Skip to main content

Enhance employee engagement or hire engaged employees ?



Profit being the key driver of any business, all its activities are necessarily aligned to achieving this goal. Employee engagement is one of the means being increasingly employed by businesses worldwide to maximize their profits.
The latest trends in employee engagement indicate that future companies would be driven by compassionate leaders, marked by greater flexibility and much greater influence of big data…all aligned to creating engagement rich organisational cultures.  
But regardless of the direction it takes in the future, employee engagement entails both monetary and physical costs. Companies typically spend massive amounts of money on incentives, benefits and reward programs. They must train and develop their employees and also spend on various supporting programs, physical and IT infrastructure. All of this plays a critical role in the success or otherwise of employee engagement. 
The problem


But despite such massive outlays Gallup’s poll shows that employee engagement has risen by a snail’s pace from 29% in 2011 to just 31% in 2017  in the US and this figure is all the more dismal at 13% at the worldwide level.
On top of it comes the bad news about attrition despite the enormous attention being paid to employee engagement, its increasing role across companies and the massive financial outlays that companies have earmarked for this initiative. 
The 2016 Deloitte Millennial Survey: Winning over the next generation of leaders, estimates that two in three Millennials expect to leave their employers by 2020 and 44% expect to leave in less than two years. It is pertinent to point out that this generation now represents the largest share of the US labour market.
According to a Glassdoor report, only 54% of employees recommend their company as a place to work and according to a Dice Tech Salary survey, two-thirds of all workers in the high-tech industry believe they could find a better job in less than 60 days if they only took the time to look.
The solution


In this scenario, companies must necessarily look for practical solutions that would help them in keeping their employees engaged. Clearly, it would serve their purpose if their expenditure on employee engagement is reduced.
One sure way to achieve this aim is to either entirely or partly outsource some core functions like finance, HR and marketing.  Many companies have also started to outsource their IT functions fully or partially.  Engaging companies like Outsourced CMO gives a four-fold benefit to the parent company. 
  • It ensures that the parent company gets a fully engaged team that is geared to work towards its goals as the outsourced team is driven by the pre-agreed KRAs and works with zeal and single-minded drive to fulfill its commitment.
  • It lessens the burden on the HR department of the parent company by reducing the number of employees that it is directly responsible for in terms of employee engagement.
  • Reduction in the number of employees frees HR to devote more time to other core and pressing areas.
  • It also naturally has a beneficial financial implication for the parent company. Lesser number of employees means lesser outflow of finances on employee engagement programs like training and on incentives and benefits.
Thus it creates a win-win situation for the parent company as it not only takes care of the vexed question of employee engagement, albeit partially but can also go a long way in making their businesses profitable as they take onboard experienced and tried and tested professionals who can hit the deck running.
Labels:

Comments

Post a Comment

Popular posts from this blog

Why is digital marketing important for Medium and Small Enterprises ?

One of the key differentiators of the success of a business is the number of customers that it can reach as more customers mean more sales volume.   One of the technological innovations that helps a business in this direction is digital marketing . It is indeed a boon for MSMEs as it lets you reach your target audience with ease, simplicity and at very low cost. Cost is always a concern for most MSMEs. Why would anyone not want to use the power of the internet with over 3 billion users to further the cause of their own business? But it is a fact that deploying digital marketing for their own benefit seems a herculean task for many MSMEs as they feel that they are not adept nor attuned for the digital world, they also tend to think that they will not reach their target market or they simply do not have adequate information, lack sufficient human resource and tools to manage the digital world. Here is where organisations like Outsourced CMO can help these MSMEs bridge ...
137 comments
Read more

Expanding into New Markets: Leveraging Fractional CXOs for Strategic Growth

  Expanding into a new market can feel like a massive leap, especially when you're not ready to commit to a full-time executive team. The stakes are high, and there are often unknowns that come with breaking into new territories—whether it’s business challenges, cultural differences, or just understanding the customer base.   That’s where fractional CXOs step in. These experienced leaders work part-time, giving you the strategic support you need without the long-term financial commitment. If you're aiming to break into new markets without taking on too much risk, this approach could be the solution that you're looking for. It’s a smarter, more flexible way to tap into expertise without locking yourself into a full-time leadership position. Why Fractional CXOs Are Perfect for Market Expansion Flexible to Your Needs : The best part about Fractional CXOs is that you can bring them in for a specific project, a particular phase of your expansion, or for just a few month...
Post a Comment
Read more

The Role of Interim CXO’s in Crisis Management

  Crisis management protects the stability and image of a company during unanticipated circumstances. A crisis strategy helps companies to react fast, lower downtime, and keep operations running as they should.   With their knowledge and leadership, Fractional CXOs or Interim CXOs are quite helpful in handling crises like an expert. Their capacity to create effective solutions allows companies to be competitive even in trying circumstances, safeguard employees, and maintain operations.   The impact of Interim CXOs: Working with Flexi CXOs allows companies to access seasoned experts who can provide strategic insight and enable them to weather unpredictability while safeguarding development and stability.   1. Expertise and Experience Interim leaders offer a great reservoir of information from many sectors. They manage difficult circumstances, such operational alignment or financial reorganization. Their capacity to apply several approaches guarantees t...
Post a Comment
Read more