Imagine walking down the corridor to your office and being greeted by a life-sized cardboard version of your co-worker Vicky as she delivers her stand-up routine at the local comedy club. Or, maybe it’s an almost life-sized shot of client manager Rebecca and her horse as they perform an intricate movement at a recent dressage competition. Talk about exciting engagement.

"Engagement" has become the new answer for organizations – but what exactly is the question? Organizations are looking for some panacea to solve workforce issues that have arisen because of the stressful economy and strained resources. At a time when salary increases are next to impossible, but dissatisfied employees are unlikely to leave a secure job, it’s more critical than ever to keep people motivated, committed, productive and creative.

Canadian organizations face heightened “flight risk” as employees evaluate new opportunities in a recovering economy. Employers cannot afford to be complacent about employee engagement; they need to invest in workforce strategies to both attract and retain employees. The findings of The Conference Board of Canada’s second Human Resources Trends and Metrics survey, released today, provide data and measures that allow human resources (HR) leaders to make sound decisions about their workforce planning.

“The recession gave employers only a brief reprieve from looming workforce shortages and an ongoing competition for talent. A growing economy and an aging workforce mean that it is just a matter of time before pressure in labour markets begins to build again,” says Ruth Wright, associate director, Leadership and Human Resources Research.

“The demand for skilled people never went away during the downturn, and concerns about skills and talent shortages are evident even at the highest level of organizations. Management and leadership development, and succession planning, are high priorities for HR leaders. Many organizations-particularly in the private sector-are identifying key leadership positions for the purpose of succession planning.”

Survey participants are well aware that their workforces are aging. Close to half of the collective workforce in the responding organizations is over the age of 45. Retaining employees and building leadership capacity are among the top challenges facing organizations, along with attracting and recruiting employees. It is therefore not surprising that management and leadership development and strategic workforce planning are seen as priorities both in the short term and over the next three to five years.

Succession management, as well as knowledge transfer and management, are rising as priorities – surpassing even employee engagement in importance. The priority placed on knowledge transfer and management, in particular, has increased noticeably since the first trends and metrics survey conducted in 2005 (as well as other Conference Board surveys).

Indicators of leadership “bench strength” for top executives have remained constant (at about one-half a successor for every senior leadership position) compared to the previous trends and metrics survey. However, succession pools for second-level executives and senior managers (which were even lower in the previous survey than those of top executives) have increased since 2005. More organizations are identifying “mission-critical” positions and are grooming high-potential employees for these roles than they were in the 2005 findings.

The Conference Board conducted its second survey into human resource trends and metrics in late 2008 and early 2009. The findings are published in Valuing Your Talent: Human Resources Trends and Metrics, based on the responses of 167 Canadian human resources leaders.

This publication is available to subscribers at www.e-library.ca.

As director of workforce engagement and communications for the Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC), Erin Sills is responsible for leadership and culture development, change management, team effectiveness and internal communications.

Receiving an evaluation has a significant influence on an employee’s engagement level and views of their immediate manager and organizations. Employees who are given a performance appraisal are more engaged and are more satisfied with their job and the company overall.

Research conducted by the Kenexa Research Institute (KRI), a division of Kenexa, a global provider of business solutions for human resources, evaluated the impact of receiving a performance appraisal on workers’ perceptions of their managers and organizations. The report is based on the analysis of data drawn from a representative sample of workers surveyed in 2009 through WorkTrends, KRI's annual survey of worker opinions.

Across the 12 largest economies in the world, about 60 per cent of employees report having received an appraisal within the past 12 months. Those in Spain are the least likely to report receiving a performance appraisal, while those in the U.S. are the most likely.

The research indicates that receiving a performance appraisal has a significant, favourable impact on how employees rate their pride in the organization and their willingness to recommend it as a place to work. Furthermore, those employees who receive a performance appraisal are more likely to say they intend to stay relative to those who have not received a performance appraisal.

Employees who have received a performance evaluation also have more favourable views of their immediate manager. They are much more likely to state that their managers display the fundamentals of managerial competence: treating employees fairly and doing a good job at managing the team’s work and the team itself.
Additionally, if employees received a performance appraisal, they are more likely to feel a sense of job security, be satisfied with on-the-job training, feel that performance is evaluated fairly, and experience greater feelings of personal accomplishment.

“Human beings have a fundamental need to know how they are doing. It’s simply part of who we are and what we are about. It’s amazing that two-fifths of the world’s workforce is not receiving any formal feedback on their job performance and how they are contributing to their employer’s success,” says Jack Wiley, executive director, Kenexa Research Institute.

Wiley notes that, “When we gauge the positive impact of this important talent management tool, we once again see that building an engaged workforce is often based simply about the fundamentals. In this case, it is about managers and leaders communicating expectations and providing their employees feedback.”  

For more about Kenexa, visit www.kenexa.com.

As the economic downturn continues, ensuring that employees are engaged is crucial to keep workplace morale and productivity high, according to Watson Wyatt, a leading global consulting firm. Findings from the consulting firm’s WorkCanada Report suggest that employers can take specific actions to increase engagement and productivity.

Even though Canada and much of the rest of the world is in the midst of a recession, the majority of Canadian employers are proceeding with caution, avoiding layoffs where possible, according to a recent survey conducted by Hewitt Associates, a global human resources consulting and outsourcing company. Instead, organizations are looking at alternative solutions to manage human resources budgetary constraints, while still investing in those programs that drive employee engagement.

Survey results indicate that, for the most part, employers are considering changes with an eye to the future. Few are cutting back on employee benefit programs: any reductions are focused on discretionary spending, such as business travel. "Employers recognize that the recession won't last forever and they don't want to find themselves short of employees or skills when things improve," states Tim Clarke, Hewitt Canada's benefits practice leader.

Limited layoffs but fewer new hires
Fifty-three per cent of survey respondents are scaling back recruitment efforts and 47 per cent have put a stop to plans for new hires. In comparison, thirty-one percent of the 192 companies surveyed indicate some layoffs are expected. Most of these layoffs will occur in the manufacturing sector, or at retail, financial, and pharmaceutical companies.

Early retirement programs are not figuring heavily in companies' plans at this time. Only 15 per cent of those surveyed indicate that they currently offer, or expect to offer, early retirement incentives; 80 per cent do not expect to utilize early retirement programs to manage workforce numbers.

Benefit programs tighten but remain intact
Few organizations are planning to make cuts to employee benefits. Eighty per cent intend to leave their medical, dental, and disability benefit plans unreduced. Some employers are even planning to expand their benefit programs. Benefits that improve employees' overall well-being and help them manage stress seem to be particularly popular, including health and wellness programs and coverage for paramedical services such as physiotherapy or massage therapy.

"In lean operations where every employee counts, companies need staff to contribute by staying healthy and engaged," says Rochelle Morandini, a senior organizational health consultant with Hewitt. "Employers understand that they need to support their employees in managing their stress and staying well, so that they can maintain productivity."

Certain other benefits will also remain intact or even be enhanced. "As far as benefits like employee recognition and loyalty programs, and training and development, it seems that the majority of employers view these programs as good ways to maintain engagement – employees' desire to stay with an organization and put in their best effort on the company's behalf," says Clarke. "Moreover, most of these programs do not cost a lot, as compared to other benefits, so it's money well spent from both the employees' and employer's perspective."

Most retirees and near-retirees are no more likely to be affected by tighter human resources budgets than others, according to the survey data. Only five per cent of respondents plan to cut retiree benefits, and even fewer plan to cut retirement contributions or member services. This is good news for older workers and current retirees whose retirement savings have been hard hit by the meltdown of the markets.

Many employers are looking to reduce their benefits costs where possible, primarily in ways that will have no direct impact on employees and their families. About 25 per cent will be seeking a reduction in benefit insurers' administration fees, commissions and outside supplier fees. Only about 11 per cent plan to cut internal pension and benefits support staff.

The biggest cuts will occur in business travel: 58 per cent of respondents plan to cut back either substantially or slightly. Holiday celebrations also seem to be on the wane, with ten per cent of organizations cutting back significantly this past season and a further 22 per cent cutting back slightly.

Communication is key
Despite widespread reports of the economic downturn, few organizations are dealing directly with the stress that may be caused by fears of cutbacks and layoffs. Over 35 per cent of employers are not planning any communication to employees about the situation or its impact on their workforce. Of those who do plan to communicate with employees about the economy, most organizations will discuss the business climate in general, rather than specifics about human resources strategies, pensions, benefits or compensation.

"Employer silence at this time may unnecessarily raise employee anxiety," says Morandini. "This is a perfect opportunity for organizations to reach out to employees to explain their approach, the actions they are taking to cope with the recession and their rationale. Clear communication will not only allay fears, it will help employees feel somewhat more in control, and even have further benefits such as getting employees on side and participating with cost-saving measures."

For more information, please visit www.hewitt.com.