As employers compete to attract qualified candidates to their businesses, they are neglecting their biggest asset, their existing talent.
A new report, Changing Perceptions : The Current State Of Employee Engagement suggests that only 10% of workers are completely satisfied at work. The cause appears to lie in a disconnection with the leadership of the company:-
- 74% state they rarely see their CEO in their working environment.
- 31% have never met their CEO.
- 48% feel their company leadership is ‘distant or remote’.
- 87% feel the only opportunity to contribute or share ideas occurs during the annual appraisal.
This report echoes concerns raised by the CIPD recently over the lack of transparency in CEO pay which reinforces the distance between senior leaders and their employees. As the gap between business leaders and their employees grows ever greater, UK workers are also feeling increasingly insecure. The number of people working on zero hours contracts or on ‘bogus’ self employment contracts is exacerbating the issue.
Changing your views on engagement and leadership
According to Josh Bersin of Deloitte, the traditional view of ‘top down’ leadership and a corporate hierarchy needs to change. In a recent presentation, he highlighted effective role models of collaborative, purposeful, servant leadership. He encourages businesses to improve communication and share values to enhance the sense of a positive culture culture.
These recommendations align with Totem’s survey which found that employees want:-
- The opportunity to build better relationships with people outside their teams.
- More opportunities to meet with leaders in their business.
- More recognition for achievements.
As the nature of work continues to change, company leaders can’t continue to run their businesses based on historical practice and reward systems. The most successful leaders:-
- Care about their team members
- Provide opportunities for growth.
- Set clear expectations and goals.
- Provide frequent feedback with actionable steps.
- Offer helpful resources.
- Encourage all teams to be accountable for their success.
- Recognise and celebrate outstanding work and achievements.
Why does it matter?
It matters for several reasons.
REC’s latest Labour Outlook survey found that one in five employers state ‘a shortage of suitable candidates’ as one of the main challenges their business is facing.At the same time, they are failing to invest or utilise the skills of their existing talent. The UK is facing a shortage of 745,000 digital skills workers this year yet the Institute for Public Policy Research (IPPR) found that employers spend less than half per employee per year than the EU average on training, equating to c£6 bn.
Furthermore, one third of employees (nearly 9 million people) believe they are ‘over qualified’ for their jobs and it’s estimated that just one unhappy member of staff could cost your business £16,000.
Engaging with your employees through positive leadership should form part of your overall talent acquisition strategy in order to avoid a potential talent exodus or skills shortage.
Improving engagement through positive leadership and investment in your people will also enhance talent acquisition strategies. Bersin by Deloitte’s Reignite Talent Sourcing report revealed the following top three sources of quality candidates, the first and third rely on an engaged workforce:-
- Employee referrals (51%)
- Professional networking sites such as LinkedIn (42%)
- Internal candidates (40%)
The data collected in your HR software will reveal where the applicants to your job posts are entering your recruitment funnel.
Companies with mature talent acquisition strategies were also nearly a third (32%) more likely to recruit candidates via internal sources – ie, employee referrals and existing talent. The two main reasons for this are a strong employer brand supported by an effective careers website. Supporting your talent management strategy with sophisticated recruitment software will enable you to track the sources of your top performing talent, identify existing employees with the skills your business needs and streamline your hiring process.
Advorto’s recruitment software helps you to manage your entire talent recruitment lifecycle and hire better people faster. Contact us today to start your 30 day free trial.
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