As an HR leader, you know the importance of employee engagement — and how it connects with business outcomes. But did you know that a Gallup study found that employee engagement is at only 20% globally?
And for the first time in over a decade, employee engagement in the U.S. dropped, from 36% in 2020 to just 34% in 2021. Even more troubling, 16% of respondents stated that they were actively disengaged.
These levels of disengagement hamper productivity and hold companies back from reaching their goals. What can you do boost employee engagement at your company?
In part two of our three-part blog series “3 steps to strategic HR,” find out the next step you can take to strengthen employee engagement.
Step 2: Focus on improving the employee experience.
When HR facilitates a positive employee experience, companies are 1.3 times more likely to outperform other companies, according to McKinsey research. Your strategy for building a positive employee experience that attracts and retains talent should include regularly reviewing compensation and benefits to stay competitive. But that’s just one piece of the puzzle.
The top strategic priority that HR leaders identified for 2021 was employee wellbeing and mental health at 68%, a Future Workplace survey found.
Consider the questions below to assess how your HR team is performing:
- How are we protecting our employees’ wellbeing?
- Do employees feel that our organization is living its values?
- Is our onboarding process contributing to employees’ sense of belonging?
- How can we expand growth opportunities?
- Does our work experience meet the needs of both hybrid/in-office and remote employees?
At the center of many of these questions is fostering a sense of purpose, belonging, and holistic employee wellbeing.
Take employee wellbeing to the next level
When it comes to employee wellbeing, you’ll also want to consider employees’ financial health — a factor that can have a significant impact on productivity and absenteeism. Take a look at these stats:
- 1 in 3 employees is distracted by finances at work.
- Financially stressed employees miss almost twice as many days (3.5) each year compared to their unstressed counterparts.
- 78% of financially stressed employees are more likely to leave for an organization that cares more about their financial wellbeing.
- 88% of employees take advantage of employer-provided financial wellness services.
What can you offer to encourage your employees’ financial wellness? Earned wage access (EWA) is a good place to start, especially since 42% of full-time employees have a hard time paying household expenses on time each month. With on-demand pay options, employees can access a portion of their earned wages prior to payday. This helps employees avoid high-interest payday loans and gives them greater freedom over the money they earn.
Look out for the final installment in our three-part blog series “3 steps to strategic HR” coming soon! In the meantime, learn more about myFlexPay — our earned wage access and payroll card options — here.