Employee engagement
David MacLeod and Nita Clarke were commissioned by the Department for Business (BIS) to take an in-depth look at employee engagement and to report on its potential benefits for organisations and employees.
The former Secretary of State for Business, Lord Mandelson, encouraged the independent reviewers to examine whether a wider take up of engagement approaches could impact positively on UK competitiveness and performance, and meet the challenges of increased global competition.
The independent reviewers’ answer is an unequivocal yes. Since Autumn 2008 they have seen many examples of companies and organisations where performance and profitability have been transformed by employee engagement; they have met many employees who are only too keen to explain how their working lives have been transformed; and have read many studies which show a clear correlation between engagement and performance – and most importantly between improving engagement and improving performance.
The previous Government accepted the recommendations of the report, and launched a campaign asking employers what would help them better engage with their employees. To share your views, visit the campaign page on businesslink.gov.uk.
People Interaction: Better engagement, better business on businesslink.gov.uk
Background on the review
The review consultation process was conducted from October 2008 to May 2009; it included meetings with leaders, practitioners, experts, representative bodies and thought leaders. 30 consultation events were held across the country and included all sectors of the economy. The on-line call for evidence attracted over 300 responses.
A selection of the views we heard:
"HR is fundamental but HR strategies alone won’t deliver."
"There is a lack of understanding that trust works two ways and that not trusting your employees has a negative impact."
"Engagement matters because people matter – they are your only competitive edge. It is people, not machines that will make the difference and drive the business."
"Employee engagement is when the business values the employee and the employee values the business."
David and Nita argue that if employee engagement and the principles that lie behind it were more widely understood, if good practice was more widely shared, if the potential that resides in the country’s workforce was more fully unleashed, we could see a step change in workplace performance and in employee well-being, for the considerable benefit of the UK.
The report argues that wider delivery of employee engagement could have a positive impact on UK competitiveness and performance both during the downturn and in powering through to recovery. It concludes that while there are some excellent examples of good employee engagement, there are barriers to uptake, particularly amongst smaller businesses, and that Government can play a unique role in giving the subject profile, and bringing together role models with those who have delivery mechanisms and levers to help galvanise the collective effort.
Engaging for success: enhancing performance through employee engagement [MacLeod review] (PDF, 973KB)
