Worker engagement continues to sink. Here’s what can be done about it! [Tuesday: Return Driven Strategy]

For today, let’s apply this framework in the context of workplace culture and employee engagement.

Curious to know more?

Keep reading below!

Worker engagement continues to sink. Here’s what can be done about it!

According to  Gallup ’s latest report, employee engagement in the U.S. fell to a 10-year low with only 31% of employees engaged. Additionally, the percentage of actively disengaged employees stood at 17%.

The drop in employee engagement in 2024 was most pronounced in workers younger than 35 years old and those who worked in industries such as finance, insurance, transportation, technology, and professional services.

Put simply, plummeting engagement rates highlight the growing disconnect between workers and employees.

The alarming trend also underscores the urgent need for businesses to reevaluate their employee engagement strategies.

So, what gives? What are the factors that have caused engagement rates to plummet?

• Shifting Economic Realities
  
  Today, workers and their families are having a  hard time  putting food on the table as household expenses and debt service have taken a considerable chunk of household income over the years.
  
  Due to rising living costs, many have turned to taking multiple jobs, eating away at time spent for rest and relaxation, leading to burnout and higher stress levels.
  
  
• Changing Workforce Dynamics
  
  Aside from economic challenges, employees have been faced with rapid organization change, broken performance management practices, and higher employer expectations. 
  
  Additionally, changes in how work is done has impacted the connectedness workers feel with their place of work.
  
  Nowadays, work can be done remotely and as a result, some workers do not have access to the feedback and connection employees had pre-pandemic. 
  
  Another issue that has come about is the debate between on-site work and remote work.
  
  For the past couple of years, companies have pushed return-to-office mandates, leading to friction between workers and employers, further deepening the disconnect between the two.
  
  

That said, how can enterprises mitigate the impacts of declining engagement rates and attempt to raise them?

Culture —often dismissed as a buzzword—might hold the answer.

Companies with a great work culture often enjoy high levels of employee engagement, enabling them to attract and retain top talent effectively.

More importantly, through fully-engaged workers, businesses are able to attain high levels of performance in times of prosperity and uncertainty.

In light of this, how can organizations build a workforce culture that encourages high engagement?

Here are a few pointers:

• Establish a culture of accountability.
• Have managers take ownership not only of positive outcomes but also of negative ones.
• Recruit managers or team leads who possess the ability to engage with and inspire employees.
• Clearly communicate objectives and expectations from the top to the bottom of the organization.
• Provide constructive feedback in a prompt and plain manner.
• Make employees feel they are part of one team by encouraging and putting mechanisms in place to have them pitch their ideas freely to management.

Culture is a powerful driver of employee engagement. That’s why it’s important for businesses to prioritize this area of their operations if they want to effectively retain and attract top talent—especially at a time when the latter is in short supply.

Engaging Employees

Declining engagement rates is a worrying trend in today’s work environment. It’s a sign that there’s a chasm separating employers from workers.

This worrying trend couldn’t come at a worse time, as the jobs market is facing a real talent crunch. Combined together, these challenges could jeopardize the short- and long-term competitiveness of businesses.

Professor Joel Litman  and  Dr. Mark L. Frigo  in the book,  “Driven”  highlighted the importance of engaging employees as a crucial step in attaining high levels of performance.

According to them, high performance firms should understand employee needs and create systems that fulfill those needs. 

In the context of employee engagement, businesses need to prioritize the creation of a work environment that cultivates and maintains high levels of employee engagement.

By doing so, companies can build a work environment that cultivates high levels of employee engagement, leading to better performance and better retention rates.

Simply said, if businesses want to attain and maintain their competitive edge, then they need to have a fully-engaged workforce.

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If you’re looking to gain a better understanding of Return Driven Strategy and Career Driven Strategy, we highly recommend checking out  “Driven”  by Professor Litman and Dr. Frigo. 

Click  here  to get your copy and learn how this framework can help you in your business strategies and ultimately, in ethically maximizing wealth for your firm.

Hope you found this week’s insights interesting and helpful.

Stay tuned for next Tuesday’s Return Driven Strategy!

In the bustling world of retail, where split-second decisions can make or break a business, EFFICIENCY reigns supreme.

Learn more about  Walmart’s ERP system  in next week’s article!