Increase Engagement Rate To Retain Companies’ Most Valuable Asset: Employees

March 30, 2010 - PRLog -- Chicago, IL  – Organizations today have shifted their focus toward Employee Engagement because of the impact Engagement has on their bottom line.  Recently, a link has been found between Engaged employees and higher retentions rates.  According to HR Solutions’ Normative Database, Engaged employees are 3.5 times more likely to stay with a company than Disengaged employees.  Hiring and training new employees is a sizable expense for many businesses.  Employers should focus on improving Employee Engagement to raise retention rates and lower overall expenses.  

In recent months, many companies have been enjoying unusually high retention rates.  However, this does not necessarily mean employees are Engaged.  In fact, only 25 percent of the workforce is Engaged.  In large part, this misperception of Engagement is due to the downturn of the economy and less employment options for workers.  According to the U.S. Department of Labor, the 2009 national unemployment rate wavered around 10 percent, while the job opening rate has been a mere three percent.  Due to increased difficulty in obtaining a new position, many employees have decided to stay at their current job even if they become disenchanted.  When the economy shows signs of recovery, Disengaged and Ambivalent (not Engaged) employees will very likely begin to look for other employment options.  Many companies will see a sizable slump in retention rates as a result.  Now is the time for companies to increase Employee Engagement and prevent the setback and cost of replacing much of their workforce.  

A great way for employers to increase Employee Engagement is through open, two-way communication.  Employees should feel comfortable discussing questions and concerns with their superiors.  Through open dialogues, employers will gain better insight into how to best manage their employees and create a more enjoyable work experience for them.  As Engagement levels increase, companies can feel confident their retention rate will also improve.

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HR Solutions, Inc. is an international Human Capital Management Consulting firm located in Chicago, IL, specializing in Employee Engagement and Exit Survey design, implementation, and results. Contact www.hrsolutionsinc.com or call 312-863-6131 for info.