4 business failures that break employee engagement

Soaring disengagement levels mean employers must address critical issues as well as provide a more consistent approach to rewards and benefits

In the UK, 90% of employees feel disengaged from their employers, according to Gallup research, placing us among the least engaged countries in Europe.

More than half of UK workers perceive their work environment as becoming more intense and demanding. A significant 40% report regularly working beyond their contracted hours, dealing with increased workloads in less time and experiencing higher levels of stress compared with the previous year.

Although rewards and benefits have a key role to play in making employees feel more valued for their increased efforts, UK employers simply can’t expect engagement solutions to fill the gap. A broader plan is needed – and it should start with addressing four key areas where management performance and support need to improve.

4 key influences on employee engagement

1. Neglect of psychological needs

Gallup’s research highlights 12 psychological needs that employees look to for satisfaction at work. At the most basic level they need the resources and clear expectations to do a job. We also have more complex needs such as a sense of purpose linked to the company’s aims and the opportunity to use their strengths. The report reveals that few employers are meeting these needs, leaving employees feeling disengaged.

The ability to meet employee psychological needs sits within the organisations’s control. But it’s important for employers to also minimise the impact of external factors such as the cost-of-living crisis on staff or provide support to access affordable health care services.

2. Lack of equal opportunities

Employers are unlikely to see a significant improvement in engagement unless employees feel they belong in the organisation and that there is equity of opportunity in promotion processes to succeed on merit. People want to feel part of a work community and that they are working together toward a shared purpose. Without an inclusive culture and leadership, employees will struggle to thrive or find pleasure in their work.

3. Lack of support for managers

Gallup found 75% of workers that voluntarily leave their jobs do so because of their boss – not the role itself or the company. This highlights the critical need for organisations to invest in line managers and support their wellbeing. Since the pandemic, demands on managers have increased, while investment in their development and wellbeing has fallen.

People are frequently promoted to managerial positions based on their technical experience rather than people management skills. Softer skills aren’t necessarily innate in everyone but can be learned. A manager that can make an employee feel truly valued, set clear expectations, remove barriers to success and coach their growth positively affects employee satisfaction and engagement.

4. Sporadic recognition

Research shows that employers who value staff have higher levels of staff retention, engagement, and motivation. Yet a common mistake is to rely on just a few points in the calendar year to show appreciation. Typically, this means a focus on end of year, summer party and the annual performance review.

Seasonal celebrations, a pay rise or bonus periods will provide an initial spike in employee motivation, but this effect quickly dissipates as employees return to business as usual. Organisations that want to drive the business benefits of staff recognition throughout the year should have a plan to continually motivate employees. And also ensure line managers understand the business rationale behind these plans so they can add their full support.