Service businesses are worrying about candidate shortages, labour turnover and how they’re going to fuel profitability and growth with such a shortfall of people. It’s clear that employee engagement drives customer satisfaction, which, in turn, impacts bottom line profits. There is also a clear correlation between managerial effectiveness and engagement levels, which goes on to impact the retention and morale of existing teams and, therefore, a company’s ability to attract great people.
By optimising people practices, leadership capability and accountability for engagement, together with clear ‘people KPIs’, the value add from your people is very likely to increase exponentially. However, there’s much confusion about how to measure true engagement. This is why we came up with the ‘Ultimate Engagement Score’. This is made up of a number of key metrics all rolled into one easy number.
Once you have the number (and to find out how just ask us), you have to know what to do with it. Many organisations still consider engagement to be a ‘HR issue’, yet the reality is that everyone in the organisation, particularly leaders and managers, must own engagement. In a transactional HR function, the emphasis is on ‘hiring and firing’, managing employee issues and queries, taking care of leave and absence administration. It’s therefore difficult to quantify the value add and the transformational effects of using people software for many of the activities involved. Yet an average HR department spends an average of 60% of its time on administrative processes, 30% on employee issues and 10% on ‘the business’. Imagine if that could be reversed…
Our view is to ‘uberise’ as many processes as possible, outsourcing legal and other transitional stuff. Then HR’s role becomes about making sure the people plan is right (simple, joined-up, deliverable, monitored) and putting in place the methodology, tools and resources so the business can deliver on it. The only way that employee engagement can successfully be achieved and sustained is by the business being committed to, and capable of, making it happen.
Best Employers in hospitality such as Valor, Firmdale Hotels, and Lexington Catering have become talent magnets and enjoy lower levels of labour turnover by digitising and enhancing existing their people processes. Sometimes you have to start doing things differently or even adding in stuff that hasn’t been happening consistently before to achieve the right result. Essential functions that positively impact employee engagement include career conversations, regular feedback, succession planning, risk management feedback, goal management. People know this should happen yet because manually it’s so unwieldy to do, it often falls off the bottom of busy people’s agendas. This needs to change; business is in danger accepting the hire, fire; start, leave state of affairs as ‘just the way things are’ with potentially disastrous consequences.