London: Employee engagement will be critical in the coming days to retain talent, as close to two-thirds of employees in Britain are hunting for new jobs this year, says a study.
According to the report by consulting firm Hay Group, employee engagement and enablement would be vital as a full 59 per cent of employees in Britain are looking for new jobs, as the country comes out of a painful economic recovery process.
The report notes that the cost of replacing employees to be between 50 and 150 per cent of salary. Therefore, it points out that companies required to find effective means of preventing exodus of talent as market conditions improve.
"Loss of talent delivers a hefty blow to a business`s bottom line," the report notes.
Interestingly, the report says many top-performing businesses across Europe and the US are already deploying effective employee engagement and enablement programmes as a business priority.
Further, employee engagement and retaining talent are cited as top priorities by chief executives and human resource personnel in 2010. Companies effectively combining employee engagement with an enabling work environment have significantly improved revenue growth, staff retention and employee performance. In addition, firms with high levels of engagement show turnover rates at 40 percent lower than those with low levels of engagement.
The survey finds that engaged employees are 10 per cent more likely to exceed performance expectations, and employees who are both highly engaged and enabled are 50 percent more likely to outperform expectations.
"Highly engaged and enabled workers undoubtedly create dramatically better business outputs, more loyal customers, and better financial performance during good times and bad.
"An enabling workplace can also actively deal with employee concerns rather than allowing them to continue unnoticed, which can subsequently result in demotivated and frustrated staff who may start to feel the grass is greener elsewhere," Hay Group insight managing director William Werhane said.