Happy Concepts Drawing on Cardboard
Many employers are unintentionally breaking the rules of employee engagement for the sake of profits, and employees feel unappreciated and undervalued. As a result, there is a disconnect between employers and employees. More than half of America's workers have one foot in their current job, and the other foot is out the door.
In his 1990 Boston University paper, Psychological Conditions of Personal Engagement and Disengagement at Work, William Kahn first coined employee engagement. This term perfectly encapsulates every employee's need for fulfilling work. Topping the list of employees' desires are role clarity, professional development, appreciation, recognition and alignment with the company's mission and values.
According to Great Place To Work®, a global authority on workplace culture, 55% of U.S. workers are disengaged, and Gallup has found 40% say their job has negatively impacted their mental health in the last six months. Let's examine data from Great Place To Work® to determine how the marketplace's four largest sectors are trending. Are they following, bending or breaking the rules of employee engagement?
Health Care
Compared to other industries, it's no surprise that most U.S. healthcare organizations rate higher at offering meaningful work. The opportunities for deeper employee engagement in the healthcare industry revolve around pay, promotions, training and development.
By the Numbers:
- 41% report fair promotion practices
- 42% report being paid fairly
The leading healthcare companies have discovered that fair pay and equitable promotion practices, combined with the inherent meaning in healthcare work, are the perfect recipe for employee engagement. It also bakes in the dual benefit of attracting younger talent and increasing the capacity to keep up with demand.
Traditionally, the top executives, mid-managers and most profitable subsections, like cardiology, are a racial monolith. Instead, healthcare leaders must prioritize professional training and development and make it accessible to a diverse group of people to remain competitive.
According to HR Digest, in 2022, companies that invested in employee development saw a 58% increase in employee retention and a 24% increase in productivity. That's certainly nothing to sneeze at!
Technology
The typical technology company is likely to offer a positive employee experience. However, employee trust and morale are currently low due to widespread layoffs. The recent discharge of Google's Director of Global Mental Health and Well-being is another ominous sign that the industry is trending toward breaking the rules of engagement.
By the Numbers:
- 59% report fair promotion practices
- 59% report finding special meaning in their work
- 67% want to stay with their company long-term
One of the biggest challenges across tech companies is creating a culture where remote and hybrid employees feel a strong sense of belonging. Although remote work is generally seen as a benefit booster, it can also be a drag on well-being.
When asked, 58% of remote employees in any industry say they feel they "make a difference" at work compared to 65% who say they "make a difference" when they're in the office five days per week (Great Place To Work®).
As many remote and hybrid employees complain of feeling undervalued at work, they are starting to migrate to non-tech companies where they can have a greater impact.
To hedge against a potential mass exodus, tech companies should invest further and activate employee resource groups, especially those dedicated to first-generation Americans. Culture is one of the biggest human career influences and impacts well-being experiences.
Finance
Only 51% of typical financial services firm employees feel their work has special meaning. The stronger an employee's sense of career identity (a combination of personality, strengths, values, interests and one's definition of success), the easier it will be for them to clarify their role and pursue meaningful work. But unfortunately, many employees don't have the luxury of "time to reflect" because heavy workloads burden them.
Although the financial industry is sadly stereotyped as cold and calculating, the need to feel positive about the value of their work is paramount to employee engagement. Interestingly, the level of employee engagement across all sectors isn’t tied to hierarchy. According to Great Place To Work®, all employees at financial services firms—both individual contributors and managers—are three to four times more likely to stay with their firm for the long term if they say their work is meaningful.
Retail
The average employee in the retail sector is disengaged primarily due to a lack of career development and purposeful work.
By the Numbers:
- 43% report fair promotion practices
- 38% report finding special meaning in their work
- 44% want to stay with their company long-term
The fast pace, relentless change, and frequent retail turnover make improving employee engagement and well-being the most challenging among sectors. Internal mobility strategies have proven to move the employee engagement needle; however, it requires management to upskill their teams and part with high-performing individuals.
The data clearly suggest that increasing mobility alone is a band-aid solution because most employees still find their work meaningless. There's great benefit in Aristotle's wise advice, "Pleasure in the job puts perfection in the work."
Bottom Line:
A Harvard study reported that companies that invested in employee wellness programs saw an average return of $3 for every $1 spent. There's a direct correlation between increased well-being and increased employee engagement.
The question is, does your company have the courage and compassion to follow engagement rule number one, putting people above profits?
