a key means of sustaining employee engagement to which only 16 percent said was effective.

high engagement requires more than high compensation
Jim Link, managing director of human resources for Randstad U.S., notes, “compensation usually ranks at the top of the list [for stimulating employee engagement]; however, our research shows it is important to offer a full package of motivating tactics that not only provide benefits but also promote leadership and professional development.” Nearly a third of employees agree that having a comfortable and stimulating work environment as one of the most effective incentives, and employer adoption of this approach is quite pronounced. 45 percent of employees note that their employers encourage them to share their ideas and opinions, and an additional 38 percent also noted that they are investing in employees’ careers through training, professional development and continuing education.

fix the engagement mix
"This study tells us that employers are doing some things right, but when it comes to finding ways to help boost morale and decrease turnover, relying on annual performance reviews as the only engagement tool is far from sufficient,” said Link. At a time where many workers have already stayed with their employers longer than they had planned and the majority (56 percent) of whom believe it would take a relatively short amount of time to find a new position, employers with lacking employee engagement strategy must address key issues in order to avoid heavy turnover costs.

in conclusion...
“It is important for employers to assess their employees’ needs and create programs that stimulate and inspire their workforces. An investment now in promotions or bonuses, along with impactful programs aimed at motivating, recognizing and rewarding employees, will help with retention efforts, increase productivity, and boost employee confidence in their companies.”

Find more of our thought leadership at Workforce360.
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