ENGAGING EMPLOYEES: A KEY COMPETITIVE DIFFERENTIATOR

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1 ENGAGING EMPLOYEES: A KEY COMPETITIVE DIFFERENTIATOR 1.

2 ENGAGING EMPLOYEES: A KEY COMPETITIVE DIFFERENTIATOR There is a link between employee engagement and organisational performance, which is why employee engagement continues to be a top priority for businesses around the globe. Leading organisations understand that employee engagement drives real business outcomes. While employee churn comes with high business costs. Studies show that an engaged workforce increases productivity and drives profitability. 3% REVENUE GROWTH Research from Aon Hewitt revealed consistent, statistically significant relationships between higher levels of employee engagement and financial performance. Their study found that a 5% increase in employee engagement was linked to a 3% increase in revenue growth in the subsequent year. Aon Hewitt is not alone. Deloitte s 2015 Global Human Capital Trends study showed that organisations that prioritise employee engagement, organisational fit and strong leadership outperform their peers both financially and in terms of attracting top talent. So improving employee engagement isn t just about providing a better work environment, it s actually key to improving business performance. WHY ENGAGEMENT MATTERS Engaged employees are committed to their employer, satisfied with their work, and willing to give extra effort to achieve the organisation s goals. Engagement also influences other HR priorities such as retention, performance, absenteeism, and recruitment (through employer branding). 2.

3 EMPLOYEE ENGAGEMENT: A KEY MEASURE OF SUCCESS Yet employee engagement levels have barely moved in well over a decade. And it s a sad fact that truly engaged employees are still the exception - not the rule - in most modern workplaces today % ARE ACTIVELY DISENGAGED In fact, according to the latest Gallup poll from January 2016, the majority of US employees are not engaged. In fact, an alarming 15.7% are actively disengaged. U.S. EMPLOYEE ENGAGEMENT, (MONTHLY AVERAGES) % Of Engaged Employees One of the most challenging aspects of employee engagement is that its cause can be multi-faceted: Poor management and leadership Inadequate feedback & manager-employee interaction Poor alignment of individual goals with business goals Lack of recognition Yet despite the keen attention on engagement, many organisations tend to focus on measuring it as opposed to working out the cause and improving it. As such, they fail to make the necessary changes to better meet employees workplace needs. 3.

4 Engagement plays a significant role in the company s financial performance. It should be planned, monitored and continuously improved. ENGAGEMENTS SURVEYS ALONE ARE NOT ENOUGH In too many companies, the annual employee survey is still the leading measure of engagement. According to Gallup, many organisations view engagement as a survey or program instead of as an ongoing, disciplined method to achieve higher performance. 70 % DON T RESPOND Other research shows that as many as 70% of employees don t even respond to these annual surveys, and 29% think they are pointless. There s a widely held view that HR managers do not act on the survey results. It s clear that the annual survey cannot be the sum total of your employee engagement program. HRIS: THE FOUNDATION FOR EMPLOYEE ENGAGEMENT HR software supports an evolving, modern workplace While employee engagement is pivotal now, its importance will only grow. As the number of Millennials in the workforce grows, providing digital platforms, automation and instant access to data and services is becoming a pre-requisite. People increasingly expect to have anytime/anywhere access to work-related data, just as they have in their personal lives. So, HR needs to fit in with the preference for consuming work services just like they consume lifestyle products. Delivery has to be simple, elegant and fast. 4.

5 Employees expect to be empowered by technology Only a decade ago HR systems were designed to help HR professionals do their jobs. HR management systems, applicant tracking systems, learning management systems, and most payroll and benefits applications were created to streamline the work of HR. It was all about administration, improving recordkeeping, and redesigning HR processes. Although employees were considered the endusers of these systems, they typically used them as little as possible, and mainly as replacements for the paper forms developed by HR. Today that has all changed. HR applications need to be tools for employees first; enabling them to better manage people, learn and develop, and steer their own careers. HRIS: SYSTEMS OF ENGAGEMENT User experience along with self-service functions are key. HRIS platforms must create a better experience, whether that means faster, better or more engaging. Your HRIS platform needs to be: EASY TO USE Allowing your least tech savvy employees to use and navigate the system. A HOLISTIC HR EXPERIENCE Providing everything that you need from hire to retire. It s far easier to have one solution than multiple software platforms serving different purposes. EMPLOYEE-CENTRIC Putting the employee front and centre in all HR processes. HIGHLY VISUAL Using data visualisation to show trends and patterns to help you make better, more informed decisions. BEST EXPERIENCE POSSIBLE Keep in mind that as technology becomes easier to use, your goal should be to implement a system that is functional, makes sense, and provides the best experience possible. At its very core, it must be a system that employees want to use, explore and engage with on a regular basis. A good HRIS platform should become just part of doing business and coming to work. It shouldn t be an extra thing that is annoying to access; but a system that is fun, engaging and part of everyday life. 5.

6 MODERN HRIS PLATFORMS Your HRIS platform should help improve employee and candidate experiences that ultimately reflect on your organisational brand. Modern HR software answer the growing need for employers to offer innovative ways for employees to interact at work. Plus, as global workforces become more mobile, the business functions that support these workforces must also be mobile. EMPLOYEE ENGAGEMENT IS A BUSINESS IMPERATIVE FOR LEADERS AT ALL LEVELS AND IS NO LONGER SOMETHING TO BE MEASURED JUST ONCE A YEAR BY TAKING A LOOK IN THE REAR-VIEW MIRROR. DESPITE THE EMERGENCE OF MANY TOOLS FOR FREQUENTLY EVALUATING EMPLOYEE SENTIMENT, 64 PERCENT OF ORGANISATIONS STILL ONLY MEASURE EMPLOYEE ENGAGEMENT ANNUALLY. MANAGERS AND LEADERS ARE NOW ACCOUNTABLE FOR ENGAGEMENT, BUT HR HAS TO BE PROACTIVE, IMPLEMENT THE RIGHT TOOLS, AND GIVE BUSINESS LEADERS A CONTINUOUS STREAM OF DATA WITH WHICH TO MAKE FUTURE DECISIONS, PROMOTE A CULTURE OF LISTENING, AND ENSURE THAT REWARD SYSTEMS ARE CONSISTENT WITH ENGAGEMENT AND RETENTION GOALS. GLOBAL HUMAN CAPITAL TRENDS 2016 IV Ensuring that your employees have the right tools and technology at their fingertips in every situation will help create a deeper level of engagement and take your company s talent to the next level. 6.

7 RAISING EMPLOYEE ENGAGEMENT LEVELS 01 Provide all employees with easy access to a central repository of HR policies, documents, workflows and templates to ensure consistency, and compliance. ONLINE PORTALS 02 SELF SERVICE Allow employees and managers to access information, and personally manage and adapt data via self-service tools. By providing self service functionality, you can eliminate many routine HR tasks by giving employees full ownership of their data. Self service empowers them with fast access to personal information, employee benefits, and training programs. 03 COLLABORATION Facilitate two-way communication between employees at all times in a variety of ways: News feeds: to inform employees of the latest company news Virtual communities and forums: to enhance interaction and collaboration Productivity trackers: to allow teams to manage tasks together. 04 HR APPS Provide HR apps to allow employees to access HR-related information from any device, anytime, anywhere, and offer a highly personalised experience. Mobile applications are easy to access and fast to load. They are especially useful when information is needed, or an action must be completed at a moment s notice; such as requesting or approving leave, or looking up a co-worker s contact information. 05 EMPLOYEE VOICE Give all employees the opportunity to openly communicate ideas, and provide feedback across the organisation. The ability to contribute to decision-making is one of the top drivers of employee engagement. So part of putting employees first, also involves enabling their voice to be heard. 7.

8 A NEW FOCUS ON HRIS Improving employee engagement requires the commitment of leadership and management to incorporate modern HR tools into its central HR strategies. More than just automating processes, HRIS tools enable employees to access data and collaborate with their peers. A more social and mobile internal communication strategy will also lower the cost of HR service delivery while dramatically improving employee satisfaction and engagement. DATA-DRIVEN DECISION MAKING At the same time, with a modern HRIS platform, you can measure everything you do. By becoming more data-driven in your decision making, you ll be better able to spot trends and identify opportunities while pinpointing problem areas that need attention and correction. Used properly, you can determine if what you are doing is working to further improve employee engagement. SUMMARY Employee engagement and organisational performance are inextricably linked. While engagement plays a significant role in the company s financial performance, technology plays an equally significant role in achieving this engagement. Both should be constantly monitored and improved whenever possible. Strategic HR moves beyond using HRIS to achieve administrative efficiencies and uses it as a transformational mechanism that drives business decisions. With the right HRIS tools and technologies, HR can better meet its end-user needs and enhance employee engagement by positively impacting the organisation s bottom line. Engagement is not simply about turning an organisation into a great place to work. 8.

9 ABOUT EMPLOYMENT HERO Modern HR vendors need to be innovative to keep up. They need to have highly expert teams, with the ability to rapidly adopt new products and technology that their clients demand. That s where we come in. Employment Hero has been helping Australian businesses craft successful automated HR solutions since We now have offices in Sydney, Melbourne, Brisbane and Perth. The Employment Hero is a team made of the best employment lawyers, top HR specialists and legendary payroll officers, that are all ready to work together as an extension of your company. With our centralised, cloud based platform, we provide all the tools and resources that businesses need to hire superstars, and keep them happy. If you want to arrange a FREE demo, call and we ll be happy to arrange it. i. Aon Hewitt: 2015 Trends in Global Employee Engagement ii. Global Human Capital Trends 2015 Deloitte University Press iii. Gallup Employee Engagement iv. Global Human Capital Trends 2016 Deloitte University Press 9.

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