Yahoo News Why are employees so disengaged – and can we fix it?
Amid a rising cost of living and changing workplace, stress among workers is at an all-time high – and engagement is at its lowest point in a decade.
According to research by Gallup, fewer than one in 10 UK employees are feeling enthusiastic about their job. And it’s an international problem too, with just 21% of global employees engaged at work.
After trending up in recent years, employee engagement in the US saw its first annual decline in a decade – dropping from 36% engaged employees in 2020 to 34% in 2021.
This pattern continued into 2022, as 32% of both full and part-time employees are now engaged, while 18% are actively disengaged.
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Clearly, there is a problem in workplaces. Surveys have found that low pay, a lack of opportunities for advancement and feeling disrespected at work are key reasons why people are checking out.
And when the pandemic struck, it not only changed how we worked, but how we felt about work too. The ability to work flexibly became a sticking point for many workers, who looked for a better work-life balance.
Jill Cotton, a career trends expert at the job firm Glassdoor, explains that employees are becoming disengaged with their organisations because of a ‘needs mismatch’.
“This is the gap between what employees want and what employers think employees want,” she says. “Established recruitment plans and office perks are no longer working. Companies need to switch it up as the ongoing tight labour market means employees still have the power to demand more.”
The drivers of employee satisfaction are the same now as they were before the pandemic, research by Glassdoor shows. The culture and values of a company, the strength of senior leadership and access to learning and development opportunities are what matters most when it comes to employee engagement.
“Workers are more likely to switch off if a company isn’t meeting these needs” says Cotton. “And offering high pay won’t help retain your talent. In both the US and US, compensation and benefits have the least influence on a worker’s satisfaction with their job.”
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Although money isn’t everything, the soaring cost of living is causing problems. Companies are feeling significant financial pressure as bills mount, but employees are too.
According to a recent survey, workers across the UK are struggling with the ongoing cost-of-living crisis, with 84% of UK employees experiencing stress and anxiety.
The survey of 1,000 people found 62.5% are considering leaving their current job if their employer doesn’t recognise their financial struggles or support them.
Additionally, the world of work has radically changed. The relationship between employee and employer in 2023 is different from it was in 2020.
“Long-held notions of how and where we work have been challenged, and historically high job vacancies have allowed workers to demand more of their employers,” says Cotton.
“For example, employees overwhelmingly expect more flexible work options. Work has also become more personal and an increasing number of employees are looking for the mission and culture of an organisation to align with their own values. If this can’t be achieved, dissatisfaction can quickly creep in.”
So, what needs to be done to address the problem? And is it something employers can work on?
Improving employee engagement levels is possible for all companies, according to Cotton. But to do so, employers need to recognise that meeting the basic needs of workers is no longer enough.
It’s in the best interests of businesses to do so, as research shows companies with engaged workers have a 23% higher profit than those with unhappy employees.
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Leaders can improve employee engagement by helping managers understand their people better. This includes how they feel about life outside of work, and helping them focus on what they do best in the work environment.
“Companies must listen to the employee voice and embrace transparency to attract and retain talent,” she explains. “Increased transparency might feel uncomfortable but it’s necessary if you want an engaged workforce.”
Trust, respect and appreciation are critical to a better employee-employer relationship.
“It’s also important to focus on your employer brand, be brave and ask your current workforce whether your imagined reputation is their lived reality,” says Cotton. “If there are improvements to be made - and let’s face it, no company can be perfect – be consistent in your response and action on employee feedback.”
